Standard Chartered Bank

Reference Number ZC18

Directors’ Report and Financial Statements

31 December 2025

Incorporated in England with limited liability by Royal Charter 1853

Principal Office: 1 Basinghall Avenue, London, EC2V 5DD, England

Contents

Strategic report

01 Who we are and what we do

02 Market environment

03 Our strategy

04 Our business model

05 Financial review

07 Our business

08 Risk review

12 Our stakeholders

Directors’ report

16 Directors and their interests

17 Corporate Governance Statement

22 Statement of Directors’ responsibilities

Risk review and Capital review

24 Risk Management Framework

25 Principal risk types

30 Credit risk

60 Traded risk

63 Liquidity and Funding risk

70 Operational and Technology risk

71 Capital review

Financial statements

72 Independent Auditors’ report

84 Financial statements

90 Notes to the financial statements

Supplementary information

201 Supplementary financial information

205 Supplementary people information

206 Important notices

About this report

The following are company designations as described

inthedocument:

Standard Chartered Bank Group (Group) – being Standard

Chartered Bank and its subsidiaries

Standard Chartered PLC Group (PLC Group) – being the ultimate

parent and its subsidiaries

Standard Chartered Bank (Company) – being the standalone

Bank legal entity

Standard Chartered PLC (PLC) – being the standalone legal

entity of the ultimate parent

Sustainability reporting – We adopt an integrated approach

tocorporatereporting, embedding non-financial information

throughoutour Annual Report.

For more information on Standard Chartered please visit

sc.com

uk.linkedin.com/company/standardchartered

facebook.com/standardchartered

Unless another currency is specified, the word ‘dollar’ or symbol ‘$’ in this

document means US dollar and the word ‘cent’ or symbol ‘c’ means one-

hundredth of one US dollar. All disclosures in the Strategic Report, Directors’

Report, Risk Review and Capital Review and Supplementary information are

unaudited unless otherwise stated.

Unless context requires, within this document, ‘China’ refers to the People’s

Republic of China and, for the purposes of this document only, excludes Hong

Kong Special Administrative Region (Hong Kong), Macau Special Administrative

Region (Macau) and Taiwan. ‘Korea’ or ‘South Korea’ refers to the Republic of

Korea. Asia includes Australia, Bangladesh, Brunei, Cambodia, India, Indonesia,

Laos, Malaysia, Myanmar, Nepal, Philippines, Singapore, Sri Lanka, Thailand,

Vietnam, China, Hong Kong, Japan, Korea, Macau and Taiwan; Africa includes

Botswana, Côte d’Ivoire, Egypt, Ghana, Kenya, Mauritius, Nigeria, South Africa,

Tanzania, Uganda, and Zambia. The Middle East includes Bahrain, Iraq, Oman,

Pakistan, Qatar, Saudi Arabia andthe United Arab Emirates. Europe includes

Belgium, Falkland Islands, France, Germany, Jersey, Luxembourg, Poland,

Sweden, Türkiye and the United Kingdom. The Americas includes Argentina,

Brazil, Colombia and the United States.

A full definition of terms used in this report is included in the glossary section

ofthe PLC Group’s Annual Report and Accounts 2025 which is available at

www.sc.com/investors

Within the tables in this report, blank spaces indicate that the number is

notdisclosed, dashes indicate that the number is zero and ‘nm’ stands for

notmeaningful.

Standard Chartered Bank is incorporated in England and Wales with limited

liability and is headquartered in London. The Group’s head office provides

guidance on governance and regulatory standards.

Directors’ Report and Financial Statements 31 December 2025

Strategic report

1 Basis point (bps) and percentage movements are in relation to 31 December 2024, with brackets representing negative movements.

2 Senior leadership is defined as Managing Directors and Band 4 roles (including Management Team).

Who we are

We’re a global bank connecting clients to

our differentiated network, offering growth

opportunities in the world’s most dynamic markets.

Our strategy, which combines cross-border capabilities and

leading wealth management expertise, helps us deliver our

purpose – to drive commerce and prosperity through our

unique diversity.

We serve three client segments

Corporate & Investment Banking – Supports large

corporations, development organisations, governments,

and financial institutions with risk management, advisory

and financing solutions.

Wealth & Retail Banking (WRB) – Serves the local and

international banking need of our clients across the wealth

continuum with a focus on the affluent segment, while

supporting small and medium-sized enterprises.

Ventures – Promotes a culture of innovation investing in

disruptive financial technology and creating alternative

financial service business models, as well as growing our

digital bank – Trust.

What makes us different

Our footprint and network – We help clients do business

across cross borders through our network of high-growth and

established markets.

Our wealth management expertise – We help

generations grow and protect their wealth, offering local

and global expertise.

Our commitment to sustainable finance – We mobilise

capital to deliver sustainable and inclusive growth for our

clients and the communities we call home.

Our emphasis on innovation – We scale fintechs and

invest in ventures, supporting digital transformation and

product development.

Where we operate

Our unique geographic footprint connects high-growth and

emerging markets in Asia, Africa and the Middle East with

more established economies in Europe and the Americas,

allowing us to channel capital to where it’s needed the most.

We serve clients across 51 locations.

Our purpose and culture

Our distinctive culture has been developed in pursuit of our

purpose – to drive commerce and prosperity through our

unique diversity.

Who we are and what we do

Read more on page 5

Operating income

$12,954m

Profit before tax

$4,724m

Key Performance Indicators (KPIs) and measures

Financial KPIs

Directors’ Report and Financial Statements 2025 | Standard Chartered 1

Market environment

Trends in 2025

• Global GDP growth was 3.4 per cent in 2025, slightly higher

than 3.3 per cent in 2024, and better than expected as

exporters front-loaded exports to the US and consumers

remained resilient amid ongoing easing by central banks.

• Asia’s growth was 5.3 per cent in 2025 as its export-

oriented economies held up much better than expected

thanks to strong front-loading of exports. Growth in India

was stronger in 2025 owing to a domestic policy stimulus

of tax cuts and interest rate reductions which more than

countered higher US tariffs.

• Sub-Saharan Africa (SSA) likely saw growth of 4.0per cent

in 2025, supported by easing global financial conditions,

sustained capital inflows and country-specific reforms.

Weaker global integration of SSA economies has provided

a buffer against risks stemming from US tariffs.

• Among the major markets, the US showed resilience, but

growth still slowed from 2.7 per cent in 2024 to 2.0 per cent

in 2025 amid government spending cuts, tariff disruptions

and prolonged government shutdown. Growth was stronger

in 2025 in the Euro area and the UK, largely owing to

front-loading of exports to the US ahead of tariffs.

Monetary easing will continue to filter through, but

external trade pressures have shown signs of weighing

ongrowth. In most major markets, there are early signs

oflabour market softening.

• Many central banks continued to loosen monetary policy

over the course of 2025 as inflation showed clearer signs

ofreturning to target levels.

Outlook for 2026

• We expect global growth to be 3.4 per cent in 2026,

unchanged from 2025. For many economies, 2026 is likely

to be a year of transition from monetary to fiscal policy,

and from export-led to increasingly domestic

(particularlyinvestment-led) growth.

• On the geopolitical front, markets will be eager to see

progress to end ongoing conflicts and will be focused on

the US mid-term elections. Risks to the outlook remain high

amid persistent trade policy uncertainty, geopolitical flash

points, and fears of financial-market corrections – all of

which point to potentially higher probabilities of

extremeoutcomes.

• We expect US to grow by 2.3 per cent in 2026, on the back

of strong business investment and spending, supported by

corporate tax cuts and the race for AI adoption. We expect

euro area growth to be more muted at 1.1per cent given trade

pressures – from US tariffs, increasing competition from

China and the uneven picture across euro-area economies.

• Asian economies are likely to see a slowdown in export

growth. However, resilient consumer spending and stronger

investment should support growth across most economies.

• The US continues to diverge from other major economies

– inflationary pressures are building in the US, while they

remain largely absent elsewhere. We expect no further

cuts from the US Federal Reserve (Fed); as this is less than

what the market is currently pricing in, it should mean that

global yield curves steepen and should also supportive for

the US dollar.

Macroeconomic factors affecting the global landscape

Actual and projected growth by market

2026 2025

Asia India 6.6% 7.5%

Indonesia 5.2% 5.0%

Singapore 3.2% 4.8%

Americas US 2.3% 2.0%

Africa Nigeria 4.0% 3.8%

South Africa 2.0% 1.2%

Kenya 5.3% 4.9%

Middle East UAE 5.0% 5.0%

Europe UK 1.2% 1.4%

Euro area 1.1% 1.4%

Strategic report

Directors’ Report and Financial Statements 2025 | Standard Chartered 2

Our strategy

• Help our clients seamlessly connect with growth

opportunities across high-growth corridors, utilising

ourunique footprint.

• Offer increasingly innovative solutions for complex

clientneeds by growing our capabilities in advisory,

riskmanagement and financing across capital

markets,securities services, trade and payments.

• Address evolving client demand and drive client

satisfaction with investments in digitisation,

productinnovation and AI capabilities.

• Enhance our ability to serve sophisticated financial

institutions in fast-growing client segments such as

Sponsors and Fintech.

• Support our clients’ transition journeys across our markets

by continuing to build market-leading sustainable

financecapabilities.

Cross-border Affluent

• Continue to differentiate through our international affluent

client value proposition, solidifying our position as a leading

wealth manager in Asia, Africa and the Middle East.

• Strengthen our competitive advantages in serving affluent

clients’ needs, with investment in our wealth and digital

platforms, client centres, people and brand.

• Deliver personalised and trusted advisory and differentiated

solutions to clients, leveraging AI and digital tools to grow

client engagement and wealth penetration.

• Build a robust pipeline of future affluent clients as we

continue to reshape our mass retail business.

• Connect clients to sustainability capabilities across the

bank by embedding sustainable investments into our

Wealth Solutions propositions.

Strategic priorities

We are a global bank

connecting corporate,

institutional and affluent

clients to a network that offers

unique access to sustainable

growth opportunities across

Asia, Africa and the Middle

East. We specialise in solving

complex cross-border challenges

for sophisticated clients.

Our strategy is designed to deliver our purpose: to drive commerce

and prosperity through our unique diversity. This is underpinned

byour brand promise, here for good.

Sustainability

Cross-border

Combining differentiated

cross-border capabilities…

Affluent

…with leading wealth

management expertise

Strategic report

Directors’ Report and Financial Statements 2025 | Standard Chartered 3

Our business model reflects our strategy of combining differentiated

cross-border banking capabilities with leading wealth management

expertise for affluent clients, supported by leadership in sustainability.

Our business model

Corporate & Investment Banking(CIB)

Supports large corporations, development organisations,

governments, and financial institutions with risk

management, advisory and financing solutions.

Global Markets

• Macro Trading

• Credit Trading

Global Banking

• Lending & Financial Solutions

• Capital Markets & Advisory

Responsible business practices

We strive to be a responsible business by operationalising

ournet zero targets, managing environmental and social

risks, and acting transparently.

Transaction Services

• Payments and Liquidity

• Trade & Working Capital

• Securities & Prime Services

Wealth Solutions

• Investments

• Bancassurance

• Wealth advice

• Portfolio management

Retail Products

• Deposits

• Mortgages

• Credit cards

• Personal loans

Wealth & Retail Banking(WRB)

Serves the local and international banking needs of our

clients across the wealth continuum with a focus on the

affluent segment, while also supporting small and

medium-sized enterprises.

Ventures

Promotes a culture of innovation across the Group, investing

in disruptive financial technology and creating alternative

financial service business models, as well as growing our

digital bank –Trust.

Bespoke sustainable finance solutions

We offer sustainable finance solutions designed to help our

clients address environmental and social challenges and

achieve sustainable growth.

Innovation in service of our markets

We advocate in service of our markets to unlock the areas

where capital is not flowing at scale or not at all and to drive

economic inclusion.

Our key products and services

Our business segments Sustainability is integral to the Group

andour client offering across all our

business segments.

Strategic report

Directors’ Report and Financial Statements 2025 | Standard Chartered 4

Summary of financial performance

2025

$million

2024

$million

Change

Net Interest income 3,715 4,400 (16)

Non NII

9,239 8,014 15

Operating income 12,954 12,414 4

Operating expenses (7,955) (7,550) (5)

Operating profit before impairment and taxation 4,999 4,864 3

Credit impairment (248) (15) nm

Goodwill & Other impairment (29) (410) 93

Profit/(Loss) from associates and joint ventures 2 8 (75)

Profit before taxation 4,724 4,447 6

Taxation (1,314) (1,465) 10

Profit for the period 3,410 2,982 14

1 Non NII is the sum of net fees and commission, net trading income and other operating income.

Operating income increased 4 per cent. Excluding three notable items in the prior year relating to gains on revaluation of FX

positions ($157million), hyperinflationary accounting adjustments ($139million) and loss on subsidiaries disposals ($217million),

operating income was up 5 per cent and was driven by growth in non net interest income (Non NII), partly offset by lower net

interest income (NII).

Net interest income (NII) decreased 16 per cent, driven by margin compression from lower benchmark rates, partly offset by

benefits from short-term hedge roll off.

Non NII increased 15 per cent driven by sustained momentum in Wealth Solutions, higher volumes in Global Banking, and

stronger client flows and episodic income in Global Markets.

Operating expenses are up 5 per cent driven by continued investment spend on business growth and transformational

initiatives alongside higher variable compensation.

Credit impairment is a net charge of $248million and is driven by higher charge-offs and delinquencies in WRB partially offset

by net recovery in CIB.

Goodwill & Other impairment is lower than prior year by $381million due to non-repeat of prior year write-off of software assets.

Taxation of $1,314million for the year represents an effective tax rate of 28 per cent against prior year effective tax rate of 33%,

and is due to reduced loss on subsidiaries disposal, favourable adjustments in respects of prior periods and lower level of

non-deductible expenses.

Segmental performance

Profit/(loss) before tax by client segment

2025

$million

2024

$million

Change

Corporate & Investment Banking 4,239 4,056 5

Wealth & Retail Banking 1,185 1,294 (8)

Ventures (45) (80) 44

Central & other items (655) (823) 20

Profit before taxation 4,724 4,447 6

1 Segment results have been re-presented in line with the PLC Group’s RNS on Re-Presentation of Financial Information issued on 2 April 2025 to reflect the

reallocation of Treasury income and certain costs across segments

Corporate & Investment Banking (CIB)

• Profit before taxation increased 5 per cent driven by higher income from Global Banking and Global Markets and lower

software impairments, partly offset by higher costs

• Operating income of $9,230 million was up 4 per cent driven by higher volumes and increased capital market activity in

Global Banking, as well as improved flow and episodic income in Global Markets

• Operating expense of $5,083 million was up 4 per cent due to higher compensation and strategic investments

• Credit impairment is a net write back of $97 million and is due to Stage 3 releases. Other impairment is lower than prior year

due to non-recurrence of prior year software impairments

Financial review

Strategic report

Directors’ Report and Financial Statements 2025 | Standard Chartered 5

Wealth & Retail Banking (WRB)

• Profit before taxation decreased 8 percent primarily driven by higher costs from increased investment spend, partly offset

byhigher income from Wealth Solutions.

• Operating income of $4,046million was down slightly compared to prior year due to margin compression in Deposits, partly

offset by higher Wealth Solutions performance

• Operating expense of $2,557million was up 5 per cent due to higher investment spend and increase in Affluent frontline

staffcost

• Credit impairment is a net charge of $299million primarily reflecting higher charge-offs and normalised flows in unsecured

portfolio. Other impairment is lower than prior year due to non-recurrence of prior year software impairments

Ventures

• Loss before taxation of $45 million decreased by $35 million driven by growth in Unsecured Lending volumes and income

inTrust Bank.

Central & Other items (C&O)

• Loss before taxation of $655 million decreased by $168 million driven by benefits from the roll-off of short-term hedges, partly

offset by non-repeat of prior year notable items (FX revaluation gains, hyperinflationary accounting adjustment and loss

from subsidiary disposals).

Balance sheet and capital

2025

$million

2024

$million

Change

Total assets 593,362 563,534 5

Total liabilities 557,724 529,418 5

Common Equity Tier 1 (%) 13.3% 13.3% 1¹

1 Change is the basis points (bps) difference between the two periods rather than the percentage change.

The Group’s balance sheet is strong, highly liquid and well diversified.

Total Assets increased 5 per cent from 31 December 2024 due to growth in financial assets held at fair value through profit or

loss (primarily in loans and advances to customers), increase in other assets from higher volumes of precious metals and higher

central bank balances.

Total Liabilities increased 5 per cent from 31 December 2024 driven by growth in customer accounts, including CIB CASA and

WRB CASA and Term Deposits, as well as deposits by banks.

Common Equity Tier 1 (CET 1) ratio remains stable at 13.3 per cent as of 31 December 2025. The Group continues to operate

through its branches and various subsidiaries, all of which remain well-capitalised in accordance with their applicable risk

appetites and applicable regulatory requirements.

Strategic report

Directors’ Report and Financial Statements 2025 | Standard Chartered 6

Standard Chartered Bank is authorised by the Prudential Regulation Authority (PRA) and regulated by the PRA and by

theFinancial Conduct Authority (FCA). The PRA is the consolidated supervisor in respect of the Group (of which PLC is the

ultimateparent).

Standard Chartered Bank is a material subsidiary of the PLC Group for the purposes of the Bank of England-led single point of

entry preferred resolution strategy for the PLC Group. The Group is a core part of, and critical provider of essential services to the

PLC Group and is fundamental to the delivery of the PLC Group’s purpose, franchise, and strategy.

Clients • The Group remains the largest Corporate & Investment Banking (CIB) origination hub supporting a significant part

of CIB revenues and is key to the global network proposition

• The Group is the relationship hub for the majority of key CIB clients, particularly Organisation for Economic

Co-operation and Development (OECD) clients

• The Group holds the majority of the PLC Group’s corporate and financial institutions deposits, a significant part of

the PLC Group’s USD funding base

Capabilities • The Group holds key licences and hosts infrastructure vital for the global franchise such as global USD & EUR clearing

• The Group is the main Global Markets booking centre supporting the majority of Global Market revenues

• The Group remains a main access point to high quality USD funding

Critical

infrastructure

• The Group is the key liquidity management centre: holding the majority of the PLC Group’s high-quality liquid

assets for regulatory purposes

• The Group provides functional support on a global basis

• The Group operates global business services hubs for the benefit of the PLC Group including shared service centres

and centres of excellence

Investors • The Group’s UK domicile underpins a unique investor proposition: emerging markets access from a UK

regulatedplatform

• A significant number of PLC Group’s equity and debt investors are based in the Group’s footprint

Recovery and

resolution

• Standard Chartered Bank is the largest material subsidiary for the purposes of minimum requirement for own funds

and eligible liabilities (MREL) and total loss-absorbing capital (TLAC)

• The Group is critical to the delivery of capital and liquidity generating management actions in PLC Group’s

recoveryplanning

• The Group houses various critical services and critical functions in resolution and resolution management

The Group’s Credit Ratings

The Group remains a highly rated institution (in both absolute and relative terms) with the following long and short-term issuer

ratings all with a stable outlook. Moody’s revised the rating outlook on Standard Chartered Bank to stable from positive in

November 2025, which was primarily driven by Moody’s methodology change.

S&P Moody’s Fitch

Long Term A+ A1 A+

Short Term A-1 P-1 F1

Outlook Stable Stable Stable

Our business

Strategic report

Directors’ Report and Financial Statements 2025 | Standard Chartered 7

Strategic report

An update on our risk management approach

Our Risk Management Framework (RMF) sets out the principles and minimum requirements for risk management and

governance across the Group. The RMF enables the Group to manage enterprise-wide risks, with the objective of maximising

risk-adjusted returns while remaining within our Risk Appetite (RA).

The PLC Group 2025 Annual Report outlines our risk management approach through the Enterprise Risk Management Framework

(pages 220 to 232). The PLC Group 2025 Annual Report also defines our Risk Culture, Roles and Responsibilities, the Risk Function,

approach to Risk Identification and Assessment, Risk Appetite and Stress Testing, and Principal Risks that are also applicable

tothe Group

Principal Risk Types and Risk Appetite

Principal Risk Types (PRTs) are those risks that are inherent in our strategy and business model and have been formally defined

in the Group’s RMF.

The table below provides an overview of the Group’s current PRTs and their corresponding RA statements.

Principal Risk Types Definition Risk Appetite Statement

Credit Risk

Potential for loss due to failure of a counterparty

to meet its agreed obligations to pay the Group.

The Group manages its credit exposures following the

principle of diversification across products, geographies,

client segments and industry sectors.

Traded Risk

Potential for market or counterparty credit risk

losses resulting from activities undertaken by the

Group in fair valued financial market instruments.

The Group should control its financial markets activities to

ensure that market and counterparty credit risk losses do

not cause material damage to the Group’s franchise.

Treasury Risk

Potential for insufficient capital, liquidity, or

funding to support our operations, the risk of

reductions in earnings or value from movements

ininterest rates impacting banking book items

and the potential for losses from a shortfall in

theGroup’s pension plans.

Individual regulated entities within the Group should

maintainsufficient capital, liquidity, and funding to support

itsoperations, and an interest rate profile ensuring that the

reductions in earnings or value from movements in interest

rates impacting banking book items do not cause material

damage to the Group’s franchise. In addition, the Group

should ensure that its pension plans are adequately funded.

Operational

and

Technology

Risk

Potential for loss resulting from inadequate or

failed internal processes, technology events,

human error, or from the impact of external

events(including legal risks).

The Group aims to mitigate and control Operational and

Technology risks, to seek to ensure that events, including

any related to conduct of business matters, do not

causethe Group material harm as a result of business

disruption, financial loss or reputational damage.

Information

and Cyber

Security Risk

Risk to the Group’s assets, operations, and

individuals due to the potential for unauthorised

access, use, disclosure, disruption, modification,

ordestruction of information assets and/or

information systems.

The Group aims to mitigate and control ICS risks to

ensurethat incidents do not cause the Group material

harm, business disruption, financial loss or reputational

damage, recognising that whilst incidents are unwanted,

they cannot be entirely avoided.

Financial

CrimeRisk

Potential for legal or regulatory penalties, material

financial loss or reputational damage resulting

from the failure to comply with applicable laws

and regulations relating to international

sanctions, anti-money laundering and

anti-bribery and corruption, and fraud.

The Group has no appetite for breaches of laws and

regulations related to Financial Crime, recognising

thatwhilst incidents are unwanted, they cannot be

entirelyavoided.

Compliance

Risk

Potential for penalties or loss to the Group or for an

adverse impact to our clients, stakeholders or to the

integrity of the markets we operate in through a

failure on our part to comply with laws, or regulations.

The Group has no appetite for breaches of laws and

regulations related to regulatory non-compliance,

recognising that whilst incidents are unwanted,

theycannot be entirely avoided.

Environmental,

Social and

Governance

and

Reputational

(ESGR) Risk

Potential or actual adverse impact on the

environment and/or society, the Group’s financial

performance, operations, or the Group’s name,

brand or standing, arising from environmental,

social or governance factors, or as a result of the

Group’s actual or perceived actions or inactions.

The Group aims to measure and manage financial and

non-financial risks arising from climate change, reduce

emissions in line with our net zero strategy and protect the

Group from material reputational damage by upholding

responsible conduct and striving to do no significant

environmental and social harm.

Model Risk

Potential loss that may occur because of decisions

orthe risk of mis-estimation that could be principally

based on the output of models, due to errors in the

development, implementation, or use of such models.

The Group has no appetite for material adverse

implications arising from misuse of models or errors in

thedevelopment or implementation of models, whilst

accepting some model uncertainty.

1 Fraud forms part of the Financial Crime RA Statement but in line with market practice does not apply a zero-tolerance approach.

Risk review

Directors’ Report and Financial Statements 2025 | Standard Chartered 8

Topical and Emerging Risks (TERs)

Topical Risks refer to themes that may have emerged but are still evolving rapidly and unpredictably. Emerging Risks refer to

unpredictable and uncontrollable outcomes from certain events which may have the potential to adversely impact our business.

As part of our ongoing risk identification process, we have updated the PLC Group’s TERs from those disclosed in the 2025

Half-Year Report. These remain relevant for the Group and are summarised below, including the actions we are taking to

mitigate them based on our current knowledge and assumptions. The TER list is not exhaustive and there may be additional

risks which could have an adverse effect on the Group. Our mitigation approach for these risks may not eliminate them but

demonstrates the Group’s awareness and attempt to mitigate or manage their impact.

The full disclosure on TERs, including steps we have taken to mitigate them, can be found in pages 45 to 49 of the PLC Group

2025Annual Report

TERs Description How these risks are mitigated

Macroeconomic

and geopolitical

considerations

• Expanding array of global tensions

andtransition of the international order:

Geopolitical fragmentation is driving

more fluid alliances, with reduced

co-ordination on key global issues.

Resurging nationalism, aggressive use

of tariffs, hybrid warfare and spillovers

from open conflict complicate the

global landscape.

• Macroeconomic uncertainty including

potential price bubbles: Tariffs and

trade tensions, as well as uncertain

interest rate trajectory create a

challenging business environment.

Correction of a potential Artificial

Intelligence (AI) driven bubble would

have implications to the broader

economy, with particular scrutiny on the

private credit sector. The private credit

sector is also considered with concerns

over default rates and increasing

connectedness with traditional

banksand the insurance industry.

• Supply chain issues and key material

shortages: Supply routes are vulnerable

to physical disruptions from conflict or

piracy. Growing need for minerals and

rare earths can be leveraged to increase

influence for refiners.

• We conduct portfolio reviews and stress tests at Group,

country, business and asset class level, with regular

reviews of vulnerable sectors.

• We have a structural hedging programme to mitigate

the impact of volatile interest rates.

• We run daily market risk stress scenarios to assess

theimpact of unlikely but plausible market shocks.

• We run a suite of management scenarios with

differingseverities to assess their impact on key risk

appetite metrics.

• We have a dedicated country risk team that closely

monitors sovereign risk.

• We maintain a diversified portfolio across products

andgeographies, with specific risk appetite metrics

tomonitor concentrations.

• Increased scrutiny is applied when onboarding clients

insensitive industries and ensuring compliance

withsanctions.

• We maintain underwriting principles for specialised

product and industry segments, detailing transaction

level origination standards and sub-segment caps

supported by regular portfolio reviews.

• We regularly review our supply chains and third-party

arrangements to improve operational resilience.

• We actively review and test our crisis management

andbusiness continuity plans.

ESG

considerations

• Evolving ESG Dynamics: Economic

pressures and geopolitical tensions

suchas increased tariffs may push

companies to consider deprioritising

their climate transition. In addition, the

cost of managing the climate impacts

from more frequent extreme weather

events is increasing, with the burden

disproportionately borne by developing

markets, which in turn lowers their ability

to invest in transition infrastructure.

• Climate Risk considerations are embedded across

relevant Principal Risk Types. We perform client-level

Climate Risk assessments and set adequate mitigants

or controls where relevant.

• PLC Group has delivered on its commitment to be net

zero in its own operations (Scope 1 and 2 emissions)

bythe end of 2025 and intends to maintain this

goingforward.

• We embed our values through our Position Statements

and a list of prohibited activities. We also maintain ESG

and Reputational Risk standards to identify, assess and

manage risks when providing services to clients.

Strategic report

Directors’ Report and Financial Statements 2025 | Standard Chartered 9

TERs Description How these risks are mitigated

ESG

considerations

• Management of greenwashing risks is integrated into

PLC Group’s ESG and Reputational (ESGR) Risk Type

Framework, ESGR policies, Sustainable Finance

frameworks, and relevant product and

marketingstandards.

• Detailed portfolio reviews and stress tests are conducted

to assess the resilience of our clients and operations to

climate-related physical and transition risks.

• Suppliers that are identified as presenting higher risks

ofmodern slavery are subject to risk assessments.

New business

structures,

channels and

competition

• Competitive disruption: In addition to

established forms of competition such

as FinTechs, traditional finance faces

disintermediation from digital assets,

particularly stablecoins, as well as the

growth of private credit. These risks

maybe particularly prevalent in

emerging markets.

• Rapid adoption of AI: AI’s rapid evolution

requires large investment to keep pace

with the latest developments, with

adoption needing to balance

technological advancement with

compliance, controls and model risk.

Cost pressure and lack of key skills

mayhamper a swift transition. Risks

offraudand smarter malware are

alsoheightened.

• Cyber, data and operational resilience:

There is an increasing focus on

operational resilience from regulators

globally. It is key to ensure that the

Group’s critical infrastructure is fully

mapped, safeguarded and built with

resilience in its design. Reliance on third

parties introduces additional risk by

expanding the Group’s digital footprint.

Geopolitical tensions may spillover

tothe cyber domain, with other

considerations such as data sovereignty

complicating a global business model.

• We continuously monitor and evaluate emerging

technology trends, business models and opportunities.

• We have enhanced governance for evolving areas,

suchas the PLC Group’s Digital Asset Risk Committee.

• We have instituted the AI Safety Council which

evaluates and assesses AI solutions prior to use.

• We apply a tiered approach to evaluate AI systems,

proportionate to the associated risks.

• We are partnering with central banks and other

stakeholders on digital currency and stablecoin

projectsaround the world.

• We manage data and information security risks

through PLC Group’s Compliance and Information and

Cyber Security (ICS) Risk Type Frameworks. PLC Group

also maintains a global Group Data Conduct Policy.

• The Group continues to invest in its resilience

capabilities, with a focus on regulatory compliance,

aswell as ensuring the continued operational stability

of the Bank.

• The Group is focused on uplifting its global data

centrefootprint, enhancing technology to reduce

obsolescence, assuring its use of Third Parties, and

building response and recovery capabilities.

• We prioritise security and robust testing in the design

ofour products and services, including implementing

encryption, phishing resistance and stringent access

controls to safeguard user data.

• The PLC Group has implemented a ‘defence-in-depth’

ICS control environment strategy to protect, detect and

respond to known and emerging ICS threats.

• We upskill colleagues on the human aspect of ICS risk,

underpinned by our Code of Conduct and Ethics.

• We also assign mandatory ICS learning, phishing

exercises and role-specific training.

• The PLC Group’s Incident Response processes include

24/7 security event monitoring, triage and analysis.

• New risks are identified through the New Initiatives

RiskAssessment and Third-Party Risk Management

Policy and Standards.

Strategic report

Directors’ Report and Financial Statements 2025 | Standard Chartered 10

TERs Description How these risks are mitigated

New business

structures,

channels and

competition

• We identify security threats to third parties and deliver

threat intelligence and briefings to strategic clients to

enhance our services and relationships.

• We have initiated a post quantum cryptography

programme to manage the bank-wide transition

topost-quantum encryption standards.

• We test the effectiveness of our crisis management

andcontinuity strategies through a series of severe

butplausible disruption scenarios.

• We have implemented pan-bank stress testing for our

Important Business Services to ensure vulnerabilities are

effectively identified and remediated.

• We have improved operational resilience monitoring

capabilities to identify potential vulnerabilities quickly

and put in place necessary remediations and controls.

Regulatory

considerations

• Regulatory evolution and fragmentation:

Regulation continues to diverge, with

significant new regimes coming into

force at different paces across our

footprint. The Group’s presence in a

variety of jurisdictions exposes us to

increasing regulatory fragmentation,

with ongoing uncertainty on topics

suchas sanctions, data, AI, and climate.

The rise in consultations relating

todigital assets, may introduce

potentialinconsistent standards

acrossjurisdictions.

• We actively monitor regulatory developments

andrespond to consultations either bilaterally

withregulators and external legal advisors or

throughwell-established industry bodies.

• We track evolving country-specific requirements

andactively collaborate with regulators to support

important initiatives.

• We are leveraging new technology to identify and

mapnew regulations.

• We remain focused on protecting consumers by

proactively identifying and mitigating risks such

asscams, phishing and impersonation.

Demographic

considerations

• Skills and the competition for talent: An

inability to attract or retain the talent to

fill key future skills gaps, both digital and

interpersonal, will become a competitive

disadvantage. Flexible working may

limit the human interaction required

todevelop key soft skills.

• Demographic and migration trends:

This reflects the challenges of

managing ageing and shrinking

populations in developed markets,

whilemaximising the potential of

booming younger workforces in

developing markets.

• Our People Strategy builds a future-ready,

multi-generational workforce through structured

re-skilling and mobility programs; this enables prompt

redeployment as roles evolve, and also mitigates the

demographic risks of shrinking and ageing populations.

• We have an internal Talent Marketplace which enables

colleagues to sign up for projects to access diverse

experiences and career opportunities.

• We place an emphasis on skills and identifying talent

toaccelerate, and how to deploy them in areas with

thehighest impact for our clients and the business.

• We emphasise frequent two-way feedback through

performance and development conversations to embed

a culture of continuous learning and development.

• We provide support and resources to help balance

productivity, collaboration and wellbeing, with more

than 60 per cent of PLC Group’s staff working flexibly.

• PLC Group’s Human Rights Position Statement outlines

our commitment to maintain a safe, supportive, diverse,

and inclusive workplace, as well as supporting social

and economic development in the communities in

which we operate.

Strategic report

Directors’ Report and Financial Statements 2025 | Standard Chartered 11

Listening and responding to stakeholder priorities and concerns is critical to achieving our purpose and delivering on our brand

promise, here for good.

We communicate progress regularly with external stakeholders through channels such as sc.com, established social media

platforms and this report.

Section 172 Statement

This section forms our Section 172 disclosure, describing how the directors considered the matters set out in section 172(1)(a)

to(f) of the Companies Act 2006 when performing their duty to promote the success of the Company. It also forms the directors’

statement required under section 414CZA of the Act.

Read more about how the Court

had regard to each section 172 principle during the year

Section 172 Principles Disclosure

The likely consequences of any decisions in the long term Principal Court decision – page 12

Our approach to Sustainability – page 14

The interests of the Company’s employees. Stakeholder engagement – page 12

Directors report – page 16

The need to foster business relationships with suppliers, customers and others Stakeholder engagement – page 12

The impact of the Company’s operations on the community

andtheenvironment

Directors report – page 20

Our approach to Sustainability – page 14

The desirability of the Company maintaining a reputation for high standards

ofbusiness conduct

Integrity, conduct and ethics – page 19

The need to act fairly as between members of the company Stakeholder engagement – page 12

1 The Court is the decision-making body of Standard Chartered Bank Group. It is collectively responsible for leading the Group within a framework of prudent and

effective controls, the long-term success of the Group and the delivery of sustainable value to all stakeholders. The membership of the Court is comprised of all

buttwo independent non-executive directors from the PLC Board, executive directors from the PLC Board and directors who are appointed solely to the Court.

Detailed information about how the Court engages directly with stakeholders and shareholders can be found in the Director’s

report on pages 16 to 21

Our Stakeholders

An example of the Court’s Principal decision is included in this

section. This section also forms our key non-financial disclosures

in relation to sections 414CA and 414CB of the Companies

Act. Our non-financial information statement can be found

at the end of this section.

Principal Court decisions – market exits

The Court approved the divestment of three Wealth and

Retail Banking (WRB) businesses in Uganda, Zambia and

SriLanka, with the PLC Group concentrating its resources in

these markets on serving the cross-border needs of global

corporate and financial institution clients through its CIB

business. In determining the preferred acquiror for each

WRBbusiness, the Court considered the impact of each

transaction on key stakeholders including our employees,

clients and the broader market environment. This included

determining that acquirors were able to provide continuous

employment for all in-scope employees and a seamless

product offering for all clients. The Court also considered

theregulatory and licensing status of each acquiror and

theireconomic and operational capacity to integrate the

WRB businesses into their own group in a timely manner.

Additionally, the Court approved expanding the divestment

of the WRB business in Botswana to include the Corporate

and Investment Banking business in Botswana, through

thesale of Standard Chartered Bank (Botswana) Limited.

Inmaking this decision, the Court considered the impact on

key stakeholders including our employees, clients, regulators,

and the broader market environment. It was determined that

the combined scale of the full Botswana franchise would

provide prospective acquirors with greater potential for

efficient funding, operational leverage and client coverage.

This approval remains subject to confirmation of the

preferred acquiror and transaction terms.

Stakeholder engagement

Clients

Why we engage

We engage with our clients to understand how they live

andwork across our markets so we can design services and

solutions that help them navigate an increasingly complex

financial environment.

We engage with our clients regularly so we can respond to

their evolving priorities, strengthen long-term relationships

and continue to enhance the value we create for them.

Theseinteractions shape how we innovate, how we tailor

oursolutions and how we ensure our products and services

meet the specific needs of clients across our global footprint.

Their interests

• Differentiated product and service offering

• Digital products and strong user experience

• Sustainable finance

• Access to international markets

Strategic report

Directors’ Report and Financial Statements 2025 | Standard Chartered 12

How we engage

In 2025, our WRB business deepened client engagement

byfocusing on more personalised, insight-led interactions.

We enhanced day-to-day engagement by using tools that

offer timely, actionable market intelligence, including our

AI-powered FX Insights, giving clients real-time information

ina simple, intuitive format. This has improved the quality

ofconversations between clients and relationship managers

and enabled more informed decision-making. We launched

our new marketing campaign, Now is your time for Wealth,

aimed at the affluent segment. This signals our commitment

to executing a more data-driven and personalised approach

for a more holistic client engagement, reinforcing our position

as an international wealth manager.

In CIB, our engagement in 2025 centred on providing

advisory-led, relationship-driven support to clients navigating

a period of economic uncertainty, supply-chain realignment

and evolving regulatory requirements. Rather than focusing

on isolated transactions, we developed deeper, continuous

dialogue with corporate and institutional clients to help them

manage risks, identify growth opportunities and adapt to

shifting market dynamics. Our CIB business continued to

deliver sophisticated, cross-border solutions for clients.

Anexample is our partnership with the Government of the

Bahamas, The Nature Conservancy and the Inter-American

Development Bank to structure an innovative debt

conversion initiative that reduced sovereign debt servicing

costs while supporting climate and nature outcomes.

For more details on how we engage with clients, refer to

further information contained on page 38 of the PLC

Group’s 2025 Annual Report and Accounts

Employees

Why we engage

We know that our employees are key to driving our

performance and productivity and that the diversity of our

people, cultures and network sets us apart. Ensuring we have

optimal talent and cultural experience to enable sustained

high-performance by colleagues is vital in delivering our

strategy. By engaging employees and fostering a positive

experience for them, we can better serve our clients and

deliver our purpose. Our inclusive and high-performing

cultureenables us to unlock innovation, make better

decisions, deliver our strategy, live our valued behaviours

andembody our brand promise, here for good.

Their interests

• Day-to-day experience

• Health and wellbeing

• Reskilling and upskilling initiatives

• Career progression

• Reward and remuneration

• Positive work/life balance

How we engage

Frequent feedback from employee surveys help us identify

and close gaps between colleagues’ expectations and their

experience. Colleague sentiment is captured through an

annual survey as well as regularly through a weekly survey

and at key moments, such as when employees join us, leave,

or return to work after parental leave. In addition to

leveraging inputs from these surveys, there are regular

colleague communications through varied channels

includingregular People Leader Calls, Townhalls and

aGlobal, Functional and Market level the Board and

GroupManagement Team also engage with and listen

totheviewsof colleagues through interactive sessions.

Read more on the Court’s engagement with the workforce

on page 18

Investors

Why we engage

We recognise the importance of maintaining open,

transparent and constructive engagement with investors to

support sustainable long-term value creation and maintain

market confidence.

Their interests

• Strong and sustainable financial performance

• Execution of the Group’s long-term strategy

• Robust governance practices

• Progress on ESG matters, including advancing our

net-zero agenda

How we engage

Our PLC Group engages with investors through results

presentations, one-on-one and group meetings, analyst

briefings, conferences, roadshows, investor days, regulatory

announcements and the PLC Group’s website.

For more details on how we engage with investors, refer

tofurther information contained on page 39 of the PLC

Group’s 2025 Annual Report and Accounts

Society

Why we engage

We partner with global and local NGOs to help the Group

economically empower under-served young people,

especially women and those with disabilities.

Their interests

• Access to decent jobs

• Financial access for microbusinesses

• Gender equality

• Disability inclusion

• Skills and businesses that address environmental and

social challenges

• Provision of mentoring and training support

How we engage

With the Standard Chartered Foundation, we advanced

strategic partnerships in 2025 with NGOs in support of

ourgoal to empower underserved young people. New

employability programmes to help young people secure

decent jobs were implemented. We also continued to

engage our partners to adapt programmes to continue

supporting as many young people as possible.

For more details on how we engage with the society, refer

tofurther information contained on page 40-41 of the PLC

Group’s 2025 Annual Report and Accounts

Strategic report

Directors’ Report and Financial Statements 2025 | Standard Chartered 13

Suppliers

Why we engage

We are committed to fostering an inclusive and sustainable

supply chain that reflects the diversity of the communities

weserve. By engaging with diverse suppliers – small and

medium-sized businesses, businesses owned by women,

ethnic minorities, persons with disabilities, and social

enterprises we help create equitable economic

opportunitiesand drive innovation across our value chain.

Their interests

• Open and transparent tendering process

• Simple and consistent onboarding requirements

• Accurate and on-time payments

• Willingness to adopt supplier-driven innovation

• Guidance on implementation of sustainability matters

How we engage

We aim to identify and work with a more diverse range

ofsuppliers. We focus on growing these relationships and

increasing spend with existing and new diverse suppliers,

while committing to supporting suppliers through coaching,

mentoring and outreach programs.

For more details on how we engage with suppliers, refer

tofurther information contained on page 41 of the PLC

Group’s 2025 Annual Report and Accounts

Regulators and Governments

Why we engage

We engage with public authorities to play our part in

supporting the effective functioning of the financial

systemand the broader economy.

Their interests

• Strong capital base and liquidity position

• Robust standards for financial conduct and financial crime

• Competitive economies and markets

• Digital innovation and use of AI in financial services

• Operational resilience

• Sustainable finance and net zero transition

• Market integrity and customer protection

• International and digital trade

• Financial stability

How we engage

We engage with government, regulators and policy makers

at the global, regional and national level as well as trade

associations to share insights and support the development

of best practices and adoption of consistent approaches

across our markets.

For more details on how we engage with regulators

andgovernments, refer to further information contained

onpage 41 of the PLC Group’s 2025 Annual Report

andAccounts

Our approach to Sustainability

Sustainability is a strategic focus area for the Group, as we

strive to promote inclusive growth and prosperity across the

markets where we operate.

The Group leverages the PLC Group’s sustainability approach.

The approach is articulated through the PLC Group’s

long-term sustainability goals –Sustainability Aspirations –

and short-term sustainability targets – the Sustainability

Strategic Pillars. The Aspirations and Pillars set out how

weintend to deliver across our sustainability agenda.

Sustainability Aspirations: our long-term goals

The PLC Group Sustainability Aspirations (indicated below)

are consolidated into four overarching long-term goals, each

supported by key performance indicators. Together, these

reflect our commitment to fostering sustainable social and

economic development in our markets.

• Aspiration 1: Mobilise $300 billion of sustainable Finance

• Aspiration 2: Operationalise our interim 2030 Financed

emissions targets to meet our 2050 net zero ambition

• Aspiration 3: Enhance and deepen the

sustainabilityecosystem

• Aspiration 4: Drive social impact with our clients and

communities

Sustainability Strategic Pillars: our short-term targets

and immediate priorities

The four Sustainability Strategic Pillars represent our near-term

strategic focus designed to drive momentum and accelerate

progress toward the longer-term Sustainability Aspirations.

• Pillar 1: Scale sustainable Finance income

• Pillar 2: Further embed sustainability across the

organisation

• Pillar 3: Deliver on the annual milestones set forth in our net

zero roadmap

• Pillar 4: Leverage our Innovation Hubs

Our non-financial and sustainability reporting requirements

are achieved by reference to PLC Group activities where

relevant and to the PLC Group report.

More information about the Group’s approach to

sustainability can be found on pages 75-82 of the

PLCGroup’s 2025 Annual Report and Accounts

Strategic report

Directors’ Report and Financial Statements 2025 | Standard Chartered 14

This table sets out where shareholders and stakeholders of the Group can find key non-financial and sustainability matters

inthis report. As the Company is a subsidiary undertaking of PLC and included within PLC Group, compliance with the

non-financial and sustainability reporting requirements contained in sections 414 CA and 414 CB of the Companies Act 2006

isachieved by reference to PLC Group activities where relevant and to the PLC Group report available at sc.com

via sc.com/sustainabilitylibrary

Reporting requirement

Where to read more in this report about policies, impact

(including risks, policy embedding,

due diligence and outcomes)

Business model Page 4

Risk Review (principal risks) Pages 25 to 70

Environment

• Sustainable & Responsible Business

• Directors Report

Page 14

Pages 16 to 22

Employees Page 13

Human rights Page 18

Social matters Page 13

Anti-corruption and anti-bribery Page 8

Authority

The strategic report up to page 15 has been issued by order of the Court.

Bill Winters

Director

24 February 2026

Company Reference Number: ZC18

Non-financial and sustainability

information statement

Strategic report

Directors’ Report and Financial Statements 2025 | Standard Chartered 15

The directors present their report and the audited financial

statements of Standard Chartered Bank and its subsidiaries

(the ‘Group’) and Standard Chartered Bank (the ‘Company’)

for the year ended 31 December 2025. The Company has

chosen in accordance with Schedule 7 of the Large and

Medium-sized Companies and Groups (Accounts and

Reports) Regulations 2008 (the Regulations), to include

certain matters in its Strategic report (see pages 1 -15) that

would otherwise be disclosed in this Directors’ report as

required by paragraphs 2,6,10,11,12 of the Regulations.

Activities

The activities of the Group are banking and providing

otherfinancial services. The Group comprises a network of

branches and outlets in 51 markets. The Financial Review on

pages 5 to 6 contains a review of the business during 2025.

Key stakeholders

The long-term success of the Group is dependent on its

relationships with its key stakeholders. On pages 12 to 14

weoutline the ways in which we have engaged with key

stakeholders, the material issues that they have raised with

us, and how these issues have been taken into account in

theCourt’s decision-making processes.

Results and dividends

The results for the year are given in the income statement

onpage 84.

Dividends of $2,276 million were paid during the year to

ordinary shareholders (2024: $2,395 million).

Share capital

Details of the Company’s share capital including the

particulars of any share buy-backs are given in Note 27 to

theaccounts.

Loan capital

Details of the loan capital are given in Note 26 to the accounts.

Property, plant and equipment

Details of the property, plant and equipment of the Company

are given in Note 17 to the accounts.

Financial instruments

Details of financial instruments are given in Note 12 to

theaccounts.

Details of exposure to credit, traded, liquidity and funding

riskcan be found in the Risk Profile section of the accounts.

Post balance sheet events

Details of post balance sheet events are given in Note 38 to

the accounts.

Research and development

During the year, the Group invested $1.82 billion

(2024:$1.86 billion) in research and development, of

which$797 million (2024: $801 million) was recognised as an

expense. The research and development investment primarily

related to the planning, analysis, design, development,

testing, integration, deployment and initial support of

technology systems.

Future developments in the business of

theGroup

An indication of likely future developments in the business

ofthe Group is provided in the Strategic report.

Directors and their interests

Mr W Winters, CBE

Mr D De Giorgi (Resigned 10 February 2026)

Mr S Apte

Ms J Hunt

Ms D Jurgens

Mr L Leong

Ms A McFadyen

Ms M Ramos

Ms S Ricke (Resigned 31 December 2025)

Mr P Rivett

Dr J Viñals (Resigned 8 May 2025)

Dr L Yueh, CBE

Mr S Apte, MS J Hunt, Ms D Jurgens, Mr L Leong, Mr P Rivett,

and Dr L Yueh, CBE are all independent non-executive directors.

Dr J Viñals, Ms S Ricke and Mr D De Giorgi resigned as

directors of the Company with effect from 8 May 2025,

31 December 2025 and 10 February 2026 respectively.

None of the directors have a beneficial or non-beneficial

interest in the shares of the Company or in any of its

subsidiary undertakings.

Details of directors’ pay and benefits are disclosed in Note 37

to the accounts.

All of the directors as at 31 December 2025 (except Ms

McFadyen and Ms S Ricke) are directors of the Company’s

ultimate holding company, Standard Chartered PLC.

Directors’ report

Directors’ Report and Financial Statements 2025 | Standard Chartered 16

Directors’ report

Director training

Director induction

Upon joining the Court and for any changes in roles and

responsibilities, our directors undertake a comprehensive

tailored induction programme based on their previous

experience and knowledge which is led by the Corporate

Secretariat function.

In addition to site visits across some of the PLC Group’s key

markets and meetings with the Management Team and

Court members, the induction programme includes an

overview of the following areas: the regulatory environment;

corporate governance including directors’ duties; Court and

committee governance; strategy; business areas including,

CIB, WRB and SC Ventures; the regions; legal; talent, corporate

affairs, brand and marketing; audit; transformation,

technology and operations; corporate activity; conduct,

financial crime and compliance; financeand taxation;

capitaland liquidity; internal audit; sustainability; and risk.

Deep dives are also arranged for topics relevant to the

director’s committee membership.

Development plan for the new Group Chair

A tailored development plan was devised for Maria Ramos

asshe transitioned into the role of Group Chair during 2025.

The development plan complemented her deep knowledge

of the PLC Group and her strong banking experience,

havingpreviously held the roles on the PLC Board of Senior

Independent Director and Board Risk Committee Chair, as

well as previously being the chair of a listed mining company.

While Maria already had extensive knowledge of the PLC

Group’s operations, regularly travelled to our key markets

across Asia, Africa and the Middle East and was well versed

with the significant issues and key risks facing the PLC Group,

it was important to take further steps to deepen her

knowledge given the new role. Accordingly, the development

plan placed emphasis on ensuring she met with management

across the PLC Group, a wide range of stakeholders, investors,

regulators, and employees, with the aim of raising her profile

with key stakeholders across the PLC Group as well as

increasing her understanding of the PLC Group’s Asia footprint.

The Group Corporate Secretariat provides support to Maria

indischarging her responsibilities and has worked with her

toensure she received a comprehensive handover and

development plan. Prior to her appointment, Maria received

significant insight and preparation from the outgoing Group

Chairman, José Viñals, through the transition, including a

period of shadowing him through discussions and meetings.

Ongoing training

Ongoing development plans ensure that our Court directors

lead with confidence and integrity and promote the Group’s

culture, purpose and valued behaviours. Mandatory learning

and training are also important elements of directors’ fitness

and propriety assessments as required under the UK Senior

Managers and Certification Regime. During the year, all

directors participated in an education programme which

included mandatory learning, briefings, presentations

fromguest speakers and papers on a wide range of topics

including expected credit loss, information and cyber security,

Audit and Corporate Governance socialisation, software

security vulnerability management, managing quantum

computing ICS risks and directors’ duties, to ensure that they

are well informed and that the Court remains highly effective.

Going concern

Having made appropriate enquiries, the Court is satisfied

that the Company and the Group as a whole have adequate

resources to continue in operation and meet its liabilities

asthey fall due for a period of at least 12 months from

24 February 2026 and therefore continues to adopt the

goingconcern basis in preparing the financial statements.

Political donations

The Group has a policy in place which prohibits donations

being made that would: (i) improperly influence legislation or

regulation, (ii) promote political views or ideologies, (iii) fund

political causes. In alignment to this, no political donations

were made in the year ended 31 December 2025.

Qualifying Third Party Indemnities

The Company has granted indemnities to all of its directors

on terms consistent with the applicable statutory provisions.

Qualifying third-party indemnity provisions for the purposes

of section 234 of the Companies Act 2006 were accordingly in

force during the course of the financial year ended 31 December

2025 and remain in force at the date of this report.

Qualifying Pension Scheme Indemnities

Qualifying pension scheme indemnity provisions (as defined

by section 235 of the Companies Act 2006) were in force

during the course of the financial year ended 31 December

2025 for the benefit of the directors of the UK’s pension

fundcorporate trustee (Standard Chartered Trustees (UK)

Limited) and remain in force at the date of this report.

Areas of operation

The Company operates through branches and subsidiaries

in51 markets across Asia, the Middle East, Africa, Europe and

the Americas.

Related party transactions

Details of transactions with directors and officers and other

related parties are set out in Note 35 to the financial statements.

Corporate Governance Statement

The Group operates under the subsidiary governance model.

As the Group continues to cover the vast majority of PLC

Group’s total footprint, the governance arrangements of

theCompany and PLC similarly reflect this overlap and is

represented by a predominately mirrored board structure

between PLC and the Company.

As a wholly-owned subsidiary of a listed PLC and its

governance structure as a company established by Royal

Charter, the Company complies with expectations set for

listed companies in accordance with the UK Corporate

Governance Code (2024) (the “Code”) where applicable

withrespect to board leadership, responsibilities, composition

(including succession and evaluation), audit, risk and internal

control, and remuneration to ensure that the Group is well

Directors’ Report and Financial Statements 2025 | Standard Chartered 17

managed, with appropriate oversight and control. Certain

matters, such as remuneration, values, and external audit,

areset at PLC Group level and considered or approved, if

appropriate, by the Court. It is considered more appropriate

for the purposes of Group wide consistency that principles

areset at PLC Board level and then disseminated through

theGroup to be approved by subsidiary boards.

The Court is supported by four primary committees: Audit

Committee; Risk Committee; Nomination Committee; and

USRisk Committee. Each of the primary committees and the

Court have implemented clear lines of responsibility and

policies to support the Court in its effective decision making.

The Court also has a Standing Committee with a remit to

approve matters, on behalf of the Court, where a formal

resolution is required for legal and regulatory purposes.

TheCourt, and its Nomination, Audit and Risk Committees

have similar membership as the Board of PLC Group and

itsNomination, Audit and Risk Committees, with the

appropriate balance, skills, background and experience

tomake a valued contribution. The Court Nomination

Committee is responsible for the oversight and review of

Court succession and overall Court effectiveness. The Court

Audit Committee is responsible for the oversight and review

of financial, audit, internal control and non-financial crime

issues. The Court Risk Committee is responsible for the

oversight and review of principal risks. The Committee Chairs

report to the Court on the Committees’ key areas of focus

following each meeting. For further information on how

theNomination Committee, Audit Committee and Risk

Committee operate (including in respect of their compliance

with the Code), please see pages 155 to 175 of PLC Group’s

2025 Annual Report.

The Court, together with the PLC Group, are committed to

high standards of engagement with employees, suppliers

and other stakeholders. For a description of how the

directorsengaged with stakeholders, including as to

howsuch engagement has been considered in the

Court’sdecision making, please refer to page 12.

A copy of the UK Corporate Governance Code can be found

at frc.org.uk

Employee policies and engagement

We work hard to ensure that our employees are kept

informed about matters affecting, or of interest to, them

andmore importantly that they have opportunities to

provide feedback and engage in a dialogue.

We strive to listen and act on feedback from colleagues to

ensure internal communications are timely, informative,

meaningful, and in support of our strategy and transformation.

Pulse is our primary internal communications channel that

allows colleagues to receive company updates and information

that is personalised by role and location, sign up for events,

provide feedback, and navigate to other internal platforms.

In addition to targeted digital communications, we also

organise audio and video calls, virtual and face-to-face

townhalls, and other staff engagement and recognition events.

We periodically analyse and measure the impact of our

communications through a range of feedback tools, including

an annual global internal communications survey. Our senior

leaders and people leaders play a critical role in engaging

ourteams across the network, ensuring that they are kept

upto date on key business developments related to our

performance and strategy. We offer additional support to

our senior leaders and people leaders with specific calls and

communications packs to help them provide context and

guidance to their team members to better understand

theirrole in executing and delivering our strategy.

Across the organisation, regular team meetings with people

leaders, one-to-one conversations and various management

meetings provide an important platform for colleagues

todiscuss and clarify key issues. Regular performance

conversations provide the opportunity to discuss how

individuals, the team and the business area have contributed

to our overall performance and how recognition and reward

relate to this. Senior leadership also regularly shares global,

business, function, and market updates on performance,

strategy, structural changes, HR programmes, community

involvement and other campaigns. The Court also engages

with and listens to the views of the workforce through several

sources, including through interactive engagement sessions.

Employees past, present and future can follow our progress

through the PLC Group’s LinkedIn network and Facebook

page, as well as other social network channels including

Instagram and X, which collectively have 13.1 million followers.

The diverse range of internal and external communication

tools and channels we have put in place aim to ensure that

all colleagues receive timely and relevant information to

support their effectiveness.

Read more on how the Court have engaged with employees

and considered employee interests on page 13 of the

Strategic Report

Employee policies

We work hard to ensure our employees’ wellbeing is so that

they can thrive at work and in their personal lives. Our PLC

Group minimum standards provide employees with a range

of flexible working options, in relation to both location and

working patterns. Employees are provided with at least 30

days’ leave (through annual leave and public holidays), and

new parents are provided a minimum of 20 calendar weeks’

fully paid leave, irrespective of gender, relationship status or

how a child comes to permanently join a family. These

benefits are in excess of the International Labour

Organisation’s (ILO) minimum standards.

We seek to maintain a meaningful relationship based on

mutual trust and respect with various employee representative

bodies (including unions and work councils). In our recognition

and interactions, we are heavily influenced by the 1948 United

Nations Universal Declaration of Human Rights (UDHR), and

several ILO conventions including the Right to Organise and

Collective Bargaining Convention, 1949 (No. 98) and the

Freedom of Association and Protection of the Right to

Directors’ report

Directors’ Report and Financial Statements 2025 | Standard Chartered 18

Organise Convention, 1948 (No. 87). Working conditions

andterms of employment of other employees are based

onour PLC Group and country policies, and in accordance

with individual employment contracts issued by the Group.

Employees’ concerns in relation to their employment or

another colleague which cannot be resolved through

informal mechanisms such as counselling, coaching or

mediation, are dealt with through our PLC Group Grievance

Standard. This includes concerns related to bullying,

harassment, sexual harassment, discrimination and/or

victimisation, as well as concerns regarding conditions

ofemployment (for example, working practices or the

working environment).

Employees can raise grievances to their People Leader or a

Human Resources (HR) Representative. The global process

for addressing grievances involves an HR representative

anda member of the business reviewing the grievance,

conducting fact finding into the grievance and providing

awritten outcome to the aggrieved employee. Where

employees raise concerns regarding alleged wrongdoing

pertaining to another employee or in circumstances where

the employee alleges wrongdoing, but does not wish to raise

a grievance, such concerns are investigated in accordance

with the PLC Group Investigations Standard.

If a grievance or investigation is upheld, the next steps

mightinclude remedying a process, or initiating a disciplinary

review of the conduct of the colleague who is the subject of

the concern. The PLC Group Grievance Standard, PLC Group

Investigations Standard and accompanying process are

reviewed on a periodic basis in consultation with stakeholders

across HR, Legal, Compliance, Group Investigations and

Shared Investigative Services. Grievance and investigation

trends are reviewed on a regular basis and action is taken

toaddress any concerning trends.

There is a distinct PLC Group Speaking Up Policy and

Standard which covers instances where an employee

wishesto ‘blow the whistle’ on actual, planned or potential

wrongdoing by another employee or the Company.

The PLC Group is committed to creating a fair, consistent

andtransparent approach to making decisions in a

disciplinary context. This commitment is codified in our Fair

Accountability Principles, which underpin our PLC Group

Disciplinary Standard. Dismissals due to misconduct issues

and/or performance (where required by law to follow

adisciplinary process) are governed by the PLC Group

Disciplinary Standard. Where local law or regulation requires

a different process with regards to dismissals and other

disciplinary outcomes, we have clearly documented

countryvariances in place.

Our PLC Group Diversity and Inclusion Standard applies

toallemployees, including the Management Team, and

non-employed workers as well as any other individual

working for the PLC Group, including contractors, consultants

and secondees. All colleagues are required to comply with

this standard. This is reflected in our PLC Group Code of

Conduct and Ethics, which colleagues are required to

recommit to on an annual basis. The standard has been

developed to ensure a diverse and inclusive workplace,

withfair and equal treatment, and the provision of

opportunities for employees to participate fully and reach

their full potential in a respectful working environment. All

individuals are entitled to be treated with dignity and respect,

and to be free from harassment, bullying, discrimination and

victimisation. This helps to support productive working

conditions, decreased staff attrition, positive employee

morale and engagement, maintains employee wellbeing,

and reduces people-related risk.

All colleagues are responsible for fostering an inclusive

culturewhere individuality and differing skills, capabilities

andexperience are understood, respected and valued.

Allcolleagues, consultants, contractors, volunteers, interns,

casual workers and agency workers are required to comply

with the standard, including conducting themselves

inamanner that demonstrates appropriate,

non-discriminatory behaviours.

We do not accept unlawful discrimination in our recruitment

or employment practices on any grounds including but not

limited to: sex, race, colour, nationality, ethnicity, national

orindigenous origin, disability, age, marital or civil partner

status, pregnancy or maternity/paternity, sexual orientation,

gender identity, expression or reassignment, HIV or AIDS

status, parental status, military and veterans status,

flexibilityof working arrangements, religion or belief. We

arecommitted to providing equal opportunities and fair

treatment in recruitment, appraisals, pay and conditions,

training, development, succession planning, promotion,

grievance/disciplinary procedures and employment

termination practices, that are inclusive and accessible; and

that do not directly or indirectly discriminate. Recruitment,

employment, training, development and promotion decisions

are based on the skills, knowledge and behaviour required

toperform the role to the PLC Group’s standards. Implied

inall employment terms and our fair pay charter is the

commitment to equal pay for equal work. We comply with

the duty to consider reasonable workplace adjustments

(including during the hiring process) to ensure all individuals

feel supported and are able to participate fully and reach

their potential.

We comply with the duty to consider reasonable workplace

adjustments (including during the hiring process) to ensure

allindividuals feel supported and are able to participate

fullyand reach their potential.

We aim to be a disability confident organisation with a focus

on removing barriers, improving accessibility and supporting

colleagues who acquire a disability through appropriate

training and workplace adjustments where possible to

enable continued employment and career development.

Health, Safety and Wellbeing

Our health, safety and wellbeing (HSW) vision is to

enableahealthy, safe and resilient workforce that supports

employee productivity, operational resilience and sustainable

performance. Effective management of HSW risks is

fundamental to maintaining trust with colleagues, clients,

regulators and communities, and forms part of the PLC

Group’s enterprise risk management framework.

Directors’ report

Directors’ Report and Financial Statements 2025 | Standard Chartered 19

Our global HSW programme encompasses both physical

andmental health and wellbeing and is embedded across

our operations. We comply with all applicable regulatory

requirements and internal standards in every market,

adopting the more stringent requirement. Status of health

and safety management and compliance are reported at

least biannually to each country’s Management Team.

HSW performance are reported annually to the Group

RiskCommittee and Court Risk Committee. We operate a

global H&S management system and compliance tracker,

complemented by leading indicators such as near-miss

reporting, inspections, training completion and audit

outcomes to strengthen preventive controls.

We align to the International Labour Organization Code

ofPractice and UK Health and Safety Executive guidance,

ensuring consistent recording, notification and management

of occupational accidents and disease that may involve

employees, contractors, and visitors. In 2025, there were

nowork-related fatalities or occupational ill health cases.

16 major injuries were recorded, with commuting-related

incidents remaining the most common. Major injuries follow

the UK definition and fractures remain to be the most

common type accounting for 56% of recorded. We recorded

a 14% increase in reported injuries reflecting improved

reporting awareness and earlier intervention. Injury rates

remain aligned with, or better than, industry benchmarks.

An Operational Excellence programme was implemented

across the premises portfolio to address ageing assets,

near-miss trends and third-party risk. Lessons learned are

systematically reviewed to drive continuous improvement.

The programme involves the review of the CRES process

universe to incorporate business resilience risk and impacts

ofageing and natural disasters to premises, risk profiling and

tiering of real estate portfolio, third party inspections, review

of third party supplier key performance metrics for integrated

facilities management, training and upskilling for timely

reporting, escalation, investigation and analysis of incidents.

Except in markets where cover is provided through State-

mandated healthcare, the Bank provides global access to

medical and healthcare services. Counselling and proactive

wellbeing support is provided through the Employee

Assistance Programme and Unmind platform.

Mental health is treated with the same priority as physical

health. Over 600 Mental Health First Aiders across 51 markets

support early intervention and stigma reduction.

In 2025, 795 of our locations achieved the WELL Health-

Safety Rating — an increase of more than 640 sites from

2024 — and 21 locations earned the WELL Equity Rating,

anaddition of 12 from 2024 while we are on our way to

obtaining certifications in major projects embedding

accessibility, belonging and equitable experiences deeper

into our global workplace strategy. These achievements

reflect our continued effort to ensure every colleague feels

safe, supported and able to perform at their best, wherever

they are.

Looking ahead, priorities include strengthening preventive risk

management through data driven insights supporting decision

making, embedding wellbeing into leadership capability, and

reinforcing a culture of continuous improvement.

Supply Chain Management

Our purchases of goods and services are governed through

athird-party risk management framework through which

weaim to follow the highest standards in terms of selection

of suppliers, due diligence and contract management.

For information about how the PLC Group engages with

suppliers on environmental and social matters, please see our

Supplier Charter and Supplier Diversity and Inclusion Standard.

We publish a Modern Slavery Statement annually under the

UK Modern Slavery Act 2015 and Australian Modern Slavery

Act 2018. The 2025 Modern Slavery Statement describes

theactions the Group has taken during 2025 to assess and

manage the risk of slavery, forced, bonded or compulsory

labour, the worst forms of child labour, and human trafficking

(modern slavery) in its operations and supply chain.

Our Supplier Charter and Supplier Diversity and Inclusion

standard can be viewed at sc.com/suppliercharter and

sc.com/supplierdiversity

Clients and Products

We aim to design and offer products based on client needs

to ensure fair client treatment and to support fair outcomes

for clients. The PLC Group has in place a risk framework,

comprising policies, standards and controls to support these

objectives in alignment with our Conduct Risk Management

approach. We ensure products sold are suitable for clients

and comply with relevant laws and regulations.

We also review our products on a periodic basis and refine

them to keep them relevant to the changing needs of clients

and to meet regulatory obligations. We have processes and

guidelines specific to each of our client industries, to promptly

resolve client complaints and understand and respond to

client issues.

Environmental impact of our operations

The PLC Group aims to minimise the environmental impact of

our operations as part of our commitment to be a responsible

company. The PLC Group reports on energy, water and

non-hazardous waste data and the targets the PLC Group

has set to reduce energy, water and waste consumption.

In2025, the PLC Group achieved its net zero target across

Scope 1 and 2 emissions, marking a significant milestone

The PLC Group’s reporting methodology is based upon the

“The Greenhouse Gas Protocol – A Corporate Accounting

andReporting Standard (Revised Edition)”.

Information on the principles and methodologies used

tocalculate the GHG emissions of the PLC Group can be

found in our Environmental Reporting Criteria document

at sc.com/environmentcriteria

Directors’ report

Directors’ Report and Financial Statements 2025 | Standard Chartered 20

Directors’ report

Summary of Activities of the Company’s

Jersey Branch

Standard Chartered Bank Jersey Branch’s Affluent banking

activities include deposit taking, lending and investment

business in accordance with Jersey laws and regulations.

Auditor

The Audit Committee reviews the appointment of the Group

statutory auditor, its effectiveness and its relationship with

the Group, which includes monitoring our use of the auditors

for non-audit services and the balance of audit and non-audit

fees paid. Each director believes that there is no relevant

information of which our Group statutory auditor is unaware.

Each has taken all reasonable steps necessary as a director

to be aware of any relevant audit information and to

establish that Ernst & Young LLP (EY) is made aware of

anypertinent information. A resolution to re-appoint EY as

auditor was passed at the 2025 PLC Annual General Meeting.

By order of the Court

Bill Winters

Director

24 February 2026

Company Reference Number: ZC18

Directors’ Report and Financial Statements 2025 | Standard Chartered 21

The directors are responsible for preparing the Directors’

Report and the Group and Company Financial Statements

inaccordance with applicable law and regulations.

Company law requires the directors to prepare Group and

Company financial statements for each financial year.

Underthat law:

• the Group financial statements have been prepared in

accordance with UK-adopted International Accounting

Standards and International Financial Reporting

Standards as adopted by the European Union

• the Company financial statements have been properly

prepared in accordance with UK-adopted International

Accounting Standards as applied in accordance with

section 408 of the Companies Act 2006, and

• the financial statements have been prepared in accordance

with the requirements of the Companies Act 2006.

Under company law the directors must not approve the

financial statements unless they are satisfied that they give

atrue and fair view of the state of affairs of the Group and

Company and of their profit or loss for that period.

In preparing each of the Group and Company financial

statements, the directors are required to:

• select suitable accounting policies and then apply

themconsistently

• make judgements and estimates that are reasonable,

relevant and reliable

• state whether they have been prepared in accordance

with UK-adopted International Accounting Standards and

International Financial Reporting Standards as adopted

by the European Union

• assess the Group and the Company’s ability to continue as

a going concern, disclosing, as applicable, matters related

to going concern; and

• use the going concern basis of accounting unless they

either intend to liquidate the Group or the Company or

tocease operations or have no realistic alternative but

todo so.

The directors are responsible for keeping adequate

accounting records that are sufficient to show and explain

the Company’s transactions and disclose with reasonable

accuracy at any time the financial position of the Company

and enable them to ensure that its financial statements

comply with the Companies Act 2006. They are responsible

for such internal control as they determine is necessary to

enable the preparation of financial statements that are free

from material misstatement, whether due to fraud or error,

and have general responsibility for taking such steps as are

reasonably open to them to safeguard the assets of the Group

and to prevent and detect fraud and other irregularities.

Under applicable law and regulations, the directors are also

responsible for preparing a Strategic Report and Directors’

Report that comply with that law and those regulations.

Responsibility statement of the directors

inrespect of the Directors’ Report and

Financial Statements

We confirm that to the best of our knowledge:

• The financial statements, prepared in accordance with

theapplicable set of accounting standards, give a true

and fair view of the assets, liabilities, financial position

andprofit or loss of the Company and the undertakings

included in the consolidation taken as a whole; and

• The Strategic Report includes a fair review of the

development and performance of the business and the

position of the Company and the undertakings included

inthe consolidation taken as a whole, together with a

description of the emerging risks and uncertainties that

they face.

We consider the Directors’ Report and Financial Statements,

taken as a whole, is fair, balanced and understandable and

provides the information necessary to assess the Group’s

position and performance, business model and strategy.

By order of the Court

Bill Winters

Director

24 February 2026

Statement of directors’ responsibilities

Directors’ report

Directors’ Report and Financial Statements 2025 | Standard Chartered 22

The following parts of the Risk review and Capital review form part of these financial statements –

a) Risk review: Disclosures marked as ‘audited’ from the start of Credit Risk section (page 30) to the end of other principal risks

inthe same section (page 70); and

b) Capital review: Tables marked as ‘audited’ from the start of ‘Capital base’ (page 71) to the end of ‘Total capital’ (page 71).

Risk index

Page

number

Risk management

approach

Risk management framework 24

Principal risks 25

Risk profile Credit Risk 30

Basis of preparation 30

Credit Risk overview 30

Impairment model 30

Summary of Credit Risk performance 30

Maximum exposure to Credit Risk 31

Analysis of financial instrument by stage 33

Credit quality analysis 35

• Credit quality by client segment 35

Movement in gross exposures and credit impairment for loans and advances, debt securities,

undrawn commitments and financial guarantees

Credit impairment charge 43

Problem credit management and provisioning 43

• Forborne and other modified loans by client segment 43

Credit Risk mitigation 44

• Collateral 44

• Collateral held on loans and advances 44

• Collateral – Corporate and Investment Banking 45

• Collateral – Wealth and Retail Banking 46

• Mortgage loan-to-value ratios by geography 47

• Collateral and other credit enhancements possessed or called upon 47

• Other Credit Risk mitigation 47

Other portfolio analysis 47

• Contractual maturity analysis of loans and advances by client segment 48

• Credit quality by industry 49

• Debt securities and other eligible bills 53

IFRS 9 expected credit loss methodology 54

Traded Risk 60

Counterparty Credit Risk 60

Derivative financial instruments Credit Risk mitigation 60

Market Risk movements 60

Liquidity and Funding risk 63

Liquidity and Funding risk metrics 63

Liquidity analysis of the Group’s balance sheet 64

Interest Rate Risk in the Banking Book 69

Operational and Technology Risk 70

Operational and Technology Risk profile 70

Other principal risks 70

Capital Capital management and governance 71

Capital ratio 71

Capital base 71

Leverage ratio 71

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 23

Risk review and Capital review

Risk Management Framework

The Risk Management Framework (RMF) enables the Group

to manage enterprise-wide risks, with the objective of

maximising risk-adjusted returns while remaining within

ourRisk Appetite (RA). The RMF has been designed

inaccordance with the PLC Group’s Enterprise Risk

Management Framework (ERMF). It is reviewed and

approved by the SC Bank Court annually, with the latest

version being effective from August 2025.

The PLC Group 2025 Annual Report (pages 220 to 232) outlines

our risk management approach through the Enterprise Risk

Management Framework. The PLC Group 2025 Annual Report

also defines our Risk Culture, Roles and Responsibilities, the

Risk Function, approach to Risk Identification and Assessment,

Risk Appetite and Stress Testing, and Principal Risks that are

also applicable to the Group

RMF effectiveness reviews

Effectiveness review of the RMF is managed as part

ofthePLC Group ERMF effectiveness review. At Group

level,aself-assessment is conducted to assess the overall

effectiveness of the RMF, and the results are taken into

consideration in the ERMF effectiveness review. The GCRO

isresponsible for annually affirming the effectiveness of the

RMF to the Court Risk Committee (CRC).

The RMF effectiveness review measures year-on-year

progress. Ongoing effectiveness reviews allow for a structured

approach to identify improvement opportunities and build

plans to address them.

Executive and Board risk oversight

Overview

The corporate governance and committee structure helps

theGroup to conduct our business. The Court has ultimate

responsibility for risk management and approves the RMF

based on the recommendation of the Court Risk Committee,

which also recommends the Group RA Statement for

allPRTsand other risks. During the financial year ended

on31 December 2025, the Court comprised of the majority

ofthe independent non-executive directors from the PLC

Board, executive directors from the PLC Board as well

asanexecutive director and non-executive director

whoareappointed solely to the Court with the specific

purpose ofproviding independent decision making

attheCourt meetings.

Court Risk Committee

Court Audit Committee

Court Nomination

Committee

Combined United States

Operators and Risk

Committee

(US Risk Committee)

Court and Executive level risk committee governance structure

The Committee governance structure below presents the view as of 2025.

COURT

COURT LEVEL COMMITTEES

1 The Court also has a Standing Committee with a remit to approve matters, on behalf of the Court, where a formal resolution is required for legal

andregulatorypurposes.

Directors’ Report and Financial Statements 2025 | Standard Chartered 24

Court Risk Committee

The CRC is concerned with the oversight and review

ofprincipal risks.

Court Audit Committee

The Court Audit Committee is concerned with the oversight

and review of financial, audit, internal control and non-

financial crime issues.

Court Nomination Committee

The Court Nomination Committee is responsible for oversight

and review of the composition of, and appointments to the

Company’s Court, and the development of a diverse pipeline

for succession.

Combined United States Operations and Risk

Committee (US Risk Committee)

The Committee is appointed by the SC Bank Court to oversee

risk and governance of the Combined US Operations (CUSO):

and to ensure compliance with the Dodd-Frank Act section

165 Enhanced Prudential Standards. The Committee is

responsible for approval and oversight of the US strategy, the

Risk Management Framework and associated policies, and

the Risk Appetite Statement and metrics for CUSO. The

Committee also approves the remuneration and

performance objectives of key US Officers.

The Group has two management level committees, namely

the Standard Chartered Bank Executive Risk Committee (SCB

ERC) and Solo & Standard Chartered Bank UK (Branch) Asset

and Liability Management Committee (Solo & SCB ALCO).

Standard Chartered Bank Executive Risk Committee

SCB ERC is responsible for ensuring the effective

management of risk throughout the Group in support

oftheGroup’s strategy. The GCRO chairs the Committee,

whose members are drawn from the GMT. The Committee

oversees the implementation of the RMF, including the

delegation of any part of its authorities to appropriate

individuals or properly constituted sub-committees. SCB ERC

relies on joint meetings with the PLC Group Risk Committee

toprovide oversight of the PRTs across clients, businesses,

products andfunctions. The Committee requests and

receivesrelevant information to fulfil its governance

mandates relating to the risks to which the Group is exposed,

and alerts Senior or Executive management when risk reports

do not meet its requirements.

Solo & Standard Chartered Bank UK (Branch) Asset and

Liability Management Committee

Solo & SCB ALCO is appointed by the SC Bank CFO and

chaired by the Group Treasurer. The Committee is responsible

for determining the Group’s approach to balance sheet

management and ensuring that, in executing the Group’s

strategy, the Group operates within the internally approved

RA and external requirements relating to capital, loss-

absorbing capacity, liquidity, leverage, Interest Rate Risk in

the Banking Book (IRRBB), Banking Book Basis Risk and

Structural Foreign Exchange Risk. The Committee is also

responsible for ensuring that internal and external recovery

planning requirements are met.

The SCB ERC and Solo & SCB ALCO receive reports that

include information on risk measures, RA metrics and

thresholds, risk concentrations, forward-looking assessments,

updates on specific risk situations, and actions agreed by

these committees to reduce or manage risk.

Principal Risk Types

PRTs are those risks that are inherent in our strategy

andbusiness model and have been formally defined

intheGroup’s RMF. These risks, including mitigation

andmonitoring thereof, are managed in line with the

PLCGroup’s RTFs which are cascaded to the Group.

ThePRTsand associated RA Statements are approved

bytheCourt, and reviewed annually.

Financial Principal Risk Types

Credit Risk

Mitigation

We apply segment-specific PLC Group policies for Corporate

Investment Banking (CIB) and Wealth and Retail Banking

(WRB), which set the principles that must be followed for the

end-to-end credit process covering initiation, assessment,

documentation, approval, monitoring, and governance.

We also apply the PLC Group standards for the eligibility,

enforceability, and effectiveness of mitigation arrangements.

Potential losses are mitigated using a range of tools, such as

collateral, netting agreements, credit insurance, credit

derivatives and guarantees.

Risk mitigants are carefully assessed for their market value,

legal enforceability, correlation, and counterparty risk of the

protection provider. Collateral is valued prior to drawdown

and monitored regularly thereafter as required, to reflect

current market conditions, the probability of recovery, and the

period of time to realise the collateral in the event of

liquidation. We also seek to diversify collateral holdings

across asset classes and markets.

Where guarantees, credit insurance, standby letters

ofcreditor credit derivatives are used as Credit Risk

mitigation, the creditworthiness of the protection provider

isassessed and monitored using the same credit process

applied to the obligor.

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 25

Monitoring

The Group regularly monitors credit exposures, portfolio

performance, external trends and emerging risks that may

impact risk management outcomes. Internal risk

management reports that are presented to risk committees

contain information on key political and economic trends

across major portfolios and countries, portfolio delinquency

and loan impairment performance.

In CIB, clients and portfolios are subject to additional review

when they display signs of actual or potential weakness; for

example, where there is a decline in the client’s position

within their industry, financial deterioration, a breach of

covenants, or non-performance of an obligation within the

stipulated period. Such accounts are subject to a dedicated

early alert process overseen by the Credit Issues Committee in

the relevant countries where client account strategies and

credit grades are re-evaluated. In addition, remedial actions

can be undertaken, such as exposure reduction, security

enhancement or exiting the account. Stressed Assets Group

(SAG) is the specialist recovery unit for CIB that operates

independently from the main business. The Stressed Asset

Risk (SAR) is the second line risk unit. SAR is responsible for the

independent challenge, monitoring and approving of the

credit risk decisions including stage 3 credit impairment

provision of the credit-impaired accounts.

Regular portfolio reviews across industries are conducted.

Senior members from the CIB business and Risk participate in

more extensive portfolio reviews (known as the ‘industry

portfolio review’) for certain industry groups. In addition to a

review of the portfolio information, this industry portfolio

review incorporates industry outlook, key elements of the

business strategy, RA, credit profile, and emerging and

horizon risks. A summary of these industry portfolio reviews is

also shared with the CIB Financial Risk Committee.

For WRB, exposures and collateral monitoring are performed

at the counterparty and/or portfolio level across different

client segments to ensure transactions and portfolio

exposures remain within RA. Portfolio delinquency trends are

also monitored. Accounts that are past due (or perceived as

high risk but not yet past due) are subject to collections or

recovery processes managed by a specialist independent

function. In some countries, aspects of collections and

recovery activities are outsourced. For discretionary lending

portfolios, similar processes to those of CIB are followed.

Any material in-country developments that may impact

sovereign ratings are monitored closely by Country Risk

withinthe ERM function. The Country Risk Early Warning

system, a triage-based risk identification system, categorises

countries based on a forward-looking view of possible

downgrades and the potential incremental risk-weighted

assets (RWA) impact.

In addition, an independent Credit Risk Review team within

the ERM function performs assessments of the Credit Risk

profiles at various portfolio levels. They focus on selected

countries and segments through deep dives, comparative

analysis, and review and challenge of the basis of credit

approvals. The review aims to ensure that the evolving

CreditRisk profiles of CIB and WRB are well managed

withinRAandpolicies. Results of the reviews are reported

tothe SCBank ERC and CRC.

Credit rating and measurement

All credit proposals are subject to a robust credit risk

assessment. It includes a comprehensive evaluation of the

client’s credit quality, including willingness, ability, and

capacity to repay. The primary lending consideration for

counterparties is based on their credit quality and operating

cashflows while for individual borrowers it is based on

personal income or wealth. The risk assessment gives due

consideration to the client’s liquidity and leverage position.

Where applicable, the assessment includes a detailed

analysis of the Credit Risk mitigation arrangements to

determine the level of reliance on such arrangements as the

secondary source of repayment in the event of a significant

deterioration in a client’s credit quality leading to default.

Client income, net worth, and the liquidity of assets by class

are considered for overall risk assessment for wealth lending.

Wealth lending credit limits are subject to the availability

ofqualified collateral.

We implement a standard alphanumeric Credit Risk grade

system to differentiate the credit quality of exposures for CIB

clients, whereby credit grades (CG) 1 to 12 are assigned to

reflect the probability of default of performing clients (CG 1

being the best performing), and credit grades 13 and 14 are

assigned to non-performing or defaulted clients.

WRB internal ratings-based portfolios use application

andbehavioural credit scores that are calibrated to generate

a probability of default. The Risk Decision Framework uses

acredit rating system to define the portfolio/new booking

segmentation, shape and decision criteria for the unsecured

consumer business segment.

Advanced Internal Ratings Based (AIRB) models cover

themajority of our exposures and are used in assessing

risksatacustomer and portfolio level, setting strategy

andoptimising our risk-return decisions. The PLC Group

Model Risk Committee (MRC) approves material internal

ratings-based risk measurement models. Prior to review

andapproval, allinternal ratings-based models are validated

by an independent model validation team. Reviews are

alsotriggered if the performance of a model deteriorates

materially against predetermined thresholds, measured

through the ongoing model performance monitoring process.

We adopt the AIRB approach under the Basel regulatory

framework to calculate Credit Risk capital requirements

forthe majority of our exposures. The Group has also

established a global programme to assess capital

requirements necessary to be implemented to meet the latest

revised Basel III regulation (referred to as Basel 3.1 or Basel IV).

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 26

Credit Concentration Risk

Credit Concentration Risk for CIB is managed through

concentration limits covering large exposure limit to a single

counterparty or a group of connected counterparties (based

on control and economic dependence criteria), or at portfolio

level for multiple exposures that are closely correlated. Single

name and Portfolio RA metrics are set, where appropriate, by

credit grade, industry, products, tenor, collateralisation level,

top clients, and exposure to holding companies.

For concentrations that are material at a Group level,

breaches and potential breaches are monitored by the

respective governance committees and reported to the SC

Bank ERC and CRC.

Credit impairment

For CIB, in line with the regulatory guidelines, Stage 3 ECL is

considered when an obligor is more than 90 days past due on

any amount payable to the Group, or the obligor has

symptoms of unlikeliness to pay its credit obligations in full as

they fall due. These credit-impaired accounts are managed

by SAG.

In WRB, loans to individuals and small businesses are

considered credit-impaired as soon as any payment of

interest or principal is 90 days overdue or they meet other

objective evidence of impairment, such as bankruptcy, debt

restructuring, fraud, or death, with unlikely continuation of

contractual payments. Financial assets are written-off, in the

amount that is determined to be irrecoverable, when they

meet conditions set such that empirical evidence suggests

the client is unlikely to meet their contractual obligations,

oraloss of principal is reasonably expected.

Estimating the amount and timing of future recoveries

involves significant judgement and considers the assessment

of matters such as future economic conditions and the value

of collateral, for which there may not be a readily accessible

market. The total amount of the Group’s impairment

provision is inherently uncertain, being sensitive to changes

ineconomic and credit conditions across the markets in

which the Group operates.

Read more on sensitivity analysis of ECL under IFRS 9

intheRisk profile section on page 57

Underwriting

The underwriting of securities and loans is in scope of the

CIBRA. The Underwriting Committee approves individual

proposals to underwrite new security issues and loans for our

clients in compliance with the RA statement. Additional risk

triggers are set based on the type of exposure and credit

grade as approved by the GCRO.

Traded Risk

Mitigation

Traded Risk limits are calibrated to ensure that risk exposure

is affordable under both normal and stress conditions. The

Traded Risk Policy sets the principles that must be followed

for the end-to-end traded risk management process

including limit setting, risk capture and measurement, limit

monitoring and escalation, risk mitigation, and stress testing.

Policies are reviewed and approved by the Global Head,

Traded Risk Management periodically to ensure their

ongoing effectiveness.

Market Risk Measurement

The Group uses a VaR model to measure the risk of losses

arising from future potential adverse movements in market

rates, prices, and volatilities.

VaR provides a consistent measure that can be applied

across trading businesses and products over time and can

beset against actual daily trading profit and loss outcomes.

For day-to-day risk management, VaR is calculated as at the

close of business, generally at UK time, for expected market

movements over one business day and to a confidence level

of 97.5 per cent.

The Group applies two VaR methodologies:

• Historical simulation: this involves the revaluation of all

existing positions to reflect the effect of historically

observed changes in Market Risk factors on the valuation

of the current portfolio. This approach is applied for

general Market Risk factors and the majority of specific

(credit spread) risk factors. The enhanced Volatility Scaling

VaR (VSV) model went live in January 2025 where risk

factors’ returns are scaled to reflect historical volatility.

TheVSV model is more responsive to volatility changes

observed in the market.

• Monte Carlo simulation: this methodology is used in

conjunction with historical simulations when historical

data is not directly available. This approach is applied for

the idiosyncratic credit spread risk factor or single name

equity risk factor. The simulation is performed by

calibrating the model to preserve volatility of risk factors.

As an input to regulatory capital, trading book VaR is

calculated for expected movements over 10 business days

and to a confidence level of 99 per cent. Some types of

market risks are not captured in the regulatory VaR measure

and these risks not in VaR are subject to capital add-ons.

Counterparty Credit Risk measurement

A Potential Future Exposure (PFE) model is used to measure

the credit exposure arising from the positive mark-to-market

of traded products. The PFE model provides a quantitative

estimate of future potential movements in market rates,

prices, and volatilities at a certain confidence level over

different time horizons based on the tenor of the transactions.

The Group applies two PFE methodologies: simulation-based,

used for the bulk of FX, interest rates and commodity

products, and add-on-based for credit products and residual

non-simulation-based products.

Monitoring

Traded Risk Management monitors the overall portfolio risk

and ensures that it is within specified limits and therefore RA.

Limits are typically reviewed at least once a year.

All material Traded Risks are monitored daily against

approved limits. Traded Risk limits apply at all times unless

separate intra-day limits have been set.

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 27

Treasury Risk

We apply the PLC Group policies for the management of

material Treasury Risks and closely monitor our risk profile

through RA metrics set at Solo and country level.

Capital Risk

In order to manage Capital Risk, strategic business, financial

plans and capital plans (Corporate Plan) are drawn up

covering a five-year horizon which are approved by the Court

annually. The plan ensures that adequate levels of capital,

including loss absorbing capacity, and an efficient mix of the

different components of capital, are maintained to support

our strategy and business plans. This process considers

downside scenarios and the availability of recovery actions to

course correct, as appropriate.

Treasury is responsible for the ongoing assessment

ofthedemand for capital and the updating of the Solo’s

capital plan.

Solo level RA metrics including capital, leverage and

Minimum Requirement for own funds and Eligible Liability

(MREL), are assessed within the Corporate Plan to ensure

that the strategy can be achieved within risk tolerances.

Structural Foreign Exchange (FX) Risk

The Group’s structural FX position results from the Company’s

non-US dollar investment in the share capital and reserves of

subsidiaries and branches. The FX translation gains or losses

are recorded in the Company’s translation reserves, with a

direct impact on the PLC Group’s and Solo’s Common Equity

Tier 1 (CET1) ratio.

Hedges are contracted across PLC Group and Solo to

manage their structural FX position in accordance with the

RA. As a result net investment hedges to partially cover its

exposure to certain non-US dollar currencies, mitigating the

FX impact of such positions on its CET1 ratios.

Read more on our Structural foreign exchange exposures

onpage 61

Liquidity and Funding Risk

At Solo and entity level we implement various RA metrics to

monitor and manage liquidity and funding risk. This ensures

that the Group maintains an adequate and well-diversified

liquidity buffer, as well as a stable funding base, to meet its

liquidity and funding regulatory requirements.

Read more on Liquidity and Funding Risk on page 63

Interest Rate Risk in the Banking Book

At Solo level, we implement the RA for Economic Value of

Equity and Annual Earnings at Risk and monitor these against

limits and management action triggers. This risk arises from

differences in the repricing profile, interest rate basis, and

optionality of banking book assets, liabilities and off-balance

sheet items. IRRBB represents an economic and earnings risk

to the Group and its capital adequacy.

Read more on IRRBB on page 69

Pension Risk

Pension Risk is the potential for loss due to having to meet an

actuarially assessed shortfall in the Group’s pension plans.

Pension Risk arises from the Group’s contractual or other

liabilities with respect to its occupational pension plans or

other long-term benefit obligations. For a funded plan it

represents the risk that additional contributions will need to

be made because of a future funding shortfall. For unfunded

obligations, it represents the risk that the cost of meeting

future benefit payments is greater than currently anticipated.

Recovery and Resolution Planning

In line with PRA requirements, the Group maintains a

Recovery Plan and a Solo Recovery Plan (SCB UK and its

branches). The Solo Recovery Plan includes a set of recovery

indicators, an escalation framework, and a set of

management actions capable of being implemented during

a stress. The Solo Recovery Plan is also subject to periodic

fire-drill testing in line with the Group. Other major entities of

SC Bank also maintain their own recovery plans in line with

the Group Standards and local requirements.

As the UK resolution authority, the BoE set a single point of

entry bail-in at the ultimate holding company level (Standard

Chartered PLC) as the preferred resolution strategy for the

PLC Group. In support of this strategy, the PLC Group has a

set of capabilities, arrangements, and resources in place to

maintain, test and improve resolution capabilities, and

continue to meet the required resolvability outcomes on an

ongoing basis.

The Resolvability Self-Assessment Report was submitted by

the PLC Group to the PRA in October 2023, with an update

provided in January 2024. The PLC Group also published its

latest resolvability disclosure, as required by the BoE, on

6 August 2024. The next PLC Group Resolvability Self-

Assessment Report will be submitted to the BoE/PRA in

October 2026.

Monitoring

On a day-to-day basis, Treasury Risk is managed by Treasury,

Finance, and Country CEOs. The Group regularly reports and

monitors Treasury Risk inherent in its business activities and

those that arise from internal and external events.

Internal risk management reports covering the capital,

liquidity and IRRBB positions are presented to the Solo & SCB

ALCO. The reports contain key information on balance sheet

trends, exposures against RA and supporting risk measures

which enable members to make informed decisions around

the overall management of the balance sheet. In addition, an

independent Treasury CRO within ERM reviews the prudence

and effectiveness of Treasury Risk management.

Pension Risk is managed by the Head of Pensions and

Reward Analytics, and monitored by the Treasury CRO

onaperiodic basis.

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 28

Non-financial Principal Risk Types

In the same way as financial risks, non-financial risk types

aremanaged in line with the PLC Group’s RTFs which are

cascaded to the Group. Our management of ESGR Risk is

setout below.

Read more on Operational and Technology, Information

and Cyber Security, Model, Financial Crime

andCompliance PRTs on pages 229 to 232 of the PLC

Group 2025 Annual Report

Environmental, Social and Governance and

Reputational (ESGR) Risk

ESGR Risk is defined as the risk of potential or actual adverse

impact on the environment and/or society, or to the Group’s

financial performance, operations or the Group’s name,

brand or standing, arising from environmental, social

orgovernance factors, or as a result of the Group’s actual

orperceived actions or inactions. ESGR Risk continues to be

anarea of growing importance, driving a need for strategic

transformation across business activities and risk

management.

Mitigation

The ESGR RTF provides the overall risk management

approach for Environmental, Social and Governance and

Reputational risks.

The ESG Risk policy outlines the Group’s commitment to

integrating ESG considerations into its business, operations,

and decision-making process. The policy sets out the

requirements for identifying, assessing, escalating and

managing ESG risks for the Group’s operations, clients/

transactions and third parties.

The Reputational Risk policy outlines the requirements

foridentifying, assessing, escalating and managing

negativeshifts in stakeholder perceptions arising from

clienton-boarding and due diligence, transactions, product

design and product features, or strategic coverages such as

entry into new markets or investments. Whenever potential

for stakeholder concerns is identified, issues aresubject to

review and decision by both the first and secondlines of

defence. The policy also sets out the key considerations for

mitigating greenwashing risk that can arise during product

and/or deal lifecycle, sustainability reporting and disclosures,

and external campaigns related tosustainability themes.

Monitoring

Exposure to Reputational Risks arising from transactions,

clients, products and strategic coverage is monitored

throughestablished triggers to prompt the appropriate

risk-based considerations and assessment by the first line

ofdefence and escalations to the second line of defence.

Riskacceptance decisions and thematic trends are also

reviewed on a periodic basis.

Exposure to ESG Risks is monitored through triggers

embedded within the first line of defence processes. The

environmental and social risks are considered for clients and

transactions via Client Environmental, Social and Governance

Risk Assessments (C-ESGRA), Transaction Environmental and

Social Risk Assessments (ESRA), Reputational Risk Materiality

Assessments (RRMA) and/or Climate Risk Assessments

(CRAs). Vendors that identified as high risk which meet the

high-risk category-country combinations based on responses

provided by the supplier at onboarding are assessed for

modern slavery risk.

Exposure to Climate Risk is monitored in conjunction with

other PRTs. We have embedded qualitative and quantitative

climate considerations into the Group’s Credit Underwriting

Principles for Oil and Gas, Mining, Shipping, Commercial real

estate and Project Finance portfolio. Starting October 2025,

we have introduced a Client-level Physical Risk Grading

Framework in order to identify and monitor key risk hotspots

in the CIB portfolio with regards to clients’ exposure to

extreme weather events. This is in addition to the Transition

Risk Grading already in place for CIB clients. We have also

expanded coverage of Climate and Credit Risk considerations

to physical collateral, as they serve as key risk mitigants

especially in default events. We use available data or proxy

methodologies to assess the portfolios within WRB for

transition risks particularly consumer mortgage. We assess

physical risk concentrations for our WRB portfolio on a

quarterly basis and assess the physical risk vulnerabilities of

our sites periodically and when new sites are onboarded.

Wehave initiated an evaluation of physical risk vulnerabilities

at our primary vendors’ delivery sites this year. We are also

monitoring the climate risk-related vulnerabilities and

readiness of our top corporate liquidity providers, including

the concentration of liquidity exposures on clients with high

transition and/or high physical risk.

Our Net Zero Climate Risk Working Forum meets every

twomonths to discuss account plans and risk management

strategies for high climate risk and net zero divergent clients.

We are also enhancing the oversight on any new grossly

misaligned clients through a mandatory second line review

aspart of the deal approval process. Stress testing and

scenario analysis are used to assess the impact of ESGR

related risks. The impact on capital requirements has been

included in the PLC Group Internal Capital Adequacy

Assessment Process (ICAAP). Management information

isreviewed at a quarterly frequency and any breaches in

RAare reported to the GRC and BRC.

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 29

Basis of preparation

Unless otherwise stated the balance sheet and income

statement information within this section is based on the

financial booking location. The presentation of segmental

information has been changed in 2025 as set out in Note 1 to

the financial statements. Prior period amounts have been

re-presented in line with this change.

Loans and advances to customers and banks held at

amortised cost in this ‘Risk profile’ section include reverse

repurchase agreement balances held at amortised cost, per

Note 15 “Reverse repurchase and repurchase agreements

including other similar secured lending and borrowing”.

Credit Risk overview

Credit Risk is the potential for loss due to the failure of a

counterparty to meet its obligations to pay the Group. Credit

exposures arise from both the banking and trading books.

Impairment model

IFRS 9 mandates an impairment model that requires the

recognition of expected credit losses (ECL) on all financial

debt instruments held at amortised cost, Fair Value through

Other Comprehensive Income (FVOCI), undrawn loan

commitments, and financial guarantees.

Read more on the accounting policy on page 101 and the

IFRS 9 expected credit loss methodology on page 54

Summary of Credit Risk Performance

Maximum exposure

The Group’s on-balance sheet maximum exposure to Credit

Risk increased by $19.7 billion to $562.9 billion (31 December

2024: $543.2 billion).

Cash and balances at central banks increased by $8.3 billion

to $64.9 billion (31 December 2024: $56.7 billion), reflecting

higher statutory reserve requirements and increased

unrestricted balances driven by funding inflows and high-

quality liquid asset deployment. Loans and advances to

customers increased by $1.0 billion to $159.3 billion

(31 December 2024: $158.2 billion), comprising increases of

$0.8 billion in CIB and $6.5 billion across WRB and Ventures,

offset by a $6.4 billion decrease in Central and other items.

Debt securities (not held at fair value through profit or loss)

increased by $7.5 billion to $103.7 billion (31 December 2024:

$96.2 billion) due to maturing exposures. Fair value through

profit and loss increased by $18.5 billion to $120.8 billion

(31 December 2024: $102.3 billion), largely due to an increase

in debt securities and loans to customers. Derivative financial

instruments decreased by $16.2 billion to $66.5 billion

(31 December 2024: $82.7 billion) mainly due to the

weakening of the US dollar.

Off-balance sheet instruments increased by $43.6 billion to

$248.9 billion (31 December 2024: $205.3 billion) due to

increases in financial guarantees and other equivalents, and

undrawn commitments driven by client demand.

Read more on Maximum exposure to Credit Risk onpage31

Loans and Advances

The Group continues to focus on high-quality origination,

with 93 per cent (31 December 2024: 93 per cent) of the

Group’s gross loans and advances to customers remaining in

stage 1 at $151.2 billion (31 December 2024: $149.8 billion).

Stage 1 gross loans and advances to customers increased by

$1.5 billion to $151.2 billion (31 December 2024: $149.8 billion).

CIB gross stage 1 balances increased by $1.5 billion in the

financing, insurance and non-banking sector. WRB gross

stage 1 balances increased by $5.9 billion largely due to

higher secured wealth and mortgages balances. This was

offset by a $6.2 billion reduction in Central and other items

primarily due to the maturity of placements held with the

Monetary Authority of Singapore.

Stage 2 gross loans and advances to customers decreased by

$0.5 billion to $6.8 billion (31 December 2024: $7.3 billion). CIB

gross stage 2 balances decreased by $0.6 billion to $5.6 billion

(31 December 2024: $6.3 billion), driven by the financing,

insurance and non-banking sector. WRB gross stage 2

balances are broadly unchanged at $1.2 billion (31 December

2024: $1.0 billion).

Stage 3 gross loans and advances to customers were broadly

stable at $4.0 billion (31 December 2024: $4.1 billion) across all

segments.

Read more on Analysis of financial instrument by stage on

page 33; Credit quality by client segment on page 35

Credit impairment charges

The Group’s credit impairment was a net charge of

$248 million (31 December 2024: $15 million).

WRB contributed a net charge of $299 million (31 December

2024: $260 million) driven by increase in charge-offs due to

the higher interest rate environment impacting repayments

on credit cards and personal loans, and maturity and

portfolio growth of digital partnerships in Indonesia.

For CIB, the credit impairment release of $97 million was

primarily driven by stage 3 releases that was lower by

$189 million when compared to 2024. Stage 1 and 2 increased

by $55 million due to overlays and portfolio movements.

Ventures net impairment charge was $33 million

(31 December 2024: $25 million) due to portfolio growth and

maturity of Trust Bank Plc.

For Central and other items, credit impairment charge was

lower at $13 million (31 December 2024: $16 million).

Read more on Credit impairment charges on page 43

Credit Risk

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 30

Maximum exposure to Credit Risk (audited)

The table below presents the Group’s maximum exposure to Credit Risk for its on-balance sheet and off-balance sheet financial

instruments as at 31 December 2025, before and after taking into account any collateral held or other Credit Risk mitigation.

Read more about Summary of Credit Risk Performance on page 30

Group

2025 2024

Maximum

exposure

$million

Credit risk management

Net Exposure

$million

Maximum

exposure

$million

Credit risk management

Net exposure

$million

Collateral

$million

Master netting

agreements

$million

Collateral

$million

Master netting

agreements

$million

On-balance sheet

Cash and balances at central banks 64,943 – – 64,943 56,665 – – 56,665

Loans and advances to banks

24,771 3,698 – 21,073 22,941 2,889 – 20,052

of which – reverse repurchase

agreements and other similar

secured lending

3,698 3,698 – – 2,889 2,889 – –

Loans and advances to customers

159,254 61,700 – 97,554 158,242 54,780 – 103,462

of which – reverse repurchase

agreements and other similar

secured lending

7,350 7,350 – – 9,121 9,121 – –

Investment securities – Debt

securities and other eligible bills

2,3

103,665 – – 103,665 96,179 – – 96,179

Fair value through profit or loss

120,756 66,326 – 54,430 102,258 65,603 – 36,655

Loans and advances to banks 2,435 – – 2,435 2,033 – – 2,033

Loans and advances to

customers

8,945 – – 8,945 3,989 – – 3,989

Reverse repurchase agreements

and other similar lending

66,326 66,326 – – 65,603 65,603 – –

Investment securities – Debt

securities and other eligible

bills

2,3

43,050 – – 43,050 30,633 – – 30,633

Derivative financial instruments

66,479 12,912 50,816 2,751 82,717 12,984 65,027 4,706

Accrued income 1,697 – – 1,697 1,846 – – 1,846

Assets held for sale

909 – – 909 866 – – 866

Other assets

20,435 – – 20,435 21,535 – – 21,535

Total balance sheet 562,909 144,636 50,816 367,457 543,249 136,256 65,027 341,966

Off-balance sheet

Undrawn Commitments 143,923 2,972 – 140,951 123,931 1,861 – 122,070

Financial Guarantees and other

equivalents 104,930 2,754 – 102,176 81,343 1,570 – 79,773

Total off-balance sheet 248,853 5,726 – 243,127 205,274 3,431 – 201,843

Total 811,762 150,362 50,816 610,584 748,523 139,687 65,027 543,809

1 Amounts are net of ECL provisions. An analysis of credit quality is set out in the credit quality analysis section on page 35. Further details of collateral held by client

segment and stage are set out in the collateral analysis section on page 44. The Group also has credit mitigation through Credit Default Swaps and Credit Linked

Notes as set out on page 47.

2 Excludes equity and other investments of $256 million (31 December 2024: $263million). Further details are set out in Note 12 Financial instruments.

3 The Group has credit insurance over $4.2 billion (31 December 2024: $4.03 billion) of other eligible bills.

4 Excludes equity and other investments of $322 million (31 December 2024: $1,366 million). Further details are set out in Note 12 Financial instruments.

5 The Group enters into master netting agreements, which in the event of default result in a single amount owed by or to the counterparty through netting the sum of

the positive and negative mark-to-market values of applicable derivative transactions.

6 Other assets include cash collateral, and acceptances, in addition to unsettled trades and other financial assets.

7 Excludes ECL provisions of $189 million (31 December 2024: $208 million) which are reported under Provisions for liabilities and charges.

8 Adjusted for over-collateralisation, which has been determined with reference to the drawn and undrawn component as this best reflects the effect on the

amountarising from expected credit losses. Loans and advances to customers collateral now re-presented between on and off -balance sheet as it also

includesguarantees.

9 The amount is after ECL provisions. Further details are set out in Note 20 Assets held for sale and associated liabilities.

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 31

Company

2025 2024

Maximum

exposure

$million

Credit risk management

Net Exposure

$million

Maximum

exposure

$million

Credit risk management

Net exposure

$million

Collateral

$million

Master netting

agreements

$million

Collateral

$million

Master netting

agreements

$million

On-balance sheet

Cash and balances at central banks 52,348 – – 52,348 45,233 – – 45,233

Loans and advances to banks

11,108 855 – 10,253 11,755 1,423 – 10,332

of which – reverse repurchase

agreements and other similar

secured lending

855 855 – – 1,423 1,423 – –

Loans and advances to customers

80,091 21,919 – 58,172 77,597 24,378 – 53,219

of which – reverse repurchase

agreements and other similar

secured lending

6,865 6,865 – – 9,041 9,041 – –

Investment securities – Debt

securities and other eligible bills

79,448 – – 79,448 81,855 – – 81,855

Fair value through profit or loss

99,705 60,950 – 38,755 87,122 62,141 – 24,981

Loans and advances to banks 2,337 – – 2,337 1,880 – – 1,880

Loans and advances to

customers

6,615 – – 6,615 3,276 – – 3,276

Reverse repurchase agreements

and other similar lending

60,950 60,950 – – 62,141 62,141 – –

Investment securities – Debt

securities and other eligible bills

29,803 – – 29,803 19,825 – – 19,825

Derivative financial instruments

66,631 12,063 52,411 2,157 82,844 11,788 67,030 4,026

Accrued income 1,127 – – 1,127 1,256 – – 1,256

Assets held for sale

227 – – 227 474 – – 474

Other assets

14,577 – – 14,577 17,587 – – 17,587

Total balance sheet 405,262 95,787 52,411 257,064 405,723 99,730 67,030 238,963

Off-balance sheet

Undrawn Commitments 80,006 1,957 – 78,049 69,293 1,033 – 68,260

Financial Guarantees and other

equivalents

91,342 2,231 – 89,111 69,038 1,215 – 67,823

Total off-balance sheet 171,348 4,188 – 167,160 138,331 2,248 – 136,083

Total

576,610 99,975 52,411 424,224 544,054 101,978 67,030 375,046

1 Amounts are net of ECL provisions. An analysis of credit quality is set out in the credit quality analysis section page 35. Further details of collateral held by client.

Segment and stage are set out in the collateral analysis section page 44. The Group also has credit mitigation through Credit Linked Notes as set out on page 47.

2 Excludes equity and other investments of $236 million (31 December 2024: $246 million). Further details are set out in Note 12 Financial instruments.

3 Excludes equity and other investments of $189 million (31 December 2024: $1,227 million). Further details are set out in Note 12 Financial instruments.

4 The Group enters into master netting agreements, which in the event of default result in a single amount owed by or to the counterparty through netting the sum of

the positive and negative mark-to-market values of applicable derivative transactions.

5 Other assets include cash collateral, and acceptances, in addition to unsettled trades and other financial assets.

6 Excludes ECL provisions of $153 million (31 December 2024: $148 million) which are reported under Provisions for liabilities and charges.

7 Adjusted for over-collateralisation, which has been determined with reference to the drawn and undrawn component as this best reflects the effect on the

amountarising from expected credit losses. Loans and advances to customers collateral now re-presented between on and off -balance sheet as it also

includesguarantees.

8 The amount is after ECL provisions. Further details are set out in Note 20 Assets held for sale and associated liabilities.

9 Excludes ‘Amounts due from subsidiary undertakings and other related parties’ of $11,538 million (31 December 2024: $10,066 million). The amounts are held within

stage 1 and rated as ‘strong’ and is net of an expected credit loss of $3.0 million (31 December 2024: $2.4 million).

10 In prior reporting periods, the Company excluded disclosure of certain guarantees provided to custody clients of subsidiaries. This omission has been identified and

corrected in the current period. These guarantees provide protection against negligence and non-payment of damages associated with such negligence in the

provision of custody services. The maximum exposure to loss under these guarantees was $86.3 billion (31 December 2024: $88.8 billion). Based on current

information, the Company does not expect any material losses to arise from these guarantees. These amounts are not included in the table above.

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 32

Analysis of financial instrument by stage (audited)

The table below presents the gross and credit impairment balances by stage for amortised cost and FVOCI financial

instruments as at 31 December 2025.

Read more about Summary of Credit Risk Performance on page 30

Group

2025

Stage 1 Stage 2 Stage 3 Total

Gross

balance

$million

Total credit

impairment

$million

Net

carrying

value

$million

Gross

balance

$million

Total credit

impairment

$million

Net

carrying

value

$million

Gross

balance

$million

Total credit

impairment

$million

Net

carrying

value

$million

Gross

balance

$million

Total credit

impairment

$million

Net

carrying

value

$million

Cash and balances

atcentral banks 63,717 – 63,717 463 (1) 462 773 (9) 764 64,953 (10) 64,943

Loans and advances to

banks (amortised cost) 24,521 (3) 24,518 216 – 216 41 (4) 37 24,778 (7) 24,771

Loans and advances to

customers (amortised cost) 151,235 (292) 150,943 6,793 (190) 6,603 4,027 (2,319) 1,708 162,055 (2,801) 159,254

Debt securities and other

eligible bills

102,189 (43) 1,198 (5) 296 (5) 103,683 (53)

Amortised cost 33,660 (16) 33,644 243 (2) 241 26 – 26 33,929 (18) 33,911

FVOCI

68,529 (27) 955 (3) 270 (5) 69,754 (35) –

Accrued income

(amortisedcost)

1,697 – 1,697 – – – – – – 1,697 – 1,697

Assets held for sale 920 (22) 898 8 – 8 8 (5) 3 936 (27) 909

Other assets

20,435 – 20,435 – – – 3 (3) – 20,438 (3) 20,435

Undrawn commitments

140,508 (30) 3,411 (24) 4 (2) 143,923 (56)

Financial guarantees, trade

credits and irrevocable

letter of credits

103,099 (21) 1,240 (14) 591 (98) 104,930 (133)

Total 608,321 (411) 13,329 (234) 5,743 (2,445) 627,393 (3,090)

2024

Cash and balances

atcentral banks 55,815 – 55,815 432 (4) 428 426 (4) 422 56,673 (8) 56,665

Loans and advances to

banks (amortised cost) 22,556 (5) 22,551 313 (1) 312 80 (2) 78 22,949 (8) 22,941

Loans and advances to

customers (amortised cost) 149,751 (254) 149,497 7,292 (193) 7,099 4,098 (2,452) 1,646 161,141 (2,899) 158,242

Debt securities and other

eligible bills

94,480 (20) 1,612 (4) 103 (2) 96,195 (26)

Amortised cost 36,867 (14) 36,853 473 (2) 471 42 – 42 37,382 (16) 37,366

FVOCI

57,613 (6) 1,139 (2) 61 (2) 58,813 (10)

Accrued income

(amortisedcost)

1,846 – 1,846 – – – – – – 1,846 – 1,846

Assets held for sale 822 (7) 815 38 – 38 58 (45) 13 918 (52) 866

Other assets

21,535 – 21,535 – – – 3 (3) – 21,538 (3) 21,535

Undrawn commitments

120,578 (25) 3,346 (33) 7 (1) 123,931 (59)

Financial guarantees, trade

credits and irrevocable

letter of credits

78,996 (13) 1,744 (7) 603 (129) 81,343 (149)

Total 546,379 (324) 14,777 (242) 5,378 (2,638) 566,534 (3,204)

1 Gross carrying amount for off-balance sheet refers to notional values.

2 These instruments are held at fair value on the balance sheet. The ECL provision in respect of debt securities measured at FVOCI is held within the OCI reserve.

3 These are off-balance sheet instruments. Only the ECL is recorded on-balance sheet as a liability and therefore there is no “net carrying amount”. ECL allowances

on off-balance sheet instruments are held as liability provisions to the extent that the drawn and undrawn components of loan exposures can be separately

identified. Otherwise they will be reported against the drawn component.

4 Stage 1 ECL is not material.

5 Stage 3 gross includes $278 million (2024: $59 million) originated credit-impaired debt securities with impairment of $5 million (2024: $Nil).

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 33

Company

2025

Stage 1 Stage 2 Stage 3 Total

Gross

balance

$million

Total credit

impairment

$million

Net

carrying

value

$million

Gross

balance

$million

Total credit

impairment

$million

Net

carrying

value

$million

Gross

balance

$million

Total credit

impairment

$million

Net

carrying

value

$million

Gross

balance

$million

Total credit

impairment

$million

Net

carrying

value

$million

Cash and balances

atcentral banks 52,226 – 52,226 122 – 122 – – – 52,348 – 52,348

Loans and advances to

banks (amortised cost) 10,965 (2) 10,963 145 – 145 1 (1) – 11,111 (3) 11,108

Loans and advances to

customers (amortised cost) 75,255 (124) 75,131 3,817 (112) 3,705 2,697 (1,442) 1,255 81,769 (1,678) 80,091

Debt securities and other

eligible bills 79,073 (34) 390 (2) – – 79,463 (36)

Amortised cost 31,665 (14) 31,651 97 (1) 96 – – – 31,762 (15) 31,747

FVOCI

47,408 (20) 293 (1) – – 47,701 (21) –

Accrued income

(amortisedcost)

1,127 1,127 – – 1,127 – 1,127

Assets held for sale 239 (12) 227 – – – – – – 239 (12) 227

Other assets

14,577 – 14,577 – – – – – – 14,577 – 14,577

Undrawn commitments

77,412 (18) 2,592 (16) 2 (1) 80,006 (35)

Financial guarantees, trade

credits and irrevocable

letter of credits

90,280 (17) 541 (12) 521 (89) 91,342 (118)

Total

401,154 (207) 7,607 (142) 3,221 (1,533) 411,982 (1,882)

2024

Cash and balances

atcentral banks 45,093 – 45,093 140 – 140 – – – 45,233 – 45,233

Loans and advances to

banks (amortised cost) 11,545 (1) 11,544 209 (1) 208 3 – 3 11,757 (2) 11,755

Loans and advances to

customers (amortised cost) 72,697 (116) 72,581 4,010 (99) 3,911 2,685 (1,580) 1,105 79,392 (1,795) 77,597

Debt securities and other

eligible bills 81,618 (16) 244 (1) – – 81,862 (17)

Amortised cost 35,212 (7) 35,205 – – – – – – 35,212 (7) 35,205

FVOCI

46,406 (9) 244 (1) – – 46,650 (10)

Accrued income

(amortisedcost)

1,256 1,256 – – 1,256 – 1,256

Assets held for sale 479 (5) 474 – – – – – – 479 (5) 474

Other assets

17,587 – 17,587 – – – – – – 17,587 – 17,587

Undrawn commitments

66,520 (15) 2,770 (17) 3 – 69,293 (32)

Financial guarantees, trade

credits and irrevocable

letter of credits

3,6

67,538 (10) 1,059 (4) 441 (102) 69,038 (116)

Total

364,333 (163) 8,432 (122) 3,132 (1,682) 375,897 (1,967)

1 Gross carrying amount for off-balance sheet refers to notional values.

2 These instruments are held at fair value on the balance sheet. The ECL provision in respect of debt securities measured at FVOCI is held within the OCI reserve.

3 These are off-balance sheet instruments. Only the ECL is recorded on-balance sheet as a liability and therefore there is no “net carrying amount”. ECL allowances

on off-balance sheet instruments are held as liability provisions to the extent that the drawn and undrawn components of loan exposures can be separately

identified. Otherwise they will be reported against the drawn component.

4 Stage 1 ECL is not material.

5 Excludes ‘Amounts due from subsidiary undertakings and other related parties’ of $11,538 million (31 December 2024: $10,066 million). The amounts are held within

stage 1 and rated as ‘strong’ and is net of an expected credit loss of $3.0 million (31 December 2024: $2.4 million).

6 In prior reporting periods, the Company excluded disclosure of certain guarantees provided to custody clients of subsidiaries. This omission has been identified and

corrected in the current period. These guarantees provide protection against negligence and non-payment of damages associated with such negligence in the

provision of custody services. The maximum exposure to loss under these guarantees was $86.3 billion (31 December 2024: $88.8 billion). Based on current

information, the Company does not expect any material losses to arise from these guarantees. These amounts are not included in the table above.

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 34

Credit quality analysis (audited)

Credit quality by client segment

For CIB, exposures are analysed by credit grade (CG), which plays a central role in the quality assessment and monitoring of risk.

All loans are assigned a CG, which is reviewed periodically and amended in light of changes in the borrower’s circumstances or

behaviour. CGs 1 to 12 are assigned to stage 1 and stage 2 (performing) clients or accounts, while CGs 13 and 14 are assigned to

stage 3 (credit-impaired) clients. The mapping of credit quality is as follows.

Mapping of credit quality

The Group uses the following internal risk mapping to determine the credit quality for loans.

Credit risk management Private Banking

Wealth & Retail Banking

Maximum exposure

$million

Collateral

$million

Master netting

agreements

$million

Net exposure

$million

Net exposure

$million

Strong 1A to 5B AAA/AA+ to

BBB-/BB+

0 to 0.425 Class I and Class IV Current loans (no past

dues nor impaired)

Satisfactory 6A to 11C BB to CCC+

0.426 to 15.75 Class II and Class III Loans past due till 29 days

Higher risk Grade 12 CCC+/C 15.751 to 99.999 Stressed Assets Group

(SAG) Managed

Past due loans 30 days

and over till 90 days

1 For Private Banking, classes of risk represent the type of collateral held. Class I represents facilities with liquid collateral, such as cash and marketable securities.

Class II represents unsecured/partially secured facilities and those with illiquid collateral, such as equity in private enterprises. Class III represents facilities with

residential or Commercial real estate collateral. Class IV covers margin trading facilities.

2 Banks’ rating: AAA/AA+ to BB+/BB. Sovereigns’ rating: AAA to BB+.

3 Banks’ rating: BB to “CCC+ to C”. Sovereigns’ rating: BB+/BB to B-/CCC+.

4 Wealth & Retail Banking excludes Private Banking. Medium enterprise clients within Business Banking are managed using the same internal credit grades as CIB.

The table below sets out the gross loans and advances held at amortised cost, ECL provisions and ECL coverage by business

segment and stage. ECL coverage represents the ECL reported for each segment and stage as a proportion of the gross loan

balance for each segment and stage.

Read more about Summary of Credit Risk Performance on page 30

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 35

Loans and advances by client segment (audited)

Group

Amortised cost

2025

Banks

$million

Customers

Undrawn

commitments

$million

Financial

Guarantees

$million

Corporate &

Investment

Banking

$million

Wealth &

Retail Banking

$million

Ventures

$million

Central &

other items

$million

Customer

Total

$million

Stage 1 24,521 84,810 51,641 902 13,882 151,235 140,508 103,099

• Strong 16,991 58,892 47,206 896 13,126 120,120 126,631 60,779

• Satisfactory 7,530 25,918 4,435 6 756 31,115 13,877 42,320

Stage 2 216 5,609 1,179 5 – 6,793 3,411 1,240

• Strong 41 1,459 848 – – 2,307 1,078 299

• Satisfactory 172 3,488 68 – – 3,556 2,165 873

• Higher risk 3 662 263 5 – 930 168 68

Of which (stage 2):

• Less than 30 days past due – 86 68 – – 154 – –

• More than 30 days past due 3 69 263 5 – 337 – –

Stage 3, credit-impaired financial

assets 41 2,842 1,170 13 2 4,027 4 591

Gross balance¹ 24,778 93,261 53,990 920 13,884 162,055 143,923 104,930

Stage 1 (3) (72) (186) (23) (11) (292) (30) (21)

• Strong (1) (30) (158) (21) (11) (220) (14) (9)

• Satisfactory (2) (42) (28) (2) – (72) (16) (12)

Stage 2 – (137) (51) (2) – (190) (24) (14)

• Strong – (3) (34) – – (37) (1) –

• Satisfactory – (123) (4) – – (127) (15) (9)

• Higher risk – (11) (13) (2) – (26) (8) (5)

Of which (stage 2):

• Less than 30 days past due – (9) (4) – – (13) – –

• More than 30 days past due – – (13) (2) – (15) – –

Stage 3, credit-impaired financial

assets (4) (1,653) (658) (6) (2) (2,319) (2) (98)

Total credit impairment (7) (1,862) (895) (31) (13) (2,801) (56) (133)

Net carrying value 24,771 91,399 53,095 889 13,871 159,254

Stage 1 0.0% 0.1% 0.4% 2.5% 0.1% 0.2% 0.0% 0.0%

• Strong 0.0% 0.1% 0.3% 2.3% 0.1% 0.2% 0.0% 0.0%

• Satisfactory 0.0% 0.2% 0.6% 33.3% 0.0% 0.2% 0.1% 0.0%

Stage 2 0.0% 2.4% 4.3% 40.0% 0.0% 2.8% 0.7% 1.1%

• Strong 0.0% 0.2% 4.0% 0.0% 0.0% 1.6% 0.1% 0.0%

• Satisfactory 0.0% 3.5% 5.9% 0.0% 0.0% 3.6% 0.7% 1.0%

• Higher risk 0.0% 1.7% 4.9% 40.0% 0.0% 2.8% 4.8% 7.4%

Of which (stage 2):

• Less than 30 days past due 0.0% 10.5% 5.9% 0.0% 0.0% 8.4% 0.0% 0.0%

• More than 30 days past due 0.0% 0.0% 4.9% 40.0% 0.0% 4.5% 0.0% 0.0%

Stage 3, credit-impaired financial

assets (S3) 9.8% 58.2% 56.2% 46.2% 100.0% 57.6% 50.0% 16.6%

• Stage 3 Collateral – 90 437 – – 527 – 56

Fair value through profit or loss

Performing 31,769 45,831 – – – 45,831 – –

• Strong 23,502 26,951 – – – 26,951 – –

• Satisfactory 8,267 18,880 – – – 18,880 – –

• Higher risk – – – – – – – –

Impaired (CG13-14) 92

14 – – – 14 – –

Gross balance (FVTPL)

31,861 45,845 – – – 45,845 – –

Net carrying value (incl FVTPL) 56,632 137,244 53,095 889 13,871 205,099 – –

1 Loans and advances includes reverse repurchase agreements and other similar secured lending of $7,350 million under Customers and of $3,698 million under

Banks, held at amortised cost.

2 Loans and advances includes reverse repurchase agreements and other similar secured lending of $36,900 million under Customers and of $29,426 million under

Banks, held at fair value through profit or loss.

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 36

Amortised cost

2024

Banks

$million

Customers

Undrawn

commitments

$million

Financial

Guarantees

$million

Corporate &

Investment

Banking

$million

Wealth &

Retail Banking

$million

Ventures

$million

Central &

other items

$million

Customer

Total

$million

Stage 1 22,556 83,297 45,743 584 20,127 149,751 120,578 78,996

• Strong 14,002 59,798 41,697 576 19,750 121,821 109,269 50,039

• Satisfactory 8,554 23,499 4,046 8 377 27,930 11,309 28,957

Stage 2 313 6,251 1,001 5 35 7,292 3,346 1,744

• Strong 7 896 684 – – 1,580 851 371

• Satisfactory 121 4,683 81 – – 4,764 2,341 1,210

• Higher risk 185 672 236 5 35 948 154 163

Of which (stage 2):

• Less than 30 days past due – 52 81 – – 133 – –

• More than 30 days past due 2 5 236 5 – 246 – –

Stage 3, credit-impaired financial

assets 80 2,877 1,117 6 98 4,098 7 603

Gross balance¹ 22,949 92,425 47,861 595 20,260 161,141 123,931 81,343

Stage 1 (5) (69) (174) (11) – (254) (25) (13)

• Strong (4) (26) (133) (10) – (169) (14) (5)

• Satisfactory (1) (43) (41) (1) – (85) (11) (8)

Stage 2 (1) (134) (55) (4) – (193) (33) (7)

• Strong – (4) (17) – – (21) (2) –

• Satisfactory (1) (95) (7) – – (102) (22) (4)

• Higher risk – (35) (31) (4) – (70) (9) (3)

Of which (stage 2):

• Less than 30 days past due – (1) (7) – – (8) – –

• More than 30 days past due – – (31) (4) – (35) – –

Stage 3, credit-impaired financial

assets (2) (1,830) (616) (6) – (2,452) (1) (129)

Total credit impairment (8) (2,033) (845) (21) – (2,899) (59) (149)

Net carrying value 22,941 90,392 47,016 574 20,260 158,242 – –

Stage 1 0.0% 0.1% 0.4% 1.9% 0.0% 0.2% 0.0% 0.0%

• Strong 0.0% 0.0% 0.3% 1.7% 0.0% 0.1% 0.0% 0.0%

• Satisfactory 0.0% 0.2% 1.0% 12.5% 0.0% 0.3% 0.1% 0.0%

Stage 2 0.3% 2.1% 5.5% 80.0% 0.0% 2.6% 1.0% 0.4%

• Strong 0.0% 0.4% 2.5% 0.0% 0.0% 1.3% 0.2% 0.0%

• Satisfactory 0.8% 2.0% 8.6% 0.0% 0.0% 2.1% 0.9% 0.3%

• Higher risk 0.0% 5.2% 13.1% 80.0% 0.0% 7.4% 5.8% 1.8%

Of which (stage 2):

• Less than 30 days past due 0.0% 1.9% 8.6% 0.0% 0.0% 6.0% 0.0% 0.0%

• More than 30 days past due 0.0% 0.0% 13.1% 80.0% 0.0% 14.2% 0.0% 0.0%

Stage 3, credit-impaired financial

assets (S3) 2.5% 63.6% 55.1% 100.0% 0.0% 59.8% 14.3% 21.4%

• Stage 3 Collateral 1 169 412 – – 581 – 45

Fair value through profit or loss

Performing 29,725 41,897 – – – 41,897 – –

• Strong 23,890 24,589 – – – 24,589 – –

• Satisfactory 5,825 17,200 – – – 17,200 – –

• Higher risk 10 108 – – – 108 – –

Impaired (CG13-14) – 3 – – – 3 – –

Gross balance (FVTPL)

29,725 41,900 – – – 41,900 – –

Net carrying value (incl FVTPL) 52,666 132,292 47,016 574 20,260 200,142 – –

1 Loans and advances includes reverse repurchase agreements and other similar secured lending of $9,121 million under Customers and of $2,889 million under Banks,

held at amortised cost.

2 Loans and advances includes reverse repurchase agreements and other similar secured lending of $37,911 million under Customers and of $27,692 million under

Banks, held at fair value through profit and loss.

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 37

Loans and advances by client segment (audited)

Company

Amortised cost

2025

Banks

$million

Customers

Undrawn

commitments

$million

Financial

Guarantees

$million

Corporate &

Investment

Banking

$million

Wealth &

Retail Banking

$million

Central &

other items

$million

Customer

Total

$million

Stage 1 10,965 59,119 11,614 4,522 75,255 77,412 90,280

• Strong 7,577 42,374 9,417 3,865 55,656 66,991 50,505

• Satisfactory 3,388 16,745 2,197 657 19,599 10,421 39,775

Stage 2 145 3,481 336 – 3,817 2,592 541

• Strong 18 720 222 – 942 905 174

• Satisfactory 127 2,258 40 – 2,298 1,597 319

• Higher risk – 503 74 – 577 90 48

Of which (stage 2):

• Less than 30 days past due – 79 40 – 119 – –

• More than 30 days past due – 55 74 – 129 – –

Stage 3, credit-impaired financial assets 1 2,040 657 – 2,697 2 521

Gross balance¹ 11,111 64,640 12,607 4,522 81,769 80,006 91,342

Stage 1 (2) (40) (78) (6) (124) (18) (17)

• Strong (1) (14) (73) (6) (93) (5) (7)

• Satisfactory (1) (26) (5) – (31) (13) (10)

Stage 2 – (88) (24) – (112) (16) (12)

• Strong – (1) (16) – (17) – –

• Satisfactory – (87) (2) – (89) (11) (7)

• Higher risk – – (6) – (6) (5) (5)

Of which (stage 2):

• Less than 30 days past due – (3) (2) – (5) – –

• More than 30 days past due – – (6) – (6) – –

Stage 3, credit-impaired financial assets (1) (1,034) (408) – (1,442) (1) (89)

Total credit impairment (3) (1,162) (510) (6) (1,678) (35) (118)

Net carrying value 11,108 63,478 12,097 4,516 80,091

Stage 1 0.0% 0.1% 0.7% 0.1% 0.2% 0.0% 0.0%

• Strong 0.0% 0.0% 0.8% 0.2% 0.2% 0.0% 0.0%

• Satisfactory 0.0% 0.2% 0.2% 0.0% 0.2% 0.1% 0.0%

Stage 2 0.0% 2.5% 7.1% 0.0% 2.9% 0.6% 2.2%

• Strong 0.0% 0.1% 7.2% 0.0% 1.8% 0.0% 0.0%

• Satisfactory 0.0% 3.9% 5.0% 0.0% 3.9% 0.7% 2.2%

• Higher risk 0.0% 0.0% 8.1% 0.0% 1.0% 5.6% 10.4%

Of which (stage 2):

• Less than 30 days past due 0.0% 3.8% 5.0% 0.0% 4.2% 0.0% 0.0%

• More than 30 days past due 0.0% 0.0% 8.1% 0.0% 4.7% 0.0% 0.0%

Stage 3, credit-impaired financial assets (S3) 100.0% 50.7% 62.1% 0.0% 53.5% 50.0% 17.1%

• Stage 3 Collateral – 76 249 – 325 – 48

Fair value through profit or loss

Performing 28,358 41,543 – – 41,543 – –

• Strong 20,718 23,677 – – 23,677 – –

• Satisfactory 7,640 17,866 – – 17,866 – –

• Higher risk – – – – – – –

Impaired (CG13-14) – 1 – – 1 – –

Gross balance (FVTPL)

28,358 41,544 – – 41,544 – –

Net carrying value (incl FVTPL)

39,466 105,022 12,097 4,516 121,635 – –

1 Loans and advances include reverse repurchase agreements and other similar secured lending for $6,865 million under Customers and for $855 million under Banks,

held at amortised cost.

2 Loans and advances include reverse repurchase agreements and other similar secured lending for $34,929 million under Customers and for $26,021 million under

Banks, held at fair value through profit and loss.

3 Excludes ‘Amounts due from subsidiary undertakings and other related parties’ of $11,538 million. The amounts are held within stage 1 and rated as ‘strong’ at

31 December 2025 and is net of an expected credit loss of $3 million.

4 Excludes certain guarantees provided to custody clients of subsidiaries. These guarantees provide protection against negligence and non-payment of damages

associated with such negligence in the provision of custody services. The maximum exposure to loss under these guarantees was $86.3 billion Based on current

information, the Company does not expect any material losses are expected to arise from these guarantees. These amounts are not included in the table above.

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 38

Amortised cost

2024

Banks

$million

Customers

Undrawn

commitments

$million

Financial

Guarantees

$million

Corporate &

Investment

Banking

$million

Wealth &

Retail Banking

$million

Central &

other items

$million

Customer

Total

$million

Stage 1 11,545 60,503 11,380 814 72,697 66,520 67,538

• Strong 6,614 44,809 9,397 501 54,707 57,856 41,193

• Satisfactory 4,931 15,694 1,983 313 17,990 8,664 26,345

Stage 2 209 3,787 223 – 4,010 2,770 1,059

• Strong 3 367 99 – 466 539 250

• Satisfactory 118 3,074 38 – 3,112 2,152 744

• Higher risk 88 346 86 – 432 79 65

Of which (stage 2):

• Less than 30 days past due – 42 38 – 80 – –

• More than 30 days past due – – 86 – 86 – –

Stage 3, credit-impaired financial assets 3 2,005 680 – 2,685 3 441

Gross balance¹ 11,757 66,295 12,283 814 79,392 69,293 69,038

Stage 1 (1) (48) (68) – (116) (15) (10)

• Strong – (16) (59) – (75) (7) (3)

• Satisfactory (1) (32) (9) – (41) (8) (7)

Stage 2 (1) (68) (31) – (99) (17) (4)

• Strong – – (5) – (5) (2) –

• Satisfactory (1) (48) (2) – (50) (13) (2)

• Higher risk – (20) (24) – (44) (2) (2)

Of which (stage 2):

• Less than 30 days past due – – (2) – (2) – –

• More than 30 days past due – – (24) – (24) – –

Stage 3, credit-impaired financial assets – (1,175) (405) – (1,580) – (102)

Total credit impairment (2) (1,291) (504) – (1,795) (32) (116)

Net carrying value 11,755 65,004 11,779 814 77,597 – –

Stage 1 0.0% 0.1% 0.6% 0.0% 0.2% 0.0% 0.0%

• Strong 0.0% 0.0% 0.6% 0.0% 0.1% 0.0% 0.0%

• Satisfactory 0.0% 0.2% 0.5% 0.0% 0.2% 0.1% 0.0%

Stage 2 0.5% 1.8% 13.9% 0.0% 2.5% 0.6% 0.4%

• Strong 0.0% 0.0% 5.1% 0.0% 1.1% 0.4% 0.0%

• Satisfactory 0.8% 1.6% 5.3% 0.0% 1.6% 0.6% 0.3%

• Higher risk 0.0% 5.8% 27.9% 0.0% 10.2% 2.5% 3.1%

Of which (stage 2):

• Less than 30 days past due 0.0% 0.0% 5.3% 0.0% 2.5% 0.0% 0.0%

• More than 30 days past due 0.0% 0.0% 27.9% 0.0% 27.9% 0.0% 0.0%

Stage 3, credit-impaired financial assets (S3) 0.0% 58.6% 59.6% 0.0% 58.8% 0.0% 23.1%

• Stage 3 Collateral – 123 244 – 367 – 20

Fair value through profit or loss

Performing 26,846 40,449 – – 40,449 – –

• Strong 21,409 23,548 – – 23,548 – –

• Satisfactory 5,437 16,882 – – 16,882 – –

• Higher risk – 19 – – 19 – –

Impaired (CG13-14) – 2 – – 2 – –

Gross balance (FVTPL)

26,846 40,451 – – 40,451 – –

Net carrying value (incl FVTPL)

38,601 105,455 11,779 814 118,048 – –

1 Loans and advances include reverse repurchase agreements and other similar secured lending of $9,041 million under Customers and of $1,423 million under Banks,

held at amortised cost.

2 Loans and advances include reverse repurchase agreements and other similar secured lending of $37,175 million under Customers and of $24,966 million under

Banks, held at fair value through profit and loss.

3 Excludes ‘Amounts due from subsidiary undertakings and other related parties’ of $10,066 million. The amounts are held within stage 1 and rated as ‘strong’ at

31 December 2024 and is net of an expected credit loss of $2.4 million.

4 In prior reporting periods, the Company excluded disclosure of certain guarantees provided to custody clients of subsidiaries. This omission has been identified and

corrected in current period. These guarantees provide protection against negligence and non-payment of damages associated with such negligence in the

provision of custody services. The maximum exposure to loss under these guarantees was $88.8 billion. Based on current information, the Company does not expect

any material losses to arise from these guarantees. These amounts are not included in the table above.

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 39

Movement in gross exposures and credit

impairment for loans and advances, debt

securities, undrawn commitments and financial

guarantees (audited)

The tables overleaf set out the movement in gross exposures

and credit impairment by stage in respect of amortised cost

loans to banks and customers, undrawn commitments,

financial guarantees and debt securities classified at

amortised cost and FVOCI. The tables are presented for the

Group and separately for CIB and WRB (which also includes a

separate presentation for secured and unsecured exposures).

Methodology

The movement lines within the tables are an aggregation of

monthly movements over the year and will therefore reflect

the accumulation of multiple trades during the year. The

credit impairment charge in the income statement comprises

the amounts within the boxes in the table below less

recoveries of amounts previously written off. Discount unwind

is reported in net interest income and related to stage 3

financial instruments only.

The approach for determining the key line items in the tables

is set out below.

• Transfers – transfers between stages are deemed

tooccurat the beginning of a month based on prior

month closing balances.

• Net remeasurement from stage changes – the

remeasurement of credit impairment provisions arising

from a change in stage is reported within the stage that

the assets are transferred to. For example, assets

transferred into stage 2 are remeasured from a 12 month

to a lifetime expected credit loss, with the effect of

remeasurement reported in stage 2. For stage 3, this

represents the initial remeasurement from specific

provisions recognised on individual assets transferred into

stage 3 in the year.

• Net changes in exposures – new business written less

repayments in the year. Within stage 1, new business

written will attract up to 12 months of expected credit loss

charges. Repayments of non-amortising loans (primarily

within CIB) will have low amounts of expected credit loss

provisions attributed to them, due to the release of

provisions over the term to maturity. In stages 2 and 3, the

net change in exposures reflects repayments although

stage 2 may include new facilities where clients are on

non-purely precautionary early alert, or are CG 12.

• Changes in risk parameters – for stages 1 and 2, this

reflects changes in the PD, LGD and EAD of assets during

the year, which includes the impact of releasing provisions

over the term to maturity. It also includes the effect of

changes in forecasts of macroeconomic variables during

the year and movements in management overlays. In

stage 3, this line represents additional specific provisions

recognised on exposures held within stage 3.

• Interest due but not paid – change in contractual

amountof interest due in stage 3 financial instruments

butnot paid, being the net of accruals, repayments

andwrite-offs, together with the corresponding change

incredit impairment.

Changes to ECL models, which incorporates changes to

model approaches and methodologies, is not reported as a

separate line item as it has an impact over a number of lines

and stages.

Movements during the year

Stage 1 gross exposures increased by $55.2 billion to

$521.6 billion (31 December 2024: $466.4 billion). CIB exposure

increased due to higher exposures in financial guarantees in

the financing, insurance and non-banking sector. WRB

exposures increased, driven by higher demand for mortgage

and secured wealth products in Singapore.

Total stage 1 provisions increased by $72 million to

$389 million (31 December 2024: $317 million). CIB provisions

increased due to higher management overlays and portfolio

movements. WRB provisions increased due to increased level

of provisions on credit cards and personal loans and

unsecured lending.

Stage 2 gross exposures decreased by $1.4 billion to

$12.9 billion (31 December 2024: $14.3 billion), mainly driven by

the financing, insurance and non-banking sector.

Stage 2 provisions decreased by $4 million to $233 million

(31 December 2024: $237 million) as a result of a strategic

pivot to affluent clients and improvements from credit

remediation actions in WRB.

Stage 3 gross exposures increased by $0.1 billion to $5.0 billion

(31 December 2024: $4.9 billion), driven by the increase in

personal loans and other unsecured lending in WRB. There

was an increase of $0.2 billion in debt securities classified as

POCI to $0.3 billion (31 December 2024: $0.1 billion) due to

higher holdings of treasury bills in one defaulted sovereign.

Stage 3 provisions decreased by $0.2 billion to $2.4 billion

(31 December 2024: $2.6 billion) due to repayments and

write-offs in CIB.

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 40

All segments – Group (audited)

Amortised cost and FVOCI

Stage 1 Stage 2 Stage 3

Total

Gross

balance

$million

Total credit

impairment

$million

Net

$million

Gross

balance

$million

Total credit

impairment

$million

Net

$million

Gross

balance

$million

Total credit

impairment

$million

Net

$million

Gross

balance

$million

Total credit

impairment

$million

Net

$million

As at 1 January 2024 439,826 (255) 439,571 17,181 (276) 16,905 6,090 (3,197) 2,893 463,097 (3,728) 459,369

Transfers to stage 1 10,616 (351) 10,265 (10,609) 351 (10,258) (7) – (7) – – –

Transfers to stage 2 (21,414) 78 (21,336) 21,836 (103) 21,733 (422) 25 (397) – – –

Transfers to stage 3 (1,531) 62 (1,469) 538 44 582 993 (106) 887 – – –

Net change in

exposures 48,007 (169) 47,838 (12,337) 25 (12,312) (1,023) 578 (445) 34,647 434 35,081

Net remeasurement

from stage changes – 33 33 – (118) (118) – (94) (94) – (179) (179)

Changes in models – – – – – – – – – – – –

Changes in risk

parameters – 69 69 – (42) (42) – (467) (467) – (440) (440)

Derecognised – – – – – – – – – – – –

Write-offs – – – – – – (687) 687 – (687) 687 –

Interest due but unpaid – – – – – – (132) 132 – (132) 132 –

Discount unwind – – – – – – – 106 106 – 106 106

Exchange translation

differences and other

movements¹ (9,143) 216 (8,927) (2,302) (118) (2,420) 79 (250) (171) (11,366) (152) (11,518)

As at 31 December

2024² 466,361 (317) 466,044 14,307 (237) 14,070 4,891 (2,586) 2,305 485,559 (3,140) 482,419

Income statement ECL

(charge)/release

(67) (135) 17 (185)

Recoveries of amounts

previously writtenoff – – 167 167

Total credit impairment

(charge)/release (67) (135) 184 (18)

As at 1 January 2025 466,361 (317) 466,044 14,307 (237) 14,070 4,891 (2,586) 2,305 485,559 (3,140) 482,419

Transfers to stage 1 11,669 (274) 11,395 (11,667) 274 (11,393) (2) – (2) – – –

Transfers to stage 2 (26,950) 67 (26,883) 27,307 (86) 27,221 (357) 19 (338) – – –

Transfers to stage 3 (130) – (130) (1,504) 124 (1,380) 1,634 (124) 1,510 – – –

Net change in

exposures 57,306 (169) 57,137 (13,553) (21) (13,574) (1,002) 444 (558) 42,751 254 43,005

Net remeasurement

from stage changes – 39 39 – (66) (66) – (106) (106) – (133) (133)

Changes in models – – – – – – – – – – – –

Changes in risk

parameters – 112 112 – (84) (84) – (604) (604) – (576) (576)

Write-offs – – – – – – (497) 497 – (497) 497 –

Interest due but unpaid – – – – – – (128) 128 – (128) 128 –

Discount unwind – – – – – – – 81 81 – 81 81

Exchange translation

differences and other

movements¹ 13,296 153

13,449 (2,032) (137) (2,169) 420 (177) 243 11,684 (161) 11,523

As at 31 December

2025² 521,552 (389) 521,163 12,858 (233) 12,625 4,959 (2,428) 2,531 539,369 (3,050) 536,319

Income statement ECL

(charge)/release

(18) (171) (266) (455)

Recoveries of amounts

previously written off – – 211 211

Total credit impairment

(charge)/release (18) (171) (55) (244)

1 Includes fair value adjustments and amortisation on debt securities.

2 Excludes Cash and balances at central banks, Accrued income, Assets held for sale and Other assets gross balance of $88,024 million (31 December 2024:

$80,975 million) and total credit impairment of $40 million (31 December 2024: $63 million).

3 Does not include charge relating to Other assets of $4 million (31 December 2024: release of $3 million).

4 Stage 3 gross includes $278 million (31 December 2024: $59 million) and ECL $5 million (31 December 2024: $Nil) originated credit-impaired debt securities

5 The gross balance includes the notional amount of off balance sheet instruments.

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 41

All segments – Company (audited)

Amortised cost and FVOCI

Stage 1 Stage 2 Stage 3 Total

Gross

balance

$million

Total credit

impairment

$million

Net

$million

Gross

balance

$million

Total credit

impairment

$million

Net

$million

Gross

balance

$million

Total credit

impairment

$million

Net

$million

Gross

balance

$million

Total credit

impairment

$million

Net

$million

As at 1 January 2024 284,671 (132) 284,539 10,316 (107) 10,209 4,357 (2,276) 2,081 299,344 (2,515) 296,829

Transfers to stage 1 7,448 (173) 7,275 (7,445) 173 (7,272) (3) – (3) – – –

Transfers to stage 2 (14,259) 35 (14,224) 14,573 (52) 14,521 (314) 17 (297) – – –

Transfers to stage 3 (187) (4) (191) (270) 48 (222) 457 (44) 413 – – –

Net change in

exposures 29,361 (64) 29,297 (7,981) (2) (7,983) (822) 398 (424) 20,558 332 20,890

Net remeasurement

from stage changes – 7 7 – (21) (21) – (19) (19) – (33) (33)

Changes in risk

parameters – 31 31 – 29 29 – (304) (304) – (244) (244)

Write-offs – – – – – – (422) 422 – (422) 422 –

Interest due but unpaid – – – – – – (145) 145 – (145) 145 –

Discount unwind – – – – – – – 51 51 – 51 51

Exchange translation

differences and other

movements¹ (7,116) 143 (6,973) (901) (191) (1,092) 24 (72) (48) (7,993) (120) (8,113)

As at 31 December

2024² 299,918 (157) 299,761 8,292 (123) 8,169 3,132 (1,682) 1,450 311,342 (1,962) 309,380

Income statement ECL

(charge)/release

(26) 6 75 55

Recoveries of amounts

previously written off – – 60 60

Total credit impairment

(charge)/release (26) 6 135 115

As at 1 January 2025 299,918 (157) 299,761 8,292 (123) 8,169 3,132 (1,682) 1,450 311,342 (1,962) 309,380

Transfers to stage 1 7,296 (136) 7,160 (7,294) 136 (7,158) (2) – (2) – – –

Transfers to stage 2 (17,350) 22 (17,328) 17,634 (35) 17,599 (284) 13 (271) – – –

Transfers to stage 3 (106) – (106) (974) 62 (912) 1,080 (62) 1,018 – – –

Net change in

exposures 38,911 (61) 38,850 (8,551) (39) (8,590) (754) 273 (481) 29,606 173 29,779

Net remeasurement

from stage changes – 2 2 – (24) (24) – (79) (79) – (101) (101)

Changes in risk

parameters – 41 41 – (32) (32) – (261) (261) – (252) (252)

Write-offs – – – – – – (207) 207 – (207) 207 –

Interest due but unpaid – – – – – – 3 (3) – 3 (3) –

Discount unwind – – – – – – – 57 57 – 57 57

Exchange translation

differences and other

movements¹ 4,316 94 4,410 (1,622) (87) (1,709) 253 4 257 2,947 11 2,958

As at 31 December

2025² 332,985 (195) 332,790 7,485 (142) 7,343 3,221 (1,533) 1,688 343,691 (1,870) 341,821

Income statement ECL

(charge)/release

(18) (95) (67) (180)

Recoveries of amounts

previously written off – – 92 92

Total credit impairment

(charge)/release (18)

(95) 25 (88)

1 Includes fair value adjustments and amortisation on debt securities.

2 Excludes Cash and balances at central banks, Accrued income, Assets held for Sale and Other assets gross balance of $68,291 million (31 December 2024:

$64,555 Million) and total credit impairment of $12 million (31 December 2024: $5 million). Also excluded Amounts due from subsidiary undertakings and other

related parties of $11,538 million (31 December 2024: $10,066 million). The amounts are held within stage 1 and is net of an expected credit loss of $3.0 million

(31 December 2024: $2.4 million). In prior reporting periods, the Company excluded disclosure of certain guarantees provided to custody clients of subsidiaries. This

omission has been identified and corrected in the current period. These guarantees provide protection against negligence and non payment of damages

associated with such negligence in the provision of custody services. The maximum exposure to loss under these guarantees was $86.3 billion (31 December 2024:

$88.8 billion). Based on current information, the Company does not expect any material losses to arise from these guarantees. These amounts are not included in

the table above.

3 Does not include charge relating to Other assets of $Nil (31 December 2024: $2 million).

4 The gross balance includes the notional amount of off balance sheet instruments.

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 42

Credit impairment charge (audited)

The table below analyses credit impairment charges or releases of the ongoing business portfolio and restructuring business

portfolio for the year ended 31 December 2025.

Read more on Summary of Credit Risk Performance on page 30

2025 2024

Stage 1 & 2

$million

Stage 3

$million

Total

$million

Stage 1 & 2

$million

Stage 3

$million

Total

$million

Ongoing business portfolio

Corporate & Investment Banking 73 (170) (97) 18 (304) (286)

Wealth & Retail Banking 97 202 299 150 110 260

Ventures 7 26 33 13 12 25

Central & other items 16 (3) 13 18 (2) 16

Total credit impairment charge/(release) 193 55 248 199 (184) 15

1 Business segments have been re-presented in line with the RNS on Re-Presentation of Financial Information issued on 2 April 2025, with no change in total credit.

Impairment charge.

Problem credit management and provisioning (audited)

Forborne and other modified loans by client segment

A forborne loan arises when a concession has been made to the contractual terms of a loan in response to a customer’s

financial difficulties.

Net forborne loans increased by $41 million to $544 million (31 December 2024: $503 million) largely due to an increase in net

performing forborne loans in CIB. Net non-performing forborne loans decreased by $18 million to $443 million (31 December

2024: $461 million) with a $51 million reduction in CIB partly offset by a $33 million increase in WRB.

The table below presents loans with forbearance measures by segment.

Group

Amortised cost

2025 2024

Corporate &

Investment

Banking

$million

Wealth &

Retail Banking

$million

Total

$million

Corporate &

Investment

Banking

$million

Wealth &

Retail Banking

$million

Total

$million

Gross stage 1 and 2 forborne loans 89 20 109 17 26 43

Modification of terms and conditions

89 20 109 17 26 43

Impairment provisions (8) – (8) – (1) (1)

Modification of terms and conditions

(8) – (8) – (1) (1)

Net stage 1 and 2 forborne loans 81 20 101 17 25 42

Collateral – 11 11 – 25 25

Gross stage 3 forborne loans 835 191 1,026 960 148 1,108

Modification of terms and conditions

834 191 1,025 959 148 1,107

Refinancing

1 – 1 1 – 1

Impairment provisions (501) (82) (583) (575) (72) (647)

Modification of terms and conditions

(500) (82) (582) (574) (72) (646)

Refinancing

(1) – (1) (1) – (1)

Net stage 3 forborne loans 334 109 443 385 76 461

Collateral 26 21 47 74 53 127

Net carrying value of forborne loans 415 129 544 402 101 503

1 Modification of terms is any contractual change apart from refinancing, as a result of credit stress of the counterparty, i.e. interest reductions, loan

covenantwaivers.

2 Refinancing is a new contract to a lender in credit stress, such that they are refinanced and can pay other debt contracts that they were unable to honour.

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 43

Company

Amortised cost

2025 2024

Corporate &

Investment

Banking

$million

Wealth &

Retail Banking

$million

Total

$million

Corporate &

Investment

Banking

$million

Wealth &

Retail Banking

$million

Total

$million

Gross stage 1 and 2 forborne loans 50 11 61 – 15 15

Modification of terms and conditions

50 11 61 – 15 15

Impairment provisions (2) – (2) – – –

Modification of terms and conditions

(2) – (2) – – –

Net stage 1 and 2 forborne loans 48 11 59 – 15 15

Collateral – 9 9 – 14 14

Gross stage 3 forborne loans 593 3 596 701 7 708

Modification of terms and conditions

593 3 596 701 7 708

Refinancing

– – – – – –

Impairment provisions (309) (1) (310) (394) (3) (397)

Modification of terms and conditions

(309) (1) (310) (394) (3) (397)

Refinancing

– – – – – –

Net stage 3 forborne loans 284 2 286 307 4 311

Collateral 21 2 23 62 3 65

Net carrying value of forborne loans 332 13 345 307 19 326

1 Modification of terms is any contractual change apart from refinancing, as a result of credit stress of the counterparty, i.e. interest reductions, loan

covenantwaivers.

2 Refinancing is a new contract to a lender in credit stress, such that they are refinanced and can pay other debt contracts that they were unable to honour.

Credit risk mitigation

Potential credit losses from any given account, customer or portfolio are mitigated using a range of tools such as collateral,

netting arrangements, credit insurance and credit derivatives, taking into account expected volatility and guarantees.

The reliance that can be placed on these mitigants is carefully assessed in light of issues such as legal certainty and

enforceability, market valuation correlation and counterparty risk of the guarantor.

Collateral (audited)

A secured loan is one where the borrower pledges an asset as collateral of which the Group is able to take possession in the

event that the borrower defaults.

The collateral values in the table below (which covers loans and advances to banks and customers, excluding those held at fair

value through profit or loss) are adjusted where appropriate in accordance with our risk mitigation policy and for the effect of

over-collateralisation. The extent of over-collateralisation has been determined with reference to both the drawn and undrawn

components of exposure as this best reflects the effect of collateral and other credit enhancements on the amounts arising

from ECL. The value of collateral reflects management’s best estimate and is backtested against our prior experience.

Collateral held on loans and advances

The table below details collateral held against exposures, separately disclosing stage 2 and stage 3 exposure and

corresponding collateral.

Group

Amortised cost

2025

Net amount outstanding Collateral Net exposure

Total

$million

Stage 2

financial

assets

$million

Credit-

impaired

financial

assets (S3)

$million

Total

$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

116,170 5,688 1,226 21,424 1,493 90 94,746 4,195 1,136

Wealth & Retail Banking 53,095 1,128 512 39,761 681 437 13,334 447 75

Ventures 889 3 7 – – – 889 3 7

Central & other items 13,871 – – 4,213 – – 9,658 – –

Total

184,025 6,819 1,745 65,398 2,174 527 118,627 4,645 1,218

2024

Corporate & Investment Banking

113,333 6,429 1,125 26,379 2,398 170 86,954 4,031 955

Wealth & Retail Banking 47,016 946 501 31,210 688 412 15,806 258 89

Ventures 574 1 – – – – 574 1 –

Central & other items 20,260 35 98 80 35 – 20,180 – 98

Total

181,183 7,411 1,724 57,669 3,121 582 123,514 4,290 1,142

1 Includes loans and advances to banks.

2 Adjusted for over-collateralisation based on the drawn and undrawn components of exposures.

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 44

Company

Amortised cost

2025

Net amount outstanding Collateral Net exposure

Total

$million

Stage 2

financial

assets

$million

Credit-

impaired

financial

assets (S3)

$million

Total

$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

74,586 3,538 1,006 12,272 939 76 62,314 2,599 930

Wealth & Retail Banking 12,097 312 249 6,771 99 249 5,326 213 –

Central & other items 4,516 – – 3,731 – – 785 – –

Total

91,199 3,850 1,255 22,774 1,038 325 68,425 2,812 930

2024

Corporate & Investment Banking

76,759 3,927 833 19,149 1,542 123 57,610 2385 710

Wealth & Retail Banking 11,779 192 275 6,653 110 244 5,126 82 31

Central & other items 814 – – – – – 814 – –

Total

89,352 4,119 1,108 25,802 1,652 367 63,550 2,467 741

1 Includes loans and advances to banks.

2 Adjusted for over-collateralisation based on the drawn and undrawn components of exposures.

Collateral – Corporate & Investment Banking (audited)

Our underwriting standards encourage taking specific charges on assets and we consistently seek high-quality,

investment-grade collateral. 80 per cent (31 December 2024: 88 per cent) of tangible collateral excluding reverse

repurchaseagreements and financial guarantees held comprises physical assets or is property based, with the remainder

heldin cash. Overall collateral decreased by $5.0 billion to $21.4 billion (31 December 2024: $26.4 billion). Non-tangible

collateral,such as guarantees and standby letters of credit, is also held against corporate exposures, although the financial

effect of this type of collateral is less significant in terms of recoveries. However, this is considered when determining

theprobability of default and other credit-related factors. Collateral is also held against off balance sheet exposures,

includingundrawn commitments and trade-related instruments.

The following table provides an analysis of the types of collateral held against CIB loan exposures.

Corporate & Investment Banking

Amortised cost

Group Company

2025

$million

2024

$million

2025

$million

2024

$million

Maximum exposure 116,170 113,333 74,586 76,759

Property 3,454 3,459 1,925 1,752

Plant, machinery and other stock 710 904 436 636

Cash 1,811 1,031 1,000 835

Reverse repos 6,897 11,972 3,989 10,464

AAA 587 – – –

AA- to AA+ 233 897 57 742

A- to A+ 2,428 8,225 2,426 8,225

BBB- to BBB+ 1,229 981 598 564

Lower than BBB- – 95 – –

Unrated 2,420 1,774 908 933

Financial guarantees and insurance 5,677 5,564 4,083 4,187

Commodities 11 33 8 8

Ships and aircraft 2,864 3,416 831 1,267

Total value of collateral

1,2

21,424 26,379 12,272 19,149

Net exposure 94,746 86,954 62,314 57,610

1 Adjusted for over-collateralisation based on the drawn and undrawn components of exposures.

2 The group also has credit mitigation through Credit Default Swaps and Credit Linked Notes as set out on page 47.

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 45

Collateral – Wealth & Retail Banking (audited)

Group

In WRB, fully secured products increased by 2 per cent to 88 per cent of the total portfolio (31 December 2024: 86 per cent) due

to an increase in the mortgages portfolio and higher demand for secured wealth products.

The following table presents an analysis of loans to individuals by product; split between fully secured, partially secured

andunsecured:

Amortised cost

2025 2024

Fully

secured

$million

Partially

secured

$million

Unsecured

$million

Total

$million

Fully

secured

$million

Partially

secured

$million

Unsecured

$million

Total

$million

Maximum exposure 46,855 69 6,171 53,095 40,229 226 6,561 47,016

Loans to individuals

Mortgages 25,659 – – 25,659 23,001 – – 23,001

CCPL

– – 5,201 5,201 – – 5,930 5,930

Secured wealth products 20,495 – – 20,495 16,595 – – 16,595

Other

4,5

701 69 970 1,740 633 226 631 1,490

Total collateral

39,761 31,210

Net exposure

13,334 15,806

Percentage of total loans 88% 0% 12% 86% 0% 14%

1 Secured loans are fully secured if the fair value of the collateral is equal to or greater than the loan at the time of origination. All other secured loans are considered

to be partly secured.

2 Collateral values are adjusted where appropriate in accordance with our risk mitigation policy and for the effect of over-collateralisation.

3 Amounts net of ECL.

4 Includes Auto Loans previously presented separately. Prior period has been represented.

5 Prior period has been represented between CCPL and Other for $463 million under Fully secured to align product classification.

Company

In WRB, $9.6 billion which equates to 79 per cent of the portfolio is fully secured (31 December 2024: 80 per cent).

The following table presents an analysis of loans to individuals by product; split between fully secured, partially secured and

unsecured.

Amortised cost

2025 2024

Fully

secured

$million

Partially

secured

$million

Unsecured

$million

Total

$million

Fully

secured

$million

Partially

secured

$million

Unsecured

$million

Total

$million

Maximum exposure 9,601 47 2,449 12,097 9,375 167 2,237 11,779

Loans to individuals

Mortgages 5,082 – – 5,082 5,030 – – 5,030

CCPL

– – 1,822 1,822 – – 1,890 1,890

Secured wealth products 3,933 – – 3,933 3,860 – – 3,860

Other

4,5

586 47 627 1,260 485 167 347 999

Total collateral

6,771 6,653

Net exposure

5,326 5,126

Percentage of total loans 79% 0% 21% 80% 1% 19%

1 Secured loans are fully secured if the fair value of the collateral is equal to or greater than the loan at the time of origination. All other secured loans are considered

to be partly secured.

2 Collateral values are adjusted where appropriate in accordance with our risk mitigation policy and for the effect of over-collateralisation.

3 Amounts net of ECL.

4 Includes Auto loans previously presented separately. Prior period has been represented.

5 Prior period has been represented between CCPL and Other for $464 million under fully secured to align product classification.

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 46

Mortgage loan-to-value ratios by geography (audited)

Loan-to-value (LTV) ratios measure the ratio of the current mortgage outstanding to the current fair value of the properties on

which they are secured.

In mortgages, the value of property held as security significantly exceeds the value of mortgage loans. The average LTV of the

overall mortgage portfolio is low at 45.3 per cent (31 December 2024: 45.1 per cent). Singapore, which represents 62.6 per cent of

the mortgage portfolio as at 31 December 2025, has an average LTV of 42.7 per cent (31 December 2024: 42.5 per cent).

An analysis of LTV ratios by geography for the mortgage portfolio is presented in the table below.

Amortised cost

2025 2024

Singapore

Malaysia

Jersey

Others

Total

Singapore

Malaysia

Jersey

Others

Total

Less than 50 per cent 51.8 37.1 30.5 61.8 49.8 52.7 37.4 28.2 62.8 51.0

50 per cent to 59 per cent 19.4 15.5 14.0 16.1 17.8 21.8 15.2 14.9 16.5 19.2

60 per cent to 69 per cent 15.8 18.6 30.9 13.1 17.0 15.6 18.1 33.7 12.4 16.7

70 per cent to 79 per cent 12.7 15.9 17.7 7.2 12.5 9.6 16.2 17.6 6.4 10.4

80 per cent to 89 per cent 0.2 10.9 6.3 1.4 2.4 0.1 11.6 3.9 1.2 2.2

90 per cent to 99 per cent 0.0 1.4 0.3 0.3 0.3 0.0 0.9 1.7 0.5 0.4

100 per cent and greater 0.1 0.6 0.3 0.1 0.2 0.1 0.6 0.1 0.3 0.2

Average portfolio

loan-to-value 42.7 55.3 57.5 42.4 45.3 42.5 55.4 58.8 42.2 45.1

Loans to individuals –

mortgages ($million) 16,054 3,738 2,348 3,519 25,659 13,756 3,332 2,142 3,771 23,001

Collateral and other credit enhancements possessed orcalledupon (audited)

The Group obtains assets by taking possession of collateral (such as property, plant and equipment) or calling upon other credit

enhancements (such as guarantees). Repossessed properties are sold in an orderly fashion. Where the proceeds are in excess of

the outstanding loan balance the excess is returned to the borrower.

Certain equity securities acquired may be held by the Group for investment purposes and are classified as fair value through

profit or loss, and the related loan written off. The carrying value of collateral possessed and held by the Group as at

31 December 2025 is $Nil (31 December 2024: $23.7 million).

Other Credit Risk mitigation

Other forms of Credit Risk mitigation are set out below.

Credit default swaps

The Group has entered into credit default swaps for portfolio management purposes, referencing loan assets with a notional

value of $3.5 billion (31 December 2024: $2.8 billion). These credit default swaps are accounted for as financial guarantees per

IFRS 9 as they will only reimburse the holder for an incurred loss on an underlying debt instrument. The Group continues to hold

the underlying assets referenced in the credit default swaps and it continues to be exposed to related Credit and Foreign

Exchange Risk on these assets.

Credit linked notes

The Group has issued credit linked notes for portfolio management purposes, referencing loan assets with a notional value of

$22.4 billion (31 December 2024: $18.6 billion). The Group continues to hold the underlying assets for which the credit linked notes

provide mitigation. The credit linked notes are recognised as a financial liability at amortised cost on the balance sheet and are

adjusted, where appropriate, for reductions in expected future cash flows with a corresponding credit to credit impairment in

the income statement.

Off-balance sheet exposures

For certain types of exposures, such as letters of credit and guarantees, the Group obtains collateral such as cash depending on

internal Credit Risk assessments, as well as in the case of letters of credit holding legal title to the underlying assets should a

default take place.

Other portfolio analysis

This section provides maturity analysis of loans and advances by business segment.

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 47

Contractual maturity analysis of loans and advances by client segment (audited)

Shorter maturities give us the flexibility to respond promptly to events and rebalance or reduce our exposure to clients or sectors

that are facing increased pressure or uncertainty.

Loans and advances to the CIB segment remain predominantly short-term, with $53.5 billion (31 December 2024: $58.4 billion)

maturing in less than one year. The WRB loan book continues to be longer-term in nature with 45 per cent (31 December

2024: 47 per cent) of the loans maturing over five years, as mortgages constitute the majority of this portfolio.

Group

Amortised cost

2025 2024

One year

or less

$million

One to

five years

$million

Over

five years

$million

Total

$million

One year

or less

$million

One to

five years

$million

Over

five years

$million

Total

$million

Corporate & Investment Banking 53,534 26,658 13,069 93,261 58,427 20,537 13,461 92,425

Wealth & Retail Banking 25,051 4,557 24,382 53,990 20,579 4,748 22,534 47,861

Ventures 920 – – 920 391 204 – 595

Central & other items 13,611 272 1 13,884 20,259 – 1 20,260

Gross loans and advances to customers 93,116 31,487 37,452 162,055 99,656 25,489 35,996 161,141

Impairment provisions (2,577) (173) (51) (2,801) (2,652) (172) (75) (2,899)

Net loans and advances to customers 90,539 31,314 37,401 159,254 97,004 25,317 35,921 158,242

Net loans and advances to banks 22,128 2,259 384 24,771 20,285 2,376 280 22,941

Company

Amortised cost

2025 2024

One year

or less

$million

One to

five years

$million

Over

five years

$million

Total

$million

One year

or less

$million

One to

five years

$million

Over

five years

$million

Total

$million

Corporate & Investment Banking 38,454 18,067 8,119 64,640 44,859 12,646 8,790 66,295

Wealth & Retail Banking 6,488 2,367 3,752 12,607 5,831 2,278 4,174 12,283

Ventures – – – – – – – –

Central & other items 4,249 272 1 4,522 813 – 1 814

Gross loans and advances to customers 49,191 20,706 11,872 81,769 51,503 14,924 12,965 79,392

Impairment provisions (1,558) (86) (34) (1,678) (1,683) (75) (37) (1,795)

Net loans and advances to customers

47,633 20,620 11,838 80,091 49,820 14,849 12,928 77,597

Net loans and advances to banks 9,685 1,039 384 11,108 10,162 1,313 280 11,755

1 Excludes ‘Amounts due from subsidiary undertakings and other related parties’ of $11,538 million (31 December 2024: $10,066 million). The amounts are held within

stage 1 and rated as ‘strong’ and is net of an expected credit loss of $3 million (31 December 2024: $2.4 million).

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 48

Credit quality by industry

Loans and advances

This section provides an analysis of the Group’s amortised cost portfolio by industry on a gross, total credit impairment

andnetbasis.

Group

To better reflect the concentration risks for net loans and advances to customers, the Group has now included details of

geographic concentrations for this portfolio. For total net loans and advances to customers, $61.5 billion (31 December 2024:

$63.5 billion) is booked in Singapore, $21.9 billion (31 December 2024: $25.8 billion) is booked in the UK and $24.6 billion

(31 December 2024: $18.3 billion) is booked in the US.

As the Group operates a global booking model across the CIB and Central and other items segments, the booking location does

not necessarily reflect the country of risk (which is the country that can directly or indirectly put the counterparty at risk for the

highest amount of potential financial losses) of the underlying counterparties. For the portion of loans and advances analysed

by industry in the tables below, $28.5 billion (31 December 2024: $36.8 billion) is booked in Singapore and $21.9 billion

(31 December 2024: $25.8 billion) in UK. On a country of risk basis, the UK and Singapore would be approximately 69%

(31 December 2024: 74%) and 41% (31 December 2024: 28%) lower respectively, with increases in loans to customers in India,

UAE and the US.

Amortised cost

2025

Stage 1 Stage 2 Stage 3 Total

Gross

balance

$million

Total credit

impairment

$million

Net

carrying

amount

$million

Gross

balance

$million

Total credit

impairment

$million

Net

carrying

amount

$million

Gross

balance

$million

Total credit

impairment

$million

Net

carrying

amount

$million

Gross

balance

$million

Total credit

impairment

$million

Net

carrying

amount

$million

Industry:

Energy 10,988 (16) 10,972 640 (17) 623 458 (410) 48 12,086 (443) 11,643

Manufacturing 10,394 (10) 10,384 527 (15) 512 564 (289) 275 11,485 (314) 11,171

Financing,

insurance and

non-banking 27,437 (9) 27,428 386 (7) 379 72 (66) 6 27,895 (82) 27,813

Transport, telecom

and utilities 10,746 (8) 10,738 1,809 (41) 1,768 390 (108) 282 12,945 (157) 12,788

Food and

household products 7,120 (6) 7,114 295 (17) 278 185 (177) 8 7,600 (200) 7,400

Commercial real

estate 6,720 (3) 6,717 939 (18) 921 163 (91) 72 7,822 (112) 7,710

Mining and

quarrying 3,296 (5) 3,291 214 (7) 207 32 (28) 4 3,542 (40) 3,502

Consumer durables 3,235 (6) 3,229 232 (14) 218 194 (190) 4 3,661 (210) 3,451

Construction 1,364 (2) 1,362 319 (1) 318 127 (127) – 1,810 (130) 1,680

Trading companies

& distributors 374 – 374 6 – 6 77 (46) 31 457 (46) 411

Government 13,762 (13) 13,749 119 – 119 473 (62) 411 14,354 (75) 14,279

Other 3,256 (5) 3,251 123 – 123 109 (61) 48 3,488 (66) 3,422

Total

98,692 (83) 98,609 5,609 (137) 5,472 2,844 (1,655) 1,189 107,145 (1,875) 105,270

Retail Products:

Mortgages 24,836 (9) 24,827 542 (3) 539 437 (144) 293 25,815 (156) 25,659

Credit Cards 3,600 (86) 3,514 153 (36) 117 43 (36) 7 3,796 (158) 3,638

Personal Loans and

other unsecured

lending 2,384 (86) 2,298 81 (7) 74 158 (76) 82 2,623 (169) 2,454

Secured wealth

products 20,077 (27) 20,050 313 (5) 308 477 (341) 136 20,867 (373) 20,494

Other 1,646 (1) 1,645 95 (2) 93 68 (67) 1 1,809 (70) 1,739

Total 52,543 (209) 52,334 1,184 (53) 1,131 1,183 (664) 519 54,910 (926) 53,984

Net carrying value

(customers)¹ 151,235 (292) 150,943 6,793 (190) 6,603 4,027 (2,319) 1,708 162,055 (2,801) 159,254

Net carrying value

(Banks)¹ 24,521 (3) 24,518 216 – 216 41 (4) 37 24,778 (7) 24,771

1 Includes reverse repurchase agreements and other similar secured lending held at amortised cost of $7,350 million for Customers and $3,698 million for Banks.

2 Includes Central & other items loans and advances to customers balance as set out in the Loans and advances by client segment table on page 36.

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 49

Amortised cost

2024

Stage 1 Stage 2 Stage 3 Total

Gross

balance

$million

Total credit

impairment

$million

Net

carrying

amount

$million

Gross

balance

$million

Total credit

impairment

$million

Net

carrying

amount

$million

Gross

balance

$million

Total credit

impairment

$million

Net

carrying

amount

$million

Gross

balance

$million

Total credit

impairment

$million

Net

carrying

amount

$million

Industry:

Energy 10,695 (11) 10,684 449 (33) 416 859 (551) 308 12,003 (595) 11,408

Manufacturing 9,610 (9) 9,601 509 (10) 499 390 (278) 112 10,509 (297) 10,212

Financing,

insurance and

non-banking 26,699 (12) 26,687 804 (1) 803 86 (74) 12 27,589 (87) 27,502

Transport, telecom

and utilities 9,542 (9) 9,533 1,962 (26) 1,936 330 (85) 245 11,834 (120) 11,714

Food and

household products 6,484 (8) 6,476 267 (8) 259 236 (184) 52 6,987 (200) 6,787

Commercial real

estate 5,394 (7) 5,387 879 (9) 870 120 (82) 38 6,393 (98) 6,295

Mining and

quarrying 3,757 (3) 3,754 251 (12) 239 124 (56) 68 4,132 (71) 4,061

Consumer durables 2,699 (6) 2,693 187 (16) 171 245 (229) 16 3,131 (251) 2,880

Construction 1,181 (1) 1,180 478 (5) 473 171 (160) 11 1,830 (166) 1,664

Trading companies

& distributors 364 – 364 2 – 2 82 (44) 38 448 (44) 404

Government 24,374 – 24,374 428 (12) 416 193 (18) 175 24,995 (30) 24,965

Other 2,624 (2) 2,622 72 (4) 68 139 (68) 71 2,835 (74) 2,761

Total

103,423 (68) 103,355 6,288 (136) 6,152 2,975 (1,829) 1,146 112,686 (2,033) 110,653

Retail Products:

Mortgages 22,266 (7) 22,259 436 (2) 434 431 (123) 308 23,133 (132) 23,001

Credit Cards 3,665 (70) 3,595 95 (37) 58 49 (44) 5 3,809 (151) 3,658

Personal Loans and

other unsecured

lending

2,822 (82) 2,740 67 (13) 54 113 (62) 51 3,002 (157) 2,845

Secured wealth

products 16,110 (24) 16,086 387 (5) 382 460 (334) 126 16,957 (363) 16,594

Other

2,3

1,465 (3) 1,462 19 – 19 70 (60) 10 1,554 (63) 1,491

Total 46,328 (186) 46,142 1,004 (57) 947 1,123 (623) 500 48,455 (866) 47,589

Net carrying value

(customers)¹ 149,751 (254) 149,497 7,292 (193) 7,099 4,098 (2,452) 1,646 161,141 (2,899) 158,242

Net carrying value

(Banks)

22,556 (5) 22,551 313 (1) 312 80 (2) 78 22,949 (8) 22,941

1 Includes reverse repurchase agreements and other similar secured lending held at amortised cost of $9,121 million for Customers and $2,889 million for Banks.

2 Includes Auto Loans previously presented separately. Prior period has been represented.

3 Prior period has been represented between Personal Loans and other unsecured lending and Other for $463 million to align product classification.

4 Include Central & other items loans and advances to customers balance as set out in the Loans and advances by client segment table on page 37.

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 50

Company

To better reflect the concentration risks for net loans and advances to customers, the Company has now included details of

geographic concentrations for this portfolio. For total net loans and advances to customers, $24.6 billion (31 December 2024:

$18.3 billion) is booked in the US and $21.9 billion (31 December 2024: $25.8 billion) is booked in the UK, all of which is within the

analysis by industry in the table below.

As the Company operates a global booking model across CIB and Central and other items segments, the booking location does

not necessarily reflect the country of risk (which is the country that can directly or indirectly put the counterparty at risk for the

highest amount of potential financial losses) of the underlying counterparties. On a country of risk basis, the UK would be

approximately 78% (31 December 2024: 84%) lower respectively, with increases in loans to customers in India and UAE.

Amortised cost

2025

Stage 1 Stage 2 Stage 3 Total

Gross

balance

$million

Total credit

impairment

$million

Net

carrying

amount

$million

Gross

balance

$million

Total credit

impairment

$million

Net

carrying

amount

$million

Gross

balance

$million

Total credit

impairment

$million

Net

carrying

amount

$million

Gross

balance

$million

Total credit

impairment

$million

Net

carrying

amount

$million

Industry:

Energy 6,958 (2) 6,956 360 (5) 355 241 (191) 50 7,559 (198) 7,361

Manufacturing 6,067 (5) 6,062 333 (12) 321 505 (245) 260 6,905 (262) 6,643

Financing,

insurance and

non-banking 24,275 (7) 24,268 348 (7) 341 24 (18) 6 24,647 (32) 24,615

Transport, telecom

and utilities 5,886 (6) 5,880 1,330 (37) 1,293 316 (88) 228 7,532 (131) 7,401

Food and

household products 4,209 (3) 4,206 128 (10) 118 46 (44) 2 4,383 (57) 4,326

Commercial real

estate 5,005 (2) 5,003 714 (12) 702 161 (89) 72 5,880 (103) 5,777

Mining and

quarrying 2,638 (4) 2,634 120 (1) 119 29 (26) 3 2,787 (31) 2,756

Consumer durables 2,436 (6) 2,430 57 (4) 53 175 (171) 4 2,668 (181) 2,487

Construction 1,181 (1) 1,180 14 – 14 66 (65) 1 1,261 (66) 1,195

Trading companies

& distributors 215 – 215 1 – 1 54 (24) 30 270 (24) 246

Government 2,865 (8) 2,857 75 – 75 339 (22) 317 3,279 (30) 3,249

Other 1,906 (2) 1,904 1 – 1 84 (51) 33 1,991 (53) 1,938

Total

63,641 (46) 63,595 3,481 (88) 3,393 2,040 (1,034) 1,006 69,162 (1,168) 67,994

Retail Products:

Mortgages 4,839 (5) 4,834 111 (2) 109 227 (89) 138 5,177 (96) 5,081

Credit Cards 375 (9) 366 80 (16) 64 6 (5) 1 461 (30) 431

Personal Loans and

other unsecured

lending 1,404 (55) 1,349 31 (3) 28 21 (5) 16 1,456 (63) 1,393

Secured wealth

products 3,798 (7) 3,791 53 (2) 51 383 (292) 91 4,234 (301) 3,933

Other 1,198 (2) 1,196 61 (1) 60 20 (17) 3 1,279 (20) 1,259

Total 11,614 (78) 11,536 336 (24) 312 657 (408) 249 12,607 (510) 12,097

Net carrying value

(customers)¹ 75,255 (124) 75,131 3,817 (112) 3,705 2,697 (1,442) 1,255 81,769 (1,678) 80,091

Net carrying value

(Banks)¹ 10,965 (2) 10,963 145 – 145 1 (1) – 11,111 (3) 11,108

1 Includes reverse repurchase agreements and other similar secured lending held at amortised cost of $6,865 million for Customers and $855 million for Banks.

2 Include Central & other items loans and advances to customers balance as set out in the Loans and advances by client segment table on page 38.

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 51

Amortised cost

2024

Stage 1 Stage 2 Stage 3 Total

Gross

balance

$million

Total credit

impairment

$million

Net

carrying

amount

$million

Gross

balance

$million

Total credit

impairment

$million

Net

carrying

amount

$million

Gross

balance

$million

Total credit

impairment

$million

Net

carrying

amount

$million

Gross

balance

$million

Total credit

impairment

$million

Net

carrying

amount

$million

Industry:

Energy 7,345 (5) 7,340 342 (10) 332 564 (266) 298 8,251 (281) 7,970

Manufacturing 6,415 (7) 6,408 330 (4) 326 312 (234) 78 7,057 (245) 6,812

Financing,

insurance and

non-banking 23,812 (9) 23,803 413 (1) 412 24 (22) 2 24,249 (32) 24,217

Transport, telecom

and utilities 5,256 (6) 5,250 1,485 (22) 1,463 267 (62) 205 7,008 (90) 6,918

Food and

household products 3,743 (4) 3,739 106 (5) 101 83 (59) 24 3,932 (68) 3,864

Commercial real

estate 3,655 (7) 3,648 443 (8) 435 115 (79) 36 4,213 (94) 4,119

Mining and

quarrying 2,795 (2) 2,793 56 (8) 48 51 (48) 3 2,902 (58) 2,844

Consumer durables 1,796 (6) 1,790 83 (9) 74 225 (209) 16 2,104 (224) 1,880

Construction 878 (1) 877 127 – 127 105 (96) 9 1,110 (97) 1,013

Trading companies

& distributors 227 – 227 2 – 2 54 (23) 31 283 (23) 260

Government 3,874 – 3,874 378 (3) 375 94 (18) 76 4,346 (21) 4,325

Other 1,521 (1) 1,520 22 (2) 20 111 (59) 52 1,654 (62) 1,592

Total

61,317 (48) 61,269 3,787 (72) 3,715 2,005 (1,175) 830 67,109 (1,295) 65,814

Retail Products:

Mortgages 4,805 (5) 4,800 69 (1) 68 243 (81) 162 5,117 (87) 5,030

Credit Cards 599 (12) 587 35 (16) 19 18 (10) 8 652 (38) 614

Personal Loans and

other unsecured

lending

1,285 (44) 1,241 32 (8) 24 21 (9) 12 1,338 (61) 1,277

Secured wealth

products 3,708 (6) 3,702 79 (2) 77 367 (285) 82 4,154 (293) 3,861

Other

2,3

983 (1) 982 8 – 8 31 (20) 11 1,022 (21) 1,001

Total 11,380 (68) 11,312 223 (27) 196 680 (405) 275 12,283 (500) 11,783

Net carrying value

(customers)

72,697 (116) 72,581 4,010 (99) 3,911 2,685 (1,580) 1,105 79,392 (1,795) 77,597

Net carrying value

(Banks)

11,545 (1) 11,544 209 (1) 208 3 – 3 11,757 (2) 11,755

1 Includes reverse repurchase agreements and other similar secured lending held at amortised cost of $9,041 million for Customers and $1,423 million for Banks.

2 Includes Auto Loans previously presented separately. Prior period has been represented.

3 Prior period has been represented between Personal Loans and other unsecured lending and Other for $464 million to align product classification.

4 Include Central & other items loans and advances to customers balance as set out in the Loans and advances by client segment table on page 39.

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 52

Debt securities and other eligible bills (audited)

This section provides further detail on gross debt securities and treasury bills.

The standard credit ratings used by the Group are those used by Standard & Poor’s or its equivalent. Debt securities held that

have a short-term rating are reported against the long-term rating of the issuer. For securities that are unrated, the Group

applies an internal credit rating, as described under the credit rating and measurement section on page 26. Total gross debt

securities and other eligible bills increased by $7.5 billion to $103.7 billion (31 December 2024: $96.2 billion) largely due to

deployment of excess surplus in Singapore Stage 1 exposures.

Stage 1 gross balance increased by $7.7 billion to $102.2 billion (31 December 2024: $94.5 billion) due to deployment of excess

surplus in Singapore.

Stage 2 gross balance decreased by $0.4 billion to $1.2 billion (31 December 2024: $1.6 billion).

Stage 3 gross balance increased by $0.2 billion to $0.3 billion (31 December 2024: $0.1 billion).

Group

Amortised cost and FVOCI

2025 2024

Gross

$million

ECL

$million

Net

$million

Gross

$million

ECL

$million

Net

$million

Stage 1 102,189 (43) 102,146 94,480 (20) 94,460

• Strong 98,296 (36) 98,260 90,971 (16) 90,955

• Satisfactory 3,893 (7) 3,886 3,509 (4) 3,505

Stage 2 1,198 (5) 1,193 1,612 (3) 1,609

• Strong 68 – 68 560 – 560

• Satisfactory 1,130 (5) 1,125 31 – 31

• High Risk – – – 1,021 (3) 1,018

Stage 3 296 (5) 291 103 (2) 101

Gross balance¹ 103,683 (53) 103,630 96,195 (25) 96,170

1 Stage 3 gross includes $278 million (31 December 2024: $59 million) originated credit-impaired debt securities with $5m impairment (31 December 2024: $Nil) The

Group also has credit insurance over $4.2 billion (31 December 2024: $4.03 billion) of other eligible bills.

2 FVOCI instrument are not presented net of ECL. While the presentation is on a net basis for the table, the total net on-balance sheet amount is $103,665 million

(31 December 2024: $96,179 million). Refer to the Analysis of financial instrument by stage table on page 33.

Company

Amortised cost and FVOCI

2025 2024

Gross

$million

ECL

$million

Net

$million

Gross

$million

ECL

$million

Net

$million

Stage 1 79,073 (34) 79,039 81,618 (15) 81,603

• Strong 75,799 (28) 75,771 78,648 (12) 78,636

• Satisfactory 3,274 (6) 3,268 2,970 (3) 2,967

Stage 2 390 (2) 388 244 (2) 242

• Strong 48 – 48 – – –

• Satisfactory 342 (2) 340 6 – 6

• High Risk – – – 238 (2) 236

Stage 3 – – – – – –

Gross balance¹ 79,463 (36) 79,427 81,862 (17) 81,845

1 FVOCI instrument are not presented net of ECL. While the presentation is on a net basis for the table, the total net on-balance sheet amount is $79,448 million

(31 December 2024: $81,855 million). Refer to the Analysis of financial instrument by stage table on page 33.

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 53

IFRS 9 expected credit loss methodology (audited)

Approach for determining expected credit losses

Credit loss terminology

Component Definition

Probability of default (PD) The probability that a counterparty will default, over the next 12 months from the reporting date (stage

1) or over the lifetime of the product (stage 2), incorporating the impact of forward-looking economic

assumptions that have an effect on Credit Risk, such as unemployment rates and GDP forecasts. The PD

estimates will fluctuate in line with the economic cycle. The lifetime (or term structure) PDs are based on

statistical models, calibrated using historical data and adjusted to incorporate forward-looking

economic assumptions.

Loss given default (LGD) The loss that is expected to arise on default, incorporating the impact of forward-looking economic

assumptions where relevant, which represents the difference between the contractual cash flows due

and those that the bank expects to receive.

The Group estimates LGD based on the history of recovery rates and considers the recovery of any

collateral that is integral to the financial asset, taking into account forward-looking economic

assumptions where relevant.

Exposure at default (EAD) The expected balance sheet exposure at the time of default, taking into account expected changes

over the lifetime of the exposure. This incorporates the impact of drawdowns of facilities with limits,

principal and repayments of interest and amortisation.

To determine the expected credit loss (ECL), these

components are multiplied together: PD for the reference

period (up to 12 months or lifetime) x LGD x EAD and

discounted to the balance sheet date using the effective

interest rate as the discount rate.

IFRS 9 ECL models have been developed for the CIB

businesson a global basis, in line with their respective

portfolios. However, for some of the key countries,

country-specific models have also been developed.

Thecalibration offorward-looking information is assessed

ata country orregion level to take into account local

macroeconomic conditions.

Retail ECL models are country and product specific given the

local nature of the retail business.

For less material portfolios, primarily in retail, the Group has

adopted less sophisticated approaches based on historical

roll rates or loss rates:

• For medium-sized portfolios, a roll rate model is applied,

which uses a matrix that gives the average loan migration

rate between delinquency states from period to period. A

matrix multiplication is then performed to generate the

final PDs by delinquency bucket over different time

horizons.

• For smaller portfolios, a loss rate approach is applied.

These use an adjusted gross charge-off rate, developed

using monthly write-off and recoveries over an

appropriate historical observation window (typically

12 months, extended to 24 months for certain portfolios

where this provides a more stable and representative

estimate), and total outstanding balances.

• While the loss rate approaches do not incorporate

forward looking information, to the extent that there are

significant changes in the macroeconomic forecasts, an

assessment is completed on whether an adjustment to the

modelled output is required.

For a limited number of exposures, proxy parameters or

approaches are used where the data is not available to

calculate the origination PDs for the purpose of applying the

SICR criteria; or for some retail portfolios where a full history of

LGD data is not available, estimates based on the loss

experience from similar portfolios are used. The use of proxies

is monitored and will reduce over time.

When existing IFRS 9 PD models are redeveloped, where

material and without undue cost or effort, origination PDs are

recalibrated if there is a change in measurement approach to

ensure credit risk is measured on a consistent basis. A change

in measurement approach refers to changes in the

conceptual or methodological basis of PD estimation that

affect comparability of estimates with the previous model.

The following processes are in place to assess the ongoing

performance of the models:

• Quarterly model monitoring that uses recent data to

compare the differences between model predictions and

actual outcomes against approved thresholds.

• Annual independent validation is performed by Group

Model Valuation (GMV) with the depth of validation

varies determined by the model materiality. Material

models would go through a full annual re-validation

process, while a less intensive validation process will be

performed on non-material models.

Application of lifetime ECL

ECL is estimated based on the period over which the Group is

exposed to Credit Risk. For the majority of exposures this

equates to the maximum contractual period. For retail credit

cards and corporate overdraft facilities, however, the Group

does not typically enforce the contractual period, which can

be as short as one day. As a result, the period over which the

Group is exposed to Credit Risk for these instruments reflects

their behavioural life, which incorporates expectations of

customer behaviour and the extent to which Credit Risk

management actions curtail the period of that exposure. The

average behavioural life for retail credit cards is between 3

and 6 years across our footprint markets.

The behavioural life for corporate overdraft facilities is

24 months.

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 54

Key assumptions and judgements

indeterminingECL

Incorporation of forward-looking information

The evolving economic environment is a key determinant of

the ability of a bank’s clients to meet their obligations as they

fall due. It is a fundamental principle of IFRS 9 that the

provisions banks hold against potential future credit risk

losses should depend not just on the health of the economy

today but should also take into account potential changes to

the economic environment. For example, if a bank were to

anticipate a sharp slowdown in the world economy over the

coming year, it should hold more provisions today to absorb

the credit losses likely to occur in the near future.

To capture the effect of changes to the economic environment,

the PDs and LGDs used to calculate ECL incorporate forward-

looking information in the form of forecasts of the values of

economic variables and asset prices that are likely to have an

effect on the repayment ability of the Group’s clients.

The ‘Base Forecast’ of the economic variables and asset

prices is based on management’s view of the five-year

outlook, supported by projections from the Group’s in-house

research team and outputs from a third-party model that

project specific economic variables and asset prices. The

research team takes consensus views into consideration and

senior management reviews projections for some core

country variables against consensus when forming their view

of the outlook. For the period beyond five years, management

utilises the in-house research view and third-party model

outputs, which allow for a reversion to long-term growth rates

or norms. All projections are updated on a quarterly basis.

Forecast of key macroeconomic variables underlying

the ECL calculation and the impact on non-linearity

In the Base Forecast – management’s view of the most likely

outcome – the pace of growth of the world economy in 2026

is expected to remain broadly unchanged from 2024 at around

3.1 per cent. This compares to the average of 3.7 per cent growth

for the 10 years prior to COVID-19 (between 2010 and 2019).

Growth in 2025 had been supported by exporters front-loading

exports to the US and consumers in key markets remaining

resilient. 2025 for many economies is likely to be a year of

transition from monetary to fiscal policy, and from export-led

to increasingly domestic (particularly investment-led) growth.

The US economy is expected to grow slightly faster in 2026

than the 1.5 per cent growth for last year. The outlook is

supported by strong business investment and spending,

which will be underpinned by corporate tax cuts and the race

for AI adoption. Similarly, the outlook for the Middle East is

expected to be slightly better in 2026 as OPEC+ cuts are

phased out resulting in the gradual recovery in oil output.

Ongoing diversification and infrastructure programmes will

also support investment spending. In Asia growth is expected

to remain robust though moderate on the fading effects from

the strong front-loading of exports to the US in 2025. Political

uncertainty in some countries may also weigh on growth.

Africa is expected to remain strong with the region less

exposed than others to trade tensions. In larger economies

such as Nigeria and South Africa, reform momentum will

provide additional support. In contrast, growth prospects in

the Euro area are expected to remain muted at around 1 per

cent (unchanged from 2025) given trade pressures – both

from UStariffs and increasing competition from China – and

the uneven picture across economies in the region.

The risks around the economic outlook remain elevated

amidpersistent trade policy uncertainty, heightened

geopolitical tensions, including around disruptions

toglobalinternational relationships, and fears

of financial-market corrections – allofwhich point

topotentially higherprobability ofadverseoutcomes.

While the quarterly Base Forecast inform the Group’s

strategic plan, one key requirement of IFRS 9 is that the

assessment of provisions should consider multiple future

economic environments. For example, the global economy

may grow at a different pace than the Base Forecast, and

these variations would have different implications for the

provisions that the Group should hold today. As the negative

impact of an economic downturn on credit losses tends to be

greater than the positive impact of an economic upturn,

iftheGroup sets provisions only on the ECL under the Base

Forecast it might maintain a level of provisions that does not

appropriately capture the range of potential outcomes. To

address the inherent uncertainty in economic forecast, and

the property of skewness (or non-linearity), IFRS 9 requires

reported ECL to be a probability-weighted ECL calculated

over a range of possible outcomes.

To assess the range of possible outcomes, the Group

simulates a set of 50 scenarios around the Base Forecast,

calculates the ECL under each of them and assigns an equal

weight of 2 per cent to each scenario outcome. These

scenarios are generated by a Monte Carlo simulation,

whichaddresses the challenges of crafting many realistic

alternative scenarios in the many countries in which the

Group operates. The alternative scenarios are modelled while

considering the degree of historical uncertainty (or volatility)

observed from Q1 1990 to Q3 2023 around economic

outcomes, the trends in each macroeconomic variable

modelled and the correlation in the unexplained movements

around these trends. Collectively, the 50 scenarios explore a

range of hypothetical alternative outcomes for the global

economy, including scenarios that turn out better than

expected and those that amplify anticipated stresses.

The tables on page 57 provide a summary of the Group’s

Base Forecast for key markets. The peak/trough amounts in

the tables show the highest and lowest points within the

BaseForecast.

China’s GDP growth is expected to ease slightly to 4.3 per

cent in 2026 from 4.9 per cent in 2025, reflecting the fading

impact from the front-loading of activity last year and the

ongoing correction in the property sector. Similarly, GDP

growth is expected to moderate in Singapore as external

demand turns less supportive in 2026. While growth in India

isalso expected to ease to 6.5 per cent from 6.9 per cent in

2025, it will remain amongst the fastest growing economies in

theworld. The outlook will be supported by consumption

(supported by policies such as tax cuts), ample rainfall and

low inflation. Growth in the UAE is also expected to remain

robust in 2026 at 4 per cent (down from 5 percent in 2025).

The forecast assumes continued hydrocarbon-sector

expansion as oil output rises. Growth in the non-oil sector is

also expected to be strong.

Brent crude oil prices are expected to average around $63

in2026 compared to $69 in 2025. They are expected to rise

modestly over the next few years. The five-year average oil

price is $70.

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 55

2025 year-end forecasts

China

UAE Singapore

India

5 yr

average

base

forecast

Base

forecast

quarterly

peak/trough Low

High

5 yr

average

base

forecast

Base

forecast

quarterly

peak/

trough Low

High

5 yr

average

base

forecast

Base

forecast

quarterly

peak/

trough Low

High

5 yr

average

base

forecast

Base

forecast

quarterly

peak/

trough Low

High

GDP growth (YoY%) 3.8 4.7/3.3 (6.9) 14.3 3.3 4.8/2.2 (3.9) 9.4 2.7 4.3/0.5 (5.5) 9.8 6.3 6.5/5.9 3.0 10.5

Unemployment (%) 3.3 3.4/3.3 2.9 3.8 N/A N/A NA NA 2.8 3.0/2.8 1.7 4.3 N/A N/A NA NA

3-month interest rates (%) 1.4 1.5/1.4 (0.3) 3.6 3.7 3.7/3.7 0.3 7.0 2.4 3.0/1.0 (0.4) 6.4 6.3 6.5/5.8 1.0 13.7

House prices (YoY%) (0.1) 2.3/(2.5) (8.3) 15.4 2.1 4.2/1.8 (15.8) 21.4 2.8 3.7/2.6 (16.8) 22.5 6.3 6.5/6.1 2.0 10.6

2024 year-end forecasts

China

UAE Singapore

India

5 yr

average

base

forecast

Base

forecast

quarterly

peak/

trough Low

High

5 yr

average

base

forecast

Base

forecast

quarterly

peak/

trough Low

High

5 yr

average

base

forecast

Base

forecast

quarterly

peak/

trough Low

High

5 yr

average

base

forecast

Base

forecast

quarterly

peak/

trough Low

High

GDP growth (YoY%) 4.1 5.3/3.2 (1.0) 9.3 3.7 5.4/2.7 (0.1) 12.6 2.3 3.4/0.6 (2.7) 7.0 6.6 7.1/5.9 3.2 10.0

Unemployment (%) 3.3 3.5/3.1 2.8 3.7 NA NA NA NA 2.7 2.8/2.7 2.0 3.6 NA NA NA NA

3-month interest rates (%) 1.7 1.9/1.6 0.6 3.0 2.9 3.6/2.7 0.5 5.5 2.0 2.4/1.6 0.3 3.9 6.0 6.2/6.0 1.9 10.3

House prices (YoY%) (1.3) 2.3/(5.6) (10.1) 7.8 3.5 12.4/1.9 (12.0) 22.3 2.4 3.2/(0.4) (10.5) 17.5 6.4 7.3/6.0 (0.1) 12.6

2025 year-end forecasts 2024 year-end forecasts

5 yr

average

base

forecast

Base

forecast

peak/trough Low

High

5 yr

average

base

forecast

Base

forecast

peak/trough Low

High

Brent Crude, $ pb 69.5 75.2/62.0 30 146.5 76.2 77.8/74.8 44.5 107.8

1 NA – Not available.

2 Represents the 10

percentile in the range of economic scenarios used to determine non-linearity.

3 Represents the 90

percentile in the range of economic scenarios used to determine non-linearity.

4 Base forecasts are evaluated from Q1 2026 to Q4 2030. The forward-looking simulation starts from Q1 2026.

5 A judgemental management adjustment is held in respect of the China commercial real estate sector as discussed below.

6 Singapore unemployment rate covers the resident unemployment rate, which refers to citizens and permanent residents.

7 Data presented are those used in the calculation of ECL. These may differ slightly to forecasts presented elsewhere in the Financial statements as they are finalised

before the period end.

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 56

Judgemental adjustments

As at 31 December 2025, the Group held $96 million

(31 December 2024: $50 million) of judgemental

management overlays, $74 million (31 December 2024:

$42 million) of which relates to CIB, $11 million (31 December

2024: $1 million) to WRB and $11 million (31 December 2024:

$7 million) to Central and other items.

Overlays in CIB and Central and other items have been taken

for Bangladesh by estimating the impact of deterioration to

certain exposures in the country which reflects that the

political situation has contributed to an increasing level of

uncertainty in the macroeconomic outlook as well as the

impact of a recent change in the restructuring policy

announced by the local regulator and has been determined

by estimating the impact of deterioration to certain

exposures. Overlays have also been taken across CIB

andWRB for marginal amounts relating to climate risks

andother items.

Read more on the adjustment for Climate Risk in Note 1 of

the "Notes to the financial statements" on page 92

As at 31 December 2025, judgemental post model

adjustments which increased ECL by a net $38 million

(31 December 2024: $9 million decrease in ECL) have been

applied.

There was a $56 million (31 December 2024: $16 million)

upward adjustment for non-linearity which has been

estimated by assigning probability weights of 59 per cent,

26per cent and 15 per cent respectively to the Base Forecast,

Market Correction and Bank Capital Stress Test roll forward

scenarios which are presented on page 58 and comparing

this to the unweighted Base Forecast ECL. At 31 December

2024, probability weights of 68 per cent, 22 per cent and 10

per cent respectively to the Base Forecast, Higher for Longer

Commodities and Rates and Global Trade and Geopolitical

Tensions scenarios as disclosed in the 2024 financial

statements. The nonlinearity PMA represents the difference

between the probability weighted ECL calculated using the

three scenarios and the probability weighted ECL calculated

by the Monte Carlo model together with an adjustment of

$4 million (31 December 2024: Nil) to incorporate non-

linearity for portfolios under a loss rate approach. There was

also a remaining $18 million reduction (31 December 2024:

$25 million reduction) in ECL which relates to adjustments

applied to and for certain WRB models, primarily to adjust for

temporary factors impacting modelled outputs. These will be

released when these factors normalise.

Judgemental adjustments are re-assessed quarterly, are

reviewed and approved by the IFRS 9 Impairment Committee

and will be released when the risks are no longer relevant.

Stage 3 assets

Credit-impaired assets managed by Stressed Asset Risk

incorporate forward-looking economic assumptions in

respect of the recovery outcomes identified, and are assigned

individual probability weightings. These assumptions are not

based on a Monte Carlo simulation but are informed by the

Base Forecast.

Sensitivity of expected credit loss calculation to

macroeconomic variables

The ECL calculation relies on multiple variables and is

inherently non-linear and portfolio-dependent, which implies

that no single analysis can fully demonstrate the sensitivity of

the ECL to changes in the macroeconomic variables. The

Group has conducted a series of analyses with the aim of

identifying the macroeconomic variables which might have

the greatest impact on overall ECL. These encompassed

single variable and multi-variable exercises, using simple up/

down variation and extracts from actual calculation data, as

well as bespoke scenario design and assessments.

The primary conclusion of these exercises is that no individual

macroeconomic variable is materially influential. The Group

believes this is plausible as the number of variables used in

the ECL calculation is large. This does not mean that

macroeconomic variables are uninfluential; rather, that the

Group believes that consideration of macroeconomics should

involve whole scenarios, as this aligns with the multi-variable

nature of the calculation.

The Group faces downside risks in the operating environment

related to the uncertainties surrounding the macroeconomic

outlook. To explore this, a sensitivity analysis of ECL was

undertaken to explore the effect of slower economic

recoveries across the Group’s footprint markets. Two

downside scenarios are considered. The first scenario

explores a modest downturn driven by financial market

corrections in the US and other major economies. The second

is a roll forward of the 2025 Bank of England’s Bank Capital

Stress Test (BCST) scenario and is characterised by a

synchronised and severe downturn across all key markets,

global supply side disruptions (including tariffs) and a high

commodity price, inflation and interest rate environment.

Baseline Market Correction Bank Capital Stress Test

Five year

average Peak/Trough

Five year

average Peak/Trough

Five year

average Peak/Trough

China GDP 3.8 4.7/3.3 3.4 4.1/1.9 2.8 4.4/(1.8)

China unemployment 3.3 3.4/3.3 3.5 3.7/3.3 4.4 5.0/3.6

China property prices (0.1) 2.3/(2.5) (2.6) 1.8/(10.0) (4.1) 10.8/(12.4)

UAE GDP 3.3 4.8/2.2 3.2 4.5/2.4 2.2 3.9/(0.7)

UAE property prices 2.1 4.2/1.8 1.9 2.5/0.6 (4.7) 8.1/(16.2)

US GDP 1.9 2.1/1.2 1.2 2.5/(0.8) 0.1 1.4/(3.8)

Singapore GDP 2.7 4.3/0.5 2.2 3.7/(1.2) 1.1 3.8/(7.0)

India GDP 6.3 6.5/5.9 5.9 6.3/4.9 4.8 6.2/0.0

Crude oil 69.5 75.2/62.0 67.5 75.2/55.6 109.1 139.2/81.0

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 57