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

The total reported stage 1 and 2 ECL provisions (including

both on and off-balance sheet instruments) would be

approximately $67 million higher under the Market Correction

scenario and $350 million higher under the BCST roll forward

scenario than the baseline ECL provisions (which excluded

the impact of multiple economic scenarios and management

overlays which may already capture some of the risks in these

scenarios). The proportion of stage 2 assets would increase

from 2.6 per cent in the base case to 2.7 per cent and 4.3 per

cent respectively under the Market Correction and BCST roll

forward scenarios. This includes the impact of exposures

transferring to stage 2 from stage 1 but does not consider an

increase in stage 3 defaults.

Under the Market Correction scenario, the majority of the

increase in CIB came from the main corporate and project

finance portfolio, with commercial real estate and sovereign

exposures impacted in the BCST roll forward scenario.

FortheWRB portfolios most of the increases came from

theunsecured retail portfolios with Singapore credit cards

most impacted.

There was no material change in modelled stage 3 provisions

as these primarily relate to unsecured retail exposures for

which the LGD is not sensitive to changes in the

macroeconomic forecasts. There is also no material change

for non-modelled stage 3 exposures as these are more

sensitive to client specific factors than to alternative

macroeconomic scenarios.

The actual outcome of any scenario may be materially

different due to, among other factors, the effect of

management actions to mitigate potential increases in risk

and changes in the underlying portfolio.

Modelled provisions

Increase in ECL

Market

Correction

$million

Bank

Capital

Stress Test

$ million

Stage 1

Corporate & Investment Banking 23 23

Wealth & Retail Banking 7 14

Ventures – –

Central & Others 9 64

Total increase in stage 1 ECL 39 101

Stage 2

Corporate & Investment Banking 22 145

Wealth & Retail Banking 6 51

Ventures – –

Central & Others – 53

Total increase in stage 2 ECL 28 249

Total Stage 1 & 2

Corporate & Investment Banking 45 168

Wealth & Retail Banking 13 65

Ventures – –

Central & Others 9 117

Total increase in stage 1 & 2 ECL 67 350

Significant increase in credit risk (SICR)

Quantitative criteria

SICR is assessed by comparing the risk of default at the

reporting date to the risk of default at origination. Whether a

change in the risk of default is significant or not is assessed

using quantitative and qualitative criteria. These criteria have

been separately defined for each business and where

meaningful are consistently applied across business lines.

Assets are considered to have experienced SICR if they have

breached both relative and absolute thresholds for the

change in the average annualised IFRS 9 lifetime probability

of default (IFRS 9 PD) over the residual term of the exposure.

The absolute measure of increase in credit risk is used to

capture instances where the IFRS 9 PDs on exposures are

relatively low at initial recognition as these may increase by

several multiples without representing a significant increase

in credit risk. Where IFRS 9 PDs are relatively high at initial

recognition, a relative measure is more appropriate in

assessing whether there is a significant increase in credit risk,

as the IFRS 9 PDs increase more quickly.

The SICR thresholds have been calibrated based on the

following principles:

• Stability – The thresholds are set to achieve a stable stage

2 population at a portfolio level, trying to minimise the

number of accounts moving back and forth between

stage 1 and stage 2 in a short period of time

• Accuracy – The thresholds are set such that there is a

materially higher propensity for stage 2 exposures to

eventually default than is the case for stage 1 exposures

• Dependency from backstops – The thresholds are

stringent enough such that a high proportion of accounts

transfer to stage 2 due to movements in forward-looking

IFRS 9 PDs rather than relying on backward-looking

backstops such as arrears

• Relationship with business and product risk profiles – The

thresholds reflect the relative risk differences between

different products, and are aligned to business processes

For CIB clients the quantitative thresholds are a relative 100

per cent increase in IFRS 9 PD and an absolute change in IFRS

9 PD of between 50 and 100 bps for investment grade and

sub-investment grade assets.

For WRB (excluding Private Banking) clients, portfolio specific

quantitative thresholds are applied across the following

portfolios: Credit cards (Singapore, Malaysia and UAE),

Business client mortgages (India), and Mortgages (UAE). In

2025, we have updated SICR for UAE mortgage, Singapore

Credit cards and Malaysia Credit cards. The impact of these

changes was not material. These thresholds capture relative

and absolute increases in IFRS 9 PD, with average lifetime

IFRS 9 PD cut-offs. They are further tailored based on

customer utilisation bands for credit cards; behavioural score

and maximum delinquency in the last 12 months for Business

client mortgages. The approach also differentiates between

exposures that are current and those that are 1 to 29 days

past due.

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 58

The range of thresholds applied are:

Portfolio

Relative IFRS 9 PD

increase (%)

Absolute IFRS 9 PD

increase (%)

Customer utilisation

(%)

Average IFRS 9 PD

(lifetime)

Credit cards – Current 70 – 200 3.5 – 6.2 85 – 95 4.15 – 13.5

Credit cards – 1-29 days past due 20 – 180 2.5 – 6.1 25 – 46 5.4 – 9.5

Business client mortgages – Current 100 4.4 – –

Business client mortgages – 1-29 days past due 100 7.0 – –

Mortgages-Current 500 2.75 – –

Mortgages-1-29 days past due 700 3.5 – –

For all other material WRB portfolios (excluding Private

Banking) for which a statistical model has been built, the

quantitative SICR thresholds applied are a relative threshold

of 100 per cent increase in IFRS 9 PD and an absolute change

in IFRS 9 PD of between 100 and 350 bps depending on the

product. Certain countries have a higher absolute threshold

reflecting the lower default rate within their personal loan

portfolios compared with the Group’s other personal loan

portfolios. The original lifetime IFRS 9 PD term structure is

determined based on the original application score or risk

segment of the client.

For all Private Banking classes, in line with risk management

practice, an increase in credit risk is deemed to have occurred

where margining or LTV covenants have been breached.

ForClass I assets (lending against diversified liquid collateral),

if these margining requirements have not been met within

30days of a trigger, a SICR is assumed to have occurred.

ForClass I and Class III assets (real-estate lending), a SICR

isassumed to have occurred where the bank is unable to

‘selldown’ the applicable assets to meet revised collateral

requirements within five days of a trigger. Class II assets

aretypically unsecured or partially secured, or secured

against illiquid collateral such as shares in private

companies.Significant credit deterioration of these assets

isdeemed tohave occurred when any early alert trigger

hasbeen breached.

Qualitative criteria

Qualitative factors that indicate that there has been

asignificant increase in credit risk include processes linked

tocurrent risk management, such as placing loans on

non-purely precautionary early alert or being assigned

aCG12rating. An account is placed on non-purely

precautionary early alert if it exhibits risk or potential

weaknesses of a material nature requiring closer monitoring,

supervision or attention by management. Weaknesses

insuch a borrower’s account, if left uncorrected, could result

indeterioration of repayment prospects and the likelihood

ofbeing downgraded. Indicators could include a rapid

erosion of position within the industry, concerns

overmanagement’s ability to manage operations,

weak/deteriorating operating results, liquidity strain

andoverduebalances, among other factors.

All client assets that have been assigned a CG12 rating,

equivalent to ‘Higher risk’, are deemed to have experienced a

significant increase in credit risk. Accounts rated CG12 are

primarily managed by relationship managers in the CIB unit

with support from SAG for certain accounts. All CIB clients are

placed in CG12 when they are 30 DPD unless they are granted

a waiver through a strict governance process.

In WRB, SICR is also assessed for where specific risk elevation

events have occurred in a market that are not yet reflected in

modelled outcomes or in other metrics. This is applied

collectively either to impacted specific products/customer

cohorts or across the overall consumer banking portfolio in

the affected market.

For less material portfolios, which are modelled based on a

roll-rate or loss-rate approach, SICR is primarily assessed

through the 30 DPD trigger.

Backstop

Across all portfolios, accounts that are 30 or more DPD on

contractual payments of principal and/or interest that have

not been captured by the criteria above are considered to

have experienced a significant increase in credit risk.

Expert credit judgement may be applied in assessing SICR to

the extent that certain risks may not have been captured by

the models or through the above criteria. Such instances are

expected to be rare, for example due to events and material

uncertainties arising close to the reporting date.

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 59

Traded Risk

Risk review and Capital review

Traded Risk

Counterparty Credit Risk

Counterparty Credit Risk is the potential for loss in the event

of the default of a derivative counterparty, after taking into

account the value of eligible collaterals and risk mitigation

techniques. The Group’s counterparty credit exposures are

included in the Credit Risk section.

Derivative financial instruments Credit Risk mitigation

The Group enters into master netting agreements, which

inthe event of default result in a single amount owed

byortothe counterparty through netting the sum

ofthepositive and negative mark-to-market values

ofapplicable derivative transactions.

In addition, the Group enters into collateral agreements

withcounterparties when collateral is deemed a necessary

ordesirable mitigant to the exposure. Cash collateral

includescollateral called under a variation margin process

from counterparties if total uncollateralised mark-to-market

exposure exceeds the threshold and minimum transfer

amount specified in the CSA. With certain counterparties,

theCSA is reciprocal and requires the Group to post collateral

if the overall mark-to-market values of positions are in the

counterparty’s favour and exceed an agreed threshold.

Tomitigate settlement risk of FX transactions, the Group

usessafe settlement processes like Delivery versus Payment

(DvP) and Continuously-Linked Settlements (CLS).

TheGroupalso enters into risk-reducing bilateral netting

agreements to net payments and receipts of the same

currency on the same day.

Market Risk (audited)

Market Risk is the potential for fair value loss due to adverse

moves in financial markets.

A summary of our current policies and practices regarding

Market Risk management is provided in the Principal Risks

section (page 27).

The primary categories of Market Risk for the Group are:

• Interest Rate Risk: arising from changes in yield curves and

implied volatilities

• Foreign Exchange Risk: arising from changes in currency

exchange rates and implied volatilities

• Commodity Risk: arising from changes in commodity prices

and implied volatilities

• Credit Spread Risk: arising from changes in the price of

debt instruments and credit-linked derivatives and driven

by factors other than the level of risk-free interest rates

• Equity Risk: arising from changes in the prices of equities

and implied volatilities

Market Risk movements (audited)

Value at Risk (VaR) allows the Group to manage Market Risk

across the trading book and most of the fair valued non-

trading books.

Global financial markets generally proved resilient in 2025.

The first half of the year was marked by trade concerns due

to the US raising tariffs to the highest levels in a century and

causing developed market equities to record a year-to-date

fall of 17 per cent in April. The second half of the year saw

fiscal and monetary stimulus with all major asset classes

delivering positive returns and developed market equities

ending the year with a 22 per cent return from the low in April.

Highlights included: President Trump’s April tariff

announcement triggering a two-day $5 trillion stock market

retracement followed by recovery as tariffs were paused

and/or negotiated; the Federal Reserve cutting rates three

times in 2025, while the European Central Bank cut rates

eight times and the Bank of Japan hiked; oil prices reaching

$78/barrel in June 2025 after military confrontation between

Israel and Iran but falling to $60/barrel by year end on

increased supply and weakening demand; Big Technology

firms spending c$400 billion on AI infrastructure, raising

concerns about the viability of returns; notable defaults in Q4

in the Private Credit market, including First Brands Group and

Tricolor Holdings; and the price of gold increasing by 65 per

cent as it is increasingly perceived as a safe haven asset.

Trading VaR

The Group’s exposure to Market Risk arises predominantly

from the Trading book:

• The Group provides clients with access to markets,

facilitation of which entails the Group taking moderate

Market Risk positions. All trading teams support client

activity. There are no proprietary trading teams. Hence,

income earned from Market Risk-related activities is

primarily driven by the volume of client activity.

The average level of trading VaR in 2025 was $19.7 million,

7 per cent higher than 2024 ($18.4 million). The increase in

average trading VaR was driven by an increase in market

volatility combined with a VaR model enhancement to make

the model more responsive to market volatility.

Directors’ Report and Financial Statements 2025 | Standard Chartered 60

Daily Value at Risk (VaR at 97.5%, one day) (audited)

Trading

2025 2024

Average

$million

High

$million

Low

$million

Year end

$million

Average

$million

High

$million

Low

$million

Year end

$million

Commodity Risk 9.1 18.8 2.4 11.0 4.5 9.7 2.3 4.1

Interest Rate Risk 9.8 19.8 6.0 9.2 10.7 18.2 5.6 12.4

Credit Spread Risk 7.2 10.4 3.4 5.9 4.6 8.5 2.9 3.4

Foreign Exchange Risk 6.8 12.8 3.5 4.0 8.9 15.6 5.1 7.6

Diversification effect (13.2) NA NA (13.1) (10.3) NA NA (6.0)

Total

19.7 31.3 12.4 17.0 18.4 29.4 11.0 21.5

The following table sets out how trading VaR is distributed across the Group’s businesses:

Trading

2025 2024

Average

$million

High

$million

Low

$million

Year end

$million

Average

$million

High

$million

Low

$million

Year end

$million

Macro Trading

15.4 24.6 7.8 13.9 15.8 27.7 8.0 17.7

Global Credit 9.4 14.0 5.5 5.9 5.2 9.2 3.1 4.0

XVA 3.9 6.2 2.8 3.4 4.3 5.7 3.3 3.3

Diversification effect (9.0) NA NA (6.2) (6.9) NA NA (3.5)

Total

19.7 31.3 12.4 17.0 18.4 29.4 11.0 21.5

1 The total VaR is non-additive across risk types due to diversification effects, which is measured as the difference between the sum of the VaR by individual risk type

or business and the combined total VaR. As the maximum and minimum occur on different days for different risk types or businesses, it is not meaningful to

calculate a portfolio diversification benefit for these measures.

2 Macro Trading comprises the Rates, FX and Commodities businesses.

Structural foreign exchange exposures

The tables below set out the principal structural foreign exchange exposures (net of investment hedges) of the Group and the

net investment hedges using derivative financial instruments to partly cover the Group’s exposure to various foreign exchange

currencies.

2025 2024

Structural foreign

exchange exposure

(net of investment

hedges)

$million

Net investment

hedges

$million

Structural foreign

exchange exposure

(net of investment

hedges)

$million

Net investment

hedges

$million

Singapore dollar 3,931 – 3,279 –

Indian rupee 2,159 3,099 3,451 1,784

Malaysian ringgit 1,637 – 1,538 –

Euro 1,448 – 1,112 –

Bangladeshi taka 1,102 – 1,113 –

Thai baht 769 – 763 –

UAE dirham 624 1,852 797 1,470

Pakistani rupee 381 – 392 –

Indonesian rupiah 264 – 230 –

Other 3,971 29 3,512 –

Total 16,286 4,980 16,187 3,254

Changes in the valuation of these positions are taken to translation reserves. For analysis of the Group’s capital position and

requirements, refer to the Capital Review on page 71.

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 61

Non-Trading VaR

The Group’s exposure to Market Risk also arises from the Non-trading book:

• Treasury is required to hold a liquid assets buffer, much of which is held in high-quality marketable debt securities

• The Group underwrites and sells down loans, and invests in select investment grade debt securities with no trading intent

The average level of non-trading VaR in 2025 was $36.8 million, 55 per cent higher than 2024 ($23.8 million). The increase in

average non-trading VaR was driven by an increase in market volatility combined with a VaR model enhancement to make the

model more responsive to market volatility and larger US agency bonds inventory in the CIB non-trading portfolio.

Daily Value at Risk (VaR at 97.5%, one day) (audited)

Non-Trading

2025 2024

Average

$million

High

$million

Low

$million

Year end

$million

Average

$million

High

$million

Low

$million

Year end

$million

Interest Rate Risk 29.7 45.1 16.5 28.3 18.4 23.6 11.5 22.8

Credit Spread Risk 15.5 24.6 9.9 9.9 13.1 21.3 8.1 11.5

Commodity Risk 1.3 4.9 0.2 1.0 – – – –

Equity Risk – – – – 0.4 0.9 – –

Diversification effect (9.7) NA NA (6.5) (8.1) NA NA (4.2)

Total

36.8 51.0 22.8 32.7 23.8 30.5 17.4 30.1

The following table sets out how non-trading VaR is distributed across the Group’s businesses:

Non-Trading

2025 2024

Average

$million

High

$million

Low

$million

Year end

$million

Average

$million

High

$million

Low

$million

Year end

$million

Global Credit 22.5 31.4 9.9 21.6 4.0 9.5 2.3 8.2

Treasury 23.4 33.0 16.7 17.9 22.8 27.2 16.8 27.0

Macro Trading 1.3 4.9 0.2 1.0 - - - -

Listed Private Equity – – – – 0.4 0.9 – –

Diversification effect (10.4) NA NA (7.8) (3.4) NA NA (5.1)

Total

36.8 51.0 22.8 32.7 23.8 30.5 17.4 30.1

1 The non-trading book VaR does not include the loan underwriting business.

2 The total VaR is non-additive across risk types due to diversification effects, which is measured as the difference between the sum of the VaR by individual risk type

or business and the combined total VaR. As the maximum and minimum occur on different days for different risk types or businesses, it is not meaningful to

calculate a portfolio diversification benefit for these measures.

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 62

Liquidity and Funding risk

Liquidity and Funding Risk is the risk that the Group may not

have sufficient stable or diverse sources of funding to meet its

obligations as they fall due.

The Group follows the PLC Group’s Liquidity and Funding Risk

framework, which requires each country to ensure that it

operates within predefined liquidity limits and remains in

compliance with PLC Group’s liquidity policies and practices,

as well as local regulatory requirements.

The table below shows the composition of liabilities in which

customer deposits make up 52 per cent of total liabilities and

equity as at 31 December 2025, the majority of which are

current accounts, savings accounts and time deposits.

Composition of liabilities and equity Percentage

Equity 6.0%

Subordinated liabilities and other borrowed funds 1.4%

Debt securities in issue 9.8%

Derivative financial instruments 11.5%

Customer accounts 52.1%

Deposit by banks 5.9%

Other liabilities 13.3%

Total 100.0%

Liquidity and Funding risk metrics

The Group monitors key liquidity metrics regularly on a

country basis.

The following liquidity and funding Board Risk Appetite

metrics define the maximum amount and type of risk that the

Group is willing to assume in pursuit of its strategy: liquidity

coverage ratio (LCR), internal liquidity stress tests, recovery

capacity and net stable funding ratio (NSFR). In addition to

the Board Risk Appetite, there are further limits that apply at

Group and country level to measure and monitor specific risks

such as cross currency risk, concentration risk and short term

funding risk.

Liquidity coverage ratio (LCR)

The LCR aims to ensure that a bank has sufficient

unencumbered high-quality liquid assets to meet its liquidity

needs in a 30-calendar-day liquidity stress scenario. Standard

Chartered Bank is not regulated for LCR, however, the bank

and material subsidiaries in the consolidation group have

standalone LCR ratios above 100 per cent at 31 December

2025, calculated under the Liquidity Coverage Ratio (CRR)

Part of the PRA Rulebook.

Stressed coverage

Stress testing and scenario analysis are used to assess the

financial and management capability to continue to operate

effectively under extreme, but plausible, operating conditions

and to understand the potential threats to the PLC Group’s

liquidity and other financial resources.

The PLC Group’s internal liquidity adequacy assessment

process (‘ILAAP’) stress testing framework covers the

following stress scenarios:

• Standard Chartered-specific – Captures the liquidity

impact from an idiosyncratic event affecting Standard

Chartered only, with the rest of the market assumed to be

operating normally.

• Market wide – Captures the liquidity impact from

amarketwide crisis affecting all participants in

acountry,region or globally.

• Combined – Assumes both Standard Chartered-specific

and Market-wide events affect the PLC Group

simultaneously and hence is the most severe scenario.

All scenarios include, but are not limited to, modelled outflows

for retail and wholesale funding, off-balance sheet funding

risk, cross currency funding risk, intraday risk, franchise risk

and risks associated with a deterioration of a firm’s credit

rating. Concentration risk approach captures single name

and industry concentrations.

As of 31 December 2025, all entities within the Group follow a

consistent approach and met their individual ILAAP stress

test requirements within risk appetite, and as a result, ensure

Group has surplus liquidity on a consolidated basis to meet

the defined risk appetite.

Net stable funding ratio (NSFR)

The NSFR is a balance sheet metric which requires institutions

to maintain a stable funding profile in relation to an assumed

duration of their assets and off-balance sheet activities over

a one-year horizon. It is the ratio between the amount of

available stable funding (ASF) and the amount of required

stable funding (RSF). ASF factors are applied to balance

sheet liabilities and capital, based on their perceived stability

and the amount of stable funding they provide. Likewise, RSF

factors are applied to assets and off-balance sheet

exposures according to the amount of stable funding they

require. Standard Chartered Bank is not regulated for NSFR,

however the bank and material subsidiaries in the

consolidation have standalone NSFR ratios above 100 per

cent at 31 December 2025.

Liquidity pool

The liquidity value of the Group’s LCR eligible liquidity pool at

the reporting date was $142 billion. The figures in the below

table account for haircuts, currency convertibility and

portability constraints, and therefore are not directly

comparable with the consolidated balance sheet. A liquidity

pool is held to offset stress outflows as defined in the LCR per

PRA rulebook.

Group Company

2025

$million

2024

$million

2025

$million

2024

$million

Level 1 securities

Cash and balances

at central banks 67,309 69,453 50,444 42,180

Central banks,

governments/public

sector entities 58,290 42,389 28,941 23,714

Multilateral

development banks

and international

organisations 10,624 14,385 8,055 14,287

Other 396 343 376 343

Total Level 1

securities 136,619 126,570 87,816 80,524

Level 2A securities 4,541 4,060 3,101 3,306

Level 2B securities 833 411 799 410

Total LCR eligible

assets 141,993 131,041 91,716 84,240

Liquidity and Funding Risk

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 63

Liquidity analysis of the Group’s balance sheet (audited)

Contractual maturity of assets and liabilities

The following table presents assets and liabilities by maturity groupings based on the remaining period to the contractual

maturity date as at the balance sheet date on a discounted basis. Contractual maturities do not necessarily reflect actual

repayments or cash flows.

Within the tables below, cash and balances with central banks, interbank placements and investment securities that are fair

value through other comprehensive income are used by the Group principally for liquidity management purposes.

As at the reporting date, assets remain predominantly short-dated, with 65 per cent maturing in one year.

Group

2025

One

month

or less

$million

Between

one month

and

three

months

$million

Between

three

months

and

six months

$million

Between

six months

and

nine months

$million

Between

nine months

and

one year

$million

Between

one year

and

two years

$million

Between

two years

and

five years

$million

More than

five years

and

undated

$million

Total

$million

Assets

Cash and balances at central banks 62,045 – – – – – – 2,898 64,943

Derivative financial instruments 16,060 10,589 9,828 4,501 3,769 5,580 9,724 6,428 66,479

Loans and advances to banks

1,2

13,885 14,124 9,945 5,251 3,550 6,050 2,660 1,167 56,632

Loans and advances to customers

1,2

59,388 26,247 13,310 9,954 8,752 23,494 23,119 40,835 205,099

Investment securities

14,428 18,630 12,067 10,529 9,401 15,016 32,814 34,408 147,293

Other assets 4,614 33,972 1,089 992 1,362 388 31 5,234 47,682

Due from subsidiary undertakings

and other related parties 5,234 – – – – – – – 5,234

Total assets 175,654 103,562 46,239 31,227 26,834 50,528 68,348 90,970 593,362

Liabilities

Deposits by banks

1,3

26,152 1,966 1,340 690 612 2,062 2,222 4 35,048

Customer accounts

1,4

238,169 30,048 19,038 7,067 7,474 5,133 1,427 589 308,945

Derivative financial instruments 16,958 13,463 9,147 4,830 3,290 5,303 9,840 5,389 68,220

Senior debt

800 1,340 1,276 1,171 1,505 3,470 6,147 5,858 21,567

Other debt securities in issue

2,853 3,239 8,989 5,692 3,383 2,189 7,804 2,648 36,797

Due to parent companies and other

related undertakings 37,272 – – – – – – – 37,272

Other liabilities 6,468 26,620 871 547 163 1,350 1,800 3,881 41,700

Subordinated liabilities and other

borrowed funds 2 38 102 83 130 406 1,003 6,411 8,175

Total liabilities 328,674 76,714 40,763 20,080 16,557 19,913 30,243 24,780 557,724

Net liquidity gap (153,020) 26,848 5,476 11,147 10,277 30,615 38,105 66,190 35,638

1 Loans and advances, investment securities, deposits by banks, customer accounts and debt securities in issue include financial instruments held at fair value

through profit or loss, see Note 12 Financial instruments.

2 Loans and advances include reverse repurchase agreements and other similar secured lending of $77.4 billion.

3 Deposits by banks include repurchase agreements and other similar secured borrowing of $7.2 billion.

4 Customer accounts include repurchase agreements and other similar secured borrowing of $31.7 billion.

5 Senior debt maturity profiles are based upon contractual maturity, which may be later than call options over the debt held by the Group.

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 64

2024

One

month

or less

$million

Between

one month

and

three

months

$million

Between

three

months

and

six months

$million

Between

six months

and

nine months

$million

Between

nine months

and

one year

$million

Between

one year

and

two years

$million

Between

two years

and

five years

$million

More than

five years

and

undated

$million

Total

$million

Assets

Cash and balances at central banks 53,804 – – – – – – 2,861 56,665

Derivative financial instruments 23,025 15,570 11,128 6,655 3,632 6,858 9,013 6,836 82,717

Loans and advances to banks

1,2

11,412 13,483 7,778 5,090 3,333 7,517 2,881 1,172 52,666

Loans and advances to customers

1,2

49,102 42,519 18,989 8,543 9,355 15,843 18,433 37,358 200,142

Investment securities

7,519 15,812 9,680 4,581 7,223 18,256 26,620 38,750 128,441

Other assets 8,575 21,365 1,045 376 827 71 64 5,358 37,681

Due from subsidiary undertakings

and other related parties 5,222 – – – – – – – 5,222

Total assets 158,659 108,749 48,620 25,245 24,370 48,545 57,011 92,335 563,534

Liabilities

Deposits by banks

1,3

21,215 2,145 1,473 786 451 4,288 1,935 3 32,296

Customer accounts

1,4

221,755 25,761 15,092 5,243 6,086 6,420 2,358 426 283,141

Derivative financial instruments 22,341 17,329 10,929 6,454 3,640 6,168 9,285 6,431 82,577

Senior debt

606 1,711 2,431 1,934 849 2,362 6,293 4,373 20,559

Other debt securities in issue

2,672 2,314 6,479 4,521 4,726 806 6,673 3,290 31,481

Due to parent companies and other

related undertakings 28,246 – – – – – – – 28,246

Other liabilities 9,131 23,171 669 483 125 3,987 419 2,774 40,759

Subordinated liabilities and other

borrowed funds 8 36 – 73 19 206 532 9,485 10,359

Total liabilities 305,974 72,467 37,073 19,494 15,896 24,237 27,495 26,782 529,418

Net liquidity gap (147,315) 36,282 11,547 5,751 8,474 24,308 29,516 65,553 34,116

1 Loans and advances, investment securities, deposits by banks, customer accounts and debt securities in issue include financial instruments held at fair value

through profit or loss, see Note 12 Financial instruments.

2 Loans and advances include reverse repurchase agreements and other similar secured lending of $77.6 billion.

3 Deposits by banks include repurchase agreements and other similar secured borrowing of $8.4 billion.

4 Customer accounts include repurchase agreements and other similar secured borrowing of $34.7 billion.

5 Senior debt maturity profiles are based upon contractual maturity, which may be later than call options over the debt held by the Group.

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 65

Company

2025

One

month

or less

$million

Between

one month

and

three

months

$million

Between

three

months

and

six months

$million

Between

six months

and

nine months

$million

Between

nine months

and

one year

$million

Between

one year

and

two years

$million

Between

two years

and

five years

$million

More than

five years

and

undated

$million

Total

$million

Assets

Cash and balances at central banks 51,364 – – – – – – 984 52,348

Derivative financial instruments 16,137 10,484 9,672 4,417 4,018 5,725 9,770 6,408 66,631

Loans and advances to banks

1,2

9,352 9,339 6,833 3,983 1,960 4,787 2,044 1,168 39,466

Loans and advances to customers

1,2

33,110 14,914 10,551 7,569 7,148 19,444 13,810 15,089 121,635

Investment securities

4,486 6,792 8,926 8,420 6,672 13,317 29,269 31,794 109,676

Investment in subsidiary undertaking – – – – – – – 10,800 10,800

Other assets 2,817 21,577 477 487 984 82 20 2,482 28,926

Due from subsidiary undertakings

and other related parties 11,538 – – – – – – – 11,538

Total assets 128,804 63,106 36,459 24,876 20,782 43,355 54,913 68,725 441,020

Liabilities

Deposits by banks

1,3

21,654 1,459 916 564 595 1,959 1,774 – 28,921

Customer accounts

1,4

128,972 16,263 11,066 3,205 4,417 4,181 1,275 582 169,961

Derivative financial instruments 16,873 13,160 8,990 4,680 3,304 5,376 9,869 5,304 67,556

Senior debt

795 1,340 1,226 1,127 1,505 3,480 5,767 5,857 21,097

Other debt securities in issue

2,815 3,010 8,846 5,455 3,253 1,581 6,630 1,723 33,313

Due to parent companies and other

related undertakings 50,980 – – – – – – – 50,980

Other liabilities 5,706 19,011 767 541 115 1,197 1,595 1,168 30,100

Subordinated liabilities and other

borrowed funds – 1 18 – 20 – – 8,119 8,158

Total liabilities 227,795 54,244 31,829 15,572 13,209 17,774 26,910 22,753 410,086

Net liquidity gap (98,991) 8,862 4,630 9,304 7,573 25,581 28,003 45,972 30,934

1 Loans and advances, investment securities, deposits by banks, customer accounts and debt securities in issue include financial instruments held at fair value

through profit or loss, see Note 12 Financial instruments.

2 Loans and advances include reverse repurchase agreements and other similar secured lending of $68.7 billion.

3 Deposits by banks include repurchase agreements and other similar secured borrowing of $6.5 billion.

4 Customer accounts include repurchase agreements and other similar secured borrowing of $31.5 billion.

5 Senior debt maturity profiles are based upon contractual maturity, which may be later than call options over the debt held by the Group.

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 66

2024

One

month

or less

$million

Between

one month

and

three

months

$million

Between

three

months

and

six months

$million

Between

six months

and

nine months

$million

Between

nine months

and

one year

$million

Between

one year

and

two years

$million

Between

two years

and

five years

$million

More than

five years

and

undated

$million

Total

$million

Assets

Cash and balances at central banks 44,072 – – – – – – 1,161 45,233

Derivative financial instruments 23,313 15,490 10,848 6,513 3,741 6,913 9,901 6,125 82,844

Loans and advances to banks

1,2

7,857 9,599 5,346 3,886 2,403 5,762 2,575 1,173 38,601

Loans and advances to customers

1,2

30,561 20,110 14,562 6,837 7,989 13,176 10,613 14,200 118,048

Investment securities

3,726 7,620 7,679 3,010 5,953 15,370 23,346 36,449 103,153

Investment in subsidiary undertaking – – – – – – – 10,671 10,671

Other assets 7,595 15,370 652 234 359 33 51 2,781 27,075

Due from subsidiary undertakings

and other related parties 10,066 – – – – – – – 10,066

Total assets 127,190 68,189 39,087 20,480 20,445 41,254 46,486 72,560 435,691

Liabilities

Deposits by banks

1,3

17,521 1,933 1,385 758 440 3,506 1,883 – 27,426

Customer accounts

1,4

126,657 14,880 7,380 2,275 3,410 5,746 2,158 414 162,920

Derivative financial instruments 22,875 17,383 10,601 6,297 3,574 6,271 9,803 5,941 82,745

Senior debt

606 1,690 2,380 1,934 849 2,303 6,271 4,373 20,406

Other debt securities in issue

2,392 1,899 6,050 4,266 4,375 806 5,584 2,365 27,737

Due to parent companies and other

related undertakings 42,313 – – – – – – – 42,313

Other liabilities 9,648 16,332 648 432 92 3,888 321 – 31,361

Subordinated liabilities and other

borrowed funds 8 36 – 73 19 206 514 8,945 9,801

Total liabilities 222,020 54,153 28,444 16,035 12,759 22,726 26,534 22,038 404,709

Net liquidity gap (94,830) 14,036 10,643 4,445 7,686 18,528 19,952 50,522 30,982

1 Loans and advances, investment securities, deposits by banks, customer accounts and debt securities in issue include financial instruments held at fair value

through profit or loss, see Note 12 Financial instruments.

2 Loans and advances include reverse repurchase agreements and other similar secured lending of $72.6 billion.

3 Deposits by banks include repurchase agreements and other similar secured borrowing of $8.1 billion.

4 Customer accounts include repurchase agreements and other similar secured borrowing of $34.6 billion.

5 Senior debt maturity profiles are based upon contractual maturity, which may be later than call options over the debt held by the Group.

Behavioural maturity of financial assets and liabilities

The cash flows presented in the previous section reflect the cash flows that will be contractually payable over the residual

maturity of the instruments. However, contractual maturities do not necessarily reflect the timing of actual repayments or cash

flow. In practice, certain assets and liabilities behave differently from their contractual terms, especially for short-term customer

accounts, credit card balances and overdrafts, which extend to a longer period than their contractual maturity. On the other

hand, mortgage balances tend to have a shorter repayment period than their contractual maturity date. Expected customer

behaviour is assessed and managed on a country basis using qualitative and quantitative techniques, including analysis of

observed customer behaviour over time.

Maturity of financial liabilities on an undiscounted basis

The following table analyses the contractual cash flows payable for the Group’s financial liabilities by remaining contractual

maturities on an undiscounted basis (except for trading liabilities and derivatives not treated as hedging derivatives). The

financial liability balances in the table below will not agree to the balances reported in the consolidated balance sheet as the

table incorporates all contractual cash flows, on an undiscounted basis, relating to both principal and interest payments.

Derivatives not treated as hedging derivatives are included in the ‘On demand’ time bucket and not by contractual maturity.

Within the ‘More than five years and undated’ maturity band are undated financial liabilities, the majority of which relate to

subordinated debt, on which interest payments are not included as this information would not be meaningful, given the

instruments are undated. Interest payments on these instruments are included within the relevant maturities up to five years.

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 67

Group

2025

One

month

or less

$million

Between

one month

and

three

months

$million

Between

three

months

and

six months

$million

Between

six months

and

nine months

$million

Between

nine months

and

one year

$million

Between

one year

and

two years

$million

Between

two years

and

five years

$million

More than

five years

and

undated

$million

Total

$million

Deposits by banks 26,210 1,976 1,350 704 626 2,094 2,258 4 35,222

Customer accounts 239,259 30,237 19,289 7,224 7,673 5,210 1,486 614 310,992

Derivative financial instruments 67,741 1 19 16 42 41 267 163 68,290

Debt securities in issue 3,709 4,629 10,394 6,966 5,009 6,139 14,691 8,933 60,470

Due to parent companies and other

related undertakings 37,272 37,272

Subordinated liabilities and other

borrowed funds 32 55 137 87 137 448 1,365 11,251 13,512

Other liabilities 6,697 26,888 848 546 162 1,349 1,800 4,000 42,290

Total liabilities 380,920 63,786 32,037 15,543 13,649 15,281 21,867 24,965 568,048

2024

Deposits by banks 21,217 2,158 1,510 800 467 4,294 1,935 4 32,385

Customer accounts 222,004 25,930 15,321 5,388 6,322 6,600 2,528 457 284,550

Derivative financial instruments 81,886 23 26 8 3 74 247 310 82,577

Debt securities in issue 3,340 4,052 9,000 6,524 5,679 3,654 13,819 8,176 54,244

Due to parent companies and other

related undertakings 28,246 28,246

Subordinated liabilities and other

borrowed funds 33 132 89 191 89 534 1,450 14,350 16,868

Other liabilities 10,019 23,101 659 464 125 3,925 419 2,981 41,693

Total liabilities 366,745 55,396 26,605 13,375 12,685 19,081 20,398 26,278 540,563

Company

2025

One

month

or less

$million

Between

one month

and

three

months

$million

Between

three

months

and

six months

$million

Between

six months

and

nine months

$million

Between

nine months

and

one year

$million

Between

one year

and

two years

$million

Between

two years

and

five years

$million

More than

five years

and

undated

$million

Total

$million

Deposits by banks 21,711 1,468 920 574 605 1,979 1,774 – 29,031

Customer accounts 129,277 16,383 11,220 3,286 4,547 4,248 1,325 602 170,888

Derivative financial instruments 67,143 – 1 1 10 26 247 160 67,588

Debt securities in issue 3,666 4,399 10,195 6,684 4,879 5,522 13,124 7,982 56,451

Due to parent companies and other

related undertakings 50,980 50,980

Subordinated liabilities and other

borrowed funds 32 55 137 87 137 448 1,345 11,269 13,510

Other liabilities 4,303 19,276 744 539 114 1,197 1,595 3,298 31,066

Total liabilities 277,112 41,581 23,217 11,171 10,292 13,420 19,410 23,311 419,514

2024

Deposits by banks 17,523 1,945 1,421 771 456 3,511 1,883 – 27,510

Customer accounts 126,792 14,989 7,501 2,351 3,561 5,919 2,312 438 163,863

Derivative financial instruments 82,072 23 25 8 3 68 237 309 82,745

Debt securities in issue 3,057 3,608 8,506 6,251 5,305 3,534 12,621 7,424 50,306

Due to parent companies and other

related undertakings 42,313 42,313

Subordinated liabilities and other

borrowed funds – 132 41 191 92 138 1,619 14,121 16,334

Other liabilities 8,481 16,293 648 432 92 3,888 321 1,821 31,976

Total liabilities 280,238 36,990 18,142 10,004 9,509 17,058 18,993 24,113 415,047

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 68

The following table provides the estimated impact to a

hypothetical base case projection of the Group’s earnings

under the following scenarios:

• A 50 basis point parallel interest rate shock (up and down)

to the current market-implied path of rates, across all yield

curves.

• A 100 basis point parallel interest rate shock (up and

down) to the current market-implied path of rates, across

all yield curves.

These interest rate shock scenarios assume all other

economic variables remain constant. The sensitivities shown

represent the estimated change to a hypothetical base case

projected net interest income (NII), plus the change in interest

rate implied income and expense from FX swaps used to

manage banking book currency positions, under the different

interest rate shock scenarios.

The base case projected NII is based on the current market-

implied path of rates and forward rate expectations. The NII

sensitivities below stress this base case by a further 50 or

100bps. Actual observed interest rate changes will likely differ

from market expectation. Accordingly, the shocked NII

sensitivity does not represent a forecast of the Group’s net

interest income.

The interest rate sensitivities are indicative stress tests and

based on simplified scenarios, estimating the aggregate

impact of an unanticipated, instantaneous parallel shock

across all yield curves over a one-year horizon, including the

time taken to implement changes to pricing before becoming

effective. The assessment assumes that the size and mix of

the balance sheet remain constant and that there are no

specific management actions in response to the change in

rates. No assumptions are made in relation to the impact on

credit spreads in a changing rate environment.

Significant modelling and behavioural assumptions are made

regarding scenario simplification, market competition,

pass-through rates, asset and liability re-pricing tenors, and

price flooring. In particular, the assumption that interest rates

of all currencies and maturities shift by the same amount

concurrently, and that no actions are taken to mitigate the

impacts arising from this are considered unlikely. Reported

sensitivities will vary over time due to a number of factors

including changes in balance sheet composition, market

conditions, customer behaviour and risk management

strategy. Therefore, while the NII sensitivities are a relevant

measure of the Group’s interest rate exposure, they should

not be considered an income or profit forecast.

Net interest income sensitivity (audited)

Estimated one-year impact to earnings from a parallel shift

in yield curves at the beginning of the period of:

2025

USD bloc

$million

SGD bloc

$million

EUR bloc

$million

Other

currency

bloc

$million

Total

$million

+ 50 basis points 10 10 10 90 120

- 50 basis points (20) (10) (10) (90) (130)

+ 100 basis points 10 30 20 180 240

- 100 basis points (30) (30) (30) (180) (270)

2024

+ 50 basis points 20 10 10 80 120

- 50 basis points (20) (20) (10) (90) (140)

+ 100 basis points 30 20 20 150 220

- 100 basis points (50) (40) (20) (170) (280)

As at 31 December 2025, the Group estimates the one-year impact of an instantaneous, parallel increase across all yield curves

of 50 basis points to increase projected NII by $120 million. The equivalent impact from a parallel decrease of 50 basis points

would result in a reduction in projected NII of $130 million. The Group estimates the one-year impact of an instantaneous,

parallel increase across all yield curves of 100 basis points to increase projected NII by $240 million. The equivalent impact from

a parallel decrease of 100 basis points would result in a reduction in projected NII of $270 million.

The benefit from rising interest rates is primarily from reinvesting at higher yields and from assets re-pricing faster and to a

greater extent than deposits.

Interest Rate Risk in the Banking Book

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 69

Operational and Technology Risk

Operational and Technology Risk profile

The Group follows PLC Group in terms of monitoring and

managing our Operational and Technology risks. Details of

these can be found on page 229 of the PLC Group’s 2025

Annual Report.

Operational Risk events and losses

Operational losses are one indicator of the effectiveness and

robustness of our non-financial risk and control environment.

The Group’s profile of operational loss events in 2025 and

2024 is summarised in the table below, which shows the

distribution of gross operational losses by Basel business line.

In 2025, Payments and Settlements is higher due to high value

payment related events and Retail Banking due to prior

period adjustments.

Distribution of Operational Losses by Basel business line

% Loss

2025 2024¹

Agency Services 12.4 0.0

Asset Management 0.0 0.0

Commercial Banking 7.0 1.7

Corporate Finance 0.0 0.0

Corporate Items 11.3 82.5

Payment and Settlements 40.4 8.7

Retail Banking 22.2 4.1

Retail Brokerage 0.0 0.0

Trading and Sales 6.7 3.0

1 Losses in 2024 have been restated to include incremental events recognised

in 2025.

2 Operational losses for 2024 and 2025 are based on data as at 5 January

2026.

The Group’s profile of operational loss events in 2025 and

2024 is also summarised by Basel event type in the table

below. It shows the distribution of gross operational losses by

Basel event type.

Distribution of Operational Losses by Basel event type

% Loss

2025 2024¹

Business disruption and system failures 2.5 0.8

Client products and business practices 1.5 1.3

Damage to physical assets 0.0 0.0

Employment practices and workplace

safety 0.0 0.1

Execution delivery and process

management 78.2 95.7

External fraud 9.8 1.7

Internal fraud 8.0 0.4

1 Losses in 2024 have been restated to include incremental events

recognisedin 2025.

2 Operational losses for 2024 and 2025 are based on data as at

5 January2026.

Other principal risks

The losses arising from operational failures for other principal

and integrated risks are reported as operational losses.

Operational losses do not include operational risk-related

credit impairments.

Operational and Technology Risk

Risk review and Capital review

Directors’ Report and Financial Statements 2025 | Standard Chartered 70

Capital management and governance

Capital disclosures in this document are provided on the

basisof Standard Chartered Bank (Group), being Standard

Chartered Bank and its subsidiaries.

Standard Chartered Bank is authorised by the Prudential

Regulation Authority (PRA) and regulated by the Financial

Conduct Authority (FCA).

Capital requirements are set by the PRA for Standard

Chartered Bank on a solo consolidation basis. The solo-

consolidated group differs from Standard Chartered

Bank(Company) in that it includes the full consolidation

offour subsidiaries, namely Standard Chartered Holdings

(International) B.V., Standard Chartered Grindlays PTY Limited,

SCMB Overseas Limited and Corrasi Covered BondsLLP.

The Group continues to operate through its branches

andvarious subsidiaries, all of which remain well-capitalised

in accordance with their applicable risk appetites

andapplicable regulatory requirements.

The Group’s CET1 capital ratio remains stable at 13.3 per cent

as of 31 December 2025 with a leverage ratio of 4.8 per cent.

The Group maintains high levels of loss absorbing capacity.

RWAs increased by $6.6 billion to $175.8 billion. CET1 capital

increased by $0.9 billion to $23.4 billion, driven primarily by

profits of $3.4 billion and the foreign currency translation

impact of$0.5 billion. These increases were partially offset

bydistributions of $2.7 billion and higher regulatory

deductionsof $0.3 billion (largely from intangible assets).

Capital ratios

2025 2024

CET1 13.3% 13.3%

Tier 1 capital 16.7% 16.8%

Total capital 21.5% 23.0%

Capital review

Risk review and Capital review

Capital base

(audited)

2025

$million

2024

$million

CET1 capital instruments and reserves

Capital instruments and the related share premium accounts 20,893 20,893

Of which: share premium accounts 296 296

Retained earnings 10,090 10,215

Accumulated other comprehensive income (and other reserves) (6,065) (6,939)

Non-controlling interests (amount allowed in consolidated CET1) 198 178

Independently audited year-end profits 3,377 2,953

Foreseeable dividends (192) (193)

CET1 capital before regulatory adjustments 28,301 27,107

CET1 regulatory adjustments

Additional value adjustments (prudential valuation adjustments) (532) (426)

Intangible assets (net of related tax liability) (4,014) (3,675)

Deferred tax assets that rely on future profitability (excludes those arising from temporary differences) (15) (30)

Fair value reserves related to net losses on cash flow hedges (135) (8)

Deduction of amounts resulting from the calculation of excess expected loss (364) (417)

Net gains on liabilities at fair value resulting from changes in own credit risk 308 246

Defined-benefit pension fund assets (99) (115)

Fair value gains arising from the institution’s own credit risk related to derivative liabilities (65) (91)

Exposure amounts which could qualify for risk weighting of 1250% (21) (116)

Total regulatory adjustments to CET1 (4,937) (4,632)

CET1 capital 23,364 22,475

Additional Tier 1 capital (AT1) instruments

5,959 5,917

AT1 regulatory adjustments (20) (20)

Tier 1 capital 29,303 28,372

Tier 2 capital instruments 8,498 10,583

Tier 2 regulatory adjustments (30) (30)

Tier 2 capital 8,468 10,553

Total capital 37,771 38,925

Total risk-weighted assets (unaudited) 175,845 169,223

1 Capital base is prepared on the regulatory scope of consolidation.

2 Includes Instrument issued by subsidiaries that are given recognition in AT1 Capital.

Leverage ratio

Capital and total exposures

2025

$million

2024

$million

Tier 1 capital 29,303 28,372

Total leverage ratio exposures 613,113 559,409

Leverage ratio 4.8% 5.1%

Directors’ Report and Financial Statements 2025 | Standard Chartered 71

Independent Auditor’s report to the

members of Standard Chartered Bank

Opinion

In our opinion:

• Standard Chartered Bank’s Group financial statements and Parent Company financial statements (the “financial

statements”) give a true and fair view of the state of the Group’s and of the Parent Company’s affairs as at 31 December

2025 and of the Group’s profit for the year then ended;

• the Group financial statements have been properly prepared in accordance with UK-adopted International Accounting

Standards (UK IAS) and International Financial Reporting Standards (IFRS) as adopted by the European Union (EU IFRS);

• the Parent Company financial statements have been properly prepared in accordance with UK IAS as applied in accordance

with section 408 of the Companies Act 2006; and

• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements of Standard Chartered Bank (the ‘Company’ or the ‘Parent Company’) and its

subsidiaries, interests in associates, and jointly controlled entities (together with the Company—the ‘Group’) for the year ended

31 December 2025 which comprise:

Group Company

Consolidated income statement for the year ended

31 December 2025;

Balance sheet as at 31 December 2025;

Consolidated statement of comprehensive income for the

year then ended;

Cash flow statement for the year then ended;

Consolidated balance sheet as at 31 December 2025; Statement of changes in equity for the year then ended; and

Consolidated statement of changes in equity for the year

then ended;

Related notes 1 to 39 to the financial statements, including:

material accounting policy information.

Consolidated cash flow statement for the year then ended; Risk review and Capital review disclosures marked as

‘audited’ from page 23 to page 71.

Related notes 1 to 39 to the financial statements, including:

material accounting policy information;

Risk review and Capital review disclosures marked as

‘audited’ from page 23 to page 71.

The financial reporting framework that has been applied

intheir preparation is applicable law and UK IAS and EU IFRS;

and as regards the Parent Company financial statements,

UKIAS as applied in accordance with section 408 of the

Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International

Standards on Auditing (UK) (ISAs (UK)) and applicable

law.Our responsibilities under those standards are further

described in the Auditor’s responsibilities for the audit of

thefinancial statements section of our report. We believe

that the audit evidence we have obtained is sufficient

andappropriate to provide a basis for our opinion.

Independence

We are independent of the Group and the Company in

accordance with the ethical requirements that are relevant

toour audit of the financial statements in the UK, including

the FRC’s Ethical Standard as applied to listed public interest

entities, and we have fulfilled our other ethical responsibilities

in accordance with these requirements.

The non-audit services prohibited by the FRC’s Ethical

Standard were not provided to the Group or the Company

and we remain independent of the Group and the Company

in conducting the audit.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that

the directors’ use of the going concern basis of accounting

inthe preparation of the financial statements is appropriate.

Our evaluation of the directors’ assessment of the Group and

the Parent Company’s ability to continue to adopt the going

concern basis of accounting included:

• performing a risk assessment to identify factors that could

impact the going concern basis of accounting, including

consideration of principal and emerging risks;

• assessing management’s going concern assessment,

including the Group’s forecast capital, liquidity and

leverage ratios over the period of twelve months from

24 February 2026, to evaluate the headroom against

minimum regulatory requirements and the risk appetite set

by the directors;

• engaging EY economic specialists to assess and challenge

the reasonableness of assumptions used to develop the

forecasts in the Corporate Plan (5-year forward looking

plan of the business) and evaluating the accuracy of

historical forecasting;

• assessing the Group’s funding plan and repayment plan

for funding instruments maturing over the period of twelve

months from 24 February 2026;

• understanding and evaluating credit rating agency ratings;

Directors’ Report and Financial Statements 2025 | Standard Chartered 72

• engaging EY prudential regulatory specialists to evaluate

the results of management’s stress testing on funding,

liquidity, and regulatory capital;

• reviewing correspondence with prudential regulators and

authorities for matters that may impact the going concern

assessment; and

• evaluating the going concern disclosure included

innote1to the financial statements to assess that

thedisclosure was appropriate and in conformity

withthereporting standards.

Based on the work we have performed, we have not

identified any material uncertainties relating to events or

conditions that, individually or collectively, may cast

significant doubt on the Group and the Parent Company’s

ability to continue as a going concern for a period of twelve

months from 24 February 2026.

Our responsibilities and the responsibilities of the directors

with respect to going concern are described in the relevant

sections of this report. However, because not all future events

or conditions can be predicted, this statement is not a

guarantee as to the Group’s and the Parent Company’s

ability to continue as a going concern.

Independent Auditor’s Report to the members of Standard Chartered Bank

Overview of our audit approach

Audit scope We performed an audit of the complete financial information of 6 components in 5 countries and

audit procedures on specific balances for a further 5 components in 4 countries.

We performed central procedures for certain audit areas and balances as outlined in Tailoring the

scope section of our report.

Key audit matters Credit impairment

Impairment of investments in subsidiary undertakings

Valuation of financial instruments held at fair value with higher risk characteristics.

Materiality Overall Group materiality of $258m which represents 5% of Adjusted Profit before Tax.

An overview of the scope of the Parent Company

and Group audits

Tailoring the scope

In the current year, our audit scoping has been updated to

reflect the new requirements of ISA (UK) 600 (Revised).

Wehave followed a risk-based approach when developing

our audit approach to obtain sufficient appropriate audit

evidence on which to base our audit opinion. We performed

risk assessment procedures, with input from our component

auditors, to identify and assess risks of material misstatement

of the Group financial statements and identified significant

accounts and disclosures. When identifying components

atwhich audit work needed to be performed to respond

tothe identified risks of material misstatement of the Group

financial statements, we considered our understanding

oftheGroup and its business environment, the applicable

financial framework, the Group’s system of internal control

atthe entity level, the existence of centralised processes,

theIT application environment, and any relevant internal

audit results.

We took a centralised approach to auditing certain

processes and controls, as well as the substantive testing of

specific balances. This included audit work over the Group’s

Global Business Services shared services centre (SSC),

Corporate and Investment Banking SSC, Credit Impairment

SSC and Global Technology.

We determined that centralised audit procedures can be

performed across certain components for the key audit

matters outlined later in this report, and for other audit areas,

including: Revenue recognition; Management override of

controls; Technology costs; Impairment of goodwill; Going

concern and long-term viability; Hedge accounting; Climate

risk; Share based payments; Taxation; Legal and regulatory

matters; Centralised reconciliations; Onerous contracts,

including impairment of leased properties; IT matters; and

certain transformation programmes.

In addition to the above areas, for select components in

Germany, Japan, Saudi Arabia and Cote D’Ivoire, the primary

audit engagement team (“the Primary Audit Team”)

performed certain procedures centrally over the cash

balances as at 31 December 2025. These components are

separate to those described below.

We identified 11 components in 9 countries as individually

relevant to the Group due a significant risk or an area of

higher assessed risk of material misstatement of the Group

financial statements being associated with the components,

or due to financial size of the component relative

totheGroup.

For those individually relevant components, we identified the

significant accounts where audit work needed to be

performed at these components by applying professional

judgement, having considered the Group significant accounts

on which centralised procedures are performed, the reasons

for identifying the financial reporting component as an

individually relevant component and the size of the

component’s account balance relative to the Group

significant financial statement account balance.

We then considered whether the remaining group significant

account balances that are not subject to audit procedures, in

aggregate, could give rise to a risk of material misstatement

of the Group financial statements. We did not identify

additional scope required as we assessed the residual risk

tonot be material.

Directors’ Report and Financial Statements 2025 | Standard Chartered 73

Having identified the components for which work will

beperformed, we determined the scope to assign to

eachcomponent.

Of the 11 components selected, we designed and performed

audit procedures on the entire financial information of 6

components (“full scope components”). For 5 components, we

designed and performed audit procedures on specific

significant financial statement account balances or

disclosures of the financial information of the component

(“specific scope components”).

Group’s Absolute PBT Group’s Total assets Group’s Absolute Operating Income

2025 2024 2025 2024 2025 2024

Full scope components 54% 54% 83% 84% 63% 61%

Specific scope components 15% 11% 4% 4% 12% 10%

Specified procedures 0% 3% 0% 0.50% 0% 3%

Total 68% 68% 87% 89% 75% 74%

Of the remaining components that together represent 32% of

the Group’s absolute PBT, none are individually greater than

4.5%. For certain of these components, we performed other

procedures at the Group level which included: performing

analytical reviews at the Group financial statement level,

evaluating entity level controls, performing audit procedures

on the centralised shared service centres, testing of

consolidation journals and intercompany eliminations,

inquiring with certain overseas EY teams on the outcome

ofprior year local statutory audits (where audited by EY)

toidentify any potential risks of material misstatement

totheGroup financial statements. We also had regard

forthe extent of centralised procedures in respect of key

audit matters.

Involvement with component teams

In establishing our overall approach to the Group audit, we

determined the type of work that needed to be undertaken

at each of the components by us, the Primary Audit Team, or

by component auditors from other firms operating under our

instruction. All of the direct components of the Group (full or

specific scope) were audited by EY global network firms.

Audit procedures were performed on 2 full scope components

(including the audit of the Company) directly by the Primary

Audit Team (EY London) in the United Kingdom. Where

components were audited by the Primary Audit Team, this

was under the direction and supervision of the Senior

Statutory Auditor. For the remaining 9 components, where

the work was performed by component auditors, we

determined the appropriate level of involvement to enable us

to determine that sufficient and appropriate audit evidence

had been obtained as a basis for our opinion on the Group as

a whole.

In addition to the above, the Primary Audit Team also

performed full-scope audit procedures on components

related to the Group consolidation process.

In addition, the Group has centralised processes and controls

over key areas in its shared service centres. Members of the

Primary Audit Team undertook direct oversight, review and

coordination of our shared service centre audits. The Primary

Audit Team continued to follow a programme f planned

visitsto component teams and shared service centres.

Duringthe current year’s audit cycle, visits were undertaken

by the Primary Audit Team to the component teams in the

following locations:

• India (including the shared services centre)

• Malaysia (including the shared services centre)

• Singapore (including the shared services centre)

• United Arab Emirates

• United States of America

• Kenya

These visits involved discussing the audit approach with the

component team and any issues arising from their work,

meeting with local management, attending planning and

closing meetings, and reviewing relevant audit working

papers on risk areas. In addition to the site visits, the Primary

Audit Team interacted regularly with the component and

SSC audit teams where appropriate during various stages of

the audit, reviewed relevant working papers and deliverables

to the Primary Audit Team, and was responsible for the scope

and direction of the audit process.

The Primary Audit Team also undertook video conference

meetings with component and SSC audit teams and

management. These virtual meetings involved discussing the

audit approach and any issues arising from their work, as well

as performing remote reviews of key audit workpapers.

This, together with the procedures performed at the Group

level, gave us sufficient and appropriate evidence for our

opinion on the Group and Company financial statements.

Independent Auditor’s Report to the members of Standard Chartered Bank

Directors’ Report and Financial Statements 2025 | Standard Chartered 74

Climate change

Stakeholders are increasingly interested in how climate

change will impact economy, including the banking sector,

and further how this may consequently impact the valuation

of assets and liabilities held on bank balance sheets.

TheGroup manages climate risk according to the

characteristics of the impacted principal risk types.

Theassessment of that risk by the Group is explained

onpage 29 in the ‘Risk profile’ section, and in the Strategic

Report on pages 9-10 and 14-15, where management has

alsoexplained their climate commitments.

All of these disclosures form part of the ‘Other information’,

rather than the audited financial statements. Our procedures

on these unaudited disclosures therefore consisted solely of

considering whether they are materially inconsistent with the

financial statements or our knowledge obtained in the course

of the audit or otherwise appear to be materially misstated,

in line with our responsibilities on ‘Other information’.

In planning and performing our audit we assessed

thepotential impacts of climate change on the Group’s

business and any consequential material impact on its

financial statements.

The Group has explained in the Strategic Report how they

have reflected the impact of climate change in their financial

statements, including how this aligns with their commitment

to the aspirations of the Paris Agreement to achieve net zero

emissions by 2050. Significant judgements and estimates

relating to climate change are included in the section

‘Climate change impact on the Group’s balance sheet’

ofnote 1 to the financial statements. As stated in these

disclosures, the Group has considered Climate change

tobean area which can impact accounting estimates

andjudgements through the uncertainty of future events

andthe impact of that uncertainty on the Group’s assets

andliabilities.

Our audit effort in considering the impact of climate change

on the financial statements was focused on evaluating

whether management’s assessment of the impact of climate

risk has been appropriately reflected in the valuation of

assets and liabilities, where material and where it can be

reliably measured, following the currently effective

requirements of UK IAS and EU IFRS. This was in the context

of the Group’s process being limited, given that this is a highly

evolving area, as a result of limitations in the data available

and the nascent modelling capabilities, and as the Group

considers how it further embeds its climate ambitions into the

planning process.

As part of this evaluation, we performed our own risk

assessment, supported by our climate change specialists, to

determine the risks of material misstatement in the financial

statements from climate change which needed to be

considered in our audit.

We also challenged the Directors’ considerations of climate

change risks in their assessment of going concern and

viability, and the associated disclosures. Where

considerations of climate change were relevant to our

assessment of going concern, these are described above.

Based on our work, we have considered the impact of climate

change on the financial statements to impact certain key

audit matters. Details of our procedures and findings are

included in our explanation of key audit matters below.

Key audit matters

Key audit matters are those matters that, in our professional

judgment, were of most significance in our audit of the

financial statements of the current period and include the

most significant assessed risks of material misstatement

(whether or not due to fraud) that we identified. These

matters included those which had the greatest effect on: the

overall audit strategy, the allocation of resources in the audit;

and directing the efforts of the engagement team. These

matters were addressed in the context of our audit of the

financial statements as a whole, and in our opinion thereon,

and we do not provide a separate opinion on these matters.

Risk Our response to the risk

Credit Impairment

Refer to Note 8 of the financial statements; and relevant

credit risk disclosures (including pages 30 - 59)

At 31 December 2025, the Group reported a credit

impairment balance sheet provision of $3,090 million (2024:

$3,204 million), and an income statement charge of

$248 million (2024: $15 million).

Determining expected credit losses is highly judgemental

and subjective as a result of the significant uncertainty

associated with the estimation of expected future credit

losses. Assumptions with increased complexity in respect

ofthe timing and measurement of expected credit losses

(ECL) include:

We evaluated the adequacy of the design of the Group’s

controls over material ECL balances. Operating

effectivenesswas tested for controls upon which

weintended to place reliance.

We performed an overall stand-back assessment of the ECL

allowance in total and by stage. We considered the overall

level of economic uncertainty, credit quality of the Group’s

portfolios, the impact of sovereign risk, and the uncertainty

owing to the US trade and tariff policy. We performed peer

benchmarking to the extent that this was considered

relevant and investigated and sought explanations for any

areas identified as being outliers. Our assessment also

included the evaluation of the macroeconomic environment

by considering trends in the economies and countries to

which the Group is exposed.

Independent Auditor’s Report to the members of Standard Chartered Bank

Directors’ Report and Financial Statements 2025 | Standard Chartered 75

Risk Our response to the risk

Staging – The determination of what constitutes a

significant increase in credit risk and default and consequent

complete and timely allocation of qualifying assets to the

appropriate stage in accordance with IFRS 9.

Modelled output – Appropriateness of accounting

interpretations, modelling assumptions, modelling

techniques and the data used to determine the Probability

of Default (PD), Loss Given Default (LGD) and Exposure at

Default (EAD) used to calculate the ECL.

Multiple economic scenarios – The determination of the

appropriateness of economic variables, the future

forecasting of these variables and the approach to

determine both the base case forecast and the Monte Carlo

Simulation. The assessment of non-linearity produced by the

Monte Carlo simulation, the benchmarking of the output

tothe discrete scenarios and the evaluation of the need for

anyoverlays.

Management overlays and post-model adjustments

– Appropriateness, completeness and valuation of risk event

overlays to capture risks not identified by the credit

impairment models, including the consideration of the risk of

management override.

Individually assessed ECL allowances – Measurement of

individual provisions including the assessment of probability

weighted recovery scenarios, existence and valuation of

collateral, and expected future cashflows.

In 2025, the most material factors impacting the ECL

weregeopolitical uncertainty, the impact of the US tariffs,

and the idiosyncratic risks at a sovereign and sector level.

Inaddition, we considered the impact of climate as part

ofimpairment provisioning.

Overall, economic uncertainty remains elevated with a

consequent increased risk to the downside and therefore in

line with the prior year there continues to be an elevated risk

of a material misstatement to ECL.

Staging – We evaluated the criteria used to allocate

financial assets within the scope of IFRS 9 to stage 1, 2 or 3.

We reperformed the staging distribution for all relevant

financial assets. We performed sensitivity analysis to assess

the impact of changes to the quantitative thresholds on the

EAD and ECL. We reperformed the Group’s staging

effectiveness and investigated any differences or anomalies.

To test the completeness of the identification of significant

increase in credit risk, we challenged the credit risk ratings

(including appropriate operation of quantitative backstops)

for a sample of performing accounts and other accounts

exhibiting risk characteristics such as financial difficulty,

deferment of payment, late payment and heightened risk

accounts appearing on the watchlist.

Modelled output – With the support of EY credit risk

modelling specialists, we performed a risk assessment over

the models used in the ECL calculation using independently

determined quantitative and qualitative criteria, and

applied this risk rating to select a sample of models to test.

For the selected models, we assessed the reasonableness of

underlying assumptions, methodology and model build. This

included evaluating model design and formulae, model

implementation and validation, model monitoring, sensitivity

testing and independently recalculating the Probability of

Default, Loss Given Default and Exposure at Default

parameters for a sample of higher risk models.

To evaluate data quality, we performed sample testing over

the completeness and accuracy of key data elements

assessed to be material to the modelled ECL output, back to

source evidence. We sample tested material data

adjustments to the modelled output.

Economic scenarios – In collaboration with our economic

specialists, we challenged the completeness and

appropriateness of the macroeconomic variables used as

inputs to the ECL models.

Our economic specialists assisted in evaluating the

reasonableness of the base forecast for a sample of

macroeconomic variables most pertinent to the Group’s ECL

calculation. Procedures performed included benchmarking

the forecast for a sample of macroeconomic variables to

peers, historical data analysis and examination of a variety

of global external sources.

We assessed the appropriateness of the output of the

Monte Carlo simulation by performing a sensitivity test

across a sample of economic variables, spanning multiple

markets, using an independent challenger model.

Independent Auditor’s Report to the members of Standard Chartered Bank

Directors’ Report and Financial Statements 2025 | Standard Chartered 76

Risk Our response to the risk

We assessed the reasonableness of the non-linearity

produced by the Monte Carlo simulation and the

appropriateness of management’s overlay. Our economists,

assessed and challenged the Group’s choice of discrete

scenarios to benchmark the output from the Monte Carlo

model and determine the sensitivity analysis as set out on

pages 55 to 58 in the annual report. This challenge included

the choice of discrete scenarios, the weights applied to each

scenario and the quantum of the non-linearity overlay. We

also performed a stand-back assessment by benchmarking

the uplift and overall ECL charge and provision coverage

topeers.

Management overlays and post model adjustments

– Wechallenged the completeness and appropriateness

ofoverlays used for risks not captured by the models,

andevaluated the outcome of model monitoring procedures

that highlighted model deficiencies including the need

forpost model adjustments. We focused our challenge

onidiosyncratic risks at a sector and sovereign level,

including the impact of climate, and the results of model

monitoring procedures. Our procedures included assessing

the need for management overlays and post model

adjustments, evaluating the assumptions and judgments

used to determine these taking current market conditions

into account, and computing independent ranges

whereappropriate.

Individually assessed ECL allowances – We selected a

sample of individually assessed provisions and challenged

management’s level of provisioning by performing

recalculation procedures. These procedures included

challenging management’s forward looking economic

assumptions, the appropriateness of the recovery outcomes,

cashflow profiles and timings, and the individual probability

weightings used for each scenario.

We also engaged our valuation specialists to independently

assess the value of collateral used in management’s

calculations on a sample basis.

In conjunction with our technical accounting experts, we

considered the appropriateness of the accounting treatment

applied for material loan restructurings.

Independent Auditor’s Report to the members of Standard Chartered Bank

Directors’ Report and Financial Statements 2025 | Standard Chartered 77

Risk Our response to the risk

Impairment assessment of investments in subsidiary

undertakings

Refer to Note 31 of the financial statements.

In the Parent Company financial statements as at

31 December 2025, the investment in subsidiary undertakings

balance was $10,800 million (2024: $10,671 million).

On an annual basis, management is required to perform an

assessment for indicators of impairment in respect of

investments in subsidiary undertakings. Where indicators of

impairment are identified, the recoverable amount of the

investment should be estimated.

The Group identified indicators of impairment of investments

in subsidiary undertakings, including macroeconomic and

geopolitical factors which have an impact on the financial

position and performance of the subsidiaries.

In assessing for indicators of impairment, among other

procedures, management compares the Net Asset Value

(‘NAV’) of the subsidiary to the carrying value of each direct

subsidiary of the Parent Company. Where the net assets do

not support the carrying value, the recoverable amount is

estimated by determining the higher of value in use (VIU) or

fair value less cost to sell.

We obtained an understanding of management’s process

and evaluated the design of controls. Our audit strategy was

fully substantive.

We assessed the appropriateness of the Group’s

methodology for testing the impairment of investments

insubsidiary undertakings for compliance with

accountingstandards.

We compared the NAV of the subsidiaries to their carrying

value to consider whether any impairment or reversal of

impairment recognised in the Parent Company financial

results was reasonable. Where the NAV did not support

thecarrying value, we obtained the VIU models

toassesswhether this was a reasonable basis for

therecoverable amount.

We performed the following procedures on the VIU models:

• Agreed the material inputs in the VIU models

totheirsource and tested the mathematical

accuracyofthe models.

• Engaged EY specialists to assess the reasonableness of

the regulatory capital haircut adjustment to future

profitability forecasts and to calculate an independent

range for assumptions underlying the VIU calculations,

such as the discount rate and long-term growth rate.

Key observations communicated

totheAuditCommittee

How we scoped our audit to respond to the riskand

involvement with component teams

We communicated that the Group ECL provisions were

reasonably estimated and materially in compliance with IFRS

9. We highlighted the following matters to the Audit

Committee that contributed to our overall conclusion:

• Our evaluation of the appropriateness of the significant

increase in credit risk triggers, and the results of our

staging reperformance.

• Our assessment of the appropriateness of the Group’s

models to generate the ECL including the

appropriateness and validity of the data used in the

models.

• Our evaluation of the completeness and appropriateness

of economic variables, the choice of discrete scenarios,

the weightings applied to these scenarios, and the

outcome of our challenger model.

• Our assessment of the appropriateness of post model

adjustments and overlays, including idiosyncratic overlays

relating to sectors, climate and non-linearity.

• For individually assessed ECL allowances, the overall

reasonableness of the provisions, including assumptions

applied, and collateral valuations.

We continued to highlight to the Committee that there

remains increased uncertainty and volatility in determining

expected credit losses due to the elevated risks in the

macroeconomic and geopolitical landscape.

For the purposes of determining the scope of work to be

conducted centrally and by component teams, we

considered the following:

• The Group’s gross exposure and ECL by market

• The Group’s and EY’s independent sovereign risk

assessment

• Market of origin for individual defaulted exposures

• The Group’s material IFRS 9 systems and processes,

including modelled ECL, and where those systems and

process were located

Based on this assessment, we determined that specific credit

related procedures were required to be performed centrally

and by 5 full scope and 4 specified scope locations.

The Group Audit Team’s involvement with the component

teams and procedures performed are detailed in the

“Involvement with component teams” section of our report.

Independent Auditor’s Report to the members of Standard Chartered Bank

Directors’ Report and Financial Statements 2025 | Standard Chartered 78

Risk Our response to the risk

Where the recoverable amount is based on the VIU, this is

modelled by reference to future cashflow forecasts (profit

forecasts including a regulatory capital haircut adjustment),

discount rates and macroeconomic assumptions such as

long-term growth rates.

There is a risk that if the judgements and assumptions

underpinning the impairment assessments are

inappropriate, then the investments in subsidiaries balances

may be misstated.

The level of risk remains consistent with the prior year.

• Reconciled the future profitability forecasts used in the

models to the Standard Chartered PLC Group’s Board

approved Corporate Plan (‘the Plan’). We challenged the

reasonableness of the forecasts through back testing to

historical performance and evaluating underlying

business strategies. We engaged EY specialists to

determine the reasonableness of the forward

macroeconomic inputs used in the Plan.

• We assessed the appropriateness of disclosures for

impairment of investments in subsidiary undertakings in

accordance with IAS 36.

Independent Auditor’s Report to the members of Standard Chartered Bank

Risk Our response to the risk

Valuation of financial instruments held at fair value

withhigher risk characteristics (Level 3 and certain

Level2portfolios)

Refer to Notes 12 and 13 to the financial statements.

At 31 December 2025, the Group reported financial assets

measured at fair value of $257,567 million (2024:

$245,417 million), and financial liabilities at fair value of

$133,791 million (2024: 145,506 million), of which financial

assets of $7,246 million (2024: $5,288 million) and financial

liabilities of $2,005 million (2024: $2,016 million) are classified

as Level 3 in the fair value hierarchy.

The fair value of financial instruments with higher risk

characteristics involves the use of management judgement

in the selection of valuation models and techniques,

pricinginputs and assumptions and fair value adjustments.

Ahigher level of estimation uncertainty is involved for

financial instruments valued using complex models;

pricinginputs that have limited observability; and fair value

adjustments, including the Credit Valuation Adjustments

forilliquid counterparties.

We evaluated the design and operating effectiveness

ofcontrols relating to the valuation of financial instruments,

including independent price verification, model validation

and approval, fair value adjustments, and significant

dealreview.

Among other procedures, we engaged our valuation

specialists to assist the audit team in performing the

following testing on a risk-assessed sample basis:

• Test valuations dependent on complex models by

independently revaluing Level 3 and certain Level 2

derivative financial instruments (including those

embedded within customer accounts, debt securities in

issue, and deposits by banks) to assess the

appropriateness of models and the adequacy of

assumptions and inputs used by the Group;

Key observations communicated to the Audit

Committee

How we scoped our audit to respond to the risk and

involvement with component teams

Investments in subsidiary undertakings balance reported

inthe Parent Company financial statements and the

associated disclosures, are not materially misstated

asat31 December 2025.

All audit work performed to address this risk was materially

undertaken centrally by the Group Audit Team.

Directors’ Report and Financial Statements 2025 | Standard Chartered 79

Risk Our response to the risk

We considered the following portfolios presented a higher

level of estimation uncertainty:

• Derivatives: Level 3 and certain Level 2 derivatives

(including those embedded within customer accounts,

debt securities in issue, and deposits by banks) whose

valuation involves the use of complex models; and

• Other Level 3 financial instruments: equity shares,

loansand advances to customers, reverse repurchase

agreements and other similar secured lending,

anddebtsecurities and other eligible bills with

unobservable pricing inputs.

The level of risk remains consistent with the prior year.

• Test valuations of other Level 3 financial instruments with

higher estimation uncertainty, such as equity shares, loans

and advances to customers, reverse repurchase

agreements and other similar secured lending, and debt

securities and other eligible bills. Where appropriate, we

compared management’s valuation to our own

independently developed range;

• Assessed the appropriateness and observability of pricing

inputs as part of the IPV process and recognition of day 1

P&L; and

• Compared the methodology used for fair value

adjustments to current market practice. We revalued a

sample of valuation adjustments, compared market

inputs to third party data, and challenged the basis for

determining illiquid credit spreads.

Where differences between our independent valuation and

management’s valuation were outside our thresholds, we

performed additional testing to assess the impact on the

valuation of financial instruments.

Throughout our audit procedures we considered the

continuing uncertainty arising from the current

macroeconomic environment. In addition, we assessed

whether there were any indicators of aggregate bias in

financial instrument marking and methodology assumptions.

We also assessed management’s disclosures regarding fair

value measurement.

Key observations communicated to the Audit

Committee

How we scoped our audit to respond to the risk and

involvement with component teams

We concluded that assumptions used by management to

estimate the fair value of financial instruments with higher

risk characteristics, and the recognition of related income,

were reasonable. We highlighted the following matters to

the Audit Committee:

• We did not identify material differences arising from

ourindependent testing of valuations dependent

oncomplex models;

• The fair values of other Level 3 financial instruments,

valued using pricing inputs with limited observability, were

not materially misstated as at 31 December 2025 based

on our independent calculations; and

• Valuation adjustments, including Credit Valuation

Adjustments for illiquid counterparties, were appropriate,

based on our analysis of market data and benchmarking

of pricing information.

We performed centralised audit procedures over this risk.

These procedures were performed by the Primary Team and

CIB SSC, covering over 98% of the risk amount.

The key audit matters remain consistent from prior year.

Independent Auditor’s Report to the members of Standard Chartered Bank

Directors’ Report and Financial Statements 2025 | Standard Chartered 80

Our application of materiality

We apply the concept of materiality in planning and

performing the audit, in evaluating the effect of identified

misstatements on the audit and in forming our audit opinion.

Materiality

The magnitude of an omission or misstatement that,

individually or in the aggregate, could reasonably be

expected to influence the economic decisions of the users

of the financial statements. Materiality provides a basis for

determining the nature and extent of our audit procedures.

We determined materiality for the Group to be $258 million

(2024: $252 million), which is 5% (2024: 5%) of adjusted profit

before tax. This reflects statutory profit before tax adjusted

for certain non-recurring items. We believe that adjusted

profit before tax provides us with the most appropriate and

relevant measure for the users of the financial statements,

given the Group is profit-making, it is consistent with the

wider industry, and it is the standard for listed and regulated

entities. This increase from prior year is driven by an increase

in our materiality basis of adjusted profit before tax and is

reflected in all materiality thresholds discussed below.

We determined materiality for the Parent Company to be

$179 million (2024: $164 million), which is 5% (2024: 5%) of

adjusted profit before tax. We believe that adjusted profit

before tax provides us with the most relevant and

appropriate measure for the users of the financial

statements, given the Company is profit making, it is

consistent with the wider industry, and it is the standard for

regulated entities.

Starting basis • Reported profit before tax – $4,724m

Adjustments • Non-recurring items– $433m

Materiality • Adjusted profit before tax – $5,157m

• Materiality of $258m (5% of adjusted

profit before tax)

During the course of our audit, we reassessed initial

materiality. This assessment resulted in a higher final

materiality calculated based on the actual financial

performance of the Group for the year. There were no

changes to the basis for materiality from the planning stage.

Performance materiality

The application of materiality at the individual

accountorbalance level. It is set at an amount to reduce

toan appropriately low level the probability that the

aggregate of uncorrected and undetected misstatements

exceeds materiality.

On the basis of our risk assessments, together with our

assessment of the Group’s overall control environment, our

judgement was that performance materiality was 50%

(2024: 50%) of our planning materiality, namely $129m (2024:

$126m). We have set performance materiality at this

percentage due to a variety of risk factors such as the

expectation of misstatements, internal control environment

considerations and other factors such as the global

complexity of the Group.

Audit work was undertaken at component locations for the

purpose of responding to the assessed risks of material

misstatement of the Group financial statements. The

performance materiality set for each component is based on

the relative scale and risk of the component to the Group as a

whole and our assessment of the risk of misstatement at that

component. In the current year, the range of performance

materiality allocated to components was $19m to $28m

(2024: $16m to $31m).

Reporting threshold

An amount below which identified misstatements are

considered as being clearly trivial.

We agreed with the Audit Committee that we would report

to them all uncorrected audit differences in excess of $13m

(2024: $13m), which is set at 5% of planning materiality, as

well as differences below that threshold that, in our view,

warranted reporting on qualitative grounds.

We evaluate any uncorrected misstatements against both

the quantitative measures of materiality discussed above

and in light of other relevant qualitative considerations in

forming our opinion.

Other information

The other information comprises the information included in

the Annual Report set out on pages 1 to 206, including the

Strategic report (pages 1 to 15), the Directors’ report (pages 16

to 21), the Statement of directors’ responsibilities (page 22)

and the information not marked as ‘audited’ in the Risk

review and Capital review section (pages 23 to 71), and the

Supplementary information (pages 201 to 206), other than

the financial statements and our auditor’s report thereon. The

directors are responsible for the other information contained

within the annual report.

Our opinion on the financial statements does not cover the

other information and, except to the extent otherwise

explicitly stated in this report, we do not express any form of

assurance conclusion thereon.

Our responsibility is to read the other information and, in

doing so, consider whether the other information is materially

inconsistent with the financial statements or our knowledge

obtained in the course of the audit, or otherwise appears to

be materially misstated. If we identify such material

inconsistencies or apparent material misstatements, we are

required to determine whether this gives rise to a material

misstatement in the financial statements themselves. If,

based on the work we have performed, we conclude that

there is a material misstatement of the other information, we

are required to report that fact.

We have nothing to report in this regard.

Independent Auditor’s Report to the members of Standard Chartered Bank

Directors’ Report and Financial Statements 2025 | Standard Chartered 81

Opinions on other matters prescribed by the

Companies Act 2006

In our opinion, the part of the directors’ remuneration report

to be audited has been properly prepared in accordance with

the Companies Act 2006.

In our opinion, based on the work undertaken in the course of

the audit:

• the information given in the strategic report and the

directors’ report for the financial year for which the

financial statements are prepared is consistent with the

financial statements; and

• the strategic report and the directors’ report have

beenprepared in accordance with applicable

legalrequirements.

Matters on which we are required to report

byexception

In the light of the knowledge and understanding of the Group

and the Parent Company and its environment obtained in

the course of the audit, we have not identified material

misstatements in the strategic report or the directors’ report.

We have nothing to report in respect of the following matters

in relation to which the Companies Act 2006 requires us to

report to you if, in our opinion:

• adequate accounting records have not been kept by the

Parent Company, or returns adequate for our audit have

not been received from branches not visited by us; or

• the Parent Company financial statements are not in

agreement with the accounting records and returns; or

• certain disclosures of directors’ remuneration specified by

law are not made; or

• we have not received all the information and explanations

we require for our audit.

Responsibilities of directors

As explained more fully in the directors’ responsibilities

statement set out on page 22, the directors are responsible

for the preparation of the financial statements and for being

satisfied that they give a true and fair view, and for such

internal control as the directors determine is necessary to

enable the preparation of financial statements that are free

from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are

responsible for assessing the Group and Parent Company’s

ability to continue as a going concern, disclosing, as

applicable, matters related to going concern and using the

going concern basis of accounting unless the directors either

intend to liquidate the Group or the Parent Company or to

cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the

financial statements

Our objectives are to obtain reasonable assurance about

whether the financial statements as a whole are free from

material misstatement, whether due to fraud or error, and to

issue an auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a

guarantee that an audit conducted in accordance with ISAs

(UK) will always detect a material misstatement when

itexists. Misstatements can arise from fraud or error

andareconsidered material if, individually or in the

aggregate, they could reasonably be expected to influence

the economic decisions of users taken on the basis of these

financial statements.

Explanation as to what extent the audit was considered

capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-

compliance with laws and regulations. We design procedures

in line with our responsibilities, outlined above, to detect

irregularities, including fraud. The risk of not detecting a

material misstatement due to fraud is higher than the risk of

not detecting one resulting from error, as fraud may involve

deliberate concealment by, for example, forgery or

intentional misrepresentations, or through collusion. The

extent to which our procedures are capable of detecting

irregularities, including fraud is detailed below.

However, the primary responsibility for the prevention and

detection of fraud rests with both those charged with

governance of the entity and management.

• We obtained an understanding of the legal and

regulatory frameworks that are applicable to the Group

and determined that the most significant are those that

relate to the reporting framework (UK-adopted IAS and

EU IFRS, the Companies Act 2006), regulations and

supervisory requirements of the Prudential Regulation

Authority (PRA), FRC, FCA and other overseas regulatory

requirements, including but not limited to regulations in its

major markets such as India, Singapore, the United States

of America, the United Arab Emirates and the relevant tax

compliance regulations in the jurisdictions in which the

Group operates. In addition, we concluded that there are

certain significant laws and regulations that may have an

effect on the determination of the amounts and

disclosures in the financial statements and those laws and

regulations relating to regulatory capital and liquidity,

conduct, ﬁnancial crime including anti-money laundering,

sanctions and market abuse recognising the ﬁnancial and

regulated nature of the Group’s activities.

• We understood how the Group is complying with those

frameworks by performing a combination of inquiries of

senior management and those charged with governance

as required by auditing standards, review of board and

certain committee meeting minutes, gaining an

understanding of the Group’s approach to governance,

inspection of regulatory correspondence in the year and

engaging with internal and external legal counsel. We

also engaged EY financial crime and forensics specialists

to perform procedures on areas relating to anti-money

laundering, whistleblowing, and sanctions compliance.

Through these procedures, we became aware of actual or

suspected non-compliance. The identiﬁed actual or

suspected non-compliance was not sufﬁciently signiﬁcant

to our audit that would have resulted in it being identiﬁed

as a key audit matter.

Independent Auditor’s Report to the members of Standard Chartered Bank

Directors’ Report and Financial Statements 2025 | Standard Chartered 82

• We assessed the susceptibility of the Group’s financial

statements to material misstatement, including how fraud

might occur by considering the controls that the Group has

established to address risks identified by the entity, or that

otherwise seek to prevent, deter or detect fraud. Our

procedures to address the risks identified also included

incorporation of unpredictability into the nature, timing

and/or extent of our testing, challenging assumptions and

judgements made by management in their significant

accounting estimates and journal entry testing.

• Based on this understanding, we designed our audit

procedures to identify non-compliance with such laws and

regulations. Our procedures involved inquiries of the

Group’s internal and external legal counsel, money

laundering reporting officer, internal audit, certain senior

management executives, and focused testing on a sample

basis, including journal entry testing. We also performed

inspection of key correspondence from the relevant

regulatory authorities as well as review of board and

committee minutes.

• For instances of actual or suspected non-compliance with

laws and regulations, which have a material impact on the

financial statements, these were communicated by

management to the Group audit engagement team and

component teams (where applicable) who performed

audit procedures such as inquiries with management,

sending confirmations to external legal counsel,

substantive testing and meeting with regulators. Where

appropriate, we involved specialists from our firm to

support the audit team.

• The Group is authorised to provide banking, insurance,

mortgages and home finance, consumer credit, pensions,

investments and other activities. The Group operates in

the banking industry which is a highly regulated

environment. As such, the Senior Statutory Auditor

considered the experience and expertise of the Group

audit engagement team, the component teams and the

shared service centre teams to ensure that the team had

the appropriate competence and capabilities, which

included the use of specialists where appropriate.

A further description of our responsibilities for the audit of the

financial statements is located on the Financial Reporting

Council’s website at https://www.frc.org.uk/

auditorsresponsibilities. This description forms part of our

auditor’s report.

Other matters we are required to address

• Following the recommendation from the audit committee,

we were re-appointed by the Company on 8 May 2025 to

audit the financial statements for the year ending

31 December 2025 and subsequent financial periods.

• The period of total uninterrupted engagement including

previous renewals and reappointments is six years,

covering the years ending 31 December 2020 to

31 December 2025.

• The audit opinion is consistent with the additional report

to the audit committee.

Use of our report

This report is made solely to the company’s members, as a

body, in accordance with Chapter 3 of Part 16 of the

Companies Act 2006. Our audit work has been undertaken so

that we might state to the company’s members those

matters we are required to state to them in an auditor’s

report and for no other purpose. To the fullest extent

permitted by law, we do not accept or assume responsibility

to anyone other than the Company and the Company’s

members as a body, for our audit work, for this report, or for

the opinions we have formed.

Micha Missakian

Senior statutory auditor

for and on behalf of Ernst & Young LLP, Statutory Auditor

London

24 February 2026

Independent Auditor’s Report to the members of Standard Chartered Bank

Directors’ Report and Financial Statements 2025 | Standard Chartered 83

		2025	2024
	Notes	$million	$million
Interest income		16,888	19,310
Interest expense		(13,173)	(14,910)
Net interest income	3	3,715	4,400
Fees and commission income		3,957	3,486
Fees and commission expense		(1,031)	(824)
Net fee and commission income	4	2,926	2,662
Net trading income	5	6,185	5,530
Other operating income	6	128	(178)
Operating income		12,954	12,414
Staff costs		(6,773)	(6,417)
Premises costs		(267)	(254)
General administrative expenses		(194)	(223)
Depreciation and amortisation		(721)	(656)
Operating expenses	7	(7,955)	(7,550)
Operating profit before impairment losses and taxation		4,999	4,864
Credit impairment	8	(248)	(15)
Goodwill, property, plant and equipment and other impairment	9	(29)	(410)
Profit from associates and joint ventures		2	8
Profit before taxation		4,724	4,447
Taxation	10	(1,314)	(1,465)
Profit for the year		3,410	2,982
Profit attributable to:
Non-controlling interests	28	34	39
Parent company shareholders		3,376	2,943
Profit for the year		3,410	2,982

The notes on pages 91 to 200 form an integral part of these financial statements.

Financial statements

Consolidated income statement

For the year ended 31 December 2025

Directors’ Report and Financial Statements 2025 | Standard Chartered 84

		2025	2024
	Notes	$million	$million
Profit for the year		3,410	2,982
Other comprehensive income/(loss)
Items that will not be reclassified to income statement:		(45)	(198)
Own credit losses on financial liabilities designated at fair value through profit or loss		(62)	(319)
Equity instruments at fair value through other comprehensive income		61	(6)
Actuarial (loss)/gain on retirement benefit obligations	29	(41)	26
Revaluation (deficit)/surplus		(3)	9
Taxation relating to components of other comprehensive loss	10	–	92
Items that may be reclassified subsequently to income statement:		953	(278)
Exchange differences on translation of foreign operations:
Net gains/(losses) taken to equity		450	(663)
Net gains on net investment hedges	13	75	44
Share of other comprehensive loss from associates and joint ventures		–	(5)
Debt instruments at fair value through other comprehensive income
Net valuation gains taken to equity		276	216
Reclassified to income statement	6	27	172
Net impact of expected credit loss		17	(36)
Cash flow hedges:
Net movements in cash flow hedge reserve	13	150	32
Taxation relating to components of other comprehensive income/(loss)	10	(42)	(38)
Other comprehensive income/(loss) for the year, net of taxation		908	(476)
Total comprehensive income for the year		4,318	2,506
Total comprehensive income attributable to:
Non-controlling interests	28	66	22
Parent company shareholders		4,252	2,484
Total comprehensive income for the year		4,318	2,506

Financial statements

Consolidated statement of comprehensive income

For the year ended 31 December 2025

Directors’ Report and Financial Statements 2025 | Standard Chartered 85

		Group		Company
		2025	2024	2025	2024
	Notes	$million	$million	$million	$million
Assets
Cash and balances at central banks	12,34	64,943	56,665	52,348	45,233
Financial assets held at fair value through profit or loss	12	121,078	103,624	99,894	88,349
Derivative financial instruments	12,13	66,479	82,717	66,631	82,844
Loans and advances to banks	12,14	24,771	22,941	11,108	11,755
Loans and advances to customers	12,14	159,254	158,242	80,091	77,597
Investment securities	12	103,921	96,442	79,684	82,101
Other assets	19	38,158	28,478	23,568	21,552
Due from subsidiary undertakings and other related parties		5,234	5,222	11,538	10,066
Current tax assets	10	549	644	412	516
Prepayments and accrued income		2,038	2,197	1,392	1,535
Interests in associates and joint ventures		75	75	–	–
Investments in subsidiary undertakings	31	–	–	10,800	10,671
Goodwill and intangible assets	16	4,111	3,774	2,245	1,988
Property, plant and equipment	17	1,303	1,144	714	659
Deferred tax assets	10	387	350	251	233
Retirement benefit schemes in surplus		104	118	104	118
Assets classified as held for sale	20	957	901	240	474
Total assets		593,362	563,534	441,020	435,691
Liabilities
Deposits by banks	12	25,758	22,409	20,607	17,824
Customer accounts	12	270,058	239,204	132,018	119,502
Repurchase agreements and other similar secured borrowing	12,15	5,186	9,921	4,828	9,845
Financial liabilities held at fair value through profit or loss	12	65,571	62,929	64,880	61,683
Derivative financial instruments	12,13	68,220	82,577	67,556	82,745
Debt securities in issue	12,21	43,577	39,864	37,849	36,081
Other liabilities	22	26,813	27,767	19,421	21,486
Due to parent companies, subsidiary undertakings & other related parties		37,272	28,246	50,980	42,313
Current tax liabilities	10	517	559	254	294
Accruals and deferred income		4,581	4,265	2,620	2,441
Subordinated liabilities and other borrowed funds	12,26	8,175	10,359	8,158	9,801
Deferred tax liabilities	10	523	427	358	308
Provisions for liabilities and charges	23	247	261	191	186
Retirement benefit schemes in deficit		312	249	216	200
Liabilities included in disposal groups held for sale	20	914	381	150	–
Total liabilities		557,724	529,418	410,086	404,709
Equity
Share capital and share premium account	27	21,643	21,643	21,643	21,643
Other reserves		(6,065)	(6,939)	(3,666)	(3,804)
Retained earnings		13,744	13,226	7,235	7,421
Total parent company shareholders’ equity		29,322	27,930	25,212	25,260
Other equity instruments	27	5,722	5,722	5,722	5,722
Total equity excluding non-controlling interests		35,044	33,652	30,934	30,982
Non-controlling interests	28	594	464	–	–
Total equity		35,638	34,116	30,934	30,982
Total equity and liabilities		593,362	563,534	441,020	435,691

The Company has taken advantage of the exemption in section 408 of the Companies Act 2006 not to present its individual

statement of comprehensive income and related notes that form a part of these financial statements. The Company profit

forthe year after tax is $2,517 million (2024: Profit after tax $2,325 million).

The notes on pages 91 to 200 form an integral part of these financial statements

These financial statements were approved by the Court of Directors and authorised for issue on 24 February 2026 and signed

on its behalf by:

Bill Winters, Director

Financial statements

Balance sheets

As at 31 December 2025

Directors’ Report and Financial Statements 2025 | Standard Chartered 86

Ordinary

Preference

Fair value

capital

Capital

through other

Parent

andshare

and share

and

Own credit

comprehensive

Cash flow

company

Non-

premium

merger

adjustment

income reserve

hedge

Translation

Retained

shareholders’

Other equity

controlling

account

reserves

reserve

– debt

– equity

reserve

earnings

equity

instruments

interests

Total

$million

As at 01 January 2024

20,893

750

(514)

191

(13)

(6,260)

12,988

28,122

4,742

1,080

33,944

Profit for the year

–

2,943

–

2,982

Other comprehensive

(loss)/income

–

(292)

324

(90)

(609)

187

2,9

(459)

–

(17)

(476)

Distributions

–

(125)

Other equity instruments

issued, net ofexpenses

–

980

–

980

Share option expense, net

oftaxation

–

205

–

205

Dividends on ordinary

–

(2,395)

–

(2,395)

Dividends on preference

shares and AT1 securities

–

(349)

–

(349)

Deemed distribution

toparent

–

(226)

–

(226)

Other movements

–

(1)

–

210

(127)

–

(513)

(424)

As at 31 December 2024

20,893

750

(246)

(183)

101

(6,659)

13,226

27,930

5,722

464

34,116

Profit for the year

–

3,376

–

3,410

Other comprehensive

(loss)/income

–

(62)

301

(1)

127

493

2,9

876

–

908

Distributions

–

(98)

Share option expense, net

oftaxation

–

200

–

200

Dividends on ordinary

–

(2,276)

–

(2,276)

Dividends on preference

shares and AT1 securities

–

(389)

–

(389)

Deemed distribution

toparent

–

(276)

–

(276)

Other movements

–

(27)

–

(135)

(119)

–

162

As at 31 December 2025

20,893

750

(308)

100

135

(6,123)

13,744

29,322

5,722

594

35,638

1 Includes capital reserve of $35 million (31 December 2024: $35 million) and capital redemption reserve of $5 million (31 December 2024: $5 million).

2 Includes actuarial (loss)/gain, net of taxation on Group defined benefit schemes.

3 Relates to deemed capital contribution arising from share-based payment net of taxation of $276 million (31 December 2024: $226 million).

4 2025 movement mainly includes realisation of translation adjustment loss from sale of Standard Chartered Bank Gambia Limited ($8 million) and Standard

Chartered Cameroon ($9 million) transferred to other operating income. 2024 movement includes realisation of translation adjustment loss from sale of SCB

Zimbabwe Limited ($190 million), SCB Angola S.A. ($31 million), SCB Sierra Leone Limited ($25 million) transferred to other operating income.

5 Mainly includes movements related to Ghana hyperinflation.

6 Movement are primarily from non-controlling interest (refer note 28).

7 All the amounts are net of tax.

8 Includes $65 million (31 December 2024: $8 million) mark-to-market gain on equity instruments (net of tax), $57 million (31 December 2024: $174 million) relating to

transfer of gain on sale of equity investment to retained earnings and reversal of deferred tax liability $9 million (31 December 2024: $76 million reversal of deferred

tax asset). For movement in deferred tax refer Note 10.

9 Includes $57 million (2024: $174 million) gain on sale of equity investment in other comprehensive income reserve transferred to retained earnings partly offset by

$9 million (2024: $13 million) capital gain tax.

10 Includes $154 million recognised upon redemption of preference AT1 shares at their issue price. Those shares, issued by a subsidiary (Standard Chartered Bank

Singapore Limited), were recognised against non-controlling interest and their carrying amount had been reduced below their issue price upon dividend payments

made in prior period.

Note 27 includes a description of each reserve.

The notes on pages 91 to 200 form an integral part of these financial statements

Financial statements

Consolidated statement of changes in equity

For the year ended 31 December 2025

Directors’ Report and Financial Statements 2025 | Standard Chartered 87

		Group		Company
		2025	2024	2025	2024
	Notes	$million	$million	$million	$million
Cash flows from operating activities:
Profit before taxation		4,724	4,447	3,245	3,058
Adjustments for non-cash items and other adjustments
included within income statement	33	397	1,107	(429)	(1)
Change in operating assets	33	(7,631)	(34,790)	273	(26,161)
Change in operating liabilities	33	27,822	25,731	11,452	13,864
Contributions to defined benefit schemes	29	(77)	(48)	(46)	(39)
UK and overseas taxes paid	10	(1,282)	(1,422)	(711)	(720)
Net cash from/(used in) operating activities		23,953	(4,975)	13,784	(9,999)
Cash flows from investing activities:
Internally generated Capitalised Software	16	(715)	(479)	(521)	(246)
Purchase of property, plant and equipment	17	(225)	(224)	(149)	(176)
Disposal of property, plant and equipment	17	17	13	3	15
Acquisition of investment in subsidiaries, associates, and joint ventures		–	(1)	–	–
Dividends received from subsidiaries, associates and joint
ventures	33	2	6	1,260	1,052
Disposal of investment in subsidiaries, associates and joint
ventures 1		48	51	–	26
Disposal of held for sale property, plant and equipment		126	–	–	–
Purchase of investment securities		(128,640)	(131,058)	(68,809)	(84,630)
Disposal and maturity of investment securities		124,353	132,861	72,962	91,907
Net cash (used in)/from investing activities		(5,034)	1,169	4,746	7,948
Cash flows from financing activities:
Premises and equipment lease liability principal payment		(90)	(97)	(42)	(43)
Issue of Additional Tier 1 capital, net of expenses	27	–	980	–	980
Interest paid on subordinated liabilities	33	(551)	(569)	(492)	(528)
Repayment of subordinated liabilities	33	(2,705)	(1,000)	(2,173)	(1,000)
Proceeds from issue of senior debts	33	2,500	3,134	2,455	3,114
Repayment of senior debts	33	(4,001)	(2,480)	(3,986)	(2,471)
Interest paid on senior debts	33	(376)	(282)	(374)	(282)
Net cash inflow from non-controlling interests	28	8	(506)	–	–
Distributions and Dividends paid to non-controlling interests, preference shareholders and AT1 securities		(487)	(474)	(389)	(349)
Dividends paid to ordinary shareholders		(2,276)	(2,395)	(2,276)	(2,395)
Net cash used in financing activities		(7,978)	(3,689)	(7,277)	(2,974)
Net increase/(decrease) in cash and cash equivalents		10,941	(7,495)	11,253	(5,025)
Cash and cash equivalents at beginning of the year		78,949	88,360	48,101	53,988
Effect of exchange rate movements on cash and cash
equivalents		2,471	(1,916)	(64)	(862)
Cash and cash equivalents at end of the year	34	92,361	78,949	59,290	48,101

1 2025 includes disposal of Standard Chartered Bank Cameroon S.A. ($ 29 million), Standard Chartered Tanzania Nominees Limited - WRB business ($13 million),

Standard Chartered Bank Gambia Limited ($6 million). 2024 balance includes disposal of SCB Zimbabwe Limited ($24 million), SCB Angola S.A. ($10 million) and

SCB Sierra Leone Limited ($17 million).

For Bank Group, interest received was $15,885 million (31 December 2024: $19,638 million), interest paid was $12,639 million

(31 December 2024: $15,035 million).

For Bank Company, interest received was $11,945 million (31 December 2024: $13,579million), interest paid was $9,986 million

(31 December 2024: $11,596 million).

Financial statements

Cash flow statement

For the year ended 31 December 2025

Directors’ Report and Financial Statements 2025 | Standard Chartered 88

Ordinary

capital

and share

premium

account

$million

Preference

capital and

premium

account

$million

Capital

and

merger

reserves

$million

Own credit

adjustment

reserve

$million

Fair value

through other

comprehensive

income reserve

– debt

$million

Fair value

through other

comprehensive

income reserve

– equity

$million

Cash flow

hedge

reserve

$million

Translation

reserve

$million

Retained

earnings

$million

Parent

company

shareholders’

equity

$million

Other equity

instruments

$million

Total

$million

At 1 January 2024 20,893 750 40 49 (716) 214 (51) (2,939) 7,671 25,911 4,742 30,653

Profit for the year – – – – – – – – 2,325 2,325 – 2,325

Other comprehensive (loss)/income

– – – (291) 308 (83) 34 (326) 194

(164) – (164)

Other equity instruments issued, net

ofexpenses – – – – – – – – – – 980 980

share option expense, net oftaxation – – – – – – – – 127 127 – 127

Dividends on ordinary shares – – – – – – – – (2,395) (2,395) – (2,395)

Dividends on preference share and AT1

securities – – – – – – – – (349) (349) – (349)

Deemed distribution toparent

– – – – – – – – (144) (144) – (144)

Other Movements – – – (1) 7 – – (49) (8) (51) – (51)

At 31 December 2024 20,893 750 40 (243) (401) 131 (17) (3,314) 7,421 25,260 5,722 30,982

Profit forthe year – – – – – – – – 2,517 2,517 – 2,517

Other comprehensive (loss)/income

– – (64) 295 (7) 54 (140) 18

156 – 156

share option expense, net oftaxation – – – – – – – – 135 135 – 135

Dividends on ordinary shares – – – – – – – – (2,276) (2,276) – (2,276)

Dividends on preference share and AT1

securities – – – – – – – – (389) (389) – (389)

Deemed distribution toparent

– – – – – – – – (191) (191) – (191)

Other Movements – – – – – – – – – – – –

At 31 December 2025 20,893 750 40 (307) (106) 124 37 (3,454) 7,235 25,212 5,722 30,934

1 Includes capital reserve of $35 million (31 December 2024: $35 million) and capital redemption reserve of $5 million (31 December 2024: $5 million).

2 Includes actuarial (loss)/gain, net of taxation on Group defined benefit schemes.

3 Relates to deemed capital contribution arising from share-based payment net of taxation of $191 million (31 December 2024: $144 million).

4 All amounts are net of tax.

Note 27 includes a description of each reserve.

The notes on pages 91 to 200 form an integral part of these financial statements

Financial statements

Company statement of changes in equity

For the year ended 31 December 2025

Directors’ Report and Financial Statements 2025 | Standard Chartered 89

Section Note Page

Basis of preparation

1 Accounting policies 91

Performance/return

2 Segmental information 95

3 Net interest income 96

4 Net fees and commission 97

5 Net trading income 99

6 Other operating income 99

7 Operating expenses 100

8 Credit impairment 101

9 Goodwill, fixed assets and other impairment 105

10 Taxation 106

11 Dividends 111

Assets and liabilities

held at fair value

12 Financial instruments 112

13 Derivative financial instruments 143

Financial instruments

held at amortised cost

14 Loans and advances to banks and customers 154

15 Reverse repurchase and repurchase agreements including

othersimilarlending and borrowing

154

Other assets and

investments

16 Goodwill and intangible assets 156

17 Property, plant and equipment 159

18 Leased assets 161

19 Other assets 162

20 Assets held for sale and associated liabilities 162

Funding, accruals,

provisions, contingent

liabilities and legal

proceedings

21 Debt securities in issue 163

22 Other liabilities 164

23 Provisions for liabilities and charges 165

24 Contingent liabilities and commitments 165

25 Legal and regulatory matters 166

Capital instruments,

equity and reserves

26 Subordinated liabilities and other borrowed funds 167

27 Share capital, other equity instruments and reserves 168

28 Non-controlling interests 170

Employee benefits

29 Retirement benefit obligations 171

30 Share-based payments 178

Scope of consolidation

31 Investments in subsidiary undertakings, joint ventures and associates 184

32 Structured entities 185

Cash flow statement

33 Cash flow statement 187

34 Cash and cash equivalents 188

Other disclosure matters

35 Related party transactions 189

36 Auditor’s remuneration 192

37 Remuneration of directors 192

38 Post balance sheet events 193

39 Related undertakings of the Group 194

Financial statements

Contents – Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 90

1. Accounting policies

Statement of compliance

The Group financial statements consolidate Standard Chartered Bank (the Company) and its subsidiaries (together referred

to as the Group) and equity account the Group’s interests in associates and jointly controlled entities. The parent company

financial statements present information about the Company as a separate entity.

The Group financial statements have been prepared in accordance with UK- adopted international accounting standards

and International Financial Reporting Standards (IFRS) (Accounting Standards) as adopted by the European Union (EU

IFRS), as there are no applicable differences for the periods presented. The Company financial statements have been

prepared in accordance with UK-adopted international accounting standards as applied in conformity with section 408 of

the Companies Act 2006. The financial statements have been prepared in accordance with the requirements of the

Companies Act 2006.

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

a Risk review: Disclosures from the start of Risk profile section (page 30) to the end of other principal risks in the same section

(page 70) excluding:

• Liquidity coverage ratio (LCR), (page 63)

• Stressed coverage, (page 63)

• Net stable funding ratio (NSFR), (page 63)

• Liquidity pool, (page 63)

• Interest Rate Risk in the Banking Book, (page 69)

• Operational risk, (page 70)

• Other principal risks, (page 70)

b Capital review: from the start of ‘Capital Requirements Directive (CRD) capital base’ to the end of ‘movement in total

capital’, excluding capital ratios and risk-weighted assets (RWA)

Basis of preparation

The consolidated and Company financial statements have been prepared on a going concern basis and under the historical

cost convention, as modified by the revaluation of cash-settled share-based payments, fair value through other

comprehensive income, and financial assets and liabilities (including derivatives) at fair value through profit or loss.

The consolidated financial statements are presented in United States dollars ($), being the presentation currency of the

Group and functional currency of the Company, and all values are rounded to the nearest million dollars, except when

otherwise indicated.

Re-presentation of segmental information

During the period there has been a change in respect to the classification of income attributable to geographic markets

which have been re-presented to ensure recognition is in line with transfer pricing principles for services performed including

origination, structuring, booking, and risk management. This is necessary to align the presentation of the disclosure of client

segments in line with the Regulatory News Service filing (RNS) on Re-Presentation of Financial Information issued on 2 April

2025. Prior period amounts have been re-presented in line with the current year basis of preparation to align with the

information reviewed by the Chief Operating Decision Maker. Where the re-representation has impacted disclosure, it is

included within the footnotes in the following sections and tables:

• Risk review: Credit impairment charge (audited)

• Note 2 Segmental information

• Note 4 Net fees and commission

Significant and other accounting estimates and judgements

In determining the carrying amounts of certain assets and liabilities, the Group makes assumptions of the effects of uncertain

future events on those assets and liabilities at the balance sheet date. The Group’s estimates and assumptions are based on

historical experience and expectation of future events and are reviewed periodically. Further information about key

assumptions concerning the future, and other key sources of estimation uncertainty and judgement, are set out in the

relevant disclosure notes for the areas set out under the relevant headings below:

Financial statements

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 91

1. Accounting policies continued

Significant accounting estimates and critical judgements

Significant accounting estimates and judgements represent those items which have a significant risk of causing a material

adjustment to the carrying amounts of assets and liabilities within the next year. Significant accounting estimates and

judgements are:

• Expected credit loss calculations (Note 8)

• Financial instruments measured at fair value (Note 12)

Macroeconomic and geopolitical uncertainty is already embedded in the estimate of forward-looking cash flows that affect

the estimate of Expected credit loss calculations and impact the recoverability of certain assets, including of goodwill,

deferred tax assets and investments in subsidiary undertakings.

Other areas of accounting estimate and judgement

Other areas of accounting estimate and judgement do not meet the definition under IAS 1 of significant accounting

estimates or critical accounting judgements, but the recognition of certain material assets and liabilities are based on

assumptions and/or are subject to long-term uncertainties. The other areas of accounting estimate and judgement are:

• Taxation (Note 10)

• Goodwill and intangible assets-Goodwill impairment and capitalisation of internally generated software intangibles

(Note 9 and Note 16)

• Provisions for liabilities and charges – Other provisions (Note 23)

• Legal and regulatory matters – (Note 25)

• Retirement benefit obligations (Note 29)

• Share-based payments (Note 30)

• Investments in subsidiary undertakings (Note 31)

Climate impact on the Group’s balance sheet

Climate, and the impact of climate on the Group’s balance sheet is considered as an area which can impact accounting

estimates and judgments through the uncertainty of future events and the impact of that uncertainty on the Group’s assets

and liabilities.

The PLC Group has assessed the impact of climate risk on the financial report. This is set out within the non-financial and

sustainability information statement and the Sustainability Review in the PLC Annual Report, which incorporate the PLC

Group’s climate-related disclosures which align with the recommendations from the Task Force for Climate related Financial

Disclosures (TCFD) and Hong Kong Listing Requirements. Further risk disclosures have been provided in the Principal Risks

and Uncertainties section of the Annual Report where the PLC Group has described how it manages climate risk, which

manifests through the PLC Group’s business and operations and impact the relevant Principal Risk Types (PRTs). This is

managed via the PLC Group ESGR Risk Type framework.

The areas of impact for the Group where judgements and the use of estimates have been applied were credit risk and the

impact on lending portfolios; ESG features within issued loans and bonds; physical risk on our mortgage lending portfolio;

and the corporate plan, in respect of which forward looking cash flows impact the recoverability of certain assets, including

of goodwill, deferred tax assets and investments in subsidiary undertakings. However, these did not result in any material

change to this year’s balance sheet or income statement.

Transition risk, as our clients move to lower carbon emitting revenues, (either by virtue of legislation, technological

advancement, or changing end customer preference) is considered with reference to client transition pathways and

manifests over a longer term than the maturity of the loan book (up to 2050). At PLC Group level, the setting of net zero

targets, which covers our 12 highest emitting sectors, manages transition risk. Net zero targets, climate risk questionnaires

which are used to assess clients for transition risks and the credibility of their transition plan (CTP) enable the portfolio

managers to work with our clients on their transition and deploy capital to those clients which are engaged and have

adequate transition pathways. All of these actions manage the Group’s transition risk and engage clients before transition

risk manifests itself into credit losses. We have also evaluated transition risk to achieve net zero in our own operations. We

use scenario analysis to evaluate how various Transition Risk scenarios impact Loan Impairment intensities. These scenarios

consider climate transition costs including the impact of rising carbon prices, technology investment costs, and changes

in carbon intensities.

While physical risk is included within the majority of our mortgage lending decisions, we have also applied scenario analysis

against the pathways of different temperature outcomes to examine exposure concentration risk in key markets subject to

the extreme risk of floods and storms to assess the acute physical risk, and sea level rise to assess the chronic physical risk.

Stranded assets analysis was conducted for residential mortgages to identify properties that are expected to become

uninhabitable and/or unusable due to increased frequency and intensity of physical risk events from acute and chronic risks.

We evaluate the physical risk vulnerabilities of our existing sites, both existing and new on a periodic basis.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 92

Notes to the financial statements

1. Accounting policies continued

Across 2025 we focussed on sites hosting important business services, especially those vulnerable to extreme Physical Risks, to

strengthen resilience, and have initiated an evaluation of Physical Risk vulnerabilities at our primary supplier’s delivery sites to

proactively address potential business disruptions. Additionally, we assess the impact of climate risk on the classification of

ﬁnancial instruments under IFRS 9, when Environmental, Social or Governance (ESG) triggers may affect the cash ﬂows

received by the Group under the contractual terms of the instrument.

The PLC Group’s ESGR Risk team has performed a quantitative assessment of the impact of climate risk on the IFRS 9 ECL

provision. This assessment was performed across both the CIB and WRB portfolios. The climate risk impact assessment on

IFRS 9 business as usual ECL has been conducted based on internal climate risk models for six Corporate priority sectors (Oil

and Gas, Power, Steel, Mining, Shipping, and Automotive), one Generic Carbon Elasticity Model (CEM) for the remaining

Corporate sectors, an enhanced Sovereign Climate Probability of Default (PD) model, newly developed Project Finance (PF)

and Shipping Finance (SF) PD models, and Retail Mortgages Loss Given Default (LGD) models (for top four countries). The

top-down approach is used for the remaining portfolios without internal climate risk models. The impact assessment,

resulted in only an immaterial ECL increase across CIB and WRB for the PLC Group, which has been recorded as a

management overlay for the 2025 year end.

The Group’s corporate plan has a five-year outlook and considers the highest emitting sectors the Group finances. The

majority of the PLC Group sector targets are production/physical intensities which allow continued levels of lending as long

as the products the client produce have a decreasing carbon cost. For Coal Mining and Oil and Gas, these sectors have

absolute targets which represent a decreasing carbon budget. Coal Mining is an immaterial book, whilst for oil and gas

lending is being actively monitored on a portfolio basis towards lower carbon counterparties and technologies.

The corporate plan is shorter term than many of the climate scenario outlooks but seeks to capture the nearer term

performance as required by recoverability models. The Group has for the fourth time in the 2026 corporate plan included

anticipated credit impairment charges, now across eleven NZ sectors (Aviation, Auto, Power, Oil and Gas, Commercial Real

Estate, Cement, Agriculture, Shipping, Aluminium, Steel and Coal). This addition of credit impairment has not in itself,

materially impacted the recoverability of Group assets supported by discounted cash flow models (such as Value in Use)

which utilise the corporate plan.

The PLC Group has progressively strengthened its scenario analysis capabilities with the modelling of Climate Risk impact

over a 30-year period across multiple dimensions including scenario data and pathways across CIB and WRB portfolios.

While we have taken the first step in our journey to transition from our reliance on vendor models to in-house capabilities,

challenges underpin the scenario analysis, such as reliance on nascent methodologies, dependencies on first generation

models and data limitations. Notwithstanding these challenges, our work to date, using certain assumptions and proxies,

indicates that our business is resilient to all Network of Central Banks and Supervisors for Greening the Financial System

(NGFS) scenarios that were explored.

The Group, although acknowledging the limitations of current data available, increasing sophistication of models evolving

and nascent nature of climate impacts on internal and client assets, considers Climate Risk to have limited quantitative

impact in the immediate term, and as a longer-term risk is expected to be addressed through its business strategy and

financial planning as the Group implements its net zero journey. In reaching this conclusion, the Group also leverages

assessments performed at PLC Group level and the extent to which the results impact the Group.

New accounting standards in issue but not yet effective

There were no new accounting standards or interpretations that had a material effect on the Group’s Financial Statements

in 2025.

IFRS 18 Presentation and Disclosure in Financial Statements

The new standard IFRS 18 was issued in April 2024 and is effective for annual reporting periods beginning on or after January

1, 2027 but earlier application is permitted. This new standard replaces IAS 1 Presentation of Financial Statements and

amends IAS 7 Statement of Cash Flows. IFRS 18 introduces three defined categories for income and expenses—operating,

investing and financing – to improve the structure of the income statement, and requires all companies to provide new

defined subtotals, including operating profit. IFRS 18 will require disclosure of explanations of company-specific measures

that are related to the income statement, referred to as management-defined performance measures. IFRS 18 sets out

enhanced guidance on how to organise information and whether to provide it in the primary financial statements or in the

notes. The Group will apply IFRS 18 for annual reporting periods beginning on January 1, 2027 and whilst the Group

assessment remains ongoing, it is currently not expected to have a material impact on the Group’s financial statements other

than a change in the presentation of the primary statements.

Directors’ Report and Financial Statements 2025 | Standard Chartered 93

1. Accounting policies continued

IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures

In May 2024, the IASB issued Amendments to the Classification and Measurement of Financial Instruments which amended

requirements related to settling financial liabilities using an electronic payment system and assessing contractual cash flow

characteristics of financial assets, including those with environmental, social and governance (ESG)-linked features. The IASB

also amended disclosure requirements relating to investments in equity instruments designated at fair value through other

comprehensive income and added disclosure requirements for financial instruments with contingent features that do not

relate directly to basic lending risks and costs. The amendments will be effective for annual reporting periods beginning

on or after 1 January 2026. The amendments are not expected to have a material impact on the Group’s

financial statements .

Going concern

These financial statements were approved by the Court of directors on 24 February 2026. The directors have made

an assessment of the Group’s ability to continue as a going concern. This assessment has been made having considered the

current macroeconomic and geopolitical headwinds, including:

• A review of the Group Strategy and Corporate plan, including the annual budget

• An assessment of the actual performance to date, loan book quality, credit impairment, legal and regulatory matters,

compliance matters, and recent regulatory developments.

• Consideration of stress testing performed, including the Solo Recovery Plan (RP) which includes the application of stressed

scenarios. Under the tests and through the range of scenarios, the results of these exercises and the RP demonstrate that

the Group has sufficient capital and liquidity to continue as a going concern and meet minimum regulatory capital and

liquidity requirements

• Analysis of the capital position, including the Solo capital and leverage ratios, and ICAAP which summarises the Solo

capital and risk assessment processes, assesses its capital requirements and the adequacy of resources to meet them.

• Analysis of the funding and liquidity position of Solo, including the Internal Liquidity Adequacy Assessment Process

(ILAAP), which considers the Solo and Group’s liquidity position, its framework and whether sufficient liquidity resources

are being maintained to meet liabilities as they fall due. Further, funding and liquidity was considered in the context of the

risk appetite metrics, including the Solo LCR ratio.

• The level of debt in issue, including redemptions and issuances during the year, debt falling due for repayment in the next

12 months and further planned debt issuances, including the appetite in the market for the Group’s debt

• The portfolio of debt securities held at amortised cost

• A detailed review of all principal and emerging risks

Based on the analysis performed, the directors confirm they are satisfied that the Group has adequate resources to continue

in business for a period of at least 12 months from 24 February 2026. For this reason, the Group continues to adopt the going

concern basis of accounting for preparing the financial statements.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 94

Notes to the financial statements

2. Segmental information

Basis of preparation

The Group’s segmental reporting is in accordance with IFRS 8 Operating Segments and is reported consistently with the internal

performance framework and as presented to the Group’s Management Team. The analysis reflects the location in which the

transaction or balance was booked.

Disclosures have been re-presented as explained in Note 1 ‘Re-presentation of segmental information’. The effect of the change

has impacted the classification of cost and income across client segments.

Client segments

Comparatives have been re-presented in line with the PLC Group’s RNS on representation of financial information issued

on 2 April 2025 to align with the information reviewed by the Chief Operating Decision Maker.

Profit before tax (PBT) by client segment

			2025					2024 1
	Corporate &	Wealth &				Corporate &	Wealth &
	Investment	Retail		Central &		Investment	Retail		Central &
	Banking	Banking	Ventures 1	other items	Total	Banking	Banking	Ventures	other items	Total
	$million	$million	$million	$million	$million	$million	$million	$million	$million	$million
Operating income	9,230	4,046	102	(424)	12,954	8,837	4,052	86	(561)	12,414
External	7,507	2,217	103	3,127	12,954	6,697	2,390	87	3,240	12,414
Inter-segment	1,723	1,829	(1)	(3,551)	–	2,140	1,662	(1)	(3,801)	–
Operating
expenses	(5,083)	(2,557)	(114)	(201)	(7,955)	(4,872)	(2,426)	(133)	(119)	(7,550)
Operating profit
before impairment
losses and taxation	4,147	1,489	(12)	(625)	4,999	3,965	1,626	(47)	(680)	4,864
Credit impairment	97	(299)	(33)	(13)	(248)	286	(260)	(25)	(16)	(15)
Other impairment	(5)	(5)	–	(19)	(29)	(195)	(72)	(8)	(135)	(410)
Profit from associates
and joint ventures	–	–	–	2	2	–	–	–	8	8
Profit/(loss)
before taxation	4,239	1,185	(45)	(655)	4,724	4,056	1,294	(80)	(823)	4,447
Total assets	386,876	55,357	3,486	147,643	593,362	375,902	49,161	3,088	135,383	563,534
Total liabilities	504,576	92,169	3,178	(42,199)	557,724	478,637	78,966	2,821	(31,006)	529,418

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

Operating income by client segment

			2025					2024 1
	Corporate &	Wealth &				Corporate &	Wealth &
	Investment	Retail		Central &		Investment	Retail		Central &
	Banking	Banking	Ventures 1	other items	Total	Banking	Banking	Ventures	other items	Total
	$million	$million	$million	$million	$million	$million	$million	$million	$million	$million
Net interest income	1,724	2,301	78	(388)	3,715	2,378	2,404	52	(434)	4,400
Net fees and commission
income	1,724	1,210	23	(31)	2,926	1,658	1,012	21	(29)	2,662
Net trading and other income	5,782	535	1	(5)	6,313	4,801	636	13	(98)	5,352
Operating income	9,230	4,046	102	(424)	12,954	8,837	4,052	86	(561)	12,414

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

Reported operating income by geography

	Singapore	India	UAE	UK	US	Others	Total
	$million	$million	$million	$million	$million	$million	$million
2025	3,046	1,521	1,191	1,512	1,256	4,428	12,954
2024	2,813	1,539	1,234	1,560	974	4,294	12,414

1 Reported operating income by geography is based on the revenues attributed to all foreign countries in total from which the Group derives revenues.

Directors’ Report and Financial Statements 2025 | Standard Chartered 95

3. Net interest income

Accounting policy

Interest income for financial assets held at either fair value through other comprehensive income or amortised cost, and

interest expense on all financial liabilities held at amortised cost is recognised in profit or loss using the effective interest

method.

The effective interest rate is the rate that discounts estimated future cash payments or receipts through the expected life of

the financial instrument or, when appropriate, a shorter period, to the net carrying amount of the financial asset or financial

liability. When calculating the effective interest rate, the Group estimates cash flows considering all contractual terms of the

financial instrument (for example prepayment options) but does not consider future credit losses. The calculation includes all

fees paid or received between parties to the contract that are an integral part of the effective interest rate, transaction costs

and all other premiums or discounts. For floating-rate financial instruments, periodic re-estimation of cash flows that reflect

the movements in the market rates of interest alters the effective interest rate. Where the estimates of cash flows have been

revised, the carrying amount of the financial asset or liability is adjusted to reflect the actual and revised cash flows,

discounted at the instruments original effective interest rate. The adjustment is recognised as interest income or expense in

the period in which the revision is made as long as the change in estimates is not due to credit issues.

Interest income for financial assets that are either held at fair value through other comprehensive income or amortised cost

that have become credit-impaired subsequent to initial recognition (stage 3) and have had amounts written off, is

recognised using the credit adjusted effective interest rate. This rate is calculated in the same manner as the effective

interest rate except that expected credit losses are included in the expected cash flows. Interest income is therefore

recognised on the amortised cost of the financial asset including expected credit losses. Should the credit risk on a stage 3

financial asset improve such that the financial asset is no longer considered credit-impaired, interest income recognition

reverts to a computation based on the rehabilitated gross carrying value of the financial asset.

	2025	2024
	$million	$million
Balances at central banks	2,105	2,500
Loans and advances to banks	1,175	1,296
Loans and advances to customers	9,002	10,436
Debt securities	3,517	3,718
Other eligible bills	1,009	1,254
Accrued on impaired assets (discount unwind)	80	106
Interest income	16,888	19,310
Of which: financial instruments held at fair value through other comprehensive income	2,955	2,892
Deposits by banks	702	728
Customer accounts	10,358	11,896
Debt securities in issue	1,582	1,653
Subordinated liabilities and other borrowed funds	485	597
Interest expense on IFRS 16 lease liabilities	46	36
Interest expense	13,173	14,910
Net interest income	3,715	4,400

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 96

4. Net fees and commission

Accounting policy

The Group can act as trustee or in other Fiduciary capacities that result in the holding or placing of assets on behalf

of individuals, trusts, retirement benefit plans and other institutions. The assets and income arising thereon are excluded

from these financial statements, as they are not assets and income of the Group.

The Group applies the following practical expedients:

• information on amounts of transaction price allocated to unsatisfied (or partially unsatisfied) performance obligations

at the end of the reporting period is not disclosed as almost all fee-earning contracts have an expected duration of less

than one year

• promised consideration is not adjusted for the effects of a significant financing component as the period between

the Group providing a service and the customer paying for it is expected to be less than one year

• incremental costs of obtaining a fee-earning contract are recognised upfront in ‘Fees and commission expense’

rather than amortised, if the expected term of the contract is less than one year

The determination of the services performed for the customer, the transaction price, and when the services are completed

depends on the nature of the product with the customer. The main considerations on income recognition by product are

as follows:

Transaction Banking

The Group recognises fee income associated with transactional trade and cash management at the point in time the service

is provided. The Group recognises income associated with trade contingent risk exposures (such as letters of credit and

guarantees) over the period in which the service is provided.

Payment of fees is usually received at the same time the service is provided. In some cases, letters of credit and guarantees

issued by the Group have annual upfront premiums, which are amortised on a straight-line basis to fee income over the year.

Global Markets

The Group recognises fee income at the point in time the service is provided. Fee income is recognised for a significant

non-lending service when the transaction has been completed and the terms of the contract with the customer entitle

the Group to the fee. This includes fees such as structuring and advisory fees. Fees are usually received shortly after the

service is provided.

Syndication fees are recognised when the syndication is complete defined as achieving the final approved hold position.

Fees are generally received before completion of the syndication, or within 12 months of the transaction date.

Securities services include custody services, fund accounting and administration, and broker clearing. Fees are recognised

over the period the custody or fund management services are provided, or as and when broker services are requested.

Wealth Management

Upfront consideration on bancassurance agreements is amortised straight-line over the contractual term. Commissions

for bancassurance activities are recorded as they are earned through sales of third-party insurance products to customers.

These commissions are received within a short time frame of the commission being earned. Target-linked fees are accrued

based on percentage of the target achieved, provided it is assessed as highly probable that the target will be met.

Cash payment is received at a contractually specified date after achievement of a target has been confirmed.

Upfront and trailing commissions for managed investment placements are recorded as they are confirmed. Income

from these activities is relatively even throughout the period, and cash is usually received within a short time frame after

the commission is earned

Retail Products

The Group recognises most income at the point in time the Group is entitled to the fee, since most services are provided

at the time of the customer’s request.

In most of our retail markets there are circumstances under which fees are waived, income recognition is adjusted to reflect

customer’s intent to pay the annual fee. The Group defers the fair value of reward points on its credit card reward programmes,

and recognises income and costs associated with fulfilling the reward at the time of redemption.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 97

4. Net fees and commission continued

	2025	2024
	$million	$million
Fees and commissions income	3,957	3,486
Of which:
Financial instruments that are not fair valued through profit or loss	1,276	1,162
Trust and other fiduciary activities	353	278
Fees and commissions expense	(1,031)	(824)
Of which:
Financial instruments that are not fair valued through profit or loss	(286)	(156)
Trust and other fiduciary activities	(23)	(12)
Net fees and commission	2,926	2,662

			2025					2024 1
	Corporate &	Wealth &				Corporate &	Wealth &
	Investment	Retail		Central &		Investment	Retail		Central &
	Banking	Banking	Ventures 1	other items	Total	Banking	Banking	Ventures	other items	Total
	$million	$million	$million	$million	$million	$million	$million	$million	$million	$million
Transaction
Services	1,379	–	–	–	1,379	1,274	–	–	–	1,274
Payments &
Liquidity	656	–	–	–	656	657	–	–	–	657
Securities &
Prime Services	212	–	–	–	212	141	–	–	–	141
Trade & Working
Capital	511	–	–	–	511	476	–	–	–	476
Global Banking	1,007	–	–	–	1,007	876	–	–	–	876
Lending &
Financing
Solutions	610	–	–	–	610	598	–	–	–	598
Capital Market &
Advisory	397	–	–	–	397	278	–	–	–	278
Global Markets	41	–	–	–	41	40	–	–	–	40
Macro Trading	8	–	–	–	8	7	–	–	–	7
Credit Trading	33	–	–	–	33	37	–	–	–	37
Valuation &
Other Adj	–	–	–	–	–	(4)	–	–	–	(4)
Wealth Solutions	–	1,135	1	–	1,136	–	913	–	–	913
Investment
Products	–	839	–	–	839	–	734	–	–	734
Bancassurance	–	296	1	–	297	–	179	–	–	179
CCPL & Other Unsecured Lending	–	217	–	–	217	–	229	–	–	229
Deposits	–	104	–	–	104	–	97	–	–	97
Mortgages & Other Secured Lending	–	14	–	–	14	–	20	–	–	20
Ventures	–	–	41	–	41	–	–	39	–	39
Treasury & Others	1	19	(1)	(1)	18	(2)	19	–	(19)	(2)
Net fees and commission income	2,428	1,489	41	(1)	3,957	2,188	1,278	39	(19)	3,486
Net fees and commission
expense	(704)	(279)	(18)	(30)	(1,031)	(530)	(266)	(18)	(10)	(824)
Net fees and commission	1,724	1,210	23	(31)	2,926	1,658	1,012	21	(29)	2,662

1 Results have been re-presented to reflect the reallocation of Treasury and Other items across product.

Upfront bancassurance consideration amounts are amortised on a straight-line basis over the contractual period to which the

consideration relates. Deferred income on the balance sheet in respect of these activities is $374 million (31 December 2024:

$419 million), which will be earned evenly over the remaining life of the contract till June 2032. For the twelve months ended

31 December 2025, $45 million of fee income was released from deferred income (31 December 2024: $45 million).

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 98

5. Net trading income

Accounting policy

Gains and losses arising from changes in the fair value of financial instruments held at fair value through profit or loss are

recorded in net trading income in the period in which they arise. This includes contractual interest receivable or payable.

When the initial fair value of a financial instrument held at fair value through profit or loss relies on unobservable inputs, the

difference between the initial valuation and the transaction price is amortised to net trading income as the inputs become

observable or over the life of the instrument, whichever is shorter. Any unamortised ‘day one’ gain is released to net trading

income if the transaction is terminated. Income is recognised from the sale and purchase of trading positions, margins on

market making and customer business and fair value changes.

	2025	2024
	$million	$million
Net trading income	6,185	5,530
Significant items within net trading income include:
Gains on instruments held for trading 1	5,024	4,272
Gains on financial assets mandatorily at fair value through profit or loss	4,839	4,580
Losses on financial liabilities designated at fair value through profit or loss	(3,568)	(3,162)

1 Includes $26 million gain (31 December 2024: $54 million loss) from the translation of foreign currency monetary assets and liabilities.

6. Other operating income

	2025	2024
	$million	$million
Other operating income/(loss) includes:
Rental income from operating lease assets	6	7
Net loss on disposal of fair value through other comprehensive income debt instruments	(27)	(172)
Net loss on disposal of amortized cost financial assets	(26)	(18)
Net gain/(loss) on sale of businesses 1	4 1	(214) 2
Dividend income	6	3
Others 3	165	216
Other operating income/(loss)	128	(178)

1 Includes $3 million gain from disposal of businesses ($13 million gain from WRB business in SCB Tanzania, partly offset by $5 million loss from Standard Chartered

Bank Gambia Limited and $5 million loss from Standard Chartered Bank Cameroon S.A.) of which $17 million relates to realisation of translation adjustment loss.

Total cash consideration received from the disposal was $48 million ($13 million: SCB Tanzania, $6 million: Standard Chartered Bank Gambia Limited, $29 million:

Standard Chartered Bank Cameroon S.A.).

2 2024 balance mainly includes loss on disposal of Africa subsidiaries $217 million ($172 million: SCB Zimbabwe Limited, $26 million: SCB Angola S.A. and $19 million:

SCB Sierra Leone Limited) of which $246 million relates to realisation of translation adjustment loss. Total cash consideration received was $51 million ($24 million:

SCB Zimbabwe Limited, $10 million: SCB Angola S.A. and $17 million: SCB Sierra Leone Limited).

3 2025 balance includes $125 million gain on disposal of property, plant and equipment and IAS 29 adjustment Ghana hyperinflationary impact ($8 million). 2024

balance includes IAS 29 adjustment Ghana hyperinflationary impact ($139 million), Research and development expenditure credit ($32 million), mark-to-market

gains from deferred compensation income ($17 million), rebates/incentives received from VISA card ($10 million), gain on disposal of property, plant and equipment

($3 million) and immaterial balances across other geographies.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 99

7. Operating expenses

	2025	2024
	$million	$million
Staff costs:
Wages and salaries	5,331	5,007
Social security costs	223	184
Other pension costs (Note 29)	392	332
Share-based payment costs (Note 30)	209	219
Other staff costs	618	675
	6,773	6,417
Premises and equipment expenses:	267	254
General administrative expenses:
UK bank levy	52	90
Other general administrative expenses	142	133
	194	223
Depreciation and amortisation:
Property, plant and equipment:
Premises	153	130
Equipment	90	68
Intangibles:
Software	474	455
Acquired on business combinations	4	3
	721	656
Total operating expenses	7,955	7,550

Other staff costs include redundancy expenses of $103 million (31 December 2024: $142 million). Further costs in this category

include training, travel costs and other staff related costs. The Group has recognised $15 million of accelerated share based

payment expense relating to the amendment of vesting schedules as allowed for by the PRA Policy Statement on Remuneration

Reform (dated 15 October 2025).

Details of directors’ pay, benefits, pensions and benefits and interests in shares are disclosed in Note 37 Remuneration

of Directors.

Transactions with directors, officers and other related parties are disclosed in Note 35.

Operating expenses include research expenditure of $797 million (31 December 2024: $801 million), which was recognized

as an expense in the year.

Other general administrative expenses include recharges of $1,350 million (31 December 2024: $1,424 million) with respect to

costs incurred by fellow subsidiary undertakings

The UK bank levy is applied to chargeable equity and liabilities on the balance sheet of UK operations. Key exclusions

from chargeable equity and liabilities include Tier 1 capital, insured or guaranteed retail deposits, repos secured on certain

sovereign debt and liabilities subject to netting. The rates are 0.10 per cent for short-term liabilities and 0.05 per cent for

long-term liabilities.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 100

8. Credit impairment

Accounting policy

Significant accounting estimates and judgements

The Group’s expected credit loss (ECL) calculations are outputs of complex models with a number of underlying assumptions.

The significant judgements in determining expected credit loss include:

• The Group’s criteria for assessing if there has been a significant increase in credit risk;

• Development of expected credit loss models, including the choice of inputs relating to macroeconomic variables;

• Determining estimates of forward looking macroeconomic forecasts;

• Evaluation of management overlays and post-model adjustments;

• Determination of recovery scenarios and probability weightings for Stage 3 individually assessed provisions

The calculation of credit impairment provisions also involves expert credit judgement to be applied by the credit risk

management team based upon counterparty information they receive from various sources including relationship managers

and on external market information. Details on the approach for determining expected credit loss can be found in the credit

risk section, under IFRS 9 Methodology (page 54).

Estimates of forecasts of key macroeconomic variables underlying the expected credit loss calculation can be found within

the Risk review, Key assumptions and judgements in determining expected credit loss (page 55).

Expected credit losses

An ECL represents the present value of expected cash shortfalls over the residual term of a financial asset, undrawn

commitment or financial guarantee.

A cash shortfall is the difference between the cash flows that are due in accordance with the contractual terms of the

instrument and the cash flows that the Group expects to receive over the contractual life of the instrument.

Measurement

ECL are computed as unbiased, probability-weighted amounts which are determined by evaluating a range of reasonably

possible outcomes, the time value of money, and considering all reasonable and supportable information including that

which is forward-looking.

For material portfolios, the estimate of expected cash shortfalls is determined by multiplying the probability of default (PD)

with the loss given default (LGD) with the expected exposure at the time of default (EAD). There may be multiple default

events over the lifetime of an instrument. Further details on the components of PD, LGD and EAD are disclosed in the Credit

risk section. For less material Retail Banking loan portfolios, the Group has adopted less sophisticated approaches based on

historical roll rates or loss rates.

Forward-looking economic assumptions are incorporated into the PD, LGD and EAD where relevant and where they

influence credit risk, such as GDP growth rates, interest rates, house price indices and commodity prices among others. These

assumptions are incorporated using the Group’s most likely forecast for a range of macroeconomic assumptions. These

forecasts are determined using all reasonable and supportable information, which includes both internally developed

forecasts and those available externally, and are consistent with those used for budgeting, forecasting and capital planning.

To account for the potential non-linearity in credit losses, multiple forward-looking scenarios are incorporated into the range

of reasonably possible outcomes for all material portfolios. For example, where there is a greater risk of downside credit

losses than upside gains, multiple forward-looking economic scenarios are incorporated into the range of reasonably

possible outcomes, both in respect of determining the PD (and where relevant, the LGD and EAD) and in determining the

overall ECL amounts. These scenarios are determined using a Monte Carlo approach centred around the Group’s most likely

forecast of macroeconomic assumptions.

The period over which cash shortfalls are determined is generally limited to the maximum contractual period for which the

Group is exposed to credit risk. However, for certain revolving credit facilities, which include credit cards or overdrafts, the

Group’s exposure to credit risk is not limited to the contractual period. For these instruments, the Group estimates an

appropriate life based on the period that the Group is exposed to credit risk, which includes the effect of credit risk

management actions such as the withdrawal of undrawn facilities.

For credit-impaired financial instruments, the estimate of cash shortfalls may require the use of expert credit judgement.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 101

8. Credit impairment continued

The estimate of expected cash shortfalls on a collateralised financial instrument reflects the amount and timing of cash

flows that are expected from foreclosure on the collateral less the costs of obtaining and selling the collateral, regardless

of whether foreclosure is deemed probable.

Cash flows from unfunded credit enhancements held are included within the measurement of expected credit losses if they

are part of, or integral to, the contractual terms of the instrument (this includes financial guarantees, unfunded risk

participations and other non-derivative credit insurance). Although non-integral credit enhancements do not impact the

measurement of expected credit losses, a reimbursement asset is recognised to the extent of the ECL recorded if this is

virtually certain to be received.

Cash shortfalls are discounted using the effective interest rate (or credit-adjusted effective interest rate for purchased or

originated credit-impaired instruments (POCI)) on the financial instrument as calculated at initial recognition or if the

instrument has a variable interest rate, the current effective interest rate determined under the contract.

Instruments	Location of expected credit loss provisions
Financial assets held at amortised cost	Loss provisions: netted against gross carrying value 1
Financial assets held FVOCI – Debt instruments	Other comprehensive income (FVOCI expected credit loss reserve) 2
Loan commitments	Provisions for liabilities and charges 3
Financial guarantees	Provisions for liabilities and charges 3

1 Purchased or originated credit-impaired assets do not attract an expected credit loss provision on initial recognition. An expected credit loss provision will

be recognised only if there is an increase in expected credit losses from that considered at initial recognition.

2 Debt and treasury securities classified as fair value through other comprehensive income (FVOCI) are held at fair value on the face of the balance sheet.

The expected credit loss attributed to these instruments is held as a separate reserve within other comprehensive income (OCI) and is recycled to the profit

and loss account along with any fair value measurement gains or losses held within FVOCI when the applicable instruments are derecognised.

3 Expected credit loss on loan commitments and financial guarantees is recognised as a liability provision. Where a financial instrument includes both a loan

(i.e. financial asset component) and an undrawn commitment (i.e. loan commitment component), and it is not possible to separately identify the expected

credit loss on these components, expected credit loss amounts on the loan commitment are recognised together with expected credit loss amounts on the

financial asset. To the extent the combined expected credit loss exceeds the gross carrying amount of the financial asset, the expected credit loss is recognised

as a liability provision.

Recognition

12 months expected credit losses (stage 1)

Expected credit losses are recognised at the time of initial recognition of a financial instrument and represent the lifetime

cash shortfalls arising from possible default events up to 12 months into the future from the balance sheet date. Expected

credit losses continue to be determined on this basis until there is either a significant increase in the credit risk of an

instrument or the instrument becomes credit-impaired. If an instrument is no longer considered to exhibit a significant

increase in credit risk, expected credit losses will revert to being determined on a 12-month basis.

Significant increase in credit risk (Stage 2)

Significant increase in credit risk is assessed by comparing the risk of default of an exposure at the reporting date to the risk

of default at origination (after taking into account the passage of time). Significant does not mean statistically significant

nor is it assessed in the context of changes in expected credit loss. Whether a change in the risk of default is significant or not

is assessed using a number of quantitative and qualitative factors, the weight of which depends on the type of product and

counterparty. Financial assets that are 30 or more days past due and not credit-impaired will always be considered to have

experienced a significant increase in credit risk. For less material portfolios where a loss rate or roll rate approach is applied to

compute expected credit loss, significant increase in credit risk is primarily based on 30 days past due.

Quantitative factors include an assessment of whether there has been significant increase in the forward-looking probability

of default (PD) since origination. A forward-looking PD is one that is adjusted for future economic conditions to the extent

these are correlated to changes in credit risk. We compare the residual lifetime PD at the balance sheet date to the residual

lifetime PD that was expected at the time of origination for the same point in the term structure and determine whether both

the absolute and relative change between the two exceeds predetermined thresholds. To the extent that the differences

between the measures of default outlined exceed the defined thresholds, the instrument is considered to have experienced a

significant increase in credit risk (see page 58 to 59).

Qualitative factors assessed include those linked to current credit risk management processes, such as lending placed

on non-purely precautionary early alert (and subject to closer monitoring).

A non-purely precautionary early alert account is one which exhibits material credit concerns which may result in a default by

the client if left unaddressed requiring closer monitoring, supervision, or attention by management. Indicators could include a

rapid erosion of position within the industry, concerns over management’s ability to manage operations, weak/deteriorating

operating results, liquidity strain and overdue balances among other factors .

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 102

Notes to the financial statements

8. Credit impairment continued

Credit-impaired (or defaulted) exposures (Stage 3)

Financial assets that are credit-impaired (or in default) represent those that are at least 90 days past due in respect of

principal and/or interest. Financial assets are also considered to be credit-impaired where the obligors are unlikely to pay on

the occurrence of one or more observable events that have a detrimental impact on the estimated future cash flows of the

financial asset. It may not be possible to identify a single discrete event but instead the combined effect of several events

may cause financial assets to become credit-impaired.

• Evidence that a financial asset is credit-impaired includes observable data about the following events:

• Significant financial difficulty of the issuer or borrower;

• Breach of contract such as default or a past due event;

• For economic or contractual reasons relating to the borrower’s financial difficulty, the lenders of the borrower have

granted the borrower concession/s that lenders would not otherwise consider. This would include forbearance actions

(page 43);

• Pending or actual bankruptcy or other financial reorganisation to avoid or delay discharge of the borrower’s obligation/s;

• The disappearance of an active market for the applicable financial asset due to financial difficulties of the borrower;

• Purchase or origination of a financial asset at a deep discount that reflects incurred credit losses.

Lending commitments to a credit-impaired obligor that have not yet been drawn down are included to the extent that the

commitment cannot be withdrawn. Loss provisions against credit-impaired financial assets are determined based on an

assessment of the present value of expected cash shortfalls (discounted at the instrument’s original effective interest rate)

under a range of scenarios, including the realisation of any collateral held where appropriate. The Group’s definition of

default is aligned with the regulatory definition of default as set out in the UK’s onshored capital requirements regulations

(Art 178).

Expert credit judgement

For Corporate & Investment Banking and Private banking, borrowers are graded by credit risk management on a credit

grading (CG) scale from CG1 to CG14. Once a borrower starts to exhibit credit deterioration, it will move along the credit

grading scale in the performing book. When a borrower is classified as CG12 (which is the lowest performing book and credit

grade and is a qualitative grade and is a qualitative trigger for significant increase in credit risk (see page 58)), it will continue

to be primarily managed by relationship managers in the CIB unit with support from Stressed Asset Group (SAG) for certain

accounts. SAG is the Group’s specialist recovery unit, which is independent of the Client Coverage/Relationship Managers.

Borrowers graded CG12 exhibit well-defined weaknesses in areas such as management and/or performance but there is no

current expectation of a loss of principal or interest at this stage and there is no indication of unlikeliness to repay (it is still a

performing asset). Where the impairment assessment indicates that there will be a loss of principal on a loan in the likely

scenario, the borrower is graded a CG14 while borrowers of other credit-impaired loans are graded CG13. Instruments graded

CG13 or CG14 are regarded as stage 3.

Credit-impaired accounts are managed by SAG, which is independent of the Client Coverage/Relationship Managers.

Where a portion of exposure is considered not recoverable, a stage 3 credit impairment provision is raised. This stage 3

provision is the difference between the loan-carrying amount and the probability-weighted present value of estimated

future cash flows, reflecting a range of scenarios (typically the ‘upside’, ‘downside’ and ‘likely’ recovery outcomes). Where the

exposure is secured by collateral, the values used will incorporate the impact of forward-looking economic information on the

value recoverable collateral and time to realise the same.

The individual circumstances of each client are considered when SAG estimates future cashflows and the timing of future

recoveries which involves significant judgement. All available sources, such as cashflow arising from operations, selling assets

or subsidiaries, realising collateral or payments under guarantees, are considered. In any decision relating to the raising of

provisions, the Group attempts to balance economic conditions, local knowledge and experience, and the results of

independent asset reviews. The individual impairment provisions (viz. those not directly from a model) are approved by

Stressed Assets Risk (SAR) who are in the Second Line of Defence.

For financial assets which are not individually significant, such as the Retail Banking portfolio or small business loans, which

comprise a large number of homogeneous loans that share similar characteristics, statistical estimates and techniques are

used, as well as credit scoring analysis.

Directors’ Report and Financial Statements 2025 | Standard Chartered 103

8. Credit impairment continued

Wealth, Retail and Business Banking clients are considered credit-impaired where they are more 90 days past due, or if the

borrower files for bankruptcy or other forbearance programme, the borrower is deceased or the business is closed in the case

of a small business, or if the borrower surrenders the collateral, or there is an identified fraud on the account. Additionally, if

the account is unsecured and the borrower has other credit accounts with the Group that are considered credit-impaired, the

account may be also be credit-impaired.

Techniques used to compute impairment amounts use models which analyse historical repayment and default rates over a

time horizon. Where various models are used, judgement is required to analyse the available information provided and select

the appropriate model or combination of models to use.

The core components in determining credit-impaired expected credit loss provisions are the value of gross charge-off and

recoveries. Gross charge-off and/or loss provisions are recognised when it is established that the account is unlikely to pay

through the normal process. Recovery of unsecured debt post credit impairment is recognised based on actual cash

collected, either directly from clients or through the sale of defaulted loans to third-party institutions. Release of credit

impairment provisions for secured loans is recognised if the loan outstanding is paid in full (release of full provision), or the

provision is higher than the loan outstanding (release of the excess provision).

Expert credit judgement is also applied to determine whether any post-model adjustments are required for credit risk

elements which are not captured by the models.

Modified financial instruments

Where the original contractual terms of a financial asset have been modified for credit reasons and the instrument has not

been derecognised (an instrument is derecognised when a modification results in a change in cash flows that the Group

would consider substantial), the resulting modification loss is recognised within credit impairment in the income statement

with a corresponding decrease in the gross carrying value of the asset. If the modification involved a concession that the

bank would not otherwise consider, the instrument is considered to be credit-impaired and is considered forborne.

Expected credit loss for modified financial assets that have not been derecognised and are not considered to be credit-

impaired will be recognised on a 12-month basis, or a lifetime basis, if there is a significant increase in credit risk. These assets

are assessed (by comparison to the origination date) to determine whether there has been a significant increase in credit risk

subsequent to the modification. Although loans may be modified for non-credit reasons, a significant increase in credit risk

may occur. In addition to the recognition of modification gains and losses, the revised carrying value of modified financial

assets will impact the calculation of expected credit losses, with any increase or decrease in expected credit loss recognised

within impairment.

Forborne loans

Forborne loans are those loans that have been modified in response to a customer’s financial difficulties. Forbearance

strategies assist clients who are temporarily in financial distress and are unable to meet their original contractual repayment

terms. Forbearance can be initiated by the client, the Group or a third-party including government sponsored programmes or

a conglomerate of credit institutions. Forbearance may include debt restructuring such as new repayment schedules,

payment deferrals, tenor extensions, interest only payments, lower interest rates, forgiveness of principal, interest or fees, or

relaxation of loan covenants.

Forborne loans that have been modified (and not derecognised) on terms that are not consistent with those readily

available in the market and/or where we have granted a concession compared to the original terms of the loans are

considered credit-impaired if there is a detrimental impact on cash flows. The modification loss (see Classification and

measurement – Modifications) is recognised in the profit or loss within credit impairment and the gross carrying value of the

loan reduced by the same amount. The modified loan is disclosed as ‘Loans subject to forbearance – credit-impaired’.

Loans that have been subject to a forbearance modification, but which are not considered credit-impaired (not classified as

CG13 or CG14), are disclosed as ‘Forborne – not credit-impaired’. This may include amendments to covenants within the

contractual terms.

Write-offs of credit-impaired instruments and reversal of impairment

To the extent a financial debt instrument is considered irrecoverable, the applicable portion of the gross carrying value is

written off against the related loan provision. Such loans are written off after all the necessary procedures have been

completed, it is decided that there is no realistic probability of recovery and the amount of the loss has been determined.

Subsequent recoveries of amounts previously written off decrease the amount of the provision for credit impairment in the

income statement.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 104

Notes to the financial statements

8. Credit impairment continued

Loss provisions on purchased or originated

credit-impaired instruments (POCI)

The Group measures expected credit loss on a lifetime basis for POCI instruments throughout the life of the instrument.

However, expected credit loss is not recognised in a separate loss provision on initial recognition for POCI instruments as the

lifetime expected credit loss is inherent within the gross carrying amount of the instruments. The Group recognises the

change in lifetime expected credit losses arising subsequent to initial recognition in the income statement and the

cumulative change as a loss provision. Where lifetime expected credit losses on POCI instruments are less than those at initial

recognition, then the favourable differences are recognised as impairment gains in the income statement (and as

impairment loss where the expected credit losses are greater).

Improvement in credit risk/curing

For financial assets that are credit-impaired (stage 3), a transfer to stage 2 or stage 1 is only permitted where the instrument

is no longer considered to be credit-impaired. An instrument will no longer be considered credit-impaired when there is no

shortfall of cash flows compared to the original contractual terms.

For financial assets within stage 2, these can only be transferred to stage 1 when they are no longer considered to have

experienced a significant increase in credit risk.

Where significant increase in credit risk was determined using quantitative measures, the instruments will automatically

transfer back to stage 1 when the original PD based transfer criteria are no longer met. Where instruments were transferred

to stage 2 due to an assessment of qualitative factors, the issues that led to the reclassification must be cured before the

instruments can be reclassified to stage 1. This includes instances where management actions led to instruments being

classified as stage 2, requiring that action to be resolved before loans are reclassified to stage 1.

A forborne loan can only be removed from being disclosed as forborne if the loan is performing (stage 1 or 2) and a further

two-year probation period is met.

In order for a forborne loan to become performing, the following criteria have to be satisfied:

• At least a year has passed with no default based upon the forborne contract terms

• The customer is likely to repay its obligations in full without realising security

• The customer has no accumulated impairment against amount outstanding (except for ECL)

Subsequent to the criteria above, a further two-year probation period has to be fulfilled, whereby regular payments are

made by the customer and none of the exposures to the customer are more than 30 days past due.

	2025	2024
	$million	$million
Net credit impairment on loans and advances to banks and customers	230	58
Net credit impairment against profit or loss during the period relating to debt securities 1	28	(58)
Net credit impairment relating to financial guarantees and loan commitments	(14)	18
Net credit impairment relating to other financial assets	4	(3)
Credit impairment 1	248	15

1 Includes impairment charge of $5 million (31 December 2024: $14 million release) on originated credit-impaired debt securities.

9. Goodwill, property, plant and equipment and other impairment

Accounting policy

Refer to the below referenced notes for the relevant accounting policy.

	2025	2024
	$million	$million
Impairment of property, plant and equipment (Note 17)	1	2
Impairment of other intangible assets (Note 16)	22	383
Other	6	25
Goodwill, fixed assets and other impairment	29	410

Directors’ Report and Financial Statements 2025 | Standard Chartered 105

10. Taxation

Accounting policy

Income tax payable on profits is based on the applicable tax law in each jurisdiction and is recognised as an expense in the

period in which profits arise.

Deferred tax is provided on temporary differences arising between the tax bases of assets and liabilities and their carrying

amounts in the consolidated financial statements. Deferred tax is determined using tax rates (and laws) that have been

enacted or substantively enacted as at the balance sheet date, and that are expected to apply when the related deferred

tax asset is realised or the deferred income tax liability is settled.

Deferred tax assets are recognised where it is probable that future taxable profit will be available against which the

temporary differences can be utilised. Where permitted, deferred tax assets and liabilities are offset on an entity basis and

not by component of deferred taxation.

Current and deferred tax relating to items which are charged or credited directly to equity, is credited or charged directly to

equity and is subsequently recognised in the income statement together with the current or deferred gain or loss.

Other accounting estimates and judgements

• Determining the Group’s tax charge for the year involves estimation and judgement, which includes an interpretation of

local tax laws and an assessment of whether the tax authorities will accept the position taken. These judgements take

account of external advice where appropriate, and the Group’s view on settling with the relevant tax authorities.

• The Group provides for current tax liabilities at the best estimate of the amount that is expected to be paid to the tax

authorities where an outflow is probable. In making its estimates the Group assumes that the tax authorities will examine

all the amounts reported to them and have full knowledge of all relevant information.

• The recoverability of the Group’s deferred tax assets is based on management’s judgement of the availability of future

taxable profits against which the deferred tax assets will be utilised. In preparing management forecasts the effect of

applicable laws and regulations relevant to the utilisation of future taxable profits have been considered.

The following table provides analysis of taxation charge in the year:

	2025	2024
	$million	$million
The charge for taxation based upon the profit for the year comprises:
Current tax:
United Kingdom corporation tax at 25 per cent (2024: 25 per cent):
Current tax charge on income for the year	–	–
Adjustments in respect of prior years (including double tax relief)	(3)	1
Foreign tax:
Current tax charge on income for the year	1,359	1,357
Adjustments in respect of prior years	(60)	(7)
	1,296	1,351
Deferred tax:
Origination/reversal of temporary differences	69	123
Adjustments in respect of prior years	(51)	(9)
	18	114
Tax on profits on ordinary activities	1,314	1,465
Effective tax rate	27.8%	32.9%

The tax charge for the year of $1,314 million (31 December 2024: $1,465 million) on a profit before tax of $4,724 million

(31 December 2024: $4,447 million) reflects the impact of non-creditable withholding taxes and other taxes, and non-deductible

expenses partly offset by adjustments in respect of prior periods.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 106

10. Taxation continued

Tax rate: The tax charge for the year is higher than the charge at the rate of corporation tax in the UK, 25 per cent. The

differences are explained below:

	2025		2024
	$million	%	$million	%
Profit on ordinary activities before tax	4,724		4,447
Tax at 25 per cent (2024: 25 per cent)	1,181	25.0	1,112	25.0
Lower tax rates on overseas earnings	(245)	(5.2)	(274)	(6.2)
Higher tax rates on overseas earnings	219	4.6	269	6.1
Tax at domestic rates applicable where profits earned	1,155	24.4	1,107	24.9
Non-creditable withholding taxes and other taxes	248	5.3	221	5.0
Tax exempt income	(48)	(1.0)	(51)	(1.1)
Non-deductible expenses	130	2.7	156	3.5
Bank levy	13	0.3	23	0.5
Non-taxable losses on investments 1	8	0.2	50	1.1
Payments on financial instruments in reserves	(83)	(1.8)	(75)	(1.7)
Deferred tax not recognised	53	1.1	64	1.4
Deferred tax rate changes	4	0.1	(3)	(0.1)
Adjustments to tax charge in respect of prior years	(114)	(2.4)	(15)	(0.3)
Other items	(52)	(1.1)	(12)	(0.3)
Tax on profit on ordinary activities	1,314	27.8	1,465	32.9

1 2025 Includes tax impact of $3million (2024: $55million) relating to loss on sale of subsidiaries in Africa.

Factors affecting the tax charge in future years: the Group’s tax charge, and effective tax rate in future years could be affected

by several factors including acquisitions, disposals and restructuring of our businesses, the mix of profits across jurisdictions with

different reported tax rates, changes in tax legislation and tax rates and resolution of uncertain tax positions.

The evaluation of uncertain tax positions involves an interpretation of local tax laws which could be subject to challenge by a

tax authority, and an assessment of whether the tax authorities will accept the position taken. The Group does not currently

consider that assumptions or judgements made in assessing tax liabilities have a significant risk of resulting in a material

adjustment within the next financial year.

		2025			2024
	Current tax	Deferred tax	Total	Current tax	Deferred tax	Total
Tax recognised in other comprehensive income	$million	$million	$million	$million	$million	$million
Items that will not be reclassified to income statement	(10)	10	–	(16)	108	92
Own credit adjustment	–	–	–	1	27	28
Equity instruments at fair value through other comprehensive income	(9)	–	(9)	(17)	89	72
Retirement benefit obligations	(1)	10	9	–	(8)	(8)
Items that may be reclassed subsequently to income statement	(3)	(39)	(42)	(7)	(31)	(38)
Debt instruments at fair value through other comprehensive income	(3)	(16)	(19)	(7)	(20)	(27)
Cash flow hedges	–	(23)	(23)	–	(11)	(11)
Total tax credit/(charge) recognised in equity	(13)	(29)	(42)	(23)	77	54

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 107

10. Taxation continued

Current tax: The following are the movements in current tax during the year:

	Group		Company
	2025	2024	2025	2024
	$million	$million	$million	$million
Current tax comprises:
Current tax assets	644	484	516	395
Current tax liabilities	(559)	(445)	(294)	(188)
Net current tax opening balance	85	39	222	207
Movements in income statement	(1,296)	(1,351)	(740)	(681)
Movements in other comprehensive income	(13)	(23)	(13)	(23)
Taxes paid	1,282	1,422	711	720
Other movements	(26)	(2)	(22)	(1)
Net current tax balance as at 31 December	32	85	158	222
Current tax assets	549	644	412	516
Current tax liabilities	(517)	(559)	(254)	(294)
Total	32	85	158	222

Deferred tax: The following are the major deferred tax liabilities and assets recognised by the Group and movements thereon

during the year:

Group

	At 1 January	Exchange & other	(Charge)/credit	(Charge)/credit	At 31 December
	2025	adjustments	to profit	to equity 2025
	$million	$million	$million	$million	$million
Deferred tax comprises:
Accelerated tax depreciation	(260)	(17)	–	–	(277)
Impairment provisions on loans and advances	178	(5)	–	–	173
Tax losses carried forward	69	9	(33)	–	45
Equity instruments at fair value through other comprehensive income	(32)	(5)	–	–	(37)
Debt instruments at fair value through other comprehensive income	(3)	7	–	(16)	(12)
Cashflow hedges	(7)	(4)	–	(23)	(34)
Own credit adjustment	–	–	–	–	–
Retirement benefit obligations	(7)	1	13	10	17
Share-based payments	41	2	6	–	49
Other temporary differences	(56)	(2)	(4)	2	(60)
Net deferred tax	(77)	(14)	(18)	(27)	(136)

	At 1 January	Exchange & other	(Charge)/credit	(Charge)/credit	At 31 December
	2024	adjustments	to profit	to equity 2024
	$million	$million	$million	$million	$million
Deferred tax comprises:
Accelerated tax depreciation	(318)	8	53	(3)	(260)
Impairment provisions on loans and advances	203	(9)	(16)	–	178
Tax losses carried forward	70	(24)	23	–	69
Equity instruments at fair value through other comprehensive income	(126)	5	–	89	(32)
Debt instruments at fair value through other comprehensive income	28	4	(15)	(20)	(3)
Cashflow hedges	3	1	–	(11)	(7)
Own credit adjustment	(52)	25	–	27	–
Retirement benefit obligations	2	(4)	3	(8)	(7)
Share-based payments	30	–	11	–	41
Other temporary differences	80	2	(173)	35	(56)
Net deferred tax	(80)	8	(114)	109	(77)

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 108

10. Taxation continued

Deferred tax comprises assets and liabilities as follows:

		2025			2024
	Total	Asset	Liability	Total	Asset	Liability
	$million	$million	$million	$million	$million	$million
Deferred tax comprises:
Accelerated tax depreciation	(277)	41	(318)	(260)	29	(289)
Impairment provisions on loans and advances	173	175	(2)	178	153	25
Tax losses carried forward	45	14	31	69	46	23
Equity instruments at fair value through other comprehensive income	(37)	(2)	(35)	(32)	(7)	(25)
Debt instruments at fair value through other comprehensive income	(12)	(3)	(9)	(3)	5	(8)
Cashflow hedges	(34)	(12)	(22)	(7)	(2)	(5)
Own credit adjustment	–	–	–	–	–	–
Retirement benefit obligations	17	34	(17)	(7)	14	(21)
Share-based payments	49	14	35	41	7	34
Other temporary differences	(60)	126	(186)	(56)	105	(161)
	(136)	387	(523)	(77)	350	(427)

Deferred tax: The following are the major deferred tax liabilities and assets recognised by the Company and movements

thereon during the year:

Company

	At 1 January	Exchange & other	(Charge)/credit	(Charge)/credit	At 31 December
	2025	adjustments	to profit	to equity 2025
	$million	$million	$million	$million	$million
Deferred tax comprises:
Accelerated tax depreciation	(202)	(12)	–	–	(214)
Impairment provisions on loans and advances	96	(1)	5	–	100
Tax losses carried forward	50	7	(12)	–	45
Equity instruments at fair value through other comprehensive income	(30)	(5)	–	–	(35)
Debt instruments at fair value through other comprehensive income	22	1	1	(22)	2
Cashflow hedges	(4)	(3)	–	(14)	(21)
Own credit adjustment	–	–	–	–	–
Retirement benefit obligations	(15)	1	2	9	(3)
Share-based payments	16	–	1	–	17
Other temporary differences	(8)	(5)	15	–	2
Net deferred tax	(75)	(17)	12	(27)	(107)

	At 1 January	Exchange & other	(Charge)/credit	(Charge)/credit	At 31 December
	2024	adjustments	to profit	to equity 2024
	$million	$million	$million	$million	$million
Deferred tax comprises:
Accelerated tax depreciation	(264)	8	54	–	(202)
Impairment provisions on loans and advances	121	(7)	(18)	–	96
Tax losses carried forward	70	(25)	5	–	50
Equity instruments at fair value through other comprehensive income	(123)	2	–	91	(30)
Debt instruments at fair value through other comprehensive income	49	(1)	–	(26)	22
Cashflow hedges	5	3	–	(12)	(4)
Own credit adjustment	(52)	25	–	27	–
Retirement benefit obligations	(5)	(6)	3	(7)	(15)
Share-based payments	11	–	5	–	16
Other temporary differences	90	2	(100)	–	(8)
Net deferred tax	(98)	1	(51)	73	(75)

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 109

10. Taxation continued

Deferred tax comprises assets and liabilities as follows:

		2025			2024
	Total	Asset	Liability	Total	Asset	Liability
	$million	$million	$million	$million	$million	$million
Deferred tax comprises:
Accelerated tax depreciation	(214)	42	(256)	(202)	31	(233)
Impairment provisions on loans and advances	100	100	–	96	96	–
Tax losses carried forward	45	14	31	50	26	24
Equity instruments at fair value through other comprehensive income	(35)	(1)	(34)	(30)	(7)	(23)
Debt instruments at fair value through other comprehensive income	2	2	–	22	22	–
Cashflow hedges	(21)	(11)	(10)	(4)	(2)	(2)
Own credit adjustment	–	–	–	–	–	–
Retirement benefit obligations	(3)	19	(22)	(15)	9	(24)
Share-based payments	17	13	4	16	6	10
Other temporary differences	2	73	(71)	(8)	52	(60)
	(107)	251	(358)	(75)	233	(308)

Group

The recoverability of the Group’s deferred tax assets is based on management’s judgement of the availability of future taxable

profits against which the deferred tax assets will be utilised. The Group’s total deferred tax assets include $45 million relating to

tax losses carried forward, of which $31 million arises in legal entities with offsetting deferred tax liabilities. The remaining

deferred tax assets on losses of $14 million are forecast to be recovered before expiry and within five years.

Company

The recoverability of the Group’s deferred tax assets is based on management’s judgement of the availability of future taxable

profits against which the deferred tax assets will be utilised. The Group’s total deferred tax assets include $45 million relating to

tax losses carried forward, of which $31 million arises in legal entities with offsetting deferred tax liabilities. The remaining

deferred tax assets on losses of $14 million are forecast to be recovered before expiry and within five years.

Unrecognised deferred tax

Group

	Net 2025	Gross 2025	Net 2024	Gross 2024
	$million	$million	$million	$million
No account has been taken of the following potential deferred tax
assets/(liabilities):
Withholding tax on unremitted earnings from overseas subsidiaries
and associates	(379)	(2,912)	(358)	(2,719)
Tax losses	985	3,936	1,027	4,099
Held over gains on incorporation of overseas branches	(184)	(656)	(171)	(610)
Other temporary differences	305	1,174	345	1,310

Company

	Net 2025	Gross 2025	Net 2024	Gross 2024
	$million	$million	$million	$million
No account has been taken of the following potential deferred tax
assets/(liabilities):
Withholding tax on unremitted earnings from overseas subsidiaries
and associates	(265)	(1,899)	(243)	(1,768)
Tax losses	880	3,403	911	3,530
Held over gains on incorporation of overseas branches	(184)	(656)	(171)	(610)
Other temporary differences	289	1,086	333	1,245

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 110

11. Dividends

Accounting policy

The Court considers a number of factors which include the rate of recovery in the Group’s financial performance, the

macroeconomic environment, and opportunities to further invest in our business and grow profitably in our markets.

Ordinary equity shares

	2025		2024
	Cents per		Cents per
	share	$million	share	$million
2024/2023 final dividend declared and paid during the year	5	995	6	1,240
2025/2024 interim dividend declared and paid during the year	6	1,281	6	1,155

Dividends on ordinary equity shares are recorded in the period in which they are declared and, in respect of the final dividend,

have been approved by the shareholders.

Preference shares and Additional Tier 1 securities

Dividends on these preference shares and securities classified as equity are recorded in the period in which they are declared

	2025	2024
	$million	$million
Non-cumulative redeemable preference shares:
Floating rate preference shares of $5 each 1	47	54
Additional Tier 1 securities: Fixed rate resetting perpetual subordinated contingent convertible securities	342	295
	389	349

1 Floating rate is based on Secured Overnight Financing Rate (SOFR), average rate paid for floating preference shares is 6.23% (2024: 7.21%).

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 111

12. Financial instruments

Classification and measurement

Accounting policy

Financial assets held at amortised cost and fair value through other comprehensive income

Debt instruments held at amortised cost or held at FVOCI have contractual terms that give rise to cash flows that are solely

payments of principal and interest (SPPI) characteristics.

In assessing whether the contractual cash flows have SPPI characteristics, the Group considers the contractual terms of the

instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or

amount of contractual cash flows such that it would not meet this condition. In making the assessment, the Group considers:

• Contingent events that would change the amount and timing of cash flows

• Leverage features

• Prepayment and extension terms

• Terms that limit the Group’s claim to cash flows from specified assets (e.g. non-recourse asset arrangements)

• Features that modify consideration of the time value of money – e.g. periodical reset of interest rates.

Whether financial assets are held at amortised cost or at FVOCI depends on the objectives of the business models under

which the assets are held. A business model refers to how the Group manages financial assets to generate cash flows.

The Group makes an assessment of the objective of a business model in which an asset is held at the individual product

business line, and where applicable within business lines depending on the way the business is managed and information is

provided to management. Factors considered include:

• How the performance of the product business line is evaluated and reported to the Group’s management

• How managers of the business model are compensated, including whether management is compensated based on the

fair value of assets or the contractual cash flows collected

• The risks that affect the performance of the business model and how those risks are managed

• The frequency, volume and timing of sales in prior periods, the reasons for such sales and expectations about future

sales activity.

The Group’s business model assessment is as follows:

Business	Business
model	objective	Characteristics		Businesses		Products
Hold to	Intent is to	•	Providing financing and	•	Global Banking	•	Loans and
collect	originate financial	originating assets to earn interest		•	Transaction	advances
	assets and hold	income as primary income stream		Banking		•	Debt securities
	them to maturity,	•	Performing credit risk	•	Retail Lending
	collecting the	management activities		•	Treasury
	contractual cash	•	Costs include funding costs, transaction	Markets (Loans
	flows over the term	costs and impairment losses		and Borrowings)
	of the instrument
				•	Global Markets
Hold to	Business objective	•	Portfolios held for liquidity needs; or	•	Treasury	•	Debt securities
collect	met through both	where a certain interest yield profile is		Markets
and sell	hold to collect and	maintained; or that are normally		•	Central Credit
	by selling financial	rebalanced to achieve matching of		Unit
	assets	duration of assets and liabilities
		•	Income streams come from interest
		income, fair value changes, and
		impairment losses
Fair value	All other business	•	Assets held for trading	•	Treasury	•	Derivatives
through	objectives,	•	Assets that are originated, purchased,	Markets		•	Equity shares
profit	including trading	and sold for profit taking or		•	Global Markets	•	Trading
or loss	and managing	underwriting activity		•	All other	portfolios
	financial assets on	•	Performance of the portfolio is		business lines	•	Reverse repos
	a fair value basis	evaluated on a fair value basis				•	Bond and Loan
		•	Income streams are from fair value				Syndication
			changes or trading gains or losses

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 112

12. Financial instruments continued

Accounting policy continued

The Group’s business model assessment is as follows:

Financial assets which have SPPI characteristics and that are held within a business model whose objective is to hold

financial assets to collect contractual cashflows (hold to collect) are recorded at amortised cost. Conversely, financial assets

which have SPPI characteristics but are held within a business model whose objective is achieved by both collecting

contractual cashflows and selling financial assets (Hold to collect and sell) are classified as held at FVOCI. Both hold to

collect and hold to collect and sell business models involve holding financial assets to collect the contractual cashflows.

However, the business models are distinct by reference to the frequency and significance that asset sales play in meeting the

objective under which a particular group of financial assets is managed. Hold to collect business models are characterised by

asset sales that are incidental to meeting the objectives under which a group of assets is managed. Sales of assets under a

hold to collect business model can be made to manage increases in the credit risk of financial assets but sales for other

reasons should be infrequent or insignificant. Cashflows from the sale of financial assets under a hold to collect and sell

business model by contrast are integral to achieving the objectives under which a particular group of financial assets are

managed. This may be the case where frequent sales of financial assets are required to manage the Group’s daily liquidity

requirements or to meet regulatory requirements to demonstrate liquidity of financial instruments. Sales of assets under hold

to collect and sell business models are therefore both more frequent and more significant in value than those under the hold

to collect model.

Equity instruments designated as held at FVOCI

Non-trading equity instruments acquired for strategic purposes rather than capital gain may be irrevocably designated at

initial recognition as held at FVOCI on an instrument-by-instrument basis. Dividends received are recognised in profit or loss.

Gains and losses arising from changes in the fair value of these instruments, including foreign exchange gains and losses, are

recognised directly in equity and are never reclassified to profit or loss even on derecognition.

Mandatorily classified at fair value through profit or loss

Financial assets and liabilities which are mandatorily held at fair value through profit or loss are split between two

subcategories as follows:

Trading, including:

• Financial assets and liabilities held for trading, which are those acquired principally for the purpose of selling in the

short-term

• Derivatives

Non-trading mandatorily at fair value through profit or loss, including:

• Instruments in a business which has a fair value business model (see the Group’s business model assessment) which are

not trading or derivatives

• Hybrid financial assets that contain one or more embedded derivatives

• Financial assets that would otherwise be measured at amortised cost or FVOCI but which do not have SPPI characteristics

• Equity instruments that have not been designated as held at FVOCI

• Financial liabilities that constitute contingent consideration in a business combination

Designated at fair value through profit or loss

Financial assets and liabilities may be designated at fair value through profit or loss when the designation eliminates or

significantly reduces a measurement or recognition inconsistency that would otherwise arise from measuring assets or

liabilities on a different basis (‘accounting mismatch’).

Financial liabilities may also be designated at fair value through profit or loss where they are managed on a fair value basis

or have an embedded derivative where the Group is not able to separately value, and thus bifurcate, the embedded

derivative component.

Financial liabilities held at amortised cost

Financial liabilities that are not financial guarantees or loan commitments and that are not classified as financial liabilities

held at fair value through profit or loss are classified as financial liabilities held at amortised cost.

Preference shares which carry a mandatory coupon that represents a market rate of interest at the issue date, or which are

redeemable on a specific date or at the option of the shareholder are classified as financial liabilities and are presented in

other borrowed funds. The dividends on these preference shares are recognised in the income statement as interest expense

on an amortised cost basis using the effective interest method.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 113

12. Financial instruments continued

Financial guarantee contracts and loan commitments

The Group issues financial guarantee contracts and loan commitments in return for fees. Financial guarantee contracts and

any loan commitments issued at below-market interest rates are initially recognised at their fair value as a financial liability,

and subsequently measured at the higher of the initial value less the cumulative amount of income recognised in accordance

with the principles of IFRS 15 Revenue from Contracts with Customers and their expected credit loss provision. Loan

commitments may be designated at fair value through profit or loss where that is the business model under which such

contracts are held.

Fair value of financial assets and liabilities

The fair value of financial instruments is generally measured on the basis of the individual financial instrument. However,

when a group of financial assets and financial liabilities is managed on the basis of its net exposure to either market risk or

credit risk, the fair value of the group of financial instruments is measured on a net basis.

The fair values of quoted financial assets and liabilities in active markets are based on current prices. A market is regarded as

active if transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information

on an ongoing basis. If the market for a financial instrument, and for unlisted securities, is not active, the Group establishes

fair value by using valuation techniques.

Initial recognition

Regular way purchases and sales of financial assets held at fair value through profit or loss, and held at fair value through

other comprehensive income, are initially recognised on the trade date (the date on which the Group commits to purchase or

sell the asset). Loans and advances and other financial assets held at amortised cost are recognised on the settlement date

(the date on which cash is advanced to the borrowers).

All financial instruments are initially recognised at fair value, which is normally the transaction price, plus directly attributable

transaction costs for financial assets and liabilities which are not subsequently measured at fair value through profit or loss.

In certain circumstances, the initial fair value may be based on a valuation technique which may lead to the recognition of

profits or losses at the time of initial recognition. However, these profits or losses can only be recognised when the valuation

technique used is based solely on observable market data. In those cases where the initially recognised fair value is based on

a valuation model that uses unobservable inputs, the difference between the transaction price and the valuation model is

not recognised immediately in the income statement, it will be recognised in profit or loss following the passage of time, or as

the inputs become observable, or the transaction matures or is terminated.

Subsequent measurement

Financial assets and financial liabilities held at amortised cost

Financial assets and financial liabilities held at amortised cost are subsequently carried at amortised cost using the

effective interest method (see ‘Interest income and expense’). Foreign exchange gains and losses are recognised in the

income statement.

Where a financial instrument carried at amortised cost is the hedged item in a qualifying fair value hedge relationship, its

carrying value is adjusted by the fair value gain or loss attributable to the hedged risk.

Financial assets held at FVOCI

Debt instruments held at FVOCI are subsequently carried at fair value, with all unrealised gains and losses arising from

changes in fair value recognised in other comprehensive income and accumulated in a separate component of equity.

Foreign exchange gains and losses on the amortised cost are recognised in income. Changes in expected credit losses are

recognised in the profit or loss and are accumulated in equity. On derecognition, the cumulative fair value gains or losses, net

of the cumulative expected credit loss reserve, are transferred to the profit or loss.

Equity investments designated at FVOCI are subsequently carried at fair value with all unrealised gains and losses arising

from changes in fair value (including any related foreign exchange gains or losses) recognised in other comprehensive

income and accumulated in a separate component of equity. On derecognition, the cumulative reserve is transferred to

retained earnings and is not recycled to profit or loss.

Financial assets and liabilities held at fair value through profit or loss

Gains and losses arising from changes in fair value, including contractual interest income or expense, recorded in the net

trading income line in the profit or loss.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 114

12. Financial instruments continued

Derecognition of financial instruments

Financial assets which are subject to commercial refinancing where the loan is priced to the market with no payment related

concessions regardless of form of legal documentation or nature of lending will be derecognised. Where the Group’s rights to

the cash flows under the original contract have expired, the old loan is derecognised and the new loan is recognised at fair

value. For all other modifications for example forborne loans or restructuring, whether or not a change in the cash flows is

‘substantially different’ is judgemental and will be considered on a case-by-case basis, taking into account all the relevant

facts and circumstances.

On derecognition of a financial asset, the difference between the carrying amount of the asset (or the carrying amount

allocated to the portion of the asset derecognised) and the sum of the consideration received (including any new asset

obtained less any new liability assumed) and any cumulative gain or loss that had been recognised in other comprehensive

income is recognised in profit or loss except for equity instruments elected FVOCI (see above) and cumulative fair value

adjustments attributable to the credit risk of a liability that are held in other comprehensive income.

Financial liabilities are derecognised when they are extinguished. A financial liability is extinguished when the obligation is

discharged, cancelled or expires and this is evaluated both qualitatively and quantitatively. However, where a financial

liability has been modified, it is derecognised if the difference between the modified cash flows and the original cash flows is

more than 10 per cent, or if less than 10 per cent, the Group will perform a qualitative assessment to determine whether the

terms of the two instruments are substantially different.

If the Group purchases its own debt, it is derecognised and the difference between the carrying amount of the liability and

the consideration paid is included in ‘Other income’ except for the cumulative fair value adjustments attributable to the

credit risk of a liability that are held in Other comprehensive income, which are never recycled to the profit or loss.

Modified financial instruments

Financial assets and financial liabilities whose original contractual terms have been modified, including those loans subject

to forbearance strategies, are considered to be modified instruments. Modifications may include changes to the tenor, cash

flows and or interest rates among other factors.

Where derecognition of financial assets is appropriate (see Derecognition), the newly recognised residual loans are assessed

to determine whether the assets should be classified as purchased or originated credit-impaired assets (POCI).

Where derecognition is not appropriate, the gross carrying amount of the applicable instruments is recalculated as the

present value of the renegotiated or modified contractual cash flows discounted at the original effective interest rate (or

credit adjusted effective interest rate for POCI financial assets). The difference between the recalculated values and the

pre-modified gross carrying values of the instruments are recorded as a modification gain or loss in the profit or loss.

Gains and losses arising from modifications for credit reasons are recorded as part of ‘Credit Impairment’ (see Credit

Impairment policy). Modification gains and losses arising from non-credit reasons are recognised either as part of ‘Credit

Impairment’ or within income depending on whether there has been a change in the credit risk on the financial asset

subsequent to the modification. Modification gains and losses arising on financial liabilities are recognised within income.

The movements in the applicable expected credit loss loan positions are disclosed in further detail in Risk Review .

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 115

Notes to the financial statements

12. Financial instruments continued

The Group’s classification of its financial assets and liabilities is summarised in the following tables.

Group

					Assets at fair value
				Non-trading	Designated
				mandatorily	at fair value	Fair value	Total	Assets
			Derivatives	at fair value through		through other	financial	held at
			held for	through	profit	comprehensive	assets at	amortised
		Trading	hedging	profit or loss	or loss	income	fair value	cost	Total
Assets	Notes	$million	$million	$million	$million	$million	$million	$million	$million
Cash and balances at central banks 1		–	–	–	–	–	–	64,943	64,943
Financial assets held at fair value through profit or loss
Loans and advances to banks 2,3		2,435	–	–	–	–	2,435	–	2,435
Loans and advances to customers 3		8,753	–	192	–	–	8,945	–	8,945
Reverse repurchase agreements
and other similar secured lending	15	–	–	66,326	–	–	66,326	–	66,326
Debt securities, alternative tier one
and other eligible bills		42,646	–	404	–	–	43,050	–	43,050
Equity shares		216	–	106	–	–	322	–	322
		54,050	–	67,028	–	–	121,078	–	121,078
Derivative financial instruments	13	65,464	1,015	–	–	–	66,479	–	66,479
Loans and advances to banks 2,3	14	–	–	–	–	–	–	24,771	24,771
of which – reverse repurchase
agreements and other similar
secured lending	15	–	–	–	–	–	–	3,698	3,698
Loans and advances to customers 3	14	–	–	–	–	–	–	159,254	159,254
of which – reverse repurchase
agreements and other similar
secured lending	15	–	–	–	–	–	–	7,350	7,350
Investment securities
Debt securities, alternative tier one
and other eligible bills		–	–	–	–	69,754	69,754	33,911	103,665
Equity shares		–	–	–	–	256	256	–	256
		–	–	–	–	70,010	70,010	33,911	103,921
Other assets	19	–	–	–	–	–	–	20,435	20,435
Assets held for sale	20	–	–	–	–	–	–	909	909
Total at 31 December 2025		119,514	1,015	67,028	–	70,010	257,567	304,223	561,790

1 Comprises cash held at central banks in restricted accounts of $2,893 million, or on demand, or placements which are contractually due to mature over-night only.

Other placements with central banks are reported as part of Loans and advances to customers.

2 Loans and advances to banks includes amounts due on demand from banks and other central banks.

3 Further analysed in Risk review and Capital review (pages 49 to 50) .

Directors’ Report and Financial Statements 2025 | Standard Chartered 116

12. Financial instruments continued

					Assets at fair value
				Non-trading	Designated
				mandatorily	at fair value	Fair value	Total	Assets
			Derivatives	at fair value through		through other	financial	held at
			held for	through	profit	comprehensive	assets at	amortised
		Trading	hedging	profit or loss	or loss	income	fair value	cost	Total
Assets	Notes	$million	$million	$million	$million	$million	$million	$million	$million
Cash and balances at central banks 1		–	–	–	–	–	–	56,665	56,665
Financial assets held at fair value through profit or loss
Loans and advances to banks 2,3		2,033	–	–	–	–	2,033	–	2,033
Loans and advances to customers 3		3,833	–	156	–	–	3,989	–	3,989
Reverse repurchase agreements
and other similar secured lending	15	260	–	65,343	–	–	65,603	–	65,603
Debt securities, alternative tier one
and other eligible bills		30,217	–	416	–	–	30,633	–	30,633
Equity shares		1,240	–	126	–	–	1,366	–	1,366
		37,583	–	66,041	–	–	103,624	–	103,624
Derivative financial instruments	13	81,252	1,465	–	–	–	82,717	–	82,717
Loans and advances to banks 2,3	14	–	–	–	–	–	–	22,941	22,941
of which – reverse repurchase
agreements and other similar
secured lending	15	–	–	–	–	–	–	2,889	2,889
Loans and advances to customers 3	14	–	–	–	–	–	–	158,242	158,242
of which – reverse repurchase
agreements and other similar
secured lending	15	–	–	–	–	–	–	9,121	9,121
Investment securities
Debt securities, alternative tier one
and other eligible bills		–	–	–	–	58,813	58,813	37,366	96,179
Equity shares		–	–	–	–	263	263	–	263
		–	–	–	–	59,076	59,076	37,366	96,442
Other assets	19	–	–	–	–	–	–	21,535	21,535
Assets held for sale	20	–	–	–	–	–	–	866	866
Total at 31 December 2024		118,835	1,465	66,041	–	59,076	245,417	297,615	543,032

1 Comprises cash held at central banks in restricted accounts of $2,859 million, or on demand, or placements which are contractually due to mature over-night only.

Other placements with central banks are reported as part of Loans and advances to customers.

2 Loans and advances to banks includes amounts due on demand from banks and other central banks.

3 Further analysed in Risk review and Capital review (pages 49 to 50) .

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 117

12. Financial instruments continued

Company

					Assets at fair value
				Non-trading	Designated
				mandatorily	at fair value	Fair value	Total	Assets
			Derivatives	at fair value through		through other	financial	held at
			held for	through	profit	comprehensive	assets at	amortised
		Trading	hedging	profit or loss	or loss	income	fair value	cost	Total
Assets	Notes	$million	$million	$million	$million	$million	$million	$million	$million
Cash and balances at central banks 1		–	–	–	–	–	–	52,348	52,348
Financial assets held at fair value through profit or loss
Loans and advances to banks 2,3		2,337	–	–	–	–	2,337	–	2,337
Loans and advances to customers 3		6,585	–	30	–	–	6,615	–	6,615
Reverse repurchase agreements
and other similar secured lending	15	–	–	60,950	–	–	60,950	–	60,950
Debt securities, alternative tier one
and other eligible bills		26,724	–	3,079	–	–	29,803	–	29,803
Equity shares		189	–	–	–	–	189	–	189
Other assets		–	–	–	–	–	–	–	–
		35,835	–	64,059	–	–	99,894	–	99,894
Derivative financial instruments	13	65,804	827	–	–	–	66,631	–	66,631
Loans and advances to banks 2,3	14	–	–	–	–	–	–	11,108	11,108
of which – reverse repurchase
agreements and other similar
secured lending	15	–	–	–	–	–	–	855	855
Loans and advances to customers 3	14	–	–	–	–	–	–	80,091	80,091
of which – reverse repurchase
agreements and other similar
secured lending	15	–	–	–	–	–	–	6,865	6,865
Investment securities
Debt securities, alternative tier one
and other eligible bills		–	–	–	–	47,701	47,701	31,747	79,448
Equity shares		–	–	–	–	236	236	–	236
		–	–	–	–	47,937	47,937	31,747	79,684
Other assets	19	–	–	–	–	–	–	14,577	14,577
Assets held for sale	20	–	–	–	–	–	–	227	227
Total at 31 December 2025		101,639	827	64,059	–	47,937	214,462	190,098	404,560

1 Comprises cash held at central banks in restricted accounts of $984 million, or on demand, or placements which are contractually due to mature over-night only.

Other placements with central banks are reported as part of Loans and advances to customers.

2 Loans and advances to banks includes amounts due on demand from banks and other central banks.

3 Further analysed in Risk review and Capital review (pages 51 to 52).

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 118

12. Financial instruments continued

					Assets at fair value
				Non-trading	Designated
				mandatorily	at fair value	Fair value	Total	Assets
			Derivatives	at fair value through		through other	financial	held at
			held for	through	profit	comprehensive	assets at	amortised
		Trading	hedging	profit or loss	or loss	income	fair value	cost	Total
Assets	Notes	$million	$million	$million	$million	$million	$million	$million	$million
Cash and balances at central banks 1		–	–	–	–	–	–	45,233	45,233
Financial assets held at fair value through profit or loss
Loans and advances to banks 2,3		1,880	–	–	–	–	1,880	–	1,880
Loans and advances to customers 3		3,247	–	29	–	–	3,276	–	3,276
Reverse repurchase agreements
and other similar secured lending	15	260	–	61,881	–	–	62,141	–	62,141
Debt securities, alternative tier one
and other eligible bills		17,187	–	2,638	–	–	19,825	–	19,825
Equity shares		1,223	–	4	–	–	1,227	–	1,227
Other assets		–	–	–	–	–	–	–	–
		23,797	–	64,552	–	–	88,349	–	88,349
Derivative financial instruments	13	81,534	1,310	–	–	–	82,844	–	82,844
Loans and advances to banks 2,3	14	–	–	–	–	–	–	11,755	11,755
of which – reverse repurchase
agreements and other similar
secured lending	15	–	–	–	–	–	–	1,423	1,423
Loans and advances to customers 3	14	–	–	–	–	–	–	77,597	77,597
of which – reverse repurchase
agreements and other similar
secured lending	15	–	–	–	–	–	–	9,041	9,041
Investment securities
Debt securities, alternative tier one
and other eligible bills		–	–	–	–	46,650	46,650	35,205	81,855
Equity shares		–	–	–	–	246	246	–	246
		–	–	–	–	46,896	46,896	35,205	82,101
Other assets	19	–	–	–	–	–	–	17,587	17,587
Assets held for sale	20	–	–	–	–	–	–	474	474
Total at 31 December 2024		105,331	1,310	64,552	–	46,896	218,089	187,851	405,940

1 Comprises cash held at central banks in restricted accounts of $1,160 million, or on demand, or placements which are contractually due to mature over-night only.

Other placements with central banks are reported as part of Loans and advances to customers.

2 Loans and advances to banks includes amounts due on demand from banks and other central banks.

3 Further analysed in Risk review and Capital review (pages 51 to 52) .

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 119

12. Financial instruments continued

Group

				Liabilities at fair value
				Designated	Total
			Derivatives	at fair value	financial
			held for	through	liabilities at	Amortised
		Trading	hedging	profit or loss	fair value	cost	Total
Liabilities	Notes	$million	$million	$million	$million	$million	$million
Financial liabilities held at fair value through profit
or loss
Deposits by banks		–	–	2,118	2,118	–	2,118
Customer accounts		–	–	7,213	7,213	–	7,213
Repurchase agreements and other similar
secured borrowing	15	–	–	33,660	33,660	–	33,660
Debt securities in issue	21	–	–	14,787	14,787	–	14,787
Short positions		7,793	–	–	7,793	–	7,793
		7,793	–	57,778	65,571	–	65,571
Derivative financial instruments	13	67,740	480	–	68,220	–	68,220
Deposits by banks		–	–	–	–	25,758	25,758
Customer accounts		–	–	–	–	270,058	270,058
Repurchase agreements and other similar secured
borrowing	15	–	–	–	–	5,186	5,186
Debt securities in issue	21	–	–	–	–	43,577	43,577
Other liabilities	22	–	–	–	–	26,306	26,306
Subordinated liabilities and other borrowed funds	26	–	–	–	–	8,175	8,175
Liabilities included in disposal groups held for sale	20	–	–	–	–	908	908
Total at 31 December 2025		75,533	480	57,778	133,791	379,968	513,759

				Liabilities at fair value
				Designated	Total
			Derivatives	at fair value	financial
			held for	through	liabilities at	Amortised
		Trading	hedging	profit or loss	fair value	cost	Total
Liabilities	Notes	$million	$million	$million	$million	$million	$million
Financial liabilities held at fair value through profit
or loss
Deposits by banks		–	–	1,471	1,471	–	1,471
Customer accounts		–	–	9,222	9,222	–	9,222
Repurchase agreements and other similar
secured borrowing	15	925	–	32,285	33,210	–	33,210
Debt securities in issue	21	–	–	12,176	12,176	–	12,176
Short positions		6,850	–	–	6,850	–	6,850
		7,775	–	55,154	62,929	–	62,929
Derivative financial instruments	13	81,764	813	–	82,577	–	82,577
Deposits by banks		–	–	–	–	22,409	22,409
Customer accounts		–	–	–	–	239,204	239,204
Repurchase agreements and other similar secured
borrowing	15	–	–	–	–	9,921	9,921
Debt securities in issue	21	–	–	–	–	39,864	39,864
Other liabilities	22	–	–	–	–	27,350	27,350
Subordinated liabilities and other borrowed funds	26	–	–	–	–	10,359	10,359
Liabilities included in disposal groups held for sale	20	–	–	–	–	360	360
Total at 31 December 2024		89,539	813	55,154	145,506	349,467	494,973

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 120

12. Financial instruments continued

Company

				Liabilities at fair value
				Designated	Total
			Derivatives	at fair value	financial
			held for	through	liabilities at	Amortised
		Trading	hedging	profit or loss	fair value	cost	Total
Liabilities	Notes	$million	$million	$million	$million	$million	$million
Financial liabilities held at fair value through profit
or loss
Deposits by banks		–	–	1,787	1,787	–	1,787
Customer accounts		–	–	6,480	6,480	–	6,480
Repurchase agreements and other similar
secured borrowing	15	–	–	33,162	33,162	–	33,162
Debt securities in issue	21	–	–	16,561	16,561	–	16,561
Short positions		6,890	–	–	6,890	–	6,890
Other liabilities		–	–	–	–	–	–
		6,890	–	57,990	64,880	–	64,880
Derivative financial instruments	13	67,143	413	–	67,556	–	67,556
Deposits by banks		–	–	–	–	20,607	20,607
Customer accounts		–	–	–	–	132,018	132,018
Repurchase agreements and other similar secured
borrowing	15	–	–	–	–	4,828	4,828
Debt securities in issue	21	–	–	–	–	37,849	37,849
Other liabilities	22	–	–	–	–	18,970	18,970
Subordinated liabilities and other borrowed funds	26	–	–	–	–	8,158	8,158
Liabilities included in disposal groups held for sale	20	–	–	–	–	147	147
Total at 31 December 2025		74,033	413	57,990	132,436	222,577	355,013

				Liabilities at fair value
				Designated	Total
			Derivatives	at fair value	financial
			held for	through	liabilities at	Amortised
		Trading	hedging	profit or loss	fair value	cost	Total
Liabilities	Notes	$million	$million	$million	$million	$million	$million
Financial liabilities held at fair value through profit
or loss
Deposits by banks		–	–	1,463	1,463	–	1,463
Customer accounts		–	–	8,832	8,832	–	8,832
Repurchase agreements and other similar
secured borrowing	15	724	–	32,156	32,880	–	32,880
Debt securities in issue	21	–	–	12,062	12,062	–	12,062
Short positions		6,446	–	–	6,446	–	6,446
Other liabilities		–	–	–	–	–	–
		7,170	–	54,513	61,683	–	61,683
Derivative financial instruments	13	82,064	681	–	82,745	–	82,745
Deposits by banks		–	–	–	–	17,824	17,824
Customer accounts		–	–	–	–	119,502	119,502
Repurchase agreements and other similar secured
borrowing	15	–	–	–	–	9,845	9,845
Debt securities in issue	21	–	–	–	–	36,081	36,081
Other liabilities	22	–	–	–	–	21,124	21,124
Subordinated liabilities and other borrowed funds	26	–	–	–	–	9,801	9,801
Liabilities included in disposal groups held for sale	20	–	–	–	–	–	–
Total at 31 December 2024		89,234	681	54,513	144,428	214,177	358,605

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 121

12. Financial instruments continued

Offsetting of financial instruments

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable

right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the asset and settle the

liability simultaneously.

In practice, for credit mitigation, the Group is able to offset assets and liabilities which do not meet the IAS 32 netting criteria set

out below. Such arrangements include master netting arrangements for derivatives and global master repurchase agreements

for repurchase and reverse repurchase transactions. These agreements generally allow that all outstanding transactions with a

particular counterparty can be offset but only in the event of default or other predetermined events.

In addition, the Group also receives and pledges readily realisable collateral for derivative transactions to cover net exposure in

the event of a default. Under repurchase and reverse repurchase agreements the Group pledges (legally sells) and obtains

(legally purchases) respectively, highly liquid assets which can be sold in the event of a default.

The following tables set out the impact of netting on the balance sheet. This comprises derivative transactions settled through

an enforceable netting agreement where we have the intent and ability to settle net and which are offset on the balance sheet.

Group

			2025
			Net amounts	Related amount not offset
	Gross amounts		of financial	in the balance sheet
	of recognised	Impact of	instruments
	financial	offset in the	presented in the	Financial	Financial
	instruments	balance sheet	balance sheet	collateral	instruments	Net amount
	$million	$million	$million	$million	$million	$million
As at 31 December 2025
Derivative financial instruments	77,650	(11,171)	66,479	(12,912)	(50,816)	2,751
Reverse repurchase agreements and other similar secured lending	142,210	(64,836)	77,374	(77,374)	–	–
Total Assets	219,860	(76,007)	143,853	(90,286)	(50,816)	2,751
Derivative financial instruments	79,391	(11,171)	68,220	(10,790)	(50,816)	6,614
Repurchase agreements and other similar
secured borrowing	103,682	(64,836)	38,846	(38,846)	–	–
Total Liabilities	183,073	(76,007)	107,066	(49,636)	(50,816)	6,614
As at 31 December 2024
Derivative financial instruments	98,176	(15,459)	82,717	(12,984)	(65,027)	4,706
Reverse repurchase agreements and other similar secured lending	115,927	(38,314)	77,613	(77,613)	–	–
Total Assets	214,103	(53,773)	160,330	(90,597)	(65,027)	4,706
Derivative financial instruments	98,036	(15,459)	82,577	(9,181)	(65,027)	8,369
Repurchase agreements and other similar
secured borrowing	81,445	(38,314)	43,131	(43,131)	–	–
Total Liabilities	179,481	(53,773)	125,708	(52,312)	(65,027)	8,369

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 122

12. Financial instruments continued

Company

			2025
			Net amounts	Related amount not offset
	Gross amounts		of financial	in the balance sheet
	of recognised	Impact of	instruments
	financial	offset in the	presented in the	Financial	Financial
	instruments	balance sheet	balance sheet	collateral	instruments	Net amount
	$million	$million	$million	$million	$million	$million
As at 31 December 2025
Derivative financial instruments	77,802	(11,171)	66,631	(12,063)	(52,411)	2,157
Reverse repurchase agreements and other similar secured lending	132,907	(64,237)	68,670	(68,670)	–	–
Total Assets	210,709	(75,408)	135,301	(80,733)	(52,411)	2,157
Derivative financial instruments	78,727	(11,171)	67,556	(9,239)	(52,411)	5,906
Repurchase agreements and other similar
secured borrowing	102,227	(64,237)	37,990	(37,990)	–	–
Total Liabilities	180,954	(75,408)	105,546	(47,229)	(52,411)	5,906
As at 31 December 2024
Derivative financial instruments	98,303	(15,459)	82,844	(11,788)	(67,030)	4,026
Reverse repurchase agreements and other similar secured lending	110,919	(38,314)	72,605	(72,605)	–	–
Total Assets	209,222	(53,773)	155,449	(84,393)	(67,030)	4,026
Liabilities
Derivative financial instruments	98,204	(15,459)	82,745	(8,196)	(67,030)	7,519
Repurchase agreements and other similar
secured borrowing	81,039	(38,314)	42,725	(42,725)	–	–
Total Liabilities	179,243	(53,773)	125,470	(50,921)	(67,030)	7,519

Related amounts not offset in the balance sheet comprises:

• Financial instruments not offset in the balance sheet but covered by an enforceable netting arrangement. This comprises

master netting arrangements held against derivative financial instruments and excludes the effect of over-collateralisation

• Financial instruments where a legal opinion evidencing enforceability of the right of offset may not have been sought, or may

have been unable to such opinion

• Financial collateral comprises cash collateral pledged and received for derivative financial instruments and collateral bought

and sold for reverse repurchase and repurchase agreements respectively and excludes the effect of over-collateralisation

Financial liabilities designated at fair value through profit or loss

	2025	2024
	$million	$million
Carrying Balance aggregate fair value	57,778	55,154
Amount Contractually obliged to repay at maturity	57,591	55,474
Difference between aggregate fair value and contractually obliged to repay at maturity	187	(320)
Cumulative change in Fair Value accredited to Credit Risk Difference	(229)	(182)

The net fair value loss on financial liabilities designated at fair value through profit or loss was $3,568 million for the year

(31 December 2024: net loss of $3,162 million).

Further details of the Group’s own credit adjustment (OCA) valuation technique is described later in this note.

Valuation of financial instruments

The Valuation Methodology function is responsible for independent price verification, oversight of fair value and appropriate

value adjustments and escalation of valuation issues. Independent price verification is the process of determining that the

valuations incorporated into the financial statements are validated independent of the business area responsible for the

product. The Valuation Methodology function has oversight of the fair value adjustments to ensure the financial instruments

are priced to exit. These are key controls in ensuring the material accuracy of the valuations incorporated in the financial

statements. The market data used for price verification (PV) may include data sourced from recent trade data involving

external counterparties or third parties such as Bloomberg, Reuters, brokers and consensus pricing providers. The Valuation

Methodology function performs an ongoing review of the market data sources that are used as part of the PV and fair value

processes which are formally documented on a semi-annual basis detailing the suitability of the market data used for price

testing. Price verification uses independently sourced data that is deemed most representative of the market the instruments

trade in. To determine the quality of the market data inputs, factors such as independence, relevance, reliability, availability of

multiple data sources and methodology employed by the pricing provider are taken into consideration.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 123

12. Financial instruments continued

The Valuation and Benchmarks Committee (VBC) is the valuation governance forum consisting of representatives from Traded

Risk Management, Product Control, Valuation Methodology and the business, which meets monthly to discuss and approve the

independent valuations of the inventory. For Strategic Investments and Principal Finance, the respective Valuation Forums and

Investment Committee meetings are held on a quarterly basis to review investments and valuations.

The Group evaluates the significance of financial instruments and material accuracy of the valuations incorporated in the

financial statements as they involve a high degree of judgement and estimation uncertainty in determining the carrying

values of financial assets and liabilities at the balance sheet date.

Significant accounting estimates

The significant accounting estimates include:

• Fair value of financial instruments is determined using valuation techniques and estimates which, to the extent possible,

use market observable inputs, but in some cases use non-market observable inputs. Changes in the observability of

significant valuation inputs can materially affect the fair values of financial instruments

• When establishing the exit price of a financial instrument using a valuation technique, the Group estimates valuation

adjustments in determining the fair value.

Significant accounting judgements

The significant accounting judgements include:

• In determining the valuation of financial instruments, the Group makes judgements on the amounts reserved to cater for

model and valuation risks, which cover both Level 2 and Level 3 assets, and the significant valuation judgements in respect

of Level 3 instruments

• Where the estimated measurement of fair value is more judgemental in respect of Level 3 assets, these are valued based

on models that use a significant degree of non-market-based unobservable inputs.

Valuation techniques

Refer to the fair value hierarchy explanation – Level 1, 2 and 3 (page 127)

• Financial instruments held at fair value

– Debt securities – asset-backed securities: Asset-backed securities are valued based on external prices obtained from

consensus pricing providers, broker quotes, recent trades, arrangers’ quotes, etc. Where an observable price is available

for a given security, it is classified as Level 2. In instances where third-party prices are not available or reliable, the security

is classified as Level 3. The fair value of Level 3 securities is estimated using market standard cash flow models with input

parameter assumptions which include prepayment speeds, default rates, discount margins derived from comparable

securities with similar vintage, collateral type, and credit ratings.

– Debt securities in issue: These debt securities relate to structured notes issued by the Group. Where independent market

data is available through pricing vendors and broker sources these positions are classified as Level 2. Where such liquid

external prices are not available, valuations of these debt securities are implied using input parameters such as bond

spreads and credit spreads, and are classified as Level 3. These input parameters are determined with reference to the

same issuer (if available) or proxies from comparable issuers or assets.

– Derivatives: Derivative products are classified as Level 2 if the valuation of the product is based upon input parameters

which are observable from independent and reliable market data sources. Derivative products are classified as Level 3 if

there are significant valuation input parameters which are unobservable in the market, such as products where the

performance is linked to more than one underlying variable. Examples are commodity crack swaption, equity options

based on the performance of two or more underlying indices and interest rate products with quanto payouts. In most

cases these unobservable correlation parameters cannot be implied from the market, and methods such as historical

analysis and comparison with historical levels or other benchmark data must be employed.

– Equity shares – unlisted equity investments Valuation of unlisted equity instruments is determined using commonly

accepted valuation techniques considered most appropriate to the investment, which may include the market approach,

income approach or asset-based approach, depending on the underlying fact patterns and circumstances. All unlisted

equity instruments are classified as Level 3, except for those where observable inputs are available (e.g. over-the-counter

prices), as the valuation techniques applied generally involve unobservable inputs that requirement significant judgment,

which include valuation multiples, discount rates, forecasted cash flows, etc.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 124

12. Financial instruments continued

– Loans and advances: These primarily include loans in the FM Bond and Loan Syndication business which were not fully

syndicated as at the balance sheet date and other financing transactions within Financial Markets, and loans and

advances including reverse repurchase agreements that do not have SPPI cashflows or are managed on a fair value basis.

Where available, loan valuation is based on observable clean sales transactions prices or market observable spreads. If

observable credit spreads are not available, proxy spreads based on comparables with similar credit grade, sector and

region, are used. Where observable transaction prices, credit spreads and market standard proxy methods are available,

these loans are classified as Level 2. Where there are no recent transactions or comparables, these loans are classified as

Level 3.

– Other debt securities: These debt securities include convertible bonds, corporate bonds, credit and structured notes.

Where quoted prices are available through pricing vendors, brokers or observable trading activities from liquid markets,

these are classified as Level 2 and valued using such quotes. Where there are significant valuation inputs which are

unobservable in the market, due to illiquid trading or the complexity of the product, these are classified as Level 3. The

valuations of these debt securities are implied using input parameters such as bond spreads and credit spreads. These

input parameters are determined with reference to the same issuer (if available) or proxied from comparable issuers

or assets.

• Financial instruments held at amortised cost

The following sets out the Group’s basis for establishing fair values of amortised cost financial instruments and their

classification between Levels 1, 2 and 3. As certain categories of financial instruments are not actively traded, there is a

significant level of management judgement involved in calculating the fair values:

– Cash and balances at central banks: The fair value of cash and balances at central banks is their carrying amounts

– Debt securities in issue, subordinated liabilities and other borrowed funds: The aggregate fair values are calculated

based on quoted market prices. For those notes where quoted market prices are not available, a discounted cash flow

model is used based on a current market related yield curve appropriate for the remaining term to maturity

– Deposits and borrowings: The estimated fair value of deposits with no stated maturity is the amount repayable on

demand. The estimated fair value of fixed interest-bearing deposits and other borrowings without quoted market

prices is based on discounted cash flows using the prevailing market rates for debts with a similar Credit Risk and

remaining maturity

– Investment securities: For investment securities that do not have directly observable market values, the Group utilises a

number of valuation techniques to determine fair value. Where available, securities are valued using input proxies from

the same or closely related underlying (for example, bond spreads from the same or closely related issuer) or input proxies

from a different underlying (for example, a similar bond but using spreads for a particular sector and rating). Certain

instruments cannot be proxies as set out above, and in such cases the positions are valued using non-market observable

inputs. This includes those instruments held at amortised cost and predominantly relates to asset-backed securities. The

fair value for such instruments is usually proxies from internal assessments of the underlying cash flows

– Loans and advances to banks and customers: For loans and advances to banks, the fair value of floating rate placements

and overnight deposits is their carrying amounts. The estimated fair value of fixed interest-bearing deposits is based on

discounted cash flows using the prevailing money market rates for debts with a similar Credit Risk and remaining maturity.

The Group’s loans and advances to customers portfolio is well diversified by geography and industry. Approximately a

quarter of the portfolio re-prices within one month, and approximately half re-prices within 12 months. Loans and

advances are presented net of provisions for impairment. The fair value of loans and advances to customers with a

residual maturity of less than one year generally approximates the carrying value. The estimated fair value of loans and

advances with a residual maturity of more than one year represents the discounted amount of future cash flows expected

to be received, including assumptions relating to prepayment rates and Credit Risk. Expected cash flows are discounted at

current market rates to determine fair value. The Group has a wide range of individual instruments within its loans and

advances portfolio and as a result providing quantification of the key assumptions used to value such instruments

is impractical

– Other assets: Other assets comprise primarily cash collateral and trades pending settlement. The carrying amount of

these financial instruments is considered to be a reasonable approximation of fair value as they are either short-term in

nature or re-price to current market rates frequently.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 125

12. Financial instruments continued

Fair value adjustments

When establishing the exit price of a financial instrument using a valuation technique, the Group considers adjustments to the

modelled price which market participants would make when pricing that instrument. The main valuation adjustments

(described further below) in determining fair value for financial assets and financial liabilities are as follows:

		Movement			Movement
	01.01.25	during the year	31.12.25	01.01.24	during the year	31.12.24
	$million	$million	$million	$million	$million	$million
Bid-offer valuation adjustment	93	5	98	91	2	93
Credit valuation adjustment	95	3	98	98	(3)	95
Debit valuation adjustment	(98)	29	(69)	(118)	20	(98)
Model valuation adjustment	5	(2)	3	4	1	5
Funding valuation adjustment	31	8	39	36	(5)	31
Other fair value adjustments	19	1	20	20	(1)	19
Total	145	44	189	131	14	145
Income deferrals
Day 1 and other deferrals	81	11	92	63	18	81
Total	81	11	92	63	18	81

Note: Bracket represents an asset and credit to the income statement

• Bid-offer valuation adjustment: Generally, market parameters are marked on a mid-market basis in the revaluation systems,

and a bid-offer valuation adjustment is required to quantify the expected cost of neutralising the business’ positions through

dealing away in the market, thereby bringing long positions to bid and short positions to offer. The methodology to calculate

the bid-offer adjustment for a derivative portfolio involves netting between long and short positions and the grouping of risk

by strike and tenor based on the hedging strategy where long positions are marked to bid and short positions marked to

offer in the systems.

• Credit valuation adjustment (CVA): The Group accounts for CVA against the fair value of derivative products. CVA is an

adjustment to the fair value of the transactions to reflect the possibility that our counterparties may default and we may not

receive the full market value of the outstanding transactions. It represents an estimate of the adjustment a market

participant would include when deriving a purchase price to acquire our exposures. CVA is calculated for each subsidiary,

and within each entity for each counterparty to which the entity has exposure and takes account of any collateral we may

hold. The Group calculates the CVA by using estimates of future positive exposure, market-implied probability of default (PD)

and recovery rates. Where market-implied data is not readily available, we use market-based proxies to estimate the PD.

Wrong-way risk occurs when the exposure to a counterparty is adversely correlated with the credit quality of that

counterparty, and the Group has implemented a model to capture this impact for key wrong-way exposures. The Group also

captures the uncertainties associated with wrong-way risk in the Group’s Prudential Valuation Adjustments framework.

• Debit valuation adjustment (DVA): The Group calculates DVA adjustments on its derivative liabilities to reflect changes in

its own credit standing. The Group’s DVA adjustments will increase if its credit standing worsens and, conversely, decrease if

its credit standing improves. For derivative liabilities, a DVA adjustment is determined by applying the Group’s probability of

default to the Group’s negative expected exposure against the counterparty. The Group’s probability of default and loss

expected in the event of default is derived based on bond and CDS spreads associated with the Group’s issuances and

market standard recovery levels. The expected exposure is modelled based on the simulation of the underlying risk factors

over the expected life of the deal. This simulation methodology incorporates the collateral posted by the Group and the

effects of master netting agreements.

• Model valuation adjustment: Valuation models may have pricing deficiencies or limitations that require a valuation

adjustment. These pricing deficiencies or limitations arise due to the choice, implementation and calibration of the

pricing model.

• Funding valuation adjustment (FVA): The Group makes FVA adjustments against derivative products, including embedded

derivatives. FVA reflects an estimate of the adjustment to its fair value that a market participant would make to incorporate

funding costs or benefits that could arise in relation to the exposure. FVA is calculated by determining the net expected

exposure at a counterparty level and then applying a funding rate to those exposures that reflect the market cost of funding.

The FVA for uncollateralised (including partially collateralised) derivatives incorporates the estimated present value of the

market funding cost or benefit associated with funding these transactions.

• Other fair value adjustments: For certain products, the prices cannot be replicated by usual models or the choice of model

inputs can be more subjective. In these circumstances, an adjustment may be necessary to reflect the prices available in the

market. In general, where there is a high degree of uncertainty in the valuation (e.g. due to the nature of the trade, model

inputs, model selection etc.), an adjustment can be taken to adopt a more conservative value to better reflect the expected

exit price.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 126

12. Financial instruments continued

• Day one and other deferrals: In certain circumstances the initial fair value is based on a valuation technique which differs to

the transaction price at the time of initial recognition. However, these gains can only be recognised when the valuation

technique used is based primarily on observable market data. In those cases where the initially recognised fair value is based

on a valuation model that uses inputs which are not observable in the market, the difference between the transaction price

and the valuation model is not recognised immediately in the income statement. The difference is amortised to the income

statement until the inputs become observable, or the transaction matures or is terminated. Other deferrals primarily

represent adjustments taken to reflect the specific terms and conditions of certain derivative contracts which affect the

termination value at the measurement date.

In addition, the Group calculates own credit adjustment (OCA) on its issued debt designated at fair value, including structured

notes, in order to reflect changes in its own credit standing. Issued debt is discounted utilising the spread at which similar

instruments would be issued or bought back at the measurement date as this reflects the value from the perspective of a

market participant who holds the identical item as an asset. OCA measures the difference between the fair value of issued

debt as of reporting date and theoretical fair values of issued debt adjusted up or down for changes in own credit spreads

from inception date to the measurement date. Under IFRS 9 the change in the OCA component is reported under other

comprehensive income. The Group’s OCA reserve will increase if its credit standing worsens in comparison to the inception

of the trade and, conversely, decrease if its credit standing improves. The Group’s OCA reserve will reverse over time as its

liabilities mature.

Fair value hierarchy – financial instruments held at fair value

Assets and liabilities carried at fair value or for which fair values are disclosed have been classified into three levels The fair

values of quoted financial assets and liabilities in active markets are based on current prices. A market is regarded as active if

transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an

ongoing basis. Wherever possible, fair values have been calculated using unadjusted quoted market prices in active markets for

identical instruments held by the Group. Where quoted market prices are not available, or are unreliable because of poor

liquidity, fair values have been determined using valuation techniques which, to the extent possible, use market observable

inputs, but in some cases use unobservable inputs. Valuation techniques used include discounted cash flow analysis and pricing

models and, where appropriate, comparison with instruments that have characteristics similar to those of the instruments held

by the Group.

Assets and liabilities carried at fair value or for which fair values are disclosed have been classified into three levels according to

the observability of the significant inputs used to determine the fair values. Changes in the observability of significant valuation

inputs during the reporting period may result in a transfer of assets and liabilities within the fair value hierarchy. The Group

recognises transfers between levels of the fair value hierarchy when there is a significant change in either its principal market or

the level of observability of the inputs to the valuation techniques as at the end of the reporting period.

• Level 1: Fair value measurements are those derived from unadjusted quoted prices in active markets for identical assets

or liabilities.

• Level 2: Fair value measurements are those with quoted prices for similar instruments in active markets or quoted prices for

identical or similar instruments in inactive markets and financial instruments valued using models where all significant inputs

are observable.

• Level 3: Fair value measurements are those where inputs which could have a significant effect on the instrument’s valuation

are not based on observable market data.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 127

12. Financial instruments continued

The following tables show the classification of financial instruments held at fair value into the valuation hierarchy:

Group

		2025				2024
	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
Assets	$million	$million	$million	$million	$million	$million	$million	$million
Financial instruments held at fair value through profit or loss
Loans and advances to banks	–	2,435	–	2,435	–	2,033	–	2,033
Loans and advances to customers	–	6,523	2,422	8,945	–	2,633	1,356	3,989
Reverse repurchase agreements and other similar secured lending	–	62,972	3,354	66,326	–	63,047	2,556	65,603
Debt securities and other eligible bills	16,060	25,986	1,004	43,050	13,686	16,084	863	30,633
Of which:
Issued by central banks &
governments	15,572	21,055	–	36,627	13,226	12,212	9	25,447
Issued by corporates other than financial institutions 1	46	1,390	109	1,545	3	938	355	1,296
Issued by financial institutions 1	442	3,541	895	4,878	457	2,934	499	3,890
Equity shares	213	6	103	322	1,241	9	116	1,366
Derivative financial instruments	761	65,596	122	66,479	448	82,122	147	82,717
Of which:
Foreign exchange	127	52,646	58	52,831	201	68,511	58	68,770
Interest rate	39	10,026	44	10,109	27	11,558	78	11,663
Credit	–	507	16	523	–	792	9	801
Equity and stock index options	–	238	4	242	–	204	2	206
Commodity	595	2,179	–	2,774	220	1,057	–	1,277
Investment securities
Debt securities and other eligible bills	36,121	33,633	–	69,754	27,696	31,117	–	58,813
Of which:
Issued by central banks &
governments	25,499	18,026	–	43,525	20,740	13,360	–	34,100
Issued by corporates other than financial institutions 1	–	438	–	438	–	490	–	490
Issued by financial institutions 1	10,622	15,169	–	25,791	6,956	17,267	–	24,223
Equity shares	12	3	241	256	10	3	250	263
Total assets at 31 December	53,167	197,154	7,246	257,567	43,081	197,048	5,288	245,417
Liabilities
Financial instruments held at fair value through profit or loss
Deposits by banks	–	2,008	110	2,118	–	1,421	50	1,471
Customer accounts	–	6,703	510	7,213	–	8,867	355	9,222
Repurchase agreements and other similar secured borrowing	–	33,660	–	33,660	–	33,210	–	33,210
Debt securities in issue	–	13,693	1,094	14,787	–	10,983	1,193	12,176
Short positions	1,217	6,500	76	7,793	1,596	5,074	180	6,850
Derivative financial instruments	384	67,621	215	68,220	446	81,893	238	82,577
Of which:
Foreign exchange	159	53,950	21	54,130	210	67,757	11	67,978
Interest rate	83	10,058	22	10,163	14	12,216	23	12,253
Credit	–	1,160	117	1,277	–	996	166	1,162
Equity and stock index options	–	222	54	276	–	109	37	146
Commodity	142	2,231	1	2,374	222	815	1	1,038
Total liabilities at 31 December	1,601	130,185	2,005	133,791	2,042	141,448	2,016	145,506

1 Includes covered bonds of $3,008 million (2024: $3,690 million), securities issued by Multilateral Development Banks/International Organisations of $14,401 million

(2024: $8,867 million) and State-owned agencies and development banks of $12,128 million (2024: $10,268 million).

The fair value of financial assets and financial liabilities classified as Level 2 in the fair value hierarchy that are subject to

complex modelling techniques is $145 million (2024: $512 million) and $157 million (2024: $180 million) respectively.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 128

12. Financial instruments continued

There were no significant changes to valuation or levelling approaches in 2025.

There were no significant transfers of financial assets and liabilities measured at fair value between Level 1 and Level 2 during

the year

Company

		2025				2024
	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
Assets	$million	$million	$million	$million	$million	$million	$million	$million
Financial instruments held at fair value through profit or loss
Loans and advances to banks	–	2,337	–	2,337	–	1,880	–	1,880
Loans and advances to customers	–	5,746	869	6,615	–	2,414	862	3,276
Reverse repurchase agreements and other similar secured lending	–	57,913	3,037	60,950	–	59,942	2,199	62,141
Debt securities and other eligible bills	7,147	22,155	501	29,803	7,505	12,078	242	19,825
Of which:
Issued by central banks &
governments	6,807	15,690	–	22,497	7,112	7,281	–	14,393
Issued by corporates other than financial institutions 1	41	1,008	89	1,138	3	694	141	838
Issued by financial institutions 1	299	5,457	412	6,168	390	4,103	101	4,594
Equity shares	188	1	–	189	1,218	9	–	1,227
Derivative financial instruments	779	65,755	97	66,631	484	82,230	130	82,844
Of which:
Foreign exchange	145	52,674	38	52,857	238	68,497	47	68,782
Interest rate	39	10,215	40	10,294	27	11,788	72	11,887
Credit	–	430	16	446	–	614	9	623
Equity and stock index options	–	10	3	13	–	97	2	99
Commodity	595	2,426	–	3,021	219	1,234	–	1,453
Investment securities
Debt securities and other eligible bills	18,204	29,497	–	47,701	18,882	27,768	–	46,650
Of which:
Issued by central banks &
governments	7,902	13,985	–	21,887	12,419	9,475	–	21,894
Issued by corporates other than financial institutions 1	–	438	–	438	–	490	–	490
Issued by financial institutions 1	10,302	15,074	–	25,376	6,463	17,803	–	24,266
Equity shares	12	2	222	236	10	3	233	246
Total assets at 31 December	26,330	183,406	4,726	214,462	28,099	186,324	3,666	218,089
Liabilities
Financial instruments held at fair value through profit or loss
Deposits by banks	–	1,689	98	1,787	–	1,413	50	1,463
Customer accounts	–	6,226	254	6,480	–	8,580	252	8,832
Repurchase agreements and other similar secured borrowing	–	33,162	–	33,162	–	32,880	–	32,880
Debt securities in issue	–	15,481	1,080	16,561	–	10,932	1,130	12,062
Short positions	930	5,886	74	6,890	1,413	4,853	180	6,446
Derivative financial instruments	389	67,075	92	67,556	472	82,183	90	82,745
Of which:
Foreign exchange	164	53,698	43	53,905	236	68,193	27	68,456
Interest rate	83	10,371	22	10,476	14	12,453	23	12,490
Credit	–	793	2	795	–	703	16	719
Equity and stock index options	–	21	24	45	–	16	23	39
Commodity	142	2,192	1	2,335	222	818	1	1,041
Total liabilities at 31 December	1,319	129,519	1,598	132,436	1,885	140,841	1,702	144,428

1 Includes covered bonds of $3,008 million (2024: $3,608 million), securities issued by Multilateral Development Banks/International Organisations of $13,769 million

(2024: $8,479 million) and State-owned agencies and development banks of $11,838 million (2024: $9,883 million).

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 129

12. Financial instruments continued

The fair value of financial assets and financial liabilities classified as Level 2 in the fair value hierarchy that are subject to

complex modelling techniques is $10 million (2024: $105 million) and $93 million (2024: $124 million) respectively.

There were no significant changes to valuation or levelling approaches in 2025.

There were no significant transfers of financial assets and liabilities measured at fair value between Level 1 and Level 2 during

the year.

Fair value hierarchy – financial instruments measured at amortised cost

The following table shows the carrying amounts and incorporates the Group’s estimate of fair values of those financial assets

and liabilities not presented on the Group’s balance sheet at fair value. These fair values may be different from the actual

amount that will be received or paid on the settlement or maturity of the financial instrument. For certain instruments, the fair

value may be determined using assumptions for which no observable prices are available.

Group

			2025					2024
	Carrying		Fair value			Carrying		Fair value
	value	Level 1	Level 2	Level 3	Total	value	Level 1	Level 2	Level 3	Total
	$million	$million	$million	$million	$million	$million	$million	$million	$million	$million
Assets
Cash and balances at central
banks 1	64,943	–	64,943	–	64,943	56,665	–	56,665	–	56,665
Loans and advances to banks	24,771	–	24,745	37	24,782	22,941	–	22,780	162	22,942
of which – reverse repurchase
agreements and other similar
secured lending	3,698	–	3,707	–	3,707	2,889	–	2,892	–	2,892
Loans and advances to customers	159,254	–	21,176	138,367	159,543	158,242	–	35,308	125,075	160,383
of which – reverse repurchase
agreements and other similar
secured lending	7,350	–	7,350	–	7,350	9,121	–	9,121	–	9,121
Investment securities 2	33,911	–	34,492	–	34,492	37,366	–	35,512	24	35,536
Other assets¹	20,435	–	20,435	–	20,435	21,535	–	21,535	–	21,535
Assets held for sale	909	74	45	790	909	866	58	335	473	866
At 31 December	304,223	74	165,836	139,194	305,104	297,615	58	172,135	125,734	297,927
Liabilities
Deposits by banks	25,758	–	25,758	–	25,758	22,409	–	22,246	–	22,246
Customer accounts	270,058	–	269,946	–	269,946	239,204	–	238,960	–	238,960
Repurchase agreements and other similar secured borrowing	5,186	–	5,186	–	5,186	9,921	–	9,921	–	9,921
Debt securities in issue	43,577	31	43,694	–	43,725	39,864	–	39,744	–	39,744
Subordinated liabilities and other borrowed funds	8,175	–	8,639	–	8,639	10,359	–	10,360	–	10,360
Other liabilities 1	26,306	–	26,306	–	26,306	27,350	–	27,350	–	27,350
Liabilities held for sale	908	147	761	–	908	360	89	271	–	360
At 31 December	379,968	178	380,290	–	380,468	349,467	89	348,852	–	348,941

1 The carrying amount of these financial instruments is considered to be a reasonable approximation of fair value as they are short-term in nature or reprice to

current market rates frequently.

2 Includes Government bonds and Treasury bills of $15,935 million at 31 December 2025 and $14,223 million at 31 December 2024.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 130

12. Financial instruments continued

Company

			2025					2024
	Carrying		Fair value			Carrying		Fair value
	value	Level 1	Level 2	Level 3	Total	value	Level 1	Level 2	Level 3	Total
	$million	$million	$million	$million	$million	$million	$million	$million	$million	$million
Assets
Cash and balances at central
banks 1	52,348	–	52,348	–	52,348	45,233	–	45,233	–	45,233
Loans and advances to banks	11,108	–	11,108	–	11,108	11,755	–	11,669	87	11,756
of which – reverse repurchase
agreements and other similar
secured lending	855	–	855	–	855	1,423	–	1,426	–	1,426
Loans and advances to customers	80,091	–	9,704	70,671	80,375	77,597	–	14,168	63,640	77,808
of which – reverse repurchase
agreements and other similar
secured lending	6,865	–	6,866	–	6,866	9,041	–	9,041	–	9,041
Investment securities 2	31,747	–	30,911	–	30,911	35,205	–	33,387	–	33,387
Other assets 1	14,577	–	14,577	–	14,577	17,587	–	17,587	–	17,587
Assets held for sale	227	74	15	138	227	474	–	–	474	474
At 31 December	190,098	74	118,663	70,809	189,546	187,851	–	122,044	64,201	186,245
Liabilities
Deposits by banks	20,607	–	20,607	–	20,607	17,824	–	17,662	–	17,662
Customer accounts	132,018	–	131,905	–	131,905	119,502	–	119,255	–	119,255
Repurchase agreements and other similar secured borrowing	4,828	–	4,828	–	4,828	9,845	–	9,845	–	9,845
Debt securities in issue	37,849	–	37,784	–	37,784	36,081	–	35,938	–	35,938
Subordinated liabilities and other borrowed funds	8,158	–	8,162	–	8,162	9,801	–	9,801	–	9,801
Other liabilities 1	18,970	–	18,970	–	18,970	21,124	–	21,124	–	21,124
Liabilities held for sale	147	147	–	–	147	–	–	–	–	–
At 31 December	222,577	147	222,256	–	222,403	214,177	–	213,625	–	213,625

1 The carrying amount of these financial instruments is considered to be a reasonable approximation of fair value as they are short-term in nature or reprice to

current market rates frequently.

2 Includes Government bonds and Treasury bills of $14,212 million as at 31 December 2025 and $13,135 million as at 31 December 2024.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 131

12. Financial instruments continued

Loans and advances to customers by client segment

Group

			2025						2024
		Carrying value			Fair value			Carrying value			Fair value
		Stage 1 and			Stage 1 and			Stage 1 and			Stage 1 and
	Stage 3	stage 2	Total	Stage 3	stage 2	Total	Stage 3	stage 2	Total	Stage 3	stage 2	Total
	$million	$million	$million	$million	$million	$million	$million	$million	$million	$million	$million	$million
Corporate &
Investment
Banking	1,189	90,210	91,399	1,195	90,366	91,561	1,047	89,345	90,392	921	89,602	90,523
Wealth &
Retail Banking	512	52,583	53,095	510	52,826	53,336	501	46,515	47,016	502	48,529	49,031
Ventures	7	882	889	7	883	890	–	574	574	–	573	573
Central &
other items	–	13,871	13,871	–	13,756	13,756	98	20,162	20,260	98	20,158	20,256
Total as at	1,708	157,546	159,254	1,712	157,831	159,543	1,646	156,596	158,242	1,521	158,862	160,383

1 Loans and advances includes reverse repurchase agreements and other similar secured lending: carrying value $7,350 million and fair value $7,350 million

(31 December 2024: $9,121 million and $9,121 million respectively).

Company

			2025						2024
			Carrying value			Fair value			Carrying value			Fair value
		Stage 1 and			Stage 1 and			Stage 1 and			Stage 1 and
	Stage 3	stage 2	Total	Stage 3	stage 2	Total	Stage 3	stage 2	Total	Stage 3	stage 2	Total
	$million	$million	$million	$million	$million	$million	$million	$million	$million	$million	$million	$million
Corporate &
Investment
Banking	1,006	62,472	63,478	1,004	62,624	63,628	830	64,174	65,004	706	64,559	65,265
Wealth &
Retail Banking	249	11,848	12,097	248	11,983	12,231	275	11,504	11,779	275	11,454	11,729
Ventures	–	–	–	–	–	–	–	–	–	–	–	–
Central &
other items	–	4,516	4,516	–	4,516	4,516	–	814	814	–	814	814
Total as at	1,255	78,836	80,091	1,252	79,123	80,375	1,105	76,492	77,597	981	76,827	77,808

1 Loans and advances includes reverse repurchase agreements and other similar secured lending: carrying value $6,866 million and fair value $6,866 million

(31 December 2024: $9,041 million and $9,041 million respectively).

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 132

12. Financial instruments continued

Fair value of financial instruments

Level 3 Summary and significant unobservable inputs

The following table presents the Group’s primary Level 3 financial instruments which are held at fair value. The table also

presents the valuation techniques used to measure the fair value of those financial instruments, the significant unobservable

inputs, the range of values for those inputs and the weighted average of those inputs:

Group

		Value as at
	31 December 2025
	Assets	Liabilities	Principal	Significant		Weighted
Instrument	$million	$million	valuation technique	unobservable inputs	Range 1	average 2
Loans and advances to	2,422	–	Discounted cash flows	Price/yield	2.1% – 61.3%	8.7%
customers 3			Comparable pricing/yield	Price/yield	29.4% – 100%	93.2%
Reverse repurchase	3,354	–	Discounted cash flows	Repo curve	0.6% – 8.1%	5.4%
agreements and other similar secured lending				Price/yield	4.1% – 25.1%	11.3%
Debt securities, alternative	1,004	–	Discounted cash flows	Price/yield	3.1% – 53.8%	12.6%
tier one and other eligible
securities
Equity shares (includes	344	–	Comparable pricing/yield 4	Price	N/A	N/A
private equity investments)			Discounted cash flows	Discount rates	9.2% to 25.9%	12.9%
			Option pricing model	Equity value based on	5.4x to 23.0x	11.5x
				EV/Revenue multiples
				Equity value based on	3.2x to 3.2x	3.2x
				EV/EBITDA multiples
				Equity value based on	40.0% to 40.0%	40.0%
				volatility
Derivative financial
instruments of which:
Foreign exchange	58	21	Option pricing model	Foreign exchange option	0.4% – 44.6%	33.1%
				implied volatility
			Discounted cash flows	Interest rate curves	0.4% – 36.0%	14.3%
				Foreign exchange curves	1.3% – 3.9%	1.7%
Commodities	–	1	Discounted cash flows	Commodity prices	$0.23 – $341.2	$62
			Internal Pricing Model	CM-CM correlation	59.7% – 97.4%	78.6%
Interest rate	44	22	Discounted cash flows	Interest rate curves	3.51% – 36.04%	9.8%
Credit	16	117	Discounted cash flows	Credit spreads	0.9% – 1.0%	0.9%
				Price/yield	5.1% – 25.1%	9.9%
			Internal Pricing Model	Bond option implied	5% – 13%	10.8%
				volatility
Equity and stock index	4	54	Internal pricing model	Equity-Equity correlation	50.8% – 100%	77.6%
				Equity-FX correlation	(26.9)% – 46.8%	6.7%
Deposits by banks	–	110	Discounted cash flows	Price/yield	4.7% – 6.1%	5.9%
Customer accounts	–	510	Discounted cash flows	Price/yield	6.1% – 20.8%	12.5%
Debt securities in issue	–	1,094	Discounted cash flows	Price/yield	7.4% – 19.1%	17.1%
				Interest rate curves	3.6% – 36.0%	15.1%
			Internal pricing model	Equity-Equity correlation	50.8% – 100%	77.6%
				Equity-FX correlation	(26.9)% – 46.8%	6.7%
			Option pricing model	Bond option implied	5% – 13%	10.8%
				volatility
Short positions	–	76	Discounted cash flows	Price/yield	7.1% – 7.1%	7.1%
Total	7,246	2,005

1 The ranges of values shown in the above table represent the highest and lowest levels used in the valuation of the Group’s Level 3 financial instruments as at

31 December 2025. The ranges of values used are reflective of the underlying characteristics of these Level 3 financial instruments based on the market conditions

at the balance sheet date. However, these ranges of values may not represent the uncertainty in fair value measurements of the Group’s Level 3 financial

instruments.

2 Weighted average for non-derivative financial instruments has been calculated by weighting inputs by the relative fair value. Weighted average for derivatives

has been provided by weighting inputs by the risk relevant to that variable. N/A has been entered for the cases where weighted average is not a meaningful

indicator.

3 The inputs for Loans and advances to customers under Discounted Cash flow technique have been split to show as a separate line under Comparable pricing/yield

for better representation of material inputs.

4 The inputs for equity shares under Comparable pricing/yield technique have been consolidated under ‘Price’ as they are not individually material.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 133

12. Financial instruments continued

		Value as at
	31 December 2024
	Assets	Liabilities	Principal	Significant		Weighted
Instrument	$million	$million	valuation technique	unobservable inputs	Range 1	average 2
Loans and advances to	1,356	–	Discounted cash flows	Price/yield	1.0% – 26.07%	6.8%
customers 3			Comparable pricing/yield	Price	1.27% – 100%	92.1%
Reverse repurchase	2,556	–	Discounted cash flows	Repo curve	2.0% – 7.6%	6.2%
agreements and other similar				Price/yield	5.0% – 10.5%	6.1%
secured lending
Debt securities, alternative	854	–	Discounted cash flows	Price/yield	5.3% – 15.3%	8.7%
tier one and other eligible				Recovery rates	0.01% – 16.3%	9.2%
securities
Government bonds and treasury bills	9	–	Discounted cash flows	Price/yield	23.5% – 23.5%	23.5%
Equity shares (includes private	366	–	Comparable pricing/yield 4	Price	N/A	N/A
equity investments)			Discounted cash flows	Discount rates	9.2% – 20.4%	12.1%
			Option pricing model	Equity value based on	5.7x – 23.6x	16.2x
				EV/Revenue multiples
				Equity value based on	10.1x – 10.1x	10.1x
				EV/EBITDA multiples
				Equity value based on	50.0% – 50.0%	50.0%
				volatility
Derivative financial
instruments of which:
Foreign exchange	58	11	Option pricing model	Foreign exchange option	10.2% – 46.2%	42.0%
				implied volatility
				Interest rate curves	3.5% – 9.0%	4.2%
				Foreign exchange curves	(0.03)% – 34.3%	6.1%
Commodities	–	1	Discounted cash flows	Commodity prices	$384 – $391	$387
				CM-CM correlation	73.7% – 97.9%	86.0%
Interest rate	78	23	Discounted cash flows	Interest rate curves	3.5% – 43.9%	5.1%
			Option pricing model	Bond option implied	2.3% – 2.9%	2.7%
				volatility
Credit	9	166	Discounted cash flows	Credit spreads	0.1% – 1.7%	0.8%
				Price/yield	4.8% – 5.9%	5.1%
Equity and stock index	2	37	Internal pricing model	Equity-Equity correlation	44.9% – 100%	80.0%
				Equity-FX correlation	(36.4)% – 48.9%	5.0%
Deposits by banks	–	50	Discounted cash flows	Credit spreads	0.2% – 3.2%	1.7%
Customer accounts	–	355	Discounted cash flows	Price/yield	4.8% – 12.7%	7.1%
				Interest rate curves	3.5% – 4.4%	4.1%
Debt securities in issue	–	1,193	Discounted cash flows	Price/yield	6.2% – 14.8%	12.7%
				Interest rate curves	3.5% – 4.4%	4.1%
			Internal pricing model	Equity-FX correlation	(36.4)% – 48.9%	5.0%
			Option pricing model	Bond option implied	4.0% – 15.0%	12.5%
				volatility
			Discounted cash flows	Price/yield	5.9% – 12.7%	6.3%
Short positions	–	180	Discounted cash flows	Price/yield	5.9% – 12.7%	6.3%
Other Liabilities	–	–	Comparable pricing/yield	EV/EBITDA multiples	3.07x-9.95x	6.84x
Total	5,288	2,016

1 The ranges of values shown in the above table represent the highest and lowest levels used in the valuation of the Group’s Level 3 financial instruments as at

31 December 2024. The ranges of values used are reflective of the underlying characteristics of these Level 3 financial instruments based on the market conditions

at the balance sheet date. However, these ranges of values may not represent the uncertainty in fair value measurements of the Group’s Level 3 financial

instruments.

2 Weighted average for non-derivative financial instruments has been calculated by weighting inputs by the relative fair value. Weighted average for derivatives

has been provided by weighting inputs by the risk relevant to that variable. N/A has been entered for the cases where weighted average is not a meaningful

indicator.

3 The inputs for Loans and advances to customers under Discounted Cash flow technique have been split to show as a separate line under Comparable pricing/yield

for better representation of material inputs.

4 The inputs for equity shares under Comparable pricing/yield technique have been consolidated under ‘Price’ as they are not individually material.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 134

12. Financial instruments continued

Company

		Value as at
	31 December 2025
	Assets	Liabilities	Principal	Significant		Weighted
Instrument	$million	$million	valuation technique	unobservable inputs	Range 1	average 2
Loans and advances to	869	–	Discounted cash flows	Price/yield	3.06% – 23.7%	10.3%
customers 3			Comparable pricing/Yield	Price/yield	29.4% – 99.58%	90.9%
Reverse repurchase	3,037	–	Discounted cash flows	Repo curve	3.9% – 8.06%	5.8%
agreements and other similar				Price/yield	4.1% – 25.1%	11.3%
secured lending
Debt securities, alternative	501	–	Discounted cash flows	Price/yield	3.06% – 53.79%	16.5%
tier one and other eligible
securities
Equity shares (includes private	222	–	Comparable pricing/yield 4	Price	N/A	N/A
equity investments)			Discounted cash flows	Discount rates	25.9% to 25.9%	25.9%
Derivative financial
instruments of which:
Foreign exchange	38	43	Option pricing model	Foreign exchange option	0.35% – 44.6%	37.7%
				implied volatility
			Discounted cash flows	Interest rate curves	0.35% – 36.04%	12.6%
Commodities	–	1	Discounted cash flows	Commodity prices	$0.23 – $341.19	$62.
			Internal Pricing Model	CM-CM correlation	59.71% – 97.4%	78.6%
Interest rate	40	22	Discounted cash flows	Interest rate curves	3.51% – 36.04%	10.4%
Credit	16	2	Discounted cash flows	Credit spreads	0.86% – 1.02%	0.9%
				Price/yield	5.06% – 25.1%	15.2%
			Internal Pricing Model	Bond option implied	5% – 13%	10.8%
				volatility
Equity and stock index	3	24	Internal pricing model	Equity-Equity correlation	50.76% – 100%	77.6%
				Equity-FX correlation	-26.92% – 46.76%	6.7%
Deposits by banks	–	98	Discounted cash flows	Price/y	4.72% – 4.72%	4.7%
Customer accounts	–	254	Discounted cash flows	Price/yield	8.08% – 20.78%	15.8%
Debt securities in issue	–	1,080	Discounted cash flows	Price/yield	16.99% – 16.99%	17.0%
				Interest rate curves	3.58% – 36.04%	13.4%
			Internal pricing model	Equity-Equity correlation	50.76% – 100%	77.6%
				Equity-FX correlation	-26.92% – 46.76%	6.7%
			Option pricing model	Bond option implied	5% – 13%	10.8%
				volatility
Short positions	–	74	Discounted cash flows	Price/yield	7.13% – 7.13%	7.1%
Total	4,726	1,598

1 The ranges of values shown in the above table represent the highest and lowest levels used in the valuation of the Group’s Level 3 financial instruments as at

31 December 2025. The ranges of values used are reflective of the underlying characteristics of these Level 3 financial instruments based on the market conditions

at the balance sheet date. However, these ranges of values may not represent the uncertainty in fair value measurements of the Group’s Level 3 financial

instruments.

2 Weighted average for non-derivative financial instruments has been calculated by weighting inputs by the relative fair value. Weighted average for derivatives

has been provided by weighting inputs by the risk relevant to that variable. N/A has been entered for the cases where weighted average is not a meaningful

indicator.

3 The inputs for Loans and advances to customers under Discounted Cash flow technique have been split to show as a separate line under Comparable pricing/yield

for better representation of material inputs.

4 The inputs for equity shares under Comparable pricing/yield technique have been consolidated under ‘Price’ as they are not individually material.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 135

12. Financial instruments continued

		Value as at
	31 December 2024
	Assets	Liabilities	Principal	Significant		Weighted
Instrument	$million	$million	valuation technique	unobservable inputs	Range 1	average 2
Loans and advances to	862	–	Discounted cash flows	Price/yield	1.8% – 26.1%	6.4%
customers 3			Comparable pricing/yield	Price	26.5% – 100%	92.7%
Reverse repurchase	2,199	–	Discounted cash flows	Repo curve	2.0% – 7.6%	6.7%
agreements and other similar				Price/yield	5.0% – 10.5%	6.1%
secured lending
Debt securities, alternative	242	–	Discounted cash flows	Price/yield	5.3% – 15.3%	11.7%
tier one and other eligible				Recovery rate	0.01% – 15.0%	7.6%
securities
Equity shares (includes private	233	–	Comparable pricing/yield 4	Price	N/A	N/A
equity investments)			Discounted cash flows	Discount rates	12.5% – 20.4%	19.1%
			Option pricing model	Equity value based on	6.4x – 6.4x	6.4x
				EV/Revenue multiples
Derivative financial
instruments of which:
Foreign exchange	47	27	Option pricing model	Foreign exchange option	10.2% – 46.2%	42.0%
				implied volatility
				Interest rate curves	3.5% – 7.2%	4.2%
				Foreign exchange curves	0.03% – 34.3%	6.9%
Commodities	-	1	Discounted cash flows	Commodity prices	$384 – $391	$387
				CM-CM correlation	73.7% – 97.9%	86.0%
Interest rate	72	23	Discounted cash flows	Interest rate curves	3.5% – 7.2%	5.1%
Credit	9	16	Discounted cash flows	Credit spreads	0.1% – 1.7%	0.8%
				Price/yield	4.8% – 5.9%	5.3%
Equity and stock index	2	23	Internal pricing model	Equity-Equity correlation	44.9% – 100%	80.0%
				Equity-FX correlation	(36.4)% – 48.9%	5.0%
Deposits by banks	–	50	Discounted cash flows	Credit spreads	0.2% – 3.2%	1.7%
Customer accounts	–	252	Discounted cash flows	Price/yield	5.7% – 12.7%	7.5%
				Interest rate curves	3.5% – 4.4%	4.1%
Debt securities in issue	–	1,130	Discounted cash flows	Price/yield	6.2% – 14.8%	13.3%
				Interest rate curves	3.5% – 4.4%	4.1%
			Internal pricing model	Equity-Equity correlation	44.9% – 100%	80.0%
				Equity-FX correlation	(36.4)% – 48.9%	5.0%
			Option pricing model	Bond option implied	4.0% – 15.0%	12.5%
				volatility
Short position	–	180	Discounted cash flows	Price/yield	5.9% – 12.7%	6.3%
Total	3,666	1,702

1 The ranges of values shown in the above table represent the highest and lowest levels used in the valuation of the Group’s Level 3 financial instruments as at

31 December 2024. The ranges of values used are reflective of the underlying characteristics of these Level 3 financial instruments based on the market conditions

at the balance sheet date. However, these ranges of values may not represent the uncertainty in fair value measurements of the Group’s Level 3 financial

instruments.

2 Weighted average for non-derivative financial instruments has been calculated by weighting inputs by the relative fair value. Weighted average for derivatives

has been provided by weighting inputs by the risk relevant to that variable. N/A has been entered for the cases where weighted average is not a meaningful

indicator.

3 The inputs for Loans and advances to customers under Discounted Cash flow technique have been split to show as a separate line under Comparable pricing/yield

for better representation of material inputs.

4 The inputs for equity shares under Comparable pricing/yield technique have been consolidated under ‘Price’ as they are not individually material.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 136

12. Financial instruments continued

The following section describes the significant unobservable inputs identified in the valuation technique table:

• Comparable price/yield is a valuation methodology in which the price of a comparable instrument is used to estimate the

fair value where there are no direct observable prices. Yield is the interest rate that is used to discount the future cash flows in

a discounted cash flow model. Valuation using comparable instruments can be done by calculating an implied yield (or

spread over a liquid benchmark) from the price of a comparable instrument, then adjusting that yield (or spread) to derive a

value for the instrument. The adjustment should account for relevant differences in the financial instruments such as maturity

and/or credit quality. Alternatively, a price-to-price basis can be assumed between the comparable instrument and the

instrument being valued in order to establish the value of the instrument (for example, deriving a fair value for a junior

unsecured bond from the price of a senior secured bond). An increase in price, in isolation, would result in a favourable

movement in the fair value of the asset. An increase in yield, in isolation, would result in an unfavourable movement in the fair

value of the asset

• Correlation is the measure of how movement in one variable influences the movement in another variable. An equity

correlation is the correlation between two equity instruments, an interest rate correlation refers to the correlation between

two swap rates, while commodity correlation is correlation between two commodity underlying prices

• Commodity price curves is the term structure for forward rates over a specified period

• Credit spread represents the additional yield that a market participant would demand for taking exposure to the Credit Risk

of an instrument

• Discount rate refers to the rate of return used to convert expected cash flows into present value

• Equity-FX correlation is the correlation between equity instrument and foreign exchange instrument

• EV/EBITDA multiple is the ratio of Enterprise Value (EV) to Earnings Before Interest, Taxes, Depreciation and Amortisation

(EBITDA). EV is the aggregate market capitalisation and debt minus the cash and cash equivalents. An increase in EV/

EBITDA multiple will result in a favourable movement in the fair value of the unlisted firm

• EV/Revenue multiple is the ratio of Enterprise Value (EV) to Revenue. An increase in EV/Revenue multiple will result in a

favourable movement in the fair value of the unlisted firm

• Foreign exchange curves is the term structure for forward rates and swap rates between currency pairs over a specified

period

• Interest rate curves is the term structure of interest rates and measures of future interest rates at a particular point in time

• Recovery rates is the expectation of the rate of return resulting from the liquidation of a particular loan. As the probability of

default increases for a given instrument, the valuation of that instrument will increasingly reflect its expected recovery level

assuming default. An increase in the recovery rate, in isolation, would result in a favourable movement in the fair value of the

loan

• Repo curve is the term structure of repo rates on repos and reverse repos at a particular point in time

• Volatility represents an estimate of how much a particular instrument, parameter or index will change in value over time.

Generally, the higher the volatility, the more expensive the option will be

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 137

12. Financial instruments continued

Level 3 movement tables – financial assets

The table below analyses movements in Level 3 financial assets carried at fair value.

Group

				Held at fair value through profit or loss				Investment securities
			Reverse
			repurchase	Debt			Debt
			agreements	securities,			securities,
			and other	alternative			alternative
	Loans and	Loans and	similar	tier one		Derivative	tier one
	advances to	advances to	secured	and other	Equity	financial	and other	Equity
	banks	customers	lending	eligible bills	shares	instruments	eligible bills	shares	Total
Assets	$million	$million	$million	$million	$million	$million	$million	$million	$million
At 01 January 2025	–	1,356	2,556	863	116	147	–	250	5,288
Total gains/(losses) recognised in income statement	–	23	(3)	36	(9)	(22)	–	–	25
Net trading income	–	23	(3)	36	(9)	(22)	–	–	25
Other operating income	–	–	–	–	–	–	–	–	–
Total losses recognised in other comprehensive income (OCI)	–	–	–	–	–	–	–	49	49
Fair value through OCI reserve	–	–	–	–	–	–	–	49	49
Exchange difference	–	–	–	–	–	–	–	–	–
Purchases	–	2,029	8,796	391	13	171	–	2	11,402
Sales	–	(601)	(6,941)	(921)	(10)	(114)	–	(60)	(8,647)
Settlements	–	(180)	(1,054)	(6)	–	(38)	–	–	(1,278)
Transfers out 1	–	(803)	–	(280)	(7)	(23)	–	–	(1,113)
Transfers in 2	–	598	–	921	–	1	–	–	1,520
Other Movement	–	–	–	–	–	–	–	–	–
At 31 December 2025	–	2,422	3,354	1,004	103	122	–	241	7,246
Recognised in the income statement 3	–	(9)	(3)	5	(9)	(17)	–	–	(33)
At 01 January 2024	–	1,172	1,365	1,220	85	76	71	245	4,234
Total (losses)/gains recognised in income statement	(1)	(16)	18	(122)	7	(51)	–	–	(165)
Net trading income	(1)	(16)	18	(64)	7	(51)	–	–	(107)
Other operating income	–	–	–	(58)	–	–	–	–	(58)
Total gains recognised in other comprehensive income (OCI)	–	–	–	–	–	–	(11)	(8)	(19)
Fair value through OCI reserve	–	–	–	–	–	–	–	(4)	(4)
Exchange difference	–	–	–	–	–	–	(11)	(4)	(15)
Purchases	–	1,262	6,071	647	24	290	–	9	8,303
Sales	–	(1,261)	(4,251)	(899)	–	(174)	–	–	(6,585)
Settlements	(7)	(41)	(782)	–	–	(22)	–	–	(852)
Transfers out 1	(13)	(243)	(5)	–	–	(7)	(260)	–	(528)
Transfers in 2	21	483	140	17	–	35	200	4	900
At 31 December 2024	–	1,356	2,556	863	116	147	–	250	5,288
Recognised in the income statement 3	–	7	1	(1)	7	(15)	–	–	(1)

1 Transfers out includes loans and advances, debt securities, alternative tier one and other eligible bills, reverse repurchase agreements and derivative financial

instruments where the valuation parameters became observable during the period and were transferred to Level 1 and Level 2.

2 Transfers in primarily relate to loans and advances, debt securities, alternative tier one and other eligible bills, reverse repurchase agreements, equity shares and

derivative financial instruments where the valuation parameters become unobservable during the year.

3 Represents Total unrealised (losses)/gains recognised in the income statement, within net trading income, relating to change in fair value of assets.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 138

12. Financial instruments continued

Level 3 movement tables – financial assets

The table below analyses movements in Level 3 financial assets carried at fair value.

Company

			Held at fair value through profit or loss				Investment securities
			Reverse
			repurchase	Debt		Debt
			agreements	securities,		securities,
			and other	alternative		alternative
	Loans and	Loans and	similar	tier one and	Derivative	tier one and
	advances to	advances to	secured	other	financial	other	Equity
	banks	customers	lending	eligible bills	instruments	eligible bills	shares	Total
Assets	$million	$million	$million	$million	$million	$million	$million	$million
At 01 January 2025	–	862	2,199	242	130	–	233	3,666
Total gains/(losses) recognised in income statement	–	12	(1)	26	(10)	–	–	27
Net trading income	–	12	(1)	26	(10)	–	–	27
Total losses recognised in other comprehensive income (OCI)	–	–	–	–	–	–	49	49
Fair value through OCI reserve	–	–	–	–	–	–	49	49
Purchases	–	781	8,795	244	139	–	2	9,961
Sales	–	(409)	(6,941)	(342)	(114)	–	(62)	(7,868)
Settlements	–	(158)	(1,015)	(6)	(29)	–	–	(1,208)
Transfers out 1	–	(803)	–	(230)	(21)	–	–	(1,054)
Transfers in 2	–	584	–	567	2	–	–	1,153
At 31 December 2025	–	869	3,037	501	97	–	222	4,726
Recognised in the income statement 3	–	(16)	(1)	–	–	–	–	(17)
At 01 January 2024	–	1,024	1,092	114	72	–	226	2,528
Total (losses)/gains recognised in income statement	–	(24)	17	(50)	(41)	–	–	(98)
Net trading income	–	(24)	17	(50)	(41)	–	–	(98)
Other operating income	–	–	–	–	–	–	–	–
Total gains recognised in other comprehensive income (OCI)	–	–	–	–	–	–	–	–
Fair value through OCI reserve	–	–	–	–	–	–	1	1
Exchange difference	–	–	–	–	–	–	(1)	(1)
Purchases	–	683	5,177	423	317	–	9	6,609
Sales	(20)	(939)	(3,392)	(253)	(213)	–	–	(4,817)
Settlements	–	(28)	(782)	–	(13)	–	–	(823)
Transfers out 1	–	(226)	(5)	–	(24)	(200)	(2)	(457)
Transfers in 2	20	372	92	8	32	200	–	724
At 31 December 2024	–	862	2,199	242	130	–	233	3,666
Recognised in the income statement 3	–	–	–	–	(13)	–	–	(13)

1 Transfers out includes loans and advances, debt securities, alternative tier one and other eligible bills, equity shares and derivative financial instruments where the

valuation parameters became observable during the period and were transferred to Level 1 and Level 2.

2 Transfers in primarily relate to loans and advances, debt securities, alternative tier one and other eligible bills, equity shares and derivative financial instruments

where the valuation parameters become unobservable during the year.

3 Represents Total unrealised (losses)/gains recognised in the income statement, within net trading income, relating to change in fair value of assets.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 139

12. Financial instruments continued

Level 3 movement tables – financial liabilities

Group
			Debt	Derivative
	Deposits	Customer	securities	financial
	by banks	accounts	in issue	instruments	Short positions
	$million	$million	$million	$million	$million
At 01 January 2025	50	355	1,193	238	180 2,016
Total losses recognised in income
statement – net trading income	3	12	24	8	– 47
Issues	81	1,326	2,113	651	– 4,171
Settlements	(64)	(1,016)	(2,194)	(595)	(104) (3,973)
Transfers out 1	–	(230)	(58)	(88)	– (376)
Transfers in 2	40	63	16	1	– 120
At 31 December 2025	110	510	1,094	215	76 2,005
Recognised in the income statement 3	3	2	2	(13)	– (6)
At 01 January 2024	68	232	1,026	162	103 1,591
Total losses recognised in income
statement – net trading income	29	9	16	4	3 61
Issues	33	776	3,785	483	177 5,254
Settlements	(80)	(644)	(2,641)	(407)	(103) (3,875)
Transfers out 1	–	(26)	(1,063)	(10)	– (1,099)

Total

$million

Transfers in

– 8 70 6 – 84

At 31 December 2024 50 355 1,193 238 180 2,016

Recognised in the income statement

29 5 2 2 – 38

1 Transfers out during the year primarily relates to customer accounts, debt securities in issue and derivative financial instruments where the valuation parameters

became observable during the year and were transferred to Level 2 financial liabilities.

2 Transfers in during the year primarily relates to customer accounts, debt securities in issue and derivative financial instruments where the valuation parameters

became unobservable during the year.

3 Represents Total unrealised (losses)/gains recognised in the income statement, within net trading income, relating to change in fair value of liabilities.

Company

			Debt	Derivative
	Deposits	Customer	securities	financial
	by banks	accounts	in issue	instruments	Short positions	Total
	$million	$million	$million	$million	$million	$million
At 01 January 2025	50	252	1,130	90	180	1,702
Total losses recognised in income
statement – net trading income	3	8	22	22	–	55
Issues	80	768	2,037	100	–	2,985
Settlements	(64)	(594)	(2,067)	(90)	(106)	(2,921)
Transfers out 1	–	(230)	(58)	(31)	–	(319)
Transfers in 2	29	50	16	1	–	96
At 31 December 2025	98	254	1,080	92	74	1,598
Recognised in the income statement 3	3	–	–	–	–	3
At 01 January 2024	68	130	861	62	103	1,224
Total losses recognised in income
statement – net trading income	29	4	13	3	3	52
Issues	33	545	3,487	140	177	4,382
Settlements	(80)	(429)	(2,238)	(116)	(103)	(2,966)
Transfers out 1	–	(26)	(1,063)	(5)	–	(1,094)
Transfers in 2	–	28	70	6	–	104
At 31 December 2024	50	252	1,130	90	180	1,702
Recognised in the income statement 3	29	–	–	(1)	–	28

1 Transfers out during the year primarily relates to customer accounts, debt securities in issue and derivative financial instruments where the valuation parameters

became observable during the year and were transferred to Level 2 financial liabilities.

2 Transfers in during the year primarily relates to customer accounts, debt securities in issue and derivative financial instruments where the valuation parameters

become unobservable during the year.

3 Represents Total unrealised (losses)/gains recognised in the income statement, within net trading income, relating to change in fair value of liabilities.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 140

12. Financial instruments continued

Sensitivities in respect of the fair values of Level 3 assets and liabilities

Sensitivity analysis is performed on products with significant unobservable inputs. The Group applies a 10 per cent increase or

decrease on the values of these unobservable inputs, to generate a range of reasonably possible alternative valuations. The

percentage shift is determined by statistical analysis performed on a set of reference prices based on the composition of the

Group’s Level 3 inventory as the measurement date. Favourable and unfavourable changes (which show the balance adjusted

for input change) are determined on the basis of changes in the value of the instrument as a result of varying the levels of the

unobservable parameters. The Level 3 sensitivity analysis assumes a one-way market move and does not consider offsets for

hedges.

Group

			Held at fair value through profit or loss			Fair value through other comprehensive income
		Favourable	Unfavourable		Favourable	Unfavourable
	Net exposure	changes	changes	Net exposure	changes	changes
	$million	$million	$million	$million	$million	$million
Financial instruments held at fair value
Loans and advances	2,422	2,491	2,331	–	–	–
Reverse Repurchase agreements and other similar secured lending	3,354	3,386	3,326	–	–	–
Debt securities, alternative tier one and other eligible bills	1,004	1,025	985	–	–	–
Equity shares	103	113	92	241	265	217
Derivative financial instruments	(93)	(70)	(115)	–	–	–
Customer accounts	(510)	(497)	(525)	–	–	–
Deposits by banks	(110)	(108)	(112)	–	–	–
Short positions	(76)	(76)	(77)	–	–	–
Debt securities in issue	(1,094)	(1,017)	(1,171)	–	–	–
At 31 December 2025	5,000	5,247	4,734	241	265	217
Financial instruments held at fair value
Loans and advances	1,356	1,388	1,296	–	–	–
Reverse Repurchase agreements and other similar secured lending	2,556	2,591	2,521	–	–	–
Debt securities, alternative tier one and other eligible bills	863	896	831	–	–	–
Equity shares	116	127	105	250	275	225
Derivative financial instruments	(91)	(79)	(105)	–	–	–
Customer accounts	(355)	(344)	(367)	–	–	–
Deposits by banks	(50)	(50)	(50)	–	–	–
Short positions	(180)	(178)	(182)	–	–	–
Debt securities in issue	(1,193)	(1,134)	(1,252)	–	–	–
At 31 December 2024	3,022	3,217	2,797	250	275	225

The reasonably possible alternatives could have increased or decreased the fair values of financial instruments held at fair value

through profit or loss and those classified as fair value through other comprehensive income by the amounts disclosed below.

		Fair value changes
	Possible increase		Possible decrease
	2025	2024	2025	2024
Financial instruments	$million	$million	$million	$million
Held at fair value through profit or loss	246	195	(267)	(225)
Fair value through other comprehensive income	24	25	(24)	(25)

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 141

12. Financial instruments continued

Company

			Held at fair value through profit or loss			Fair value through other comprehensive income
		Favourable	Unfavourable		Favourable	Unfavourable
	Net exposure	changes	changes	Net exposure	changes	changes
	$million	$million	$million	$million	$million	$million
Financial instruments held at fair value
Loans and advances	869	919	811	–	–	–
Reverse Repurchase agreements and other similar secured lending	3,037	3,067	3,010	–	–	–
Debt securities, alternative tier one and other eligible bills	501	515	489	–	–	–
Equity shares	–	–	–	222	244	199
Derivative financial instruments	5	22	(10)	–	–	–
Customer accounts	(254)	(244)	(265)	–	–	–
Deposits by banks	(98)	(96)	(99)	–	–	–
Short positions	(74)	(74)	(75)	–	–	–
Debt securities in issue	(1,080)	(1,001)	(1,160)	–	–	–
At 31 December 2025	2,906	3,108	2,701	222	244	199
Financial instruments held at fair value
Loans and advances	862	888	819	–	–	–
Reverse Repurchase agreements and other similar secured lending	2,199	2,232	2,165	–	–	–
Debt securities, alternative tier one and other eligible bills	242	247	237	–	–	–
Equity shares	–	–	–	233	256	210
Derivative financial instruments	40	52	27	–	–	–
Customer accounts	(252)	(244)	(261)	–	–	–
Deposits by banks	(50)	(50)	(50)	–	–	–
Short positions	(180)	(178)	(182)	–	–	–
Debt securities in issue	(1,130)	(1,076)	(1,184)	–	–	–
At 31 December 2024	1,731	1,871	1,571	233	256	210

The reasonably possible alternatives could have increased or decreased the fair values of financial instruments held at fair value

through profit or loss and those classified as fair value through other comprehensive income by the amounts disclosed below.

		Fair value changes
	Possible increase		Possible decrease
	2025	2024	2025	2024
Financial instruments	$million	$million	$million	$million
Held at fair value through profit or loss	201	140	(206)	(160)
Fair value through other comprehensive income	22	23	(23)	(23)

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 142

13. Derivative financial instruments

Accounting policy

Fair values may be obtained from quoted market prices in active markets, recent market transactions, and valuation

techniques, including discounted cash flow models and option pricing models, as appropriate. Where the initially recognised

fair value of a derivative contract is based on a valuation model that uses inputs which are not observable in the market,

it follows the same initial recognition accounting policy as for other financial assets and liabilities. All derivatives are carried

as assets when fair value is positive and as liabilities when fair value is negative.

Hedge accounting

Under certain conditions, the Group may designate a recognised asset or liability, a firm commitment, highly probable

forecast transaction or net investment of a foreign operation into a formal hedge accounting relationship with a derivative

that has been entered to manage interest rate and/or foreign exchange risks present in the hedged item. The Group has

elected to continue applying IAS 39 for hedge accounting.

There are three categories of hedge relationships:

• Fair value hedge: to manage the fair value of interest rate and/or foreign currency risks of recognised assets or liabilities

or firm commitments

• Cash flow hedge: to manage interest rate or foreign exchange risk of highly probable future cash flows attributable

to a recognised asset or liability, or a forecasted transaction

• Net investment hedge: to manage the structural foreign exchange risk of an investment in a foreign operation.

The Group assesses, both at hedge inception and on a quarterly basis, whether the derivatives designated in hedge

relationships are highly effective in offsetting changes in fair values or cash flows of hedged items. Hedges are considered

to be highly effective if all the following criteria are met:

• At inception of the hedge and throughout its life, the hedge is prospectively expected to be highly effective in achieving

offsetting changes in fair value or cash flows attributable to the hedged risk

• Prospective and retrospective effectiveness of the hedge should be within a range of 80–125%. This is tested using

regression analysis

• This is tested using regression analysis where the slope of the regression line must be between -0.80 and -1.25 and

the data pairs between the hedged item and the hedging instrument are regressed to a 95% confidence interval.

The regression co-efficient (R squared), which measures the correlation between the variables in the regression,

is at least 80%.

In the case of the hedge of a forecast transaction, the transaction must have a high probability of occurring

and must present an exposure to variations in cash flows that are expected to affect reported profit or loss.

Fair value hedge

Changes in the fair value of derivatives that are designated and qualify as fair value hedging instruments are recorded

in net trading income, together with any changes in the fair value of the hedged asset or liability that are attributable

to the hedged risk. If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount

of a hedged item for which the effective interest method is used is amortised to the income statement over the remaining

term to maturity of the hedged item. If the hedged item is sold or repaid, the unamortised fair value adjustment

is recognised immediately in the income statement. For financial assets classified as fair value through other comprehensive

income, the hedge accounting adjustment attributable to the hedged risk is included in net trading income to match

the hedging derivative .

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 143

13. Derivative financial instruments continued

Cash flow hedge

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedging

instruments are initially recognised in other comprehensive income, accumulating in the cash flow hedge reserve within

equity. These amounts are subsequently recycled to the income statement in the periods when the hedged item affects

profit or loss. Both the derivative fair value movement and any recycled amount are recorded in the ‘Cashflow hedges’ line

item in other comprehensive income. The Group assesses hedge effectiveness using the hypothetical derivative method,

which creates a derivative instrument to serve as a proxy for the hedged transaction. The terms of the hypothetical derivative

match the critical terms of the hedged item and it has a fair value of zero at inception. The hypothetical derivative and the

actual derivative are regressed to establish the statistical significance of the hedge relationship. Any ineffective portion of

the gain or loss on the hedging instrument is recognised in the net trading income immediately.

If a cash flow hedge is discontinued, the amount accumulated in the cash flow hedge reserve is released to the income

statement as and when the hedged item affects the income statement. Should the Group consider the hedged future

cash flows are no longer expected to occur due to reasons, the cumulative gain or loss will be immediately reclassified to

profit or loss.

Net investment hedge

Hedges of net investments are accounted for in a similar manner to cash flow hedges, with gains and losses arising on

the effective portion of the hedges recorded in the line ‘Exchange differences on translation of foreign operations’ in other

comprehensive income, accumulating in the translation reserve within equity. These amounts remain in equity until the

net investment is disposed of. The ineffective portion of the hedges is recognised in the net trading income immediately.

The tables below analyse the notional principal amounts and the positive and negative fair values of derivative financial

instruments. Notional principal amounts are the amounts of principal underlying the contract at the reporting date.

Derivatives

Group

		2025			2024
	Notional			Notional
	principal			principal
	amounts	Assets	Liabilities	amounts	Assets	Liabilities
Derivatives	$million	$million	$million	$million	$million	$million
Foreign exchange derivative contracts 1 :
Forward foreign exchange contracts	5,982,099	41,876	42,276	5,007,030	55,423	53,632
Currency swaps and options	1,457,790	10,955	11,854	1,241,536	13,347	14,346
	7,439,889	52,831	54,130	6,248,566	68,770	67,978
Interest rate derivative contracts:
Swaps	10,108,824	19,920	20,167	6,790,635	24,809	25,007
Forward rate agreements and options	321,508	1,321	1,083	292,625	2,283	2,678
	10,430,332	21,241	21,250	7,083,260	27,092	27,685
Exchange traded futures and options	634,982	39	84	375,487	30	27
Credit derivative contracts	82,463	523	1,277	220,389	801	1,162
Equity and stock index options	12,958	242	276	7,427	206	146
Commodity derivative contracts	184,168	2,774	2,374	142,065	1,277	1,038
Gross total derivatives	18,784,792	77,650	79,391	14,077,194	98,176	98,036
Offset	–	(11,171)	(11,171)	–	(15,459)	(15,459)
Total derivatives	18,784,792	66,479	68,220	14,077,194	82,717	82,577

1 Foreign exchange derivative contracts include precious metals derivatives .

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 144

13. Derivative financial instruments continued

Company

		2025			2024
	Notional			Notional
	principal			principal
	amounts	Assets	Liabilities	amounts	Assets	Liabilities
Derivatives	$million	$million	$million	$million	$million	$million
Foreign exchange derivative contracts 1 :
Forward foreign exchange contracts	6,117,189	42,099	42,261	5,040,980	55,576	54,196
Currency swaps and options	1,444,474	10,758	11,644	1,233,628	13,206	14,260
	7,561,663	52,857	53,905	6,274,608	68,782	68,456
Interest rate derivative contracts:
Swaps	10,159,444	20,141	20,484	6,826,162	25,053	25,248
Forward rate agreements and options	326,751	1,284	1,078	293,160	2,263	2,674
	10,486,195	21,425	21,562	7,119,322	27,316	27,922
Exchange traded futures and options	634,982	40	85	375,487	30	27
Credit derivative contracts	75,850	446	795	213,526	623	719
Equity and stock index options	1,993	13	45	2,210	99	39
Commodity derivative contracts	186,156	3,021	2,335	143,982	1,453	1,041
Gross total derivatives	18,946,839	77,802	78,727	14,129,135	98,303	98,204
Offset	–	(11,171)	(11,171)	–	(15,459)	(15,459)
Total derivatives	18,946,839	66,631	67,556	14,129,135	82,844	82,745

1 Foreign exchange derivative contracts include precious metals derivatives.

The Group limits exposure to credit losses in the event of default by entering into master netting agreements with certain

market counterparties. As required by IAS 32, exposures are only presented net in these accounts where they are subject to legal

right of offset and intended to be settled net in the ordinary course of business. The Group applies balance sheet offsetting only

in the instance where we are able to demonstrate legal enforceability of the right to offset (e.g. via legal opinion) and the ability

and intention to settle on a net basis (e.g. via operational practice) The Group may enter into economic hedges that do not

qualify for IAS 39 hedge accounting treatment, including derivative such as interest rate swaps, interest rate futures and cross

currency swaps to manage interest rate and currency risks of the Group. These derivatives are measured at fair value, with fair

value changes recognised in net trading income: refer to Market risk (page 60). The Derivatives and Hedging sections of the

Risk review and Capital review (page 59) explain the Group’s risk management of derivative contracts and application of

hedging.

Derivatives held for hedging

The Group enters into derivative contracts for the purpose of hedging interest rate, currency and structural foreign exchange

risks inherent in assets, liabilities and forecast transactions. The table below summarises the notional principal amounts and

carrying values of derivatives designated in hedge accounting relationships at the reporting date.

Group

		2025			2024
	Notional			Notional
	principal			principal
	amounts	Assets	Liabilities	amounts
	$million	$million	$million	$million	Assets	Liabilities
Derivatives designated as fair value hedges:
Interest rate swaps	42,671	516	399	42,694	639	622
Currency swaps	1,954	92	–	1,035	–	56
	44,625	608	399	43,729	639	678
Derivatives designated as cash flow hedges:
Interest rate swaps	38,948	168	40	32,651	68	134
Forward foreign exchange contracts	3,848	110	31	9,173	608	–
Currency swaps	644	10	10	2,163	114	1
	43,440	288	81	43,987	790	135
Derivatives designated as net
investment hedges:
Forward foreign exchange contracts	4,868	119	–	3,222	36	–
Total derivatives held for hedging	92,933	1,015	480	90,938	1,465	813

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 145

13. Derivative financial instruments continued

Company

		2025			2024
	Notional			Notional
	principal			principal
	amounts	Assets	Liabilities	amounts	Assets	Liabilities
	$million	$million	$million	$million	$million	$million
Derivatives designated as fair value hedges:
Interest rate swaps	40,695	513	394	41,622	616	621
Currency swaps	193	2	–	–	–	–
	40,888	515	394	41,622	616	621
Derivatives designated as cash flow hedges:
Interest rate swaps	20,322	87	19	23,611	49	60
Forward foreign exchange contracts	2,579	107	–	8,884	578	–
Currency swaps	–	–	–	1,231	31	–
	22,901	194	19	33,726	658	60
Derivatives designated as net
investment hedges:
Forward foreign exchange contracts	4,839	118	–	3,222	36	–
Total derivatives held for hedging	68,628	827	413	78,570	1,310	681

Fair value hedges

The Group issues various long-term fixed-rate debt issuances that are measured at amortised cost, including some

denominated in foreign currency, such as unsecured senior and subordinated debt (see Notes 22 and 27). The Group also holds

various fixed rate debt securities such as government and corporate bonds, including some denominated in foreign currency

(see Note 12). These assets and liabilities held are exposed to changes in fair value due to movements in market interest and

foreign currency rates.

The Group uses interest rate swaps to exchange fixed rates for floating rates on funding to match floating rates received on

assets, or exchange fixed rates on assets to match floating rates paid on funding. The Group further uses cross- currency swaps

to match the currency of the issued debt or held asset with that of the entity’s functional currency.

Hedge ineffectiveness from fair value hedges is driven by cross-currency basis risk and interest cashflows mismatch between the

hedging instruments and underlying hedged items. The amortisation of fair value hedge adjustments for hedged items no

longer designated is recognised in net interest income.

As at 31 December 2025, the Group held the following interest rate and cross currency swaps as hedging instruments in fair

value hedges of interest and currency risk.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 146

13. Derivative financial instruments continued

Hedging instruments and ineffectiveness

Group

				Change in fair
		Carrying Amount		value used to	Ineffectiveness
				calculate hedge	recognised in
	Notional	Asset	Liability	ineffectiveness²	profit or loss
Interest rate¹	$million	$million	$million	$million	$million
Interest rate swaps – debt securities/subordinated
notes issued	23,972	372	340	319	–
Interest rate swaps – loans and advances to customers	214	–	3	1	–
Interest rate swaps – debt securities and other eligible bills	18,485	144	56	(319)	(9)
Interest and currency risk 1
Cross currency swaps – debt securities/subordinated
notes issued	1,954	92	–	141	–
Cross currency swaps – debt securities and other eligible bills	–	–	–	–	–
Total as at 31 December 2025	44,625	608	399	142	(9)
Interest rate swaps – debt securities/subordinated
notes issued	28,236	199	588	(57)	(4)
Interest rate swaps – loans and advances to customers	807	1	12	(3)	–
Interest rate swaps – debt securities and other eligible bills	13,651	439	22	141	2
Interest and currency risk¹
Cross currency swaps – debt securities/subordinated
notes issued	1,035	–	56	(52)	(1)
Cross currency swaps – debt securities and other eligible bills	–	–	–	(10)	–
Total as at 31 December 2024	43,729	639	678	19	(3)

1 Interest rate swaps are designated in hedges of the fair value of interest rate risk attributable to the hedged item. Cross currency swaps are used to hedge both

interest rate and currency risks. All the hedging instruments are derivatives, with changes in fair value including hedge ineffectiveness recorded within net trading

income.

2 This represents a (loss)/gains change in fair value used for calculating hedge ineffectiveness.

Hedged items in fair value hedges

						Cumulative
				Accumulated amount of fair value		balance of fair
				hedge adjustments included in the	Change in the	value adjustments
	Carrying Amount			carrying amount	value used for	from de-
					calculating hedge	designated hedge
	Asset	Liability	Asset	Liability	ineffectiveness 1	relationships 2
	$million	$million	$million	$million	$million	$million
Debt securities/subordinated notes issued	–	26,038	–	32	(460)	(164)
Debt securities and other eligible bills	18,449	–	(46)	–	310	73
Loans and advances to customers	214	–	–	–	(1)	–
Total as at 31 December 2025	18,663	26,038	(46)	32	(151)	(91)
Debt securities/subordinated notes issued	–	29,845	–	503	104	(242)
Debt securities and other eligible bills	13,195	–	(327)	–	(130)	204
Loans and advances to customers	811	–	4	–	4	4
Total as at 31 December 2024	14,006	29,845	(323)	503	(22)	(34)

1 This represents a gain/(loss) change in fair value used for calculating hedge ineffectiveness.

2 This represents a credit/(debit) to the balance sheet value.

Income statement impact of fair value hedges

	2025	2024
	$million	$million
Change in fair value of hedging instruments	142	19
Change in fair value of hedged risks attributable to hedged items	(151)	(22)
Net ineffectiveness loss to net trading income	(9)	(3)
Amortisation (loss)/gain to net interest income	(16)	129

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 147

13. Derivative financial instruments continued

Hedging instruments and ineffectiveness

Company

Interest rate¹

				Change in fair
		Carrying Amount		value used to	Ineffectiveness
				calculate hedge	recognised in
	Notional	Asset	Liability	ineffectiveness	profit or loss
	$million	$million	$million	$million	$million
Interest rate swaps – debt securities/subordinated
notes issued	23,798	372	340	319	–
Interest rate swaps – loans and advances to customers	149	–	3	2	–
Interest rate swaps – debt securities and other eligible bills	16,748	141	51	(309)	(9)
Interest and currency risk 1
Cross currency swaps – debt securities/subordinated
notes issued	193	2	–	1	–
Cross currency swaps – debt securities and other eligible bills	–	–	–	–	–
Total as at 31 December 2025	40,888	515	394	13	(9)
Interest rate swaps – debt securities/subordinated
notes issued	28,236	200	588	(57)	(4)
Interest rate swaps – loans and advances to customers	760	–	12	(4)	–
Interest rate swaps – debt securities and other eligible bills	12,626	416	21	137	2
Interest and currency risk 1
Cross currency swaps – debt securities/subordinated
notes issued	–	–	–	8	–
Cross currency swaps – debt securities and other eligible bills	–	–	–	(10)	–
Total as at 31 December 2024	41,622	616	621	74	(2)

1 Interest rate swaps are designated in hedges of the fair value of interest rate risk attributable to the hedged item. Cross currency swaps are used to hedge

both interest rate and currency risks. All the hedging instruments are derivatives, with changes in fair value including hedge ineffectiveness recorded within net

trading income.

2 This represents a (loss)/gains change in fair value used for calculating hedge ineffectiveness.

Hedged Items in fair value hedges

						Cumulative
				Accumulated amount of fair value		balance of fair
				hedge adjustments included in the	Change in the	value adjustments
	Carrying Amount			carrying amount	value used for	from de-
					calculating hedge	designated hedge
	Asset	Liability	Asset	Liability	ineffectiveness 1	relationships 2
	$million	$million	$million	$million	$million	$million
Debt securities/subordinated notes issued	–	24,183	–	114	(320)	(164)
Debt securities and other eligible bills	16,695	–	(51)	–	300	75
Loans and advances to customers	150	–	–	–	(2)	–
Total as at 31 December 2025	16,845	24,183	(51)	114	(22)	(89)
Debt securities/subordinated notes issued	–	28,751	–	444	45	(242)
Debt securities and other eligible bills	12,192	–	(314)	–	(125)	204
Loans and advances to customers	765	–	5	–	4	4
Total as at 31 December 2024	12,957	28,751	(309)	444	(76)	(34)

1 This represents a gain/(loss) change in fair value used for calculating hedge ineffectiveness.

2 This represents a credit/(debit) to the balance sheet value.

Income statement impact of fair value hedges

	2025	2024
	$million	$million
Change in fair value of hedging instruments	13	74
Change in fair value of hedged risks attributable to hedged items	(22)	(76)
Net ineffectiveness loss to net trading income	(9)	(2)
Amortisation (loss)/gain to net interest income	(16)	131

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 148

13. Derivative financial instruments continued

Cash flow hedges

The Group has exposure to market movements in future interest cash flows on portfolios of customer accounts, debt securities

and loans and advances to customers. The amounts and timing of future cash flows, representing both principal and interest

flows, are projected on the basis of contractual terms and other relevant factors, including estimates of prepayments and

defaults.

The hedging strategy of the Group involves using interest rate swaps to manage the variability in future cash flows on assets

and liabilities that have floating rates of interest by exchanging the floating rates for fixed rates. It also uses foreign exchange

contracts and currency swaps to manage the variability in future exchange rates on its assets and liabilities and costs in foreign

currencies.

This is done on both a micro basis whereby a single interest rate or cross-currency swap is designated in a separate relationship

with a single hedged item (such as a floating-rate loan to a customer), and on a portfolio basis whereby each hedging

instrument is designated against a group of hedged items that share the same risk (such as a group of customer accounts).

Hedge ineffectiveness for cash flow hedges is mainly driven by reset frequency and payment mismatch between the hedging

instrument and the underlying hedged item.

The hedged risk is determined as the variability of future cash flows arising from changes in the designated benchmark interest

and/or foreign exchange rates.

Hedging instruments and ineffectiveness

Group

						Ineffectiveness
				Change in fair		gain/(loss)	Amount
			Carrying Amount	value used to	Gain/(loss)	recognised in	reclassified from
				calculate hedge	recognised in	net trading	reserves to
	Notional	Asset	Liability	ineffectiveness¹	OCI	income	income
	$million	$million	$million	$million	$million	$million	$million
Interest rate risk
Interest rate swaps	38,948	168	40	172	169	3	–
Currency risk
Forward foreign exchange contract	3,848	110	31	(6)	(5)	(1)	–
Cross currency swaps	644	10	10	(93)	(94)	1	–
Total as at 31 December 2025	43,440	288	81	73	70	3	–
Interest rate risk
Interest rate swaps	32,651	68	134	(1)	2	(3)	–
Currency risk
Forward foreign exchange contract	9,173	608	–	42	42	–	–
Cross currency swaps	2,163	114	1	76	77	(1)	–
Total as at 31 December 2024	43,987	790	135	117	121	(4)	–

1 This represents a gain/(loss) change in fair value used for calculating hedge ineffectiveness.

Hedged items in cash flow hedges

		2025			2024
			Cumulative			Cumulative
			balance in the			balance in the
			cash flow hedge	Change in fair		cash flow hedge
	Change in fair		reserve from	value used for		reserve from
	value used for		de-designated	calculating		de-designated
	calculating hedge	Cash flow hedge	hedge	hedges	Cash flow hedge	hedge
	ineffectiveness 1	reserve	relationships	ineffectiveness 1	reserve	relationships
	$million	$million	$million	$million	$million	$million
Customer accounts	15	2	14	(82)	(3)	16
Debt securities and other eligible bills	(17)	1	–	(7)	(16)	(4)
Loans and advances to customers	(145)	156	(3)	22	32	(6)
Intragroup borrowing currency hedge	77	–	–	(54)	–	–
Total as at 31 December	(70)	159	11	(121)	13	6

1 This represents a gain/(loss) change in fair value used for calculating hedge ineffectiveness .

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 149

13. Derivative financial instruments continued

Impact of cash flow hedges on profit and loss and other comprehensive income

	2025	2024
	$million	$million
Cash flow hedge reserve balance as at 1 January	8	(13)
Gain recognised in other comprehensive income on effective portion of changes in fair value of hedging instruments	70	121
Loss/(Gain) reclassified to income statement when hedged item affected net profit	80	(89)
Taxation charge relating to cash flow hedges	(23)	(11)
Cash flow hedge reserve balance as at 31 December	135	8

Hedging instruments and ineffectiveness

Company

						Ineffectiveness
				Change in fair		gain/(loss)	Amount
			Carrying Amount	value used to	Gain/(loss)	recognised in	reclassified from
				calculate hedge	recognised in	net trading	reserves to
	Notional	Asset	Liability	ineffectiveness¹	OCI	income	income
	$million	$million	$million	$million	$million	$million	$million
Interest rate risk
Interest rate swaps	20,322	87	19	72	72	–	–
Currency risk
Forward foreign exchange contract	2,579	107	–	(2)	(2)	–	–
Cross currency swaps	–	–	–	(77)	(77)	–	–
Total as at 31 December 2025	22,901	194	19	(7)	(7)	–	–
Interest rate risk
Interest rate swaps	23,611	49	60	45	47	(2)	–
Currency risk
Forward foreign exchange contract	8,884	578	–	34	34	–	–
Cross currency swaps	1,231	31	–	53	53	–	–
Total as at 31 December 2024	33,726	658	60	132	134	(2)	–

1 This represents a gain/(loss) change in fair value used for calculating hedge ineffectiveness.

Hedged items in cash flow hedges

		2025			2024
			Cumulative			Cumulative
			balance in the			balance in the
			cash flow hedge			cash flow hedge
	Change in fair		reserve from	Change in fair		reserve from
	value used for		de-designated	value used for		de-designated
	calculating hedge	Cash flow hedge	hedge	calculating hedge	Cash flow hedge	hedge
	ineffectiveness¹	reserve	relationships	ineffectiveness 1	reserve	relationships
	$million	$million	$million	$million	$million	$million
Customer accounts	11	2	14	(81)	(3)	16
Debt securities and other eligible bills	(17)	–	–	(5)	(18)	(4)
Loans and advances to customers	(64)	73	(5)	6	31	(6)
Intragroup borrowing currency hedge	77	–	–	(54)	–	–
Total as at 31 December	7	75	9	(134)	10	6

1 This represents a gain/(loss) change in fair value used for calculating hedge ineffectiveness.

Impact of cash flow hedges on profit and loss and other comprehensive income

	2025	2024
	$million	$million
Cash flow hedge reserve balance as at 1 January	(17)	(51)
(Loss)/gain recognised in other comprehensive income on effective portion of changes in fair value of hedging instruments	(7)	134
Loss/(gain) reclassified to income statement when hedged item affected net profit	75	(88)
Taxation charge relating to cash flow hedges	(14)	(12)
Cash flow hedge reserve balance as at 31 December	37	(17)

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 150

13. Derivative financial instruments continued

Net investment hedges

Foreign currency exposures arise from investments in subsidiaries that have a different functional currency from that of the

presentation currency of the parent. This risk arises from the fluctuation in spot exchange rates between the functional currency

of the subsidiaries and the parent’s functional currency, which causes the value of the investment to vary.

The Group’s policy is to hedge these exposures only when not doing so would be expected to have a significant impact on the

regulatory ratios of the Group and its banking subsidiaries. The Group uses foreign exchange forwards to manage the effect of

exchange rates on its net investments in foreign subsidiaries.

Hedging instruments and ineffectiveness

Group

				Changes in the
				Change in fair value of the
			Carrying amount	value used to	hedging	Ineffectiveness	Amount
				calculate hedge	instrument	recognised in	reclassified from
	Notional	Asset	Liability	ineffectiveness 2	recognised in OCI	profit or loss	reserves to income
Derivative forward currency contracts 1	$million	$million	$million	$million	$million	$million	$million
As at 31 December 2025	4,868	119	–	75	75	–	–
As at 31 December 2024	3,222	36	–	44	44	–	–

1	These derivative forward currency contracts have a maturity of less than one year. The hedges are rolled on a periodic basis.
2	This represents a gain/(loss) change in fair value used for calculating hedge ineffectiveness.
Hedged items in net investment hedges		2025		2024
		Balances
		remaining in the
		translation reserve		translation reserve
		from hedging
	Change in the	relationships for	Change in the
	value used for	which hedge

calculating hedge

ineffectiveness¹

$million

Translation

reserve²

$million

accounting is no

longer applied

$million

value used for

calculating hedge

ineffectiveness

$million

Translation

reserve

$million

Balances

remaining in the

from hedging

relationships for

which hedge

accounting is no

longer applied

$million

Net investments (75) 118 – (44) 36 –

1 This represents a gain/(loss) change in fair value used for calculating hedge ineffectiveness.

2 This represents the mark-to-market including accrued interest on live hedges at 31 December.

	2025	2024
	$million	$million
Gains recognised in other comprehensive income	75	44

Hedging instruments and ineffectiveness

Company

				Changes in the
				Change in fair value of the
			Carrying amount	value used to	hedging	Ineffectiveness	Amount
				calculate hedge	instrument	recognised in	reclassified from
	Notional	Asset	Liability	ineffectiveness 2	recognised in OCI	profit or loss	reserves to income
Derivative forward currency contracts 1	$million	$million	$million	$million	$million	$million	$million
As at 31 December 2025	4,839	118	–	75	75	–	–
As at 31 December 2024	3,222	36	–	15	15	–	–

1 These derivative forward currency contracts have a maturity of less than one year. The hedges are rolled on a periodic basis.

2 This represents a gain/(loss) change in fair value used for calculating hedge ineffectiveness.

Hedged items in net investment hedges

		2025			2024
			Balances			Balances
			remaining in the			remaining in the
			translation reserve			translation reserve
			from hedging			from hedging
	Change in the		relationships for	Change in the		relationships for
	value used for		which hedge	value used for		which hedge
	calculating hedge	Translation	accounting is no	calculating hedge	Translation	accounting is no
	ineffectiveness 1	reserve 2	longer applied	ineffectiveness 1	reserve 2	longer applied
	$million	$million	$million	$million	$million	$million
Net investments	(75)	117	–	(15)	36	–

1 This represents a gain/(loss) change in fair value used for calculating hedge ineffectiveness.

2 This represents the mark-to-market including accrued interest on live hedges at 31 December .

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 151

13. Derivative financial instruments continued

Impact of net investment hedges on other comprehensive income

	2025	2024
	$million	$million
Gains recognised in other comprehensive income	75	15

Maturity of hedging instruments

Group

				2025				2024
			More than				More than
			one month				one month
		Less	and less			Less	and less
		than one	than one	One to five	More than	than one	than one	One to five	More than
Fair value hedges		month	year	years	five years	month	year	years	five years
Interest rate swap
Notional	$million	285	5,340	27,768	9,278	1,300	8,850	22,506	10,038
Cross currency swap
Notional	$million	–	–	1,954	–	–	–	1,035	–
Average fixed interest rate (to USD) (%)	EUR	–	–	2.30	–	–	–	2.40	–
Average exchange rate	EUR/USD	–	–	0.90	–	–	–	0.91	–
Cash flow hedges
Interest rate swap
Notional	$million	1,253	11,099	25,217	1,379	2,250	13,331	15,286	1,784
Average fixed interest rate (%)	USD	4.00	4.10	3.60	3.70	5.02	4.59	4.06	3.74
Cross currency swap
Notional	$million	–	538	106	–	28	1,525	610	–
Average fixed interest rate (%)	INR	–	10.10	10.60	–	–	9.19	11.41	–
	JPY	–	–	–	–	–	0.08	–	–
	BRL	–	10.90	–	–	–	–	10.90	–
Average exchange rate	INR/USD	–	87.60	83.01	–	–	83.63	83.20	–
	JPY/USD	–	–	–	–	–	153.62	–	–
	BRL/USD	–	5.53	–	–	–	–	5.53	–
Forward foreign exchange contracts
Notional	$million	718	2,834	296	–	2,024	6,860	289	–
Average exchange rate	HKD/USD	7.77	7.75	–	–	–	–	–	–
	BRL/USD	–	6.54	6.37	–	–	–	6.5	–
	JPY/USD	148.75	147.10	–	–	147.38	146.65	–	–
Net investment hedges
Foreign exchange derivatives
Notional	$million	4,839	29	–	–	3,222	–	–	–
Average exchange rate	INR/USD	86.63	–	–	–	84.07	–	–	–
	AED/USD	3.67	–	–	–	3.67	–	–	–

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 152

13. Derivative financial instruments continued

Maturity of hedging instruments

Company

				2025				2024
			More than				More than
			one month				one month
			and less				and less
		Less than	than one	One to five	More than	Less than	than one	One to five	More than
Fair value hedges		one month	year	years	five years	one month	year	years	five years
Interest rate swap
Notional	$million	259	4,544	26,614	9,279	1,300	8,715	21,569	10,038
Cross currency swap
Notional	$million	–	–	193	–	–	–	–	–
Average fixed interest rate (to USD)
(%)	HKD	–	–	2.36	–	–	–	–	–
Average exchange rate	HKD/USD	–	–	7.85	–	–	–	–	–
Cash flow hedges
Interest rate swap
Notional	$million	994	7,441	11,507	380	2,005	11,373	9,449	784
Average fixed interest rate (%)	USD	4.02	4.16	3.67	3.54	5.36	4.30	4.29	3.95
Cross currency swap
Notional	$million	–	–	–	–	–	1,231	–	–
Average fixed interest rate (%)	JPY	–	–	–	–	–	0.19	–	–
Average exchange rate	JPY/USD	–	–	–	–	–	153.62	–	–
Forward foreign exchange contracts
Notional	$million	608	1,971	–	–	2,024	6,860	–	–
Average exchange rate	INR/USD	–	–	–	–	147.38	145.65	–	–
	HKD/USD	7.77	–	–	–	–	–	–	–
	JPY/USD	148.75	147.10	–	–	–	–	–	–
Net investment hedges
Foreign exchange derivatives
Notional	$million	4,839	–	–	–	3,222	–	–	–
Average exchange rate	INR/USD	86.63	–	–	–	84.07	–	–	–
	AED/USD	12.86	–	–	–	3.67	–	–	–

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 153

14. Loans and advances to banks and customers

Accounting policy

Refer to Note 12 Financial instruments for the relevant accounting policy

	Group		Company
	2025	2024	2025	2024
	$million	$million	$million	$million
Loans and advances to banks	24,778	22,949	11,111	11,757
Expected credit loss	(7)	(8)	(3)	(2)
	24,771	22,941	11,108	11,755
Loans and advances to customers	162,055	161,141	81,769	79,392
Expected credit loss	(2,801)	(2,899)	(1,678)	(1,795)
	159,254	158,242	80,091	77,597
Total loans and advances to banks and customers 1	184,025	181,183	91,199	89,352

1 Includes $2.5 billion (Group) and $0.4 billion (Company) (31 December 2024: $1.8 billion (Group) and $0.6 billion (Company)) of assets pledged as collateral.

Analysis of loans and advances to customers by client segments and related impairment provisions as set out within

the Risk review and Capital review (page 48).

15. Reverse repurchase and repurchase agreements including other similar lending

and borrowing

Accounting policy

The Group purchases securities (a reverse repurchase agreement – ‘reverse repo’) typically with financial institutions subject

to a commitment to resell or return the securities at a predetermined price. These securities are not included in the balance

sheet as the Group does not acquire the risks and rewards of ownership, however they are recorded off-balance sheet

as collateral received. Consideration paid (or cash collateral provided) is accounted for as a loan asset at amortised cost

unless it is managed on a fair value basis or designated at fair value through profit or loss. In the majority of cases through

the contractual terms of a reverse repo arrangement, the Group as the transferee of the security collateral has the right to

sell or repledge the asset concerned.

The Group also sells securities (a repurchase agreement – ‘repo’) subject to a commitment to repurchase or redeem the

securities at a predetermined price. The securities are retained on the balance sheet as the Group retains substantially

all the risks and rewards of ownership and these securities are disclosed as pledged collateral. Consideration received

(or cash collateral received) is accounted for as a financial liability at amortised cost unless it is either mandatorily

classified as fair value through profit or loss or irrevocably designated at fair value through profit or loss at initial recognition.

Repo and reverse repo transactions typically entitle the Group and its counterparties to have recourse to assets similar

to those provided as collateral in the event of a default. Securities sold subject to repos, either by way of a Global Master

Repurchase Agreement (GMRA), or through a securities sale and Total Return Swap (TRS) continue to be recognised

on the balance sheet as the Group retains substantially the associated risks and rewards of the securities (the TRS is not

recognised). Assets sold under repurchase agreements are considered encumbered as the Group cannot pledge these

to obtain funding.

Reverse repurchase agreements and other similar secured lending

	Group		Company
	2025	2024	2025	2024
	$million	$million	$million	$million
Banks	33,124	30,581	26,876	26,389
Customers	44,250	47,032	41,794	46,216
	77,374	77,613	68,670	72,605
Of which:
Fair value through profit or loss	66,326	65,603	60,950	62,141
Banks	29,426	27,692	26,021	24,966
Customers	36,900	37,911	34,929	37,175
Held at amortised cost	11,048	12,010	7,720	10,464
Banks	3,698	2,889	855	1,423
Customers	7,350	9,121	6,865	9,041

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 154

15. Reverse repurchase and repurchase agreements including other similar lending

andborrowing continued

Under reverse repurchase and securities borrowing arrangements, the Group obtains securities on terms which permit

it to repledge or resell the securities to others. Amounts on such terms are:

	Group		Company
	2025	2024	2025	2024
	$million	$million	$million	$million
Securities and collateral received (at fair value)	79,073	81,108	69,841	75,641
Securities and collateral which can be repledged or sold (at fair value)	76,666	80,860	68,477	75,394
Amounts repledged/transferred to others for financing activities, to satisfy liabilities under sale and repurchase agreements (at fair value)	16,533	27,683	15,988	27,354

Repurchase agreements and other similar secured borrowing

	Group		Company
	2025	2024	2025	2024
	$million	$million	$million	$million
Banks	7,172	8,416	6,527	8,139
Customers	31,674	34,716	31,463	34,586
	38,846	43,132	37,990	42,725
Of which:
Fair value through profit or loss	33,660	33,211	33,162	32,880
Banks	5,754	7,570	5,467	7,369
Customers	27,906	25,641	27,695	25,511
Held at amortised cost	5,186	9,921	4,828	9,845
Banks	1,418	846	1,060	770
Customers	3,768	9,075	3,768	9,075

The tables below set out the financial assets provided as collateral for repurchase and other secured borrowing transactions:

Group

		Fair value
		Fair value through other
	through	comprehensive		Off-balance
	profit or loss	income	Amortised cost	sheet	Total
Collateral pledged against repurchase agreements	$million	$million	$million	$million	$million
On-balance sheet
Debt securities and other eligible bills	4,828	8,493	10,046	–	23,367
Off-balance sheet
Repledged collateral received	–	–	–	16,533	16,533
At 31 December 2025	4,828	8,493	10,046	16,533	39,900
On-balance sheet
Debt securities and other eligible bills	4,297	4,185	7,592	–	16,074
Off-balance sheet
Repledged collateral received	–	–	–	27,683	27,683
At 31 December 2024	4,297	4,185	7,592	27,683	43,757

Company

		Fair value
		Fair value through other
	through	comprehensive		Off-balance
	profit or loss	income	Amortised cost	sheet	Total
Collateral pledged against repurchase agreements	$million	$million	$million	$million	$million
On-balance sheet
Debt securities and other eligible bills	4,665	8,359	9,998	–	23,022
Off-balance sheet
Repledged collateral received	–	–	–	15,988	15,988
At 31 December 2025	4,665	8,359	9,998	15,988	39,010
On-balance sheet
Debt securities and other eligible bills	4,296	4,159	7,542	–	15,997
Off-balance sheet
Repledged collateral received	–	–	–	27,354	27,354
At 31 December 2024	4,296	4,159	7,542	27,354	43,351

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 155

16. Goodwill and intangible assets

Accounting policy

Goodwill

Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill on acquisitions of associates is included

in Investments in associates and joint ventures. Goodwill included in intangible assets is assessed at each balance sheet

date for impairment and carried at cost less any accumulated impairment losses. Gains and losses on the disposal

of an entity include the carrying amount of goodwill relating to the entity sold. Detailed calculations are performed based

on forecasting expected cash flows of the relevant cash generating units (CGUs) and discounting these at an appropriate

discount rate, the determination of which requires the exercise of judgement. Goodwill is allocated to CGUs for the purpose

of impairment testing. CGUs represent the lowest level within the Group which generate separate cash inflows and

at which the goodwill is monitored for internal management purposes. These are equal to or smaller than the Group’s

reportable segments (as set out in Note 2) as the Group views its reportable segments on a global basis. The major

CGUs to which goodwill has been allocated are set out in the CGU table (page 158).

Other accounting estimates and judgements

The carrying amount of goodwill is based on the application of judgements including the basis of goodwill impairment

calculation assumptions. Judgement is also applied in determination of CGUs.

Estimates include forecasts used for determining cash flows for CGUs, the appropriate long-term growth rates to use and

discount rates which factor in country risk-free rates and applicable risk premiums. The Group undertakes an annual assessment

to evaluate whether the carrying value of goodwill is impaired. The estimation of future cash flows and the level to which

they are discounted is inherently uncertain and requires significant judgement and is subject to potential change over time.

Acquired intangibles

At the date of acquisition of a subsidiary or associate, intangible assets which are deemed separable and that arise from

contractual or other legal rights are capitalised and included within the net identifiable assets acquired. These intangible

assets are initially measured at fair value, which reflects market expectations of the probability that the future economic

benefits embodied in the asset will flow to the entity and are amortised on the basis of their expected useful lives (4 to 16

years). At each balance sheet date, these assets are assessed for indicators of impairment. In the event that an asset’s

carrying amount is determined to be greater than its recoverable amount, the asset is written down immediately to the

recoverable amount.

Computer software

Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring to use the

specific software.

Internally generated software represents substantially all of the total software capitalised. Direct costs of the development

of separately identifiable internally generated software are capitalised where it is probable that future economic benefits

attributable to the software will flow from its use. These costs include staff remuneration costs such as salaries, statutory

payments and share-based payments, materials, service providers and contractors provided their time is directly attributable

to the software build. Costs incurred in the ongoing maintenance of software are expensed immediately when incurred.

Internally generated software is amortised over each asset’s useful life to a maximum of 10-years. On an annual basis the

residual values and useful lives of software assets, including software under development are reviewed, including assessing

for indicators of impairment. Indicators of impairment include loss of business relevance, obsolescence, exit of the business

to which the software relates, technological changes, change in use of the asset, reduction in useful life, plans to reduce

usage or scope.

For capitalised software that is internally generated, judgement is required to determine which costs relate to research

(expensed) and which costs relate to development (capitalised). Further judgement is required to determine the technical

feasibility of completing the software such that it will be available for use. Estimates are used to determine how the software

will generate probable future economic benefits: these estimates include cost savings, income increases, balance sheet

improvements, improved functionality or improved asset safeguarding.

Software as a Service (SaaS) and similar cloud service models is a contractual arrangement that conveys the right to receive

access to the supplier’s software application over the contract term. As such, the Group does not have control and as a result

recognises an operating expense for these costs over the contract term. Certain costs, including customisation costs related

to implementation of the SaaS may meet the definition of an intangible asset in their own right if it is separately identifiable

and control is established. These costs are capitalised if it is expected to provide the Group with future economic benefits

flowing from the underlying resource and the Group can restrict others from accessing those benefits.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 156

16. Goodwill and intangible assets continued

Group

		2025				2024
		Acquired	Computer			Acquired	Computer
	Goodwill	intangibles	software	Total	Goodwill	intangibles	software	Total
	$million	$million	$million	$million	$million	$million	$million	$million
Cost
At 1 January	1,292	128	4,480	5,900	1,299	135	4,579	6,013
Exchange translation differences	9	4	211	224	(7)	2	(86)	(91)
Additions	–	–	715	715	–	–	479	479
Impairment	–	–	(72)¹	(72)	–	–	(467) 1,2	(467)
Amounts written off	–	–	–	–	–	(9)	(25)	(34)
At 31 December	1,301	132	5,334	6,767	1,292	128	4,480	5,900
Provision for amortisation
At 1 January	–	122	2,004	2,126	–	115	1,688	1,803
Exchange translation differences	–	4	98	102	–	4	(32)	(28)
Amortisation	–	4	474	478	–	3	455	458
Impairment charge	–	–	(50)¹	(50)	–	–	(84) 1,2	(84)
Amounts written off	–	–	–	–	–	–	(23)	(23)
At 31 December	–	130	2,526	2,656	–	122	2,004	2,126
Net book value	1,301	2	2,808	4,111	1,292	6	2,476	3,774

1 The Group has performed its annual review of computer software intangibles to determine instances when carrying value is greater than its recoverable amount

and impaired $22 million (31 December 2024: $45 million).

2 During 2024, the Group performed a review of its computer software intangibles which were capitalised as at 31 December 2023, and impaired $338 million of the

2024 net book value due to limitations in the available evidence to support the continued capitalisation of the assets.

At 31 December 2025, accumulated goodwill impairment losses incurred from 1 January 2005 amounted to $3,237 million

(31 December 2024: $3,237 million), of which Nil was recognised in 2025 (31 December 2024: Nil).

Company

		2025				2024
		Acquired	Computer			Acquired	Computer
	Goodwill	intangibles	software	Total	Goodwill	intangibles	software	Total
	$million	$million	$million	$million	$million	$million	$million	$million
Cost
At 1 January	72	17	3,399	3,488	72	28	3,568	3,668
Exchange translation differences	–	2	135	137	–	(1)	(75)	(76)
Additions	–	–	521	521	–	–	246	246
Impairment	–	–	(49)¹	(49)	–	–	(327) 1,2	(327)
Amounts written off	–	–	–	–	–	(10)	(13)	(23)
At 31 December	72	19	4,006	4,097	72	17	3,399	3,488
Provision for amortisation
At 1 January	–	16	1,484	1,500	–	17	1,292	1,309
Exchange translation differences	–	2	64	66	–	(1)	(33)	(34)
Amortisation	–	–	319	319	–	–	305	305
Impairment charge	–	–	(33)¹	(33)	–	–	(67) 1,2	(67)
Amounts written off	–	–	–	–	–	–	(13)	(13)
At 31 December	–	18	1,834	1,852	–	16	1,484	1,500
Net book value	72	1	2,172	2,245	72	1	1,915	1,988

1 The Group has performed its annual review of computer software intangibles to determine instances when carrying value is greater than its recoverable amount

and impaired $16 million (31 December 2024: $22 million).

2 During 2024, the Group performed a review of its computer software intangibles which were capitalised as at 31 December 2023, and impaired $238 million of the

2024 net book value due to limitations in the available evidence to support the continued capitalisation of the assets.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 157

16. Goodwill and intangible assets continued

CGU structure

When considering the generation of independent cash inflows and appropriate level of management, Corporate & Investment

Banking and Wealth Management are managed on a global basis, while Retail Banking and others including Treasury Market

activities are managed on a country basis.

Outcome of impairment assessment

An annual assessment is made as to whether the current carrying value of goodwill is impaired. For the purposes of impairment

testing, goodwill is allocated at the date of acquisition to a CGU. Goodwill is considered to be impaired if the carrying amount

of the relevant CGU exceeds its recoverable amount. Indicators of impairment include changes in the economic performance

and outlook of the region including geopolitical changes, changes in market value of regional investments, large credit defaults

and strategic decisions to exit certain regions.

The recoverable amounts for all the CGUs were measured based on value in use (VIU). The calculation of VIU for each CGU

is calculated using five-year cashflow projections and an estimated terminal value based on a perpetuity value after year five.

The cashflow projections are based on forecasts approved by management up to 2030.

The perpetuity terminal value amount is calculated using year five cashflows using long-term GDP growth rates. All cashflows

are discounted using discount rates which reflect market rates appropriate to the CGU.

The goodwill allocated to material CGUs and key assumptions used in determining the recoverable amounts are set out below

and are solely estimates for the purposes of assessing impairment of acquired goodwill.

Group

		2025			2024
			Long-term			Long-term
		Pre Tax	forecast GDP		Pre Tax	forecast GDP
	Goodwill	Discount rates	growth rates	Goodwill	Discount rates	growth rates
Cash generating unit	$million	per cent	per cent	$million	per cent	per cent
Country CGUs
Africa & Middle East	64			65
Pakistan	30	33.9	2.5	31	35.9	3.3
Bahrain	34	16.1	1.0	34	12.4	0.8
Asia	290			278
Singapore	290	13.1	2.0	278	13.0	2.3
Global CGUs	947			949
Wealth Management	83	15.1	1.6	83	15.0	1.8
Corporate & Investment Banking	864	15.5	2.1	866	15.5	2.3
	1,301			1,292

In the current year, there are no CGUs for which reasonably possible changes on key estimates (cashflow, discount rate and

GDP growth) would cause an impairment.

Company

Acquired intangibles primarily comprise those recognised as part of the acquisitions of American Express Bank, Tradewinds,

Australia and New Zealand Project Finance and Grindlays.

Significant items of goodwill arising on acquisitions have been allocated to the following cash generating units for the purposes

of impairment testing:

	2025	2024
	Goodwill	Goodwill
Cash generating unit	$million	$million
Country CGUs
Bahrain	17	17
Global CGUs
Corporate & Investment Banking	55	55
	72	72

In the current year, there are no CGUs for which reasonably possible changes on key estimates (cashflow, discount rate and

GDP growth) would cause an impairment.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 158

17. Property, plant and equipment

Accounting Policy

All property, plant and equipment is stated at cost less accumulated depreciation and impairment losses.

Land and buildings comprise mainly branches and offices. Freehold land is not depreciated although it is subject

to impairment testing.

Depreciation on other assets is calculated using the straight-line method to allocate their cost to their residual values over

their estimated useful lives, as follows:

Owned premises	up to 50 years
Leasehold premises	up to 50 years
Leasehold improvements	shorter of remaining lease term and 10 years
Equipment and motor vehicles	three to 15 years

Where the Group is a lessee of a right-of-use asset, the leased assets are capitalised and included in Property, plant

and equipment with a corresponding liability to the lessor recognised in Other liabilities. The accounting policy for lease

assets is set out in Note 18.

Group

			2025					2024
			Leased	Leased				Leased	Leased
			premises	equipment				premises	equipment
	Premises	Equipment	assets	assets	Total	Premises	Equipment	assets	assets	Total
	$million	$million	$million	$million	$million	$million	$million	$million	$million	$million
Cost or valuation
At 1 January	602	548	991	30	2,171	532	477	900	6	1,915
Exchange translation differences	11	25	30	–	66	5	(7)	(20)	(2)	(24)
Additions	104 1	121 1	159	21	405	91	106	112	27	336
Disposals and fully depreciated
assets written off 2	(14)	(49)	(16)	–	(79)	(17)	(28)	(1)	(1)	(47)
Other movement	(3)	–	–	–	(3)	(9)	–	–	–	(9)
Transfers to assets held for sale	(43)	–	–	–	(43)	–	–	–	–	–
As at 31 December	657	645	1,164	51	2,517	602	548	991	30	2,171
Depreciation
Accumulated at 1 January	218	339	460	10	1,027	198	305	378	4	885
Exchange translation differences	7	24	(1)	–	30	(2)	4	(20)	(2)	(20)
Charge for the year	43	74	110	16	243	29	59	101	9	198
Impairment (release)/charge	–	–	1	–	1	–	–	2	–	2
Attributable to assets sold, transferred or written off 2	(10)	(47)	(15)	–	(72)	(7)	(29)	(1)	(1)	(38)
Transfers to assets held for sale	(15)	–	–	–	(15)	–	–	–	–	–
Accumulated at 31 December	243	390	555	26	1,214	218	339	460	10	1,027
Net book amount at 31 December	414	255	609	25	1,303	384	209	531	20	1,144

1 Refer to the cash flow statement under cash flows from investing activities section for the purchase of property, plant and equipment during the year of $225 million

(31 December 2024: $224 million).

2 In the cash flow statement, disposals of property, plant and equipment of $17 million (31 December 2024: $13 million) would include the gains and losses incurred as

part of other operating income (Note 6) on disposal of assets during the year and the net book value disposed.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 159

17. Property, plant and equipment continued

Company

			2025					2024
			Leased	Leased				Leased	Leased
			premises	equipment				premises	equipment
	Premises	Equipment	assets	assets	Total	Premises	Equipment	assets	assets	Total
	$million	$million	$million	$million	$million	$million	$million	$million	$million	$million
Cost or valuation
At 1 January	249	377	550	28	1,204	200	303	486	1	990
Exchange translation differences	(6)	2	(2)	–	(6)	11	(10)	(8)	–	(7)
Additions	67 1	82 1	33	21	203	58	91	72	27	248
Disposals and fully depreciated
assets written off 2	(1)	(8)	(1)	–	(10)	(11)	(7)	–	–	(18)
Other movement	(3)	–	–	–	(3)	(9)	–	–	–	(9)
Transfers to assets held for sale	(14)	(1)	(1)	–	(16)	–	–	–	–	–
As at 31 December	292	452	579	49	1,372	249	377	550	28	1,204
Depreciation
Accumulated at 1 January	65	214	256	10	545	60	184	224	1	469
Exchange translation differences	–	1	(3)	–	(2)	(1)	(5)	(11)	–	(17)
Charge for the year	16	51	44	16	127	6	41	41	9	97
Impairment (release)/charge	–	–	–	–	–	–	–	2	–	2
Attributable to assets sold, transferred or written off 2	(1)	(7)	(1)	–	(9)	–	(6)	–	–	(6)
Transfers to assets held for sale	(1)	(1)	(1)	–	(3)	–	–	–	–	–
Accumulated at 31 December	79	258	295	26	658	65	214	256	10	545
Net book amount at 31 December	213	194	284	23	714	184	163	294	18	659

1 Refer to the cash flow statement under cash flows from investing activities section for the purchase of property, plant and equipment during the year of $149 million

(31 December 2024: $176 million).

2 In the cash flow statement, disposals of property, plant and equipment of $3 million (31 December 2024: $15 million) would include the gains and losses incurred as

part of other operating income (Note 6) on disposal of assets during the year and the net book value disposed.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 160

18. Leased assets

Accounting policy

Where the Group is a lessee and the lease is deemed in scope of IFRS 16, it recognises a liability equal to the present value

of lease payments over the lease term, discounted using the incremental borrowing rate applicable in the economic

environment of the lease. The liability is recognised in ‘Other liabilities’. A corresponding right-of-use asset equal to the

liability, adjusted for any lease payments made at or before the commencement date, is recognised in ‘Property, plant

and equipment’. The lease term includes any extension options contained in the contract that the Group is reasonably

certain it will exercise.

The Group subsequently depreciates the right-of-use asset using the straight-line method over the lease term

and measures the lease liability using the effective interest method. Depreciation on the asset is recognised

in ‘Depreciation and amortisation’, and interest on the lease liability is recognised in ‘Interest expense’.

If a leased premise, or a physically distinct portion of a premise such as an individual floor, is deemed by management to

be surplus to the Group’s needs and action has been taken to abandon the space before the lease expires, this is considered

an indicator of impairment. An impairment loss is recognised if the right-of-use asset, or portion thereof, has a carrying value

in excess of its value-in-use when taking into account factors such as the ability and likelihood of obtaining a subtenant.

The key judgement in determining lease balances is the determination of the lease term, in particular whether the Group

is reasonably certain that it will exercise extension options present in lease contracts. On initial recognition, the Group

considers a range of characteristics such as premises function, regional trends and the term remaining on the lease to

determine whether it is reasonably certain that a contractual right to extend a lease will be exercised. When there are

changes to assumptions the lease balances are remeasured.

The estimates involved are the determination of incremental borrowing rates in the respective economic environments.

The Group uses third-party broker quotes to estimate its USD cost of senior unsecured borrowing, then uses cross currency

swap pricing information to determine the equivalent cost of borrowing in other currencies. If it is not possible to estimate

an incremental borrowing rate through this process, other proxies such as local government bond yields are used.

The Group primarily enters lease contracts that grant it the right to use premises such as office buildings and retail branches.

Existing lease liabilities may change in future periods due to changes in assumptions or decisions to exercise lease renewal

or termination options, changes in payments due to renegotiations of market rental rates as permitted by those contracts

and changes to payments due to rent being contractually linked to an inflation index. In general the re-measurement of

a lease liability under these circumstances leads to an equal change to the right-of-use asset balance, with no immediate

effect on the income statement.

The total cash outflow during the year for premises and equipment leases was $136 million for Group and $63 million

for Company (31 December 2024: $133 million for Group, $62 million for Company).

The total expense during the year in respect of leases with a term less than or equal to 12 months nil million for Group.

The right-of-use asset balances and depreciation charges are disclosed in Note 17. The lease liability balances

are disclosed in Note 22 and the interest expense on lease liabilities is disclosed in Note 3.
Maturity analysis
The maturity profile for lease liabilities associated with leased premises and equipment assets is as follows:
Other liabilities – lease liabilities
2025	2024

Other liabilities – lease

liabilities

One year

or less

$million

Between one

year and

two years

$million

Between two

years and

five years

$million

More than

five years

$million

Total

$million

One year

or less

$million

Between one

year and

two years

$million

Between two

years and

five years

$million

More than

five years

$million

Total

$million

Group 175 161 332 234 902 135 109 215 327 786

Company 64 46 112 210 432 71 50 101 235 457

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 161

19. Other assets

	Group		Company
	2025	2024	2025	2024
Other assets include:	$million	$million	$million	$million
Financial assets held at amortized cost (Note 12):
Cash collateral 1	10,790	9,181	9,239	8,196
Acceptances and endorsements	5,411	4,149	3,339	2,320
Unsettled trades and other financial assets	4,234	8,205	1,999	7,071
	20,435	21,535	14,577	17,587
Non-financial assets:
Commodities and emissions certificate	17,370 2	6,570 2	8,695 3	3,743 3
Other assets	353	373	296	222
	38,158	28,478	23,568	21,552

1 Cash collateral are margins placed to collateralize net derivative mark-to-market positions.

2 Comprises precious metals and emission certificates, being inventory that is carried at fair value less costs to sell. $11.9 billion is precious metals which are classified

as Level 1, the fair value of which being derived from observable spot or short-term futures prices from relevant exchanges (31 December 2024: $3.8 billion).

$5.5 billion is emissions certificates and other commodity related balances classified as Level 2 (31 December 2024: $2.7 billion).

3 Comprises precious metals and emission certificates, being inventory that is carried at fair value less costs to sell. $5.2 billion is precious metals which are classified

as Level 1, the fair value of which being derived from observable spot or short-term futures prices from relevant exchanges (31 December 2024: $3 billion). $3.5 billion

is emissions certificates and other commodity related balances classified as Level 2 (31 December 2024: $0.7 billion).

20. Assets held for sale and associated liabilities

Accounting Policy

Upon reclassification property, plant and equipment are measured at the lower of their carrying amount and fair value less

costs to sell. Financial instruments continue to be measured per the accounting policies in Note 12 Financial instruments.

The assets below have been presented as held for sale following the approval of Group management and the transactions are

expected to complete in 2026.

Assets held for sale

Group: The financial assets reported below are classified under Level 1 $74 million (31 December 2024: $58 million), Level 2

$45 million (31 December 2024: $335 million) and Level 3 $790 million (31 December 2024: $473 million).

Company: The financial assets reported below are classified under Level 1 $74 million (31 December 2024: nil), Level 2 $15 million

(31 December 2024: nil) and Level 3 $138 million (31 December 2024: $474 million).

	Group		Company
	2025	2024	2025	2024
Assets held for sale	$million	$million	$million	$million
Financial assets held at amortised cost	909	866	227	474
Cash and balances at central banks	–	109
Loans and advances to banks	–	–	–	–
Loans and advances to customers	909	656	227	474
Debt securities held at amortised cost	–	101	–	–
Property, plant and equipment 1	24	8	13	–
Others	24	8	13	–
Others	24	27	–	–
	957	901	240	474

1 Consideration on disposal of Property, plant and equipment classified under assets held for sale was $126 million for Group (31 December 2024: nil).

Liabilities held for sale

Group: The financial liabilities reported below are classified under Level 1 $147 million (31 December 2024: $89 million)

and Level 2 $761 million (31 December 2024: $271 million).

Company: The financial liabilities reported below are classified under Level 1 $147 million (31 December 2024: nil),

Level 2 nil (31 December 2024: nil), Level 3 nil (31 December 2024: nil).

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 162

20. Assets held for sale and associated liabilities continued

	Group		Company
	2025	2024	2025	2024
	$million	$million	$million	$million
Financial liabilities held at amortised cost	908	360	147	–
Deposits by banks	–	–	–	–
Customer accounts	908	360	147	–
Other liabilities	6	16	3	–
Provisions for liabilities and charges	–	5	–	–
	914	381	150	–

Group: The amounts included in the tables above include $741 million of assets and $914 million of liabilities representing the

Botswana, Uganda, Zambia and Sri Lanka WRB businesses transferred to held for sale during the year.

Company: The amounts included in the tables above include $75 million of assets and $150 million of liabilities forming part of

Sri Lanka business transferred to held for sale during the year

21. Debt securities in issue

Accounting policy

Refer to Note 12 Financial instruments for the relevant accounting policy.

Group

		2025			2024
	Certificates of	Other debt		Certificates of	Other debt
	deposit of	securities		deposit of	securities
	$100,000 or more	in issue	Total	$100,000 or more	in issue	Total
	$million	$million	$million	$million	$million	$million
Debt securities in issue	21,277	22,300	43,577	17,606	22,258	39,864
Debt securities in issue included within:
Financial liabilities held at fair value through profit or loss (Note 12)	–	14,787	14,787	–	12,176	12,176
Total debt securities in issue	21,277	37,087	58,364	17,606	34,434	52,040

Company

		2025			2024
	Certificates of	Other debt		Certificates of	Other debt
	deposit of	securities		deposit of	securities
	$100,000 or more	in issue	Total	$100,000 or more	in issue	Total
	$million	$million	$million	$million	$million	$million
Debt securities in issue	21,277	16,572	37,849	17,457	18,624	36,081
Debt securities in issue included within:
Financial liabilities held at fair value through profit or loss (Note 12)	–	16,561	16,561	–	12,062	12,062
Total debt securities in issue	21,277	33,133	54,410	17,457	30,686	48,143

In 2025, the Company issued a total of $176 million senior notes for general business purposes of the Group as shown below:

Securities	$million
CNY 500 million callable fixed rate senior notes due 2030 (callable 2028 and 2029)	70
CNY 400 million callable fixed rate senior notes due 2030 (callable 2028 and 2029)	56
USD 50 million callable fixed rate senior notes due 2030 (callable 2027, 2028 and 2029)	50
Total Senior Notes issued	176

In 2024, the Company issued a total of $2.5 billion senior notes for general business purposes of the Group as shown below:

Securities	$million
USD 1,000 million callable fixed rate senior notes due 2028 (callable 2027)	1,000
USD 1,500 million callable fixed rate senior notes due 2035 (callable 2034)	1,500
Total Senior Notes issued	2,500

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 163

22. Other liabilities

Accounting policy

Refer to Note 12 Financial instruments for the relevant accounting policy for financial liabilities, Note 18 Leased assets for the

accounting policy for leases.

	Group		Company
	2025	2024	2025	2024
	$million	$million	$million	$million
Financial liabilities held at amortized cost (Note 12)
Acceptances and endorsements	5,417	4,149	3,339	2,321
Cash collateral¹	12,912	12,984	12,063	11,788
Property leases	696	603	320	327
Equipment leases	13	14	12	13
Unsettled trades and other financial liabilities	7,268	9,600	3,236	6,675
	26,306	27,350	18,970	21,124
Non-financial liabilities
Other liabilities	507	417	451	362
	26,813	27,767	19,421	21,486

1 Cash collateral are margins received against collateralize net derivative mark-to-market positions.

23. Provisions for liabilities and charges

Accounting policy

The recognition and measurement of provisions for liabilities and charges requires significant judgement and the use

of estimates about uncertain future conditions or events.

Estimates include the best estimate of the probability of outflow of economic resources, cost of settling a provision and

timing of settlement. Judgement is required to assess inherently uncertain areas such as the anticipated outcome and

financial impact of legal claims and regulatory and enforcement investigations and proceedings.

Group

		2025			2024
	Provision for credit			Provision for credit
	commitments 1	Other provisions 2	Total	commitments 1	Other provisions 2	Total
	$million	$million	$million	$million	$million	$million
At 1 January	208	53	261	180	55	235
Exchange translation differences	(4)	–	(4)	10	(3)	7
Charge/(release) against profit	(14)	24	10	18	14	32
Provisions utilised	–	(19)	(19)	–	(25)	(25)
Transfer 3	–	–	–	–	12	12
Other movements	(1)	–	(1)	–	–	–
At 31 December	189	58	247	208	53	261

Company

		2025			2024
	Provision for credit			Provision for credit
	commitments 1	Other provisions 2	Total	commitments 1	Other provisions 2	Total
	$million	$million	$million	$million	$million	$million
At 1 January	148	38	186	132	39	171
Exchange translation differences	(2)	(1)	(3)	(2)	(1)	(3)
Charge/(release) against profit	7	9	16	18	(5)	13
Provisions utilised	–	(8)	(8)	–	(2)	(2)
Transfer 3	–	–	–	–	7	7
At 31 December	153	38	191	148	38	186

1 Expected credit loss for credit commitment comprises those undrawn contractually committed facilities where there is doubt as to the borrowers’ ability to meet

their repayment obligations.

2 Other provisions consist mainly of provisions for legal claims and regulatory and enforcement investigations and proceedings.

3 Includes the provisions transferred to held for sale.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 164

24. Contingent liabilities and commitments

Accounting policy

Financial guarantee contracts and loan commitments

Financial guarantee contracts and any loan commitments issued at below-market interest rates are initially recognised at

their fair value as a financial liability, and subsequently measured at the higher of the initial value less the cumulative amount

of income recognised and their expected credit loss provision. Loan commitments may be designated at fair value through

profit or loss where that is the business model under which such contracts are held. Notional values of financial guarantee

contracts and loan commitments are disclosed in the table below.

Financial guarantees, trade credits and irrevocable letters of credit are the notional values of contracts issued by the Group’s

Transaction Banking business for which an obligation to make a payment has not arisen at the reporting date. Transaction

Banking will issue contracts to clients and counterparties of clients, whereby in the event the holder of the contract is not

paid, the Group will reimburse the holder of the contract for the actual financial loss suffered. These contracts have various

legal forms such as letters of credit, guarantee contracts and performance bonds. The contracts are issued to facilitate trade

through export and import business, provide guarantees to financial institutions where the Group has a local presence,

as well as guaranteeing project financing involving large construction projects undertaken by sovereigns and corporates.

The contracts may contain performance clauses which require the counterparty performing services or providing goods to

meet certain conditions before a right to payment is achieved, however the Group does not guarantee this performance.

The Group will only guarantee the credit of the counterparty paying for the services or goods.

Commitments are where the Group has confirmed its intention to provide funds to a customer or on behalf of a customer

under prespecified terms and conditions in the form of loans, overdrafts, future guarantees whether cancellable or not and

the Group has not made payments at the balance sheet date; those instruments are included in these financial statements

as commitments. Some of these commitments are generally considered on demand as the Group may have to honour them,

or the client may draw down at any time.

Capital commitments are contractual commitments the Group has entered into to purchase non-financial assets.

The table below shows the contract or underlying principal amounts of unmatured off-balance sheet transactions at the

balance sheet date. The contract or underlying principal amounts indicate the volume of business outstanding and do not

represent amounts at risk.

	Group		Company
	2025	2024	2025	2024
	$million	$million	$million	$million
Financial guarantees and trade credits
Financial guarantees, trade and irrevocable letters of credit	104,930	81,343	91,342	69,038
	104,930	81,343	91,342	69,038
Commitments
Undrawn formal standby facilities, credit lines and other commitments to lend
One year and over	72,212	60,968	52,248	45,406
Less than one year	24,047	20,396	19,917	17,079
Unconditionally cancellable	47,664	42,567	7,841	6,808
	143,923	123,931	80,006	69,293

	Group		Company
	2025	2024	2025	2024
Capital commitments	$million	$million	$million	$million
Contracted capital expenditure approved by the directors
but not provided for in these accounts	46	121	13	–

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 165

24. Contingent liabilities and commitments continued

The table below shows the contract or underlying principal amounts and risk-weighted amounts of unmatured Group

off-balance sheet transactions at the balance sheet date. The contract or underlying principal amounts indicate the

volume of business outstanding and do not represent amounts at risk.

	Group		Company
	2025	2024	2025	2024
	$million	$million	$million	$million
Financial guarantees and other contingent liabilities (Group)
Financial guarantees, trade and irrevocable letters of credit	5,009	3,771	11,188	11,790
Other contingent liabilities	–	–	–	–
	5,009	3,771	11,188	11,790
Commitments (Group)
Undrawn commitments	85	1,243	189	1,613
	85	1,243	189	1,613

As set out in Note 25, the Group has contingent liabilities in respect of certain legal and regulatory matters.

25. Legal and regulatory matters

Accounting policy

Where appropriate, the Group recognises a provision for liabilities when it is probable that an outflow of economic

resources embodying economic benefits will be required, and for which a reliable estimate can be made of the obligation.

The uncertainties inherent in legal and regulatory matters affect the amount and timing of any potential outflows with

respect to which provisions have been established. These uncertainties also mean that it is not possible to give an aggregate

estimate of contingent liabilities arising from such legal and regulatory matters.

The Group receives legal claims against it in a number of jurisdictions and is subject to regulatory and enforcement

investigations and proceedings from time to time. Apart from the matters described below, the Group currently considers none

of the ongoing claims, investigations or proceedings to be individually material. However, in light of the uncertainties involved

in such matters there can be no assurance that the outcome of a particular matter or matters currently not considered to be

material may not ultimately be material to the Group’s results in a particular reporting period depending on, among other

things, the amount of the loss resulting from the matter(s) and the results otherwise reported for such period.

Since 2014, the PLC Group has been named as a defendant in a series of lawsuits filed in the United States District Courts for

the Southern and Eastern Districts of New York against a number of banks on behalf of plaintiffs who are, or are relatives of,

victims of attacks in Iraq, Afghanistan and Israel. The plaintiffs in each of these lawsuits allege that the defendant banks aided

and abetted the unlawful conduct of parties with connections to terrorist organisations in breach of the United States Anti-

Terrorism Act. None of the lawsuits specify the amount of damages claimed. The PLC Group continues to defend these lawsuits.

In January 2020, a shareholder derivative complaint was filed by the City of Philadelphia in New York State Court against

45 current and former directors and senior officers of the PLC Group. It is alleged that the individuals breached their duties

to the PLC Group and caused a waste of corporate assets by permitting the conduct that gave rise to the costs and losses

to the PLC Group related to legacy conduct and control issues. In February 2022, the New York State Court ruled in favour

of Standard Chartered PLC’s motion to dismiss the complaint. The plaintiffs are pursuing an appeal against the February 2022

ruling. A ruling on the plaintiffs’ appeal is awaited.

Bernard Madoff’s 2008 confession to running a Ponzi scheme through Bernard L. Madoff Investment Securities LLC (BMIS)

gave rise to a number of lawsuits against the PLC Group. BMIS and the Fairfield funds (which invested in BMIS) are in

bankruptcy and liquidation, respectively. Between 2010 and 2012, five lawsuits were brought against the PLC Group by the

BMIS bankruptcy trustee and the Fairfield funds’ liquidators, in each case seeking to recover funds paid to the PLC Group’s

clients pursuant to redemption requests made prior to BMIS’ bankruptcy filing. The total amount sought in these cases exceeds

U.S.$300 million, excluding any pre-judgment interest that may be awarded. Three of the four lawsuits commenced by the

Fairfield funds’ liquidators have been dismissed and those dismissals were upheld by the appeal court. The fourth lawsuit has

been dismissed and is not the subject of any further appeal. The PLC Group continues to defend the lawsuit brought by the

BMIS bankruptcy trustee.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 166

25. Legal and regulatory matters continued

In June 2025, a lawsuit was filed in the Singapore High Court against Standard Chartered Bank (Singapore) Limited

(“Standard Chartered Singapore”), by three companies now in liquidation that had misappropriated funds from 1Malaysia

Development Berhad (1MDB), seeking U.S.$2.7billion. The companies allege, among other things, that Standard Chartered

Singapore knew or ought to have known that these companies were engaged in the fraud on 1MDB at the time that Standard

Chartered Singapore effected transfers instructed by these companies. The companies allege that in doing so, Standard

Chartered Singapore breached its mandate and applicable duties. Standard Chartered Singapore had reported the transaction

activities of these companies before it closed their accounts in early 2013. Standard Chartered Singapore denies any and all

liability and will defend this lawsuit.

The Group is defending a lawsuit filed in the courts of Victoria, Australia, against a number of financial institutions by two

companies in liquidation, Jabiru Satellite Limited and NewSat Limited. The claimants allege that the defendants breached

implied obligations under 2013 loan agreements and acted unconscionably by declining to waive breaches and events of

default and by refusing to continue funding their satellite project, ultimately resulting in the claimants entering receivership.

The claimants have asserted loss and damage of up to U.S.$4.81 billion from the defendants. In addition to having denied any

and all liability, the defendants will contest the claimants’ alleged losses, which the Group considers to be baseless. The trial of

this claim is due to start in Q2 2026.

The Group has concluded that the threshold for recording provisions pursuant to IAS 37 Provisions, Contingent Liabilities

and Contingent Assets is not met with respect to the above matters; however, the outcomes of these matters are inherently

uncertain and difficult to predict.

26. Subordinated liabilities and other borrowed funds

Accounting policy

Refer to Note 12 Financial instruments for the relevant accounting policy.

	2025	2024
	$million	$million
Subordinated loan capital – issued by subsidiary undertakings
NPR2.4 billion 10.3 per cent fixed rate subordinated notes due 2028 2	17	18
$540 million floating rate subordinated notes due 2030 (callable 2025) 1	–	540
	17	558
Subordinated loan capital – issued by the Company
$700 million 8.0 per cent subordinated notes due 2031	330	326
$500 million 4.96 per cent fixed rate subordinated notes due 2043	500	410
$2 billion 4.57 per cent fixed rate subordinated notes due 2044 (callable 2039)	1,903	1,849
$250 million 4.82 per cent fixed rate subordinated notes due 2048 (callable 2043)	186	250
$1.25 billion floating rate subordinated notes due 2032 (callable 2027)	1,250	1,250
$1 billion 3.516 per cent fixed rate reset subordinated debt due 2030 (callable 2025)	–	996
£504 million 6.1368 per cent fixed rate subordinated notes due 2043 (callable 2038)	673	624
$2 billion 5.3 per cent fixed rate reset subordinated notes due 2035 (callable 2030)	1,857	1,782
£527 million floating rate subordinated notes due 2039 (callable 2034)	709	660
€1 billion 2.5 per cent fixed rate reset subordinated notes due 2030 (callable 2025)	–	1,020
$750 million 3.603 per cent fixed rate reset subordinated notes due 2033 (callable 2032)	750	634
	8,158	9,801
Total for Group	8,175	10,359

1 Issued by Standard Chartered Bank Singapore Limited.

2 Issued by Standard Chartered Bank Nepal Limited. NPR refers to Nepalese Rupee.

	USD	GBP	EUR	NPR	Total
2025	6,776	1,382	–	17	8,175
2024	8,037	1,284	1,020	18	10,359

Redemptions and repurchases during the year

Standard Chartered Bank exercised its right to redeem $1 billion 3.516 per cent subordinated notes 2025, $540 million floating

rate subordinated notes 2025 and €1 billion 2.5 per cent subordinated notes 2025.

Issuances during the year

There were no issuances during the year.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 167

27. Share capital, other equity instruments and reserves

Accounting policy

Securities which carry a discretionary coupon and have no fixed maturity or redemption date are classified as other equity

instruments. Interest payments on these securities are recognised, net of tax, as distributions from equity in the period in

which they are paid.

Where the Company or other members of the consolidated Group purchase the Company’s equity share capital, the

consideration paid is deducted from the total shareholders’ equity of the Group and/or of the Company as treasury shares

until they are cancelled. Where such shares are subsequently sold or reissued, any consideration received is included in

shareholders’ equity of the Group and/or the Company.

Group and Company

				Preference share	Total share capital
	Number of	Ordinary	Ordinary share	capital and share	and share	Other equity
	ordinary shares	share capital 1	premium	premium 2	premium	instruments
	millions	$million	$million	$million	$million	$million
At 1 January 2024	20,597	20,597	296	750	21,643	4,742
Additional Tier 1 equity issuance	–	–	–	–	–	980
At 31 December 2024	20,597	20,597	296	750	21,643	5,722
Additional Tier 1 equity issuance	–	–	–	–	–	–
At 31 December 2025	20,597	20,597	296	750	21,643	5,722

1 Issued and fully paid ordinary shares of $1 each.

2 Includes preference share capital of $61,500.

Ordinary share capital

The authorised share capital of the Company at 31 December 2025 was $26,789 million and TWD 1,225 million (31 December

2024: $26,789 million and TWD 1,225 million) made up of 26,782 million ordinary shares of $1 each, 2.4 million non-cumulative

irredeemable preference shares of $0.01 each, 1 million non-cumulative preference shares of $5 each, 15,000 non-cumulative

redeemable preference shares of $5 each, 462,500 non-cumulative redeemable 8.125% preference shares of $5 each and

50 million non-cumulative redeemable preference shares of TWD24.50 each.

The issued share capital of the Company at 31 December 2025 was $20,597 million (31 December 2024: $20,597 million) made

up of: 20,597 million ordinary shares of $1 each.

There was no new issue of shares during the year. The Company has one class of ordinary shares, which carries no rights to fixed

income. Subject to any special rights or restrictions as to voting attached to any shares in accordance with the Company’s Royal

Charter Bye-Laws and Rules, on a show of hands every member present at a general meeting by a representative or proxy shall

have one vote. On a poll, every member holding shares or stock of less than the nominal amount of $25 shall not have any vote,

but every other member who is present in person or by proxy shall have votes in accordance with the following scale:

Nominal amount of Shares or Stock held	Nominal amount of Shares or Stock held
$25 or more but less than $50	1 vote
$50 or more but less than $100	2 votes
$100 or more but less than $250	3 votes
$250 or more but less than $375	4 votes
$375 or more but less than $500	5 votes
$500 or more but less than $750	6 votes
$750 or more but less than $1,000	7 votes
$1,000 or more but less than $1,250	8 votes
$1,250 or more but less than $1,500	9 votes
$1,500 or more	10 votes

Preference share capital

7,500 non-cumulative redeemable preference shares issued on 8 December 2006 with a nominal value of $5 each and a

premium of $99,995, making a paid-up amount per preference share of $100,000. The preference shares are redeemable at the

option of the company in whole or in part on 31 Jan 2027 and on any quarterly dividend payment date falling on or around

ten-year intervals thereafter. The amount payable on redemption will be the paid-up amount of $100,000 per preference share

to be redeemed, plus an amount equal to the accrued but unpaid dividend thereon up to but excluding the redemption date.

2.4 million non-cumulative irredeemable preference shares of $0.01 each.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 168

27. Share capital, other equity instruments and reserves continued

Other equity instruments

The table provides details of outstanding Fixed Rate Resetting Perpetual Subordinated Contingent Convertible AT1 securities

issued by Standard Chartered Bank. All issuances are made for general business purposes and to increase the regulatory capital

base of the Group.

	Nominal value	Proceeds net of issue costs	Interest rate 1
Issuance date	million	$million	%	Coupon payment dates 2	First reset dates 3
02 June 2021	USD 1,250	1,250	4.75	14 January, 14 July each year	14 July 2031
23 August 2021	USD 1,500	1,500	4.30	19 February, 19 August each year	19 February 2029
15 August 2022	USD 1,000	1,000	7.75	15 February, 15 August each year	15 February 2028
31 March 2023	USD 750	750	7.75	30 January, 30 July each year	30 July 2037
31 March 2023	GBP 96	120	7.90	4 April, 4 October each year	4 April 2028
31 March 2023	GBP 99	122	7.90	4 April, 4 October each year	4 April 2028
27 March 2024	USD 400	400	7.875	8 March, 8 September each year	8 September 2030
19 September 2024	SGD 750	580	5.30	19 March, 19 September each year	19 March 2030
	Total	5,722

1 Interest rates for the period from (and including) the issue date to (but excluding) the first reset date.

2 Interest payable semi-annually in arrears.

3 Securities are resettable each date falling five years, or an integral multiple of five years, after the first reset date.

The principal terms of the AT1 securities are described below:

• The securities are perpetual and redeemable, at the option of the Company in whole but not in part, on the first call date or

on any fifth anniversary after the first call date

• The securities are also redeemable for certain regulatory or tax reasons on any date at 100 per cent of their principal amount

together with any accrued but unpaid interest up to (but excluding) the date fixed for redemption. Any redemption is subject

to the Company giving notice to the relevant regulator and the regulator granting permission to redeem

• Interest payments on these securities will be accounted for as a dividend

• Interest on the securities is due and payable only at the sole and absolute discretion of the Company, subject to certain

additional restrictions set out in the terms and conditions. Accordingly, the Company may at any time elect to cancel any

interest payment (or part thereof) which would otherwise be payable on any interest payment date

• The securities will be written down in full should the fully loaded Common Equity Tier 1 ratio of the issuer fall below 7.0 per

cent (a Loss Absorption Event)

The securities rank behind the claims against the Company of: (a) unsubordinated creditors; (b) claims which are expressed to

be subordinated to the claims of unsubordinated creditors of the Company but not further or otherwise; or (c) claims which are,

or are expressed to be, junior to the claims of other creditors of the Company, whether subordinated or unsubordinated, other

than claims which rank, or are expressed to rank, pari passu with, or junior to, the claims of holders of the AT1 securities in a

winding-up occurring prior to the Loss Absorption Event.

Reserves

The constituents of the reserves are summarised as follows:

The capital reserve represents the exchange difference on redenomination of share capital and share premium from sterling

to US dollars in 2001. The capital redemption reserve represents the nominal value of preference shares redeemed.

• Own credit adjustment reserve represents the cumulative gains and losses on financial liabilities designated at fair value

through profit or loss relating to own credit. Gains and losses on financial liabilities designated at fair value through profit

or loss relating to own credit in the year have been taken through other comprehensive income into this reserve.

On derecognition of applicable instruments, the balance of any OCA will not be recycled to the income statement, but

will be transferred within equity to retained earnings

• Fair value through other comprehensive income (FVOCI) debt reserve represents the unrealised fair value gains and losses

in respect of financial assets classified as FVOCI, net of expected credit losses. Gains and losses are deferred in this reserve

and are reclassified to the income statement when the underlying asset is sold, matures or becomes impaired

• FVOCI equity reserve represents unrealised fair value gains and losses in respect of financial assets classified as FVOCI.

Gains and losses are recorded in this reserve and never recycled to the income statement

• Cash flow hedge reserve represents the effective portion of the gains and losses on derivatives that meet the criteria for

these types of hedges. Gains and losses are deferred in this reserve and are reclassified to the income statement when the

underlying hedged item affects profit and loss or when a forecast transaction is no longer expected to occur

• Translation reserve represents the cumulative foreign exchange gains and losses on translation of the net investment of the

Group in foreign operations. Since 1 January 2004, gains and losses are deferred to this reserve and are reclassified to the

income statement when the underlying foreign operation is disposed. Gains and losses arising from derivatives used as

hedges of net investments are netted against the foreign exchange gains and losses on translation of the net investment

of the foreign operations

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 169

27. Share capital, other equity instruments and reserves continued

• Retained earnings represents profits and other comprehensive income earned by the Group and Company in the current and

prior periods, together with the after tax increase relating to equity-settled share options, less dividend distributions and own

shares held (treasury shares)

A substantial part of the Group’s reserves is held in overseas subsidiary undertakings and branches, principally to support local

operations or to comply with local regulations. The maintenance of local regulatory capital ratios could potentially restrict the

amount of reserves which can be remitted. In addition, if these overseas reserves were to be remitted, further unprovided

taxation liabilities might arise.

As at 31 December 2025, the distributable reserves of Standard Chartered Bank (the Company) were $2.6 billion (31 December

2024: $2.2 billion). Distributable reserves of the Company were $2.6 billion, which include the distributable portions of retained

earnings. Distributable reserves are calculated from Retained earnings, reduced by ordinary dividend payments, distributions on

additional tier 1 instruments, impairments in investments in subsidiaries, restricted items in line with section 830 and 831 of the

Companies Act 2006, and the local statutory restrictions of foreign branches which are reasonably expected to be enforced.

They are increased by profits and the realisation of retained earnings.

28. Non-controlling interests

Accounting policy

Non-controlling interests are measured at the non-controlling interest’s proportionate share of the acquiree’s identifiable

net assets.

	2025	2024
	$million	$million
At 1 January	464	1,080
Comprehensive income for the year	66	22
Profit/(loss) in equity attributable to non-controlling interests	32	(17)
Other profits attributable to non-controlling interests	34	39
Distributions	(98)	(125)
Others 1	162	(513)
At 31 December	594	464

1 Movements in 2025 are primarily from non-controlling interest pertaining to Standard Chartered Bank Singapore Limited $154 million and Trust Bank Singapore

Limited $8 million. Net cash flow from non-controlling interest is $8 million (2024: $506 million). Movements in 2024 are primarily from non-controlling interest

pertaining to Standard Chartered Bank Singapore Limited $562 million pertaining to redemption of preference shares and Standard Chartered Bank Angola S.A.

$6 million offset by Trust Bank Singapore Limited ($55 million).

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 170

29. Retirement benefit obligations

Accounting policy

The Group operates pension and other post-retirement benefit plans around the world, which can be categorised into

defined contribution plans and defined benefit plans.

• For defined contribution plans, the Group pays contributions to publicly or privately administered pension plans

on a statutory or contractual basis, and such amounts are charged to operating expenses. The Group has no further

payment obligations once the contributions have been paid.

• For defined benefit plans, which promise levels of payments where the future cost is not known with certainty:

– The accounting obligation is calculated annually by independent actuaries using the projected unit method.

– Actuarial gains and losses that arise are recognised in shareholders’ equity and presented in the statement

of other comprehensive income in the period they arise.

– The Group determines the net interest expense on the net defined benefit liability for the year by applying the discount

rate used to measure the defined benefit obligation at the beginning of the annual period to the net defined benefit

liability, taking into account any changes in the net defined benefit liability during the year as a result of contributions

and benefit payments. Net interest expense, the cost of the accrual of new benefits, benefit enhancements

(or reductions) and administration expenses met directly from plan assets are recognised in the income statement

in the period in which they were incurred.

Other accounting estimates and judgements

There are many factors that affect the measurement of the retirement benefit obligations. This measurement requires

the use of estimates, such as discount rates, inflation, pension increases, salary increases, and life expectancies which are

inherently uncertain. The table below summarises how these assumptions are set:

Assumption	Detail
Discount rate	Determined by reference to market yields at the end of the reporting period on high-quality corporate bonds
	(or,incountries where there is no deep market in such bonds, government bonds) of a currency and term
	consistent with the currency and term of the post-employment benefit obligations. This is the approach
	adopted across all our geographies.
Inflation	Where there are inflation-linked bonds available (e.g. United Kingdom and the eurozone), the Group
	derives inflation based on the market on those bonds, with the market yield adjusted in respect of the United
	Kingdom to take account of the fact that liabilities are linked to Consumer Price Index inflation, whereas the
	reference bonds are linked to Retail Price Index inflation. Where no inflation-linked bonds exist, we determine
	inflation assumptions based on a combination of long-term forecasts and short-term inflation data.
Salary growth	Salary growth assumptions reflect the Group’s long-term expectations, taking into account future business
	plans and macroeconomic data (primarily expected future long-term inflation).
Demographic	Demographic assumptions, including mortality and turnover rates, are typically set based on the assumptions
assumptions	used in the most recent actuarial funding valuation, and will generally use industry standard tables, adjusted
	where appropriate to reflect recent historic experience and/or future expectations .

The sensitivity of the liabilities to changes in these assumptions is shown in the Note below.

Group

Retirement benefit obligations comprise:

	Obligation		Charge¹
	2025	2024	2025	2024
	$million	$million	$million	$million
Defined benefit plans obligation	186	118	102	37
Defined contribution plans obligation	22	13	290	295
Total	208	131	392¹	332¹

1 Refer note 7 – Operating expenses.

The Group operates over 50 defined benefit plans across its geographies, many of which are closed to new entrants who now

join defined contribution arrangements. The aim of all these plans is, as part of the Group’s commitment to financial wellbeing

for employees, to give employees the opportunity to save appropriately for retirement in a way that is consistent with local

regulations, taxation requirements and market conditions. The defined benefit plans expose the Group to currency risk, interest

rate risk, investment risk and actuarial risks such as longevity risk.

The disclosures required under IAS 19 have been calculated by independent qualified actuaries based on the most recent full

actuarial valuations updated, where necessary, to 31 December 2025.

Financial and demographic assumptions have remained largely consistent with those used in the prior year. And the impact on

the liabilities of any movements in interest and inflation rates has been partially hedged by the government and corporate

bonds held.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 171

29. Retirement benefit obligations continued

The increase in the pension deficit during the year was primarily driven by regulatory and legal developments in India (causing

a past service cost of $48 million) and Kenya ($19 million). In India, a past service cost has been recognised in relation to

statutory lump sum plans, based on the current interpretation of new regulations that expand the definition of pay on which

they are calculated. The new regulations were substantively enacted on 21 November and applied both immediately and

retrospectively; further clarification from the local authorities is expected in 2026. In Kenya, the Retirement Benefits Appeals

Tribunal (RBAT) ruled broadly in favour of a longstanding legal case brought by 629 former employees. A past service cost

reflects the financial impact of this judgment, which included a mandate to fund the plan. Where legacy colleagues have yet

to be traced, the temporary surplus arising from the mandated funding has been disregarded under IFRIC14.

UK Fund

The Standard Chartered Pension Fund (the ‘UK Fund’) is the Bank Group’s largest pension plan, representing 55 per cent

(31 December 2024: 56 per cent) of total pension liabilities. The UK Fund is set up under a trust that is legally separate from the

Bank (its formal sponsor) and, as required by UK legislation, at least one-third of the trustee directors are nominated by

members; the remainder are appointed by the Bank. The trustee directors have a fiduciary duty to members and are responsible

for governing the UK Fund in accordance with its Trust Deed and Rules.

The UK Fund was closed to new entrants from 1 July 1998 and closed to the accrual of new benefits from 1 April 2018: All UK

employees are now offered membership of a defined contribution plan.

The financial position of the UK Fund is regularly assessed by an independent qualified actuary. The funding valuation as at

31 December 2023 was completed in December 2024 by the Scheme Actuary, T Kripps of Willis Towers Watson, using

assumptions different from those used for IAS19, and agreed with the UK Fund trustee. It showed that the UK Fund was 96%

funded at that date, revealing a past service deficit of $48 million (£38 million).

To repair the deficit, three annual cash payments each of $13 million (£10 million) were agreed, with the first of these paid in

December 2024, and two further instalments to be paid in December 2025 and December 2026. However, the agreement

allowed that the payments due in 2025 and 2026 may be varied depending on the funding position at the preceding 30 June

provided that total payments over the three year recovery plan period do not exceed $38 million (£30 million). Based on

financial conditions at 30 June 2025, the Scheme Actuary determined that the 2025 payment should be $7 million (£5 million),

and this was remitted to the Fund in December. As part of the 2023 valuation agreement, it was agreed that gilts with a

nominal value of $200 million (£160 million) would remain in escrow to provide additional security the Trustee.

The Group has not recognised any additional liability under IFRIC 14, as the Bank has control of any pension surplus under the

Trust Deed and Rules.

Overseas plans

The principal overseas defined benefit arrangements operated by the Bank Group are in Germany, India, Jersey, United Arab

Emirates (UAE) and the United States of America (US). Plans in Germany, India, Thailand and UAE remain open for accrual

of future benefits.

Key assumptions

The principal financial assumptions used at 31 December 2025 were:

		2025			2024
	UK Fund	Overseas Plans 1	Unfunded Plans 2	UK Funded	Overseas Plans 1	Unfunded Plans 2
	%	%	%	%	%	%
Discount rate	5.5	5.5 – 6.7	1.4 – 6.7	5.5	3.4 – 6.9	2.5 – 6.9
Price inflation	2.4	2.0 – 5.0	2.0 – 5.0	2.5	2.0 – 5.0	2.0 – 5.0
Salary increases	n/a	3.5 – 7.5	2.4 – 7.5	n/a	3.5 – 8.5	4.0 – 8.5
Pension increases	2.4	0.0 – 2.8	0.0 – 2.4	2.3	0.0 – 2.9	0.0 – 2.3
Post-retirement medical rate	n/a	n/a	8% in 2025	n/a	n/a	8% in 2024
			reducing by			reducing by
			0.5% per			0.5% per
			annum to 5%			annum to 5%
			in 2031			in 2030

1 The range of assumptions shown is for the main funded defined benefit overseas plans in India, Jersey, and the US. These comprise around 75 per cent of the total

liabilities of funded overseas defined benefit plans.

2 The range of assumptions shown is for the main unfunded plans in, India, Thailand, UAE, UK and the US. They comprise around 80 per cent of the total liabilities of

unfunded plans.

The principal non-financial assumptions are those made for UK life expectancy. The UK mortality tables are S4PMA for males

and S4PFA for females, projected by year of birth with the CMI 2024 improvement model with a 1.25 per cent annual trend and

initial addition parameter of 0.25 per cent. Scaling factors of 81 per cent for male pensioners, 93 per cent for female pensioners,

81 per cent for male dependants and 81 per cent for female dependants have been applied.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 172

29. Retirement benefit obligations continued

The resulting assumptions for life expectancy for the UK Fund are that a male member currently aged 60 will live for 28 years

(2024: 28 years) and a female member for 29 years (2024: 29 years) and a male member currently aged 40 will live for 29 years

(2024: 29 years) and a female member for 31 years (2024: 31 years) after their 60

birthdays.

Both financial and non-financial assumptions can be expected to change in the future, which would affect the value placed

on the liabilities. For example, changes at the reporting date to one of the relevant actuarial assumptions, holding other

assumptions constant, would have affected the defined benefit obligation by the amounts shown below:

• If the discount rate increased by 25 basis points, the liability would reduce by approximately $25 million for the UK Fund

(31 December 2024: $25 million) and $15 million for the other plans (31 December 2024: $15 million)

• If the rate of inflation increased by 25 basis points, the liability allowing for the consequent impact on pension and salary

increases, would increase by approximately $15 million for the UK Fund (31 December 2024: $15 million) and $5 million for the

other plans (31 December 2024: $10 million)

• If the rate of salary growth relative to inflation increased by 25 basis points, the liability would increase by nil for the UK Fund

(31 December 2024: nil) and approximately $5 million for the other plans (31 December 2024: $5 million)

• If longevity expectations increased by one year, the liability would increase by approximately $40 million for the UK Fund

(31 December 2024: $35 million) and $10 million for the other plans (31 December 2024: $10 million)

Although this analysis does not take account of the full distribution of cash flows expected under the UK Fund, it does provide

an approximation of the sensitivity to the main assumptions. While changes in other assumptions would also have an impact,

the effect would not be as significant.

Profile of plan obligations

	Funded plans		Unfunded
	UK Fund	Overseas	plans
Duration of the defined benefit obligation (in years)	10	8	8
Duration of the defined benefit obligation – 2024	10	8	8
Benefits expected to be paid from plans
Benefits expected to be paid during 2026	89	73	20
Benefits expected to be paid during 2027	92	61	18
Benefits expected to be paid during 2028	94	63	17
Benefits expected to be paid during 2029	96	68	16
Benefits expected to be paid during 2030	99	71	18
Benefits expected to be paid during 2031 to 2035	529	402	87

Fund values:

The fair value of assets and present value of liabilities of the defined benefit plans were:

			2025						2024
		UK Fund			Overseas plans			UK Fund			Overseas plans
	Quoted	Unquoted	Total	Quoted	Unquoted	Total	Quoted	Unquoted	Total	Quoted	Unquoted	Total
	assets	assets	assets	assets	assets	assets	assets	assets	assets	assets	assets	assets
	$million	$million	$million	$million	$million	$million	$million	$million	$million	$million	$million	$million
At 31 December
Equities	2	–	2	50	–	50	2	–	2	43	–	43
Government bonds	332	–	332	243	–	243	342	–	342	204	–	204
Corporate bonds	411	134	545	225	–	225	357	126	483	253	–	253
Hedge funds	–	4	4	2	–	2	–	5	5	–	–	–
Infrastructure	–	191	191	–	–	–	–	170	170	–	–	–
Property	–	80	80	–	18	18	–	81	81	–	16	16
Derivatives	2	(2)	–	–	–	–	22	(1)	21	–	–	–
Cash and equivalents	38	–	38	132	–	132	35	–	35	29	–	29
Others	9	–	9	6	–	6	7	2	9	–	88	88
Total fair value
of assets 1	794	407	1,201	658	18	676	765	383	1,148	529	104	633

1 Self-investment is monitored closely and is less than $1 million of Standard Chartered equities and bonds for 2025 (2024: <$1 million). Self-investment is only

allowed where it is not practical to exclude it – for example through investment in index-tracking funds where the Standard Chartered Group is a constituent of the

relevant index.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 173

29. Retirement benefit obligations continued

		2025			2024
		Funded plans			Funded plans
		Overseas	Unfunded		Overseas	Unfunded
	UK Fund	Plans	Plans	UK Fund	Plans	Plans
	$million	$million	$million	$million	$million	$million
Total fair value of assets	1,201	672 1	n/a	1,148	633	n/a
Present value of liabilities	(1,133)	(749)	(177)	(1,070)	(655)	(174)
Net pension plan asset/(obligation)	68	(77)	(177)	78	(22)	(174)
Of which: Total pension assets in respect of plans in surplus	68	36	–	78	41	–
Of which: Total pension obligations in respect of plans in deficit	–	(113)	(177)	–	(63)	(174)

1 Overseas plan assets include an asset ceiling in Kenya and a legacy Zimbabwe arrangement, resulting from a restriction on the recognition of surplus.

The pension cost for defined benefit plans was:

		2025				2024
		Funded plans				Funded plans
		Overseas				Overseas
	UK Fund	plans	Other	Total	UK Fund	plans	Other	Total
	$million	$million	$million	$million	$million	$million	$million	$million
Current service cost 1	–	26	5	31	–	19	7	26
Past service cost and curtailments 2	–	67	–	67	–	2	(1)	1
Settlement cost 3	–	1	–	1	–	3	–	3
Interest income on pension plan assets	(65)	(47)	–	(112)	(56)	(26)	–	(82)
Interest on pension plan liabilities	60	46	9	115	54	27	8	89
Total charge to profit before deduction
of tax	(5)	93	14	102	(2)	25	14	37
Net (gain)/losses on plan assets 4	18	(3)	–	15	78	(3)	–	75
(Gains)/losses on liabilities	10	17	(1)	26	(103)	3	(1)	(101)
Total (gains)/losses recognised directly
in statement of comprehensive income
before tax	28	14	(1)	41	(25)	–	(1)	(26)
Deferred taxation	(2)	(8)	–	(10)	5	3	–	8
Total (gains)/losses after tax	26	6	(1)	31	(20)	3	(1)	(18)

1 Includes administrative expenses paid out of plan assets of $1 million (2024: $1 million) and actuarial losses of $1 million (31 December 2024: $1 million) that are

immediately recognised through P&L in line with the requirements of IAS 19.

2 Relates to provisional impact of regulatory change in India and RBAT court ruling in Kenya.

3 Impact of settlements relates termination benefits paid out in Indonesia.

4 The actual return on the UK Fund assets was a gain of $47 million (31 December 2024: $22 million loss) and on overseas plan assets was a gain of $50 million

(31 December 2024: $29 million gain).

Movement in the defined benefit pension deficit during the year comprise:

		2025				2024
		Funded plans				Funded plans
		Overseas				Overseas
	UK Fund	plans	Other	Total	UK Fund	plans	Other	Total
	$million	$million	$million	$million	$million	$million	$million	$million
Surplus/(deficit) at 1 January 2025	78	(22)	(174)	(118)	40	(20)	(181)	(161)
Contributions	7	55	15	77	13	18	17	48
Current service cost 1	–	(26)	(5)	(31)	–	(19)	(7)	(26)
Past service cost and curtailments 2	–	(67)	–	(67)	–	(2)	1	(1)
Settlement costs and transfers impact 3	–	(1)	–	(1)	–	(3)	–	(3)
Net interest on the net defined benefit
asset/liability	5	1	(9)	(3)	2	(1)	(8)	(7)
Actuarial gains/(losses)	(28)	(14)	1	(41)	25	–	1	26
Other Movement	–	–	–	–	–	(1)	–	(1)
Asset Ceiling 4	–	(4)	–	(4)	–	–	–	–
Exchange rate adjustment	6	1	(5)	2	(2)	6	3	7
Surplus/(deficit) at 31 December 2025	68	(77)	(177)	(186)	78	(22)	(174)	(118)

1 Includes administrative expenses paid out of plan assets of $1 million (31 December 2024: $1 million).

2 Relates to provisional impact of plan amendments in India and RBAT court ruling in Kenya.

3 Impact of settlements relates to termination benefits in Indonesia.

4 Overseas plans include an asset ceiling in Kenya and a legacy Zimbabwe arrangement, resulting from a restriction on the recognition of surplus.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 174

29. Retirement benefit obligations continued

The Bank Group’s expected contribution to its defined benefit pension plans in 2026 is $65 million.

		2025			2024
	Assets	Obligations	Total	Assets	Obligations	Total
	$million	$million	$million	$million	$million	$million
At 1 January	1,781	(1,899)	(118)	1,668	(1,829)	(161)
Contributions 1	88	(11)	77	49	(1)	48
Current service cost 2	–	(31)	(31)	–	(26)	(26)
Past service cost and curtailments	–	(67)	(67)	–	(1)	(1)
Settlement costs 3	–	(1)	(1)	–	(3)	(3)
Interest cost on pension plan liabilities	–	(115)	(115)	–	(89)	(89)
Interest income on pension plan assets	112	–	112	82	–	82
Benefits paid out	(167)	167	–	(131)	131	–
Actuarial gains/(losses) 4	(15)	(26)	(41)	(75)	101	26
Effect of Asset Ceiling 5	(4)	–	(4)	–	–	–
Other Movement	–	–	–	212	(213)	(1)
Exchange rate adjustment	78	(76)	2	(24)	31	7
At 31 December	1,873	(2,059)	(186)	1,781	(1,899)	(118)

1 Includes employee contributions of $11 million (31 December 2024: $1 million).

2 Includes administrative expenses paid out of plan assets of $1 million (31 December 2024: $1 million).

3 Impact of settlements relates to termination benefits paid out in Indonesia.

4 Actuarial loss on obligation comprises of $8 million loss (31 December 2024: $133 million gain) from financial assumption changes, $1 million gain

(31 December 2024: $11 million gain) from demographic assumption changes and $19 million loss (31 December 2024: $33 million loss) from experience.

5 Assets reflect a ceiling in Kenya and a legacy Zimbabwe arrangement, resulting from a restriction on the recognition of surplus.

Company

Retirement benefit obligations comprise:

	Obligation		Charge (Note 7)
	2025	2024	2025	2024
	$million	$million	$million	$million
Defined benefit plans obligation	111	81	32	22
Defined contribution plans obligation	1	1	131	147
Net obligation	112	82	163	169

Retirement benefit charge comprises:

UK Fund

See the Bank Group section on the UK Fund in this note (page 172). There are no differences between Bank Group and Company

in respect of the Fund

Overseas Plans

The principal overseas defined benefit arrangements operated by the Company are in Germany, Jersey, India, United Arab

Emirates (UAE) and the United States of America (US).

All Plans

The disclosures required under IAS 19 have been calculated by qualified independent actuaries based on the most recent

full actuarial valuations updated, where necessary, to 31 December 2025.

The financial assumptions used at 31 December 2025 as shown below. Sensitivities are recorded on page 172 of the Bank Group

accounts and those for non-UK Fund plans are applicable in proportion to the lower liabilities of the Company.

		2025			2024
	UK Fund	Overseas Plans 1	Unfunded Plans 2	UK Funded	Overseas Plans 1	Unfunded Plans 2
	%	%	%	%	%	%
Discount rate	5.5	3.4 – 9.9	5.5 – 6.7	5.5	3.4 – 12.5	4.5 – 6.9
Price inflation	2.4	2.8 – 6.0	2.4 – 5.0	2.5	2.0 – 6.0	2.5 – 6.9
Salary increases	n/a	3.5 – 8.0	2.4 – 4.0	n/a	3.5 – 8.5	4.5 – 8.5
Pension increases	2.4	0.0 – 2.9	0.0 – 2.4	2.3	0.0 – 2.9	0.0 – 2.3
Post-retirement	n/a	n/a	8% in 2025 reducing	n/a	n/a	8% in 2024 reducing
medical rate			by 0.5% per annum			by 0.5% per annum
			to 5% in 2031			to 5% in 2030

1 The range of assumptions shown is for the main funded defined benefit overseas plans in Bangladesh, Germany, India, Jersey and the US. These comprise around

90 per cent of the total liabilities of funded overseas plans.

2 The range of assumptions shown is for the main unfunded defined benefit plans in India, UAE, UK and the US. These comprise around 90 per cent of the total

liabilities of unfunded plans.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 175

29. Retirement benefit obligations continued

Fund values:

The fair value of assets and present value of liabilities of the defined benefit plans were:

			2025						2024
		UK Fund			Overseas plans			UK Fund			Overseas plans
	Quoted	Unquoted	Total	Quoted	Unquoted	Total	Quoted	Unquoted	Total	Quoted	Unquoted	Total
	assets	assets	assets	assets	assets	assets	assets	assets	assets	assets	assets	assets
	$million	$million	$million	$million	$million	$million	$million	$million	$million	$million	$million	$million
At 31 December
Equities	2	–	2	36	–	36	2	–	2	35	–	35
Government bonds	332	–	332	231	–	231	342	–	342	195	–	195
Corporate bonds	411	134	545	221	–	221	357	126	483	250	–	250
Hedge funds	–	4	4	–	–	–	–	5	5	–	–	–
Infrastructure	–	191	191	–	–	–	–	170	170	–	–	–
Property	–	80	80	–	18	18	–	81	81	–	15	15
Derivatives	2	(2)	–	–	–	–	22	(1)	21	–	–	–
Cash and equivalents	38	–	38	58	–	58	35	–	35	22	–	22
Others	9	–	9	6	–	6	7	2	9	–	37	37
Total fair value
of assets 1	794	407	1,201	552	18	570	765	383	1,148	502	52	554

1 Self investment is monitored closely and is less than $1 million of Standard Chartered equities and bonds for 2025 (2024: <$1 million). Self-investment is only allowed

where it is not practical to exclude it – for example through investment in index-tracking funds where the Bank is a constituent of the relevant index.

		2025			2024
		Funded plans			Funded plans
		Overseas	Unfunded		Overseas	Unfunded
	UK Fund	Plans	Plans	UK Fund	Plans	Plans
	$million	$million	$million	$million	$million	$million
Total fair value of assets	1,201	567 1	n/a	1,148	554	n/a
Present value of liabilities	(1,133)	(585)	(161)	(1,070)	(553)	(160)
Net pension plan asset/(obligation)	68	(18)	(161)	78	1	(160)
Of which: Total pension assets in respect of plans in surplus	68	36	–	78	40	–
Of which: Total pension obligations in respect of plans in deficit	–	(54)	(161)	–	(39)	(160)

1 Overseas plan assets include an asset ceiling in a legacy Zimbabwe arrangement, resulting from a restriction on the recognition of surplus.

The pension cost for defined benefit plans was:

		2025				2024
		Funded plans				Funded plans
		Overseas				Overseas
	UK Fund	plans	Other	Total	UK Fund	plans	Other	Total
	$million	$million	$million	$million	$million	$million	$million	$million
Current service cost 1	–	15	4	19	–	9	4	13
Past service cost and curtailments 2	–	9	1	10	–	2	(1)	1
Settlement cost 3	–	1	–	1	–	3	–	3
Interest income on pension plan assets	(65)	(38)	–	(103)	(56)	(19)	–	(75)
Interest on pension plan liabilities	60	36	9	105	54	18	8	80
Total charge to profit before deduction
of tax	(5)	23	14	32	(2)	13	11	22
Net (gain)/losses on plan assets 4	18	(2)	–	16	78	(2)	–	76
(Gains)/losses on liabilities	10	17	–	27	(103)	(1)	(1)	(105)
Total (gains)/losses recognised directly in statement of comprehensive income
before tax	28	15	–	43	(25)	(3)	(1)	(29)
Deferred taxation	(2)	(7)	–	(9)	5	1	–	6
Total (gains)/losses after tax	26	8	–	34	(20)	(2)	(1)	(23)

1 Includes administrative expenses paid out of plan assets of $1 million (2024: $1 million).

2 Relates to provisional impact of regulatory change in India.

3 Impact of settlements relates to termination benefits in Indonesia.

4 The actual return on the UK Fund assets was a loss of $47 million (2024: $22 million gain) and on overseas plan assets was a gain of $40 million

(2024: $21 million gain) .

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 176

29. Retirement benefit obligations continued

Movement in the defined benefit pension plans and post-retirement medical deficit during the year comprise:

		2025				2024
		Funded plans				Funded plans
		Overseas				Overseas
	UK Fund	plans	Other	Total	UK Fund	plans	Other	Total
	$million	$million	$million	$million	$million	$million	$million	$million
Deficit at 1 January	78	1	(160)	(81)	40	2	(170)	(128)
Contributions	7	23	16	46	13	10	16	39
Current service cost	–	(15)	(4)	(19)	–	(9)	(4)	(13)
Past service cost and curtailments	–	(9)	(1)	(10)	–	(2)	1	(1)
Settlement costs and transfers impact	–	(1)	–	(1)	–	(3)	–	(3)
Net interest on the net defined benefit
asset/liability	5	2	(9)	(2)	2	1	(8)	(5)
Actuarial (losses)/gains	(28)	(15)	–	(43)	25	3	1	29
Other Movement	–	–	–	–	–	(1)	–	(1)
Effect of asset ceiling 1	–	(3)	–	(3)	–	–	–	–
Exchange rate adjustment	6	(1)	(3)	2	(2)	–	4	2
Deficit at 31 December	68	(18)	(161)	(111)	78	1	(160)	(81)

1 Assets reflect a ceiling in a legacy Zimbabwe arrangement, resulting from a restriction on the recognition of surplus.

The Company’s expected contribution to its defined benefit pension plans in 2026 is $39million

		2025			2024
	Assets	Obligations	Total	Assets	Obligations	Total
	$million	$million	$million	$million	$million	$million
At 1 January	1,702	(1,783)	(81)	1,599	(1,727)	(128)
Contributions 1	54	(8)	46	39	–	39
Current service cost 2	–	(19)	(19)	–	(13)	(13)
Past service cost and curtailments 3	–	(10)	(10)	–	(1)	(1)
Settlement costs 4	–	(1)	(1)	–	(3)	(3)
Interest cost on pension plan liabilities	–	(105)	(105)	–	(80)	(80)
Interest income on pension plan assets	103	–	103	75	–	75
Benefits paid out	(148)	148	–	(123)	123	–
Actuarial (losses)/gains 5	(16)	(27)	(43)	(76)	105	29
Other Movement	–	–	–	212	(213)	(1)
Effect of asset ceiling 6	(3)	–	(3)	–	–	–
Exchange rate adjustment	76	(74)	2	(24)	26	2
At 31 December	1,768	(1,879)	(111)	1,702	(1,783)	(81)

1 Includes employee contributions of $10 million (31 December 2024: nil).

2 Includes administrative expenses paid out of plan assets of $1 million (31 December 2024: $1 million).

3 Relates to provisional impact of regulatory change in India.

4 Impact of settlements relates to termination benefits in Indonesia.

5 Actuarial loss on obligation comprises of $9 million loss (31 December 2024: $135 million gain) from financial assumption changes, $1 million gain (31 December 2024:

$1 million gain) from demographic assumption changes and $19 million loss (31 December 2024: $31 million loss) from experience.

6 Assets include a ceiling in a legacy Zimbabwe arrangement, resulting from a restriction on the recognition of surplus.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 177

30. Share-based payments

Accounting policy

The Group operates equity-settled and cash-settled share-based compensation plans. The fair value of the employee

services (measured by the fair value of the awards granted) received in exchange for the grant of the shares and awards

is recognised as an expense. For deferred share awards granted as part of an annual performance award, the expense

is recognised over the period from the start of the performance period to the vesting date. For example, the expense for

three-year awards granted in 2024 in respect of 2023 performance, which vest in 2025-2027, is recognised as an expense

over the period from 1 January 2023 to the vesting dates in 2025-2027. For all other awards, the expense is recognised over

the period from the date of grant to the vesting date.

For equity-settled awards, the total amount to be expensed over the vesting period is determined by reference to the fair

value of the shares and awards at the date of grant, which excludes the impact of any non-market vesting conditions

(for example, profitability and growth targets). The fair value of equity instruments granted is based on market prices, if

available, at the date of grant. In the absence of market prices, the fair value of the instruments is estimated using an

appropriate valuation technique, such as a binomial option pricing model. Non-market vesting conditions are included in

assumptions for the number of shares and awards that are expected to vest.

At each balance sheet date, the Group revises its estimates of the number of shares and awards that are expected to vest.

It recognises the impact of the revision of original estimates, if any, in the income statement and a corresponding adjustment

to equity over the remaining vesting period. Forfeitures prior to vesting attributable to factors other than the failure to satisfy

service conditions and non-market vesting conditions are treated as a cancellation and the remaining unamortised charge

is debited to the income statement at the time of cancellation. The proceeds received net of any directly attributable

transaction costs are credited to share capital (nominal value) and share premium when awards in the form of options

are exercised.

Cash-settled awards are revalued at each balance sheet date and a liability recognised on the balance sheet for all unpaid

amounts, with any changes in fair value charged or credited to staff costs in the income statement until the awards are

exercised. Where forfeitures occur prior to vesting that are attributable to factors other than a failure to satisfy service

conditions or market-based performance conditions, the cumulative charge incurred up to the date of forfeiture is credited

to the income statement.

Other accounting estimates and judgements

Share-based payments involve judgement and estimation uncertainty exists when determining the expenses and carrying

values of share awards at the balance sheet date.

• LTIP awards are determined using an estimation of the probability of meeting certain metrics over a three-year

performance period using the Monte Carlo simulation model.

• Deferred shares are determined using an estimation of expected dividends.

• Sharesave Plan valuations are determined using a binomial option-pricing model.

The Group operates a number of share-based arrangements for its executive directors and employees. Details of the share-

based payment charge are set out below.

	2025 1	2024 1
	Total	Total
	$million	$million
Deferred share awards	168	125
Other share awards	41	96
Total share-based payments 1	209	221

1 No forfeiture assumed.

The Group determines both the grant and settlement date for all schemes, and no option to determine grant or settlement

date is available to employees.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 178

30. Share-based payments continued

Discretionary share plans

The 2021 Standard Chartered Share Plan (the ‘2021 Plan’) was approved by shareholders in May 2021 and is the Group’s

main share plan, replacing the 2011 Standard Chartered Share Plan (the ‘2011 Plan’) for new awards from June 2021. It is used

to deliver various types of share awards to employees and former employees of the Group, including directors and former

executive directors:

Award type	Description and performance measures		Valuation
Long Term	The vesting of awards granted in 2025, 2024		The fair value of the relative TSR component is
Incentive Plan	and 2023 are subject to the following		calculated using the probability of meeting the
(LTIP) awards	performance measures:		measures over a three-year performance period,
	•	relative Total Shareholder Return (TSR) 1 ;	using a Monte Carlo simulation model.
	•	Return on Tangible Equity (RoTE 2 ) (with a	The value of the remaining components is based
	Common Equity Tier 1 (CET1) underpin); and		on the expected performance against the RoTE
	•	strategic measures (including targets set for	and strategic measures in the scorecard and
	sustainability linked to business strategy)		the resulting estimated number of shares
	Each measure is assessed independently over		expected to vest at each reporting date.
	a three-year period. LTIP awards have an individual		These combined values are used to determine
	conduct gateway requirement that results in the		the accounting charge.
	award lapsing if not met.		No dividend equivalents accrue for the LTIP awards
			made in 2025, 2024		or 2023 and the fair value takes
	Vested awards are delivered in ordinary Standard		this into account, calculated by reference to market
	Chartered PLC shares.		consensus dividend yield.
Deferred	Used to deliver:		The fair value for deferred shares, which are
shares	•	the deferred portion of year-end variable	granted to employees who are not categorised
	remuneration, in line with both market practice		as material risk takers, is based on 100 per cent	of the face value of the shares at the date of grant
	and regulatory requirements. These awards vest
	in instalments on anniversaries of the award date		as the share price will reflect expectations of all
	specified at the time of grant. This enables the		future dividends.
	Group to meet regulatory requirements relating to		For awards granted to material risk takers in 2025,
	deferral levels, and is in line with market practice.		the fair value of awards takes into account the lack
	•	replacement buy-out awards to new joiners who	of dividend equivalents, calculated by reference to
	forfeit awards on leaving their previous employers.		market consensus dividend yield.
	These vest in the quarter most closely following
	the date when the award would have vested at
	the previous employer. This enables the Group to
	meet regulatory requirements relating to buy-outs,
	and is in line with market practice.
	Deferred share awards are not subject to any
	performance measures.
	Vested awards are delivered in ordinary Standard
	Chartered PLC shares.

1 TSR or Total Shareholder Return is the total return of the PLC Group’s equity (share price growth and dividends) to investors.

2 2 ROTE is the ratio of the current year’s profit available for distribution to ordinary share-holders to the average tangible equity, being ordinary shareholders’ equity

less the average intangible assets for the reporting period.

The remaining life of the 2021 Standard Chartered Share Plan during which new awards can be made is six years.

LTIP awards

	2025	2024
Grant date	12-May	12-March
Share price at grant date (£)	11.70	6.60
Vesting period (years)	3-7	3-7
Expected divided yield (%)	3.5	4.2
Fair value (RoTE) (£)	2.86,2.96,3.06	1.55,1.61,1.68
Fair value (TSR) (£)	1.97,2.04,2.10	0.95,1.01,1.06
Fair value (Strategic) (£)	3.81,3.94,4.08	2.06,2.15,2.24

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 179

30. Share-based payments continued

Deferred shares – year-end

					2025
Grant date	17-Nov		24-Sep		12-May		14-Mar
Share price at grant date (£)	16.13		14.55		11.7		11.77
	Expected		Expected		Expected		Expected
	dividend yield	Fair value	dividend yield	Fair value	dividend yield	Fair value	dividend yield	Fair value
Vesting period (years)	(%)	(£)	(%)	(£)	(%)	(£)	(%)	(£)
1-3 years	NA	20.49	NA	18.48	NA	14.86	NA	14.95
				16.95,	13.18,	13.41,		13.34,
1-5 years	–	–	2.5, 2.5, 2.5	17.16, 17.37	3.5, 3.5, 3.5	13.64	3.3, 3.3, 3.3	13.56, 13.78
3-7 years	–	–	–	–	–	–	3.3, 3.3	12.30, 12.71

			2024
Grant date	17 June		11 March
Share price at grant date (£)	7.24		6.56
	Expected		Expected
	dividend yield	Fair value	dividend yield	Fair value
Vesting period (years)	(%)	(£)	(%)	(£)
1-3 years	N/A	9.17	4.2, 4.2	7.65, 8.30
1-5 years	3.8, 3.8, 3.8	8.05, 8.20, 8.35	4.2, 4.2, NA	7.19, 7.49, 8.30
3-7 years		4.2,	4.2	6.49, 6.76

Deferred shares – buy-outs

				2025
Grant date	17-Nov		24-Sep		12-May		14-Mar
Share price at grant date (£)	16.13		14.55		11.7		11.77
	Expected		Expected		Expected		Expected
	dividend yield	Fair value	dividend yield	Fair value	dividend yield	Fair value	dividend yield	Fair value
Vesting period (years)	(%)	(£)	(%)	(£)	(%)	(£)	(%)	(£)
3 months			2.5	19.44			3.3	15.07
4 months	3.3	21.14			3.5	15.87
				18.85,
6 months			2.5	19.09, 19.32
7 months	3.3	20.97
9 months			2.5	19.2
10 months					3.5	15.58
			18.39,	18.62,
		20.30,		18.74,		15.06,
		20.46,	18.85,	18.97,		15.33,
1 year	3.3	20.63	2.5	19.09	3.5	15.44	3.3	14.59, 14.71
			17.94,	18.17,
	19.65,	19.81,	18.28,	18.39,
2 years	3.3	19.97	2.5	18.51, 18.62	3.5	14.92	3.3	14.12, 14.24
			17.72,	17.94,
3 years	3.3	19.18, 19.33	2.5	18.17	3.5	14.41	3.3	13.78
4 years			2.5	17.51
5 years     

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 180

30. Share-based payments continued

					2024
Grant date	18-Nov		23-Sep		17-Jun		11-Mar
Share price at grant date (£)	9.43		7.59		7.24		6.56
	Expected		Expected		Expected		Expected
	dividend yield	Fair value	dividend yield	Fair value	dividend yield	Fair value	dividend yield	Fair value
Vesting period (years)	(%)	(£)	(%)	(£)	(%)	(£)	(%)	(£)
3 months			4.2	9.59	3.8	9.07	4.2	8.22
4 months	4.2	11.83
6 months			4.2	9.49	3.8	8.99	4.2	8.14
7 months	4.2	11.69
9 months			4.2	9.4	3.8	8.90	4.2	8.06
10 months			9.02,	9.11,	8.58,	8.66,	7.73,	7.81,
1 year	4.2	11.22, 11.36	4.2	9.21, 9.30	3.8	8.74	4.2	7.89, 7.97
1.4 years			8.65,	8.74,			7.42,	7.50,
2 years	4.2	10.77, 10.90	4.2	8.83, 8.93	3.8	8.26, 8.34	4.2	7.57, 7.65
3 years	4.2	10.46	4.2	8.39			4.2	7.20, 7.34
4 years	4.2	10.04					4.2	7.05

All Employee Sharesave Plans

Under the 2023 Sharesave Plan, employees may open a savings contract and save up to £500 (increased from £250 since 2024)

per month over three years to purchase ordinary Standard Chartered PLC shares at a discount of up to 20 per cent (the ‘option

exercise price’). The discount applies to the higher of the 5-day average share price prior to the invitation or the closing share

price on the last trading day prior to the invitation. At the end of the savings contract they have a period of six months to

exercise the option. There are no performance measures attached to Sharesave options and no exercise price is payable to

receive an option. In some countries in which the Group operates, it is not possible to operate equity-settled Sharesave, typically

due to securities law and regulatory restrictions. In these countries, where possible, the Group offers an equivalent cash-based

alternative to its employees.

The remaining life of the 2023 Sharesave Plan during which new awards can be made is eight years.

Valuation – Sharesave:

Options under the Sharesave plans are valued using a binomial option-pricing model. The same fair value is applied to all

employees including executive directors. The fair value per option granted and the assumptions used in the calculation are

as follows:

All Employee Sharesave Plan (Sharesave)

	2025	2024
Grant date	24 September	23 September
Share price at grant date (£)	14.55	7.59
Exercise price (£)	11.10	6.10
Vesting period (years)	3	3
Expected volatility (%)	31.2	32.9
Expected option life (years)	3.5	3.5
Risk-free rate (%)	3.98	3.88
Expected dividend yield (%)	2.5	4.2
Fair value (£)	6.49	2.73

The expected volatility is based on historical volatility over the last three years, or the three years prior to grant. The expected

life is the average expected period to exercise. The risk-free rate of return is the yield on zero-coupon UK Government bonds of a

term consistent with the assumed option life. The expected dividend yield is calculated by reference to market consensus

dividend yield.

Limits

An award shall not be granted under the 2021 Plan in any calendar year if, at the time of its proposed grant, it would cause the

number of Standard Chartered PLC ordinary shares allocated in the period of 10 calendar years, ending with that calendar year,

under the 2021 Plan and under any other discretionary share plan operated by Standard Chartered PLC to exceed 5 per cent of

the ordinary share capital of Standard Chartered PLC in issue at that time.

An award shall not be granted under the 2021 Plan or 2023 Sharesave Plan in any calendar year if, at the time of its proposed

grant, it would cause the number of Standard Chartered PLC ordinary shares allocated in the period of 10 calendar years ending

with that calendar year, under the 2021 Plan or 2023 Sharesave Plan and under any other employee share plan operated by

Standard Chartered PLC to exceed 10 per cent of the ordinary share capital of Standard Chartered PLC in issue at that time.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 181

30. Share-based payments continued

An award shall not be granted under the 2021 Plan or 2023 Sharesave Plan in any calendar year if, at the time of its proposed

grant, it would cause the number of Standard Chartered PLC ordinary shares which may be issued or transferred pursuant to

awards then outstanding under the 2021 Plan or 2023 Sharesave Plan as relevant to exceed such number as represents 10 per

cent of the ordinary share capital of Standard Chartered PLC in issue at that time.

The number of Standard Chartered PLC ordinary shares which may be issued pursuant to awards granted to an individual

under the 2021 Plan in any 12-month period must not exceed 1 per cent of the ordinary share capital of Standard Chartered PLC

in issue at that time. There are no participants with options and awards granted and to be granted in excess of the 1%

individual limit, and there are no related entity participants or service providers with options and awards granted and to be

granted in any 12-month period exceeding 0.1% of the relevant class of shares in issue (excluding treasury shares).

Reconciliation of share award movements for the year to 31 December 2025

	Discretionary 1,2			Weighted
				average
				Sharesave
		Deferred		exercise price
	LTIP	shares	Sharesave 2.6,7	(£)
Outstanding at 1 January 2025 2	8,924,192	43,009,271	13,752,137	5.49
Granted 3,4,5	1,825,362	13,385,159	3,427,900	–
Lapsed 8	(304,929)	(527,940)	(921,597)	6.25
Exercised	(1,192,019)	(17,174,553)	(814,557)	3.90
Outstanding at 31 December 2025	9,252,606	38,691,937	15,443,883	6.78
Total number of securities available for issue under the plan	9,252,606	38,691,937	15,443,883
Percentage of the issued shares this represents as at 31 December 2024	0.41	1.71	0.68	6.78
Exercisable as at 31 December 2025	–	58,438	68,827	5.49
Range of exercise prices (£)	–	–	4.23 – 11.10
Intrinsic value of vested but not exercised options ($ million)	0.00	1.43	1.18
Weighted average contractual remaining life (years)	7.07	7.99	2.08
Weighted average share price for awards exercised during the period (£)	11.78	11.75	11.60

1 Granted under the 2021 Plan and 2011 Plan. Employees do not contribute to the cost of these awards.

2 The opening balances were adjusted during the year due to a change in approach to determining which historical grants to include under the SC Bank

consolidation.

3 1,825,362 (LTIP) granted on 12 May 2025. The closing price of the shares immediately before the date on which the options or awards were granted was £10.675.

4 11,905,575 (Deferred shares) granted on 14 March 2025. The closing price of the shares immediately before the date on which the options or awards were granted

was £11.58. 114,069 (Deferred shares) granted as a notional dividend on 27 March 2025; 333,619 (Deferred shares) granted on 12 May 2025; The closing price of the

shares immediately before the date on which the options or awards were granted was £10.675. 39,009 (Deferred shares) granted as a notional dividend on

28 August 2025. 837,836 (Deferred shares) granted on 24 September 2025. The closing price of the shares immediately before the date on which the options or

awards were granted was £14.545. 155,051 (Deferred shares) granted on 17 November 2025. The closing price of the shares immediately before the date on which

the options or awards were granted was £16.130.

5 No discretionary awards (LTIP or deferred/buy-out awards) have been granted in the form of options since June 2015. For historic awards granted as options and

exercised in the period to 31 December 2025, the exercise price of deferred/Buy-out shares options was nil.

6 The exercise price of Sharesave grants are determined with a 20% discount on the higher of the average closing price of the five days prior to invitation date or the

closing share price of the last day prior to invitation date. For Sharesave options granted in 2025, the exercise price is £11.10 per share calculated based on a 20%

discount on £13.88 which was the average closing price of the five days prior to invitation date of 18 August 2025.

7 All Sharesave awards are in the form of options. The exercise price of Sharesave options exercised was £11.10 for options granted in 2025, £6.10 for options granted

in 2024, £5.88 for options granted in 2023, £4.23 for options granted in 2022.

8 No options or share awards were cancelled in the period.

See pages 189 and 192-193 for information specific to Directors

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 182

30. Share-based payments continued

Reconciliation of share award movements for the year to 31 December 2024

	Discretionary 1			Weighted
				average
				Sharesave
		Deferred		exercise price
	LTIP	shares	Sharesave 4,5	(£)
Outstanding at 1 January 2024	10,338,310	39,709,125	10,876,723	4.57
Granted 2,3	2,058,432	21,439,877	6,550,317	–
Lapsed 6	(2,590,658)	(1,362,325)	(1,011,865)	4.91
Exercised	(877,142)	(16,687,307)	(2,618,370)	3.44
Outstanding at 31 December 2024	8,928,942	43,099,370	13,796,805	5.49
Total number of securities available for issue under the plan	8,928,942	43,099,370	13,796,805
Percentage of the issued shares this represents as at 31 December 2024	0.37	1.78	0.57	5.49
Exercisable as at 31 December 2024	–	245,006	738,353	3.82
Range of exercise prices (£)	–	–	3.67 – 6.10
Intrinsic value of vested but not exercised options ($ million)	0.00	3.03	5.60
Weighted average contractual remaining life (years)	7.28	8.19	2.59
Weighted average share price for awards exercised during the period (£)	6.60	6.68	8.25

1 Granted under the 2021 Plan and 2011 Plan. Employees do not contribute to the cost of these awards.

2 2,053,159 (LTIP) granted on 12 March 2024; 5,059 (LTIP) granted as a notional dividend on 1 March 2024; 214 (LTIP) granted as a notional dividend on 8 August 2024.

20,352,568 (Deferred shares) granted on 11 March 2024; 181,907 (Deferred shares) granted as a notional dividend on 1 March 2024; 452,138 (Deferred shares)

granted on 17 June 2024; 69,815 (Deferred shares) granted as a notional dividend on 8 August 2024; 184,526 (Deferred shares) granted on 23 September 2024;

198,923 (Deferred shares) granted on 18 November 2024. 6,550,317 (Sharesave) granted on 23 September 2024.

3 No discretionary awards (LTIP or deferred/buy-out awards) have been granted in the form of options since June 2015. For historic awards granted as options and

exercised in the period to 31 December 2024, the exercise price of deferred/buy-out shares options was nil.

4 The exercise price of Sharesave grants are determined with a 20% discount on the higher of the average closing price of the five days prior to invitation date or the

closing share price of the last day prior to invitation date. For Sharesave options granted in 2024, the exercise price is £6.10 per share calculated based on a 20%

discount on £7.62 which was the closing price on the day prior to invitation date of 19 August 2024.

5 All Sharesave awards are in the form of options. The exercise price of Sharesave options exercised is £ 6.10 for options granted in 2024, £ 5.88 for options granted in

2023, £4.23 for options granted in 2022, £3.67 for options granted in 2021, and £3.14 for options granted in 2020.

6 No options or share awards were cancelled in the period.

See page 189 and pages 192- 193 for information specific to Directors.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 183

31. Investments in subsidiary undertakings, joint ventures and associates

Accounting policy

Associates and joint arrangements

The Group did not have any contractual interest in joint operations.

Investments in associates and joint ventures are accounted for by the equity method of accounting and are initially

recognised at cost. The Group’s investment in associates and joint ventures includes goodwill identified on acquisition

(net of any accumulated impairment loss).

The Group’s share of its associates’ and joint ventures’ post-acquisition profits or losses is recognised in the income

statement, and its share of post-acquisition movements in other comprehensive income is recognised in reserves.

The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. When the Group’s

share of losses in an associate or a joint venture equals or exceeds its interest in the associate, including any other unsecured

receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the

associate or joint venture.

Unrealised gains and losses on transactions between the Group and its associates and joint ventures are eliminated to the

extent of the Group’s interest in the associates and joint ventures. At each balance sheet date, the Group assesses whether

there is any objective evidence of impairment in the investment in associates and joint ventures. Such evidence includes

a significant or prolonged decline in the fair value of the Group’s investment in an associate or joint venture below its cost,

among other factors.

Business combinations

The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Group.

In the Company’s financial statements, investment in subsidiaries, associates and joint ventures are held at cost less

impairment and dividends from pre-acquisition profits received prior to 1 January 2009, if any. Inter-company transactions,

balances and unrealised gains and losses on transactions between Group companies are eliminated in the Group accounts.

Other areas of accounting estimates and judgement

The Group applies judgement in determining if it has control, joint control or significant influence over subsidiaries, joint

ventures and associates respectively. These judgements are based upon identifying the relevant activities of counterparties,

being those activities that significantly affect the entities returns, and further making a decision of if the Group has control

over those entities, joint control, or has significant influence (being the power to participate in the financial and operating

policy decisions but not control them).

These judgements are at times determined by equity holdings, and the voting rights associated with those holdings.

However, further considerations including but not limited to board seats, advisory committee members and specialist

knowledge of some decision-makers are also taken into account. Further judgement is required when determining if the

Group has de-facto control over an entity even though it may hold less than 50% of the voting shares of that entity.

Judgement is required to determine the relative size of the Group’s shareholding when compared to the size and dispersion

of other shareholders.

Impairment testing of investments in associates and joint ventures, and on a Company level investments in subsidiaries is

performed if there is a possible indicator of impairment. Judgement is used to determine if there is objective evidence of

impairment. Objective evidence may be observable data such as losses incurred on the investment when applying the equity

method, the granting of concessions as a result of financial difficulty, or breaches of contracts/regulatory fines of the

associate or joint venture. Further judgement is required when considering broader indicators of impairment such as losses

of active markets or ratings downgrades across key markets in which the associate or joint venture operate in.

Impairment testing is based on estimates including forecasting the expected cash flows from the investments, growth rates,

terminal values and the discount rate used in calculation of the present values of those cash flows. The estimation of future

cash flows and the level to which they are discounted is inherently uncertain and requires significant judgement.

	2025	2024
Investments in subsidiary undertakings	$million	$million
As at 1 January	10,671	10,066
Additions 1	169	601
Disposal	–	(7)
Impairment (charge)/release 2	(40)	11
As at 31 December	10,800	10,671

1 2025 movement primarily includes Standard chartered AG limited $167 million. 2024 movement includes issuances of $580 million to Standard Chartered Bank

(Singapore) Limited.

2 2025 movement primarily relates to the net of impairment charge of Standard Chartered Holdings Inc.

A complete list of subsidiary undertakings is included in Note 39.

During 2025 the Group disposed of some of its indirectly held investments in subsidiaries and the losses on disposal were

Standard Chartered Bank Gambia Limited (loss: $5.4 million including translation adjustment loss: $8 million) and Standard

Chartered Bank Cameroon S.A. (loss: $5.3 million including translation adjustment loss: $9 million).

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 184

31. Investments in subsidiary undertakings, joint ventures and associates continued

While the Group’s subsidiaries are subject to local statutory capital and liquidity requirements in relation to foreign exchange

remittance, these restrictions arise in the normal course of business and do not significantly restrict the Group’s ability to access

or use assets and settle liabilities of the Group.

The Group does not have significant restrictions on its ability to access or use its assets and settle its liabilities other than those

resulting from the regulatory framework within which the banking subsidiaries operate. These frameworks require banking

operations to keep certain levels of regulatory capital, liquid assets, exposure limits and comply with other required ratios.

These restrictions are summarised below:

Regulatory and liquidity requirements

The Group’s subsidiaries are required to maintain minimum capital, leverage ratios, liquidity and exposure ratios which therefore

restrict the ability of these subsidiaries to distribute cash or other assets to the parent company.

The subsidiaries are also required to maintain balances with central banks and other regulatory authorities in the countries in

which they operate. At 31 December 2025, the total cash and balances with central banks was $64.9 billion (31 December 2024:

$56.7 billion) of which $2.9 billion (31 December 2024: $2.9 billion) is restricted.

Statutory requirements

The Group’s subsidiaries are subject to statutory requirements not to make distributions of capital and unrealised profits to the

parent company, generally to maintain solvency. These requirements restrict the ability of subsidiaries to remit dividends to the

Group. Certain subsidiaries are also subject to local exchange control regulations which provide for restrictions on exporting

capital from the country other than through normal dividends .

32. Structured entities

Accounting policy

Structured entities are consolidated when the substance of the relationship between the Group and the structured entity

indicates the Group has power over the contractual relevant activities of the structured entity, is exposed to variable returns,

and can use that power to affect the variable return exposure.

In determining whether to consolidate a structured entity to which assets have been transferred, the Group takes into

account its ability to direct the relevant activities of the structured entity. These relevant activities are generally evidenced

through a unilateral right to liquidate the structured entity, investment in a substantial proportion of the securities issued by

the structured entity or where the Group holds specific subordinate securities that embody certain controlling rights. The

Group may further consider relevant activities embedded within contractual arrangements such as call options which give

the practical ability to direct the entity, special relationships between the structured entity and investors, and if a single

investor has a large exposure to variable returns of the structured entity.

Judgement is required in determining control over structured entities. The purpose and design of the entity is considered,

along with a determination of what the relevant activities are of the entity and who directs these. Further judgements are

made around which investor is exposed to and absorbs the variable returns of the structured entity. The Group will have to

weigh up all of these facts to consider whether the Group, or another involved party is acting as a principal in its own right or

as an agent on behalf of others. Judgement is further required in the ongoing assessment of control over structured entities,

specifically if market conditions have an effect on the variable return exposure of different investors.

Interests in consolidated structured entities: A structured entity is consolidated into the Group’s financial statements where the

Group controls the structured entity, as per the determination in the accounting policy above. The following table presents the

Group’s interests in consolidated structured entities.

The following table presents the Group’s interests in consolidated structured entities.

	2025	2024
	$million	$million
Principal and other structured finance	436	239
Total	436	239

Interests in unconsolidated structured entities:

Unconsolidated structured entities are all structured entities that are not controlled by the Group. The Group enters into

transactions with unconsolidated structured entities in the normal course of business to facilitate customer transactions and for

specific investment opportunities. An interest in a structured entity is contractual or non-contractual involvement which creates

variability of the returns of the Group arising from the performance of the structured entity.

The table below presents the carrying amount of the assets recognised in the financial statements relating to variable interests

held in unconsolidated structured entities, the maximum exposure to loss relating to those interests and the total assets of the

structured entities. Maximum exposure to loss is primarily limited to the carrying amount of the Group’s on-balance sheet

exposure to the structured entity. For derivatives, the maximum exposure to loss represents the on-balance sheet valuation and

not the notional amount. For commitments and guarantees, the maximum exposure to loss is the notional amount of potential

future losses.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 185

32. Structured entities continued

				2025					2024
			Corporate						Corporate
	Asset		Lending &	Principal			Asset		Lending &	Principal
	-backed		Structured	Finance	Other		-backed		Structured	Finance	Other
	securities	Lending	Finance	funds	activities	Total	securities	Lending	Finance	funds	activities	Total
	$million	$million	$million	$million	$million	$million	$million	$million	$million	$million	$million	$million
Group’s interest – assets
Financial assets held at fair value through profit
or loss	590	458	197	78	–	1,323	358	71	178	86	–	693
Loans and advances/
Investment securities at amortised cost	8,316	12,988	10,759	–	107	32,170	11,372	9,105	8,648	–	97	29,222
Investment securities
(fair value through other comprehensive income)	1,227	–	–	–	–	1,227	1,421	–	–	–	–	1,421
Other assets	–	8	12	–	–	20	–	–	–	–	–	–
Total assets	10,133	13,454	10,968	78	107	34,740	13,151	9,176	8,826	86	97	31,336
Off-balance sheet	151	9,552	6,817	23	32	16,575	–	6,369	5,554	61	73	12,057
Group’s maximum
exposure to loss	10,284	23,006	17,785	101	139	51,315	13,151	15,545	14,380	147	170	43,393
Total assets of structured entities	114,415	14,209	14,357	99	–	143,080	86,906	9,492	10,748	115	–	107,261

The main types of activities for which the Group utilises unconsolidated structured entities cover synthetic credit default swaps

for managed investment funds (including specialised Principal Finance funds), portfolio management purposes, structured

finance and asset-backed securities. These are detailed as follows:

• Asset-backed securities (ABS): The Group also has investments in asset-backed securities issued by third-party sponsored

and managed structured entities. For the purpose of market making and at the discretion of ABS trading desk, the Group

may hold an immaterial amount of debt securities from structured entities originated by credit portfolio management.

This is disclosed in the ABS column above.

• Portfolio management (Group sponsored entities): For the purposes of portfolio management, the Group purchased credit

protection via synthetic credit default swaps from note-issuing structured entities. This credit protection creates credit risk

which the structured entity and subsequently the end investor absorbs. The referenced assets remain on the Group’s balance

sheet as they are not assigned to these structured entities. The Group continues to own or hold all of the risks and returns

relating to these assets. The credit protection obtained from the regulatory-compliant securitisation only serves to protect

the Group against losses upon the occurrence of eligible credit events and the underlying assets are not derecognised

from the Group’s balance sheet. The Group does not hold any equity interests in the structured entities but may hold

an insignificant amount of the issued notes for market making purposes. This is disclosed in the ABS section

above. The proceeds of the notes’ issuance are typically held as cash collateral in the issuer’s account operated by a trustee

or invested in AAA-rated government-backed securities to collateralise the structured entities swap obligations to the Group,

and to repay the principal to investors at maturity. The structured entities reimburse the Group on actual losses incurred,

through the use of the cash collateral or realisation of the collateral security. Correspondingly, the structured entities write

down the notes issued by an equal amount of the losses incurred, in reverse order of seniority. All funding is committed

for the life of these vehicles and the Group has no indirect exposure in respect of the vehicles’ liquidity position. The Group

has reputational risk in respect of certain portfolio management vehicles and investment funds either because the Group

is the arranger and lead manager or because the structured entities have Standard Chartered branding.

• Lending: Lending comprises secured lending in the normal course of business to third parties through structured entities.

• Structured Finance: Structured finance comprises interests in transaction that the Group or, more usually, a customer has

structured, using one or more structured entities, which provide beneficial arrangements for customers. The Group’s exposure

primarily represents the provision of funding to these structures as a financial intermediary, for which it receives a lender’s

return. The transactions largely relate to real estate financing and the provision of aircraft leasing and ship finance.

• Principal Finance Fund: The Group’s exposure to Principal Finance Funds represents committed or invested capital in

unleveraged investment funds, primarily investing in pan-Asian infrastructure, real estate and private equity.

• Other activities: Other activities include structured entities created to support margin financing transactions,

the refinancing of existing credit and debt facilities, as well as setting up of bankruptcy remote structured entities.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 186

32. Structured entities continued

In the above table, the Group determined the total assets of the structured entities using following bases:

• Asset Backed Securities, Principal Finance, and Other activities are based on the published total assets of the structured

entities

• Lending and Structured Finance are estimated based on the Group’s loan values to the structured entities.

33. Cash flow statement

Adjustment for non-cash items and other adjustments included within income statement

	Group		Company
	2025	2024	2025	2024
	$million	$million	$million	$million
Amortisation of discounts and premiums of investment securities	(428)	(420)	(351)	(259)
Interest expense on subordinated liabilities	485	597	527	682
Interest expense on senior debt securities in issue	542	651	819	1,077
Other non-cash items	(118)	(87)	(92)	(29)
Net (gain)/loss on sale of business	(4)	214	–	(26)
Pension costs for defined benefit schemes	102	37	32	22
Share-based payment costs	209	219	153	136
Impairment losses on loans and advances and other credit risk provisions	248	15	88	(114)
Dividend income from subsidiaries	–	–	(1,260)	(1,052)
Other impairment	29	410	57	273
Gain on disposal of property, plant and equipment	(125)	(3)	(2)	(3)
Loss on disposal of FVOCI & AMCST financial assets	53	190	54	154
Depreciation and amortisation	721	656	446	403
Fair value changes taken to PL	(1,289)	(1,418)	(871)	(1,226)
Foreign currency revaluation	(26)	54	(29)	(39)
Profit from associates and joint ventures	(2)	(8)	–	–
Total	397	1,107	(429)	(1)

Change in operating assets

	2025	2024	2025	2024
	$million	$million	$million	$million
Decrease/(increase) in derivative financial instruments	14,746	(25,886)	14,113	(24,384)
Increase in debt securities, treasury bills and equity shares held
at fair value through profit or loss	(4,113)	(6,173)	(8,588)	(4,319)
Increase in loans and advances to banks and customers	(9,382)	(7,165)	(2,198)	(970)
Net decrease/(increase) in prepayments and accrued income	190	(153)	144	(167)
Net (increase)/decrease in other assets	(9,072)	4,587	(3,198)	3,679
Total	(7,631)	(34,790)	273	(26,161)

Change in operating liabilities

	Group		Company
	2025	2024	2025	2024
	$million	$million	$million	$million
(Decrease)/increase in derivative financial instruments	(12,814)	23,137	(13,032)	22,001
Increase/(decrease) in deposits from banks, customer accounts, debt securities in issue and short positions	32,068	2,008	17,650	(4,981)
Increase in accruals and deferred income	213	58	165	25
Increase/(decrease) in amount due to parents/subsidiaries/
other related parties	8,921	(2,059)	8,576	(4,197)
Net (decrease)/increase in other liabilities	(566)	2,587	(1,907)	1,016
Total	27,822	25,731	11,452	13,864

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 187

33. Cash flow statement continued

Changes in liabilities arising from financing activities

	Group		Company
	2025	2024	2025	2024
	$million	$million	$million	$million
Subordinated debt (including accrued interest):
Opening balance	10,357	11,457	9,803	10,899
Interest paid	(551)	(569)	(492)	(528)
Repayment	(2,705)	(1,000)	(2,173)	(1,000)
Foreign exchange movements	225	(102)	235	(92)
Fair value changes from hedge accounting	296	(4)	296	(4)
Accrued interest and others	556	575	491	528
Closing balance	8,178	10,357	8,160	9,803

	Group		Company
	2025	2024	2025	2024
	$million	$million	$million	$million
Senior debt (including accrued interest):
Opening balance	8,469	7,860	8,413	7,827
Proceeds from the issue	2,500	3,134	2,455	3,114
Interest paid	(376)	(282)	(374)	(282)
Repayment	(4,001)	(2,480)	(3,986)	(2,471)
Foreign exchange movements	29	(45)	30	(44)
Fair value changes from hedge accounting	62	–	62	–
Accrued interest and others	362	282	(1,764)	269
Closing balance	7,045	8,469	4,836	8,413

Senior debt is presented as part of debt securities in issue in the Group and Company balance sheets.

34. Cash and cash equivalents

Accounting policy

Cash and cash equivalents includes:

Cash on hand and balances at central banks’ that are on demand or placements which are contractually due to mature

overnight only, except for restricted balances; and

Other balances listed in the table below, when they have less than three months’ maturity from the date of acquisition, are

not subject to contractual restrictions, are subject to insignificant changes in value, are highly liquid and are held for the

purpose of meeting short-term cash commitments. This includes products such as treasury bills and other eligible bills,

short-term government securities, loans and advances to banks (including reverse repos), and loans and advances to

customers (only non demand or non overnight placements at central banks), which are held for appropriate business

purposes. On demand accounts with non central banks are reported as part of ‘Loans & Advances to banks’.

The following balances have been identified by the Group and Company as being cash and cash equivalents based on the

criteria described above.

	Group		Company
	2025	2024	2025	2024
	$million	$million	$million	$million
Cash and balances at central banks	64,943	56,665	52,348	45,233
Less: restricted balances	(2,893)	(2,859)	(984)	(1,160)
Treasury bills and other eligible bills	13,104	4,938	1,440	529
Loans and advances to banks	4,387	2,481	2,701	1,724
Loans and advances to customers	11,301	16,364	2,226	500
Investments	273	830	272	640
Amounts owed by and due to subsidiary	1,246	530	1,287	635
Total	92,361	78,949	59,290	48,101

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 188

35. Related party transactions

Directors and officers

Details of directors’ remuneration and interests in shares are disclosed in the Note 37 Remuneration of Directors.

IAS 24 Related party disclosures requires the following additional information for key management compensation. Key

management comprises non-executive directors, executive directors of Standard Chartered PLC, the Court directors of Standard

Chartered Bank and the persons discharging managerial responsibilities (PDMR) of Standard Chartered PLC Group.

	2025¹	2024
	$million	$million
Salaries, allowances and benefits in kind	47	40
Share-based payments	40	38
Bonuses paid or receivable	–	7
Termination benefits	–	2
Total	87	87

1 Following the Prudential Regulation Authority (PRA) publication of revised remuneration regulations on 15 October 2025, we have changed the structure of variable

remuneration from 2025 onwards. This is reflected in the table above, with the value split between salaries, allowances and benefit in kind and share based

payments in line with IAS 24.

Transactions with directors and others

Directors and officers have banking relationships with Group companies which are entered into in the normal course of business

and on substantially the same terms as for comparable transactions with other persons of a similar standing or, where

applicable, with other employees within limits acceptable to the PRA. These transactions did not involve more than the normal

risk of repayment or present other unfavourable features

At 31 December 2025, the total amounts to be disclosed under the Companies Act 2006 (the Act) about loans to directors were

as follows:

	2025	2024
	$million	$million
Advances and credits	4	–
Deposits	32	–

As at 31 December 2025, Standard Chartered Bank had in place a charge over $69 million (31 December 2024: $68 million) of

cash assets in favour of the independent trustee of its employer financed retirement benefit scheme.

Other than as disclosed in the Annual Report and Accounts, there were no other transactions, arrangements or agreements

outstanding for any director, connected person or officer of the Company which have to be disclosed under the Act.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 189

35. Related party transactions continued

Group

		2025					2024
	Due from/to				Due from/to
	subsidiary		Subordinated		subsidiary		Subordinated
	undertakings		liabilities and		undertakings		liabilities and
	and other	Derivative	other		and other	Derivative	other
	related	financial	borrowed	Debt	related	financial	borrowed	Debt
	parties	instruments	funds	Securities	parties	instruments	funds	Securities
	$million	$million	$million	$million	$million	$million	$million	$million
Assets
Ultimate parent company	167	783	–	19	51	1,111	–	14
Fellow subsidiaries of SC PLC Group	5,067	9,347	–	426	5,133	12,811	–	416
	5,234	10,130	–	445	5,184	13,922	–	430
Liabilities
Ultimate parent company	14,677	362	7,828	8,310	11,331	167	10,015	8,096
Fellow subsidiaries of SC PLC Group	22,595	9,227	–	977	16,915	11,153	–	966
	37,272	9,589	7,828	9,287	28,246	11,320	10,015	9,062

		2025
	Fees and	Fees and
	commission	commission	Interest	Interest
	income	expense	income	expense
	$million	$million	$million	$million
Ultimate parent company	–	–	–	1,479
Fellow subsidiaries of SC PLC Group	231	270	94	874
	231	270	94	2,353

		2024
	Fees and	Fees and
	commission	commission	Interest	Interest
	income	expense	income	expense
	$million	$million	$million	$million
Ultimate parent company	–	–	–	1,604
Fellow subsidiaries of SC PLC Group	288	270	160	736
	288	270	160	2,340

The Group contributes to employee pension funds and provides banking services free of charge to the UK fund. For details of

the funds (see Note 29).

The Group’s employees participate in the Standard Chartered PLC group’s share-based compensation plans (see Note 30).

The cost of the compensation is recharged from Standard Chartered PLC to the Group’s branches and subsidiaries.

Associates and joint ventures

2025

$million

2024

$million

Assets

Financial Assets held at FVTPL 10 –

Derivative assets 5 5

		Total assets 15 5
Liabilities
Deposits	69	30
Derivative liabilities	3	4
Total liabilities	72	34
Loan commitments and other guarantees¹	107	12

1 The maximum loan commitments and other guarantees during the year was $107 million (31 December 2024: $12 million).

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 190

35. Related party transactions continued

Company

		2025					2024
	Due from/to				Due from/to
	subsidiary		Subordinated		subsidiary		Subordinated
	undertakings		liabilities and		undertakings		liabilities and
	and other	Derivative	other		and other	Derivative	other
	related	financial	borrowed	Debt	related	financial	borrowed	Debt
	parties	instruments	funds	Securities	parties	instruments	funds	Securities
	$million	$million	$million	$million	$million	$million	$million	$million
Assets
Ultimate parent company	167	783	–	19	51	1,111	–	11
Subsidiaries and fellow subsidiaries of SC
PLC Group	11,371	12,863	–	5,087	9,980	17,546	–	4,283
	11,538	13,646	–	5,106	10,031	18,657	–	4,294
Liabilities
Ultimate parent company	14,677	362	7,828	8,310	11,323	167	9,475	8,096
Subsidiaries and fellow subsidiaries of SC
PLC Group	36,303	13,336	–	83	30,990	15,518	–	16
	50,980	13,698	7,828	8,393	42,313	15,685	9,475	8,112

			2025
	Fees and	Fees and
	commission	commission	Interest	Interest	Dividend
	income	expense	income	expense	income
	$million	$million	$million	$million	$million
Ultimate parent company	–	–	–	1,468	–
Subsidiaries and fellow subsidiaries of SC PLC Group	443	382	486	1,322	1,260
	443	382	486	2,790	1,260

			2024
	Fees and	Fees and
	commission	commission	Interest	Interest	Dividend
	income	expense	income	expense	income
	$million	$million	$million	$million	$million
Ultimate parent company	–	–	–	1,563	–
Subsidiaries and fellow subsidiaries of SC PLC Group	504	325	589	1,212	1,052
	504	325	589	2,775	1,052

As at 31 December 2025, Standard Chartered Bank had in place a charge over $69 million (31 December 2024: $68 million) of

cash assets in favour of the non-consolidated independent trustee of its employer financed retirement benefit scheme.

The Company contributes to employee pension funds and provides banking services free of charge to the UK fund. For details

of the funds see note 29.

The Company’s employees participate in the Standard Chartered PLC group’s share-based compensation plans (see note 30).

The Company has an agreement with Standard Chartered PLC that in the event of the Company defaulting on its debt coupon

interest payments, where the terms of such debt requires it, Standard Chartered PLC shall issue shares as settlement for

non-payment of the coupon interest.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 191

36. Auditor’s remuneration

Auditor’s remuneration is included within other general administration expenses. The amounts paid by the Group to their

principal auditor, Ernst & Young LLP (EY LLP) and its associates (together EY LLP), are set out below. All services are approved

by the Group Audit Committee and are subject to controls to ensure the external auditor’s independence is unaffected by the

provision of other services.

	2025	2024
	$million	$million
Audit fees for the Standard Chartered PLC Group statutory audit	36.9	31.3
Of which fees for the statutory audit of Standard Chartered Bank Group	27.3	23.2
Fees payable to EY for other services provided to the Standard Chartered Bank Group:
Audit of Standard Chartered Bank subsidiaries	8.9	8.1
Total Audit fees	45.8	39.4
Audit -related assurance services	4.9	4.1
Other assurance services	4.9	4.8
Other non-audit services	1.3	0.4
Transaction related services	0.6	0.6
Total fees payable	57.5	49.3

The following is a description of the type of services included within the categories listed above:

• Audit fees for the Group statutory audit are in respect of fees payable to EY LLP for the statutory audit of the consolidated

financial statements of the Group and the separate financial statements of Standard Chartered PLC

• Audit-related fees consist of fees such as those for services required by law or regulation to be provided by the auditor,

reviews of interim financial information, reporting on regulatory returns, reporting to a regulator on client assets and

extended work performed over financial information and controls authorised by those charged with governance

• Other assurance services include agreed-upon-procedures in relation to statutory and regulatory filings

• Transaction related services are fees payable to EY LLP for issuing comfort letters.

Expenses incurred in respect of their role as auditors were reimbursed to EY LLP $1 million (2024: $1 million).

37. Remuneration of directors

This table sets out salary (including salary shares), pension and benefits received in 2025 and variable remuneration awards

received in respect of 2025.

	2025 1	2024 2
	£million	£million
Salaries and fees	7,401	8,707
Pension	349	457
Benefits	635	539
Annual incentive	5,464	4,418
Vesting of LTIP awards	8,364	7,932
Total fees payable	22,213	22,053

1 Following shareholder approval of the new remuneration policy at the May 2025 AGM, Bill Winters and Diego De Giorgi’s salaries reduced by 40 per cent and 33

per cent respectively, effective from 1 April 2025.

2 The values of vesting 2022-24 LTIP awards have been restated based on the final vesting outcome of 88 per cent and actual share price of £11.908 when the

awards vested in March 2025.

Additional information on the remuneration elements in the above single total figure table.

Salaries and fees

The total salaries of the three directors as at 1 January 2025 (or the date of appointment, if later) was £5,117,000. From

1 January to 31 March 2025, two of the directors received their salary paid part in cash and part in shares which are subject to

a retention period and released pro rata over five years. The number of salary shares allocated was determined based on the

monetary value and the prevailing market price of the Group’s shares on the date of allocation. Following shareholder approval

of the new remuneration policy at the May 2025 AGM, Bill Winters and Diego De Giorgi’s salaries reduced by 40 per cent and

33 per cent respectively, effective from 1 April 2025 and all three salaries are now paid fully in cash.

The emoluments, including share-based payments and other benefits, of the highest paid director during 2025 were £12,694,475

(2024: £12,694,475). There were employer pension contributions for the highest paid director during 2025 of £175.425

(2024: £251,700).

The total annualised fees of the Chairman and directors as at 1 January 2025 (or the date of appointment, if later) were

£3,442,158. There is no apportionment of remuneration between Standard Chartered Bank and Standard Chartered PLC.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 192

37. Remuneration of directors continued

Share awards

No directors exercised share awards over Standard Chartered PLC during the year.

Pension and benefits

An explanation of pension and benefits for those directors who are also executive directors of the PLC Group can be found in

the SC PLC Group’s 2025 Directors’ remuneration report on pages 182 to 185. The directors who are also employees of the PLC

Group received a flexible benefits allowance in alignment with the UK workforce to include a mixture of core pension and

benefits provision, including private medical cover, life assurance and permanent health insurance. Some directors use a Group

car service for travelling and, in some circumstances, were accompanied by their spouses to attend events.

From 2025 for those directors who are also employees of the PLC Group, 30 per cent of annual incentive awards will be in

deferred share awards, to be delivered pro-rata over three years. The proportion deferred will fall to 15 per cent over 3 years

once an executive director has met their shareholding requirement.

Vesting of LTIP awards

The long-term incentive plan (LTIP) awards granted in March 2022 vested in March 2025, based on performance over the years

2022 to 2024. 88 per cent of these awards vested.

The LTIP awards granted in March 2023 are due to vest in March 2026, based on performance over the years 2023 to 2025.

Following an assessment of the performance measures (RoTE with CET1 underpin, relative TSR, sustainability and strategic

measures), the projected outcome of these awards is 88 per cent. The final assessment of the relative TSR performance will be

conducted in March 2026, the end of the three-year performance period. Based on a share price of £15.95, the three-month

average to 31 December 2025, the projected value to be delivered to the directors is £8,363,962.

The highest paid director has not exercised any share options during the year.

An LTIP award of 816,213 shares was made in May 2025 to the highest paid director, at a share price of £10.675 (adjusted for loss

of dividend), which are subject to the satisfaction of stretching RoTE, relative TSR and sustainability performance measures over

three years (2025 to 2027).

Other disclosures

The remuneration policy and practices applying to the Material Risk Taker employees of the Bank are the same as those

applied by the SC PLC Group which are set out in the SC Pillar 3 report on pages 115 to 119.

Further information on the remuneration for those directors who are also executive directors of the PLC Group can be found in

the PLC Group’s 2025 Directors’ remuneration report on pages 180 to 183.

38. Post balance sheet events

There have been no material events after the reporting date that require disclosure or adjustment in these financial statements.

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 193

39. Related undertakings of the Group

As at 31 December 2025, the Group’s interests in related

undertakings in accordance with Section 409 of the Companies

Act 2006 are disclosed below. Unless otherwise stated, the

share capital disclosed comprises ordinary or common shares

which are held by subsidiaries of the Group. Unless otherwise

indicated, all related undertakings are held indirectly.

Subsidiary Undertakings

	Proportion of
	shares held
Name	(%)	Footnotes
SC (Secretaries) Limited ix	100	1
SCMB Overseas Limited v	100	1, 151
Standard Chartered Africa Limited v	100	1, 151
Standard Chartered Bank i	100; 100 Q,T	1
Standard Chartered Foundation ix	100	1, 146
Standard Chartered Health Trustee (UK)
Limited ix	100	1
Standard Chartered Nominees (Private
Clients UK) Limited i	100	1
Standard Chartered Securities (Africa)
Holdings Limited v	100	1, 151
Standard Chartered Trustees (UK) Limited ix	100	1
Bricks (C&K) LP ix	100 Y	2, 146
Bricks (C) LP ix	100 Y	2, 146
Bricks (T) LP ix	100 Y	2, 146
Corrasi Covered Bonds LLP ix	75 AA	3
Standard Chartered Grindlays Pty Limited v	100	5
Standard Chartered Bank Insurance Agency
(Proprietary) Limited i	100	7
Standard Chartered Investment Services
(Proprietary) Limited i	100	7
Standard Chartered Bank Botswana
Limited i	75.827	7
Standard Chartered Botswana Nominees
(Proprietary) Limited i	100	7
Standard Chartered Botswana Education
Trust ix	100 AB	7
Standard Chartered Representação e
Participações Ltda i	100	8
Standard Chartered Securities (B) Sdn Bhd i	100	97
SCB Investment Holding Company Limited v	100 A	102
Standard Chartered Global Business
Services Co., Ltd vii	100	12, 148
Standard Chartered Global Business
Services (Guangzhou) Co., Ltd. vii	100	109, 148
Standard Chartered Bank Cote d’Ivoire SA ix	100	14
Standard Chartered Bank AG i	100	16
Standard Chartered Bank Ghana PLC i	69.416;
	87.043 T	18
Standard Chartered Ghana Nominees Limited i	100	18
Standard Chartered Wealth Management
Limited Company i	100	19
Standard Chartered PF Real Estate (Hong
Kong) Limited v	100	75
Standard Chartered Private Equity Limited v	100	20
Standard Chartered Asia Limited v	100; 100 AD	20
Standard Chartered Global Business
Services Private Limited viii	100	22

	Proportion of
	shares held
Name	(%)	Footnotes
Standard Chartered Finance Private Limited viii	98.895	23
Standard Chartered Capital Limited i	100	138
Standard Chartered Securities (India) Limited i	100	87
Standard Chartered (India) Modeling and Analytics Centre Private Limited viii	100	26
Standard Chartered Assurance Limited i	100; 100 M	29
Standard Chartered Isle of Man Limited i	100	29
Standard Chartered Securities (Japan)
Limited i	100	30
SCB Nominees (CI) Limited i	100	31
Standard Chartered Bancassurance
Intermediary Limited i	100	32
Standard Chartered Investment Services
Limited v	100	32
Standard Chartered Bank Kenya Limited i	74.318;
	100 J	32
Standard Chartered Securities (Kenya)
Limited i	100	32
Standard Chartered Financial Services Limited i	100	32
Standard Chartered Kenya Nominees Limited i	100	32
Standard Chartered Metropolitan Holdings
SAL v	100 A	33
Cartaban (Malaya) Nominees Sdn Berhad i	100	34
Cartaban Nominees (Asing) Sdn Bhd i	100	34
Cartaban Nominees (Tempatan) Sdn Bhd i	100	34
Golden Maestro Sdn Bhd v	100	34
Price Solutions Sdn Bhd i	100	34
SCBMB Trustee Berhad ix	100	34
Standard Chartered Bank Malaysia Berhad i	100; 100 S	34
Standard Chartered Saadiq Berhad i	100	34
Resolution Alliance Sdn Bhd v	91	35, 146
Standard Chartered Global Business
Services Sdn Bhd viii	100	103
Standard Chartered Bank (Mauritius)
Limited i	100	38
Standard Chartered Private Equity
(Mauritius) Limited i	100	101
Standard Chartered Private Equity
(Mauritius) II Limited i	100	101
Standard Chartered Private Equity
(Mauritius) lll Limited i	100	101
Subcontinental Equities Limited v	100	39
Standard Chartered Bank Nepal Limited i	70.21	40
Standard Chartered Holdings (Africa) B.V. v	100	1, 149
Standard Chartered Holdings (Asia Pacific) B.V. v	100	1, 149
Standard Chartered Holdings
(International) B.V. v	100	1, 149
Standard Chartered MB Holdings B.V. v	100	1, 149
Standard Chartered Bank Nigeria Limited i	100; 100 N,T	42
Standard Chartered Capital & Advisory
Nigeria Limited i	100	42
Standard Chartered Nominees (Nigeria)
Limited i	100	42
Standard Chartered Bank (Pakistan) Limited i	98.986	43
Standard Chartered Group Services, Manila
Incorporated viii	100	44

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 194

39. Related undertakings of the Group

continued

	Proportion of
	shares held
Name	(%)	Footnotes
Standard Chartered Global Business
Services spółka z ograniczoną
odpowiedzialnością viii	100	45
Standard Chartered Capital (Saudi Arabia) i	100	104
Standard Chartered Real Estate Investment
Holdings (Singapore) Private Limited v	100	46
Raffles Nominees (Pte.) Limited i	100	47
SCTS Capital Pte. Ltd i	100	48
SCTS Management Pte. Ltd. i	100	48
Standard Chartered Bank (Singapore)
Limited i	100 A,B,C,U,V,W	48
Standard Chartered Trust (Singapore)
Limited ix	100	48
Standard Chartered Holdings (Singapore)
Private Limited v	100	48
Standard Chartered Nominees (Singapore)
Pte Ltd i	100	48
Trust Bank Singapore Limited i	60	118
Standard Chartered Nominees South Africa
Proprietary Limited (RF) i	100	52
Standard Chartered Bank Tanzania Limited i	100; 100 J	53
Standard Chartered Tanzania Nominees
Limited i	100	53
Standard Chartered Bank (Thai) Public
Company Limited i	99.871	54
Standard Chartered Yatirim Bankasi Turk
Anonim Sirket ii	100	55
Standard Chartered Bank Uganda Limited i	100	56
Standard Chartered Bank International
(Americas) Limited i	100	100
Standard Chartered Holdings Inc. v	100	61
Standard Chartered Securities (North
America) LLC i	100 AA	61
Standard Chartered Trade Services
Corporation i	100	83
Standard Chartered Bank (Vietnam) Limited i	100 X	64
Sky Harmony Holdings Limited v	100	106
Standard Chartered Bank Zambia Plc i	90	107
Standard Chartered Zambia Securities
Services Nominees Limited i	100	125
CMB Nominees (RF) Proprietary Limited ix	100	52
Standard Chartered Funds VCC ix	100	48
Standard Chartered Luxembourg S.A. i	100	95
Berkeley Square Finance 1 Designated
Activity Company i	100	112
Slate One LLC i	100	94
Actis Treit Holdings (Mauritius) Limited v	62.001 A,B	134, 146
Actis Treit Holdings No.1 (Singapore) Private
Limited v	100	141, 146
Actis Treit Holdings No.2 (Singapore) Private
Limited v	100	141, 146

Fellow Subsidiaries

	Proportion of
	shares held
Name	(%)	Footnotes
FinVentures UK Limited v	100	1, 151
SC Ventures G.P. Limited v	100	1
SC Ventures Innovation Investment L.P. v	100 Y	1
Standard Chartered I H Limited v	100	1, 151
Standard Chartered Strategic Investments
Limited v	100	1, 151
SC Ventures Holdings Limited v	100; 100 M	1
Zodia Markets (UK) Limited i	100	1
Zodia Markets Holdings Limited v	83.96	1
Zodia Custody Limited iv	95.1;
	15.132 K	96
Zodia Holdings Limited v	100 A	96
Assembly Payments UK Ltd iv	100	4, 146
CurrencyFair (UK) Limited i	100	4, 146
Zai Technologies Limited iv	100	4, 146
Assembly Payments Australia Pty Ltd iv	100	119, 146
Zai Australia Pty Ltd iv	100	11
CurrencyFair Australia Pty Ltd iv	100	6, 146
CurrencyFair (Canada) Ltd iv	100	10, 146
Guangzhou CurrencyFair Information
Technology Limited iv	100	13,146,147
Solvezy Technology Ghana Ltd iv	100	17
CurrencyFair Asia Limited iv	100	85, 146
Zodia Custody (Hong Kong) Limited iv	100	120
Assembly Payments India Private Limited iv	100	86
SCV Research and Development Pvt. Ltd. iv	100	105
PT Labamu Sejahtera Indonesia iv	100	27
CurrencyFair Limited iv	100	135, 146, 153
CurrencyFair Nominees Limited iv	100	133, 146
Zodia Markets (Ireland) Limited i	100	121
Zodia Custody (Ireland) Limited iv	100	122
Solvezy Technology Kenya Limited iv	100	32
Assembly Payments Malaysia Sdn. Bhd. iv	100	37, 146
PromisePay Limited iv	100	41, 146
Standard Chartered Private Equity
(Singapore) Pte. Ltd v	100	46
Audax Financial Technology Pte. Ltd iv	100 A	132
CashEnable Pte. Ltd. iv	100 A	131
Letsbloom Pte. Ltd. iv	100 A	84
Libeara (Singapore) Pte. Ltd. iv	100	84
Libeara Pte. Ltd. v	100	84
SCV Research and Development Pte. Ltd. iv	100 A	143
Zodia Custody (Singapore) Pte. Ltd. iv	100	143
Power2SME Pte. Ltd. v	91.577	131
SCV Master Holding Company Pte. Ltd. v	100; 100 M	131
Solv-India Pte. Ltd. v	100	131
CurrencyFair (Singapore) Pte.Ltd iv	100	49, 146
Assembly Payments SGP Pte. Ltd. iv	100	50, 146
Assembly Payments Pte. Ltd. iv	100; 100 J	50, 146
Furaha Finserve Uganda Limited i	100	57
Appro Onboarding Solutions FZ-LLC iv	100	58
Financial Inclusion Technologies Ltd v	100 A	88
Furaha Holding Ltd v	100; 100 B	59
myZoi Financial Inclusion Technologies LLC iv	100	60

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 195

39. Related undertakings of the Group

continued

	Proportion of
	shares held
Name	(%)	Footnotes
CurrencyFair (USA) Inc iv	100 AC	63, 146
Stanchart Nominees Limited i	100	1, 152
Standard Chartered Holdings Limited v	100	1, 147, 151, 152
Standard Chartered NEA Limited v	100	1, 147, 151
Standard Chartered Nominees Limited i	100	1, 152
Standard Chartered (Guangzhou) Business
Management Co., Ltd. ii	100	108, 147, 148
Standard Chartered Bank (China) Limited i	100	69, 147, 148
Standard Chartered Securities (China) Limited i	100	70, 147, 148
Horsford Nominees Limited i	100	71
Marina Acacia Shipping Limited vi	100	72
Marina Amethyst Shipping Limited vi	100	72
Marina Angelite Shipping Limited vi	100	72
Marina Beryl Shipping Limited vi	100	72
Marina Emerald Shipping Limited vi	100	72
Marina Flax Shipping Limited vi	100	72
Marina Gloxinia Shipping Limited vi	100	72
Marina Hazel Shipping Limited vi	100	72
Marina Ilex Shipping Limited vi	100	72
Marina Iridot Shipping Limited vi	100	72
Marina Mimosa Shipping Limited vi	100	72
Marina Moonstone Shipping Limited vi	100	72
Marina Peridot Shipping Limited vi	100	72
Marina Sapphire Shipping Limited vi	100	72
Marina Tourmaline Shipping Limited vi	100	72
Standard Chartered Securities (Hong Kong)
Limited i	100	72
Marina Leasing Limited vi	100	72
Standard Chartered Leasing Group Limited v	100	72
Standard Chartered Trade Support (HK)
Limited i	100	72
Mox Bank Limited i	74.36	73
Standard Chartered Bank (Hong Kong) Limited i	100 A,B,C,D	74
Standard Chartered Trustee (Hong Kong)
Limited ix	100	76
Standard Chartered Funding (Jersey) Limited v	100	77
Standard Chartered Bank Korea Limitedi	100	78
Standard Chartered Securities Korea Co., Ltd i	100	79
Marina Morganite Shipping Limited vi	100	113, 150
Marina Moss Shipping Limited vi	100	113, 150
Marina Tanzanite Shipping Limited vi	100	113, 150
Marina Angelica Shipping Limited vi	100	80, 150
Marina Aventurine Shipping Limited vi	100	80, 150
Marina Citrine Shipping Limited vi	100	80, 150
Marina Dahlia Shipping Limited vi	100	80, 150
Marina Dittany Shipping Limited vi	100	80, 150
Marina Lilac Shipping Limited vi	100	80, 150
Marina Lolite Shipping Limited vi	100	80, 150
Marina Obsidian Shipping Limited vi	100	80, 150
Marina Quartz Shipping Limited vi	100	80, 150
Marina Remora Shipping Limited vi	100	80, 150
Marina Turquoise Shipping Limited vi	100	80, 150

	Proportion of
	shares held
Name	(%)	Footnotes
Marina Zircon Shipping Limited vi	100	80, 150
Price Solution Pakistan (Private) Limited i	100	81
Standard Chartered Bank (Taiwan) Limited i	100	82
Letsbloom India Private Limited iv	100	90
Qatalyst Pte. Ltd. iv	72.727	131
Solv Vietnam Company Limited iv	100 X	91
TASConnect (Hong Kong) Private Limited iv	100	92
TASConnect (Malaysia) Sdn. Bhd. iv	100	36
TASConnect (Shanghai) Financial
iv	100	136, 148
Technology Pte. Ltd
Zodia Custody Australia Pty. Ltd. iv	100	114
Zodia Markets (AME) Limited iv	100	115
Zodia Markets (Jersey) Limited iv	100	117
Fourtwothree Pte. Ltd iv	100	84
HAL Holding Ltd iv	100	140
Zodia Custody (Europe) S.A. iv	100	116
Anchorpoint Financial Limited iv	50.5	20
Appro Marketing Solutions L.L.C iv	100	126
CFZ Holding Limited iv	29.96;100 A	135
Currencyfair Group Limited iv	100	135,146
Nusavest Pte. Ltd. iv	100	131
Regwise Ltd iv	100	145
Standard Chartered Services Holdings Limited v	100	1
Standard Chartered Services Limited viii	100	1
Tungsten Custody Solutions FZE iv	100	93
Tungsten Custody Solutions Ltd iv	100	62
Tungsten Holding Limited iv	100	62
Zodia Markets Technology Services FZCO iv	0.1	25

Associates

	Proportion of
	shares held
Name	(%)	Footnotes
Clifford Capital Holdings Pte. Ltd. v	9.9	98
Verified Impact Exchange Holdings Pte. Ltd i	13	99
Seychelles International Mercantile Banking
Corporation Limited. i	22	65

Significant investment holdings and

other related undertakings

	Proportion of
	shares held
Name	(%)	Footnotes
Corrasi Covered Bonds (LM) Limited i	20	3, 146
ATSC Cayman Holdco Limited v	5.272 A ;100 B	127
Actis Temple Stay Holdings (HK) Limited v	39.689 A ;
	39.689 B	128, 146
Mikado Realtors Private Limited ix	26	129
Industrial Minerals and Chemical Co. Pvt. Ltd ix	26	142
Paxata, Inc. iii	40.74 O ;
	8.908 P	63

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 196

39. Related undertakings of the Group

continued

In liquidation

	Proportion of
	shares held
Name	(%)	Footnotes
Subsidiary Undertakings
Standard Chartered Masterbrand Licensing
Limited ix	100	110
Birdsong Limited ix	100	66
Nominees One Limited ix	100	66
Nominees Two Limited ix	100	66
Songbird Limited ix	100	66
Standard Chartered Secretaries (Guernsey)
Limited ix	100	66
Standard Chartered Trust (Guernsey) Limited ix	100	66
Standard Chartered Financial Services
(Luxembourg) S.A. ix	100	67
Banco Standard Chartered en Liquidacion ix	100	111
Standard Chartered Uruguay
Representacion S.A. ix	100	68
SC Transport Leasing 1 LTD ix	100	130
SC Transport Leasing 2 Limited ix	100	130
Standard Chartered Leasing (UK) Limited ix	100	130
Fellow Subsidiaries
Standard Chartered Trust (Hong Kong)
Limited i	100	76

Subsidiary/Associate undertakings and Significant

investment holdings – Liquidated/dissolved/sold

	Proportion of
	shares held
Name	(%)	Footnotes
Subsidiary Undertakings
The SC Transport Leasing Partnership 1 vi	100 Y	1
The SC Transport Leasing Partnership 2 vi	100 Y	1
The SC Transport Leasing Partnership 3 vi	100 Y	1
The SC Transport Leasing Partnership 4 vi	100 Y	1
Standard Chartered Bank Cameroon S.A. i	100	9
Standard Chartered Bank Gambia Limited i	74.852	15
Standard Chartered Leasing (UK) 3 Limited vi	100	144
Cerulean Investments LP ix	100 Y	144
Standard Chartered IL&FS Management
(Singapore) Pte. Limited ix	50	51
St Helen’s Nominees India Private Limited i	100	24
Standard Chartered Private Equity Advisory
(India) Private Limited viii	100	24
Fellow Subsidiaries
Assembly Payments HK Limited iv	100	21, 146
Standard Chartered Research and Technology India Private Limited iv	100 A,R	123
CurrencyFair (Canada) Limited iv	100	28,146
Tawi Fresh Kenya Limited iv	100	32
Pegasus Dealmaking Pte. Ltd. iv	100	143
Promisepay (PTY) Ltd iv	100	124, 146
Marina Partawati Shipping Pte. Ltd. vi	100	137
SC Ventures Management Consulting
(Shenzhen) Limited ix	100	139, 147
Marina Opah Shipping Pte. Ltd. vi	100	144

	Proportion of
	shares held
Name	(%)	Footnotes
Marina Cobia Shipping Pte. Ltd. vi	100	144
Marina Aquata Shipping Pte. Ltd. vi	100	144
Marina Aruana Shipping Pte. Ltd. vi	100	144
Associates
Fintech for International Development Ltd
(In Liquidation 03/01/2024) ix	58.901 A	89

Footnotes

Registered address

	Address
1	1 Basinghall Avenue, London, EC2V 5DD, United Kingdom
2	2 More London Riverside, London, SE1 2JT, United Kingdom
3	5 Churchill Place, 10 th floor, London, E14 5HU, United Kingdom
4	Robert Denholm House, Bletchingly Road, Nutfield, Redhill,
	RH1 4HW, United Kingdom
5	Level 5, 345	George St, Sydney NSW 2000, Australia
6	Milsons Landing, Level 5, 6A Glen Street, Milsons Point NSW
	2061,	Australia
7	5 th Floor Standard House Bldg, The Mall, Queens Road, PO
	Box 496, Gaborone, Botswana
8	Avenida Brigadeiro Faria Lima, no 3.477, 6 o andar, conjunto
	62 – Torre Norte, Condominio Patio Victor Malzoni, CEP
	04538-133, Sao Paulo, Brazil
9	1155,	Boulevard de la Liberté, Douala, B.P. 1784, Cameroon
10	66 Wellington Street, West, Suite 4100, Toronto Dominion
	Centre, Toronto ON M5K 1B7, Canada
11	Level 1, 55 Collins Street, Melbourne VIC 3000, Australia
12	No. 35, Xinhuanbei Road, TEDA, Tianjin, 300457, China
13	Room 2619,	No 9, Linhe West Road, Tianhe District,
	Guangzhou, China
14	Standard Chartered Bank Cote d’Ivoire, 23 Boulevard de la
	République, Abidjan 17, 17 B.P. 1141, Cote d’Ivoire
15	8 Ecowas Avenue, Banjul, Gambia
16	TaunusTurm, Taunustor 1, 60310, Frankfurt am Main, Germany
17	Standard Chartered Bank Building, 87 Independance Avenue,
	Ridge, ACCRA, Greater ACCRA, GA-016-4621, Ghana
18	Standard Chartered Bank Building, No. 87, Independence
	Avenue, P.O. Box 768, Accra, Ghana
19	Standard Chartered Bank Ghana Limited, 87, Independence
	Avenue, Post Office Box 678, Accra, Ghana
20	13/F Standard Chartered Bank Building, 4-4A Des Voeux
	Road Central, Hong Kong
21	31/F, Tower 2 Times Square, 1 Matheson St, Causeway Bay,
	Hong Kong
22	6 th Floor, Tower 3, DLF Downtown, 100 Feet Road,
	Tharamani, Chennai, Tamil Nadu, 600113, India
23	90 M.G.Road, II Floor, Fort, Mumbai, Maharashtra, 400001,
	India
24	Ground Floor, Crescenzo Building, G Block, C 38/39, Bandra
	Kurla Complex, Bandra (East), Mumbai, Maharashtra,
	400051,	India
25	Unit RET-R5-186, Detached Retail R5,, Plot No: JLT-PH 2 -
	RET-R5, Jumeirah, United Arab Emirates
26	Vaishnavi Serenity, First Floor, No. 112, Koramangala
	Industrial Area, 5 th Block, Koramangala, Bangalore,
	Karnataka, 560095, India
27	The Icon Business Park Blok F No. 5, Desa/Kelurahan, Sampora
	Kec, Cisauk, Kab Tangerang Provinsi, Banten, 15345, Indonesia
28	91 Pembroke Road, Dublin 4, Ballsbridge, Dublin, DO4 EC42,
	Ireland

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 197

39. Related undertakings of the Group

continued

	Address
29	Third Floor, St. George’s Court, Upper Church Street, Douglas,
	IM1 1EE, Isle of Man
30	21/F, Sanno Park Tower, 2-11-1 Nagatacho, Chiyoda-ku,
	Tokyo, 100-6155, Japan
31	15 Castle Street, St Helier, JE4 8PT, Jersey
32	Standard Chartered@Chiromo, 48 Westlands Road, P. O.
	Box 30003 –	00100,	Nairobi, Kenya
33	Atrium Building, Maarad Street, 3 rd Floor, P.O. Box 11-4081
	Raid El Solh, Beirut Central District, Lebanon
34	Level 25, Equatorial Plaza, Jalan Sultan Ismail, 50250 Kuala
	Lumpur, Malaysia
35	Suite 18-1, Level 18, Vertical Corporate Tower B, Avenue 10,
	The Vertical, Bangsar South City, No. 8, Jalan Kerinchi,
	59200	Kuala Lumpur, Wilayah Persekutuan, Malaysia
36	Level 7, Mercu 3. No. 3, Jalan Bangsar, KL ECO City, 59200
	Kuala Lumpur, Malaysia
37	Level 13, Menara 1 Sentrum 201, Jalan Tun Sambanthan,
	Brickfields, 50470 Kuala Lumpur, Malaysia
38	6 th Floor, Standard Chartered Tower, 19, Bank Street,
	Cybercity, Ebene, 72201, Mauritius
39	Mondial Management Services Ltd, Unit 2L, 2 nd Floor
	Standard Chartered Tower, 19 Cybercity, Ebene, Mauritius
40	Standard Chartered Bank Nepal Limited, Madan Bhandari
	Marg. Ward No.31, Kathmandu Metropolitan City, Kathmandu
	District, Bagmati Province, Kathmandu, 44600, Nepal
41	PromisePay, 4 All good Place, Rototuna North, Hamilton,
	3210,	New Zealand
42	142, Ahmadu Bello Way, Victoria Island, Lagos, 101241, Nigeria
43	P.O. Box No. 5556, I.I. Chundrigar Road, Karachi, 74000,
	Pakistan
44	8 th Floor, Makati Sky Plaza Building 6788, Ayala Avenue San
	Lorenzo, City of Makati, Fourth District, National Capi, 1223,
	Philippines
45	Rondo Ignacego Daszyńskiego 2B, 00-843, Warsaw, Poland
46	8 Marina Boulevard, #25-01 Marina Bay Financial Centre,
	018981,	Singapore
47	7 Changi Business Park Crescent, #03-00 Standard
	Chartered @ Changi, 486028, Singapore
48	8 Marina Boulevard, #27-01 Marina Bay Financial Centre
	Tower 1, 018981,	Singapore
49	1 Robinson Road, #17-00, AIA Tower, 048542, Singapore
50	38 Beach Road, #29-11 South Beach Tower, 189767,
	Singapore
51	Abogado Pte Ltd, No. 8 Marina Boulevard, #05-02 MBFC
	Tower 1, 018981,	Singapore
52	2 nd Floor, 115 West Street, Sandton, Johannesburg, 2196,
	South Africa
53	1 Floor, International House, Shaaban Robert Street/Garden	Avenue, PO Box 9011, Dar Es Salaam, Tanzania, United
	Republic of
54	No. 140, 11 th , 12 th and 14 th Floor, Wireless Road, Lumpini,
	Patumwan, Bangkok, 10330, Thailand

	Address
55	Buyukdere Cad. Yapi Kredi Plaza C Blok, Kat 15, Levent,
	Istanbul, 34330, Turkey
56	Standard Chartered Bank Bldg, 5 Speke Road, PO Box 7111,
	Kampala, Uganda
57	14 Mackinnon Road, Nakasero, Kampala, 141769, Uganda
58	Arjaan Office Towers, Office 105, Dubai Media City, United
	Arab Emirates
59	Unit IH-00-01-07-OF-05, Level 7, IH-00-01-CP-05, Dubai
	International Financial Centre, Dubai, United Arab Emirates
60	Part of Level 15, Standard Chartered Bank Building, Plot 8,
	Burj Downtown, Dubai, United Arab Emirates
61	Corporation Trust Center, 1209 Orange Street, Wilmington
	DE 19801,	United States
62	Office 1809, 18	Floor Sky Tower, Shams Abu Dhabi, Al Reem
	Island, Abu Dhabi, United Arab Emirates
63	251	Little Falls Drive, Wilmington DE 19808, United States
64	Level 3, #CP1.L01 and CP2.L01, Capital Place, 29 Lieu Giai,
	Ngoc Ha Ward, Hanoi, 10000, Vietnam
65	Victoria House, State House Avenue, Victoria, MAHE,
	Seychelles
66	Bucktrout House, Glategny Esplanade, St Peter Port, GY1
	3HQ, Guernsey
67	30 Rue Schrobilgen, 2526, Luxembourg
68	Luis Alberto de Herrera 1248, Torre II, Piso 11, Esc. 1111, Uruguay
69	Standard Chartered Tower, 201 Century Avenue, Pudong,
	Shanghai, 200120,	China
70	1201 1-2, 15-16, 12/F, Unit No.1, Building No.1, No. 1 Dongsanhuan
	Zhong Road, Chaoyang District, Beijing, China
71	18/F., Standard Chartered Tower, 388 Kwun Tong Road,
	Kwun Tong, Kowloon, Hong Kong
72	15/F., Two International Finance Centre, No. 8 Finance
	Street, Central, Hong Kong
73	39/F., Oxford House, Taikoo Place, 979 King’s Road, Quarry
	Bay, Hong Kong
74	32/F., 4-4A Des Voeux Road, Central, Hong Kong
75	14 th Floor, One Taikoo Place, 979 King’s Road, Quarry Bay,
	Hong Kong
76	14/F, Standard Chartered Bank Building, 4-4A Des Voeux
	Road, Central, Hong Kong
77	IFC 5, St Helier, JE1 1ST, Jersey
78	47, Jong-ro, Jongno-gu, Seoul, 110-702, Korea, Republic of
79	2F, 47, Jong-ro, Jongno-gu, Seoul, Korea, Republic of
80	Trust Company Complex, Ajeltake Road, Ajeltake Island,
	Majuro, MH96960, Marshall Islands
81	3 rd Floor Main SCB Building, I.I Chundrigar Road, Karachi,
	Sindh, 74000,	Pakistan
82	1F, No.177 & 3F-6F, 18F, No.179, Liaoning Street, Zhongshan
	Dist., Taipei, 104, Taiwan (Province of China)
83	C/O Corporation Service Company, 251 Little Falls Drive,
	Wilmington DE 19808, United States
84	16 Raffles Quay, #16-02, Hong Leong Building, 048581,
	Singapore
85	Suite 12100,	12/F., YF Life Tower, 33 Lockhart Road, Wan
	Chai, Hong Kong
86		1 st Floor, UB Plaza, No. 1 & 2, Vittal Mallya Road, Bengalur, India

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 198

39. Related undertakings of the Group

continued

	Address
87	12 th Floor, Crescenzo Business District,, Plot no. C-38/39,
	G-Block,, Bandra – Kurla Complex, Bandra East,, Mumbai,
	Maharashtra, 400051, India
88	16 th Floor, WeWork Hub 71, Al Khatem Tower, ADGM
	Square, Al Maryah Island, Abu Dhabi, United Arab Emirates
89	Parker Andrews Ltd, 5 th Floor. The Union Building, 51-59 Rose
	Lane, Norwich, NR1 1BY
90	Unit 1 – 127A, WeWork Futura, Magarpatta Road, Kirtane
	Baug, Hadpsar I.E., Pune – 411013, Maharashtra, India
91	L17-11, Floor 17, Vincom Center, 72 Le Thanh Ton, Ben Nghe
	Ward, District 1, Ho Chi Minh City, Vietnam
92	30 th floor, One Taikoo Place, 979 King’s Road, Hong Kong,
	Hong Kong
93	5.01 and 5.02 Convention Tower, DWTC, Dubai, United
	Arab Emirates
94	Al Tamimi & Company International Limited, Tornado
	Tower, No. 17, 19 th Floor, Doha, Qatar
95	53 Boulevard Royal, Grand Duchy of Luxembourg, 2449,
	Luxembourg
96	1 st Floor, 6-8 Eastcheap, London, EC3M 1AE
97	G01-02, Wisma Haji Mohd Taha Building,, Jalan Gadong,
	BE4119,		Brunei Darussalam
98	38 Beach Road, #19-11 South Beach Tower, 189767, Singapore
99	10 Marina Boulevard #08-08, Marina Bay Financial Centre,
	018983,		Singapore
100	1095	Avenue of Americas, New York City NY 10036,
	United States
101	c/o Ocorian Corporate Services (Mauritius) Ltd, 6 th Floor,
	Tower A,1, Exchange Square, Wall Street, Ebene, Mauritius
	–	72201,	Mauritius
102	c/o Maples Finance Limited, PO Box 1093 GT, Queensgate
	House, Georgetown, Grand Cayman, Cayman Islands
103	Level 1, Wisma Standard Chartered, Jalan Teknologi 8,,
	Taman Teknologi Malaysia, Bukit Jalil,, 57000 Kuala
	Lumpur, Wilayah Persekutuan, Malaysia
104	Al Faisaliah Office Tower Floor No 7 (T07D), King Fahad
	Highway, Olaya District, P.O box 295522, Riyadh, 11351, Saudi
		Arabia
105	No. 2734,		3 rd Floor, Sector – I, HSR Layout, Bangalore, 560102,
	India
106			The Company’s Registered Office, Vistra Corporate Services
			Centre, Wickhams Cay II, Road Town, Tortola, VG1110, Virgin
	Islands, British
107	Standard Chartered House, Stand No. 4642, Corner of		Mwaimwene Road and Addis Ababa Drive, Lusaka, Lusaka,
	10101,	Zambia
108	Units 1101B (Office use only), No. 235 Tianhebei Rd., Tianhe
	District, Guangzhou City, Guangdong Province, China
109	Unit 802B, 803, 1001A,1002B,1003-1005,1101-1105, 201-
	1205,1302C,1303,		No. 235	Tianhe North Road, Tianhe District,
	Guangzhou City, Guangdong Province, China
110	C/O Teneo Financial Advisory Limited, The Colmore
	Building, 20 Colmore Circus, Queensway, Birmingham, B4
	6AT, United Kingdom
111	Jiron Huascar 2055, Jesus Maria, Lima, 15072, Peru
112	10 Earlsfort Terrace, Dublin 2, Dublin, D02 T380, Ireland

	Address
113	TMF Trust Labuan Limited, Brumby Centre, Lot 42, Jalan
	Muhibbah, 87000 Labuan F.T., Malaysia
114	c/o King & Wood Mallesons, Level 61, Governor Phillip
	Tower, 1 Farrer Place, Sydney NSW 2000, Australia
115	2402B,	24 th Floor, Tamouh Tower, Tamouh, Abu Dhabi, Al
	Reem Island, United Arab Emirates
116	2 Place de Paris, 2314, Luxembourg
117	No 1 Grenville Street, St Helier, JE2 4UF, Jersey
118	77 Robinson Road, #25-00 Robinson 77, 068896, Singapore
119	Level 22, 120	Spencer Street, Melbourne VIC 3000, Australia
120	Room 1915,	19/F, Lee Garden One, 33 Hysan Avenue,
	Causeway Bay, Hong Kong
121	One Central Plaza, Temple Bar, Dublin 2, Dublin, D02 EF64,
	Ireland
122	27 Fitzwilliam Street, Dublin, D02 TP23, Ireland
123	No. 2734,	Sector-I, HSR Layout, HSR Layout, Bangalore,
	Bangalore South, Karnataka, 560102, India
124	1 st Floor Building 33, Waterford Office Park, Waterford Drive,
	Fourways, Gauteng, 2191, South Africa
125	Stand No. 4642, Corner of Mwaimwena Road and Addis
	Ababa Drive, Lusaka, 10101, Zambia
126	BurDubai First Business Center Office number B2007-258,
	Dubai, United Arab Emirates
127	Avenue,George Town, Grand Cayman, KY1-9005, Cayman	Intertrust Corporate Services (Cayman) Limited, 190 Elgin
	Islands
128	Unit 605-07, 6/F Wing OnCentre, 111 Connaught Road,
	Central,Sheung Wan, Hong Kong
129	1221	A, Devika Tower, 12 th Floor, 6 Nehru Place, New Delhi 110019
130	The Colmore Building, 20 Colmore Circus, Queensway,
	Birmingham, B4 6AT, United Kingdom
131	9 Raffles Place, #18-21 Republic Plaza, 048619, Singapore
132	Acclime Singapore Pte. Ltd, 9 Raffles Place #18-21, Republic
	Plaza, 048619,	Singapore
133	WeWork, One Central Plaza, Dame Street, Dublin 2, Dublin,
	D02 K7K5, Ireland
134	IQEQ Corporate Services (Mauritius) Ltd, 33, Edith Cavell
	Street, Port Louis, 11324, Mauritius
135	One, Central Plaza, Dame Street, Dublin 2, Dublin, D02
	K7K5, Ireland
136	Level C, No. 888 2 nd Huanhu West Road, Nanhui New Town,
	Pudong New Area, Shanghai, China
137	8 Marina Boulevard, Level 26, Marina Bay Financial Centre,
	Tower 1, 018981,	Singapore
138	12 th Floor, Parinee Crescenzo Building, Plot C-38 & 39, G Block
	Bandra (E) Opp. MCA Ground, Mumbai, 400051, India
139	Unit 8C-17B, Xinlikang Building, 3044 Xinghai Blvd, Nanshan
	District, Shenzhen, China
140	Dedicated desk # 14-123-039, 15 th Floor, Al Khatem Tower,
	ADGM Square, Abu Dhabi, United Arab Emirates
141	6 Battery Road #13-01, 049909, Singapore
142	4thFloor, 274, Chitalia House, Dr. Cawasji Hormusji Road,
	Dhobi Talao, Mumbai City, Maharashtra, India 400 002,
	Mumbai, 400 002, India
143	9 Raffles Place, #26-01 Republic Plaza, 048619, Singapore
144	Ground Floor, Two Dockland Central, Guild Street, North
	Dock, Dublin, D01 K2C5, Ireland
145	100	Longwater Avenue, Reading, Berkshire, RG2 6GP, United
	Kingdom

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 199

39. Related undertakings of the Group

continued

Other notes

	Other notes
146	The Group has determined that these undertakings are
	excluded from being consolidated into the Groups
	accounts, and do not meet the definition of a Subsidiary
	under IFRS. See note 32 for the consolidation policy and
	disclosure of the undertaking.
147	Registered as a Limited company under the Law of China
148	Limited liability company
149	The Group has determined the principal place of operation
	to be United Kingdom
150	The Group has determined the principal place of operation
	to be Hong Kong
151	Company is exempt from the requirements of the
	companies Act relating to the audit of individual accounts
	by virtue of S479A of the Companies Act 2006. Company
	names and associated numbers of the subsidiaries and
	fellow subsidiaries taking an audit exemption for the year
	ended 31 December 2025 are:
	Subsidiaries – SCMB Overseas Limited 01764223, Standard
	Chartered Africa Limited 00002877and Standard
	Chartered Securities (Africa) Holdings Limited 05843604.
	Fellow subsidiaries – Standard Chartered Holdings Limited
	02426156,	Standard Chartered I H Limited 08414408,
	Finventures UK Limited 04275894, Standard Chartered
	Strategic Investments Limited 01388304 and Standard
	Chartered NEA Limited 05345091.
	In line with section 479C of the Companies Act 2006, the
	Parent undertaking (Standard Chartered PLC Company)
	guarantees all outstanding liabilities to which the subsidiary
	company is subject at the end of the financial year	including external liabilities of Finventures UK Limited
	($2.3million) and Standard Chartered NEA Limited
	($22.0million). In line with section 479C of the Companies
	Act 2006,	the Parent undertaking (Standard Chartered
	subsidiary company is subject to at the end of the financial	Bank) guarantees all outstanding liabilities to which the
	year including external liabilities of SCMB Overseas Limited
	($6.3million)
152	Directly held related undertaking
153	Group’s ultimate ownership for CurrencyFair entities is
	43.422%

Description of shares

	Description
A	Class A Ordinary shares
B	Class B Ordinary shares
C Class C Ordinary shares
D Class D Ordinary shares
E	Class A2 shares
F	Class B Shares
G	Class B Equity interest
H	Series A Preferred
I Series B Preferred
J	Preference shares
K	Series A preference shares
L Series B preference shares
M Redeemable preference shares
N	Series B Redeemable preference shares
O	Series C2 preference shares
P	Series C3 preference shares
Q	Redeemable non-cumulative preference shares
R	Compulsory convertible cumulative preference shares
S	Irredeemable convertible preference shares
T	Irredeemable non-cumulative preference shares
U	Class B Non-cumulative preference shares
V Class C Non-cumulative preference shares
W	Class D Non-cumulative preference shares
X Charter capital
Y	Limited Partnership
Z	Partnership Interest
AA	Membership interest
AB	Trust
AC	Uncertificated
AD	Deferred shares
AE	Guarantee

Business activity

	Activity
i	Banking & Financial Services
ii	Commercial real estate
iii	Data Analytics
iv	Digital Venture
v	Investment holding company
vi	Leasing and Finance
vii	Research & development
viii	Support Services
ix	Others

Notes to the financial statements

Directors’ Report and Financial Statements 2025 | Standard Chartered 200

Supplementary financial information

Contractual maturity of Loans, Investment securities and Deposits

2025

Loans and

advances to

banks

$million

Loans and

advances to

customers

$million

Investment

securities –

Treasury and

other eligible

Bills

$million

Investment

securities –

Debt

securities

$million

Investment

securities –

Equity

$million

Bank

deposits

$million

Customer

accounts

$million

One year or less 46,755 117,651 49,518 15,537 – 30,760 301,796

Between one and five years 8,710 46,613 – 47,830 – 4,284 6,560

Between five and ten years 881 13,746 – 10,911 – 4 532

Between ten years and fifteen years 164 6,410 – 4,032 – – 47

More than fifteen years and undated 122 20,677 – 18,887 578 – 10

Total 56,632 205,097 49,518 97,197 578 35,048 308,945

Total amortised cost and FVOCI exposures 24,771 159,254

Of which: Fixed interest rateexposures 19,843 81,749

Of which: Floating interest rateexposures 4,928 77,505

2024

Loans and

advances to

banks

$million

Loans and

advances to

customers

$million

Investment

securities –

Treasury and

other eligible

Bills

$million

Investment

securities –

Debt

securities

$million

Investment

securities –

Equity

$million

Bank

deposits

$million

Customer

accounts

One year or less 41,096 128,508 29,750 15,066 – 26,070 273,937

Between one and five years 10,398 34,276 41 44,835 – 6,223 8,778

Between five and ten years 863 12,832 – 14,157 – 3 301

Between ten years and fifteen years 71 6,712 – 5,760 – – 114

More than fifteen years and undated 238 17,814 – 17,204 1,629 2 11

Total 52,666 200,142 29,791 97,022 1,629 32,298 283,141

Total amortised cost and FVOCI exposures 22,941 158,242

Fixed interest rate exposures 19,349 86,042

Floating interest rate exposures 3,592 72,200

Maturity and yield of Debt securities, alternative tier one and other eligible bills held at amortised cost

One year or less

Between one and

fiveyears

Between five and

tenyears More than ten years Total

$million Yield % $million Yield % $million Yield % $million Yield % $million Yield %

Central and other government

agencies

• US 1,823 1.08 7,694 1.62 1,381 2.15 4,197 2.59 15,095 1.87

• UK 78 0.50 286 2.90 49 0.88 – – 413 2.21

• Other 1,786 3.19 4,528 3.11 1,829 3.51 8 9.78 8,151 3.22

Other debt securities 1,395 6.67 2,426 6.00 4,088 4.86 2,343 – 10,252 5.22

As at 31 December 2025 5,082 3.35 14,934 2.81 7,347 3.99 6,548 3.15 33,911 3.21

One year or less

Between one and

fiveyears

Between five and

tenyears More than ten years Total

$million Yield % $million Yield % $million Yield % $million Yield % $million Yield %

Central and other government

agencies

• US 1,172 1.64 7,070 1.92 3,375 1.54 4,353 2.76 15,970 2.05

• UK 17 0.50 588 1.97 44 0.88 – – 649 1.85

• Other 1,510 3.66 5,882 3.85 1,569 4.46 14 9.62 8,975 3.93

Other debt securities 1,538 6.26 1,747 7.18 3,883 4.88 4,604 5.34 11,772 5.58

As at 31 December 2024 4,237 4.03 15,287 3.26 8,871 3.51 8,971 4.09 37,366 3.61

Supplementary information

Directors’ Report and Financial Statements 2025 | Standard Chartered 201

The maturity distributions are presented in the above table on the basis of contractual maturity dates. The weighted average

yield for each range of maturities is calculated by dividing the annualised interest income for the year by the book amount of

debt securities at that date.

Insured and uninsured deposits

SCB operates and provides services to customers across many countries and insured deposits is determined on the basis of limits

enacted within local regulations.

2025 2024

Insured deposits Uninsured deposits

Total

$million

Insured deposits Uninsured deposits

Total

$million

Bank

deposits

$million

Customer

accounts

$million

Bank

deposits

$million

Customer

accounts

$million

Bank

deposits

$million

Customer

accounts

$million

Bank

deposits

$million

Customer

accounts

$million

Current accounts 10 8,040 21,091 129,483 158,624 8 6,104 17,356 118,803 142,271

Savings deposits – 6,399 – 17,304 23,703 – 6,161 – 17,224 23,385

Time deposits 27 6,657 6,368 108,171 121,223 – 5,646 5,900 93,675 105,221

Other deposits – 51 7,552 32,840 40,443 – 104 9,030 35,426 44,560

Total 37 21,147 35,011 287,798 343,993 8 18,015 32,286 265,128 315,437

UK and non-UK deposits

The following table summarises the split of Bank and Customer deposits into UK and non-UK deposits for respective account

lines based on the domicile or residence of the clients.

2025 2024

UK deposits Non-UK deposits

Total

$million

UK deposits Non-UK deposits

Total

$million

Bank

deposits

$million

Customer

accounts

$million

Bank

deposits

$million

Customer

accounts

$million

Bank

deposits

$million

Customer

accounts

$million

Bank

deposits

$million

Customer

accounts

$million

Current accounts 403 7,241 20,698 130,282 158,624 478 5,751 16,886 119,156 142,271

Savings deposits – 42 – 23,661 23,703 – 40 – 23,345 23,385

Time deposits 566 7,403 5,829 107,425 121,223 315 7,473 5,585 91,848 105,221

Other deposits 950 11,944 6,602 20,947 40,443 2,317 12,795 6,713 22,735 44,560

Total 1,919 26,630 33,129 282,315 343,993 3,110 26,059 29,184 257,084 315,437

Average balance sheets and yields and volume and price variances

Average balance sheets and yields

The following tables set out the average balances for the SC Bank Group’s assets and liabilities for the periods ended

31 December 2025 and 31 December 2024 under the revised definition of net interest margin. For the purpose of these tables,

average balances have been determined on the basis of daily balances, except for certain categories, for which balances have

been determined less frequently. The Group does not believe that the information presented in these tables would be

significantly different had such balances been determined on a daily basis.

Average assets

2025

Average

non-interest

earning

balance

$million

Average

interest

earning

balance

$million

Interest

income

$million

Gross

yield

Gross yield

total balance

Cash and balances at central banks 6,184 59,592 2,105 3.53 3.20

Gross loans and advances to banks 35,124 22,421 1,175 5.24 2.04

Gross loans and advances to customers 52,774 160,398 8,988 5.60 4.22

Impairment provisions against loans and advances to banks and customers – (3,224) – – –

Investment securities – Treasury and Other Eligible Bills 19,271 21,068 1,009 4.79 2.50

Investment securities – Debt Securities 20,172 83,112 3,517 4.23 3.41

Investment securities – Equity Shares 1,397 – – – –

Due from subsidiary undertakings and other related parties – 5,521 94 1.70 1.70

Property, plant and equipment and intangible assets 4,312 – – – –

Prepayments, accrued income and other assets 105,773 – – – –

Investment associates and joint ventures 128 – – – –

245,135 348,888 16,888 4.84 2.84

Adjustment for trading book funding cost and others 788

Total average assets 245,135 348,888 17,676 5.07 2.98

Supplementary information

Directors’ Report and Financial Statements 2025 | Standard Chartered 202

Average balance sheets and yields and volume and price variances continued

Average assets

2024

Average

non-interest

earning

balance

$million

Average

interest

earning

balance

$million

Interest

income

$million

Gross

yield

Gross yield

total balance

Cash and balances at central banks 6,262 55,364 2,500 4.52 4.06

Gross loans and advances to banks 33,338 22,539 1,296 5.75 2.32

Gross loans and advances to customers 44,176 166,285 10,415 6.26 4.95

Impairment provisions against loans and advances to banks and customers – (3,589) – – –

Investment securities – Treasury and Other Eligible Bills 11,204 18,502 1,244 6.72 4.19

Investment securities – Debt Securities 17,532 83,820 3,728 4.45 3.68

Investment securities – Equity Shares 2,201 – – – –

Due from subsidiary undertakings and other related parties – 8,085 127 1.57 1.57

Property, plant and equipment and intangible assets 4,271 – – – –

Prepayments, accrued income and other assets 80,414 – – – –

Investment associates and joint ventures 145 – – – –

199,543 351,006 19,310 5.50 3.51

Adjustment for trading book funding cost and others 582

Total average assets 199,543 351,006 19,892 5.67 3.61

Average liabilities

2025

Average

non-interest

bearing

balance

$million

Average

interest

bearing

balance

$million

Interest

expense

$million

Rate paid

total

balance

Deposits by banks 13,082 22,402 702 3.13 1.98

Customer accounts:

Current accounts 28,097 108,875 3,013 2.77 2.20

Savings deposits – 23,926 471 1.97 1.97

Time deposits 10,647 100,278 4,745 4.73 4.28

Other deposits 36,357 4,591 187 4.07 0.46

Debt securities in issue 11,637 34,491 1,582 4.59 3.43

Due to parent companies, subsidiary undertakings

& other related parties – 34,925 1,942 5.56 5.56

Accruals, deferred income and other liabilities 121,081 794 46 5.79 0.04

Subordinated liabilities and other borrowed funds – 8,390 485 5.78 5.78

Non-controlling interests 818 – – – –

Shareholders’ funds 33,631 – – – –

255,350 338,672 13,173 3.89 2.22

Adjustment for trading book funding cost and others (2,326)

Financial guarantee fees on interest earning assets

Total average liabilities and shareholders’ funds 255,350 338,672 10,847 3.20 1.83

Supplementary information

Directors’ Report and Financial Statements 2025 | Standard Chartered 203

Average liabilities

2024

Average

non-interest

bearing

balance

$million

Average

interest

bearing

balance

$million

Interest

expense

$million

Rate paid

total

balance

Deposits by banks 12,443 20,302 728 3.59 2.22

Customer accounts:

Current accounts 29,308 106,029 1,290 1.22 0.95

Savings deposits – 19,917 570 2.86 2.86

Time deposits 9,454 98,355 4,987 5.07 4.63

Other deposits 34,254 9,428 476 5.05 1.09

Debt securities in issue 11,633 27,857 1,653 5.93 4.19

Due to parent companies, subsidiary undertakings

& other related parties – 29,325 4,573 15.59 15.59

Accruals, deferred income and other liabilities 94,604 572 36 6.29 0.04

Subordinated liabilities and other borrowed funds – 12,975 597 4.60 4.60

Non-controlling interests 1,041 – – – –

Shareholders’ funds 33,052 – – – –

225,789 324,760 14,910 4.59 2.71

Adjustment for trading book funding cost and others (1,898)

Financial guarantee fees on interest earning assets

Total average liabilities and shareholders’ funds 225,789 324,760 13,012 4.01 2.36

Net interest margin

For the purposes of calculating net interest margin the following adjustments are made:

Net interest income is adjusted for trading book funding cost, cash collateral and prime services on interest earning assets,

divided by average interest-earning assets excluding financial assets measured at fair value through profit or loss.

2025

$million

2024

$million

Interest income (reported) 16,888 19,310

Adjustment for trading book funding cost and others 788 582

Interest Income adjusted for trading book funding cost and others 17,676 19,892

Average interest earning assets 348,888 351,006

Gross yield (%) 5.07 5.67

Interest expense (reported) 13,173 14,910

Adjustment for trading book funding cost and others (2,326) (1,898)

Interest expense adjusted for trading book funding cost and others 10,847 13,012

Average interest-bearing liabilities 338,672 324,760

Rate paid (%) 3.20 4.01

Net yield (%) 1.87 1.66

Adjusted net interest income

6,829 6,880

Net interest margin (%) 1.96 1.96

1 Adjusted net interest income has been re-presented in line with the RNS on Re-Presentation of Financial Information issued on 2 April 2025 to reflect the

reclassification of funding cost mismatches to non-net interest income (Non NII). Adjusted NII is reported NII less trading book funding cost, treasury currency

management activities, cash collateral and prime service.

Supplementary information

Directors’ Report and Financial Statements 2025 | Standard Chartered 204

Volume and price variances

The following table analyses the estimated change in the Group’s net interest income attributable to changes in the

averagevolume of interest-earning assets and interest-bearing liabilities, and changes in their respective interest rates

fortheyears presented. Volume and rate variances have been determined based on movements in average balances

andaverageexchange rates over the year and changes in interest rates on average interest-earning assets and average

interest-bearing liabilities.

2025 versus 2024 2024 versus 2023

(Decrease)/increase

in interest due to:

Net

increase/

(decrease)

in interest

$million

(Decrease)/increase

in interest due to:

Net

increase/

(decrease)

in interest

$million

Volume

$million

Rate

$million

Volume

$million

Rate

$million

Interest earning assets

Cash and unrestricted balances at central banks 149 (544) (395) (452) 139 (313)

Loans and advances to banks (6) (115) (121) (121) 242 121

Loans and advances to customers (316) (1,110) (1,426) 421 586 1,007

Investment securities 81 (527) (446) (142) 260 118

Due from subsidiary undertakings and other related parties (44) 10 (34) 47 (50) (3)

Total interest earning assets (136) (2,286) (2,422) (247) 1,177 930

Interest bearing liabilities

Subordinated liabilities and other borrowed funds (265) 153 (112) 29 (34) (5)

Deposits by banks 66 (92) (26) (19) 121 102

Customer accounts:

Current accounts and savings deposits 187 1,447 1,634 90 (1,886) (1,796)

Time and other deposits (137) (393) (530) (156) 654 498

Debt securities in issue 304 (375) (71) (192) 74 (118)

Due to parent companies, subsidiary undertakings & other related parties 311 (2,943) (2,632) 403 2,053 2,456

Total interest bearing liabilities 466 (2,203) (1,737) 155 982 1,137

Return on assets

2025

$million

2024

$million

Profit attributable to shareholders 3,376 2,943

Total assets 593,362 563,534

Return on assets

0.6% 0.5%

1 Represents profit attributable to Parent company shareholders divided by the total assets of the Group.

Supplementary people information

The following table summarises the number of employees within the Group and Company:

Group

2025 2024

Business

Support

services Total Business

Support

services Total

At 31 December 19,259 47,265 66,524 19,252 46,450 65,702

Average for the year 19,353 46,408 65,761 19,582 48,114 67,696

Company

2025 2024

Business

Support

services Total Business

Support

services Total

At 31 December 8,076 11,744 19,820 7,880 12,307 20,187

Average for the year 7,992 11,939 19,932 8,162 12,927 21,089

Supplementary information

Directors’ Report and Financial Statements 2025 | Standard Chartered 205

Important notices

Forward-looking statements

The information included in this document may contain ‘forward-looking statements’ based upon current expectations or

beliefs as well as statements formulated with assumptions about future events. Forward-looking statements include, without

limitation, projections, estimates, commitments, plans, approaches, ambitions and targets (including, without limitation, ESG

commitments, ambitions and targets). Forward-looking statements often use words such as ‘may’, ‘could’, ‘will’, ‘expect’, ‘intend’,

‘estimate’, ‘anticipate’, ‘believe’, ‘plan’, ‘seek’, ‘aim’, ‘continue’ or other words of similar meaning to any of the foregoing. Forward-

looking statements may also (or additionally) be identified by the fact that they do not relate only to historical or current facts.

By their very nature, forward-looking statements are subject to known and unknown risks and uncertainties and other

factorsthat could cause actual results, and the Group’s plans and objectives, to differ materially from those expressed or

impliedin the forward-looking statements. Readers should not place reliance on, and are cautioned about relying on, any

forward-looking statements.

There are several factors which could cause the Group’s actual results and its plans and objectives to differ materially from

those expressed or implied in forward-looking statements. The factors include (but are not limited to): changes in global,

political, economic, business, competitive and market forces or conditions, or in future exchange and interest rates; changes in

environmental, geopolitical, social or physical risks; legal, regulatory and policy developments, including regulatory measures

addressing climate change and broader sustainability-related issues; the development of standards and interpretations,

including evolving requirements and practices in ESG reporting; the ability of the Group, together with governments and other

stakeholders to measure, manage, and mitigate the impacts of climate change and broader sustainability-related issues

effectively; risks arising out of health crises and pandemics; risks of cyber-attacks, data, information or security breaches or

technology failures involving the Group; changes in tax rates or policy; future business combinations or dispositions; and other

factors specific to the Group, including those identified in this document and financial statements of the Group. To the extent

that any forward-looking statements contained in this document are based on past or current trends and/or activities of the

Group, they should not be taken as a representation that such trends or activities will continue in the future.

No statement in this document is intended to be, nor should be interpreted as, a profit forecast or to imply that the earnings of

the Group for the current year or future years will necessarily match or exceed the historical or published earnings of the Group.

Each forward-looking statement speaks only as of the date that it is made. Except as required by any applicable laws or

regulations, the Group expressly disclaims any obligation to revise or update any forward-looking statement contained within

this document, regardless of whether those statements are affected as a result of new information, future events or otherwise.

Please refer to this document and the financial statements of the Group for a discussion of certain of the risks and factors that

could adversely impact the Group’s actual results, and cause its plans and objectives, to differ materially from those expressed

or implied in any forward-looking statements.

Financial instruments

Nothing in this document shall constitute, in any jurisdiction, an offer or solicitation to sell or purchase any securities or other

financial instruments, nor shall it constitute a recommendation or advice in respect of any securities or other financial

instruments or any other matter.

Caution regarding climate and environment related information

Some of the climate and environment related information in this document is subject to certain limitations, and therefore the

reader should treat the information provided, as well as conclusions, projections and assumptions drawn from such information,

with caution. The information may be limited due to a number of factors, which include (but are not limited to): a lack of reliable

data; a lack of standardisation of data; and future uncertainty. The information includes externally sourced data that may not

have been verified. Furthermore, some of the data, models and methodologies used to create the information is subject to

adjustment which is beyond our control, and the information is subject to change without notice.

Supplementary information

Directors’ Report and Financial Statements 2025 | Standard Chartered 206