{ "documentInfo": { "documentType": "https://xbrl.org/2021/xbrl-json", "features": { "xbrl:canonicalValues": true }, "namespaces": { "ifrs-full": "http://xbrl.ifrs.org/taxonomy/2021-03-24/ifrs-full", "iso4217": "http://www.xbrl.org/2003/iso4217", "scheme": "http://standards.iso.org/iso/17442", "stan": "http://www.sc.com/20221231", "xbrl": "https://xbrl.org/2021", "xbrli": "http://www.xbrl.org/2003/instance" }, "taxonomy": [ "http://www.sc.com/xbrl/2022/U4LOSYZ7YG4W3S5F2G91-2022-12-31.xsd" ] }, "facts": { "f835": { "value": "Standard Chartered PLC", "dimensions": { "concept": "ifrs-full:NameOfParentEntity", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f836": { "value": "Standard Chartered PLC", "dimensions": { "concept": "ifrs-full:NameOfUltimateParentOfGroup", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f837": { "value": "Standard Chartered PLC", "dimensions": { "concept": "ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f838": { "value": "PLC", "dimensions": { "concept": "ifrs-full:LegalFormOfEntity", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f839": { "value": "England and Wales ", "dimensions": { "concept": "ifrs-full:DomicileOfEntity", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f840": { "value": "England and Wales", "dimensions": { "concept": "ifrs-full:CountryOfIncorporation", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f1013": { "value": "Corporate, Commercial \nand Institutional Banking Consumer, Private \nand Business Banking ", "dimensions": { "concept": "ifrs-full:DescriptionOfNatureOfEntitysOperationsAndPrincipalActivities", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f73670": { "value": "15252000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:RevenueFromInterest", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73672": { "value": "10246000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:RevenueFromInterest", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73675": { "value": "7659000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestExpense", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73677": { "value": "3448000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestExpense", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73681": { "value": "7593000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestRevenueExpense", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73683": { "value": "6798000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestRevenueExpense", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73688": { "value": "3972000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:FeeAndCommissionIncome", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73690": { "value": "4458000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:FeeAndCommissionIncome", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73694": { "value": "859000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:FeeAndCommissionExpense", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73696": { "value": "736000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:FeeAndCommissionExpense", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73702": { "value": "3113000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:FeeAndCommissionIncomeExpense", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73704": { "value": "3722000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:FeeAndCommissionIncomeExpense", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73708": { "value": "5310000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:TradingIncomeExpense", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73710": { "value": "3431000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:TradingIncomeExpense", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73714": { "value": "302000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:MiscellaneousOtherOperatingIncome", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73716": { "value": "750000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:MiscellaneousOtherOperatingIncome", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73719": { "value": "16318000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:RevenueAndOperatingIncome", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73721": { "value": "14701000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:RevenueAndOperatingIncome", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73724": { "value": "7618000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:EmployeeBenefitsExpense", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73726": { "value": "7668000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:EmployeeBenefitsExpense", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73729": { "value": "401000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OccupancyExpense", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73731": { "value": "387000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OccupancyExpense", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73736": { "value": "1708000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:GeneralAndAdministrativeExpense", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73738": { "value": "1688000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:GeneralAndAdministrativeExpense", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73744": { "value": "1186000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DepreciationAndAmortisationExpense", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73746": { "value": "1181000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DepreciationAndAmortisationExpense", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73750": { "value": "10913000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OperatingExpense", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73752": { "value": "10924000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OperatingExpense", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73757": { "value": "5405000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossFromOperatingActivities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73759": { "value": "3777000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossFromOperatingActivities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73764": { "value": "836000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ImpairmentLossOnFinancialAssets", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73766": { "value": "254000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ImpairmentLossOnFinancialAssets", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73771": { "value": "439000000", "decimals": -6, "dimensions": { "concept": "stan:ImpairmentLossRecognisedInProfitOrLossGoodwillPropertyPlantAndEquipmentAndOtherImpairment", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73773": { "value": "372000000", "decimals": -6, "dimensions": { "concept": "stan:ImpairmentLossRecognisedInProfitOrLossGoodwillPropertyPlantAndEquipmentAndOtherImpairment", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73778": { "value": "156000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ShareOfProfitLossOfAssociatesAndJointVenturesAccountedForUsingEquityMethod", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73780": { "value": "196000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ShareOfProfitLossOfAssociatesAndJointVenturesAccountedForUsingEquityMethod", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73783": { "value": "4286000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossBeforeTax", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73785": { "value": "3347000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossBeforeTax", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73789": { "value": "1384000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxExpenseContinuingOperations", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73791": { "value": "1034000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxExpenseContinuingOperations", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73794": { "value": "2902000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73796": { "value": "2313000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73801": { "value": "-46000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossAttributableToNoncontrollingInterests", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73803": { "value": "-2000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossAttributableToNoncontrollingInterests", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73806": { "value": "2948000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossAttributableToOwnersOfParent", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73808": { "value": "2315000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossAttributableToOwnersOfParent", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73811": { "value": "2902000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73813": { "value": "2313000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73820": { "value": "0.859", "decimals": 3, "dimensions": { "concept": "ifrs-full:BasicEarningsLossPerShare", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD/xbrli:shares" } }, "f73822": { "value": "0.613", "decimals": 3, "dimensions": { "concept": "ifrs-full:BasicEarningsLossPerShare", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD/xbrli:shares" } }, "f73826": { "value": "0.843", "decimals": 3, "dimensions": { "concept": "ifrs-full:DilutedEarningsLossPerShare", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD/xbrli:shares" } }, "f73828": { "value": "0.604", "decimals": 3, "dimensions": { "concept": "ifrs-full:DilutedEarningsLossPerShare", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD/xbrli:shares" } }, "f73854": { "value": "2902000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73856": { "value": "2313000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73862": { "value": "-75000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeThatWillNotBeReclassifiedToProfitOrLossNetOfTax", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73864": { "value": "309000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeThatWillNotBeReclassifiedToProfitOrLossNetOfTax", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73874": { "value": "-56000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeBeforeTaxChangeInFairValueOfFinancialLiabilityAttributableToChangeInCreditRiskOfLiability", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73876": { "value": "43000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeBeforeTaxChangeInFairValueOfFinancialLiabilityAttributableToChangeInCreditRiskOfLiability", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73879": { "value": "-75000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeBeforeTaxGainsLossesFromInvestmentsInEquityInstruments", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73881": { "value": "169000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeBeforeTaxGainsLossesFromInvestmentsInEquityInstruments", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73886": { "value": "41000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeBeforeTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73888": { "value": "179000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeBeforeTaxGainsLossesOnRemeasurementsOfDefinedBenefitPlans", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73892": { "value": "-15000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxRelatingToComponentsOfOtherComprehensiveIncomeThatWillNotBeReclassifiedToProfitOrLoss", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73894": { "value": "82000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxRelatingToComponentsOfOtherComprehensiveIncomeThatWillNotBeReclassifiedToProfitOrLoss", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73899": { "value": "-3703000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeThatWillBeReclassifiedToProfitOrLossNetOfTax", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73901": { "value": "-1081000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncomeThatWillBeReclassifiedToProfitOrLossNetOfTax", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73905": { "value": "-2466000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:GainsLossesOnExchangeDifferencesOnTranslationBeforeTax", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73907": { "value": "-791000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:GainsLossesOnExchangeDifferencesOnTranslationBeforeTax", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73910": { "value": "512000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:GainsLossesOnHedgesOfNetInvestmentsInForeignOperationsBeforeTax", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73912": { "value": "118000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:GainsLossesOnHedgesOfNetInvestmentsInForeignOperationsBeforeTax", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73917": { "value": "-79000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ShareOfOtherComprehensiveIncomeOfAssociatesAndJointVenturesAccountedForUsingEquityMethodThatWillBeReclassifiedToProfitOrLossBeforeTax", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73919": { "value": "10000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ShareOfOtherComprehensiveIncomeOfAssociatesAndJointVenturesAccountedForUsingEquityMethodThatWillBeReclassifiedToProfitOrLossBeforeTax", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73923": { "value": "-1528000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:GainsLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeBeforeTax", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73925": { "value": "-386000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:GainsLossesOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeBeforeTax", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73930": { "value": "-207000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ReclassificationAdjustmentsOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeBeforeTax", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73932": { "value": "157000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ReclassificationAdjustmentsOnFinancialAssetsMeasuredAtFairValueThroughOtherComprehensiveIncomeBeforeTax", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73935": { "value": "118000000", "decimals": -6, "dimensions": { "concept": "stan:OtherComprehensiveIncomeBeforeTaxNetImpactOfExpectedCreditLosses", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73937": { "value": "31000000", "decimals": -6, "dimensions": { "concept": "stan:OtherComprehensiveIncomeBeforeTaxNetImpactOfExpectedCreditLosses", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73942": { "value": "-619000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:GainsLossesOnCashFlowHedgesBeforeTax", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73944": { "value": "20000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:GainsLossesOnCashFlowHedgesBeforeTax", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73948": { "value": "-152000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxRelatingToComponentsOfOtherComprehensiveIncomeThatWillBeReclassifiedToProfitOrLoss", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73950": { "value": "-74000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncomeTaxRelatingToComponentsOfOtherComprehensiveIncomeThatWillBeReclassifiedToProfitOrLoss", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73953": { "value": "-3778000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73955": { "value": "-772000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73958": { "value": "-876000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73960": { "value": "1541000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73965": { "value": "-88000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncomeAttributableToNoncontrollingInterests", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73967": { "value": "-17000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncomeAttributableToNoncontrollingInterests", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73970": { "value": "-788000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncomeAttributableToOwnersOfParent", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73972": { "value": "1558000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncomeAttributableToOwnersOfParent", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73975": { "value": "-876000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f73977": { "value": "1541000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ComprehensiveIncome", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74008": { "value": "58263000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashAndBankBalancesAtCentralBanks", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74010": { "value": "72663000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashAndBankBalancesAtCentralBanks", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74016": { "value": "105812000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLoss", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74018": { "value": "129121000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:FinancialAssetsAtFairValueThroughProfitOrLoss", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74024": { "value": "63717000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DerivativeFinancialAssets", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74026": { "value": "52445000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DerivativeFinancialAssets", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74030": { "value": "39519000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:LoansAndAdvancesToBanks", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74032": { "value": "44383000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:LoansAndAdvancesToBanks", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74036": { "value": "310647000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:LoansAndAdvancesToCustomers", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74038": { "value": "298468000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:LoansAndAdvancesToCustomers", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74043": { "value": "172448000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentInvestments", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74045": { "value": "163437000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentInvestments", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74049": { "value": "50383000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherAssets", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74051": { "value": "49932000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherAssets", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74055": { "value": "503000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTaxAssets", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74057": { "value": "766000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTaxAssets", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74060": { "value": "3149000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:PrepaymentsAndAccruedIncomeOtherThanContractAssets", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74062": { "value": "2176000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:PrepaymentsAndAccruedIncomeOtherThanContractAssets", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74067": { "value": "1631000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InvestmentsInSubsidiariesJointVenturesAndAssociates", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74069": { "value": "2147000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InvestmentsInSubsidiariesJointVenturesAndAssociates", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74074": { "value": "5869000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IntangibleAssetsAndGoodwill", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74076": { "value": "5471000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IntangibleAssetsAndGoodwill", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74080": { "value": "5522000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:PropertyPlantAndEquipment", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74082": { "value": "5616000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:PropertyPlantAndEquipment", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74086": { "value": "834000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DeferredTaxAssets", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74088": { "value": "859000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DeferredTaxAssets", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74093": { "value": "1625000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSale", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74095": { "value": "334000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSale", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74098": { "value": "819922000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Assets", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74100": { "value": "827818000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Assets", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74108": { "value": "28789000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DepositsFromBanks", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74110": { "value": "30041000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DepositsFromBanks", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74114": { "value": "461677000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DepositsFromCustomers", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74116": { "value": "474570000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DepositsFromCustomers", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74122": { "value": "2108000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:RepurchaseAgreementsAndCashCollateralOnSecuritiesLent", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74124": { "value": "3260000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:RepurchaseAgreementsAndCashCollateralOnSecuritiesLent", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74134": { "value": "79903000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLoss", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74136": { "value": "85197000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:FinancialLiabilitiesAtFairValueThroughProfitOrLoss", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74142": { "value": "69862000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DerivativeFinancialLiabilities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74144": { "value": "53399000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DerivativeFinancialLiabilities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74150": { "value": "61242000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DebtSecurities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74152": { "value": "61293000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DebtSecurities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74159": { "value": "43527000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherLiabilities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74161": { "value": "44314000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherLiabilities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74168": { "value": "583000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTaxLiabilities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74170": { "value": "348000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CurrentTaxLiabilities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74173": { "value": "5895000000", "decimals": -6, "dimensions": { "concept": "stan:AccrualAndDeferredIncome", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74175": { "value": "4651000000", "decimals": -6, "dimensions": { "concept": "stan:AccrualAndDeferredIncome", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74182": { "value": "13715000000", "decimals": -6, "dimensions": { "concept": "stan:SubordinatedLiabilitiesAndOtherBorrowedFunds", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74184": { "value": "16646000000", "decimals": -6, "dimensions": { "concept": "stan:SubordinatedLiabilitiesAndOtherBorrowedFunds", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74191": { "value": "769000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DeferredTaxLiabilities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74193": { "value": "800000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DeferredTaxLiabilities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74202": { "value": "383000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Provisions", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74204": { "value": "453000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Provisions", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74209": { "value": "146000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:RecognisedLiabilitiesDefinedBenefitPlan", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74211": { "value": "210000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:RecognisedLiabilitiesDefinedBenefitPlan", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74219": { "value": "1307000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:LiabilitiesIncludedInDisposalGroupsClassifiedAsHeldForSale", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74221": { "value": "0", "decimals": -6, "dimensions": { "concept": "ifrs-full:LiabilitiesIncludedInDisposalGroupsClassifiedAsHeldForSale", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74227": { "value": "769906000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Liabilities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74229": { "value": "775182000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Liabilities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74234": { "value": "6930000000", "decimals": -6, "dimensions": { "concept": "stan:IssuedCapitalAndSharePremium", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74236": { "value": "7022000000", "decimals": -6, "dimensions": { "concept": "stan:IssuedCapitalAndSharePremium", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74239": { "value": "8165000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherReserves", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74241": { "value": "11805000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherReserves", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74244": { "value": "28067000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:RetainedEarnings", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74246": { "value": "27184000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:RetainedEarnings", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74249": { "value": "43162000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:EquityAttributableToOwnersOfParent", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74251": { "value": "46011000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:EquityAttributableToOwnersOfParent", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74255": { "value": "6504000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherEquityInterest", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74257": { "value": "6254000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherEquityInterest", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74260": { "value": "49666000000", "decimals": -6, "dimensions": { "concept": "stan:EquityAttributableToParentIncludingOtherEquityInstruments", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74262": { "value": "52265000000", "decimals": -6, "dimensions": { "concept": "stan:EquityAttributableToParentIncludingOtherEquityInstruments", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74266": { "value": "350000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncontrollingInterests", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74268": { "value": "371000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:NoncontrollingInterests", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74271": { "value": "50016000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74273": { "value": "52636000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74279": { "value": "819922000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:EquityAndLiabilities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74281": { "value": "827818000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:EquityAndLiabilities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74285": { "value": "These \ufb01nancial statements were approved by the Board of D
irectors and authorised for issue on 16 February 2023 and signed
\n
on its behalf by:
\n
Jos\u00e9 Vi\u00f1als
Bill Winters
Andy Halford
\n
Group Chairman
Group Chief Executive
Group Chief Financ
ial Of\ufb01cer ", "dimensions": { "concept": "ifrs-full:DisclosureOfAuthorisationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f74403": { "value": "5564000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "stan:ShareCapitalAndSharePremiumMember", "unit": "iso4217:USD" } }, "f74405": { "value": "1494000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "stan:PreferenceShareCapitalAndSharePremiumMember", "unit": "iso4217:USD" } }, "f74407": { "value": "17207000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "stan:CapitalAndMergerReserveMember", "unit": "iso4217:USD" } }, "f74409": { "value": "-52000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "stan:OwnCreditAdjustmentReserveMember", "unit": "iso4217:USD" } }, "f74411": { "value": "529000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "stan:FairValueThroughOtherComprehensiveIncomeReserveDebtMember", "unit": "iso4217:USD" } }, "f74413": { "value": "148000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "stan:FairValueThroughOtherComprehensiveIncomeReserveEquityMember", "unit": "iso4217:USD" } }, "f74415": { "value": "-52000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:USD" } }, "f74416": { "value": "-5092000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:USD" } }, "f74418": { "value": "26140000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:USD" } }, "f74420": { "value": "45886000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:USD" } }, "f74422": { "value": "4518000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherEquityInterestMember", "unit": "iso4217:USD" } }, "f74424": { "value": "325000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:USD" } }, "f74426": { "value": "50729000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74437": { "value": "2315000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:USD" } }, "f74439": { "value": "2315000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:USD" } }, "f74442": { "value": "-2000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:USD" } }, "f74444": { "value": "2313000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74450": { "value": "37000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "stan:OwnCreditAdjustmentReserveMember", "unit": "iso4217:USD" } }, "f74452": { "value": "-426000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "stan:FairValueThroughOtherComprehensiveIncomeReserveDebtMember", "unit": "iso4217:USD" } }, "f74454": { "value": "101000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "stan:FairValueThroughOtherComprehensiveIncomeReserveEquityMember", "unit": "iso4217:USD" } }, "f74456": { "value": "18000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:USD" } }, "f74458": { "value": "-662000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:USD" } }, "f74460": { "value": "175000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:USD" } }, "f74462": { "value": "-757000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:USD" } }, "f74465": { "value": "-15000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:USD" } }, "f74467": { "value": "-772000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74483": { "value": "31000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughOtherDistributionsToOwners", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:USD" } }, "f74485": { "value": "31000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughOtherDistributionsToOwners", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74499": { "value": "2728000000", "decimals": -6, "dimensions": { "concept": "stan:IssueOfOtherEquityInstruments", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherEquityInterestMember", "unit": "iso4217:USD" } }, "f74502": { "value": "2728000000", "decimals": -6, "dimensions": { "concept": "stan:IssueOfOtherEquityInstruments", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74513": { "value": "-51000000", "decimals": -6, "dimensions": { "concept": "stan:RedemptionOfOtherEquityInstruments", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:USD" } }, "f74515": { "value": "-51000000", "decimals": -6, "dimensions": { "concept": "stan:RedemptionOfOtherEquityInstruments", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:USD" } }, "f74517": { "value": "-992000000", "decimals": -6, "dimensions": { "concept": "stan:RedemptionOfOtherEquityInstruments", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherEquityInterestMember", "unit": "iso4217:USD" } }, "f74520": { "value": "-1043000000", "decimals": -6, "dimensions": { "concept": "stan:RedemptionOfOtherEquityInstruments", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74531": { "value": "-235000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:USD" } }, "f74533": { "value": "-235000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:USD" } }, "f74537": { "value": "-235000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74548": { "value": "147000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:USD" } }, "f74550": { "value": "147000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:USD" } }, "f74554": { "value": "147000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74567": { "value": "374000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsRecognisedAsDistributionsToOwnersOfParent", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:USD" } }, "f74569": { "value": "374000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsRecognisedAsDistributionsToOwnersOfParent", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:USD" } }, "f74573": { "value": "374000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsRecognisedAsDistributionsToOwnersOfParent", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74587": { "value": "-410000000", "decimals": -6, "dimensions": { "concept": "stan:DividendsRecognisedAsDistributionsToPreferenceShareHoldersAndAt1Securities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:USD" } }, "f74589": { "value": "-410000000", "decimals": -6, "dimensions": { "concept": "stan:DividendsRecognisedAsDistributionsToPreferenceShareHoldersAndAt1Securities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:USD" } }, "f74593": { "value": "-410000000", "decimals": -6, "dimensions": { "concept": "stan:DividendsRecognisedAsDistributionsToPreferenceShareHoldersAndAt1Securities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74597": { "value": "-39000000", "decimals": -6, "dimensions": { "concept": "stan:IncreaseDecreaseThroughShareBuyBack", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "stan:ShareCapitalAndSharePremiumMember", "unit": "iso4217:USD" } }, "f74600": { "value": "39000000", "decimals": -6, "dimensions": { "concept": "stan:IncreaseDecreaseThroughShareBuyBack", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "stan:CapitalAndMergerReserveMember", "unit": "iso4217:USD" } }, "f74607": { "value": "-506000000", "decimals": -6, "dimensions": { "concept": "stan:IncreaseDecreaseThroughShareBuyBack", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:USD" } }, "f74609": { "value": "-506000000", "decimals": -6, "dimensions": { "concept": "stan:IncreaseDecreaseThroughShareBuyBack", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:USD" } }, "f74613": { "value": "-506000000", "decimals": -6, "dimensions": { "concept": "stan:IncreaseDecreaseThroughShareBuyBack", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74616": { "value": "3000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "stan:ShareCapitalAndSharePremiumMember", "unit": "iso4217:USD" } }, "f74624": { "value": "10000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:USD" } }, "f74626": { "value": "-17000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:USD" } }, "f74628": { "value": "-4000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:USD" } }, "f74631": { "value": "94000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:USD" } }, "f74633": { "value": "90000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74636": { "value": "5528000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "stan:ShareCapitalAndSharePremiumMember", "unit": "iso4217:USD" } }, "f74638": { "value": "1494000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "stan:PreferenceShareCapitalAndSharePremiumMember", "unit": "iso4217:USD" } }, "f74640": { "value": "17246000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "stan:CapitalAndMergerReserveMember", "unit": "iso4217:USD" } }, "f74642": { "value": "-15000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "stan:OwnCreditAdjustmentReserveMember", "unit": "iso4217:USD" } }, "f74644": { "value": "103000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "stan:FairValueThroughOtherComprehensiveIncomeReserveDebtMember", "unit": "iso4217:USD" } }, "f74646": { "value": "249000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "stan:FairValueThroughOtherComprehensiveIncomeReserveEquityMember", "unit": "iso4217:USD" } }, "f74648": { "value": "-34000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:USD" } }, "f74649": { "value": "-5744000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:USD" } }, "f74651": { "value": "27184000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:USD" } }, "f74653": { "value": "46011000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:USD" } }, "f74655": { "value": "6254000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherEquityInterestMember", "unit": "iso4217:USD" } }, "f74657": { "value": "371000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:USD" } }, "f74659": { "value": "52636000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74670": { "value": "2948000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:USD" } }, "f74672": { "value": "2948000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:USD" } }, "f74675": { "value": "-46000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:USD" } }, "f74677": { "value": "2902000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLoss", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74683": { "value": "-48000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "stan:OwnCreditAdjustmentReserveMember", "unit": "iso4217:USD" } }, "f74685": { "value": "-1219000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "stan:FairValueThroughOtherComprehensiveIncomeReserveDebtMember", "unit": "iso4217:USD" } }, "f74687": { "value": "-43000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "stan:FairValueThroughOtherComprehensiveIncomeReserveEquityMember", "unit": "iso4217:USD" } }, "f74689": { "value": "-530000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:USD" } }, "f74690": { "value": "-1904000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:USD" } }, "f74692": { "value": "8000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:USD" } }, "f74695": { "value": "-3736000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:USD" } }, "f74698": { "value": "-42000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:USD" } }, "f74700": { "value": "-3778000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:OtherComprehensiveIncome", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74716": { "value": "31000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughOtherDistributionsToOwners", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:USD" } }, "f74718": { "value": "31000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughOtherDistributionsToOwners", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74732": { "value": "1240000000", "decimals": -6, "dimensions": { "concept": "stan:IssueOfOtherEquityInstruments", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherEquityInterestMember", "unit": "iso4217:USD" } }, "f74735": { "value": "1240000000", "decimals": -6, "dimensions": { "concept": "stan:IssueOfOtherEquityInstruments", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74748": { "value": "-999000000", "decimals": -6, "dimensions": { "concept": "stan:RedemptionOfOtherEquityInstruments", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherEquityInterestMember", "unit": "iso4217:USD" } }, "f74751": { "value": "-999000000", "decimals": -6, "dimensions": { "concept": "stan:RedemptionOfOtherEquityInstruments", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74762": { "value": "-203000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:USD" } }, "f74764": { "value": "-203000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:USD" } }, "f74768": { "value": "-203000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTreasuryShareTransactions", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74779": { "value": "163000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:USD" } }, "f74781": { "value": "163000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:USD" } }, "f74785": { "value": "163000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughSharebasedPaymentTransactions", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74798": { "value": "393000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsRecognisedAsDistributionsToOwnersOfParent", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:USD" } }, "f74800": { "value": "393000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsRecognisedAsDistributionsToOwnersOfParent", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:USD" } }, "f74804": { "value": "393000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsRecognisedAsDistributionsToOwnersOfParent", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74818": { "value": "-401000000", "decimals": -6, "dimensions": { "concept": "stan:DividendsRecognisedAsDistributionsToPreferenceShareHoldersAndAt1Securities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:USD" } }, "f74820": { "value": "-401000000", "decimals": -6, "dimensions": { "concept": "stan:DividendsRecognisedAsDistributionsToPreferenceShareHoldersAndAt1Securities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:USD" } }, "f74824": { "value": "-401000000", "decimals": -6, "dimensions": { "concept": "stan:DividendsRecognisedAsDistributionsToPreferenceShareHoldersAndAt1Securities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74828": { "value": "-92000000", "decimals": -6, "dimensions": { "concept": "stan:IncreaseDecreaseThroughShareBuyBack", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "stan:ShareCapitalAndSharePremiumMember", "unit": "iso4217:USD" } }, "f74831": { "value": "92000000", "decimals": -6, "dimensions": { "concept": "stan:IncreaseDecreaseThroughShareBuyBack", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "stan:CapitalAndMergerReserveMember", "unit": "iso4217:USD" } }, "f74838": { "value": "-1258000000", "decimals": -6, "dimensions": { "concept": "stan:IncreaseDecreaseThroughShareBuyBack", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:USD" } }, "f74840": { "value": "-1258000000", "decimals": -6, "dimensions": { "concept": "stan:IncreaseDecreaseThroughShareBuyBack", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:USD" } }, "f74844": { "value": "-1258000000", "decimals": -6, "dimensions": { "concept": "stan:IncreaseDecreaseThroughShareBuyBack", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74854": { "value": "12000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:USD" } }, "f74856": { "value": "19000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:USD" } }, "f74859": { "value": "31000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:USD" } }, "f74861": { "value": "9000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherEquityInterestMember", "unit": "iso4217:USD" } }, "f74864": { "value": "98000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:USD" } }, "f74867": { "value": "138000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74870": { "value": "5436000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "stan:ShareCapitalAndSharePremiumMember", "unit": "iso4217:USD" } }, "f74872": { "value": "1494000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "stan:PreferenceShareCapitalAndSharePremiumMember", "unit": "iso4217:USD" } }, "f74874": { "value": "17338000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "stan:CapitalAndMergerReserveMember", "unit": "iso4217:USD" } }, "f74876": { "value": "-63000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "stan:OwnCreditAdjustmentReserveMember", "unit": "iso4217:USD" } }, "f74878": { "value": "-1116000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "stan:FairValueThroughOtherComprehensiveIncomeReserveDebtMember", "unit": "iso4217:USD" } }, "f74880": { "value": "206000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "stan:FairValueThroughOtherComprehensiveIncomeReserveEquityMember", "unit": "iso4217:USD" } }, "f74882": { "value": "-564000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfCashFlowHedgesMember", "unit": "iso4217:USD" } }, "f74883": { "value": "-7636000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember", "unit": "iso4217:USD" } }, "f74884": { "value": "28067000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:USD" } }, "f74886": { "value": "43162000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:EquityAttributableToOwnersOfParentMember", "unit": "iso4217:USD" } }, "f74888": { "value": "6504000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherEquityInterestMember", "unit": "iso4217:USD" } }, "f74890": { "value": "350000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "unit": "iso4217:USD" } }, "f74892": { "value": "50016000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74895": { "value": "5000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CapitalReserve", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74898": { "value": "222000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CapitalRedemptionReserve", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74900": { "value": "17111000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:MergerReserve", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f74907": { "value": "0.5", "decimals": 2, "dimensions": { "concept": "stan:ShareBuyBackProgramRedemptionPricePerShare", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-02-26T00:00:00", "unit": "iso4217:USD/xbrli:shares" } }, "f74909": { "value": "19000000", "decimals": -6, "dimensions": { "concept": "stan:ShareBuyBackProgramAuthorizedAmount", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-02-26T00:00:00", "unit": "iso4217:USD" } }, "f74914": { "value": "255000000", "decimals": -6, "dimensions": { "concept": "stan:PaymentsForCancellationOfSharesIncludingBuyBack", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-02-25T00:00:00/2021-02-26T00:00:00", "unit": "iso4217:USD" } }, "f74918": { "value": "2000000", "decimals": -6, "dimensions": { "concept": "stan:ShareBuyBackExpense", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-02-25T00:00:00/2021-02-26T00:00:00", "unit": "iso4217:USD" } }, "f74922": { "value": "37148399", "decimals": 0, "dimensions": { "concept": "stan:NumberOfSharesRepurchasedDuringThePeriod", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-02-25T00:00:00/2021-02-26T00:00:00", "unit": "xbrli:shares" } }, "f74923": { "value": "0.0118", "decimals": 4, "dimensions": { "concept": "stan:PercentageOfOrdinarySharesRepurchased", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-02-25T00:00:00/2021-02-26T00:00:00" } }, "f74927": { "value": "0.5", "decimals": 2, "dimensions": { "concept": "stan:ShareBuyBackProgramRedemptionPricePerShare", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-08-04T00:00:00", "unit": "iso4217:USD/xbrli:shares" } }, "f74929": { "value": "20000000", "decimals": -6, "dimensions": { "concept": "stan:ShareBuyBackProgramAuthorizedAmount", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-08-04T00:00:00", "unit": "iso4217:USD" } }, "f74934": { "value": "251000000", "decimals": -6, "dimensions": { "concept": "stan:PaymentsForCancellationOfSharesIncludingBuyBack", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-08-03T00:00:00/2021-08-04T00:00:00", "unit": "iso4217:USD" } }, "f74938": { "value": "1000000", "decimals": -6, "dimensions": { "concept": "stan:ShareBuyBackExpense", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-08-03T00:00:00/2021-08-04T00:00:00", "unit": "iso4217:USD" } }, "f74942": { "value": "39914763", "decimals": 0, "dimensions": { "concept": "stan:NumberOfSharesRepurchasedDuringThePeriod", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-08-03T00:00:00/2021-08-04T00:00:00", "unit": "xbrli:shares" } }, "f74943": { "value": "0.0128", "decimals": 4, "dimensions": { "concept": "stan:PercentageOfOrdinarySharesRepurchased", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-08-03T00:00:00/2021-08-04T00:00:00" } }, "f74953": { "value": "0.5", "decimals": 2, "dimensions": { "concept": "stan:ShareBuyBackProgramRedemptionPricePerShare", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-02-19T00:00:00", "unit": "iso4217:USD/xbrli:shares" } }, "f74955": { "value": "56000000", "decimals": -6, "dimensions": { "concept": "stan:ShareBuyBackProgramAuthorizedAmount", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-02-19T00:00:00", "unit": "iso4217:USD" } }, "f74960": { "value": "754000000", "decimals": -6, "dimensions": { "concept": "stan:PaymentsForCancellationOfSharesIncludingBuyBack", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-02-18T00:00:00/2022-02-19T00:00:00", "unit": "iso4217:USD" } }, "f74964": { "value": "4000000", "decimals": -6, "dimensions": { "concept": "stan:ShareBuyBackExpense", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-02-18T00:00:00/2022-02-19T00:00:00", "unit": "iso4217:USD" } }, "f74968": { "value": "111295408", "decimals": 0, "dimensions": { "concept": "stan:NumberOfSharesRepurchasedDuringThePeriod", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-02-18T00:00:00/2022-02-19T00:00:00", "unit": "xbrli:shares" } }, "f74969": { "value": "0.0361", "decimals": 4, "dimensions": { "concept": "stan:PercentageOfOrdinarySharesRepurchased", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-02-18T00:00:00/2022-02-19T00:00:00" } }, "f74973": { "value": "0.5", "decimals": 2, "dimensions": { "concept": "stan:ShareBuyBackProgramRedemptionPricePerShare", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-08-02T00:00:00", "unit": "iso4217:USD/xbrli:shares" } }, "f74975": { "value": "37000000", "decimals": -6, "dimensions": { "concept": "stan:ShareBuyBackProgramAuthorizedAmount", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-08-02T00:00:00", "unit": "iso4217:USD" } }, "f74980": { "value": "504000000", "decimals": -6, "dimensions": { "concept": "stan:PaymentsForCancellationOfSharesIncludingBuyBack", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-08-01T00:00:00/2022-08-02T00:00:00", "unit": "iso4217:USD" } }, "f74984": { "value": "2500000", "decimals": -5, "dimensions": { "concept": "stan:ShareBuyBackExpense", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-08-01T00:00:00/2022-08-02T00:00:00", "unit": "iso4217:USD" } }, "f74987": { "value": "73073837", "decimals": 0, "dimensions": { "concept": "stan:NumberOfSharesRepurchasedDuringThePeriod", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-08-01T00:00:00/2022-08-02T00:00:00", "unit": "xbrli:shares" } }, "f74989": { "value": "0.025", "decimals": 3, "dimensions": { "concept": "stan:PercentageOfOrdinarySharesRepurchased", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-08-01T00:00:00/2022-08-02T00:00:00" } }, "f74993": { "value": "21000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "ifrs-full:MeasurementAxis": "stan:Power2SMEPteLimitedMember", "unit": "iso4217:USD" } }, "f74997": { "value": "8000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "ifrs-full:MeasurementAxis": "stan:CurrencyFairMember", "unit": "iso4217:USD" } }, "f75001": { "value": "-9000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseThroughTransfersAndOtherChangesEquity", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:NoncontrollingInterestsMember", "ifrs-full:MeasurementAxis": "stan:AT1SecuritiesChargesMember", "unit": "iso4217:USD" } }, "f75008": { "value": "39000000", "decimals": -6, "dimensions": { "concept": "stan:IncreaseDecreaseThroughChangesInNoncontrollingInterest", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:MeasurementAxis": "stan:MoxBankLimitedMember", "unit": "iso4217:USD" } }, "f75012": { "value": "47000000", "decimals": -6, "dimensions": { "concept": "stan:IncreaseDecreaseThroughChangesInNoncontrollingInterest", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:MeasurementAxis": "stan:TrustBankSingaporeLtdMember", "unit": "iso4217:USD" } }, "f75015": { "value": "3000000", "decimals": -6, "dimensions": { "concept": "stan:IncreaseDecreaseThroughChangesInNoncontrollingInterest", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:MeasurementAxis": "stan:ZodiaMarketHoldingsLtdMember", "unit": "iso4217:USD" } }, "f75019": { "value": "9000000", "decimals": -6, "dimensions": { "concept": "stan:IncreaseDecreaseThroughChangesInNoncontrollingInterest", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "ifrs-full:MeasurementAxis": "stan:Power2SMEPteLimitedMember", "unit": "iso4217:USD" } }, "f75060": { "value": "4286000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossBeforeTax", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75062": { "value": "3347000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProfitLossBeforeTax", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75071": { "value": "3549000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForReconcileProfitLoss", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75073": { "value": "2104000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:AdjustmentsForReconcileProfitLoss", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75079": { "value": "545000000", "decimals": -6, "dimensions": { "concept": "stan:ChangeInOperatingAssets", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75081": { "value": "37904000000", "decimals": -6, "dimensions": { "concept": "stan:ChangeInOperatingAssets", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75090": { "value": "8786000000", "decimals": -6, "dimensions": { "concept": "stan:ChangeInOperatingLiabilities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75092": { "value": "45954000000", "decimals": -6, "dimensions": { "concept": "stan:ChangeInOperatingLiabilities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75099": { "value": "-80000000", "decimals": -6, "dimensions": { "concept": "stan:ContributionsToDefinedBenefitSchemes", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75101": { "value": "-122000000", "decimals": -6, "dimensions": { "concept": "stan:ContributionsToDefinedBenefitSchemes", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75107": { "value": "821000000", "decimals": -6, "dimensions": { "concept": "stan:DomesticAndOverseasTaxesPaid", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75109": { "value": "1161000000", "decimals": -6, "dimensions": { "concept": "stan:DomesticAndOverseasTaxesPaid", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75116": { "value": "15175000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInOperatingActivities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75118": { "value": "12218000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInOperatingActivities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75130": { "value": "1096000000", "decimals": -6, "dimensions": { "concept": "stan:InternallyGeneratedCapitalisedSoftware", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75132": { "value": "989000000", "decimals": -6, "dimensions": { "concept": "stan:InternallyGeneratedCapitalisedSoftware", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75138": { "value": "835000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75140": { "value": "352000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75146": { "value": "343000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProceedsFromSalesOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75148": { "value": "816000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProceedsFromSalesOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75155": { "value": "79000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProceedsFromDisposalOfNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleAndDiscontinuedOperations", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75157": { "value": "149000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProceedsFromDisposalOfNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleAndDiscontinuedOperations", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75167": { "value": "26000000", "decimals": -6, "dimensions": { "concept": "stan:AcquisitionOfInvestmentInSubsidiariesAssociatesAndJointVenturesNetOfCashAcquired", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75169": { "value": "35000000", "decimals": -6, "dimensions": { "concept": "stan:AcquisitionOfInvestmentInSubsidiariesAssociatesAndJointVenturesNetOfCashAcquired", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75180": { "value": "58000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsReceivedClassifiedAsInvestingActivities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75182": { "value": "38000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsReceivedClassifiedAsInvestingActivities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75188": { "value": "280952000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:PurchaseOfFinancialInstrumentsClassifiedAsInvestingActivities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75190": { "value": "299468000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:PurchaseOfFinancialInstrumentsClassifiedAsInvestingActivities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75196": { "value": "259853000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProceedsFromSalesOrMaturityOfFinancialInstrumentsClassifiedAsInvestingActivities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75198": { "value": "290846000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProceedsFromSalesOrMaturityOfFinancialInstrumentsClassifiedAsInvestingActivities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75207": { "value": "-22576000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInInvestingActivities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75209": { "value": "-8995000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInInvestingActivities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75218": { "value": "12000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProceedsFromExerciseOfOptions", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75220": { "value": "7000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProceedsFromExerciseOfOptions", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75225": { "value": "215000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:PaymentsToAcquireOrRedeemEntitysShares", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75227": { "value": "242000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:PaymentsToAcquireOrRedeemEntitysShares", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75233": { "value": "1258000000", "decimals": -6, "dimensions": { "concept": "stan:PaymentsForCancellationOfSharesIncludingBuyBack", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75235": { "value": "506000000", "decimals": -6, "dimensions": { "concept": "stan:PaymentsForCancellationOfSharesIncludingBuyBack", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75244": { "value": "269000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:PaymentsOfLeaseLiabilitiesClassifiedAsFinancingActivities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75246": { "value": "278000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:PaymentsOfLeaseLiabilitiesClassifiedAsFinancingActivities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75252": { "value": "1240000000", "decimals": -6, "dimensions": { "concept": "stan:IssueOfAt1CapitalNetOfExpenses", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75254": { "value": "2728000000", "decimals": -6, "dimensions": { "concept": "stan:IssueOfAt1CapitalNetOfExpenses", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75260": { "value": "999000000", "decimals": -6, "dimensions": { "concept": "stan:RedemptionOfTier1Capital", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75262": { "value": "1043000000", "decimals": -6, "dimensions": { "concept": "stan:RedemptionOfTier1Capital", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75271": { "value": "750000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProceedsFromIssueOfSubordinatedLiabilities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75273": { "value": "1137000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProceedsFromIssueOfSubordinatedLiabilities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75282": { "value": "667000000", "decimals": -6, "dimensions": { "concept": "stan:InterestPaidOnSubordinatedLiabilities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75284": { "value": "580000000", "decimals": -6, "dimensions": { "concept": "stan:InterestPaidOnSubordinatedLiabilities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75293": { "value": "1848000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:RepaymentsOfSubordinatedLiabilities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75295": { "value": "546000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:RepaymentsOfSubordinatedLiabilities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75301": { "value": "11902000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProceedsFromBorrowingsClassifiedAsFinancingActivities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75303": { "value": "10944000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProceedsFromBorrowingsClassifiedAsFinancingActivities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75309": { "value": "7838000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:RepaymentsOfBorrowingsClassifiedAsFinancingActivities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75311": { "value": "9945000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:RepaymentsOfBorrowingsClassifiedAsFinancingActivities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75317": { "value": "845000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestPaidClassifiedAsFinancingActivities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75319": { "value": "690000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestPaidClassifiedAsFinancingActivities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75325": { "value": "88000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProceedsFromContributionsOfNoncontrollingInterests", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75327": { "value": "94000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProceedsFromContributionsOfNoncontrollingInterests", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75338": { "value": "432000000", "decimals": -6, "dimensions": { "concept": "stan:DividendsPaidToNoncontrollingInterestsAndPreferenceShareholders", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75340": { "value": "441000000", "decimals": -6, "dimensions": { "concept": "stan:DividendsPaidToNoncontrollingInterestsAndPreferenceShareholders", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75347": { "value": "393000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaidToEquityHoldersOfParentClassifiedAsFinancingActivities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75349": { "value": "374000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsPaidToEquityHoldersOfParentClassifiedAsFinancingActivities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75358": { "value": "-772000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInFinancingActivities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75360": { "value": "265000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInFinancingActivities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75365": { "value": "-8173000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseInCashAndCashEquivalentsBeforeEffectOfExchangeRateChanges", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75367": { "value": "3488000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseInCashAndCashEquivalentsBeforeEffectOfExchangeRateChanges", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75373": { "value": "99605000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashAndCashEquivalents", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75375": { "value": "97874000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashAndCashEquivalents", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75381": { "value": "-2713000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:EffectOfExchangeRateChangesOnCashAndCashEquivalents", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75383": { "value": "-1757000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:EffectOfExchangeRateChangesOnCashAndCashEquivalents", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75390": { "value": "88719000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashAndCashEquivalents", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75392": { "value": "99605000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashAndCashEquivalents", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75397": { "value": "58263000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashAndBankBalancesAtCentralBanks", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75399": { "value": "72663000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:CashAndBankBalancesAtCentralBanks", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75405": { "value": "17936000000", "decimals": -6, "dimensions": { "concept": "stan:TreasuryBillsAndOtherEligibleBills", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75407": { "value": "9132000000", "decimals": -6, "dimensions": { "concept": "stan:TreasuryBillsAndOtherEligibleBills", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75411": { "value": "20558000000", "decimals": -6, "dimensions": { "concept": "stan:LoanAndAdvancesToBanks", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75413": { "value": "24788000000", "decimals": -6, "dimensions": { "concept": "stan:LoanAndAdvancesToBanks", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75418": { "value": "1135000000", "decimals": -6, "dimensions": { "concept": "stan:TradingSecurities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75421": { "value": "1174000000", "decimals": -6, "dimensions": { "concept": "stan:TradingSecurities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75425": { "value": "9173000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:RestrictedCashAndCashEquivalents", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75428": { "value": "8152000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:RestrictedCashAndCashEquivalents", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75431": { "value": "14590000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestReceivedClassifiedAsOperatingActivities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75433": { "value": "10167000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestReceivedClassifiedAsOperatingActivities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75437": { "value": "6200000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestPaidClassifiedAsOperatingActivities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75439": { "value": "3591000000", "decimals": -6, "dimensions": { "concept": "ifrs-full:InterestPaidClassifiedAsOperatingActivities", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2021-01-01T00:00:00/2022-01-01T00:00:00", "unit": "iso4217:USD" } }, "f75444": { "value": "2022-12-31", "dimensions": { "concept": "ifrs-full:DateOfEndOfReportingPeriod2013", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f76170": { "value": "
1. Accounting polic
ies
\n
Statement of compliance
\n
The Group \ufb01nancial statements consol
idate Standard
\n
Chartered PLC (the Company) and its subsid
iar
ies (together
\n
referred to as the Group) and equity account the Group\u2019s
\n
interests in associates and jo
intly controlled ent
it
ies. The
\n
parent company \ufb01nancial statements present
informat
ion
\n
about the Company as a separate entity.
\n
The Group \ufb01nancial statements have been prepared
in
\n
accordance with UK-adopted internat
ional account
ing
\n
standards and International Financ
ial Report
ing Standards
\n
(IFRS) as adopted by the European Union (EU IFRS). The
\n
Company \ufb01nancial statements have been prepared
in
\n
accordance with UK-adopted internat
ional account
ing
\n
standards as applied in conformity with section 408 of the
\n
Companies Act 2006. The \ufb01nanc
ial statements have been
\n
prepared in accordance with the requirements of the
\n
Companies Act 2006.
\n
There are no sign
i\ufb01cant d
ifferences between UK-adopted
\n
internat
ional account
ing standards and EU IFRS.
\n
The following parts of the Risk review and Capital review
\n
form part of these \ufb01nancial statements:
\n
a) Risk review: Disclosures marked as \u2018audited\u2019 from the start
\n
of the Credit Risk section (page 236) to the end of Other
\n
princ
ipal r
isks in the same section (page 319).
\n
b) Capital review: Tables marked as \u2018audited\u2019 from the start
\n
of \u2018CRD Capital base\u2019 to the end of \u2018Movement in total
\n
capital\u2019, excluding \u2018Total risk-weighted assets\u2019 (pages 321 to
\n
322).
\n
Basis of preparation
\n
The consolidated and Company \ufb01nanc
ial statements have
\n
been prepared on a going concern basis and under the
\n
histor
ical cost convent
ion, as modif
ied by the revaluat
ion of
\n
cash-settled share-based payments, fair value through
\n
other comprehensive income, and \ufb01nanc
ial assets and
\n
liab
il
it
ies (
includ
ing der
ivat
ives) at fa
ir value through pro\ufb01t or
\n
loss.
\n
The consolidated \ufb01nanc
ial statements are presented
in
\n
United States dollars ($), being the presentation currency of
\n
the Group and functional currency of the Company, and all
\n
values are rounded to the nearest mill
ion dollars, except
\n
when otherwise ind
icated.
\n
Sign
i\ufb01cant and other account
ing estimates and judgement
\n
In determin
ing the carry
ing amounts of certain assets and
\n
liab
il
it
ies, the Group makes assumpt
ions of the effects of
\n
uncertain future events on those assets and liab
il
it
ies at the
\n
balance sheet date. The Group\u2019s estimates and assumptions
\n
are based on histor
ical exper
ience and expectation of future
\n
events and are reviewed period
ically. Further
informat
ion
\n
about key assumptions concerning the future, and other key
\n
sources of estimat
ion uncerta
inty and judgement, are set
\n
out in the relevant disclosure notes for the areas set out
\n
under the relevant headings below:
\n
Sign
i\ufb01cant account
ing estimates and crit
ical judgements
\n
Sign
i\ufb01cant account
ing estimates and judgements represent
\n
those items which have a sign
i\ufb01cant r
isk of causing a
\n
material adjustment to the carrying amounts of assets and
\n
liab
il
it
ies w
ith
in the next year. S
ign
i\ufb01cant account
ing
\n
estimates and judgements are:
\n
\u2022
Credit impa
irment,
includ
ing evaluat
ion of management
\n
overlays and post-model adjustments, and determinat
ion
\n
of probabil
ity we
ight
ings for Stage 3
ind
iv
idually assessed
\n
provis
ions (Note 8)
\n
\u2022
Financ
ial
instruments measured at fair value (Note 13)
\n
\u2022
Investments in subsid
iary undertak
ings, jo
int ventures and
\n
associates \u2013 China Bohai associate accounting and
\n
impa
irment analys
is (Note 32)
\n
Other areas of accounting estimate and judgement
\n
Other areas of accounting estimate and judgement do not
\n
meet the de\ufb01nit
ion under IAS 1 of sign
i\ufb01cant account
ing
\n
estimates or crit
ical account
ing judgements, but the
\n
recognit
ion of certa
in material assets and liab
il
it
ies are
\n
based on assumptions and/or are subject to long-term
\n
uncertaint
ies. The other areas of account
ing estimate and
\n
judgement are:
\n
\u2022 Taxation (Note 10)
\n
\u2022
Goodwill impa
irment (Note 17)
\n
\u2022
Property, plant and equipment (Note 18)
\n
\u2022
Recoverable amounts for aircraft operating lease assets
\n
(Note 18)
\n
\u2022
Retirement bene\ufb01t obligat
ions (Note 30)
\n
\u2022
Provis
ions for l
iab
il
it
ies and charges (Note 24)
\n
\u2022
Share-based payments (Note 31)
\n
Climate impact on the Group\u2019s balance sheet
\n
Climate, and the impact of climate on the Group\u2019s balance
\n
sheet is considered as an area of sign
i\ufb01cant account
ing
\n
estimate and judgment through the uncertainty of future
\n
events and the impact of that uncertainty on the Group\u2019s
\n
assets and liab
il
it
ies. It
is noted that although not currently
\n
quantitat
ively mater
ial, the Group considers climate to be
\n
qualitat
ively mater
ial to the Group.
\n
The Group has assessed the impact of climate risk on the
\n
\ufb01nancial report. Th
is is set out with
in the Susta
inable and
\n
Responsible Business chapter on pages 64 to 66 which
\n
incorporates the Group\u2019s Climate-related Financ
ial
\n
Disclosures which align with the recommendations from the
\n
Task Force for Climate related Financ
ial D
isclosures (TCFD).
\n
Further risk disclosure has been provided on pages 301 and
\n
319 of the Princ
ipal R
isks and Uncertaint
ies sect
ion of the
\n
Annual Report where the Group has described how it
\n
manages climate risk as an Integrated Risk Type.
The areas of impact and where judgements and the use of
\n
estimates have been applied were credit risk and the impact
\n
on lending portfolios; Environmental, Sustainab
il
ity or
\n
Governance (ESG) features with
in
issued loans and bonds;
\n
physical risk on our mortgage lending portfolio; and, the
\n
corporate plan, in respect of which forward looking cash
\n
\ufb02ows impact the recoverabil
ity of certa
in assets, includ
ing of
\n
goodwill, deferred tax assets and investments in subsid
iary
\n
undertakings.
\n
This assessment on the corporate loan portfolio was
\n
undertaken by consider
ing the matur
ity pro\ufb01le of the loan
\n
portfolio which is major
ity shorter term. Trans
it
ion r
isk, as our
\n
clients move to lower carbon emitt
ing revenues, (e
ither by
\n
virtue of legislat
ion or chang
ing end customer preference) is
\n
considered with reference to client transit
ion pathways and
\n
manifests over a longer term than the maturity of the loan
\n
book (up to 2050). Further transit
ion r
isk is managed through
\n
reviews of clients with ESG risk by the Group\u2019s Risk function,
\n
and through an ongoing process of ident
ify
ing clients which
\n
have transit
ion pathways that are Par
is 1.5 degree compliant
\n
and congruent with the Groups.
\n
Physical risk is already included with
in the majority of our
\n
mortgage lending and we have applied scenario analysis
\n
against the pathways of different temperature addit
ions
\n
and country policy scenarios. We also assess the impact of
\n
climate risk on the classif
icat
ion of \ufb01nanc
ial
instruments
\n
under IFRS 9, when ESG triggers may affect the cash \ufb02ows
\n
received by the Group under the contractual terms of the
\n
instrument.
\n
The Group Climate Risk team have performed a top-down
\n
quantitat
ive assessment of the
impact of climate risk on the
\n
IFRS 9 ECL provis
ion. Th
is assessment has been performed
\n
across both the CCIB and CPBB portfolios. CCIB includes
\n
Corporates, Sovereign, Asset Backed Securit
ies, Commerc
ial
\n
and Special
ised Lend
ing. CPBB includes Mortgages, Personal
\n
Loans and Credit Cards. The climate adjusted ECL was
\n
estimated by adding climate scalars (multipl
icat
ive
\n
adjustments) to the business as usual ECL. The scalars, such
\n
as LGD increases, have been informed by the judgement of
\n
using three Network of Central Banks and Supervisors for
\n
Greening the Financ
ial System (NGFS) pathways/scenar
ios,
\n
being Early Action, Late Action and No Addit
ional Act
ion.
\n
These pathways have been probabil
ity we
ighted and
\n
generally include the addit
ion of carbon charges/taxes over
\n
time to model transit
ion r
isk. The impact assessment which is
\n
considered a resulted in an marginal ECL increase across
\n
CCIB and CPBB which will not be recorded as an overlay for
\n
the 2022 year end (in line with our view that the quantitat
ive
\n
impact of Climate Risk is currently lim
ited).
\n
The Group\u2019s corporate plan has a 5 year outlook and already
\n
includes where we have committed to transit
ion
ing away
\n
from certain high carbon sectors (i.e. coal), offset by
\n
transit
ion \ufb01nance opportun
it
ies. Th
is is shorter term than
\n
many of the climate scenario outlooks but seeks to capture
\n
the nearer term performance as required by recoverabil
ity
\n
models. We have for the \ufb01rst time in the 2023 corporate plan
\n
included antic
ipated ECL charges l
inked to climate for three
\n
sectors (Oil and Gas, Metals and Min
ing and Power) over the
\n
5 years. This addit
ion of ECL has not
in itself, impacted the
\n
recoverabil
ity of assets supported by d
iscounted cash \ufb02ow
\n
models (such as Value in Use) which util
ise the corporate
\n
plan.
\n
With the aim to enhance our internal scenario analysis
\n
capabil
it
ies in line with our Risk Appetite Statement, in 2022
\n
we assessed the impact on our CCIB corporate client
\n
portfolio based on three International Energy Agency (IEA)
\n
scenarios and three Phase 2 scenarios from the NGFS
\n
(Which align to the CBES scenarios) and partic
ipated
in the
\n
Monetary Authority of Singapore Industry-Wide Stress Test.
\n
We also assessed the impact of sea level rises under various
\n
Intergovernmental Panel on Climate Change (IPCC)
\n
Representative Concentration Pathways (RCP) scenarios to
\n
explore the Physical Risk impact on the Consumer, Private
\n
and Business Banking (CPBB) resident
ial mortgage portfol
io
\n
over short- and long-term time horizons for internal risk
\n
management purposes. Notwithstand
ing these challenges,
\n
our work to date, using certain assumptions and proxies,
\n
ind
icates that our bus
iness is resil
ient to all Network of
\n
Central Banks and Supervisors for Greening the Financ
ial
\n
System (NGFS) and IEA scenarios that were explored.
\n
The Group, although acknowledging the lim
itat
ions of
\n
current data available, increas
ing soph
ist
icat
ion of models
\n
evolving and nascent nature of climate impacts on internal
\n
and client assets, considers Climate Risk to have lim
ited
\n
quantitat
ive
impact in the immed
iate term and as a longer
\n
term risk will be addressed through its business strategy and
\n
\ufb01nancial plann
ing as the Group implements its net zero
\n
journey.
\n
IFRS and Hong Kong accounting requirements
\n
As required by the Hong Kong List
ing Rules, an explanat
ion
\n
of the differences in accounting practices between UK-
\n
adopted IFRS and Hong Kong Financ
ial Report
ing Standards
\n
is required to be disclosed. There would be no sign
i\ufb01cant
\n
differences had these accounts been prepared in
\n
accordance with Hong Kong Financ
ial Report
ing Standards.
\n
Comparatives
\n
Certain comparatives have been restated in line with current
\n
year disclosures. Details of these changes are set out in the
\n
relevant sections and notes below:
\n
\u2022
Note 2 Segmental informat
ion
\n
\u2022
Note 4 Net fees and commiss
ion
\n
\u2022
Note 12 Earnings per ordinary share
\n
\u2022
Note 13 Financ
ial
instruments
\n
\u2022
Note 14 Derivat
ive \ufb01nancial
instruments
\n
\u2022
Note 33 Structured entit
ies
\n
\u2022
Note 36 Related party transactions
\n
\u2022
Risk review: various credit risk tables for new segment
\n
Ventures and Operational Risk events and losses
\n
\u2022
Capital review: new segment Ventures
\n
New accounting standards in issue but not yet effective
\n
IFRS 17 Insurance Contracts
\n
IFRS 17 Insurance Contracts was issued in May 2017 (and
\n
subsequently amended in June 2020) to replace IFRS 4
\n
Insurance Contracts and to establish a comprehensive
\n
standard for inceptors of insurance polic
ies. The Group w
ill
\n
apply IFRS 17 for annual reporting periods beginn
ing on
\n
January 1, 2023. IFRS 17 will not have a material impact on the
\n
Group\u2019s \ufb01nancial statements.
Going concern
\n
These \ufb01nancial statements were approved by the Board of
\n
directors on 16 February 2023. The directors have made an
\n
assessment of the Group\u2019s abil
ity to cont
inue as a going
\n
concern. This assessment has been made having considered
\n
the impact of COVID-19, macroeconomic and geopolit
ical
\n
headwinds, includ
ing:
\n
\u2022
Review of the Group Strategy and Corporate Plan
\n
\u2022
An assessment of the actual performance to date, loan
\n
book quality, credit impa
irment, legal, regulatory and
\n
compliance matters, and the updated annual budget
\n
\u2022
Considerat
ion of stress test
ing performed, includ
ing both
\n
the Bank of England annual stress test and a Group
\n
Recovery and Resolution Plan (RRP) as submitted to the
\n
PRA. Both these submiss
ions
include the applicat
ion of
\n
stressed scenarios includ
ing; COVID add
it
ional waves w
ith
\n
the accompanying economic shocks, credit impact and
\n
short term liqu
id
ity shocks. Under the tests and through
\n
the range of scenarios, the results of these exercises and
\n
the RRP demonstrate that the Group has suf\ufb01cient cap
ital
\n
and liqu
id
ity to continue as a going concern and meet
\n
min
imum regulatory cap
ital and liqu
id
ity requirements
\n
\u2022
Analysis of the capital, funding and liqu
id
ity posit
ion of the
\n
Group, includ
ing the cap
ital and leverage ratios, and
\n
ICAAP which summarises the Group\u2019s capital and risk
\n
assessment processes, assesses its capital requirements
\n
and the adequacy of resources to meet them. Further,
\n
funding and liqu
id
ity was considered in the context of the
\n
risk appetite metrics, includ
ing the ADR and LCR rat
ios
\n
\u2022
The Group\u2019s Internal Liqu
id
ity Adequacy Assessment
\n
Process (ILAAP), which considers the Group\u2019s liqu
id
ity
\n
posit
ion,
its framework and whether suf\ufb01c
ient l
iqu
id
ity
\n
resources are being mainta
ined to meet l
iab
il
it
ies as they
\n
fall due, was also reviewed
\n
\u2022
The level of debt in issue, includ
ing redempt
ions and
\n
issuances during the year, debt falling due for repayment
\n
in the next 12 months and further planned debt issuances,
\n
includ
ing the appet
ite in the market for the Group\u2019s debt
\n
\u2022
A detailed review of all princ
ipal and emerg
ing risks
\n
Based on the analysis performed, the directors con\ufb01rm they
\n
are satisf
ied that the Group has adequate resources to
\n
continue in business for a period of at least 12 months from 16
\n
February 2023. For this reason, the Group continues to adopt
\n
the going concern basis of accounting for preparing the
\n
\ufb01nancial statements.
Accounting policy
\n
Interest income for \ufb01nanc
ial assets held at e
ither fair value through other comprehensive income or amortised cost, and
\n
interest expense on all \ufb01nanc
ial l
iab
il
it
ies held at amort
ised cost is recognised in pro\ufb01t or loss using the effective interest
\n
method.
\n
The effective interest method is a method of calculating the amortised cost of a \ufb01nanc
ial asset or a \ufb01nancial l
iab
il
ity and of
\n
allocating the interest income or interest expense over the relevant period. The effective interest rate is the rate that
\n
discounts estimated future cash payments or receipts through the expected life of the \ufb01nanc
ial
instrument or, when
\n
appropriate, a shorter period, to the net carrying amount of the \ufb01nanc
ial asset or \ufb01nancial l
iab
il
ity. When calculating the
\n
effective interest rate, the Group estimates cash \ufb02ows consider
ing all contractual terms of the \ufb01nancial
instrument (for
\n
example prepayment options) but does not consider future credit losses. The calculation includes all fees paid or received
\n
between parties to the contract that are an integral part of the effective interest rate, transaction costs and all other
\n
premiums or discounts. For \ufb02oating-rate \ufb01nanc
ial
instruments, period
ic re-est
imat
ion of cash \ufb02ows that re\ufb02ect the
\n
movements in the market rates of interest alters the effective interest rate. Where the estimates of cash \ufb02ows have been
\n
revised, the carrying amount of the \ufb01nanc
ial asset or l
iab
il
ity is adjusted to re\ufb02ect the actual and revised cash \ufb02ows,
\n
discounted at the instruments orig
inal effect
ive interest rate. The adjustment is recognised as interest income or expense in
\n
the period in which the revis
ion
is made as long as the change in estimates is not due to credit issues.
\n
Interest income for \ufb01nanc
ial assets that are e
ither held at fair value through other comprehensive income or amortised cost
\n
that have become credit-impa
ired subsequent to
in
it
ial recognit
ion (stage 3) and have had amounts wr
itten off, is
\n
recognised using the credit adjusted effective interest rate. This rate is calculated in the same manner as the effective
\n
interest rate except that expected credit losses are included in the expected cash \ufb02ows. Interest income is therefore
\n
recognised on the amortised cost of the \ufb01nanc
ial asset
includ
ing expected cred
it losses. Should the credit risk on a stage 3
\n
\ufb01nancial asset
improve such that the \ufb01nanc
ial asset
is no longer considered credit-impa
ired,
interest income recognit
ion
\n
reverts to a computation based on the rehabil
itated gross carry
ing value of the \ufb01nanc
ial asset.
Accounting policy
\n
Fees and commiss
ions charged for serv
ices provided by the Group are recognised as revenue when the Group satisf
ies the
\n
performance obligat
ions to the customer. Serv
ices provided by the Group are either satisf
ied at po
int in time or over time.
\n
Fees and commiss
ion
income are measured based on the considerat
ion spec
if
ied
in the contract with the customer.
\n
The Group can act as trustee or in other \ufb01duc
iary capac
it
ies that result
in the holding or placing of assets on behalf of
\n
ind
iv
iduals, trusts, retirement bene\ufb01t plans and other inst
itut
ions. The assets and income aris
ing thereon are excluded from
\n
these \ufb01nancial statements, as they are not assets and
income of the Group.
Accounting policy
\n
Gains and losses aris
ing from changes
in the fair value of \ufb01nanc
ial
instruments held at fair value through pro\ufb01t or loss are
\n
recorded in net trading income in the period in which they arise. This includes contractual interest receivable or payable.
\n
Income is recognised from the sale and purchase of trading posit
ions, marg
ins on market making and customer business and
\n
fair value changes.
\n
When the in
it
ial fair value of a \ufb01nanc
ial
instrument held at fair value through pro\ufb01t or loss relies on unobservable inputs, the
\n
difference between the in
it
ial valuation and the transaction price is amortised to net trading income as the inputs become
\n
observable or over the life of the instrument, whichever is shorter. Any unamortised \u2018day one\u2019 gain is released to net trading
\n
income if the transaction is terminated.
Accounting policy
\n
Operating lease income is recognised on a straight-line basis over the period of the lease unless another systematic basis is
\n
more appropriate.
\n
Div
idends on equ
ity instruments are recognised when the Group\u2019s right to receive payment is established.
\n
On disposal of fair value through other comprehensive income debt instruments, the cumulative gain or loss recognised in
\n
other comprehensive income is recycled to the pro\ufb01t or loss in other operating income.
\n
When the Group loses control of the subsid
iary or d
isposal group, the difference between the considerat
ion rece
ived and the
\n
carrying amount of the subsid
iary or d
isposal group is recognised as a gain or loss on sale of the business.
Accounting policy
\n
Short-term employee bene\ufb01ts: salaries and social security expenses are recognised over the period in which the employees
\n
provide the service. Variable compensation is included with
in share-based payments costs and wages and salar
ies. Further
\n
details are disclosed in the Directors\u2019 remuneration report (pages 184 to 205).
\n
Pension costs: contribut
ions to de\ufb01ned contr
ibut
ion pens
ion schemes are recognised in pro\ufb01t or loss when payable. For
\n
de\ufb01ned bene\ufb01t plans, net interest expense, service costs and expenses are recognised in the income statement. Further
\n
details are provided in Note 30.
\n
Share-based compensation: the Group operates equity-settled and cash-settled share-based payment compensation
\n
plans. The fair value of the employee services (measured by the fair value of the option granted) received in exchange for the
\n
grant of the options is recognised as an expense. Further details are provided in Note 31.
Accounting policy
\n
Sign
i\ufb01cant account
ing estimates and judgements
\n
The Group\u2019s expected credit loss (ECL) calculations are outputs of complex models with a number of underlying assumptions.
\n
The sign
i\ufb01cant judgements
in determin
ing ECL
include:
\n
\u2022
The Group\u2019s criter
ia for assess
ing if there has been a sign
i\ufb01cant
increase in credit risk;
\n
\u2022
Development of expected credit loss models, includ
ing the cho
ice of inputs relating to macroeconomic variables;
\n
\u2022
Evaluation of management overlays and post-model adjustments;
\n
\u2022
Determinat
ion of probab
il
ity we
ight
ings for Stage 3
ind
iv
idually assessed provis
ions
\n
The calculation of credit impa
irment prov
is
ions also
involves expert credit judgement to be applied by the credit risk
\n
management team based upon counterparty informat
ion they rece
ive from various sources includ
ing relat
ionsh
ip managers
\n
and on external market informat
ion. Deta
ils on the approach for determin
ing ECL can be found
in the credit risk section,
\n
under IFRS 9 Methodology (page 236).
\n
Estimates of forecasts of key macroeconomic variables underlying the ECL calculation can be found with
in the R
isk review,
\n
Key assumptions and judgements in determin
ing expected cred
it loss (page 271).
\n
Expected credit losses
\n
ECL are determined for all \ufb01nanc
ial debt
instruments that are classif
ied at amort
ised cost or fair value through other
\n
comprehensive income, undrawn commitments and \ufb01nanc
ial guarantees.
\n
An ECL represents the present value of expected cash shortfalls over the residual term of a \ufb01nanc
ial asset, undrawn
\n
commitment or \ufb01nanc
ial guarantee.
\n
A cash shortfall is the difference between the cash \ufb02ows that are due in accordance with the contractual terms of the
\n
instrument and the cash \ufb02ows that the Group expects to receive over the contractual life of the instrument.
\n
Measurement
\n
ECL are computed as unbiased, probabil
ity-we
ighted amounts which are determined by evaluating a range of reasonably
\n
possible outcomes, the time value of money, and consider
ing all reasonable and supportable
informat
ion
includ
ing that
\n
which is forward-looking.
\n
For material portfolios, the estimate of expected cash shortfalls is determined by multiply
ing the probab
il
ity of default (PD)
\n
with the loss given default (LGD) with the expected exposure at the time of default (EAD). There may be multiple default
\n
events over the lifet
ime of an
instrument. Further details on the components of PD, LGD and EAD are disclosed in the Credit
\n
risk section. For less material Retail Banking loan portfolios, the Group has adopted less sophist
icated approaches based on
\n
histor
ical roll rates or loss rates.
\n
Forward-looking economic assumptions are incorporated into the PD, LGD and EAD where relevant and where they
\n
in\ufb02uence credit risk, such as GDP growth rates, interest rates, house price ind
ices and commod
ity prices among others. These
\n
assumptions are incorporated using the Group\u2019s most likely forecast for a range of macroeconomic assumptions. These
\n
forecasts are determined using all reasonable and supportable informat
ion, wh
ich includes both internally developed
\n
forecasts and those available externally, and are consistent with those used for budgeting, forecasting and capital planning.
\n
To account for the potential non-linear
ity
in credit losses, multiple forward-looking scenarios are incorporated into the range
\n
of reasonably possible outcomes for all material portfolios. For example, where there is a greater risk of downside credit
\n
losses than upside gains, multiple forward-looking economic scenarios are incorporated into the range of reasonably
\n
possible outcomes, both in respect of determin
ing the PD (and where relevant, the LGD and EAD) and
in determin
ing the
\n
overall ECL amounts. These scenarios are determined using a Monte Carlo approach centred around the Group\u2019s most likely
\n
forecast of macroeconomic assumptions.
\n
The period over which cash shortfalls are determined is generally lim
ited to the max
imum contractual period for which the
\n
Group is exposed to credit risk. However, for certain revolving credit facil
it
ies, which include credit cards or overdrafts, the
\n
Group\u2019s exposure to credit risk is not lim
ited to the contractual per
iod. For these instruments, the Group estimates an
\n
appropriate life based on the period that the Group is exposed to credit risk, which includes the effect of credit risk
\n
management actions such as the withdrawal of undrawn facil
it
ies.
\n
For credit-impa
ired \ufb01nancial
instruments, the estimate of cash shortfalls may require the use of expert credit judgement.
The estimate of expected cash shortfalls on a collateralised \ufb01nanc
ial
instrument re\ufb02ects the amount and tim
ing of cash
\n
\ufb02ows that are expected from foreclosure on the collateral less the costs of obtain
ing and sell
ing the collateral, regardless of
\n
whether foreclosure is deemed probable.
\n
Cash \ufb02ows from unfunded credit enhancements held are included with
in the measurement of expected cred
it losses if they
\n
are part of, or integral to, the contractual terms of the instrument (this includes \ufb01nanc
ial guarantees, unfunded r
isk
\n
partic
ipat
ions and other non-derivat
ive cred
it insurance). Although non-integral credit enhancements do not impact the
\n
measurement of expected credit losses, a reimbursement asset is recognised to the extent of the ECL recorded.
\n
Cash shortfalls are discounted using the effective interest rate (or credit-adjusted effective interest rate for purchased or
\n
orig
inated cred
it-impa
ired
instruments (POCI)) on the \ufb01nanc
ial
instrument as calculated at in
it
ial recognit
ion or
if the
\n
instrument has a variable interest rate, the current effective interest rate determined under the contract.
\n
Instruments
Location of expected credit loss provis
ions
\n
Financ
ial assets held at amort
ised cost
Loss provis
ions: netted aga
inst gross carrying value\u00b9
\n
Financ
ial assets held FVOCI \u2013 Debt
instruments
Other comprehensive income (FVOCI expected credit loss reserve)
\n
2
\n
Loan commitments
Provis
ions for l
iab
il
it
ies and charges
\n
3
\n
Financ
ial guarantees
Provis
ions for l
iab
il
it
ies and charges
\n
3
\n
1
Purchased or orig
inated cred
it-impa
ired assets do not attract an expected cred
it loss provis
ion on
in
it
ial recognit
ion. An expected cred
it loss provis
ion w
ill be
\n
recognised only if there is an increase in expected credit losses from that considered at in
it
ial recognit
ion
\n
2
Debt and treasury securit
ies class
if
ied as fa
ir value through other comprehensive income (FVOCI) are held at fair value on the face of the balance sheet. The
\n
expected credit loss attributed to these instruments is held as a separate reserve with
in other comprehens
ive income (OCI) and is recycled to the pro\ufb01t and
\n
loss account along with any fair value measurement gains or losses held with
in FVOCI when the appl
icable instruments are derecognised
\n
3
Expected credit loss on loan commitments and \ufb01nanc
ial guarantees
is recognised as a liab
il
ity provis
ion. Where a \ufb01nancial
instrument includes both a loan
\n
(i.e. \ufb01nanc
ial asset component) and an undrawn comm
itment (i.e. loan commitment component), and it is not possible to separately ident
ify the expected
\n
credit loss on these components, expected credit loss amounts on the loan commitment are recognised together with expected credit loss amounts on the
\n
\ufb01nancial asset. To the extent the comb
ined expected credit loss exceeds the gross carrying amount of the \ufb01nanc
ial asset, the expected cred
it loss is
\n
recognised as a liab
il
ity provis
ion
\n
Recognit
ion
\n
12 months expected credit losses (stage 1)
Expected credit losses are recognised at the time of in
it
ial recognit
ion of a \ufb01nancial
\n
instrument and represent the lifet
ime cash shortfalls ar
is
ing from poss
ible default events up to 12 months into the future from
\n
the balance sheet date. Expected credit losses continue to be determined on this basis until there is either a sign
i\ufb01cant
\n
increase in the credit risk of an instrument or the instrument becomes credit-impa
ired. If an
instrument is no longer
\n
considered to exhib
it a s
ign
i\ufb01cant
increase in credit risk, expected credit losses will revert to being determined on a 12-month
\n
basis.
\n
Sign
i\ufb01cant
increase in credit risk (Stage 2)
If a \ufb01nancial asset exper
iences a sign
i\ufb01cant
increase in credit risk (SICR) since in
it
ial
\n
recognit
ion, an expected cred
it loss provis
ion
is recognised for default events that may occur over the lifet
ime of the asset.
\n
Sign
i\ufb01cant
increase in credit risk is assessed by comparing the risk of default of an exposure at the reporting date to the risk
\n
of default at orig
inat
ion (after taking into account the passage of time). Sign
i\ufb01cant does not mean stat
ist
ically s
ign
i\ufb01cant nor
\n
is it assessed in the context of changes in expected credit loss. Whether a change in the risk of default is sign
i\ufb01cant or not
is
\n
assessed using a number of quantitat
ive and qual
itat
ive factors, the we
ight of which depends on the type of product and
\n
counterparty. Financ
ial assets that are 30 or more days past due and not cred
it-impa
ired w
ill always be considered to have
\n
experienced a sign
i\ufb01cant
increase in credit risk. For less material portfolios where a loss rate or roll rate approach is applied to
\n
compute expected credit loss, sign
i\ufb01cant
increase in credit risk is primar
ily based on 30 days past due.
\n
Quantitat
ive factors
include an assessment of whether there has been sign
i\ufb01cant
increase in the forward-looking probabil
ity
\n
of default (PD) since orig
inat
ion. A forward-looking PD is one that is adjusted for future economic condit
ions to the extent
\n
these are correlated to changes in credit risk. We compare the residual lifet
ime PD at the balance sheet date to the res
idual
\n
lifet
ime PD that was expected at the t
ime of orig
inat
ion for the same point in the term structure and determine whether both
\n
the absolute and relative change between the two exceeds predetermined thresholds. To the extent that the differences
\n
between the measures of default outlined exceed the de\ufb01ned thresholds, the instrument is considered to have experienced
\n
a sign
i\ufb01cant
increase in credit risk.
\n
Qualitat
ive factors assessed
include those linked to current credit risk management processes, such as lending placed on
\n
non-purely precautionary early alert (and subject to closer monitor
ing).
\n
A non-purely precautionary early alert account is one which exhib
its r
isk or potential weaknesses of a material nature
\n
requir
ing closer mon
itor
ing, superv
is
ion, or attent
ion by management. Weaknesses in such a borrower\u2019s account, if left
\n
uncorrected, could result in deteriorat
ion of repayment prospects and the l
ikel
ihood of be
ing downgraded. Indicators could
\n
include a rapid erosion of posit
ion w
ith
in the
industry, concerns over management\u2019s abil
ity to manage operat
ions, weak/
\n
deteriorat
ing operat
ing results, liqu
id
ity strain and overdue balances among other factors.
Credit-impa
ired (or defaulted) exposures (Stage 3)
Financ
ial assets that are cred
it-impa
ired (or
in default) represent those that
\n
are at least 90 days past due in respect of princ
ipal and/or
interest. Financ
ial assets are also cons
idered to be credit-impa
ired
\n
where the obligors are unlikely to pay on the occurrence of one or more observable events that have a detrimental impact on
\n
the estimated future cash \ufb02ows of the \ufb01nanc
ial asset. It may not be poss
ible to ident
ify a s
ingle discrete event but instead
\n
the combined effect of several events may cause \ufb01nanc
ial assets to become cred
it-impa
ired.
\n
\u2022
Evidence that a \ufb01nanc
ial asset
is credit-impa
ired
includes observable data about the following events:
\n
\u2022
Sign
i\ufb01cant \ufb01nancial d
iff
iculty of the
issuer or borrower;
\n
\u2022
Breach of contract such as default or a past due event;
\n
\u2022
For economic or contractual reasons relating to the borrower\u2019s \ufb01nanc
ial d
iff
iculty, the lenders of the borrower have granted
\n
the borrower concession/s that lenders would not otherwise consider. This would include forbearance actions (page 256);
\n
\u2022
Pending or actual bankruptcy or other \ufb01nanc
ial reorgan
isat
ion to avo
id or delay discharge of the borrower\u2019s obligat
ion/s;
\n
\u2022
The disappearance of an active market for the applicable \ufb01nanc
ial asset due to \ufb01nancial d
iff
icult
ies of the borrower;
\n
\u2022
Purchase or orig
inat
ion of a \ufb01nanc
ial asset at a deep d
iscount that re\ufb02ects incurred credit losses
\n
Lending commitments to a credit-impa
ired obl
igor that have not yet been drawn down are included to the extent that the
\n
commitment cannot be withdrawn. Loss provis
ions aga
inst credit-impa
ired \ufb01nancial assets are determ
ined based on an
\n
assessment of the recoverable cash \ufb02ows under a range of scenarios, includ
ing the real
isat
ion of any collateral held where
\n
appropriate. The loss provis
ions held represent the d
ifference between the present value of the expected cash \ufb02ows,
\n
discounted at the instrument\u2019s orig
inal effect
ive interest rate, and the gross carrying value (includ
ing contractual
interest due
\n
but not paid) of the instrument prior to any credit impa
irment. The Group\u2019s de\ufb01nit
ion of default is aligned with the regulatory
\n
de\ufb01nit
ion of default as set out in the UK\u2019s onshored capital requirements regulations (Art 178).
\n
Expert credit judgement
\n
For Corporate & Institut
ional, Commerc
ial and Private Banking, borrowers are graded by credit risk management on a credit
\n
grading (CG) scale from CG1 to CG14. Once a borrower starts to exhib
it cred
it deteriorat
ion,
it will move along the credit
\n
grading scale in the performing book and when it is classif
ied as CG12 the cred
it assessment and oversight of the loan will
\n
continue to be managed by the business with support from the Stressed Assets Group for certain accounts.
\n
Borrowers graded CG12 exhib
it well-de\ufb01ned weaknesses
in areas such as management and/or performance but there is no
\n
current expectation of a loss of princ
ipal or
interest. Where the impa
irment assessment
ind
icates that there w
ill be a loss of
\n
princ
ipal on a loan, the borrower
is graded a CG14 while borrowers of other credit-impa
ired loans are graded CG13.
\n
Instruments graded CG13 or CG14 are regarded as stage 3.
\n
For ind
iv
idually sign
i\ufb01cant \ufb01nancial assets w
ith
in stage 3, Stressed Asset R
isk (SAR) will consider all judgements that have an
\n
impact on the expected future cash \ufb02ows of the asset. These include: the business prospects, industry and geo polit
ical
\n
climate of the customer, quality of realisable value of collateral, the Group\u2019s legal posit
ion relat
ive to other claimants and any
\n
renegotiat
ion/ forbearance/ mod
if
icat
ion options. The future cash \ufb02ow calculation involves sign
i\ufb01cant judgements and
\n
estimates. As new informat
ion becomes ava
ilable and further negotiat
ions/ forbearance measures are taken the est
imates
\n
of the future cash \ufb02ows will be revised, and will have an impact on the future cash \ufb02ow analysis.
\n
For \ufb01nancial assets wh
ich are not ind
iv
idually sign
i\ufb01cant, such as the Consumer Bank
ing portfolio or small business loans,
\n
which comprise a large number of homogeneous loans that share sim
ilar character
ist
ics, stat
ist
ical est
imates and
\n
techniques are used, as well as credit scoring analysis.
\n
Consumer and Business Banking clients are considered credit-impa
ired where they are more 90 days past due, or
if the
\n
borrower \ufb01les for bankruptcy or other forbearance programme, the borrower is deceased or the business is closed in the case
\n
of a small business, or if the borrower surrenders the collateral, or there is an ident
i\ufb01ed fraud on the account. Add
it
ionally,
if
\n
the account is unsecured and the borrower has other credit accounts with the Group that are considered credit-impa
ired, the
\n
account may be also be credit-impa
ired.
\n
Techniques used to compute impa
irment amounts use models wh
ich analyse histor
ical repayment and default rates over a
\n
time horizon. Where various models are used, judgement is required to analyse the available informat
ion prov
ided and
\n
select the appropriate model or combinat
ion of models to use.
\n
Expert credit judgement is also applied to determine whether any post-model adjustments are required for credit risk
\n
elements which are not captured by the models.
\n
Modif
ied \ufb01nancial
instruments
\n
Where the orig
inal contractual terms of a \ufb01nancial asset have been mod
if
ied for cred
it reasons and the instrument has not
\n
been derecognised (an instrument is derecognised when a modif
icat
ion results in a change in cash \ufb02ows that the Group
\n
would consider substantial), the resulting modif
icat
ion loss is recognised with
in cred
it impa
irment
in the income statement
\n
with a corresponding decrease in the gross carrying value of the asset. If the modif
icat
ion involved a concession that the
\n
bank would not otherwise consider, the instrument is considered to be credit-impa
ired and
is considered forborne.
Expected credit loss for modif
ied \ufb01nancial assets that have not been derecogn
ised and are not considered to be credit-
\n
impa
ired w
ill be recognised on a 12-month basis, or a lifet
ime bas
is, if there is a sign
i\ufb01cant
increase in credit risk. These assets
\n
are assessed (by comparison to the orig
inat
ion date) to determine whether there has been a sign
i\ufb01cant
increase in credit risk
\n
subsequent to the modif
icat
ion. Although loans may be modif
ied for non-cred
it reasons, a sign
i\ufb01cant
increase in credit risk
\n
may occur. In addit
ion to the recogn
it
ion of mod
if
icat
ion gains and losses, the revised carrying value of modif
ied \ufb01nancial
\n
assets will impact the calculation of expected credit losses, with any increase or decrease in expected credit loss recognised
\n
with
in
impa
irment.
\n
Forborne loans
\n
Forborne loans are those loans that have been modif
ied
in response to a customer\u2019s \ufb01nanc
ial d
iff
icult
ies. Forbearance
\n
strategies assist clients who are temporarily in \ufb01nanc
ial d
istress and are unable to meet their orig
inal contractual repayment
\n
terms. Forbearance can be in
it
iated by the client, the Group or a third-party includ
ing government sponsored programmes
\n
or a conglomerate of credit inst
itut
ions. Forbearance may include debt restructuring such as new repayment schedules,
\n
payment deferrals, tenor extensions, interest only payments, lower interest rates, forgiveness of princ
ipal,
interest or fees, or
\n
relaxation of loan covenants.
\n
Forborne loans that have been modif
ied (and not derecogn
ised) on terms that are not consistent with those readily
\n
available in the market and/or where we have granted a concession compared to the orig
inal terms of the loans are
\n
considered credit-impa
ired
if there is a detrimental impact on cash \ufb02ows. The modif
icat
ion loss (see Classif
icat
ion and
\n
measurement \u2013 Modif
icat
ions) is recognised in the pro\ufb01t or loss with
in cred
it impa
irment and the gross carry
ing value of the
\n
loan reduced by the same amount. The modif
ied loan
is disclosed as \u2018Loans subject to forbearance \u2013 credit-impa
ired\u2019.
\n
Loans that have been subject to a forbearance modif
icat
ion, but which are not considered credit-impa
ired (not class
if
ied as
\n
CG13 or CG14), are disclosed as \u2018Forborne \u2013 not credit-impa
ired\u2019. Th
is may include amendments to covenants with
in the
\n
contractual terms.
\n
Write-offs of credit-impa
ired
instruments and reversal of impa
irment
\n
To the extent a \ufb01nancial debt
instrument is considered irrecoverable, the applicable portion of the gross carrying value is
\n
written off against the related loan provis
ion. Such loans are wr
itten off after all the necessary procedures have been
\n
completed, it is decided that there is no realist
ic probab
il
ity of recovery and the amount of the loss has been determ
ined.
\n
Subsequent recoveries of amounts previously written off decrease the amount of the provis
ion for cred
it impa
irment
in the
\n
income statement.
\n
Loss provis
ions on purchased or or
ig
inated cred
it-impa
ired
instruments (POCI)
\n
The Group measures expected credit loss on a lifet
ime bas
is for POCI instruments throughout the life of the instrument.
\n
However, expected credit loss is not recognised in a separate loss provis
ion on
in
it
ial recognit
ion for POCI
instruments as the
\n
lifet
ime expected cred
it loss is inherent with
in the gross carry
ing amount of the instruments. The Group recognises the
\n
change in lifet
ime expected cred
it losses aris
ing subsequent to
in
it
ial recognit
ion
in the income statement and the
\n
cumulative change as a loss provis
ion. Where l
ifet
ime expected cred
it losses on POCI instruments are less than those at in
it
ial
\n
recognit
ion, then the favourable d
ifferences are recognised as impa
irment ga
ins in the income statement (and as
\n
impa
irment loss where the expected cred
it losses are greater).
\n
Improvement in credit risk/curing
\n
A period may elapse from the point at which instruments enter lifet
ime expected cred
it losses (stage 2 or stage 3) and are
\n
reclassif
ied back to 12-month expected cred
it losses (stage 1). For \ufb01nanc
ial assets that are cred
it-impa
ired (stage 3), a
\n
transfer to stage 2 or stage 1 is only permitted where the instrument is no longer considered to be credit-impa
ired. An
\n
instrument will no longer be considered credit-impa
ired when there
is no shortfall of cash \ufb02ows compared to the orig
inal
\n
contractual terms.
\n
For \ufb01nancial assets w
ith
in stage 2, these can only be transferred to stage 1 when they are no longer cons
idered to have
\n
experienced a sign
i\ufb01cant
increase in credit risk.
\n
Where sign
i\ufb01cant
increase in credit risk was determined using quantitat
ive measures, the
instruments will automatically
\n
transfer back to stage 1 when the orig
inal PD based transfer cr
iter
ia are no longer met. Where
instruments were transferred
\n
to stage 2 due to an assessment of qualitat
ive factors, the
issues that led to the reclassif
icat
ion must be cured before the
\n
instruments can be reclassif
ied to stage 1. Th
is includes instances where management actions led to instruments being
\n
classif
ied as stage 2, requ
ir
ing that act
ion to be resolved before loans are reclassif
ied to stage 1.
\n
A forborne loan can only be removed from being disclosed as forborne if the loan is performing (stage 1 or 2) and a further
\n
two-year probation period is met.
\n
In order for a forborne loan to become performing, the following criter
ia have to be sat
isf
ied:
\n
\u2022
At least a year has passed with no default based upon the forborne contract terms
\n
\u2022
The customer is likely to repay its obligat
ions
in full without realis
ing secur
ity
\n
\u2022
The customer has no accumulated impa
irment aga
inst amount outstanding (except for ECL)
\n
Subsequent to the criter
ia above, a further two-year probat
ion period has to be ful\ufb01lled, whereby regular payments are
\n
made by the customer and none of the exposures to the customer are more than 30 days past due.
Accounting policy
\n
Refer to the below referenced notes for the relevant accounting policy.
Accounting policy
\n
Income tax payable on pro\ufb01ts is based on the applicable tax law in each jur
isd
ict
ion and
is recognised as an expense in the
\n
period in which pro\ufb01ts arise.
\n
Deferred tax is provided on temporary differences aris
ing between the tax bases of assets and l
iab
il
it
ies and the
ir carrying
\n
amounts in the consolidated \ufb01nanc
ial statements. Deferred tax
is determined using tax rates (and laws) that have been
\n
enacted or substantively enacted as at the balance sheet date, and that are expected to apply when the related deferred
\n
tax asset is realised or the deferred income tax liab
il
ity is settled.
\n
Deferred tax assets are recognised where it is probable that future taxable pro\ufb01t will be available against which the
\n
temporary differences can be util
ised. Where perm
itted, deferred tax assets and liab
il
it
ies are offset on an ent
ity basis and
\n
not by component of deferred taxation.
\n
Current and deferred tax relating to items which are charged or credited directly to equity, is credited or charged directly to
\n
equity and is subsequently recognised in the income statement together with the current or deferred gain or loss.
\n
Other accounting estimates and judgements
\n
\u2022
Determin
ing the Group\u2019s tax charge for the year
involves estimat
ion and judgement, wh
ich includes an interpretat
ion of
\n
local tax laws and an assessment of whether the tax authorit
ies w
ill accept the posit
ion taken. These judgements take
\n
account of external advice where appropriate, and the Group\u2019s view on settling with the relevant tax authorit
ies
\n
\u2022
The Group provides for current tax liab
il
it
ies at the best est
imate of the amount that is expected to be paid to the tax
\n
authorit
ies where an out\ufb02ow
is probable. In making its estimates the Group assumes that the tax authorit
ies w
ill examine
\n
all the amounts reported to them and have full knowledge of all relevant informat
ion
\n
\u2022
The recoverabil
ity of the Group\u2019s deferred tax assets
is based on management\u2019s judgement of the availab
il
ity of future
\n
taxable pro\ufb01ts against which the deferred tax assets will be util
ised. In prepar
ing management forecasts the effect of
\n
applicable laws and regulations relevant to the util
isat
ion of future taxable pro\ufb01ts have been considered.
Accounting policy
\n
Div
idends on ord
inary shares and preference shares classif
ied as equ
ity are recognised in equity in the year in which they are
\n
declared. Div
idends on ord
inary equity shares are recorded in the year in which they are declared and, in respect of the \ufb01nal
\n
div
idend, have been approved by the shareholders.
Accounting policy
\n
Basic earnings per ordinary share is calculated by div
id
ing the pro\ufb01t attributable to ordinary shareholders by the weighted
\n
average number of ordinary shares outstanding, excluding own shares held. Diluted earnings per ordinary share is calculated
\n
by div
id
ing the basic earnings, which require no adjustment for the effects of dilut
ive potent
ial ordinary shares, by the
\n
weighted average number of ordinary shares that would have been outstanding assuming the conversion of all dilut
ive
\n
potential ordinary shares, excluding own shares held.
\n
The Group also measures earnings per share on an underlying basis. This differs from earnings de\ufb01ned in IAS 33 Earnings per
\n
share. Underlying earnings is pro\ufb01t/(loss) attributable to ordinary shareholders adjusted for pro\ufb01ts or losses of a capital
\n
nature; amounts consequent to investment transactions driven by strategic intent; and other infrequent and/or exceptional
\n
transactions that are sign
i\ufb01cant or mater
ial in the context of the Group\u2019s normal business earnings for the year.
Classif
icat
ion and measurement
\n
Accounting policy
\n
The Group classif
ies
its \ufb01nanc
ial assets
into the following measurement categories: amortised cost; fair value through other
\n
comprehensive income (FVOCI); and fair value through pro\ufb01t or loss. Financ
ial l
iab
il
it
ies are class
if
ied as e
ither amortised
\n
cost, or held at fair value through pro\ufb01t or loss. Management determines the classif
icat
ion of its \ufb01nanc
ial assets and l
iab
il
it
ies
\n
at in
it
ial recognit
ion of the
instrument or, where applicable, at the time of reclassif
icat
ion.
\n
Financ
ial assets held at amort
ised cost and fair value through other comprehensive income
\n
Debt instruments held at amortised cost or held at FVOCI have contractual terms that give rise to cash \ufb02ows that are solely
\n
payments of princ
ipal and
interest (SPPI) characterist
ics. Pr
inc
ipal
is the fair value of the \ufb01nanc
ial asset at
in
it
ial recognit
ion
\n
but this may change over the life of the instrument as amounts are repaid. Interest consists of considerat
ion for the t
ime
\n
value of money, for the credit risk associated with the princ
ipal amount outstand
ing during a particular period and for other
\n
basic lending risks and costs, as well as a pro\ufb01t margin.
\n
In assessing whether the contractual cash \ufb02ows have SPPI characterist
ics, the Group cons
iders the contractual terms of the
\n
instrument. This includes assessing whether the \ufb01nanc
ial asset conta
ins a contractual term that could change the tim
ing or
\n
amount of contractual cash \ufb02ows such that it would not meet this condit
ion. In mak
ing the assessment, the Group considers:
\n
\u2022
Contingent events that would change the amount and tim
ing of cash \ufb02ows
\n
\u2022 Leverage features
\n
\u2022
Prepayment and extension terms
\n
\u2022
Terms that lim
it the Group\u2019s cla
im to cash \ufb02ows from specif
ied assets (e.g. non-recourse asset arrangements);
\n
\u2022
Features that modify considerat
ion of the t
ime value of money \u2013 e.g. period
ical reset of
interest rates
\n
Whether \ufb01nancial assets are held at amort
ised cost or at FVOCI depends on the object
ives of the bus
iness models under
\n
which the assets are held. A business model refers to how the Group manages \ufb01nanc
ial assets to generate cash \ufb02ows.
\n
The Group makes an assessment of the objective of a bus
iness model in which an asset is held at the ind
iv
idual product
\n
business line, and where applicable with
in bus
iness lines depending on the way the business is managed and informat
ion
is
\n
provided to management. Factors considered include:
\n
\u2022
How the performance of the product business line is evaluated and reported to the Group\u2019s management
\n
\u2022
How managers of the business model are compensated, includ
ing whether management
is compensated based on the
\n
fair value of assets or the contractual cash \ufb02ows collected
\n
\u2022
The risks that affect the performance of the business and how those risks are managed
\n
\u2022
The frequency, volume and tim
ing of sales
in prior periods, the reasons for such sales and expectations about future sales
\n
activ
ity
\n
The Group\u2019s business model assessment is as follows:
\n
Business model
Business object
ive
Characterist
ics
Businesses
Products
\n
Hold to
\n
collect
\n
Intent is to orig
inate
\n
\ufb01nancial assets and
\n
hold them to maturity,
\n
collecting the
\n
contractual cash \ufb02ows
\n
over the term of the
\n
instrument
\n
\u2022 Provid
ing \ufb01nancing and
\n
orig
inat
ing assets to earn interest
\n
income as primary income stream
\n
\u2022 Performing credit risk
\n
management activ
it
ies
\n
\u2022
Costs include funding costs,
\n
transaction costs and impa
irment
\n
losses
\n
\u2022 Corporate Lending
\n
\u2022 Financ
ial Markets
\n
\u2022 Transaction Banking
\n
\u2022 Retail Lending
\n
\u2022 Treasury Markets
\n
(Loans and
\n
Borrowings)
\n
\u2022 Loans and advances
\n
\u2022 Debt securit
ies
\n
Hold to
\n
collect
\n
and sell
\n
Business object
ive met
\n
through both hold to
\n
collect and by selling
\n
\ufb01nancial assets
\n
\u2022
Portfolios held for liqu
id
ity needs;
\n
or where a certain interest yield
\n
pro\ufb01le is mainta
ined; or that are
\n
normally rebalanced to achieve
\n
matching of duration of assets
\n
and liab
il
it
ies
\n
\u2022
Income streams come from
\n
interest income, fair value
\n
changes, and impa
irment losses
\n
\u2022 Treasury Markets
\u2022 Debt securit
ies
\n
Fair value
\n
through
\n
pro\ufb01t or loss
\n
All other business
\n
objectives,
includ
ing
\n
trading and managing
\n
\ufb01nancial assets on a fa
ir
\n
value basis
\n
\u2022
Assets held for trading
\n
\u2022
Assets that are orig
inated,
\n
purchased, and sold for pro\ufb01t
\n
taking or underwrit
ing act
iv
ity
\n
\u2022
Performance of the portfolio is
\n
evaluated on a fair value basis
\n
\u2022
Income streams are from fair
\n
value changes or trading gains or
\n
losses
\n
\u2022 Financ
ial Markets
\u2022 Trading portfolios
\n
\u2022 Financ
ial Markets
\n
reverse repos
\n
\u2022 Financ
ial Markets
\n
(FM Bond and Loan
\n
Syndicat
ion)
Financ
ial assets wh
ich have SPPI characterist
ics and that are held w
ith
in a bus
iness model whose object
ive
is to hold
\n
\ufb01nancial assets to collect contractual cash\ufb02ows (hold to collect) are recorded at amort
ised cost. Conversely, \ufb01nanc
ial assets
\n
which have SPPI characterist
ics but are held w
ith
in a bus
iness model whose object
ive
is achieved by both collecting
\n
contractual cash\ufb02ows and selling \ufb01nanc
ial assets (Hold to collect and sell) are class
if
ied as held at FVOCI. Both hold to
\n
collect and hold to collect and sell business models involve holding \ufb01nanc
ial assets to collect the contractual cash\ufb02ows.
\n
However, the business models are dist
inct by reference to the frequency and s
ign
i\ufb01cance that asset sales play
in meeting the
\n
objective under wh
ich a particular group of \ufb01nanc
ial assets
is managed. Hold to collect business models are characterised by
\n
asset sales that are inc
idental to meet
ing the object
ives under wh
ich a group of assets is managed. Sales of assets under a
\n
hold to collect business model can be made to manage increases in the credit risk of \ufb01nanc
ial assets but sales for other
\n
reasons should be infrequent or ins
ign
if
icant. Cash\ufb02ows from the sale of \ufb01nancial assets under a hold to collect and sell
\n
business model by contrast are integral to achiev
ing the objectives under wh
ich a particular group of \ufb01nanc
ial assets are
\n
managed. This may be the case where frequent sales of \ufb01nanc
ial assets are requ
ired to manage the Group\u2019s daily liqu
id
ity
\n
requirements or to meet regulatory requirements to demonstrate liqu
id
ity of \ufb01nanc
ial
instruments. Sales of assets under hold
\n
to collect and sell business models are therefore both more frequent and more sign
i\ufb01cant
in value than those under the hold
\n
to collect model.
\n
Equity instruments designated as held at FVOCI
\n
Non-trading equity instruments acquired for strategic purposes rather than capital gain may be irrevocably designated at
\n
in
it
ial recognit
ion as held at FVOCI on an
instrument-by-instrument basis. Div
idends rece
ived are recognised in pro\ufb01t or loss.
\n
Gains and losses aris
ing from changes
in the fair value of these instruments, includ
ing fore
ign exchange gains and losses, are
\n
recognised directly in equity and are never reclassif
ied to pro\ufb01t or loss even on derecogn
it
ion.
\n
Financ
ial assets and l
iab
il
it
ies held at fa
ir value through pro\ufb01t or loss
\n
Financ
ial assets wh
ich are not held at amortised cost or that are not held at FVOCI are held at fair value through pro\ufb01t or
\n
loss. Financ
ial assets and l
iab
il
it
ies held at fa
ir value through pro\ufb01t or loss are either mandatorily classif
ied as fa
ir value
\n
through pro\ufb01t or loss or irrevocably designated at fair value through pro\ufb01t or loss at in
it
ial recognit
ion.
\n
Mandatorily classif
ied at fa
ir value through pro\ufb01t or loss
\n
Financ
ial assets and l
iab
il
it
ies wh
ich are mandatorily held at fair value through pro\ufb01t or loss are split between two
\n
subcategories as follows:
\n
Trading, includ
ing:
\n
\u2022
Financ
ial assets and l
iab
il
it
ies held for trad
ing, which are those acquired princ
ipally for the purpose of sell
ing in the
\n
short-term
\n
\u2022 Derivat
ives
\n
Non-trading mandatorily at fair value through pro\ufb01t or loss, includ
ing:
\n
\u2022
Instruments in a business which has a fair value business model (see the Group\u2019s business model assessment) which are not
\n
trading or derivat
ives
\n
\u2022
Hybrid \ufb01nanc
ial assets that conta
in one or more embedded derivat
ives
\n
\u2022
Financ
ial assets that would otherw
ise be measured at amortised cost or FVOCI but which do not have SPPI characterist
ics
\n
\u2022
Equity instruments that have not been designated as held at FVOCI
\n
\u2022
Financ
ial l
iab
il
it
ies that const
itute contingent considerat
ion
in a business combinat
ion
\n
Designated at fair value through pro\ufb01t or loss
\n
Financ
ial assets and l
iab
il
it
ies may be des
ignated at fair value through pro\ufb01t or loss when the designat
ion el
im
inates or
\n
sign
i\ufb01cantly reduces a measurement or recogn
it
ion
incons
istency that would otherw
ise arise from measuring assets or
\n
liab
il
it
ies on a d
ifferent basis (\u2018accounting mismatch\u2019).
\n
Financ
ial l
iab
il
it
ies may also be des
ignated at fair value through pro\ufb01t or loss where they are managed on a fair value basis
\n
or have an embedded derivat
ive where the Group
is not able to bifurcate and separately value the embedded derivat
ive
\n
component.
\n
Financ
ial l
iab
il
it
ies held at amort
ised cost
\n
Financ
ial l
iab
il
it
ies that are not \ufb01nancial guarantees or loan comm
itments and that are not classif
ied as \ufb01nancial l
iab
il
it
ies
\n
held at fair value through pro\ufb01t or loss are classif
ied as \ufb01nancial l
iab
il
it
ies held at amort
ised cost.
\n
Preference shares which carry a mandatory coupon that represents a market rate of interest at the issue date, or which are
\n
redeemable on a specif
ic date or at the opt
ion of the shareholder are classif
ied as \ufb01nancial l
iab
il
it
ies and are presented
in
\n
other borrowed funds. The div
idends on these preference shares are recogn
ised in the income statement as interest expense
\n
on an amortised cost basis using the effective interest method.
Financ
ial guarantee contracts and loan comm
itments
\n
The Group issues \ufb01nanc
ial guarantee contracts and loan comm
itments in return for fees. Financ
ial guarantee contracts and
\n
any loan commitments issued at below-market interest rates are in
it
ially recognised at their fair value as a \ufb01nanc
ial l
iab
il
ity,
\n
and subsequently measured at the higher of the in
it
ial value less the cumulative amount of income recognised in accordance
\n
with the princ
iples of IFRS 15 Revenue from Contracts w
ith Customers and their expected credit loss provis
ion. Loan
\n
commitments may be designated at fair value through pro\ufb01t or loss where that is the business model under which such
\n
contracts are held.
\n
Fair value of \ufb01nanc
ial assets and l
iab
il
it
ies
\n
Fair value is the price that would be received to sell an asset or paid to transfer a liab
il
ity in an orderly transaction between
\n
market partic
ipants at the measurement date
in the princ
ipal market for the asset or l
iab
il
ity, or in the absence of a princ
ipal
\n
market, the most advantageous market to which the Group has access at the date. The fair value of a liab
il
ity includes the
\n
risk that the bank will not be able to honour its obligat
ions.
\n
The fair value of \ufb01nanc
ial
instruments is generally measured on the basis of the ind
iv
idual \ufb01nanc
ial
instrument. However,
\n
when a group of \ufb01nancial assets and \ufb01nancial l
iab
il
it
ies
is managed on the basis of its net exposure to either market risk or
\n
credit risk, the fair value of the group of \ufb01nanc
ial
instruments is measured on a net basis.
\n
The fair values of quoted \ufb01nanc
ial assets and l
iab
il
it
ies
in active markets are based on current prices. A market is regarded as
\n
active if transactions for the asset or liab
il
ity take place with suf\ufb01c
ient frequency and volume to prov
ide pric
ing
informat
ion
\n
on an ongoing basis. If the market for a \ufb01nanc
ial
instrument, and for unlisted securit
ies,
is not active, the Group establishes
\n
fair value by using valuation techniques.
\n
Init
ial recogn
it
ion
\n
Regular way purchases and sales of \ufb01nancial assets held at fa
ir value through pro\ufb01t or loss, and held at fair value through
\n
other comprehensive income are in
it
ially recognised on the trade date (the date on which the Group commits to purchase or
\n
sell the asset). Loans and advances and other \ufb01nancial assets held at amort
ised cost are recognised on the settlement date
\n
(the date on which cash is advanced to the borrowers).
\n
All \ufb01nancial
instruments are in
it
ially recognised at fair value, which is normally the transaction price, plus directly attributable
\n
transaction costs for \ufb01nanc
ial assets and l
iab
il
it
ies wh
ich are not subsequently measured at fair value through pro\ufb01t or loss.
\n
In certain circumstances, the in
it
ial fair value may be based on a valuation technique which may lead to the recognit
ion of
\n
pro\ufb01ts or losses at the time of in
it
ial recognit
ion. However, these pro\ufb01ts or losses can only be recogn
ised when the valuation
\n
technique used is based solely on observable market data. In those cases where the in
it
ially recognised fair value is based on
\n
a valuation model that uses unobservable inputs, the difference between the transaction price and the valuation model is
\n
not recognised immed
iately
in the income statement but is amortised or released to the income statement following the
\n
passage of time, or as the inputs become observable, or the transaction matures or is terminated.
\n
Subsequent measurement
\n
Financ
ial assets and \ufb01nancial l
iab
il
it
ies held at amort
ised cost
\n
Financ
ial assets and \ufb01nancial l
iab
il
it
ies held at amort
ised cost are subsequently carried at amortised cost using the effective
\n
interest method (see Interest income and expense). Foreign exchange gains and losses are recognised in the income
\n
statement.
\n
Where a \ufb01nancial
instrument carried at amortised cost is the hedged item in a qualify
ing fa
ir value hedge relationsh
ip,
its
\n
carrying value is adjusted by the fair value gain or loss attributable to the hedged risk.
\n
Financ
ial assets held at FVOCI
\n
Debt instruments held at FVOCI are subsequently carried at fair value, with all unrealised gains and losses aris
ing from
\n
changes in fair value (includ
ing any related fore
ign exchange gains or losses) recognised in other comprehensive income and
\n
accumulated in a separate component of equity. Foreign exchange gains and losses on the amortised cost are recognised in
\n
income. Changes in expected credit losses are recognised in the pro\ufb01t or loss and are accumulated in equity. On
\n
derecognit
ion, the cumulat
ive fair value gains or losses, net of the cumulative expected credit loss reserve, are transferred to
\n
the pro\ufb01t or loss.
\n
Equity investments designated at FVOCI are subsequently carried at fair value with all unrealised gains and losses aris
ing
\n
from changes in fair value (includ
ing any related fore
ign exchange gains or losses) recognised in other comprehensive
\n
income and accumulated in a separate component of equity. On derecognit
ion, the cumulat
ive reserve is transferred to
\n
retained earnings and is not recycled to pro\ufb01t or loss.
\n
Financ
ial assets and l
iab
il
it
ies held at fa
ir value through pro\ufb01t or loss
\n
Financ
ial assets and l
iab
il
it
ies mandator
ily held at fair value through pro\ufb01t or loss and \ufb01nanc
ial assets des
ignated at fair
\n
value through pro\ufb01t or loss are subsequently carried at fair value, with gains and losses aris
ing from changes
in fair value,
\n
includ
ing contractual
interest income or expense, recorded in the net trading income line in the pro\ufb01t or loss unless the
\n
instrument is part of a cash \ufb02ow hedging relationsh
ip.
Financ
ial l
iab
il
it
ies des
ignated at fair value through pro\ufb01t or loss
\n
Financ
ial l
iab
il
it
ies des
ignated at fair value through pro\ufb01t or loss are held at fair value, with changes in fair value recognised
\n
in the net trading income line in the pro\ufb01t or loss, other than that attributable to changes in credit risk. Fair value changes
\n
attributable to credit risk are recognised in other comprehensive income and recorded in a separate category of reserves
\n
unless this is expected to create or enlarge an accounting mismatch, in which case the entire change in fair value of the
\n
\ufb01nancial l
iab
il
ity designated at fair value through pro\ufb01t or loss is recognised in pro\ufb01t or loss.
\n
Derecognit
ion of \ufb01nancial
instruments
\n
Financ
ial assets are derecogn
ised when the rights to receive cash \ufb02ows from the \ufb01nanc
ial assets have exp
ired or where the
\n
Group has transferred substantially all risks and rewards of ownership. If substantially all the risks and rewards have been
\n
neither retained nor transferred and the Group has retained control, the assets continue to be recognised to the extent of the
\n
Group\u2019s continu
ing
involvement.
\n
Where \ufb01nancial assets have been mod
if
ied, the mod
if
ied terms are assessed on a qual
itat
ive and quant
itat
ive bas
is to
\n
determine whether a fundamental change in the nature of the instrument has occurred, such as whether the derecognit
ion
\n
of the pre-exist
ing
instrument and the recognit
ion of a new
instrument is appropriate.
\n
On derecognit
ion of a \ufb01nancial asset, the d
ifference between the carrying amount of the asset (or the carrying amount
\n
allocated to the portion of the asset derecognised) and the sum of the considerat
ion rece
ived (includ
ing any new asset
\n
obtained less any new liab
il
ity assumed) and any cumulative gain or loss that had been recognised in other comprehensive
\n
income is recognised in pro\ufb01t or loss except for equity instruments elected FVOCI (see above) and cumulative fair value
\n
adjustments attributable to the credit risk of a liab
il
ity that are held in other comprehensive income.
\n
Financ
ial l
iab
il
it
ies are derecogn
ised when they are extingu
ished. A \ufb01nancial l
iab
il
ity is extingu
ished when the obl
igat
ion
is
\n
discharged, cancelled or expires and this is evaluated both qualitat
ively and quant
itat
ively. However, where a \ufb01nancial
\n
liab
il
ity has been modif
ied,
it is derecognised if the difference between the modif
ied cash \ufb02ows and the or
ig
inal cash \ufb02ows
is
\n
more than 10 per cent, or if less than 10 per cent, the Group will perform a qualitat
ive assessment to determ
ine whether the
\n
terms of the two instruments are substantially different.
\n
If the Group purchases its own debt, it is derecognised and the difference between the carrying amount of the liab
il
ity and
\n
the considerat
ion pa
id is included in \u2018Other income\u2019 except for the cumulative fair value adjustments attributable to the
\n
credit risk of a liab
il
ity that are held in other comprehensive income which are never recycled to the pro\ufb01t or loss.
\n
Modif
ied \ufb01nancial
instruments
\n
Financ
ial assets and \ufb01nancial l
iab
il
it
ies whose or
ig
inal contractual terms have been mod
if
ied,
includ
ing those loans subject
\n
to forbearance strategies, are considered to be modif
ied
instruments. Modif
icat
ions may include changes to the tenor, cash
\n
\ufb02ows and or interest rates among other factors.
\n
Where derecognit
ion of \ufb01nancial assets
is appropriate (see Derecognit
ion), the newly recogn
ised residual loans are assessed
\n
to determine whether the assets should be classif
ied as purchased or or
ig
inated Cred
it-Impaired assets (POCI).
\n
Where derecognit
ion
is not appropriate, the gross carrying amount of the applicable instruments is recalculated as the
\n
present value of the renegotiated or modif
ied contractual cash \ufb02ows d
iscounted at the orig
inal effect
ive interest rate (or
\n
credit adjusted effective interest rate for POCI \ufb01nanc
ial assets). The d
ifference between the recalculated values and the
\n
pre-modif
ied gross carry
ing values of the instruments are recorded as a modif
icat
ion gain or loss in the pro\ufb01t or loss.
\n
Gains and losses aris
ing from mod
if
icat
ions for credit reasons are recorded as part of \u2018Credit Impairment\u2019 (see Credit
\n
Impairment policy). Modif
icat
ion gains and losses aris
ing from non-cred
it reasons are recognised either as part of \u201cCredit
\n
Impairment\u201d or with
in
income depending on whether there has been a change in the credit risk on the \ufb01nanc
ial asset
\n
subsequent to the modif
icat
ion. Modif
icat
ion gains and losses aris
ing on \ufb01nancial l
iab
il
it
ies are recogn
ised with
in
income.
\n
The movements in the applicable expected credit loss loan posit
ions are d
isclosed in further detail in Risk Review.
\n
Under the Phase 2 Interest Rate Benchmark Reform amendments to IFRS 9, changes to the basis for determin
ing contractual
\n
cash \ufb02ows as a direct result of interest rate benchmark reform are treated as changes to a \ufb02oating interest rate to that
\n
instrument, provided that the transit
ion from the IBOR benchmark rate to the alternat
ive RFR takes place on an economically
\n
equivalent basis. Where the instrument is measured at amortised cost or FVOCI, this results in a change in the instrument\u2019s
\n
effective interest rate, with no change in the amortised cost value of the instrument. If the change to the instrument does not
\n
meet these criter
ia, the Group appl
ies judgement to assess whether the changes are substantial and if they are, the \ufb01nanc
ial
\n
instrument is derecognised and a new \ufb01nanc
ial
instrument is recognised. If the changes are not substantial, the Group
\n
adjusts the gross carrying amount of the \ufb01nanc
ial
instrument by the present value of the changes not covered by the
\n
practical expedient, discounted using the revised effective interest rate.
Reclassif
icat
ions
\n
Financ
ial l
iab
il
it
ies are not reclass
if
ied subsequent to
in
it
ial recognit
ion. Reclass
if
icat
ions of \ufb01nanc
ial assets are made when,
\n
and only when, the business model for those assets changes. Such changes are expected to be infrequent and arise as a
\n
result of sign
i\ufb01cant external or
internal changes such as the terminat
ion of a l
ine of business or the purchase of a subsid
iary
\n
whose business model is to realise the value of pre-exist
ing held for trad
ing \ufb01nanc
ial assets through a hold to collect model.
\n
Financ
ial assets are reclass
if
ied at the
ir fair value on the date of reclassif
icat
ion and previously recognised gains and losses
\n
are not restated. Moreover, reclassif
icat
ions of \ufb01nanc
ial assets between \ufb01nancial assets held at amort
ised cost and \ufb01nanc
ial
\n
assets held at fair value through other comprehensive income do not affect effective interest rate or expected credit loss
\n
computations.
\n
Reclassif
ied from amort
ised cost
\n
Where \ufb01nancial assets held at amort
ised cost are reclassif
ied to \ufb01nancial assets held at fa
ir value through pro\ufb01t or loss, the
\n
difference between the fair value of the assets at the date of reclassif
icat
ion and the previously recognised amortised cost is
\n
recognised in pro\ufb01t or loss.
\n
For \ufb01nancial assets held at amort
ised cost that are reclassif
ied to fa
ir value through other comprehensive income, the
\n
difference between the fair value of the assets at the date of reclassif
icat
ion and the previously recognised gross carrying
\n
value is recognised in other comprehensive income. Addit
ionally, the related cumulat
ive expected credit loss amounts
\n
relating to the reclassif
ied \ufb01nancial assets are reclass
if
ied from loan loss prov
is
ions to a separate reserve
in other
\n
comprehensive income at the date of reclassif
icat
ion.
\n
Reclassif
ied from fa
ir value through other comprehensive income
\n
Where \ufb01nancial assets held at fa
ir value through other comprehensive income are reclassif
ied to \ufb01nancial assets held at fa
ir
\n
value through pro\ufb01t or loss, the cumulative gain or loss previously recognised in other comprehensive income is transferred to
\n
the pro\ufb01t or loss.
\n
For \ufb01nancial assets held at fa
ir value through other comprehensive income that are reclassif
ied to \ufb01nancial assets held at
\n
amortised cost, the cumulative gain or loss previously recognised in other comprehensive income is adjusted against the fair
\n
value of the \ufb01nancial asset such that the \ufb01nancial asset
is recorded at a value as if it had always been held at amortised cost.
\n
In addit
ion, the related cumulat
ive expected credit losses held with
in other comprehens
ive income are reversed against the
\n
gross carrying value of the reclassif
ied assets at the date of reclass
if
icat
ion.
\n
Reclassif
ied from fa
ir value through pro\ufb01t or loss
\n
Where \ufb01nancial assets held at fa
ir value through pro\ufb01t or loss are reclassif
ied to \ufb01nancial assets held at fa
ir value through
\n
other comprehensive income or \ufb01nanc
ial assets held at amort
ised cost, the fair value at the date of reclassif
icat
ion is used to
\n
determine the effective interest rate on the \ufb01nanc
ial asset go
ing forward. In addit
ion, the date of reclass
if
icat
ion is used as
\n
the date of in
it
ial recognit
ion for the calculat
ion of expected credit losses. Where \ufb01nanc
ial assets held at fa
ir value through
\n
pro\ufb01t or loss are reclassif
ied to \ufb01nancial assets held at amort
ised cost, the fair value at the date of reclassif
icat
ion becomes
\n
the gross carrying value of the \ufb01nanc
ial asset.
Sign
i\ufb01cant account
ing estimates and judgements
\n
The Group evaluates the sign
i\ufb01cance of \ufb01nancial
instruments and material accuracy of the valuations incorporated in the
\n
\ufb01nancial statements as they
involve a high degree of judgement and estimat
ion uncerta
inty in determin
ing the carry
ing
\n
values of \ufb01nancial assets and l
iab
il
it
ies at the balance sheet date.
\n
\u2022
Fair value of \ufb01nanc
ial
instruments is determined using valuation techniques and estimates (see below) which, to the extent
\n
possible, use market observable inputs, but in some cases use non-market observable inputs. Changes in the observabil
ity
\n
of sign
i\ufb01cant valuat
ion inputs can materially affect the fair values of \ufb01nanc
ial
instruments
\n
\u2022
When establish
ing the ex
it price of a \ufb01nanc
ial
instrument using a valuation technique, the Group estimates valuation
\n
adjustments in determin
ing the fa
ir value (page 383])
\n
\u2022
In determin
ing the valuat
ion of \ufb01nanc
ial
instruments, the Group makes judgements on the amounts reserved to cater for
\n
model and valuation risks, which cover both Level 2 and Level 3 assets, and the sign
i\ufb01cant valuat
ion judgements in respect
\n
of Level 3 instruments (page 390)
\n
\u2022
Where the estimated measurement of fair value is more judgemental in respect of Level 3 assets, these are valued based
\n
on models that use a sign
i\ufb01cant degree of non-market-based unobservable
inputs
Accounting policy
\n
Derivat
ives are \ufb01nancial
instruments that derive their value in response to changes in interest rates, \ufb01nanc
ial
instrument
\n
prices, commodity prices, foreign exchange rates, credit rating or credit index and ind
ices. Der
ivat
ives are categor
ised as
\n
trading unless they are designated as hedging instruments.
\n
Derivat
ives are
in
it
ially recognised and subsequently measured at fair value, with revaluation gains recognised in pro\ufb01t or
\n
loss (except where cash \ufb02ow or net investment hedging has been achieved, in which case the effective portion of changes in
\n
fair value is recognised with
in other comprehens
ive income).
\n
Fair values may be obtained from quoted market prices in active markets, recent market transactions, and valuation
\n
techniques, includ
ing d
iscounted cash \ufb02ow models and option pric
ing models, as appropr
iate. Where the in
it
ially recognised
\n
fair value of a derivat
ive contract
is based on a valuation model that uses inputs which are not observable in the market, it
\n
follows the same in
it
ial recognit
ion account
ing policy as for other \ufb01nanc
ial assets and l
iab
il
it
ies. All der
ivat
ives are carr
ied as
\n
assets when fair value is posit
ive and as l
iab
il
it
ies when fa
ir value is negative.
\n
Hedge accounting
\n
Under certain condit
ions, the Group may des
ignate a recognised asset or liab
il
ity, a \ufb01rm commitment, highly probable
\n
forecast transaction or net investment of a foreign operation into a formal hedge accounting relationsh
ip w
ith a derivat
ive
\n
that has been entered to manage interest rate and/or foreign exchange risks present in the hedged item. The Group applies
\n
the \u2018Phase 1\u2019 hedge accounting requirements of IAS 39 Financ
ial Instruments: Recogn
it
ion and Measurement and the \u2018Phase
\n
2\u2019 amendments to IFRS in respect of interest rate benchmark reform. There are three categories of hedge relationsh
ips:
\n
\u2022
Fair value hedge: to manage the fair value of interest rate and/or foreign currency risks of recognised assets or liab
il
it
ies or
\n
\ufb01rm commitments
\n
\u2022
Cash \ufb02ow hedge: to manage interest rate or foreign exchange risk of highly probable future cash \ufb02ows attributable to a
\n
recognised asset or liab
il
ity, or a forecasted transaction
\n
\u2022
Net investment hedge: to manage the structural foreign exchange risk of an investment in a foreign operation
\n
The Group formally documents at the incept
ion of the transact
ion the relationsh
ip between hedg
ing instruments and
\n
hedged items, as well as its risk management object
ive and strategy for undertak
ing hedge transactions. This is described in
\n
more detail in the categories of hedges below.
\n
The Group assesses, both at hedge incept
ion and on a quarterly bas
is, whether the derivat
ives des
ignated in hedge
\n
relationsh
ips are h
ighly effective in offsetting changes in fair values or cash \ufb02ows of hedged items. Hedges are considered to
\n
be highly effective if all the following criter
ia are met:
\n
\u2022
At incept
ion of the hedge and throughout
its life, the hedge is prospectively expected to be highly effective in achiev
ing
\n
offsetting changes in fair value or cash \ufb02ows attributable to the hedged risk
\n
\u2022
Prospective and retrospective effectiveness should be with a range of 80-125%. This is tested using regression analysis
\n
\u2022
The regression co-ef\ufb01c
ient (R squared), wh
ich measures the correlation between the variables in the regression, is at least
\n
80%
\n
\u2022
In the case of the hedge of a forecast transaction, the transaction must have a high probabil
ity of occurr
ing and must
\n
present an exposure to variat
ions
in cash \ufb02ows that are expected to affect reported pro\ufb01t or loss. The Group assumes that
\n
any interest rate benchmarks on which hedged item cash \ufb02ows are based are not altered by IBOR reform
\n
The Group discont
inues hedge account
ing in any of the following circumstances:
\n
\u2022
The hedging instrument is not, or has ceased to be, highly effective as a hedge
\n
\u2022
The hedging instrument has expired, is sold, terminated, or exercised
\n
\u2022
The hedged item matures, is sold, or repaid
\n
\u2022
The forecast transaction is no longer deemed highly probable
\n
\u2022
The Group elects to discont
inue hedge account
ing voluntarily
\n
For interest rate benchmarks deemed in scope of IBOR reform, if the actual result of a hedge is outside the 80-125% range,
\n
but the hedge passes the prospective assessment, then the Group will not de-designate the hedge relationsh
ip.
\n
Under the Phase 2 Interest Rate Benchmark Reform amendments to IFRS 9 and IAS 39, the Group may change hedge
\n
designat
ions and correspond
ing documentation without the hedge being discont
inued where there
is a change in interest
\n
rate benchmark of the hedged item, hedging instrument or designated hedged risk. Permitted changes include the right to:
\n
\u2022
Rede\ufb01ne the descript
ion of the hedged
item and/or hedging instrument
\n
\u2022
Rede\ufb01ne the hedged risk to reference an alternative risk-free rate
\n
\u2022
Change the method for assessing hedge effectiveness due to modif
icat
ions required by IBOR reform
\n
\u2022
Elect, on a hedge-by-hedge basis, to reset the cumulative fair value changes in the assessment of retrospective hedge
\n
effectiveness to zero
\n
A hedge designat
ion may be mod
if
ied more than once, each t
ime a relationsh
ip
is affected as a direct result of IBOR reform.
Fair value hedge
\n
Changes in the fair value of derivat
ives that are des
ignated and qualify as fair value hedging instruments are recorded in net
\n
trading income, together with any changes in the fair value of the hedged asset or liab
il
ity that are attributable to the
\n
hedged risk. If the hedge no longer meets the criter
ia for hedge account
ing, the adjustment to the carrying amount of a
\n
hedged item for which the effective interest method is used is amortised to the income statement over the remain
ing term to
\n
maturity of the hedged item. If the hedged item is sold or repaid, the unamortised fair value adjustment is recognised
\n
immed
iately
in the income statement. For \ufb01nanc
ial assets class
if
ied as fa
ir value through other comprehensive income, the
\n
hedge accounting adjustment attributable to the hedged risk is included in net trading income to match the hedging
\n
derivat
ive.
\n
Cash \ufb02ow hedge
\n
The effective portion of changes in the fair value of derivat
ives that are des
ignated and qualify as cash \ufb02ow hedging
\n
instruments are in
it
ially recognised in other comprehensive income, accumulating in the cash \ufb02ow hedge reserve with
in
\n
equity. These amounts are subsequently recycled to the income statement in the periods when the hedged item affects
\n
pro\ufb01t or loss. Both the derivat
ive fa
ir value movement and any recycled amount are recorded in the \u2018Cash\ufb02ow hedges\u2019 line
\n
item in other comprehensive income.
\n
The Group assesses hedge effectiveness using the hypothetical derivat
ive method, wh
ich creates a derivat
ive
instrument to
\n
serve as a proxy for the hedged transaction. The terms of the hypothetical derivat
ive match the cr
it
ical terms of the hedged
\n
item and it has a fair value of zero at incept
ion. The hypothet
ical derivat
ive and the actual der
ivat
ive are regressed to
\n
establish the statist
ical s
ign
i\ufb01cance of the hedge relat
ionsh
ip. Any
ineffect
ive port
ion of the gain or loss on the hedging
\n
instrument is recognised in the net trading income immed
iately.
\n
If a cash \ufb02ow hedge is discont
inued, the amount accumulated
in the cash \ufb02ow hedge reserve is released to the income
\n
statement as and when the hedged item affects the income statement.
\n
For interest rate benchmarks deemed in scope of IBOR reform, the Group will retain the cumulative gain or loss in the cash
\n
\ufb02ow hedge reserve for designated cash \ufb02ow hedges even though there is uncertainty aris
ing from these reforms w
ith respect
\n
to the tim
ing and amount of the cash \ufb02ows of the hedged
items. Should the Group consider the hedged future cash \ufb02ows are
\n
no longer expected to occur due to reasons other than IBOR reform, the cumulative gain or loss will be immed
iately
\n
reclassif
ied to pro\ufb01t or loss.
\n
Net investment hedge
\n
Hedges of net investments are accounted for in a sim
ilar manner to cash \ufb02ow hedges, w
ith gains and losses aris
ing on the
\n
effective portion of the hedges recorded in the line \u2018Exchange differences on translation of foreign operations\u2019 in other
\n
comprehensive income, accumulating in the translation reserve with
in equ
ity. These amounts remain in equity until the net
\n
investment is disposed of. The ineffect
ive port
ion of the hedges is recognised in the net trading income immed
iately.
Accounting policy
\n
Refer to Note 13 Financ
ial
instruments for the relevant accounting policy.
Accounting policy
\n
The Group purchases securit
ies (a reverse repurchase agreement \u2013 \u2018reverse repo\u2019) typ
ically with \ufb01nanc
ial
inst
itut
ions subject
\n
to a commitment to resell or return the securit
ies at a predeterm
ined price. These securit
ies are not
included in the balance
\n
sheet as the Group does not acquire the risks and rewards of ownership, however they are recorded off-balance sheet as
\n
collateral received. Considerat
ion pa
id (or cash collateral provided) is accounted for as a loan asset at amortised cost unless
\n
it is managed on a fair value basis or designated at fair value through pro\ufb01t or loss. In major
ity of cases through the
\n
contractual terms of a reverse repo arrangement, the Group as the transferee of the security collateral has the right to sell or
\n
repledge the asset concerned.
\n
The Group also sells securit
ies (a repurchase agreement \u2013 \u2018repo\u2019) subject to a comm
itment to repurchase or redeem the
\n
securit
ies at a predeterm
ined price. The securit
ies are reta
ined on the balance sheet as the Group retains substantially all the
\n
risks and rewards of ownership and these securit
ies are d
isclosed as pledged collateral. Considerat
ion rece
ived (or cash
\n
collateral received) is accounted for as a \ufb01nanc
ial l
iab
il
ity at amortised cost unless it is either mandatorily classif
ied as fa
ir
\n
value through pro\ufb01t or loss or irrevocably designated at fair value through pro\ufb01t or loss at in
it
ial recognit
ion.
\n
Financ
ial assets are pledged as collateral as part of sales and repurchases, secur
it
ies borrow
ing and securit
isat
ion
\n
transactions under terms that are usual and customary for such activ
it
ies. The Group is obliged to return equivalent
\n
securit
ies.
\n
Repo and reverse repo transactions typically entitle the Group and its counterparties to have recourse to assets sim
ilar to
\n
those provided as collateral in the event of a default. Securit
ies sold subject to repos, e
ither by way of a Global Master
\n
Repurchase Agreement (GMRA), or through a securit
ies sale and Total Return Swap (TRS) cont
inue to be recognised on the
\n
balance sheet as the Group retains substantially the associated risks and rewards of the securit
ies (the TRS
is not
\n
recognised). The counterparty liab
il
ity is included in deposits by banks or customer accounts, as appropriate. Assets sold
\n
under repurchase agreements are considered encumbered as the Group cannot pledge these to obtain funding.
Accounting policy
\n
Goodwill
\n
Goodwill represents the excess of the cost of an acquis
it
ion over the fair value of the Group\u2019s share of the ident
i\ufb01able net
\n
assets and contingent liab
il
it
ies of the acqu
ired subsid
iary, assoc
iate or jo
int venture at the date of acqu
is
it
ion. Goodwill on
\n
acquis
it
ions of subsid
iar
ies is included in intang
ible assets. Goodw
ill on acquis
it
ions of associates is included in Investments in
\n
associates and jo
int ventures. Goodw
ill included in intang
ible assets
is assessed at each balance sheet date for impa
irment
\n
and carried at cost less any accumulated impa
irment losses. Ga
ins and losses on the disposal of an entity include the
\n
carrying amount of goodwill relating to the entity sold. Detailed calculations are performed based on forecasting expected
\n
cash \ufb02ows of the relevant cash generating units (CGUs) and discount
ing these at an appropr
iate discount rate, the
\n
determinat
ion of wh
ich requires the exercise of judgement. Goodwill is allocated to CGUs for the purpose of impa
irment
\n
testing. CGUs represent the lowest level with
in the Group wh
ich generate separate cash in\ufb02ows and at which the goodwill is
\n
monitored for internal management purposes. These are equal to or smaller than the Group\u2019s reportable segments (as set
\n
out in Note 2) as the Group views its reportable segments on a global basis. The major CGUs to which goodwill has been
\n
allocated are set out in the CGU table (page 410).
\n
Other accounting estimates and judgements
\n
The carrying amount of goodwill is based on the applicat
ion of judgements
includ
ing the bas
is of goodwill impa
irment
\n
calculation assumptions. Judgement is also applied in determinat
ion of CGUs.
\n
Estimates include forecasts used for determin
ing cash \ufb02ows for CGUs, the appropr
iate long-term growth rates to use and
\n
discount rates which factor in country risk-free rates and applicable risk premiums. The Group undertakes an annual
\n
assessment to evaluate whether the carrying value of goodwill is impa
ired. The est
imat
ion of future cash \ufb02ows and the level
\n
to which they are discounted is inherently uncertain and requires sign
i\ufb01cant judgement and
is subject to potential change
\n
over time.
\n
Acquired intang
ibles
\n
At the date of acquis
it
ion of a subsid
iary or assoc
iate, intang
ible assets wh
ich are deemed separable and that arise from
\n
contractual or other legal rights are capital
ised and
included with
in the net
ident
i\ufb01able assets acqu
ired. These intang
ible
\n
assets are in
it
ially measured at fair value, which re\ufb02ects market expectations of the probabil
ity that the future econom
ic
\n
bene\ufb01ts embodied in the asset will \ufb02ow to the entity and are amortised on the basis of their expected useful lives (4 to 16
\n
years). At each balance sheet date, these assets are assessed for ind
icators of
impa
irment. In the event that an asset\u2019s
\n
carrying amount is determined to be greater than its recoverable amount, the asset is written down immed
iately to the
\n
recoverable amount.
\n
Computer software
\n
Acquired computer software licences are capital
ised
if the princ
iples of development are met on the bas
is of the costs
\n
incurred to acquire and bring to use the specif
ic software.
\n
Internally generated software represents substantially all of the total software capital
ised. D
irect costs of the development
\n
of separately ident
i\ufb01able
internally generated software are capital
ised where
it is probable that future economic bene\ufb01ts
\n
attributable to the software will \ufb02ow from its use. These costs include staff remuneration costs such as salaries, statutory
\n
payments and share-based payments, materials, service providers and contractors provided their time is directly
\n
attributable to the software build. Costs incurred in the ongoing maintenance of software are expensed immed
iately when
\n
incurred. Internally generated software is amortised over each asset\u2019s useful life to a maximum of 10-years. On an annual
\n
basis software assets\u2019 residual values and useful lives are reviewed, includ
ing assess
ing for ind
icators of
impa
irment.
\n
Indicators of impa
irment
include loss of business relevance, obsolescence, exit of the business to which the software relates,
\n
technological changes, change in use of the asset, reduction in useful life, plans to reduce usage or scope.
\n
For capital
ised software, judgement
is required to determine which costs relate to research (expensed) and which costs
\n
relate to development (capital
ised). Further judgement
is required to determine the technical feasib
il
ity of completing the
\n
software such that it will be available for use. Estimates are used to determine how the software will generate probable
\n
future economic bene\ufb01ts: these estimates include cost savings, income increases, balance sheet improvements, improved
\n
functional
ity or
improved asset safeguarding.
\n
Software as a Service (SaaS) is a contractual arrangement that conveys the right to receive access to the supplier\u2019s software
\n
applicat
ion over the contract term. As such, the Group does not have control and as a result recogn
ises an operating
\n
expense for these costs over the contract term. Certain costs related to implementat
ion of the SaaS may meet the de\ufb01nit
ion
\n
of an intang
ible asset
in their own right if it is separately ident
i\ufb01able and control
is established. These costs are capital
ised
if
\n
it is expected to provide the Group with future economic bene\ufb01ts \ufb02owing from the underlying resource and the Group can
\n
restrict others from accessing those bene\ufb01ts.
Accounting policy
\n
All property, plant and equipment is stated at cost less accumulated depreciat
ion and
impa
irment losses. Cost
includes
\n
expenditure that is directly attributable to the acquis
it
ion of the assets. Subsequent costs are included in the asset\u2019s carrying
\n
amount or are recognised as a separate asset, as appropriate, only when it is probable that future economic bene\ufb01ts
\n
associated with the item will \ufb02ow to the Group and the cost of the item can be measured reliably.
\n
At each balance sheet date the assets\u2019 residual values and useful lives are reviewed, and adjusted if appropriate, includ
ing
\n
assessing for ind
icators of
impa
irment. In the event that an asset\u2019s carry
ing amount is determined to be greater than its
\n
recoverable amount, the asset is written down to the recoverable amount. Gains and losses on disposals are included in the
\n
income statement.
\n
Repairs and maintenance are charged to the income statement during the \ufb01nanc
ial per
iod in which they are incurred.
\n
Land and build
ings compr
ise mainly branches and of\ufb01ces. Freehold land is not depreciated although it is subject to
\n
impa
irment test
ing.
\n
Depreciat
ion on other assets
is calculated using the straight-line method to allocate their cost to their residual values over
\n
their estimated useful lives, as follows:
\n
\u2022 Owned premises
\u2022
up to 50 years
\n
\u2022 Leasehold premises
\u2022
up to 50 years
\n
\u2022 Leasehold improvements
\u2022
shorter of remain
ing lease term and 10 years
\n
\u2022
Equipment and motor vehicles
\u2022
three to 15 years
\n
\u2022 Aircraft
\u2022
up to 18 years
\n
\u2022 Ships
\u2022
up to 15 years
\n
Where the Group is a lessee of a right-of-use asset, the leased assets are capital
ised and
included in Property, plant and
\n
equipment with a corresponding liab
il
ity to the lessor recognised in Other liab
il
it
ies,
in accordance with the Group\u2019s leased
\n
assets accounting policy in Note 19.
\n
All other repairs and maintenance are charged to the income statement during the \ufb01nanc
ial per
iod in which they are
\n
incurred.
\n
Other accounting estimates and judgements
\n
The carrying amount of the Group\u2019s aircraft leasing portfolio is based on the applicat
ion of judgement and est
imates to
\n
determine the most appropriate recoverable amount for each aircraft when assessing for impa
irment. Est
imates involve the
\n
appropriate cash \ufb02ows, discount rates and residual values used in determin
ing a value-
in-use for aircraft, and judgement is
\n
required in determin
ing the appropr
iate observable third-party valuations to use for assessing current market value.
Accounting policy
\n
The Group assesses whether a contract is a lease in scope of this policy by determin
ing whether the contract g
ives it the right
\n
to use a specif
ied underly
ing physical asset for a lease term greater than 12 months, unless the underlying asset is of low
\n
value.
\n
Where the Group is a lessee and the lease is deemed in scope, it recognises a liab
il
ity equal to the present value of lease
\n
payments over the lease term, discounted using the incremental borrowing rate applicable in the economic environment of
\n
the lease. The liab
il
ity is recognised in \u2018Other liab
il
it
ies\u2019. A correspond
ing right-of-use asset equal to the liab
il
ity, adjusted for
\n
any lease payments made at or before the commencement date, is recognised in \u2018Property, plant and equipment\u2019. The lease
\n
term includes any extension options contained in the contract that the Group is reasonably certain it will exercise.
\n
The Group subsequently depreciates the right-of-use asset using the straight-line method over the lease term and measures
\n
the lease liab
il
ity using the effective interest method. Depreciat
ion on the asset
is recognised in \u2018Depreciat
ion and
\n
amortisat
ion\u2019, and
interest on the lease liab
il
ity is recognised in \u2018Interest expense\u2019.
\n
If a leased premise, or a physically dist
inct port
ion of a premise such as an ind
iv
idual \ufb02oor, is deemed by management to be
\n
surplus to the Group\u2019s needs and action has been taken to abandon the space before the lease expires, this is considered an
\n
ind
icator of
impa
irment. An
impa
irment loss
is recognised if the right-of-use asset, or portion thereof, has a carrying value in
\n
excess of its value-in-use when taking into account factors such as the abil
ity and l
ikel
ihood of obta
in
ing a subtenant.
\n
The judgements in determin
ing lease balances are the determ
inat
ion of whether the Group
is reasonably certain that it will
\n
exercise extension options present in lease contracts. On in
it
ial recognit
ion, the Group cons
iders a range of characterist
ics
\n
such as premises function, regional trends and the term remain
ing on the lease to determ
ine whether it is reasonably certain
\n
that a contractual right to extend a lease will be exercised. Where a change in assumption is con\ufb01rmed by the local property
\n
management team, a remeasurement is performed in the Group-managed vendor system.
\n
The estimates are the determinat
ion of
incremental borrowing rates in the respective economic environments. The Group
\n
uses third-party broker quotes to estimate its USD cost of senior unsecured borrowing, then uses cross currency swap pric
ing
\n
informat
ion to determ
ine the equivalent cost of borrowing in other currencies. If it is not possible to estimate an incremental
\n
borrowing rate through this process, other proxies such as local government bond yields are used.
Accounting policy
\n
Refer to Note 13 Financ
ial
instruments for the relevant accounting policy.
\n
Commodit
ies represent phys
ical holdings where the Group has title and exposure to the Market Risk associated with the
\n
holding.
\n
Commodit
ies are fa
ir valued with the fair value derived from observable spot or short-term futures prices from relevant
\n
exchanges.
Accounting Policy
\n
Non-current assets are classif
ied as held for sale and measured at the lower of the
ir carrying amount and fair value less cost
\n
to sell when:
\n
a) Their carrying amounts will be recovered princ
ipally through sale.
\n
b) They are available for immed
iate sale
in their present condit
ion; and
\n
c) Their sale is highly probable.
\n
Immediately before the in
it
ial classif
icat
ion as held for sale, the carrying amounts of the assets are measured in accordance
\n
with the applicable accounting polic
ies related to the asset or l
iab
il
ity before reclassif
icat
ion as held for sale. Upon
\n
reclassif
icat
ion property, plant and equipment are measured at the lower of their carrying amount and fair value less costs to
\n
sell. Financ
ial
instruments continue to be measured per the accounting polic
ies
in Note 13 Financ
ial
instruments.
Accounting policy
\n
Refer to Note 13 Financ
ial
instruments for the relevant accounting policy.
Accounting policy
\n
Refer to Note 13 Financ
ial
instruments for the relevant accounting policy for \ufb01nanc
ial l
iab
il
it
ies, Note 19 Leased assets for the
\n
accounting policy for leases, and Note 31 Share-based payments for the accounting policy for cash-settled share-based
\n
payments.
Accounting policy
\n
The Group recognises a provis
ion for a present legal or construct
ive obligat
ion result
ing from a past event when it is more
\n
likely than not that it will be required to transfer economic bene\ufb01ts to settle the obligat
ion and the amount of the obl
igat
ion
\n
can be estimated reliably. Where a liab
il
ity arises based on partic
ipat
ion in a market at a specif
ied date, the obl
igat
ion
is
\n
recognised in the \ufb01nanc
ial statements on that date and
is not accrued over the period.
\n
Other accounting estimates and judgements
\n
The recognit
ion and measurement of prov
is
ions for l
iab
il
it
ies and charges requ
ires sign
i\ufb01cant judgement and the use of
\n
estimates about uncertain future condit
ions or events.
\n
Estimates include the best estimate of the probabil
ity of out\ufb02ow of econom
ic resources, cost of settling a provis
ion and
\n
tim
ing of settlement. Judgements are requ
ired for inherently uncertain areas such as legal decis
ions (
includ
ing external
\n
advice obtained), and outcome of regulator reviews.
Accounting policy
\n
Financ
ial guarantee contracts and loan comm
itments
\n
The Group issues \ufb01nanc
ial guarantee contracts and loan comm
itments in return for fees. Financ
ial guarantee contracts and
\n
any loan commitments issued at below-market interest rates are in
it
ially recognised at their fair value as a \ufb01nanc
ial l
iab
il
ity,
\n
and subsequently measured at the higher of the in
it
ial value less the cumulative amount of income recognised in accordance
\n
with the princ
iples of IFRS 15 Revenue from Contracts w
ith Customers and their expected credit loss provis
ion. Loan
\n
commitments may be designated at fair value through pro\ufb01t or loss where that is the business model under which such
\n
contracts are held. Notional values of \ufb01nanc
ial guarantee contracts and loan comm
itments are disclosed in the table below.
\n
Financ
ial guarantees, trade cred
its and irrevocable letters of credit are the notional values of contracts issued by the Group\u2019s
\n
Transaction Banking business for which an obligat
ion to make a payment has not ar
isen at the reporting date. Transaction
\n
Banking will issue contracts to clients and counterparties of clients, whereby in the event the holder of the contract is not
\n
paid, the Group will reimburse the holder of the contract for the actual \ufb01nanc
ial loss suffered. These contracts have var
ious
\n
legal forms such as letters of credit, guarantee contracts and performance bonds. The contracts are issued to facil
itate trade
\n
through export and import business, provide guarantees to \ufb01nanc
ial
inst
itut
ions where the Group has a local presence, as
\n
well as guaranteeing project \ufb01nanc
ing
involv
ing large construct
ion projects undertaken by sovereigns and corporates. The
\n
contracts may contain performance clauses which require the counterparty performing services or provid
ing goods to meet
\n
certain condit
ions before a r
ight to payment is achieved, however the Group does not guarantee this performance. The
\n
Group will only guarantee the credit of the counterparty paying for the services or goods.
\n
Commitments are where the Group has con\ufb01rmed its intent
ion to prov
ide funds to a customer or on behalf of a customer
\n
under prespecif
ied terms and cond
it
ions
in the form of loans, overdrafts, future guarantees whether cancellable or not and
\n
the Group has not made payments at the balance sheet date; those instruments are included in these \ufb01nanc
ial statements
\n
as commitments. Commitments and contingent liab
il
it
ies are generally cons
idered on demand as the Group may have to
\n
honour them, or the client may draw down at any time.
\n
Capital commitments are contractual commitments the Group has entered into to purchase non-\ufb01nanc
ial assets.
Accounting policy
\n
Where appropriate, the Group recognises a provis
ion for l
iab
il
it
ies when
it is probable that an out\ufb02ow of economic resources
\n
embodying economic bene\ufb01ts will be required, and for which a reliable estimate can be made of the obligat
ion. The
\n
uncertaint
ies
inherent in legal and regulatory matters affect the amount and tim
ing of any potent
ial out\ufb02ows with respect
\n
to which provis
ions have been establ
ished. These uncertaint
ies also mean that
it is not possible to give an aggregate
\n
estimate of contingent liab
il
it
ies ar
is
ing from such legal and regulatory matters.
Accounting policy
\n
Subordinated liab
il
it
ies and other borrowed funds are class
if
ied as \ufb01nancial
instruments. Refer to Note 13 Financ
ial
\n
instruments for the accounting policy.
\n
All subordinated liab
il
it
ies are unsecured, unguaranteed and subord
inated to the claims of other creditors includ
ing w
ithout
\n
lim
itat
ion, customer deposits and deposits by banks. The Group has the right to settle these debt instruments in certain
\n
circumstances as set out in the contractual agreements. Where a debt instrument is callable, the issuer has the right to call.
Accounting policy
\n
Financ
ial
instruments issued are classif
ied as equ
ity when there is no contractual obligat
ion to transfer cash or other \ufb01nancial
\n
assets, or no obligat
ion to
issue a variable number of own equity instruments. Incremental costs directly attributable to the
\n
issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.
\n
Securit
ies wh
ich carry a discret
ionary coupon and have no \ufb01xed matur
ity or redemption date are classif
ied as other equ
ity
\n
instruments. Interest payments on these securit
ies are recogn
ised, net of tax, as distr
ibut
ions from equity in the period in
\n
which they are paid.
\n
Where the Company or other members of the consolidated Group purchase the Company\u2019s equity share capital, the
\n
considerat
ion pa
id is deducted from the total shareholders\u2019 equity of the Group and/or of the Company as treasury shares
\n
until they are cancelled. Where such shares are subsequently sold or reissued, any considerat
ion rece
ived is included in
\n
shareholders\u2019 equity of the Group and/or the Company.
Accounting policy
\n
Non-controlling interests are measured at the non-controlling interest\u2019s proportionate share of the acquiree\u2019s ident
i\ufb01able
\n
net\u00a0assets.
Accounting policy
\n
The Group operates pension and other post-retirement bene\ufb01t plans around the world, which can be categorised into
\n
de\ufb01ned contribut
ion plans and de\ufb01ned bene\ufb01t plans. For de\ufb01ned contr
ibut
ion plans, the Group pays contr
ibut
ions to
\n
publicly or privately admin
istered pens
ion plans on a statutory or contractual basis, and such amounts are charged to
\n
operating expenses. The Group has no further payment obligat
ions once the contr
ibut
ions have been pa
id.
\n
For funded de\ufb01ned bene\ufb01t plans, the liab
il
ity recognised in the balance sheet is the present value of the de\ufb01ned bene\ufb01t
\n
obligat
ion at the balance sheet date less the fa
ir value of plan assets. For unfunded de\ufb01ned bene\ufb01t plans the liab
il
ity
\n
recognised at the balance sheet date is the present value of the de\ufb01ned bene\ufb01t obligat
ion.
\n
The de\ufb01ned bene\ufb01t obligat
ion
is calculated annually by independent actuaries using the projected unit method.
\n
Actuarial gains and losses that arise are recognised in shareholders\u2019 equity and presented in the statement of other
\n
comprehensive income in the period they arise. The Group determines the net interest expense on the net de\ufb01ned bene\ufb01t
\n
liab
il
ity for the year by applying the discount rate used to measure the de\ufb01ned bene\ufb01t obligat
ion at the beg
inn
ing of the
\n
annual period to the net de\ufb01ned bene\ufb01t liab
il
ity, taking into account any changes in the net de\ufb01ned bene\ufb01t liab
il
ity during
\n
the year as a result of contribut
ions and bene\ufb01t payments. Net
interest expense, the cost of the accrual of new bene\ufb01ts,
\n
bene\ufb01t enhancements (or reductions) and admin
istrat
ion expenses met directly from plan assets are recognised in the
\n
income statement in the period in which they were incurred.
\n
Other accounting estimates and judgements
\n
There are many factors that affect the measurement of the retirement bene\ufb01t obligat
ions. Th
is measurement requires the
\n
use of estimates, such as discount rates, in\ufb02at
ion, pens
ion increases, salary increases, and life expectancies which are
\n
inherently uncertain. Discount rates are determined by reference to market yields at the end of the reporting period on
\n
high-quality corporate bonds (or, in countries where there is no deep market in such bonds, government bonds) of a currency
\n
and term consistent with the currency and term of the post-employment bene\ufb01t obligat
ions. Th
is is the approach adopted
\n
across our geographies. Where there are in\ufb02at
ion-l
inked bonds available (e.g. United Kingdom and the eurozone), the Group
\n
derives in\ufb02at
ion based on the market on those bonds, w
ith the market yield adjusted in respect of the United Kingdom to
\n
take account of the fact that liab
il
it
ies are l
inked to Consumer Price Index in\ufb02at
ion, whereas the reference bonds are l
inked
\n
to Retail Price Index in\ufb02at
ion. Where no
in\ufb02at
ion-l
inked bonds exist, we determine in\ufb02at
ion assumpt
ions based on a
\n
combinat
ion of long-term forecasts and short-term
in\ufb02at
ion data. Salary growth assumpt
ions re\ufb02ect the Group\u2019s long-term
\n
expectations, taking into account future business plans and macroeconomic data (primar
ily expected future long-term
\n
in\ufb02at
ion). Demograph
ic assumptions, includ
ing mortal
ity and turnover rates, are typically set based on the assumptions
\n
used in the most recent actuarial funding valuation, and will generally use industry standard tables, adjusted where
\n
appropriate to re\ufb02ect recent histor
ic exper
ience and/or future expectations. The sensit
iv
ity of the liab
il
it
ies to changes
\n
in these assumptions is shown in the Note below.
Accounting policy
\n
The Group operates equity-settled and cash-settled share-based compensation plans. The fair value of the employee
\n
services (measured by the fair value of the awards granted) received in exchange for the grant of the shares and awards is
\n
recognised as an expense. For deferred share awards granted as part of an annual performance award, the expense is
\n
recognised over the period from the start of the performance period to the vesting date. For example, the expense for
\n
three-year awards granted in 2023 in respect of 2022 performance, which vest in 2024-2026, is recognised as an expense over
\n
the period from 1 January 2022 to the vesting dates in 2024-2026. For all other awards, the expense is recognised over the
\n
period from the date of grant to the vesting date.
\n
For equity-settled awards, the total amount to be expensed over the vesting period is determined by reference to the fair
\n
value of the shares and awards at the date of grant, which excludes the impact of any non-market vesting condit
ions (for
\n
example, pro\ufb01tabil
ity and growth targets). The fair value of equity instruments granted is based on market prices, if
\n
available, at the date of grant. In the absence of market prices, the fair value of the instruments is estimated using an
\n
appropriate valuation technique, such as a binom
ial opt
ion pric
ing model. Non-market vest
ing condit
ions are
included in
\n
assumptions for the number of shares and awards that are expected to vest.
\n
At each balance sheet date, the Group revises its estimates of the number of shares and awards that are expected to vest. It
\n
recognises the impact of the revis
ion of or
ig
inal est
imates, if any, in the income statement and a corresponding adjustment
\n
to equity over the remain
ing vest
ing period. Forfeitures prior to vesting attributable to factors other than the failure to satisfy
\n
service condit
ions and non-market vest
ing condit
ions are treated as a cancellat
ion and the remain
ing unamort
ised charge
\n
is debited to the income statement at the time of cancellation. The proceeds received net of any directly attributable
\n
transaction costs are credited to share capital (nominal value) and share premium when awards in the form of options
\n
are exercised.
\n
Cash-settled awards are revalued at each balance sheet date and a liab
il
ity recognised on the balance sheet for all unpaid
\n
amounts, with any changes in fair value charged or credited to staff costs in the income statement until the awards are
\n
exercised. Where forfeitures occur prior to vesting that are attributable to factors other than a failure to satisfy service
\n
condit
ions or market-based performance cond
it
ions, the cumulat
ive charge incurred up to the date of forfeiture is credited
\n
to the income statement. Any revaluation related to cash-settled awards is recorded as an amount due from subsid
iary
\n
undertakings.
\n
Other accounting estimates and judgements
\n
Share-based payments involve judgement and estimat
ion uncerta
inty in determin
ing the expenses and carry
ing values of
\n
share awards at the balance sheet date.
\n
\u2022
LTIP awards are determined using an estimat
ion of the probab
il
ity of meet
ing certain metrics over a three-year
\n
performance period using the Monte Carlo simulat
ion model.
\n
\u2022
Deferred shares and restricted shares are determined using an estimat
ion of expected d
iv
idends.
\n
\u2022
The 2013 Sharesave Plan valuation is determined using a binom
ial opt
ion-pric
ing model.
Accounting policy
\n
Subsid
iar
ies
\n
Subsid
iar
ies are all entit
ies,
includ
ing structured ent
it
ies, wh
ich the Group controls. The Group controls an entity when it is
\n
exposed to, and has rights to, variable returns from its involvement with the entity and has the abil
ity to affect those returns
\n
through its power over the investee. The assessment of power is based on the Group\u2019s practical abil
ity to d
irect the relevant
\n
activ
it
ies of the entity unilaterally for the Group\u2019s own bene\ufb01t and is subject to reassessment if and when one or more of the
\n
elements of control change. Subsid
iar
ies are fully consolidated from the date on which the Group effectively obtains control.
\n
They are deconsolidated from the date that control ceases, and where any interest in the subsid
iary rema
ins, this is
\n
remeasured to its fair value and the change in carrying amount is recognised in the income statement.
\n
Associates and jo
int arrangements
\n
Joint arrangements are where two or more parties either have rights to the assets, and obligat
ions of the joint arrangement
\n
(joint operat
ions), or have rights to the net assets of the jo
int arrangement (joint venture). The Group evaluates the
\n
contractual terms of joint arrangements to determ
ine whether a jo
int arrangement
is a jo
int operat
ion or a jo
int venture.
\n
The Group did not have any contractual interest in jo
int operat
ions.
\n
An associate is an entity over which the Group has sign
i\ufb01cant
in\ufb02uence.
\n
Investments in associates and jo
int ventures are accounted for by the equ
ity method of accounting and are in
it
ially
\n
recognised at cost. The Group\u2019s investment in associates and jo
int ventures
includes goodwill ident
i\ufb01ed on acqu
is
it
ion (net of
\n
any accumulated impa
irment loss).
\n
The Group\u2019s share of its associates\u2019 and jo
int ventures\u2019 post-acqu
is
it
ion pro\ufb01ts or losses is recognised in the income statement,
\n
and its share of post-acquis
it
ion movements in other comprehensive income is recognised in reserves. The cumulative
\n
post-acquis
it
ion movements are adjusted against the carrying amount of the investment. When the Group\u2019s share of losses
\n
in an associate or a jo
int venture equals or exceeds
its interest in the associate, includ
ing any other unsecured rece
ivables, the
\n
Group does not recognise further losses, unless it has incurred obligat
ions or made payments on behalf of the assoc
iate or
\n
joint venture.
\n
Unrealised gains and losses on transactions between the Group and its associates and jo
int ventures are el
im
inated to the
\n
extent of the Group\u2019s interest in the associates and jo
int ventures. At each balance sheet date, the Group assesses whether
\n
there is any object
ive ev
idence of impa
irment
in the investment in associates and jo
int ventures. Such ev
idence includes a
\n
sign
i\ufb01cant or prolonged decl
ine in the fair value of the Group\u2019s investment in an associate or jo
int venture below
its cost,
\n
among other factors.
Sign
i\ufb01cant account
ing estimates and judgements
\n
The Group applies judgement in determin
ing
if it has control, jo
int control or s
ign
i\ufb01cant
in\ufb02uence over subsid
iar
ies, jo
int
\n
ventures and associates respectively. These judgements are based upon ident
ify
ing the relevant activ
it
ies of counterparties,
\n
being those activ
it
ies that sign
i\ufb01cantly affect the ent
it
ies returns, and further mak
ing a decis
ion of
if the Group has control
\n
over those entit
ies, joint control, or has s
ign
i\ufb01cant
in\ufb02uence (being the power to partic
ipate
in the \ufb01nanc
ial and operat
ing
\n
policy decis
ions but not control them).
\n
These judgements are at times determined by equity holdings, and the voting rights associated with those holdings.
\n
However, further considerat
ions
includ
ing but not l
im
ited to board seats, adv
isory committee members and special
ist
\n
knowledge of some decis
ion-makers are also taken
into account. Further judgement is required when determin
ing
if the
\n
Group has de-facto control over an entity even though it may hold less than 50% of the voting shares of that entity.
\n
Judgement is required to determine the relative size of the Group\u2019s shareholding when compared to the size and dispers
ion
\n
of other shareholders.
\n
Impairment testing of investments in associates and jo
int ventures, and on a Company level
investments in subsid
iar
ies is
\n
performed if there is a possible ind
icator of
impa
irment. Judgement
is used to determine if there is object
ive ev
idence of
\n
impa
irment. Objective ev
idence may be observable data such as losses incurred on the investment when applying the equity
\n
method, the granting of concessions as a result of \ufb01nanc
ial d
iff
iculty, or breaches of contracts/regulatory \ufb01nes of the
\n
associate or jo
int venture. Further judgement
is required when consider
ing broader
ind
icators of
impa
irment such as losses of
\n
active markets or ratings downgrades across key markets in which the associate or jo
int venture operate
in.
\n
Impairment testing is based on estimates includ
ing forecast
ing the expected cash \ufb02ows from the investments, growth rates,
\n
terminal values and the discount rate used in calculation of the present values of those cash \ufb02ows. The estimat
ion of future
\n
cash \ufb02ows and the level to which they are discounted is inherently uncertain and requires sign
i\ufb01cant judgement.
\n
Business combinat
ions
\n
The acquis
it
ion method of accounting is used to account for the acquis
it
ion of subsid
iar
ies by the Group. The cost of an
\n
acquis
it
ion is measured as the fair value of the assets given, equity instruments issued and liab
il
it
ies
incurred or assumed at
\n
the date of exchange, together with the fair value of any contingent considerat
ion payable. The excess of the cost of
\n
acquis
it
ion over the fair value of the Group\u2019s share of the ident
i\ufb01able net assets and cont
ingent liab
il
it
ies acqu
ired is recorded
\n
as goodwill (see Note 17 for details on goodwill recognised by the Group). If the cost of acquis
it
ion is less than the fair value of
\n
the net assets and contingent liab
il
it
ies of the subs
id
iary acqu
ired, the difference is recognised directly in the income
\n
statement.
\n
Where the fair values of the ident
i\ufb01able net assets and cont
ingent liab
il
it
ies acqu
ired have been determined provis
ionally, or
\n
where contingent or deferred considerat
ion
is payable, adjustments aris
ing from the
ir subsequent \ufb01nal
isat
ion are not
\n
re\ufb02ected in the income statement if (i) they arise with
in 12 months of the acqu
is
it
ion date (or relate to acquis
it
ions completed
\n
before 1 January 2014) and (i
i) the adjustments ar
ise from better informat
ion about cond
it
ions ex
ist
ing at the acqu
is
it
ion
\n
date (measurement period adjustments). Such adjustments are applied as at the date of acquis
it
ion and, if applicable, prior
\n
year amounts are restated. All changes that are not measurement period adjustments are reported in income other than
\n
changes in contingent considerat
ion not class
if
ied as \ufb01nancial
instruments, which are accounted for in accordance with the
\n
appropriate accounting policy, and changes in contingent considerat
ion class
if
ied as equ
ity, which is not remeasured.
\n
Changes in ownership interest in a subsid
iary, wh
ich do not result in a loss of control, are treated as transactions between
\n
equity holders and are reported in equity. Where a business combinat
ion
is achieved in stages, the previously held equity
\n
interest is remeasured at the acquis
it
ion date fair value with the resulting gain or loss recognised in the income statement.
\n
In the Company\u2019s \ufb01nancial statements,
investment in subsid
iar
ies, associates and jo
int ventures are held at cost less
\n
impa
irment and d
iv
idends from pre-acqu
is
it
ion pro\ufb01ts received prior to 1 January 2009, if any. Inter-company transactions,
\n
balances and unrealised gains and losses on transactions between Group companies are elim
inated
in the Group accounts.
Accounting policy
\n
A structured entity is an entity that has been designed so that voting or sim
ilar r
ights are not the dominant factor in decid
ing
\n
who controls the entity. Contractual arrangements determine the rights and therefore relevant activ
it
ies of the structured
\n
entity. Structured entit
ies are generally created to ach
ieve a narrow and well-de\ufb01ned object
ive w
ith restrict
ions around the
ir
\n
activ
it
ies. Structured entit
ies are consol
idated when the substance of the relationsh
ip between the Group and the structured
\n
entity ind
icates the Group has power over the contractual relevant act
iv
it
ies of the structured entity, is exposed to variable
\n
returns, and can use that power to affect the variable return exposure.
\n
In determin
ing whether to consol
idate a structured entity to which assets have been transferred, the Group takes into
\n
account its abil
ity to d
irect the relevant activ
it
ies of the structured entity. These relevant activ
it
ies are generally evidenced
\n
through a unilateral right to liqu
idate the structured ent
ity, investment in a substantial proportion of the securit
ies
issued by
\n
the structured entity or where the Group holds specif
ic subord
inate securit
ies that embody certa
in controlling rights. The
\n
Group may further consider relevant activ
it
ies embedded with
in contractual arrangements such as call opt
ions which give
\n
the practical abil
ity to d
irect the entity, special relationsh
ips between the structured ent
ity and investors, and if a single
\n
investor has a large exposure to variable returns of the structured entity.
\n
Judgement is required in determin
ing control over structured ent
it
ies. The purpose and des
ign of the entity is considered,
\n
along with a determinat
ion of what the relevant act
iv
it
ies are of the entity and who directs these. Further judgements are
\n
made around which investor is exposed to, and absorbs the variable returns of the structured entity. The Group will have to
\n
weigh up all of these facts to consider whether the Group, or another involved party is acting as a princ
ipal
in its own right or
\n
as an agent on behalf of others. Judgement is further required in the ongoing assessment of control over structured entit
ies,
\n
specif
ically
if market condit
ions have an effect on the var
iable return exposure of different investors.
\n
The Group has involvement with both consolidated and unconsolidated structured entit
ies, wh
ich may be established by the
\n
Group as a sponsor or by a third-party.
Accounting policy
\n
For the purposes of the cash \ufb02ow statement, cash and cash equivalents comprise cash, on demand and overnight balances
\n
with central banks (unless restricted) and balances with less than three months\u2019 maturity from the date of acquis
it
ion,
\n
includ
ing treasury b
ills and other elig
ible b
ills, loans and advances to banks, and short-term government securit
ies.
", "dimensions": { "concept": "ifrs-full:DisclosureOfSummaryOfSignificantAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f76174": { "value": "Statement of compliance \n
The Group \ufb01nancial statements consol
idate Standard
\n
Chartered PLC (the Company) and its subsid
iar
ies (together
\n
referred to as the Group) and equity account the Group\u2019s
\n
interests in associates and jo
intly controlled ent
it
ies. The
\n
parent company \ufb01nancial statements present
informat
ion
\n
about the Company as a separate entity.
\n
The Group \ufb01nancial statements have been prepared
in
\n
accordance with UK-adopted internat
ional account
ing
\n
standards and International Financ
ial Report
ing Standards
\n
(IFRS) as adopted by the European Union (EU IFRS). The
\n
Company \ufb01nancial statements have been prepared
in
\n
accordance with UK-adopted internat
ional account
ing
\n
standards as applied in conformity with section 408 of the
\n
Companies Act 2006. The \ufb01nanc
ial statements have been
\n
prepared in accordance with the requirements of the
\n
Companies Act 2006.
\n
There are no sign
i\ufb01cant d
ifferences between UK-adopted
\n
internat
ional account
ing standards and EU IFRS.
\n
The following parts of the Risk review and Capital review
\n
form part of these \ufb01nancial statements:
\n
a) Risk review: Disclosures marked as \u2018audited\u2019 from the start
\n
of the Credit Risk section (page 236) to the end of Other
\n
princ
ipal r
isks in the same section (page 319).
\n
b) Capital review: Tables marked as \u2018audited\u2019 from the start
\n
of \u2018CRD Capital base\u2019 to the end of \u2018Movement in total
\n
capital\u2019, excluding \u2018Total risk-weighted assets\u2019 (pages 321 to
\n322).", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f76228": { "value": "Basis of preparation \n
The consolidated and Company \ufb01nanc
ial statements have
\n
been prepared on a going concern basis and under the
\n
histor
ical cost convent
ion, as modif
ied by the revaluat
ion of
\n
cash-settled share-based payments, fair value through
\n
other comprehensive income, and \ufb01nanc
ial assets and
\n
liab
il
it
ies (
includ
ing der
ivat
ives) at fa
ir value through pro\ufb01t or
\n
loss.
\n
The consolidated \ufb01nanc
ial statements are presented
in
\n
United States dollars ($), being the presentation currency of
\n
the Group and functional currency of the Company, and all
\n
values are rounded to the nearest mill
ion dollars, except
\n
when otherwise ind
icated.", "dimensions": { "concept": "stan:DescriptionOfAccountingPolicyForBasisOfPreparationExplanatoryPolicyTextBlock", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f76262": { "value": "Sign
i\ufb01cant and other account
ing estimates and judgement
\n
In determin
ing the carry
ing amounts of certain assets and
\n
liab
il
it
ies, the Group makes assumpt
ions of the effects of
\n
uncertain future events on those assets and liab
il
it
ies at the
\n
balance sheet date. The Group\u2019s estimates and assumptions
\n
are based on histor
ical exper
ience and expectation of future
\n
events and are reviewed period
ically. Further
informat
ion
\n
about key assumptions concerning the future, and other key
\n
sources of estimat
ion uncerta
inty and judgement, are set
\n
out in the relevant disclosure notes for the areas set out
\n
under the relevant headings below:
\n
Sign
i\ufb01cant account
ing estimates and crit
ical judgements
\n
Sign
i\ufb01cant account
ing estimates and judgements represent
\n
those items which have a sign
i\ufb01cant r
isk of causing a
\n
material adjustment to the carrying amounts of assets and
\n
liab
il
it
ies w
ith
in the next year. S
ign
i\ufb01cant account
ing
\n
estimates and judgements are:
\n
\u2022
Credit impa
irment,
includ
ing evaluat
ion of management
\n
overlays and post-model adjustments, and determinat
ion
\n
of probabil
ity we
ight
ings for Stage 3
ind
iv
idually assessed
\n
provis
ions (Note 8)
\n
\u2022
Financ
ial
instruments measured at fair value (Note 13)
\n
\u2022
Investments in subsid
iary undertak
ings, jo
int ventures and
\n
associates \u2013 China Bohai associate accounting and
\n
impa
irment analys
is (Note 32)
\n
Other areas of accounting estimate and judgement
\n
Other areas of accounting estimate and judgement do not
\n
meet the de\ufb01nit
ion under IAS 1 of sign
i\ufb01cant account
ing
\n
estimates or crit
ical account
ing judgements, but the
\n
recognit
ion of certa
in material assets and liab
il
it
ies are
\n
based on assumptions and/or are subject to long-term
\n
uncertaint
ies. The other areas of account
ing estimate and
\n
judgement are:
\n
\u2022 Taxation (Note 10)
\n
\u2022
Goodwill impa
irment (Note 17)
\n
\u2022
Property, plant and equipment (Note 18)
\n
\u2022
Recoverable amounts for aircraft operating lease assets
\n
(Note 18)
\n
\u2022
Retirement bene\ufb01t obligat
ions (Note 30)
\n
\u2022
Provis
ions for l
iab
il
it
ies and charges (Note 24)
\n
\u2022
Share-based payments (Note 31)
\n
Climate impact on the Group\u2019s balance sheet
\n
Climate, and the impact of climate on the Group\u2019s balance
\n
sheet is considered as an area of sign
i\ufb01cant account
ing
\n
estimate and judgment through the uncertainty of future
\n
events and the impact of that uncertainty on the Group\u2019s
\n
assets and liab
il
it
ies. It
is noted that although not currently
\n
quantitat
ively mater
ial, the Group considers climate to be
\n
qualitat
ively mater
ial to the Group.
\n
The Group has assessed the impact of climate risk on the
\n
\ufb01nancial report. Th
is is set out with
in the Susta
inable and
\n
Responsible Business chapter on pages 64 to 66 which
\n
incorporates the Group\u2019s Climate-related Financ
ial
\n
Disclosures which align with the recommendations from the
\n
Task Force for Climate related Financ
ial D
isclosures (TCFD).
\n
Further risk disclosure has been provided on pages 301 and
\n
319 of the Princ
ipal R
isks and Uncertaint
ies sect
ion of the
\n
Annual Report where the Group has described how it
\n
manages climate risk as an Integrated Risk Type.
\n
Notes to the \ufb01nancial statements
349
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
1. Accounting polic
ies
continued
\n
The areas of impact and where judgements and the use of
\n
estimates have been applied were credit risk and the impact
\n
on lending portfolios; Environmental, Sustainab
il
ity or
\n
Governance (ESG) features with
in
issued loans and bonds;
\n
physical risk on our mortgage lending portfolio; and, the
\n
corporate plan, in respect of which forward looking cash
\n
\ufb02ows impact the recoverabil
ity of certa
in assets, includ
ing of
\n
goodwill, deferred tax assets and investments in subsid
iary
\n
undertakings.
\n
This assessment on the corporate loan portfolio was
\n
undertaken by consider
ing the matur
ity pro\ufb01le of the loan
\n
portfolio which is major
ity shorter term. Trans
it
ion r
isk, as our
\n
clients move to lower carbon emitt
ing revenues, (e
ither by
\n
virtue of legislat
ion or chang
ing end customer preference) is
\n
considered with reference to client transit
ion pathways and
\n
manifests over a longer term than the maturity of the loan
\n
book (up to 2050). Further transit
ion r
isk is managed through
\n
reviews of clients with ESG risk by the Group\u2019s Risk function,
\n
and through an ongoing process of ident
ify
ing clients which
\n
have transit
ion pathways that are Par
is 1.5 degree compliant
\n
and congruent with the Groups.
\n
Physical risk is already included with
in the majority of our
\n
mortgage lending and we have applied scenario analysis
\n
against the pathways of different temperature addit
ions
\n
and country policy scenarios. We also assess the impact of
\n
climate risk on the classif
icat
ion of \ufb01nanc
ial
instruments
\n
under IFRS 9, when ESG triggers may affect the cash \ufb02ows
\n
received by the Group under the contractual terms of the
\n
instrument.
\n
The Group Climate Risk team have performed a top-down
\n
quantitat
ive assessment of the
impact of climate risk on the
\n
IFRS 9 ECL provis
ion. Th
is assessment has been performed
\n
across both the CCIB and CPBB portfolios. CCIB includes
\n
Corporates, Sovereign, Asset Backed Securit
ies, Commerc
ial
\n
and Special
ised Lend
ing. CPBB includes Mortgages, Personal
\n
Loans and Credit Cards. The climate adjusted ECL was
\n
estimated by adding climate scalars (multipl
icat
ive
\n
adjustments) to the business as usual ECL. The scalars, such
\n
as LGD increases, have been informed by the judgement of
\n
using three Network of Central Banks and Supervisors for
\n
Greening the Financ
ial System (NGFS) pathways/scenar
ios,
\n
being Early Action, Late Action and No Addit
ional Act
ion.
\n
These pathways have been probabil
ity we
ighted and
\n
generally include the addit
ion of carbon charges/taxes over
\n
time to model transit
ion r
isk. The impact assessment which is
\n
considered a resulted in an marginal ECL increase across
\n
CCIB and CPBB which will not be recorded as an overlay for
\n
the 2022 year end (in line with our view that the quantitat
ive
\n
impact of Climate Risk is currently lim
ited).
\n
The Group\u2019s corporate plan has a 5 year outlook and already
\n
includes where we have committed to transit
ion
ing away
\n
from certain high carbon sectors (i.e. coal), offset by
\n
transit
ion \ufb01nance opportun
it
ies. Th
is is shorter term than
\n
many of the climate scenario outlooks but seeks to capture
\n
the nearer term performance as required by recoverabil
ity
\n
models. We have for the \ufb01rst time in the 2023 corporate plan
\n
included antic
ipated ECL charges l
inked to climate for three
\n
sectors (Oil and Gas, Metals and Min
ing and Power) over the
\n
5 years. This addit
ion of ECL has not
in itself, impacted the
\n
recoverabil
ity of assets supported by d
iscounted cash \ufb02ow
\n
models (such as Value in Use) which util
ise the corporate
\n
plan.
\n
With the aim to enhance our internal scenario analysis
\n
capabil
it
ies in line with our Risk Appetite Statement, in 2022
\n
we assessed the impact on our CCIB corporate client
\n
portfolio based on three International Energy Agency (IEA)
\n
scenarios and three Phase 2 scenarios from the NGFS
\n
(Which align to the CBES scenarios) and partic
ipated
in the
\n
Monetary Authority of Singapore Industry-Wide Stress Test.
\n
We also assessed the impact of sea level rises under various
\n
Intergovernmental Panel on Climate Change (IPCC)
\n
Representative Concentration Pathways (RCP) scenarios to
\n
explore the Physical Risk impact on the Consumer, Private
\n
and Business Banking (CPBB) resident
ial mortgage portfol
io
\n
over short- and long-term time horizons for internal risk
\n
management purposes. Notwithstand
ing these challenges,
\n
our work to date, using certain assumptions and proxies,
\n
ind
icates that our bus
iness is resil
ient to all Network of
\n
Central Banks and Supervisors for Greening the Financ
ial
\n
System (NGFS) and IEA scenarios that were explored.
\n
The Group, although acknowledging the lim
itat
ions of
\n
current data available, increas
ing soph
ist
icat
ion of models
\n
evolving and nascent nature of climate impacts on internal
\n
and client assets, considers Climate Risk to have lim
ited
\n
quantitat
ive
impact in the immed
iate term and as a longer
\n
term risk will be addressed through its business strategy and
\n
\ufb01nancial plann
ing as the Group implements its net zero
\njourney.", "dimensions": { "concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f76622": { "value": "IFRS and Hong Kong accounting requirements \n
As required by the Hong Kong List
ing Rules, an explanat
ion
\n
of the differences in accounting practices between UK-
\n
adopted IFRS and Hong Kong Financ
ial Report
ing Standards
\n
is required to be disclosed. There would be no sign
i\ufb01cant
\n
differences had these accounts been prepared in
\n
accordance with Hong Kong Financ
ial Report
ing Standards.", "dimensions": { "concept": "stan:DescriptionOfAccountingPolicyForIfrsAndHongKongAccountingRequirementsExplanatoryPolicyTextBlock", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f76639": { "value": "Comparatives \n
Certain comparatives have been restated in line with current
\n
year disclosures. Details of these changes are set out in the
\n
relevant sections and notes below:
\n
\u2022
Note 2 Segmental informat
ion
\n
\u2022
Note 4 Net fees and commiss
ion
\n
\u2022
Note 12 Earnings per ordinary share
\n
\u2022
Note 13 Financ
ial
instruments
\n
\u2022
Note 14 Derivat
ive \ufb01nancial
instruments
\n
\u2022
Note 33 Structured entit
ies
\n
\u2022
Note 36 Related party transactions
\n
\u2022
Risk review: various credit risk tables for new segment
\n
Ventures and Operational Risk events and losses
\n
\u2022
Capital review: new segment Ventures", "dimensions": { "concept": "stan:DescriptionOfAccountingPolicyForComparativesExplanatoryPolicyTextBlock", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f76672": { "value": "New accounting standards in issue but not yet effective \n
IFRS 17 Insurance Contracts
\n
IFRS 17 Insurance Contracts was issued in May 2017 (and
\n
subsequently amended in June 2020) to replace IFRS 4
\n
Insurance Contracts and to establish a comprehensive
\n
standard for inceptors of insurance polic
ies. The Group w
ill
\n
apply IFRS 17 for annual reporting periods beginn
ing on
\n
January 1, 2023. IFRS 17 will not have a material impact on the
\nGroup\u2019s \ufb01nancial statements.", "dimensions": { "concept": "stan:DescriptionOfAccountingPolicyForNewAccountingStandardsInIssueButNotYetEffectiveIfrs17InsuranceContractsExplanatoryPolicyTextBlock", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f76704": { "value": "Going concern \n
These \ufb01nancial statements were approved by the Board of
\n
directors on 16 February 2023. The directors have made an
\n
assessment of the Group\u2019s abil
ity to cont
inue as a going
\n
concern. This assessment has been made having considered
\n
the impact of COVID-19, macroeconomic and geopolit
ical
\n
headwinds, includ
ing:
\n
\u2022
Review of the Group Strategy and Corporate Plan
\n
\u2022
An assessment of the actual performance to date, loan
\n
book quality, credit impa
irment, legal, regulatory and
\n
compliance matters, and the updated annual budget
\n
\u2022
Considerat
ion of stress test
ing performed, includ
ing both
\n
the Bank of England annual stress test and a Group
\n
Recovery and Resolution Plan (RRP) as submitted to the
\n
PRA. Both these submiss
ions
include the applicat
ion of
\n
stressed scenarios includ
ing; COVID add
it
ional waves w
ith
\n
the accompanying economic shocks, credit impact and
\n
short term liqu
id
ity shocks. Under the tests and through
\n
the range of scenarios, the results of these exercises and
\n
the RRP demonstrate that the Group has suf\ufb01cient cap
ital
\n
and liqu
id
ity to continue as a going concern and meet
\n
min
imum regulatory cap
ital and liqu
id
ity requirements
\n
\u2022
Analysis of the capital, funding and liqu
id
ity posit
ion of the
\n
Group, includ
ing the cap
ital and leverage ratios, and
\n
ICAAP which summarises the Group\u2019s capital and risk
\n
assessment processes, assesses its capital requirements
\n
and the adequacy of resources to meet them. Further,
\n
funding and liqu
id
ity was considered in the context of the
\n
risk appetite metrics, includ
ing the ADR and LCR rat
ios
\n
\u2022
The Group\u2019s Internal Liqu
id
ity Adequacy Assessment
\n
Process (ILAAP), which considers the Group\u2019s liqu
id
ity
\n
posit
ion,
its framework and whether suf\ufb01c
ient l
iqu
id
ity
\n
resources are being mainta
ined to meet l
iab
il
it
ies as they
\n
fall due, was also reviewed
\n
\u2022
The level of debt in issue, includ
ing redempt
ions and
\n
issuances during the year, debt falling due for repayment
\n
in the next 12 months and further planned debt issuances,
\n
includ
ing the appet
ite in the market for the Group\u2019s debt
\n
\u2022
A detailed review of all princ
ipal and emerg
ing risks
\n
Based on the analysis performed, the directors con\ufb01rm they
\n
are satisf
ied that the Group has adequate resources to
\n
continue in business for a period of at least 12 months from 16
\n
February 2023. For this reason, the Group continues to adopt
\n
the going concern basis of accounting for preparing the
\n\ufb01nancial statements.", "dimensions": { "concept": "ifrs-full:DisclosureOfGoingConcernExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f76814": { "value": "2. Segmental informat
ion
\n
Basis of preparation
\n
The analysis re\ufb02ects how the client segments and geographic
\n
regions are managed internally. This is described as the
\n
Management View (on an underlying basis) and is princ
ipally
\n
the location from which a client relationsh
ip
is managed,
\n
which may differ from where it is \ufb01nanc
ially booked and may
\n
be shared between businesses and/or regions. In certain
\n
instances this approach is not appropriate and a Financ
ial
\n
View is disclosed, that is, the location in which the transaction
\n
or balance was booked. Typically, the Financ
ial V
iew is used in
\n
areas such as the Market and Liqu
id
ity Risk reviews where
\n
actual booking location is more important for an assessment.
\n
Segmental informat
ion
is therefore on a Management View
\n
unless otherwise stated.
\n
Segments and regions
\n
The Group\u2019s segmental reporting is in accordance with IFRS 8
\n
Operating Segments and is reported consistently with the
\n
internal performance framework and as presented to the
\n
Group\u2019s Management Team.
\n
As part of the ongoing execution of its refreshed strategy, the
\n
Group has expanded and reorganised its reporting structure
\n
with the creation of a third client segment, Ventures, effective
\n
on 1st January 2022. Ventures is a consolidat
ion of SC Ventures
\n
and its related entit
ies as well as the Group\u2019s two majority-
\n
owned dig
ital banks Mox
in Hong Kong and Trust Bank in
\n
Singapore.
\n
\u2022
SC Ventures is the platform and catalyst for the Group to
\n
promote innovat
ion,
invest in disrupt
ive \ufb01nancial technology
\n
and explore alternative business models
\n
\u2022
Mox, a cloud-native, mobile only dig
ital bank, was launched
\n
in Hong Kong as a jo
int venture w
ith HKT, PCCW and Ctrip
\n
in September 2020
\n
\u2022
Trust Bank was launched in Singapore in partnership with
\n
FairPr
ice Group, the nat
ion\u2019s leading grocery retailer, in
\n
September 2022
\n
The changes above require comparative periods to be
\n
restated.
351
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
2. Segmental informat
ion
continued
\n
Restructuring items excluded from underlying results
\n
The Group\u2019s statutory IFRS performance is adjusted for certain items to arrive at alternative performance measures. These items
\n
include pro\ufb01ts or losses of a capital nature, amounts consequent to investment transactions driven by strategic intent, other
\n
infrequent and/or exceptional transactions that are sign
i\ufb01cant or mater
ial in the context of the Group\u2019s normal business
\n
earnings for the period and items which management and investors would ordinar
ily
ident
ify separately when assess
ing
\n
consistent performance period by period. The alternative performance measures are not with
in the scope of IFRS and not a
\n
substitute for IFRS measures. These adjustments are set out below.
\n
Restructuring charges of $174 mill
ion pr
imar
ily relate to redundanc
ies partly offset by income from the Princ
ipal F
inance and
\n
Ship Leasing portfolios.
\n
Reconcil
iat
ions between underlying and statutory results are set out in the tables below:
\n
2022
\n
Underlying
\n
$mill
ion
\n
Regulatory
\n
\ufb01ne
\n
$mill
ion
\n
Restructuring
\n
$mill
ion
\n
Net gain on
\n
businesses
\n
disposed of/
\n
held for sale
\n
$mill
ion
\n
Goodwill
\n
and other
\n
impa
irment
\n
1
\n
$mill
ion
\n
Statutory
\n
$mill
ion
\n
Operating income
16,255
\u2013
43
20
\u2013
16,318
\n
Operating expenses
(10,743)
\u2013
(170)
\u2013
\u2013
(10,913)
\n
Operating pro\ufb01t/(loss) before
\n
impa
irment losses and taxat
ion
5,512
\u2013
(127)
20
\u2013
5,405
\n
Credit impa
irment
(838)
\u2013
2
\u2013
\u2013
(836)
\n
Other impa
irment
(79)
\u2013
(38)
\u2013
(322)
(439)
\n
Pro\ufb01t from associates and jo
int ventures
167
\u2013
(11)
\u2013
\u2013
156
\n
Pro\ufb01t/(loss) before taxation
4,762
\u2013
(174)
20
(322)
4,286
\n
2021
\n
Underlying
\n
$mill
ion
\n
Regulatory
\n
\ufb01ne
\n
$mill
ion
\n
Restructuring
\n
$mill
ion
\n
Net gain on
\n
businesses
\n
disposed of/
\n
held for sale
\n
$mill
ion
\n
Goodwill
\n
and other
\n
impa
irment
\n
1
\n
$mill
ion
\n
Statutory
\n
$mill
ion
\n
Operating income
14,713
\u2013
(32)
20
\u2013
14,701
\n
Operating expenses
(10,375)
(62)
(487)
\u2013
\u2013
(10,924)
\n
Operating pro\ufb01t/(loss) before
\n
impa
irment losses and taxat
ion
4,338
(62)
(519)
20
\u2013
3,777
\n
Credit impa
irment
(263)
\u2013
9
\u2013
\u2013
(254)
\n
Other impa
irment
(55)
\u2013
(17)
\u2013
(300)
(372)
\n
Pro\ufb01t from associates and jo
int ventures
176
\u2013
20
\u2013
\u2013
196
\n
Pro\ufb01t/(loss) before taxation
4,196
(62)
(507)
20
(300)
3,347
\n
1
Goodwill and other impa
irment
include $308 mill
ion
impa
irment charge relat
ing to the Group\u2019s investment in its associate China Bohai Bank (Bohai). The 2021
\n
comparative has been restated for consistency to reclassify the $300 mill
ion
impa
irment from Other
impa
irment w
ith
in Underly
ing pro\ufb01t to Goodwill and other
\n
impa
irment
352
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
2. Segmental informat
ion
continued
\n
Underlying performance by client segment
\n
2022
\n
Corporate,
\n
Commercial
\n
Institut
ional
\n
Banking
\n
$mill
ion
\n
Consumer,
\n
Private &
\n
Business
\n
Banking
\n
$mill
ion
\n
Ventures
\n
$mill
ion
\n
Central &
\n
other items
\n
(segment)
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Operating income
10,045
6,016
29
165
16,255
\n
External
8,899
4,989
29
2,338
16,255
\n
Inter-segment
1,146
1,027
\u2013
(2,173)
\u2013
\n
Operating expenses
(5,480)
(4,148)
(336)
(779)
(10,743)
\n
Operating pro\ufb01t/(loss) before impa
irment losses
\n
and taxation
4,565
1,868
(307)
(614)
5,512
\n
Credit impa
irment
(425)
(262)
(16)
(135)
(838)
\n
Other impa
irment
(40)
(10)
(24)
(5)
(79)
\n
Pro\ufb01t from associates and jo
int ventures
\u2013
\u2013
(16)
183
167
\n
Underlying pro\ufb01t/(loss) before taxation
4,100
1,596
(363)
(571)
4,762
\n
Restructuring
(50)
(63)
(1)
(60)
(174)
\n
Goodwill and other impa
irment\u2074
\u2013
\u2013
\u2013
(322)
(322)
\n
Other items
\u2013
\u2013
\u2013
20
20
\n
Statutory pro\ufb01t/(loss) before taxation
4,050
1,533
(364)
(933)
4,286
\n
Total assets
401,567
133,956
2,451
281,948
819,922
\n
Of which: loans and advances to customers
184,254
130,985
702
41,789
357,730
\n
loans and advances to customers
139,756
130,957
702
39,232
310,647
\n
loans held at fair value through pro\ufb01t or loss
\n
(FVTPL)
\n
2
\n
44,498
28
\u2013
2,557
47,083
\n
Total liab
il
it
ies
479,981
185,396
1,658
102,871
769,906
\n
Of which: customer accounts
\n
3
\n
332,176
180,659
1,548
5,846
520,229
\n
2021 (Restated)\u00b9
\n
Corporate,
\n
Commercial &
\n
Institut
ional
\n
Banking
\n
$mill
ion
\n
Consumer,
\n
Private &
\n
Business
\n
Banking
\n
$mill
ion
\n
Ventures
\n
$mill
ion
\n
Central &
\n
other items
\n
(segment)
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Operating income
8,407
5,735
1
570
14,713
\n
External
7,952
5,375
1
1,385
14,713
\n
Inter-segment
455
360
\u2013
(815)
\u2013
\n
Operating expenses
(5,278)
(4,227)
(253)
(617)
(10,375)
\n
Operating pro\ufb01t/(loss) before impa
irment losses
\n
and taxation
3,129
1,508
(252)
(47)
4,338
\n
Credit impa
irment
44
(282)
(3)
(22)
(263)
\n
Other impa
irment
(49)
\u2013
\u2013
(6)
(55)
\n
Pro\ufb01t from associates and jo
int ventures
\u2013
\u2013
(6)
182
176
\n
Underlying pro\ufb01t/(loss) before taxation
3,124
1,226
(261)
107
4,196
\n
Restructuring
(114)
(235)
(3)
(155)
(507)
\n
Goodwill and other impa
irment\u2074
\u2013
\u2013
\u2013
(300)
(300)
\n
Other items
\u2013
\u2013
20
(62)
(42)
\n
Statutory pro\ufb01t/(loss) before taxation
3,010
991
(244)
(410)
3,347
\n
Total assets
405,778
139,364
1,098
281,578
827,818
\n
Of which: loans and advances to customers
208,729
136,477
88
24,409
369,703
\n
loans and advances to customers
139,335
136,410
88
22,635
298,468
\n
loans held at fair value through pro\ufb01t or loss
\n
(FVTPL)
\n
2
\n
69,394
67
\u2013
1,774
71,235
\n
Total liab
il
it
ies
481,397
182,210
766
110,809
775,182
\n
Of which: customer accounts
\n
3
\n
351,696
178,088
689
11,982
542,455
\n
1
Following the increased strategic importance and reporting of Ventures to management, this has been established as a separate operating segment in 2022
\n
Prior periods have been restated. Ventures is comprised of Mox, Trust Bank & SC Ventures; a large part of Ventures income is from Dig
ital banks
in current year
\n
2
Loans held at FVTPL includes $40,537 mill
ion (2021: $61,282 m
ill
ion) of repurchase agreements
\n
3
Customer accounts includes $11,706 mill
ion (2021: $9,291 m
ill
ion) of FVTPL and $46,846 m
ill
ion (2021: $58,594 m
ill
ion) of repurchase agreements
\n
4
Goodwill and other impa
irment
include $308 mill
ion
impa
irment charge relat
ing to the Group\u2019s investment in its associate China Bohai Bank (Bohai). The 2021
\n
comparative has been restated for consistency to reclassify the $300 mill
ion
impa
irment from Other
impa
irment w
ith
in Underly
ing pro\ufb01t to Goodwill and Other
\n
impa
irment
353
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
2. Segmental informat
ion
continued
\n
Operating income by client segment
\n
2022
\n
Corporate,
\n
Commercial &
\n
Institut
ional
\n
Banking
\n
$mill
ion
\n
Consumer,
\n
Private &
\n
Business
\n
Banking
\n
$mill
ion
\n
Ventures
\n
$mill
ion
\n
Central &
\n
other items
\n
(segment)
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Underlying operating income
10,045
6,016
29
165
16,255
\n
Restructuring
41
\u2013
\u2013
2
43
\n
Other items
\u2013
\u2013
\u2013
20
20
\n
Statutory operating income
10,086
6,016
29
187
16,318
\n
2021 (Restated)\u00b9
\n
Corporate,
\n
Commercial &
\n
Institut
ional
\n
Banking
\n
$mill
ion
\n
Consumer,
\n
Private &
\n
Business
\n
Banking
\n
$mill
ion
\n
Ventures
\n
$mill
ion
\n
Central &
\n
other items
\n
(segment)
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Underlying operating income
8,407
5,735
1
570
14,713
\n
Restructuring
9
\u2013
\u2013
(41)
(32)
\n
Other items
\u2013
\u2013
20
\u2013
20
\n
Statutory operating income
8,416
5,735
21
529
14,701
\n
1
Following the increased strategic importance and reporting of Ventures to management, this has been established as a separate operating segment in 2022
\n
Prior periods have been restated
\n
Underlying performance by region
\n
2022
\n
Asia
\n
$mill
ion
\n
Africa &
\n
Middle East
\n
$mill
ion
\n
Europe &
\n
Americas
\n
$mill
ion
\n
Central &
\n
other items
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Operating income
11,213
2,606
2,353
83
16,255
\n
Operating expenses
(6,867)
(1,669)
(1,564)
(643)
(10,743)
\n
Operating pro\ufb01t/(loss) before impa
irment losses
\n
and\u00a0taxation
4,346
937
789
(560)
5,512
\n
Credit impa
irment
(790)
(120)
77
(5)
(838)
\n
Other impa
irment
(47)
2
(3)
(31)
(79)
\n
Pro\ufb01t from associates and jo
int ventures
179
\u2013
\u2013
(12)
167
\n
Underlying pro\ufb01t/(loss) before taxation
3,688
819
863
(608)
4,762
\n
Restructuring
(75)
(29)
(23)
(47)
(174)
\n
Goodwill and other impa
irment
\n
1
\n
(308)
\u2013
\u2013
(14)
(322)
\n
Other items
20
\u2013
\u2013
\u2013
20
\n
Statutory pro\ufb01t/(loss) before taxation
3,325
790
840
(669)
4,286
\n
Total assets
488,399
53,086
268,960
9,477
819,922
\n
Of which: loans and advances to customers
270,892
23,857
62,981
\u2013
357,730
\n
loans and advances to customers
257,171
21,570
31,906
\u2013
310,647
\n
loans held at fair value through pro\ufb01t or loss
\n
(FVTPL)
\n
2
\n
13,721
2,287
31,075
\u2013
47,083
\n
Total liab
il
it
ies
441,349
40,902
219,701
67,954
769,906
\n
Of which: customer accounts
\n
3
\n
346,832
31,860
141,537
\u2013
520,229
354
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
2. Segmental informat
ion
continued
\n
2021
\n
Asia
\n
$mill
ion
\n
Africa &
\n
Middle East
\n
$mill
ion
\n
Europe &
\n
Americas
\n
$mill
ion
\n
Central &
\n
other items
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Operating income
10,448
2,446
2,003
(184)
14,713
\n
Operating expenses
(6,773)
(1,623)
(1,485)
(494)
(10,375)
\n
Operating pro\ufb01t/(loss) before impa
irment losses
\n
and\u00a0taxation
3,675
823
518
(678)
4,338
\n
Credit impa
irment
(434)
34
144
(7)
(263)
\n
Other impa
irment
\u2013
(1)
(18)
(36)
(55)
\n
Pro\ufb01t from associates and jo
int ventures
175
\u2013
\u2013
1
176
\n
Underlying pro\ufb01t/(loss) before taxation
3,416
856
644
(720)
4,196
\n
Restructuring
(286)
(25)
(69)
(127)
(507)
\n
Goodwill and other impa
irment
\n
1
\n
(300)
\u2013
\u2013
\u2013
(300)
\n
Other items
\u2013
\u2013
\u2013
(42)
(42)
\n
Statutory pro\ufb01t/(loss) before taxation
2,830
831
575
(889)
3,347
\n
Total assets
483,950
57,405
277,008
9,455
827,818
\n
Of which: loans and advances to customers
265,744
27,600
76,359
\u2013
369,703
\n
loans and advances to customers
243,861
25,177
29,430
\u2013
298,468
\n
loans held at fair value through pro\ufb01t or loss
\n
(FVTPL)
\n
2
\n
21,883
2,423
46,929
\u2013
71,235
\n
Total liab
il
it
ies
434,200
41,260
233,915
65,807
775,182
\n
Of which: customer accounts
\n
3
\n
355,792
34,701
151,962
\u2013
542,455
\n
1
Goodwill and other impa
irment
include $308 mill
ion
impa
irment charge relat
ing to the Group\u2019s investment in its associate China Bohai Bank (Bohai). The 2021
\n
comparative has been restated for consistency to reclassify the $300 mill
ion
impa
irment from Other
impa
irment w
ith
in Underly
ing pro\ufb01t to Goodwill and Other
\n
impa
irment.
\n
2
Loans held at FVTPL includes $40,537 mill
ion (FY\u201921 $61,282 m
ill
ion) of repurchase agreements
\n
3
Customer accounts includes $11,706 mill
ion (FY\u201921 $9,291 m
ill
ion) of FVTPL and $46,846 m
ill
ion (FY\u201921 $58,594 m
ill
ion) of repurchase agreements
\n
Operating income by region
\n
2022
\n
Asia
\n
$mill
ion
\n
Africa &
\n
Middle East
\n
$mill
ion
\n
Europe &
\n
Americas
\n
$mill
ion
\n
Central &
\n
other items
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Underlying operating income
11,213
2,606
2,353
83
16,255
\n
Restructuring
23
2
(1)
19
43
\n
Other items
20
\u2013
\u2013
\u2013
20
\n
Statutory operating income
11,256
2,608
2,352
102
16,318
\n
2021
\n
Asia
\n
$mill
ion
\n
Africa &
\n
Middle East
\n
$mill
ion
\n
Europe &
\n
Americas
\n
$mill
ion
\n
Central &
\n
other items
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Underlying operating income
10,448
2,446
2,003
(184)
14,713
\n
Restructuring
30
3
(30)
(35)
(32)
\n
Other items
\u2013
\u2013
\u2013
20
20
\n
Statutory operating income
10,478
2,449
1,973
(199)
14,701
\n\n
355
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
2. Segmental informat
ion
continued
\n
Addit
ional segmental
informat
ion (statutory)
\n
2022
\n
Corporate,
\n
Commercial &
\n
Institut
ional
\n
Banking
\n
$mill
ion
\n
Consumer,
\n
Private &
\n
Business
\n
Banking
\n
$mill
ion
\n
Ventures
\n
$mill
ion
\n
Central &
\n
other items
\n
(segment)
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Net interest income
3,616
3,969
18
(10)
7,593
\n
Net fees and commiss
ion
income
1,706
1,524
8
(125)
3,113
\n
Net trading and other income
4,764
523
3
322
5,612
\n
Operating income
10,086
6,016
29
187
16,318
\n
2021 (Restated)\u00b9
\n
Corporate,
\n
Commercial &
\n
Institut
ional
\n
Banking
\n
$mill
ion
\n
Consumer,
\n
Private &
\n
Business
\n
Banking
\n
$mill
ion
\n
Ventures
\n
$mill
ion
\n
Central &
\n
other items
\n
(segment)
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Net interest income
3,267
3,216
(2)
317
6,798
\n
Net fees and commiss
ion
income
1,784
2,003
1
(66)
3,722
\n
Net trading and other income
3,365
516
22
278
4,181
\n
Operating income
8,416
5,735
21
529
14,701
\n
1
Following the increased strategic importance and reporting of Ventures to management, this has been established as a separate operating segment in 2022
\n
Prior periods have been restated
\n
Addit
ional segmental
informat
ion (statutory)
continued
\n
2022
\n
Asia
\n
$mill
ion
\n
Africa &
\n
Middle East
\n
$mill
ion
\n
Europe &
\n
Americas
\n
$mill
ion
\n
Central &
\n
other items
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Net interest income
5,747
1,299
260
287
7,593
\n
Net fees and commiss
ion
income
2,224
526
526
(163)
3,113
\n
Net trading and other income
3,285
783
1,566
(22)
5,612
\n
Operating income
11,256
2,608
2,352
102
16,318
\n
2021
\n
Asia
\n
$mill
ion
\n
Africa &
\n
Middle East
\n
$mill
ion
\n
Europe &
\n
Americas
\n
$mill
ion
\n
Central &
\n
other items
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Net interest income
5,069
1,190
490
49
6,798
\n
Net fees and commiss
ion
income
2,764
614
547
(203)
3,722
\n
Net trading and other income
2,645
645
936
(45)
4,181
\n
Operating income
10,478
2,449
1,973
(199)
14,701
\n
2022
\n
Hong
\n
Kong
\n
$mill
ion
\n
Korea
\n
$mill
ion
\n
China
\n
$mill
ion
\n
Taiwan
\n
$mill
ion
\n
Singapore
\n
$mill
ion
\n
India
\n
$mill
ion
\n
Indonesia
\n
$mill
ion
\n
UAE
\n
$mill
ion
\n
UK
\n
$mill
ion
\n
US
\n
$mill
ion
\n
Net interest income
1,843
751
561
171
982
611
89
281
(189)
330
\n
Net fees and commiss
ion
income
658
157
143
162
553
239
52
81
44
393
\n
Net trading and other income
1,235
237
450
141
380
377
73
268
1,167
306
\n
Operating income
3,736
1,145
1,154
474
1,915
1,227
214
630
1,022
1,029
\n
2021
\n
Hong
\n
Kong
\n
$mill
ion
\n
Korea
\n
$mill
ion
\n
China
\n
$mill
ion
\n
Taiwan
\n
$mill
ion
\n
Singapore
\n
$mill
ion
\n
India
\n
$mill
ion
\n
Indonesia
\n
$mill
ion
\n
UAE
\n
$mill
ion
\n
UK
\n
$mill
ion
\n
US
\n
$mill
ion
\n
Net interest income
1,422
724
589
178
742
706
90
229
220
198
\n
Net fees and commiss
ion
income
902
213
192
218
664
240
54
101
21
414
\n
Net trading and other income
1,148
174
306
98
192
336
69
216
624
206
\n
Operating income
3,472
1,111
1,087
494
1,598
1,282
213
546
865
818", "dimensions": { "concept": "ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f76818": { "value": "Basis of preparation \n
The analysis re\ufb02ects how the client segments and geographic
\n
regions are managed internally. This is described as the
\n
Management View (on an underlying basis) and is princ
ipally
\n
the location from which a client relationsh
ip
is managed,
\n
which may differ from where it is \ufb01nanc
ially booked and may
\n
be shared between businesses and/or regions. In certain
\n
instances this approach is not appropriate and a Financ
ial
\n
View is disclosed, that is, the location in which the transaction
\n
or balance was booked. Typically, the Financ
ial V
iew is used in
\n
areas such as the Market and Liqu
id
ity Risk reviews where
\n
actual booking location is more important for an assessment.
\n
Segmental informat
ion
is therefore on a Management View
\nunless otherwise stated.", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f78383": { "value": "3. Net interest income \n
Accounting policy
\n
Interest income for \ufb01nanc
ial assets held at e
ither fair value through other comprehensive income or amortised cost, and
\n
interest expense on all \ufb01nanc
ial l
iab
il
it
ies held at amort
ised cost is recognised in pro\ufb01t or loss using the effective interest
\n
method.
\n
The effective interest method is a method of calculating the amortised cost of a \ufb01nanc
ial asset or a \ufb01nancial l
iab
il
ity and of
\n
allocating the interest income or interest expense over the relevant period. The effective interest rate is the rate that
\n
discounts estimated future cash payments or receipts through the expected life of the \ufb01nanc
ial
instrument or, when
\n
appropriate, a shorter period, to the net carrying amount of the \ufb01nanc
ial asset or \ufb01nancial l
iab
il
ity. When calculating the
\n
effective interest rate, the Group estimates cash \ufb02ows consider
ing all contractual terms of the \ufb01nancial
instrument (for
\n
example prepayment options) but does not consider future credit losses. The calculation includes all fees paid or received
\n
between parties to the contract that are an integral part of the effective interest rate, transaction costs and all other
\n
premiums or discounts. For \ufb02oating-rate \ufb01nanc
ial
instruments, period
ic re-est
imat
ion of cash \ufb02ows that re\ufb02ect the
\n
movements in the market rates of interest alters the effective interest rate. Where the estimates of cash \ufb02ows have been
\n
revised, the carrying amount of the \ufb01nanc
ial asset or l
iab
il
ity is adjusted to re\ufb02ect the actual and revised cash \ufb02ows,
\n
discounted at the instruments orig
inal effect
ive interest rate. The adjustment is recognised as interest income or expense in
\n
the period in which the revis
ion
is made as long as the change in estimates is not due to credit issues.
\n
Interest income for \ufb01nanc
ial assets that are e
ither held at fair value through other comprehensive income or amortised cost
\n
that have become credit-impa
ired subsequent to
in
it
ial recognit
ion (stage 3) and have had amounts wr
itten off, is
\n
recognised using the credit adjusted effective interest rate. This rate is calculated in the same manner as the effective
\n
interest rate except that expected credit losses are included in the expected cash \ufb02ows. Interest income is therefore
\n
recognised on the amortised cost of the \ufb01nanc
ial asset
includ
ing expected cred
it losses. Should the credit risk on a stage 3
\n
\ufb01nancial asset
improve such that the \ufb01nanc
ial asset
is no longer considered credit-impa
ired,
interest income recognit
ion
\n
reverts to a computation based on the rehabil
itated gross carry
ing value of the \ufb01nanc
ial asset.
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Balances at central banks
765
92
\n
Loans and advances to banks
853
490
\n
Loans and advances to customers
10,032
7,347
\n
Debt securit
ies
2,836
1,787
\n
Other elig
ible b
ills
630
303
\n
Accrued on impa
ired assets (d
iscount unwind)
\n
1
\n
136
227
\n
Interest income
15,252
10,246
\n
Of which: \ufb01nanc
ial
instruments held at fair value through other comprehensive income
2,167
1,541
\n
Deposits by banks
433
136
\n
Customer accounts
5,443
2,196
\n
Debt securit
ies
in issue
1,169
566
\n
Subordinated liab
il
it
ies and other borrowed funds
570
497
\n
Interest expense on IFRS 16 lease liab
il
it
ies
44
53
\n
Interest expense
7,659
3,448
\n
Net interest income
7,593
6,798
\n
1.
Includes a $117 mill
ion (2021: $171 m
ill
ion) adjustment
in relation to interest earned on impa
ired assets as requ
ired by IFRS9 Financ
ial Instruments Recogn
it
ion and
\nMeasurement", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestExpenseExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f78384": { "value": "3. Net interest income \n
Accounting policy
\n
Interest income for \ufb01nanc
ial assets held at e
ither fair value through other comprehensive income or amortised cost, and
\n
interest expense on all \ufb01nanc
ial l
iab
il
it
ies held at amort
ised cost is recognised in pro\ufb01t or loss using the effective interest
\n
method.
\n
The effective interest method is a method of calculating the amortised cost of a \ufb01nanc
ial asset or a \ufb01nancial l
iab
il
ity and of
\n
allocating the interest income or interest expense over the relevant period. The effective interest rate is the rate that
\n
discounts estimated future cash payments or receipts through the expected life of the \ufb01nanc
ial
instrument or, when
\n
appropriate, a shorter period, to the net carrying amount of the \ufb01nanc
ial asset or \ufb01nancial l
iab
il
ity. When calculating the
\n
effective interest rate, the Group estimates cash \ufb02ows consider
ing all contractual terms of the \ufb01nancial
instrument (for
\n
example prepayment options) but does not consider future credit losses. The calculation includes all fees paid or received
\n
between parties to the contract that are an integral part of the effective interest rate, transaction costs and all other
\n
premiums or discounts. For \ufb02oating-rate \ufb01nanc
ial
instruments, period
ic re-est
imat
ion of cash \ufb02ows that re\ufb02ect the
\n
movements in the market rates of interest alters the effective interest rate. Where the estimates of cash \ufb02ows have been
\n
revised, the carrying amount of the \ufb01nanc
ial asset or l
iab
il
ity is adjusted to re\ufb02ect the actual and revised cash \ufb02ows,
\n
discounted at the instruments orig
inal effect
ive interest rate. The adjustment is recognised as interest income or expense in
\n
the period in which the revis
ion
is made as long as the change in estimates is not due to credit issues.
\n
Interest income for \ufb01nanc
ial assets that are e
ither held at fair value through other comprehensive income or amortised cost
\n
that have become credit-impa
ired subsequent to
in
it
ial recognit
ion (stage 3) and have had amounts wr
itten off, is
\n
recognised using the credit adjusted effective interest rate. This rate is calculated in the same manner as the effective
\n
interest rate except that expected credit losses are included in the expected cash \ufb02ows. Interest income is therefore
\n
recognised on the amortised cost of the \ufb01nanc
ial asset
includ
ing expected cred
it losses. Should the credit risk on a stage 3
\n
\ufb01nancial asset
improve such that the \ufb01nanc
ial asset
is no longer considered credit-impa
ired,
interest income recognit
ion
\n
reverts to a computation based on the rehabil
itated gross carry
ing value of the \ufb01nanc
ial asset.
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Balances at central banks
765
92
\n
Loans and advances to banks
853
490
\n
Loans and advances to customers
10,032
7,347
\n
Debt securit
ies
2,836
1,787
\n
Other elig
ible b
ills
630
303
\n
Accrued on impa
ired assets (d
iscount unwind)
\n
1
\n
136
227
\n
Interest income
15,252
10,246
\n
Of which: \ufb01nanc
ial
instruments held at fair value through other comprehensive income
2,167
1,541
\n
Deposits by banks
433
136
\n
Customer accounts
5,443
2,196
\n
Debt securit
ies
in issue
1,169
566
\n
Subordinated liab
il
it
ies and other borrowed funds
570
497
\n
Interest expense on IFRS 16 lease liab
il
it
ies
44
53
\n
Interest expense
7,659
3,448
\n
Net interest income
7,593
6,798
\n
1.
Includes a $117 mill
ion (2021: $171 m
ill
ion) adjustment
in relation to interest earned on impa
ired assets as requ
ired by IFRS9 Financ
ial Instruments Recogn
it
ion and
\nMeasurement", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f78385": { "value": "3. Net interest income \n
Accounting policy
\n
Interest income for \ufb01nanc
ial assets held at e
ither fair value through other comprehensive income or amortised cost, and
\n
interest expense on all \ufb01nanc
ial l
iab
il
it
ies held at amort
ised cost is recognised in pro\ufb01t or loss using the effective interest
\n
method.
\n
The effective interest method is a method of calculating the amortised cost of a \ufb01nanc
ial asset or a \ufb01nancial l
iab
il
ity and of
\n
allocating the interest income or interest expense over the relevant period. The effective interest rate is the rate that
\n
discounts estimated future cash payments or receipts through the expected life of the \ufb01nanc
ial
instrument or, when
\n
appropriate, a shorter period, to the net carrying amount of the \ufb01nanc
ial asset or \ufb01nancial l
iab
il
ity. When calculating the
\n
effective interest rate, the Group estimates cash \ufb02ows consider
ing all contractual terms of the \ufb01nancial
instrument (for
\n
example prepayment options) but does not consider future credit losses. The calculation includes all fees paid or received
\n
between parties to the contract that are an integral part of the effective interest rate, transaction costs and all other
\n
premiums or discounts. For \ufb02oating-rate \ufb01nanc
ial
instruments, period
ic re-est
imat
ion of cash \ufb02ows that re\ufb02ect the
\n
movements in the market rates of interest alters the effective interest rate. Where the estimates of cash \ufb02ows have been
\n
revised, the carrying amount of the \ufb01nanc
ial asset or l
iab
il
ity is adjusted to re\ufb02ect the actual and revised cash \ufb02ows,
\n
discounted at the instruments orig
inal effect
ive interest rate. The adjustment is recognised as interest income or expense in
\n
the period in which the revis
ion
is made as long as the change in estimates is not due to credit issues.
\n
Interest income for \ufb01nanc
ial assets that are e
ither held at fair value through other comprehensive income or amortised cost
\n
that have become credit-impa
ired subsequent to
in
it
ial recognit
ion (stage 3) and have had amounts wr
itten off, is
\n
recognised using the credit adjusted effective interest rate. This rate is calculated in the same manner as the effective
\n
interest rate except that expected credit losses are included in the expected cash \ufb02ows. Interest income is therefore
\n
recognised on the amortised cost of the \ufb01nanc
ial asset
includ
ing expected cred
it losses. Should the credit risk on a stage 3
\n
\ufb01nancial asset
improve such that the \ufb01nanc
ial asset
is no longer considered credit-impa
ired,
interest income recognit
ion
\n
reverts to a computation based on the rehabil
itated gross carry
ing value of the \ufb01nanc
ial asset.
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Balances at central banks
765
92
\n
Loans and advances to banks
853
490
\n
Loans and advances to customers
10,032
7,347
\n
Debt securit
ies
2,836
1,787
\n
Other elig
ible b
ills
630
303
\n
Accrued on impa
ired assets (d
iscount unwind)
\n
1
\n
136
227
\n
Interest income
15,252
10,246
\n
Of which: \ufb01nanc
ial
instruments held at fair value through other comprehensive income
2,167
1,541
\n
Deposits by banks
433
136
\n
Customer accounts
5,443
2,196
\n
Debt securit
ies
in issue
1,169
566
\n
Subordinated liab
il
it
ies and other borrowed funds
570
497
\n
Interest expense on IFRS 16 lease liab
il
it
ies
44
53
\n
Interest expense
7,659
3,448
\n
Net interest income
7,593
6,798
\n
1.
Includes a $117 mill
ion (2021: $171 m
ill
ion) adjustment
in relation to interest earned on impa
ired assets as requ
ired by IFRS9 Financ
ial Instruments Recogn
it
ion and
\nMeasurement ", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExpenseExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f78391": { "value": "Accounting policy \n
Interest income for \ufb01nanc
ial assets held at e
ither fair value through other comprehensive income or amortised cost, and
\n
interest expense on all \ufb01nanc
ial l
iab
il
it
ies held at amort
ised cost is recognised in pro\ufb01t or loss using the effective interest
\n
method.
\n
The effective interest method is a method of calculating the amortised cost of a \ufb01nanc
ial asset or a \ufb01nancial l
iab
il
ity and of
\n
allocating the interest income or interest expense over the relevant period. The effective interest rate is the rate that
\n
discounts estimated future cash payments or receipts through the expected life of the \ufb01nanc
ial
instrument or, when
\n
appropriate, a shorter period, to the net carrying amount of the \ufb01nanc
ial asset or \ufb01nancial l
iab
il
ity. When calculating the
\n
effective interest rate, the Group estimates cash \ufb02ows consider
ing all contractual terms of the \ufb01nancial
instrument (for
\n
example prepayment options) but does not consider future credit losses. The calculation includes all fees paid or received
\n
between parties to the contract that are an integral part of the effective interest rate, transaction costs and all other
\n
premiums or discounts. For \ufb02oating-rate \ufb01nanc
ial
instruments, period
ic re-est
imat
ion of cash \ufb02ows that re\ufb02ect the
\n
movements in the market rates of interest alters the effective interest rate. Where the estimates of cash \ufb02ows have been
\n
revised, the carrying amount of the \ufb01nanc
ial asset or l
iab
il
ity is adjusted to re\ufb02ect the actual and revised cash \ufb02ows,
\n
discounted at the instruments orig
inal effect
ive interest rate. The adjustment is recognised as interest income or expense in
\n
the period in which the revis
ion
is made as long as the change in estimates is not due to credit issues.
\n
Interest income for \ufb01nanc
ial assets that are e
ither held at fair value through other comprehensive income or amortised cost
\n
that have become credit-impa
ired subsequent to
in
it
ial recognit
ion (stage 3) and have had amounts wr
itten off, is
\n
recognised using the credit adjusted effective interest rate. This rate is calculated in the same manner as the effective
\n
interest rate except that expected credit losses are included in the expected cash \ufb02ows. Interest income is therefore
\n
recognised on the amortised cost of the \ufb01nanc
ial asset
includ
ing expected cred
it losses. Should the credit risk on a stage 3
\n
\ufb01nancial asset
improve such that the \ufb01nanc
ial asset
is no longer considered credit-impa
ired,
interest income recognit
ion
\n
reverts to a computation based on the rehabil
itated gross carry
ing value of the \ufb01nanc
ial asset.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInterestIncomeAndExpenseExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f78553": { "value": "4. Net fees and commiss
ion
\n
Accounting policy
\n
Fees and commiss
ions charged for serv
ices provided by the Group are recognised as revenue when the Group satisf
ies the
\n
performance obligat
ions to the customer. Serv
ices provided by the Group are either satisf
ied at po
int in time or over time.
\n
Fees and commiss
ion
income are measured based on the considerat
ion spec
if
ied
in the contract with the customer.
\n
The Group can act as trustee or in other \ufb01duc
iary capac
it
ies that result
in the holding or placing of assets on behalf of
\n
ind
iv
iduals, trusts, retirement bene\ufb01t plans and other inst
itut
ions. The assets and income aris
ing thereon are excluded from
\n
these \ufb01nancial statements, as they are not assets and
income of the Group.
357
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
4. Net fees and commiss
ion
continued
\n
The Group applies the following practical expedients:
\n
\u2022
informat
ion on amounts of transact
ion price allocated to unsatisf
ied (or part
ially unsatisf
ied) performance obl
igat
ions at the
\n
end of the reporting period is not disclosed as almost all fee-earning contracts have an expected duration of less than one
\n
year
\n
\u2022
promised considerat
ion
is not adjusted for the effects of a sign
i\ufb01cant \ufb01nancing component as the per
iod between the Group
\n
provid
ing a serv
ice and the customer paying for it is expected to be less than one year
\n
\u2022
incremental costs of obtain
ing a fee-earn
ing contract are recognised upfront in \u2018Fees and commiss
ion expense\u2019 rather than
\n
amortised, if the expected term of the contract is less than one year
\n
The determinat
ion of the serv
ices performed for the customer, the transaction price, and when the services are completed
\n
depends on the nature of the product with the customer. The main considerat
ions on
income recognit
ion by product are as
\n
follows:
\n
Transaction Banking
\n
The Group recognises fee income associated with transactional trade and cash management at the point in time the service is
\n
provided. The Group recognises income associated with trade contingent risk exposures (such as letters of credit and
\n
guarantees) over the period in which the service is provided.
\n
Payment of fees is usually received at the same time the service is provided. In some cases, letters of credit and guarantees
\n
issued by the Group have annual upfront premiums, which are amortised on a straight-line basis to fee income over the year.
\n
Financ
ial Markets
\n
The Group recognises fee income at the point in time the service is provided. Fee income is recognised for a sign
i\ufb01cant non-
\n
lending service when the transaction has been completed and the terms of the contract with the customer entitle the Group to
\n
the fee. This includes fees such as structuring and advisory fees. Fees are usually received shortly after the service is provided.
\n
Syndicat
ion fees are recogn
ised when the syndicat
ion
is complete, de\ufb01ned as achiev
ing the \ufb01nal approved hold pos
it
ion. Fees
\n
are generally received before completion of the syndicat
ion, or w
ith
in 12 months of the transact
ion date.
\n
Securit
ies serv
ices include custody services, fund accounting and admin
istrat
ion, and broker clearing. Fees are recognised over
\n
the period the custody or fund management services are provided, or as and when broker services are requested.
\n
Wealth Management
\n
Upfront considerat
ion on bancassurance agreements
is amortised straight-line over the contractual term. Commiss
ions for
\n
bancassurance activ
it
ies are recorded as they are earned through sales of third-party insurance products to customers. These
\n
commiss
ions are rece
ived with
in a short t
ime frame of the commiss
ion be
ing earned. Target-linked fees are accrued based on
\n
percentage of the target achieved, provided it is assessed as highly probable that the target will be met. Cash payment is
\n
received at a contractually specif
ied date after ach
ievement of a target has been con\ufb01rmed.
\n
Upfront and trail
ing comm
iss
ions for managed
investment placements are recorded as they are con\ufb01rmed. Income from these
\n
activ
it
ies is relatively even throughout the period, and cash is usually received with
in a short t
ime frame after the commiss
ion
is
\n
earned.
\n
Retail Products
\n
The Group recognises most income at the point in time the Group is entitled to the fee, since most services are provided at the
\n
time of the customer\u2019s request.
\n
Credit card annual fees are recognised over the service period. In most of our retail markets there are circumstances under
\n
which fees are waived, income recognit
ion
is adjusted to re\ufb02ect customer\u2019s intent to pay the annual fee. The Group defers the
\n
fair value of reward points on its credit card reward programmes, and recognises income and costs associated with ful\ufb01ll
ing the
\n
reward at the time of redemption.
358
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
4. Net fees and commiss
ion
continued
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Fees and commiss
ions
income
3,972
4,458
\n
Of which:
\n
Financ
ial
instruments that are not fair valued through pro\ufb01t or loss
1,306
1,282
\n
Trust and other \ufb01duciary act
iv
it
ies
520
703
\n
Fees and commiss
ions expense
(859)
(736)
\n
Of which:
\n
Financ
ial
instruments that are not fair valued through pro\ufb01t or loss
(303)
(234)
\n
Trust and other \ufb01duciary act
iv
it
ies
(49)
(49)
\n
Net fees and commiss
ion
3,113
3,722
\n
2022
\n
Corporate,
\n
Commercial &
\n
Institut
ional
\n
Banking
\n
$mill
ion
\n
Consumer,
\n
Private &
\n
Business
\n
Banking
\n
$mill
ion
\n
Ventures
\n
$mill
ion
\n
Central &
\n
other Items
\n
(Segment)
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Transaction Banking
1,143
32
\u2013
\u2013
1,175
\n
Trade
594
25
\u2013
\u2013
619
\n
Cash Management
549
7
\u2013
\u2013
556
\n
Financ
ial Markets
958
\u2013
\u2013
\u2013
958
\n
Lending & Portfolio Management
124
5
\u2013
\u2013
129
\n
Princ
ipal F
inance
\u2013
\u2013
\u2013
\u2013
\u2013
\n
Wealth Management
\u2013
1,127
\u2013
\u2013
1,127
\n
Retail Products
\u2013
582
12
\u2013
594
\n
Treasury
\u2013
\u2013
\u2013
(5)
(5)
\n
Others
\u2013
(2)
8
(11)
(5)
\n
Fees and commiss
ion
income
2,225
1,744
20
(16)
3,972
\n
Fees and commiss
ion expense
(519)
(220)
(12)
(109)
(859)
\n
Net fees and commiss
ion
1,706
1,524
8
(125)
3,113
\n
2021 (Restated)\u00b9
\n
,3
\n
Corporate,
\n
Commercial &
\n
Institut
ional
\n
Banking
\n
1
\n
$mill
ion
\n
Consumer,
\n
Private &
\n
Business
\n
Banking
\n
1
\n
$mill
ion
\n
Ventures
\n
$mill
ion
\n
Central &
\n
other Items
\n
(Segment)
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Transaction Banking
1,003
39
\u2013
\u2013
1,042
\n
Trade
572
27
\u2013
\u2013
599
\n
Cash Management
431
12
\u2013
\u2013
443
\n
Financ
ial Markets
956
\u2013
\u2013
\u2013
956
\n
Lending & Portfolio Management
146
1
\u2013
\u2013
147
\n
Princ
ipal F
inance
(5)
\u2013
\u2013
\u2013
(5)
\n
Wealth Management
1
1,585
\u2013
\u2013
1,586
\n
Retail Products
\u2013
614
3
\u2013
617
\n
Treasury
\u2013
\u2013
\u2013
2
2
\n
Others
\u2013
33
34
46
113
\n
Fees and commiss
ion
income
\n
2
\n
2,101
2,272
37
48
4,458
\n
Fees and commiss
ion expense
\n
2
\n
(317)
(269)
(36)
(114)
(736)
\n
Net fees and commiss
ion
\n
2
\n
1,784
2,003
1
(66)
3,722
\n
1
Following the increased strategic importance and reporting of Ventures to management, this has been established as a separate operating segment in 2022
\n
Prior periods have been restated
\n
2
Fees & commiss
ion by segments was presented on a net bas
is in 2021. The presentation has been changed to gross basis for Fees & commiss
ion
income and
\n
expense. Prior period has been restated
\n
3
Following a reorganisat
ion of certa
in clients, there has been a reclassif
icat
ion of balances across products
\n
$59 mill
ion of amort
isat
ion of cap
ital
ised acqu
is
it
ion costs on credit cards have been recorded as fee and commiss
ion expense
\n
in 2022 as against interest income until last year. The corresponding impact for 2021 was $60 mill
ion, but the comparat
ives have
\n
not been restated based on material
ity.
359
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
4. Net fees and commiss
ion
continued
\n
Upfront bancassurance considerat
ion amounts are amort
ised on a straight-line basis over the contractual period to which the
\n
considerat
ion relates. Deferred
income on the balance sheet in respect of these activ
it
ies is $549 mill
ion (2021: $634 m
ill
ion).
\n
The income will be earned evenly over the next 6.5 years (2021: 7.5 years). For the twelve months ended 31 December 2022,
\n
$84\u00a0mill
ion of fee
income was released from deferred income (2021: $84 mill
ion).
\n
The Group has recognised revenue of $160 mill
ion from one of
its bancassurance contracts based on con\ufb01rmat
ion from the
\ncounterparty that the annual performance bonus will be paid to the Group for the year ended 31 December 2022. ", "dimensions": { "concept": "ifrs-full:DisclosureOfFeeAndCommissionIncomeExpenseExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f78558": { "value": "Accounting policy \n
Fees and commiss
ions charged for serv
ices provided by the Group are recognised as revenue when the Group satisf
ies the
\n
performance obligat
ions to the customer. Serv
ices provided by the Group are either satisf
ied at po
int in time or over time.
\n
Fees and commiss
ion
income are measured based on the considerat
ion spec
if
ied
in the contract with the customer.
\n
The Group can act as trustee or in other \ufb01duc
iary capac
it
ies that result
in the holding or placing of assets on behalf of
\n
ind
iv
iduals, trusts, retirement bene\ufb01t plans and other inst
itut
ions. The assets and income aris
ing thereon are excluded from
\n
these \ufb01nancial statements, as they are not assets and
income of the Group.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFeeAndCommissionIncomeAndExpenseExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f79071": { "value": "5. Net trading income \n
Accounting policy
\n
Gains and losses aris
ing from changes
in the fair value of \ufb01nanc
ial
instruments held at fair value through pro\ufb01t or loss are
\n
recorded in net trading income in the period in which they arise. This includes contractual interest receivable or payable.
\n
Income is recognised from the sale and purchase of trading posit
ions, marg
ins on market making and customer business and
\n
fair value changes.
\n
When the in
it
ial fair value of a \ufb01nanc
ial
instrument held at fair value through pro\ufb01t or loss relies on unobservable inputs, the
\n
difference between the in
it
ial valuation and the transaction price is amortised to net trading income as the inputs become
\n
observable or over the life of the instrument, whichever is shorter. Any unamortised \u2018day one\u2019 gain is released to net trading
\n
income if the transaction is terminated.
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Net trading income
5,310
3,431
\n
Sign
i\ufb01cant
items with
in net trad
ing income include:
\n
Gains on instruments held for trading
\n
1
\n
4,942
3,381
\n
Gains on \ufb01nanc
ial assets mandator
ily at fair value through pro\ufb01t or loss
1,087
181
\n
Losses on \ufb01nancial assets des
ignated at fair value through pro\ufb01t or loss
(6)
(8)
\n
Losses on \ufb01nancial l
iab
il
it
ies des
ignated at fair value through pro\ufb01t or loss
(677)
(133)
\n
1
Includes $365 mill
ion ga
in (2021: $339 mill
ion ga
in) from the translation of foreign currency monetary assets and liab
il
it
ies", "dimensions": { "concept": "ifrs-full:DisclosureOfTradingIncomeExpenseExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f79075": { "value": "Accounting policy \n
Gains and losses aris
ing from changes
in the fair value of \ufb01nanc
ial
instruments held at fair value through pro\ufb01t or loss are
\n
recorded in net trading income in the period in which they arise. This includes contractual interest receivable or payable.
\n
Income is recognised from the sale and purchase of trading posit
ions, marg
ins on market making and customer business and
\n
fair value changes.
\n
When the in
it
ial fair value of a \ufb01nanc
ial
instrument held at fair value through pro\ufb01t or loss relies on unobservable inputs, the
\n
difference between the in
it
ial valuation and the transaction price is amortised to net trading income as the inputs become
\n
observable or over the life of the instrument, whichever is shorter. Any unamortised \u2018day one\u2019 gain is released to net trading
\nincome if the transaction is terminated.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradingIncomeAndExpenseExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f79144": { "value": "6. Other operating income \n
Accounting policy
\n
Operating lease income is recognised on a straight-line basis over the period of the lease unless another systematic basis is
\n
more appropriate.
\n
Div
idends on equ
ity instruments are recognised when the Group\u2019s right to receive payment is established.
\n
On disposal of fair value through other comprehensive income debt instruments, the cumulative gain or loss recognised in
\n
other comprehensive income is recycled to the pro\ufb01t or loss in other operating income.
\n
When the Group loses control of the subsid
iary or d
isposal group, the difference between the considerat
ion rece
ived and the
\n
carrying amount of the subsid
iary or d
isposal group is recognised as a gain or loss on sale of the business.
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Other operating income includes:
\n
Rental income from operating lease assets
421
463
\n
Net (loss)/gain on disposal of fair value through other comprehensive income debt instruments
(207)
157
\n
Net gain on amortised cost \ufb01nanc
ial assets
17
22
\n
Net (loss)/gain on sale of businesses
(1)
20
\n
Div
idend
income
14
14
\n
Gain on sale of aircrafts
21
23
\n
Other
37
51
\n
Other operating income
302
750
360
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
7. Operating expenses
\n
Accounting policy
\n
Short-term employee bene\ufb01ts: salaries and social security expenses are recognised over the period in which the employees
\n
provide the service. Variable compensation is included with
in share-based payments costs and wages and salar
ies. Further
\n
details are disclosed in the Directors\u2019 remuneration report (pages 184 to 205).
\n
Pension costs: contribut
ions to de\ufb01ned contr
ibut
ion pens
ion schemes are recognised in pro\ufb01t or loss when payable. For
\n
de\ufb01ned bene\ufb01t plans, net interest expense, service costs and expenses are recognised in the income statement. Further
\n
details are provided in Note 30.
\n
Share-based compensation: the Group operates equity-settled and cash-settled share-based payment compensation
\n
plans. The fair value of the employee services (measured by the fair value of the option granted) received in exchange for the
\n
grant of the options is recognised as an expense. Further details are provided in Note 31.
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Staff costs:
\n
Wages and salaries
6,014
5,834
\n
Social security costs
210
209
\n
Other pension costs (Note 30)
390
377
\n
Share-based payment costs (Note 31)
199
167
\n
Other staff costs
805
1,081
\n
7,618
7,668
\n
Other staff costs include redundancy expenses of $79 mill
ion (2021: $328 m
ill
ion). Further costs
in this category include train
ing,
\n
travel costs and other staff-related costs.
\n
The following table summarises the number of employees with
in the Group:
\n
2022
2021
\n
Business
Support services
Total
Business
Support services
Total
\n
At 31 December
30,619
52,647
83,266
30,614
51,343
81,957
\n
Average for the year
31,133
51,854
82,987
31,468
51,268
82,736
\n
The Company employed Nil staff at 31 December 2022 (2021: Nil) and it incurred costs of Nil (2021: $1\u00a0mill
ion).
\n
Details of directors\u2019 pay, bene\ufb01ts, pensions and bene\ufb01ts and interests in shares are disclosed in the Directors\u2019 remuneration
\n
report (pages 184 to 205).
\n
Transactions with directors, of\ufb01cers and other related parties are disclosed in Note 36.
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Premises and equipment expenses
401
387
\n
General admin
istrat
ive expenses:
\n
UK bank levy
102
100
\n
Provis
ion for regulatory matters
14
62
\n
Other general admin
istrat
ive expenses
1,592
1,526
\n
1,708
1,688
\n
Depreciat
ion and amort
izat
ion:
\n
Property, plant and equipment:
\n
Premises
326
370
\n
Equipment
123
129
\n
Operating lease assets
202
213
\n
651
712
\n
Intangibles:
\n
Software
531
461
\n
Acquired on business combinat
ions
4
8
\n
1,186
1,181
\n
Total operating expenses
10,913
10,924
\n
Operating expenses include research expenditure of $946 mill
ion (2021: $945 m
ill
ion), wh
ich was recognised as an expense in the
\n
year.
\n
The UK bank levy is applied on the chargeable equity and liab
il
it
ies on the balance sheet of UK operat
ions. Key exclusions from
\n
chargeable equity and liab
il
it
ies
include Tier 1 capital, insured or guaranteed retail deposits, repos secured on certain sovereign
\n
debt and liab
il
it
ies subject to nett
ing. The rates are 0.10 per cent for short-term liab
il
it
ies and 0.05 per cent for long-term
\n
liab
il
it
ies.", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExpenseExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f79145": { "value": "6. Other operating income \n
Accounting policy
\n
Operating lease income is recognised on a straight-line basis over the period of the lease unless another systematic basis is
\n
more appropriate.
\n
Div
idends on equ
ity instruments are recognised when the Group\u2019s right to receive payment is established.
\n
On disposal of fair value through other comprehensive income debt instruments, the cumulative gain or loss recognised in
\n
other comprehensive income is recycled to the pro\ufb01t or loss in other operating income.
\n
When the Group loses control of the subsid
iary or d
isposal group, the difference between the considerat
ion rece
ived and the
\n
carrying amount of the subsid
iary or d
isposal group is recognised as a gain or loss on sale of the business.
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Other operating income includes:
\n
Rental income from operating lease assets
421
463
\n
Net (loss)/gain on disposal of fair value through other comprehensive income debt instruments
(207)
157
\n
Net gain on amortised cost \ufb01nanc
ial assets
17
22
\n
Net (loss)/gain on sale of businesses
(1)
20
\n
Div
idend
income
14
14
\n
Gain on sale of aircrafts
21
23
\n
Other
37
51
\n
Other operating income
302
750", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f79150": { "value": "Accounting policy \n
Operating lease income is recognised on a straight-line basis over the period of the lease unless another systematic basis is
\n
more appropriate.
\n
Div
idends on equ
ity instruments are recognised when the Group\u2019s right to receive payment is established.
\n
On disposal of fair value through other comprehensive income debt instruments, the cumulative gain or loss recognised in
\n
other comprehensive income is recycled to the pro\ufb01t or loss in other operating income.
\n
When the Group loses control of the subsid
iary or d
isposal group, the difference between the considerat
ion rece
ived and the
\n
carrying amount of the subsid
iary or d
isposal group is recognised as a gain or loss on sale of the business.", "dimensions": { "concept": "stan:DescriptionOfAccountingPolicyForOtherOperatingIncomeExplanatoryPolicyTextBlock", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f79219": { "value": "7. Operating expenses \n
Accounting policy
\n
Short-term employee bene\ufb01ts: salaries and social security expenses are recognised over the period in which the employees
\n
provide the service. Variable compensation is included with
in share-based payments costs and wages and salar
ies. Further
\n
details are disclosed in the Directors\u2019 remuneration report (pages 184 to 205).
\n
Pension costs: contribut
ions to de\ufb01ned contr
ibut
ion pens
ion schemes are recognised in pro\ufb01t or loss when payable. For
\n
de\ufb01ned bene\ufb01t plans, net interest expense, service costs and expenses are recognised in the income statement. Further
\n
details are provided in Note 30.
\n
Share-based compensation: the Group operates equity-settled and cash-settled share-based payment compensation
\n
plans. The fair value of the employee services (measured by the fair value of the option granted) received in exchange for the
\n
grant of the options is recognised as an expense. Further details are provided in Note 31.
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Staff costs:
\n
Wages and salaries
6,014
5,834
\n
Social security costs
210
209
\n
Other pension costs (Note 30)
390
377
\n
Share-based payment costs (Note 31)
199
167
\n
Other staff costs
805
1,081
\n
7,618
7,668
\n
Other staff costs include redundancy expenses of $79 mill
ion (2021: $328 m
ill
ion). Further costs
in this category include train
ing,
\n
travel costs and other staff-related costs.
\n
The following table summarises the number of employees with
in the Group:
\n
2022
2021
\n
Business
Support services
Total
Business
Support services
Total
\n
At 31 December
30,619
52,647
83,266
30,614
51,343
81,957
\n
Average for the year
31,133
51,854
82,987
31,468
51,268
82,736
\n
The Company employed Nil staff at 31 December 2022 (2021: Nil) and it incurred costs of Nil (2021: $1\u00a0mill
ion).
\n
Details of directors\u2019 pay, bene\ufb01ts, pensions and bene\ufb01ts and interests in shares are disclosed in the Directors\u2019 remuneration
\n
report (pages 184 to 205).
\n
Transactions with directors, of\ufb01cers and other related parties are disclosed in Note 36.
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Premises and equipment expenses
401
387
\n
General admin
istrat
ive expenses:
\n
UK bank levy
102
100
\n
Provis
ion for regulatory matters
14
62
\n
Other general admin
istrat
ive expenses
1,592
1,526
\n
1,708
1,688
\n
Depreciat
ion and amort
izat
ion:
\n
Property, plant and equipment:
\n
Premises
326
370
\n
Equipment
123
129
\n
Operating lease assets
202
213
\n
651
712
\n
Intangibles:
\n
Software
531
461
\n
Acquired on business combinat
ions
4
8
\n
1,186
1,181
\n
Total operating expenses
10,913
10,924
\n
Operating expenses include research expenditure of $946 mill
ion (2021: $945 m
ill
ion), wh
ich was recognised as an expense in the
\n
year.
\n
The UK bank levy is applied on the chargeable equity and liab
il
it
ies on the balance sheet of UK operat
ions. Key exclusions from
\n
chargeable equity and liab
il
it
ies
include Tier 1 capital, insured or guaranteed retail deposits, repos secured on certain sovereign
\n
debt and liab
il
it
ies subject to nett
ing. The rates are 0.10 per cent for short-term liab
il
it
ies and 0.05 per cent for long-term
\n
liab
il
it
ies.", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingExpenseExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f79223": { "value": "Accounting policy \n
Short-term employee bene\ufb01ts: salaries and social security expenses are recognised over the period in which the employees
\n
provide the service. Variable compensation is included with
in share-based payments costs and wages and salar
ies. Further
\n
details are disclosed in the Directors\u2019 remuneration report (pages 184 to 205).
\n
Pension costs: contribut
ions to de\ufb01ned contr
ibut
ion pens
ion schemes are recognised in pro\ufb01t or loss when payable. For
\n
de\ufb01ned bene\ufb01t plans, net interest expense, service costs and expenses are recognised in the income statement. Further
\n
details are provided in Note 30.
\n
Share-based compensation: the Group operates equity-settled and cash-settled share-based payment compensation
\n
plans. The fair value of the employee services (measured by the fair value of the option granted) received in exchange for the
\ngrant of the options is recognised as an expense. Further details are provided in Note 31.", "dimensions": { "concept": "stan:DescriptionOfAccountingPolicyForOperatingExpensesExplanatoryPolicyTextBlock", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f79399": { "value": "8. Credit impa
irment
\n
Accounting policy
\n
Sign
i\ufb01cant account
ing estimates and judgements
\n
The Group\u2019s expected credit loss (ECL) calculations are outputs of complex models with a number of underlying assumptions.
\n
The sign
i\ufb01cant judgements
in determin
ing ECL
include:
\n
\u2022
The Group\u2019s criter
ia for assess
ing if there has been a sign
i\ufb01cant
increase in credit risk;
\n
\u2022
Development of expected credit loss models, includ
ing the cho
ice of inputs relating to macroeconomic variables;
\n
\u2022
Evaluation of management overlays and post-model adjustments;
\n
\u2022
Determinat
ion of probab
il
ity we
ight
ings for Stage 3
ind
iv
idually assessed provis
ions
\n
The calculation of credit impa
irment prov
is
ions also
involves expert credit judgement to be applied by the credit risk
\n
management team based upon counterparty informat
ion they rece
ive from various sources includ
ing relat
ionsh
ip managers
\n
and on external market informat
ion. Deta
ils on the approach for determin
ing ECL can be found
in the credit risk section,
\n
under IFRS 9 Methodology (page 236).
\n
Estimates of forecasts of key macroeconomic variables underlying the ECL calculation can be found with
in the R
isk review,
\n
Key assumptions and judgements in determin
ing expected cred
it loss (page 271).
\n
Expected credit losses
\n
ECL are determined for all \ufb01nanc
ial debt
instruments that are classif
ied at amort
ised cost or fair value through other
\n
comprehensive income, undrawn commitments and \ufb01nanc
ial guarantees.
\n
An ECL represents the present value of expected cash shortfalls over the residual term of a \ufb01nanc
ial asset, undrawn
\n
commitment or \ufb01nanc
ial guarantee.
\n
A cash shortfall is the difference between the cash \ufb02ows that are due in accordance with the contractual terms of the
\n
instrument and the cash \ufb02ows that the Group expects to receive over the contractual life of the instrument.
\n
Measurement
\n
ECL are computed as unbiased, probabil
ity-we
ighted amounts which are determined by evaluating a range of reasonably
\n
possible outcomes, the time value of money, and consider
ing all reasonable and supportable
informat
ion
includ
ing that
\n
which is forward-looking.
\n
For material portfolios, the estimate of expected cash shortfalls is determined by multiply
ing the probab
il
ity of default (PD)
\n
with the loss given default (LGD) with the expected exposure at the time of default (EAD). There may be multiple default
\n
events over the lifet
ime of an
instrument. Further details on the components of PD, LGD and EAD are disclosed in the Credit
\n
risk section. For less material Retail Banking loan portfolios, the Group has adopted less sophist
icated approaches based on
\n
histor
ical roll rates or loss rates.
\n
Forward-looking economic assumptions are incorporated into the PD, LGD and EAD where relevant and where they
\n
in\ufb02uence credit risk, such as GDP growth rates, interest rates, house price ind
ices and commod
ity prices among others. These
\n
assumptions are incorporated using the Group\u2019s most likely forecast for a range of macroeconomic assumptions. These
\n
forecasts are determined using all reasonable and supportable informat
ion, wh
ich includes both internally developed
\n
forecasts and those available externally, and are consistent with those used for budgeting, forecasting and capital planning.
\n
To account for the potential non-linear
ity
in credit losses, multiple forward-looking scenarios are incorporated into the range
\n
of reasonably possible outcomes for all material portfolios. For example, where there is a greater risk of downside credit
\n
losses than upside gains, multiple forward-looking economic scenarios are incorporated into the range of reasonably
\n
possible outcomes, both in respect of determin
ing the PD (and where relevant, the LGD and EAD) and
in determin
ing the
\n
overall ECL amounts. These scenarios are determined using a Monte Carlo approach centred around the Group\u2019s most likely
\n
forecast of macroeconomic assumptions.
\n
The period over which cash shortfalls are determined is generally lim
ited to the max
imum contractual period for which the
\n
Group is exposed to credit risk. However, for certain revolving credit facil
it
ies, which include credit cards or overdrafts, the
\n
Group\u2019s exposure to credit risk is not lim
ited to the contractual per
iod. For these instruments, the Group estimates an
\n
appropriate life based on the period that the Group is exposed to credit risk, which includes the effect of credit risk
\n
management actions such as the withdrawal of undrawn facil
it
ies.
\n
For credit-impa
ired \ufb01nancial
instruments, the estimate of cash shortfalls may require the use of expert credit judgement.
362
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
8. Credit impa
irment
continued
\n
The estimate of expected cash shortfalls on a collateralised \ufb01nanc
ial
instrument re\ufb02ects the amount and tim
ing of cash
\n
\ufb02ows that are expected from foreclosure on the collateral less the costs of obtain
ing and sell
ing the collateral, regardless of
\n
whether foreclosure is deemed probable.
\n
Cash \ufb02ows from unfunded credit enhancements held are included with
in the measurement of expected cred
it losses if they
\n
are part of, or integral to, the contractual terms of the instrument (this includes \ufb01nanc
ial guarantees, unfunded r
isk
\n
partic
ipat
ions and other non-derivat
ive cred
it insurance). Although non-integral credit enhancements do not impact the
\n
measurement of expected credit losses, a reimbursement asset is recognised to the extent of the ECL recorded.
\n
Cash shortfalls are discounted using the effective interest rate (or credit-adjusted effective interest rate for purchased or
\n
orig
inated cred
it-impa
ired
instruments (POCI)) on the \ufb01nanc
ial
instrument as calculated at in
it
ial recognit
ion or
if the
\n
instrument has a variable interest rate, the current effective interest rate determined under the contract.
\n
Instruments
Location of expected credit loss provis
ions
\n
Financ
ial assets held at amort
ised cost
Loss provis
ions: netted aga
inst gross carrying value\u00b9
\n
Financ
ial assets held FVOCI \u2013 Debt
instruments
Other comprehensive income (FVOCI expected credit loss reserve)
\n
2
\n
Loan commitments
Provis
ions for l
iab
il
it
ies and charges
\n
3
\n
Financ
ial guarantees
Provis
ions for l
iab
il
it
ies and charges
\n
3
\n
1
Purchased or orig
inated cred
it-impa
ired assets do not attract an expected cred
it loss provis
ion on
in
it
ial recognit
ion. An expected cred
it loss provis
ion w
ill be
\n
recognised only if there is an increase in expected credit losses from that considered at in
it
ial recognit
ion
\n
2
Debt and treasury securit
ies class
if
ied as fa
ir value through other comprehensive income (FVOCI) are held at fair value on the face of the balance sheet. The
\n
expected credit loss attributed to these instruments is held as a separate reserve with
in other comprehens
ive income (OCI) and is recycled to the pro\ufb01t and
\n
loss account along with any fair value measurement gains or losses held with
in FVOCI when the appl
icable instruments are derecognised
\n
3
Expected credit loss on loan commitments and \ufb01nanc
ial guarantees
is recognised as a liab
il
ity provis
ion. Where a \ufb01nancial
instrument includes both a loan
\n
(i.e. \ufb01nanc
ial asset component) and an undrawn comm
itment (i.e. loan commitment component), and it is not possible to separately ident
ify the expected
\n
credit loss on these components, expected credit loss amounts on the loan commitment are recognised together with expected credit loss amounts on the
\n
\ufb01nancial asset. To the extent the comb
ined expected credit loss exceeds the gross carrying amount of the \ufb01nanc
ial asset, the expected cred
it loss is
\n
recognised as a liab
il
ity provis
ion
\n
Recognit
ion
\n
12 months expected credit losses (stage 1)
Expected credit losses are recognised at the time of in
it
ial recognit
ion of a \ufb01nancial
\n
instrument and represent the lifet
ime cash shortfalls ar
is
ing from poss
ible default events up to 12 months into the future from
\n
the balance sheet date. Expected credit losses continue to be determined on this basis until there is either a sign
i\ufb01cant
\n
increase in the credit risk of an instrument or the instrument becomes credit-impa
ired. If an
instrument is no longer
\n
considered to exhib
it a s
ign
i\ufb01cant
increase in credit risk, expected credit losses will revert to being determined on a 12-month
\n
basis.
\n
Sign
i\ufb01cant
increase in credit risk (Stage 2)
If a \ufb01nancial asset exper
iences a sign
i\ufb01cant
increase in credit risk (SICR) since in
it
ial
\n
recognit
ion, an expected cred
it loss provis
ion
is recognised for default events that may occur over the lifet
ime of the asset.
\n
Sign
i\ufb01cant
increase in credit risk is assessed by comparing the risk of default of an exposure at the reporting date to the risk
\n
of default at orig
inat
ion (after taking into account the passage of time). Sign
i\ufb01cant does not mean stat
ist
ically s
ign
i\ufb01cant nor
\n
is it assessed in the context of changes in expected credit loss. Whether a change in the risk of default is sign
i\ufb01cant or not
is
\n
assessed using a number of quantitat
ive and qual
itat
ive factors, the we
ight of which depends on the type of product and
\n
counterparty. Financ
ial assets that are 30 or more days past due and not cred
it-impa
ired w
ill always be considered to have
\n
experienced a sign
i\ufb01cant
increase in credit risk. For less material portfolios where a loss rate or roll rate approach is applied to
\n
compute expected credit loss, sign
i\ufb01cant
increase in credit risk is primar
ily based on 30 days past due.
\n
Quantitat
ive factors
include an assessment of whether there has been sign
i\ufb01cant
increase in the forward-looking probabil
ity
\n
of default (PD) since orig
inat
ion. A forward-looking PD is one that is adjusted for future economic condit
ions to the extent
\n
these are correlated to changes in credit risk. We compare the residual lifet
ime PD at the balance sheet date to the res
idual
\n
lifet
ime PD that was expected at the t
ime of orig
inat
ion for the same point in the term structure and determine whether both
\n
the absolute and relative change between the two exceeds predetermined thresholds. To the extent that the differences
\n
between the measures of default outlined exceed the de\ufb01ned thresholds, the instrument is considered to have experienced
\n
a sign
i\ufb01cant
increase in credit risk.
\n
Qualitat
ive factors assessed
include those linked to current credit risk management processes, such as lending placed on
\n
non-purely precautionary early alert (and subject to closer monitor
ing).
\n
A non-purely precautionary early alert account is one which exhib
its r
isk or potential weaknesses of a material nature
\n
requir
ing closer mon
itor
ing, superv
is
ion, or attent
ion by management. Weaknesses in such a borrower\u2019s account, if left
\n
uncorrected, could result in deteriorat
ion of repayment prospects and the l
ikel
ihood of be
ing downgraded. Indicators could
\n
include a rapid erosion of posit
ion w
ith
in the
industry, concerns over management\u2019s abil
ity to manage operat
ions, weak/
\n
deteriorat
ing operat
ing results, liqu
id
ity strain and overdue balances among other factors.
363
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
8. Credit impa
irment
continued
\n
Credit-impa
ired (or defaulted) exposures (Stage 3)
Financ
ial assets that are cred
it-impa
ired (or
in default) represent those that
\n
are at least 90 days past due in respect of princ
ipal and/or
interest. Financ
ial assets are also cons
idered to be credit-impa
ired
\n
where the obligors are unlikely to pay on the occurrence of one or more observable events that have a detrimental impact on
\n
the estimated future cash \ufb02ows of the \ufb01nanc
ial asset. It may not be poss
ible to ident
ify a s
ingle discrete event but instead
\n
the combined effect of several events may cause \ufb01nanc
ial assets to become cred
it-impa
ired.
\n
\u2022
Evidence that a \ufb01nanc
ial asset
is credit-impa
ired
includes observable data about the following events:
\n
\u2022
Sign
i\ufb01cant \ufb01nancial d
iff
iculty of the
issuer or borrower;
\n
\u2022
Breach of contract such as default or a past due event;
\n
\u2022
For economic or contractual reasons relating to the borrower\u2019s \ufb01nanc
ial d
iff
iculty, the lenders of the borrower have granted
\n
the borrower concession/s that lenders would not otherwise consider. This would include forbearance actions (page 256);
\n
\u2022
Pending or actual bankruptcy or other \ufb01nanc
ial reorgan
isat
ion to avo
id or delay discharge of the borrower\u2019s obligat
ion/s;
\n
\u2022
The disappearance of an active market for the applicable \ufb01nanc
ial asset due to \ufb01nancial d
iff
icult
ies of the borrower;
\n
\u2022
Purchase or orig
inat
ion of a \ufb01nanc
ial asset at a deep d
iscount that re\ufb02ects incurred credit losses
\n
Lending commitments to a credit-impa
ired obl
igor that have not yet been drawn down are included to the extent that the
\n
commitment cannot be withdrawn. Loss provis
ions aga
inst credit-impa
ired \ufb01nancial assets are determ
ined based on an
\n
assessment of the recoverable cash \ufb02ows under a range of scenarios, includ
ing the real
isat
ion of any collateral held where
\n
appropriate. The loss provis
ions held represent the d
ifference between the present value of the expected cash \ufb02ows,
\n
discounted at the instrument\u2019s orig
inal effect
ive interest rate, and the gross carrying value (includ
ing contractual
interest due
\n
but not paid) of the instrument prior to any credit impa
irment. The Group\u2019s de\ufb01nit
ion of default is aligned with the regulatory
\n
de\ufb01nit
ion of default as set out in the UK\u2019s onshored capital requirements regulations (Art 178).
\n
Expert credit judgement
\n
For Corporate & Institut
ional, Commerc
ial and Private Banking, borrowers are graded by credit risk management on a credit
\n
grading (CG) scale from CG1 to CG14. Once a borrower starts to exhib
it cred
it deteriorat
ion,
it will move along the credit
\n
grading scale in the performing book and when it is classif
ied as CG12 the cred
it assessment and oversight of the loan will
\n
continue to be managed by the business with support from the Stressed Assets Group for certain accounts.
\n
Borrowers graded CG12 exhib
it well-de\ufb01ned weaknesses
in areas such as management and/or performance but there is no
\n
current expectation of a loss of princ
ipal or
interest. Where the impa
irment assessment
ind
icates that there w
ill be a loss of
\n
princ
ipal on a loan, the borrower
is graded a CG14 while borrowers of other credit-impa
ired loans are graded CG13.
\n
Instruments graded CG13 or CG14 are regarded as stage 3.
\n
For ind
iv
idually sign
i\ufb01cant \ufb01nancial assets w
ith
in stage 3, Stressed Asset R
isk (SAR) will consider all judgements that have an
\n
impact on the expected future cash \ufb02ows of the asset. These include: the business prospects, industry and geo polit
ical
\n
climate of the customer, quality of realisable value of collateral, the Group\u2019s legal posit
ion relat
ive to other claimants and any
\n
renegotiat
ion/ forbearance/ mod
if
icat
ion options. The future cash \ufb02ow calculation involves sign
i\ufb01cant judgements and
\n
estimates. As new informat
ion becomes ava
ilable and further negotiat
ions/ forbearance measures are taken the est
imates
\n
of the future cash \ufb02ows will be revised, and will have an impact on the future cash \ufb02ow analysis.
\n
For \ufb01nancial assets wh
ich are not ind
iv
idually sign
i\ufb01cant, such as the Consumer Bank
ing portfolio or small business loans,
\n
which comprise a large number of homogeneous loans that share sim
ilar character
ist
ics, stat
ist
ical est
imates and
\n
techniques are used, as well as credit scoring analysis.
\n
Consumer and Business Banking clients are considered credit-impa
ired where they are more 90 days past due, or
if the
\n
borrower \ufb01les for bankruptcy or other forbearance programme, the borrower is deceased or the business is closed in the case
\n
of a small business, or if the borrower surrenders the collateral, or there is an ident
i\ufb01ed fraud on the account. Add
it
ionally,
if
\n
the account is unsecured and the borrower has other credit accounts with the Group that are considered credit-impa
ired, the
\n
account may be also be credit-impa
ired.
\n
Techniques used to compute impa
irment amounts use models wh
ich analyse histor
ical repayment and default rates over a
\n
time horizon. Where various models are used, judgement is required to analyse the available informat
ion prov
ided and
\n
select the appropriate model or combinat
ion of models to use.
\n
Expert credit judgement is also applied to determine whether any post-model adjustments are required for credit risk
\n
elements which are not captured by the models.
\n
Modif
ied \ufb01nancial
instruments
\n
Where the orig
inal contractual terms of a \ufb01nancial asset have been mod
if
ied for cred
it reasons and the instrument has not
\n
been derecognised (an instrument is derecognised when a modif
icat
ion results in a change in cash \ufb02ows that the Group
\n
would consider substantial), the resulting modif
icat
ion loss is recognised with
in cred
it impa
irment
in the income statement
\n
with a corresponding decrease in the gross carrying value of the asset. If the modif
icat
ion involved a concession that the
\n
bank would not otherwise consider, the instrument is considered to be credit-impa
ired and
is considered forborne.
364
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
8. Credit impa
irment
continued
\n
Expected credit loss for modif
ied \ufb01nancial assets that have not been derecogn
ised and are not considered to be credit-
\n
impa
ired w
ill be recognised on a 12-month basis, or a lifet
ime bas
is, if there is a sign
i\ufb01cant
increase in credit risk. These assets
\n
are assessed (by comparison to the orig
inat
ion date) to determine whether there has been a sign
i\ufb01cant
increase in credit risk
\n
subsequent to the modif
icat
ion. Although loans may be modif
ied for non-cred
it reasons, a sign
i\ufb01cant
increase in credit risk
\n
may occur. In addit
ion to the recogn
it
ion of mod
if
icat
ion gains and losses, the revised carrying value of modif
ied \ufb01nancial
\n
assets will impact the calculation of expected credit losses, with any increase or decrease in expected credit loss recognised
\n
with
in
impa
irment.
\n
Forborne loans
\n
Forborne loans are those loans that have been modif
ied
in response to a customer\u2019s \ufb01nanc
ial d
iff
icult
ies. Forbearance
\n
strategies assist clients who are temporarily in \ufb01nanc
ial d
istress and are unable to meet their orig
inal contractual repayment
\n
terms. Forbearance can be in
it
iated by the client, the Group or a third-party includ
ing government sponsored programmes
\n
or a conglomerate of credit inst
itut
ions. Forbearance may include debt restructuring such as new repayment schedules,
\n
payment deferrals, tenor extensions, interest only payments, lower interest rates, forgiveness of princ
ipal,
interest or fees, or
\n
relaxation of loan covenants.
\n
Forborne loans that have been modif
ied (and not derecogn
ised) on terms that are not consistent with those readily
\n
available in the market and/or where we have granted a concession compared to the orig
inal terms of the loans are
\n
considered credit-impa
ired
if there is a detrimental impact on cash \ufb02ows. The modif
icat
ion loss (see Classif
icat
ion and
\n
measurement \u2013 Modif
icat
ions) is recognised in the pro\ufb01t or loss with
in cred
it impa
irment and the gross carry
ing value of the
\n
loan reduced by the same amount. The modif
ied loan
is disclosed as \u2018Loans subject to forbearance \u2013 credit-impa
ired\u2019.
\n
Loans that have been subject to a forbearance modif
icat
ion, but which are not considered credit-impa
ired (not class
if
ied as
\n
CG13 or CG14), are disclosed as \u2018Forborne \u2013 not credit-impa
ired\u2019. Th
is may include amendments to covenants with
in the
\n
contractual terms.
\n
Write-offs of credit-impa
ired
instruments and reversal of impa
irment
\n
To the extent a \ufb01nancial debt
instrument is considered irrecoverable, the applicable portion of the gross carrying value is
\n
written off against the related loan provis
ion. Such loans are wr
itten off after all the necessary procedures have been
\n
completed, it is decided that there is no realist
ic probab
il
ity of recovery and the amount of the loss has been determ
ined.
\n
Subsequent recoveries of amounts previously written off decrease the amount of the provis
ion for cred
it impa
irment
in the
\n
income statement.
\n
Loss provis
ions on purchased or or
ig
inated cred
it-impa
ired
instruments (POCI)
\n
The Group measures expected credit loss on a lifet
ime bas
is for POCI instruments throughout the life of the instrument.
\n
However, expected credit loss is not recognised in a separate loss provis
ion on
in
it
ial recognit
ion for POCI
instruments as the
\n
lifet
ime expected cred
it loss is inherent with
in the gross carry
ing amount of the instruments. The Group recognises the
\n
change in lifet
ime expected cred
it losses aris
ing subsequent to
in
it
ial recognit
ion
in the income statement and the
\n
cumulative change as a loss provis
ion. Where l
ifet
ime expected cred
it losses on POCI instruments are less than those at in
it
ial
\n
recognit
ion, then the favourable d
ifferences are recognised as impa
irment ga
ins in the income statement (and as
\n
impa
irment loss where the expected cred
it losses are greater).
\n
Improvement in credit risk/curing
\n
A period may elapse from the point at which instruments enter lifet
ime expected cred
it losses (stage 2 or stage 3) and are
\n
reclassif
ied back to 12-month expected cred
it losses (stage 1). For \ufb01nanc
ial assets that are cred
it-impa
ired (stage 3), a
\n
transfer to stage 2 or stage 1 is only permitted where the instrument is no longer considered to be credit-impa
ired. An
\n
instrument will no longer be considered credit-impa
ired when there
is no shortfall of cash \ufb02ows compared to the orig
inal
\n
contractual terms.
\n
For \ufb01nancial assets w
ith
in stage 2, these can only be transferred to stage 1 when they are no longer cons
idered to have
\n
experienced a sign
i\ufb01cant
increase in credit risk.
\n
Where sign
i\ufb01cant
increase in credit risk was determined using quantitat
ive measures, the
instruments will automatically
\n
transfer back to stage 1 when the orig
inal PD based transfer cr
iter
ia are no longer met. Where
instruments were transferred
\n
to stage 2 due to an assessment of qualitat
ive factors, the
issues that led to the reclassif
icat
ion must be cured before the
\n
instruments can be reclassif
ied to stage 1. Th
is includes instances where management actions led to instruments being
\n
classif
ied as stage 2, requ
ir
ing that act
ion to be resolved before loans are reclassif
ied to stage 1.
\n
A forborne loan can only be removed from being disclosed as forborne if the loan is performing (stage 1 or 2) and a further
\n
two-year probation period is met.
\n
In order for a forborne loan to become performing, the following criter
ia have to be sat
isf
ied:
\n
\u2022
At least a year has passed with no default based upon the forborne contract terms
\n
\u2022
The customer is likely to repay its obligat
ions
in full without realis
ing secur
ity
\n
\u2022
The customer has no accumulated impa
irment aga
inst amount outstanding (except for ECL)
\n
Subsequent to the criter
ia above, a further two-year probat
ion period has to be ful\ufb01lled, whereby regular payments are
\n
made by the customer and none of the exposures to the customer are more than 30 days past due.
365
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
8. Credit impa
irment
continued
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Net credit impa
irment on loans and advances to banks and customers
743
258
\n
Net credit impa
irment on debt secur
it
ies\u00b9
122
26
\n
Net credit impa
irment relat
ing to \ufb01nanc
ial guarantees and loan comm
itments
(27)
(30)
\n
Net credit impa
irment relat
ing to other \ufb01nanc
ial assets
(2)
\u2013
\n
Credit impa
irment
\n
1
\n
836
254
\n
1
Includes impa
irment of $13 m
ill
ion (2021: N
il) on orig
inated cred
it-impa
ired debt secur
it
ies", "dimensions": { "concept": "stan:DisclosureOfCreditImpairmentExplanatoryTextBlock", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f79404": { "value": "Accounting policy \n
Sign
i\ufb01cant account
ing estimates and judgements
\n
The Group\u2019s expected credit loss (ECL) calculations are outputs of complex models with a number of underlying assumptions.
\n
The sign
i\ufb01cant judgements
in determin
ing ECL
include:
\n
\u2022
The Group\u2019s criter
ia for assess
ing if there has been a sign
i\ufb01cant
increase in credit risk;
\n
\u2022
Development of expected credit loss models, includ
ing the cho
ice of inputs relating to macroeconomic variables;
\n
\u2022
Evaluation of management overlays and post-model adjustments;
\n
\u2022
Determinat
ion of probab
il
ity we
ight
ings for Stage 3
ind
iv
idually assessed provis
ions
\n
The calculation of credit impa
irment prov
is
ions also
involves expert credit judgement to be applied by the credit risk
\n
management team based upon counterparty informat
ion they rece
ive from various sources includ
ing relat
ionsh
ip managers
\n
and on external market informat
ion. Deta
ils on the approach for determin
ing ECL can be found
in the credit risk section,
\n
under IFRS 9 Methodology (page 236).
\n
Estimates of forecasts of key macroeconomic variables underlying the ECL calculation can be found with
in the R
isk review,
\n
Key assumptions and judgements in determin
ing expected cred
it loss (page 271).
\n
Expected credit losses
\n
ECL are determined for all \ufb01nanc
ial debt
instruments that are classif
ied at amort
ised cost or fair value through other
\n
comprehensive income, undrawn commitments and \ufb01nanc
ial guarantees.
\n
An ECL represents the present value of expected cash shortfalls over the residual term of a \ufb01nanc
ial asset, undrawn
\n
commitment or \ufb01nanc
ial guarantee.
\n
A cash shortfall is the difference between the cash \ufb02ows that are due in accordance with the contractual terms of the
\n
instrument and the cash \ufb02ows that the Group expects to receive over the contractual life of the instrument.
\n
Measurement
\n
ECL are computed as unbiased, probabil
ity-we
ighted amounts which are determined by evaluating a range of reasonably
\n
possible outcomes, the time value of money, and consider
ing all reasonable and supportable
informat
ion
includ
ing that
\n
which is forward-looking.
\n
For material portfolios, the estimate of expected cash shortfalls is determined by multiply
ing the probab
il
ity of default (PD)
\n
with the loss given default (LGD) with the expected exposure at the time of default (EAD). There may be multiple default
\n
events over the lifet
ime of an
instrument. Further details on the components of PD, LGD and EAD are disclosed in the Credit
\n
risk section. For less material Retail Banking loan portfolios, the Group has adopted less sophist
icated approaches based on
\n
histor
ical roll rates or loss rates.
\n
Forward-looking economic assumptions are incorporated into the PD, LGD and EAD where relevant and where they
\n
in\ufb02uence credit risk, such as GDP growth rates, interest rates, house price ind
ices and commod
ity prices among others. These
\n
assumptions are incorporated using the Group\u2019s most likely forecast for a range of macroeconomic assumptions. These
\n
forecasts are determined using all reasonable and supportable informat
ion, wh
ich includes both internally developed
\n
forecasts and those available externally, and are consistent with those used for budgeting, forecasting and capital planning.
\n
To account for the potential non-linear
ity
in credit losses, multiple forward-looking scenarios are incorporated into the range
\n
of reasonably possible outcomes for all material portfolios. For example, where there is a greater risk of downside credit
\n
losses than upside gains, multiple forward-looking economic scenarios are incorporated into the range of reasonably
\n
possible outcomes, both in respect of determin
ing the PD (and where relevant, the LGD and EAD) and
in determin
ing the
\n
overall ECL amounts. These scenarios are determined using a Monte Carlo approach centred around the Group\u2019s most likely
\n
forecast of macroeconomic assumptions.
\n
The period over which cash shortfalls are determined is generally lim
ited to the max
imum contractual period for which the
\n
Group is exposed to credit risk. However, for certain revolving credit facil
it
ies, which include credit cards or overdrafts, the
\n
Group\u2019s exposure to credit risk is not lim
ited to the contractual per
iod. For these instruments, the Group estimates an
\n
appropriate life based on the period that the Group is exposed to credit risk, which includes the effect of credit risk
\n
management actions such as the withdrawal of undrawn facil
it
ies.
\n
For credit-impa
ired \ufb01nancial
instruments, the estimate of cash shortfalls may require the use of expert credit judgement.
362
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
8. Credit impa
irment
continued
\n
The estimate of expected cash shortfalls on a collateralised \ufb01nanc
ial
instrument re\ufb02ects the amount and tim
ing of cash
\n
\ufb02ows that are expected from foreclosure on the collateral less the costs of obtain
ing and sell
ing the collateral, regardless of
\n
whether foreclosure is deemed probable.
\n
Cash \ufb02ows from unfunded credit enhancements held are included with
in the measurement of expected cred
it losses if they
\n
are part of, or integral to, the contractual terms of the instrument (this includes \ufb01nanc
ial guarantees, unfunded r
isk
\n
partic
ipat
ions and other non-derivat
ive cred
it insurance). Although non-integral credit enhancements do not impact the
\n
measurement of expected credit losses, a reimbursement asset is recognised to the extent of the ECL recorded.
\n
Cash shortfalls are discounted using the effective interest rate (or credit-adjusted effective interest rate for purchased or
\n
orig
inated cred
it-impa
ired
instruments (POCI)) on the \ufb01nanc
ial
instrument as calculated at in
it
ial recognit
ion or
if the
\n
instrument has a variable interest rate, the current effective interest rate determined under the contract.
\n
Instruments
Location of expected credit loss provis
ions
\n
Financ
ial assets held at amort
ised cost
Loss provis
ions: netted aga
inst gross carrying value\u00b9
\n
Financ
ial assets held FVOCI \u2013 Debt
instruments
Other comprehensive income (FVOCI expected credit loss reserve)
\n
2
\n
Loan commitments
Provis
ions for l
iab
il
it
ies and charges
\n
3
\n
Financ
ial guarantees
Provis
ions for l
iab
il
it
ies and charges
\n
3
\n
1
Purchased or orig
inated cred
it-impa
ired assets do not attract an expected cred
it loss provis
ion on
in
it
ial recognit
ion. An expected cred
it loss provis
ion w
ill be
\n
recognised only if there is an increase in expected credit losses from that considered at in
it
ial recognit
ion
\n
2
Debt and treasury securit
ies class
if
ied as fa
ir value through other comprehensive income (FVOCI) are held at fair value on the face of the balance sheet. The
\n
expected credit loss attributed to these instruments is held as a separate reserve with
in other comprehens
ive income (OCI) and is recycled to the pro\ufb01t and
\n
loss account along with any fair value measurement gains or losses held with
in FVOCI when the appl
icable instruments are derecognised
\n
3
Expected credit loss on loan commitments and \ufb01nanc
ial guarantees
is recognised as a liab
il
ity provis
ion. Where a \ufb01nancial
instrument includes both a loan
\n
(i.e. \ufb01nanc
ial asset component) and an undrawn comm
itment (i.e. loan commitment component), and it is not possible to separately ident
ify the expected
\n
credit loss on these components, expected credit loss amounts on the loan commitment are recognised together with expected credit loss amounts on the
\n
\ufb01nancial asset. To the extent the comb
ined expected credit loss exceeds the gross carrying amount of the \ufb01nanc
ial asset, the expected cred
it loss is
\n
recognised as a liab
il
ity provis
ion
\n
Recognit
ion
\n
12 months expected credit losses (stage 1)
Expected credit losses are recognised at the time of in
it
ial recognit
ion of a \ufb01nancial
\n
instrument and represent the lifet
ime cash shortfalls ar
is
ing from poss
ible default events up to 12 months into the future from
\n
the balance sheet date. Expected credit losses continue to be determined on this basis until there is either a sign
i\ufb01cant
\n
increase in the credit risk of an instrument or the instrument becomes credit-impa
ired. If an
instrument is no longer
\n
considered to exhib
it a s
ign
i\ufb01cant
increase in credit risk, expected credit losses will revert to being determined on a 12-month
\n
basis.
\n
Sign
i\ufb01cant
increase in credit risk (Stage 2)
If a \ufb01nancial asset exper
iences a sign
i\ufb01cant
increase in credit risk (SICR) since in
it
ial
\n
recognit
ion, an expected cred
it loss provis
ion
is recognised for default events that may occur over the lifet
ime of the asset.
\n
Sign
i\ufb01cant
increase in credit risk is assessed by comparing the risk of default of an exposure at the reporting date to the risk
\n
of default at orig
inat
ion (after taking into account the passage of time). Sign
i\ufb01cant does not mean stat
ist
ically s
ign
i\ufb01cant nor
\n
is it assessed in the context of changes in expected credit loss. Whether a change in the risk of default is sign
i\ufb01cant or not
is
\n
assessed using a number of quantitat
ive and qual
itat
ive factors, the we
ight of which depends on the type of product and
\n
counterparty. Financ
ial assets that are 30 or more days past due and not cred
it-impa
ired w
ill always be considered to have
\n
experienced a sign
i\ufb01cant
increase in credit risk. For less material portfolios where a loss rate or roll rate approach is applied to
\n
compute expected credit loss, sign
i\ufb01cant
increase in credit risk is primar
ily based on 30 days past due.
\n
Quantitat
ive factors
include an assessment of whether there has been sign
i\ufb01cant
increase in the forward-looking probabil
ity
\n
of default (PD) since orig
inat
ion. A forward-looking PD is one that is adjusted for future economic condit
ions to the extent
\n
these are correlated to changes in credit risk. We compare the residual lifet
ime PD at the balance sheet date to the res
idual
\n
lifet
ime PD that was expected at the t
ime of orig
inat
ion for the same point in the term structure and determine whether both
\n
the absolute and relative change between the two exceeds predetermined thresholds. To the extent that the differences
\n
between the measures of default outlined exceed the de\ufb01ned thresholds, the instrument is considered to have experienced
\n
a sign
i\ufb01cant
increase in credit risk.
\n
Qualitat
ive factors assessed
include those linked to current credit risk management processes, such as lending placed on
\n
non-purely precautionary early alert (and subject to closer monitor
ing).
\n
A non-purely precautionary early alert account is one which exhib
its r
isk or potential weaknesses of a material nature
\n
requir
ing closer mon
itor
ing, superv
is
ion, or attent
ion by management. Weaknesses in such a borrower\u2019s account, if left
\n
uncorrected, could result in deteriorat
ion of repayment prospects and the l
ikel
ihood of be
ing downgraded. Indicators could
\n
include a rapid erosion of posit
ion w
ith
in the
industry, concerns over management\u2019s abil
ity to manage operat
ions, weak/
\n
deteriorat
ing operat
ing results, liqu
id
ity strain and overdue balances among other factors.
363
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
8. Credit impa
irment
continued
\n
Credit-impa
ired (or defaulted) exposures (Stage 3)
Financ
ial assets that are cred
it-impa
ired (or
in default) represent those that
\n
are at least 90 days past due in respect of princ
ipal and/or
interest. Financ
ial assets are also cons
idered to be credit-impa
ired
\n
where the obligors are unlikely to pay on the occurrence of one or more observable events that have a detrimental impact on
\n
the estimated future cash \ufb02ows of the \ufb01nanc
ial asset. It may not be poss
ible to ident
ify a s
ingle discrete event but instead
\n
the combined effect of several events may cause \ufb01nanc
ial assets to become cred
it-impa
ired.
\n
\u2022
Evidence that a \ufb01nanc
ial asset
is credit-impa
ired
includes observable data about the following events:
\n
\u2022
Sign
i\ufb01cant \ufb01nancial d
iff
iculty of the
issuer or borrower;
\n
\u2022
Breach of contract such as default or a past due event;
\n
\u2022
For economic or contractual reasons relating to the borrower\u2019s \ufb01nanc
ial d
iff
iculty, the lenders of the borrower have granted
\n
the borrower concession/s that lenders would not otherwise consider. This would include forbearance actions (page 256);
\n
\u2022
Pending or actual bankruptcy or other \ufb01nanc
ial reorgan
isat
ion to avo
id or delay discharge of the borrower\u2019s obligat
ion/s;
\n
\u2022
The disappearance of an active market for the applicable \ufb01nanc
ial asset due to \ufb01nancial d
iff
icult
ies of the borrower;
\n
\u2022
Purchase or orig
inat
ion of a \ufb01nanc
ial asset at a deep d
iscount that re\ufb02ects incurred credit losses
\n
Lending commitments to a credit-impa
ired obl
igor that have not yet been drawn down are included to the extent that the
\n
commitment cannot be withdrawn. Loss provis
ions aga
inst credit-impa
ired \ufb01nancial assets are determ
ined based on an
\n
assessment of the recoverable cash \ufb02ows under a range of scenarios, includ
ing the real
isat
ion of any collateral held where
\n
appropriate. The loss provis
ions held represent the d
ifference between the present value of the expected cash \ufb02ows,
\n
discounted at the instrument\u2019s orig
inal effect
ive interest rate, and the gross carrying value (includ
ing contractual
interest due
\n
but not paid) of the instrument prior to any credit impa
irment. The Group\u2019s de\ufb01nit
ion of default is aligned with the regulatory
\n
de\ufb01nit
ion of default as set out in the UK\u2019s onshored capital requirements regulations (Art 178).
\n
Expert credit judgement
\n
For Corporate & Institut
ional, Commerc
ial and Private Banking, borrowers are graded by credit risk management on a credit
\n
grading (CG) scale from CG1 to CG14. Once a borrower starts to exhib
it cred
it deteriorat
ion,
it will move along the credit
\n
grading scale in the performing book and when it is classif
ied as CG12 the cred
it assessment and oversight of the loan will
\n
continue to be managed by the business with support from the Stressed Assets Group for certain accounts.
\n
Borrowers graded CG12 exhib
it well-de\ufb01ned weaknesses
in areas such as management and/or performance but there is no
\n
current expectation of a loss of princ
ipal or
interest. Where the impa
irment assessment
ind
icates that there w
ill be a loss of
\n
princ
ipal on a loan, the borrower
is graded a CG14 while borrowers of other credit-impa
ired loans are graded CG13.
\n
Instruments graded CG13 or CG14 are regarded as stage 3.
\n
For ind
iv
idually sign
i\ufb01cant \ufb01nancial assets w
ith
in stage 3, Stressed Asset R
isk (SAR) will consider all judgements that have an
\n
impact on the expected future cash \ufb02ows of the asset. These include: the business prospects, industry and geo polit
ical
\n
climate of the customer, quality of realisable value of collateral, the Group\u2019s legal posit
ion relat
ive to other claimants and any
\n
renegotiat
ion/ forbearance/ mod
if
icat
ion options. The future cash \ufb02ow calculation involves sign
i\ufb01cant judgements and
\n
estimates. As new informat
ion becomes ava
ilable and further negotiat
ions/ forbearance measures are taken the est
imates
\n
of the future cash \ufb02ows will be revised, and will have an impact on the future cash \ufb02ow analysis.
\n
For \ufb01nancial assets wh
ich are not ind
iv
idually sign
i\ufb01cant, such as the Consumer Bank
ing portfolio or small business loans,
\n
which comprise a large number of homogeneous loans that share sim
ilar character
ist
ics, stat
ist
ical est
imates and
\n
techniques are used, as well as credit scoring analysis.
\n
Consumer and Business Banking clients are considered credit-impa
ired where they are more 90 days past due, or
if the
\n
borrower \ufb01les for bankruptcy or other forbearance programme, the borrower is deceased or the business is closed in the case
\n
of a small business, or if the borrower surrenders the collateral, or there is an ident
i\ufb01ed fraud on the account. Add
it
ionally,
if
\n
the account is unsecured and the borrower has other credit accounts with the Group that are considered credit-impa
ired, the
\n
account may be also be credit-impa
ired.
\n
Techniques used to compute impa
irment amounts use models wh
ich analyse histor
ical repayment and default rates over a
\n
time horizon. Where various models are used, judgement is required to analyse the available informat
ion prov
ided and
\n
select the appropriate model or combinat
ion of models to use.
\n
Expert credit judgement is also applied to determine whether any post-model adjustments are required for credit risk
\n
elements which are not captured by the models.
\n
Modif
ied \ufb01nancial
instruments
\n
Where the orig
inal contractual terms of a \ufb01nancial asset have been mod
if
ied for cred
it reasons and the instrument has not
\n
been derecognised (an instrument is derecognised when a modif
icat
ion results in a change in cash \ufb02ows that the Group
\n
would consider substantial), the resulting modif
icat
ion loss is recognised with
in cred
it impa
irment
in the income statement
\n
with a corresponding decrease in the gross carrying value of the asset. If the modif
icat
ion involved a concession that the
\n
bank would not otherwise consider, the instrument is considered to be credit-impa
ired and
is considered forborne.
364
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
8. Credit impa
irment
continued
\n
Expected credit loss for modif
ied \ufb01nancial assets that have not been derecogn
ised and are not considered to be credit-
\n
impa
ired w
ill be recognised on a 12-month basis, or a lifet
ime bas
is, if there is a sign
i\ufb01cant
increase in credit risk. These assets
\n
are assessed (by comparison to the orig
inat
ion date) to determine whether there has been a sign
i\ufb01cant
increase in credit risk
\n
subsequent to the modif
icat
ion. Although loans may be modif
ied for non-cred
it reasons, a sign
i\ufb01cant
increase in credit risk
\n
may occur. In addit
ion to the recogn
it
ion of mod
if
icat
ion gains and losses, the revised carrying value of modif
ied \ufb01nancial
\n
assets will impact the calculation of expected credit losses, with any increase or decrease in expected credit loss recognised
\n
with
in
impa
irment.
\n
Forborne loans
\n
Forborne loans are those loans that have been modif
ied
in response to a customer\u2019s \ufb01nanc
ial d
iff
icult
ies. Forbearance
\n
strategies assist clients who are temporarily in \ufb01nanc
ial d
istress and are unable to meet their orig
inal contractual repayment
\n
terms. Forbearance can be in
it
iated by the client, the Group or a third-party includ
ing government sponsored programmes
\n
or a conglomerate of credit inst
itut
ions. Forbearance may include debt restructuring such as new repayment schedules,
\n
payment deferrals, tenor extensions, interest only payments, lower interest rates, forgiveness of princ
ipal,
interest or fees, or
\n
relaxation of loan covenants.
\n
Forborne loans that have been modif
ied (and not derecogn
ised) on terms that are not consistent with those readily
\n
available in the market and/or where we have granted a concession compared to the orig
inal terms of the loans are
\n
considered credit-impa
ired
if there is a detrimental impact on cash \ufb02ows. The modif
icat
ion loss (see Classif
icat
ion and
\n
measurement \u2013 Modif
icat
ions) is recognised in the pro\ufb01t or loss with
in cred
it impa
irment and the gross carry
ing value of the
\n
loan reduced by the same amount. The modif
ied loan
is disclosed as \u2018Loans subject to forbearance \u2013 credit-impa
ired\u2019.
\n
Loans that have been subject to a forbearance modif
icat
ion, but which are not considered credit-impa
ired (not class
if
ied as
\n
CG13 or CG14), are disclosed as \u2018Forborne \u2013 not credit-impa
ired\u2019. Th
is may include amendments to covenants with
in the
\n
contractual terms.
\n
Write-offs of credit-impa
ired
instruments and reversal of impa
irment
\n
To the extent a \ufb01nancial debt
instrument is considered irrecoverable, the applicable portion of the gross carrying value is
\n
written off against the related loan provis
ion. Such loans are wr
itten off after all the necessary procedures have been
\n
completed, it is decided that there is no realist
ic probab
il
ity of recovery and the amount of the loss has been determ
ined.
\n
Subsequent recoveries of amounts previously written off decrease the amount of the provis
ion for cred
it impa
irment
in the
\n
income statement.
\n
Loss provis
ions on purchased or or
ig
inated cred
it-impa
ired
instruments (POCI)
\n
The Group measures expected credit loss on a lifet
ime bas
is for POCI instruments throughout the life of the instrument.
\n
However, expected credit loss is not recognised in a separate loss provis
ion on
in
it
ial recognit
ion for POCI
instruments as the
\n
lifet
ime expected cred
it loss is inherent with
in the gross carry
ing amount of the instruments. The Group recognises the
\n
change in lifet
ime expected cred
it losses aris
ing subsequent to
in
it
ial recognit
ion
in the income statement and the
\n
cumulative change as a loss provis
ion. Where l
ifet
ime expected cred
it losses on POCI instruments are less than those at in
it
ial
\n
recognit
ion, then the favourable d
ifferences are recognised as impa
irment ga
ins in the income statement (and as
\n
impa
irment loss where the expected cred
it losses are greater).
\n
Improvement in credit risk/curing
\n
A period may elapse from the point at which instruments enter lifet
ime expected cred
it losses (stage 2 or stage 3) and are
\n
reclassif
ied back to 12-month expected cred
it losses (stage 1). For \ufb01nanc
ial assets that are cred
it-impa
ired (stage 3), a
\n
transfer to stage 2 or stage 1 is only permitted where the instrument is no longer considered to be credit-impa
ired. An
\n
instrument will no longer be considered credit-impa
ired when there
is no shortfall of cash \ufb02ows compared to the orig
inal
\n
contractual terms.
\n
For \ufb01nancial assets w
ith
in stage 2, these can only be transferred to stage 1 when they are no longer cons
idered to have
\n
experienced a sign
i\ufb01cant
increase in credit risk.
\n
Where sign
i\ufb01cant
increase in credit risk was determined using quantitat
ive measures, the
instruments will automatically
\n
transfer back to stage 1 when the orig
inal PD based transfer cr
iter
ia are no longer met. Where
instruments were transferred
\n
to stage 2 due to an assessment of qualitat
ive factors, the
issues that led to the reclassif
icat
ion must be cured before the
\n
instruments can be reclassif
ied to stage 1. Th
is includes instances where management actions led to instruments being
\n
classif
ied as stage 2, requ
ir
ing that act
ion to be resolved before loans are reclassif
ied to stage 1.
\n
A forborne loan can only be removed from being disclosed as forborne if the loan is performing (stage 1 or 2) and a further
\n
two-year probation period is met.
\n
In order for a forborne loan to become performing, the following criter
ia have to be sat
isf
ied:
\n
\u2022
At least a year has passed with no default based upon the forborne contract terms
\n
\u2022
The customer is likely to repay its obligat
ions
in full without realis
ing secur
ity
\n
\u2022
The customer has no accumulated impa
irment aga
inst amount outstanding (except for ECL)
\n
Subsequent to the criter
ia above, a further two-year probat
ion period has to be ful\ufb01lled, whereby regular payments are
\nmade by the customer and none of the exposures to the customer are more than 30 days past due.", "dimensions": { "concept": "stan:DescriptionOfAccountingPolicyForCreditImpairmentExplanatoryPolicyTextBlock", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f80325": { "value": "9. Goodwill, \ufb01xed asset, and other impa
irment
\n
Accounting policy
\n
Refer to the below referenced notes for the relevant accounting policy.
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Impairment of goodwill (Note 17)
14
\u2013
\n
Impairment of property, plant and equipment (Note 18)
50
106
\n
Impairment of other intang
ible assets (Note 17)
12
4
\n
Other
\n
1
\n
363
262
\n
Property, plant and equipment and other impa
irment
425
372
\n
Goodwill, property, plant and equipment and other impa
irment
439
372
\n
1
Other includes a $308 mill
ion
impa
irment charge relat
ing to the Group\u2019s investment in its associate China Bohai Bank (Bohai) to re\ufb02ect the challenges and
\n
uncertainty in the outlook for the banking industry and property markets in China ($300 mill
ion
in 2021)", "dimensions": { "concept": "stan:DisclosureOfGoodwillFixedAssetAndOtherImpairmentExplanatoryTextBlock", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f80330": { "value": "Accounting policy Refer to the below referenced notes for the relevant accounting policy.", "dimensions": { "concept": "stan:DescriptionOfAccountingPolicyForGoodwillPropertyPlantAndEquipmentAndOtherImpairmentExplanatoryPolicyTextBlock", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f80372": { "value": "10. Taxation \n
Accounting policy
\n
Income tax payable on pro\ufb01ts is based on the applicable tax law in each jur
isd
ict
ion and
is recognised as an expense in the
\n
period in which pro\ufb01ts arise.
\n
Deferred tax is provided on temporary differences aris
ing between the tax bases of assets and l
iab
il
it
ies and the
ir carrying
\n
amounts in the consolidated \ufb01nanc
ial statements. Deferred tax
is determined using tax rates (and laws) that have been
\n
enacted or substantively enacted as at the balance sheet date, and that are expected to apply when the related deferred
\n
tax asset is realised or the deferred income tax liab
il
ity is settled.
\n
Deferred tax assets are recognised where it is probable that future taxable pro\ufb01t will be available against which the
\n
temporary differences can be util
ised. Where perm
itted, deferred tax assets and liab
il
it
ies are offset on an ent
ity basis and
\n
not by component of deferred taxation.
\n
Current and deferred tax relating to items which are charged or credited directly to equity, is credited or charged directly to
\n
equity and is subsequently recognised in the income statement together with the current or deferred gain or loss.
\n
Other accounting estimates and judgements
\n
\u2022
Determin
ing the Group\u2019s tax charge for the year
involves estimat
ion and judgement, wh
ich includes an interpretat
ion of
\n
local tax laws and an assessment of whether the tax authorit
ies w
ill accept the posit
ion taken. These judgements take
\n
account of external advice where appropriate, and the Group\u2019s view on settling with the relevant tax authorit
ies
\n
\u2022
The Group provides for current tax liab
il
it
ies at the best est
imate of the amount that is expected to be paid to the tax
\n
authorit
ies where an out\ufb02ow
is probable. In making its estimates the Group assumes that the tax authorit
ies w
ill examine
\n
all the amounts reported to them and have full knowledge of all relevant informat
ion
\n
\u2022
The recoverabil
ity of the Group\u2019s deferred tax assets
is based on management\u2019s judgement of the availab
il
ity of future
\n
taxable pro\ufb01ts against which the deferred tax assets will be util
ised. In prepar
ing management forecasts the effect of
\n
applicable laws and regulations relevant to the util
isat
ion of future taxable pro\ufb01ts have been considered.
366
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
10. Taxation
continued
\n
The following table provides analysis of taxation charge in the year:
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
The charge for taxation based upon the pro\ufb01t for the year comprises:
\n
Current tax:
\n
United Kingdom corporation tax at 19 per cent (2021: 19 per cent):
\n
Current tax charge on income for the year
48
\u2013
\n
Adjustments in respect of prior years (includ
ing double tax rel
ief)
\u2013
9
\n
Foreign tax:
\n
Current tax charge on income for the year
1,216
896
\n
Adjustments in respect of prior years
5
(26)
\n
1,269
879
\n
Deferred tax:
\n
Orig
inat
ion/reversal of temporary differences
144
218
\n
Adjustments in respect of prior years
(29)
(63)
\n
115
155
\n
Tax on pro\ufb01ts on ordinary activ
it
ies
1,384
1,034
\n
Effective tax rate
32.3%
30.9%
\n
The tax charge for the year $1,384 mill
ion (31 December 2021: $1,034 m
ill
ion) on a pro\ufb01t before tax of $4,286 m
ill
ion (31 December
\n
2021: $3,347 mill
ion) re\ufb02ects the
impact of countries with tax rates higher or lower than the UK, the most sign
i\ufb01cant of wh
ich is
\n
India, non-deductible expenses and non-creditable withhold
ing taxes.
\n
Foreign tax includes current tax of $35 mill
ion (31 December 2021: $78 m
ill
ion) on the pro\ufb01ts assessable
in Hong Kong. Deferred
\n
tax includes orig
inat
ion or reversal of temporary differences of $51 mill
ion (31 December 2021: $39 m
ill
ion) prov
ided at a rate of
\n
16.5 per cent (31 December 2021: 16.5 per cent) on the pro\ufb01ts assessable in Hong Kong.
\n
The Organisat
ion for Econom
ic Co-operation and Development/G20 Inclusive Framework on Base Erosion and Pro\ufb01t Shift
ing
\n
seeks to address the tax challenges aris
ing from the d
ig
ital
isat
ion of the global economy. P
illar Two of the Global anti-Base
\n
Erosion rules represents the \ufb01rst substantial overhaul of internat
ional tax rules
in almost a century. It proposes four new taxing
\n
mechanisms under which multi-national enterprises would pay a min
imum level of tax. An
income inclus
ion rule, an under-taxed
\n
payment rule and a qualif
ied domest
ic min
imum top up tax together generally propose a m
in
imum tax of 15% on
income
\n
aris
ing
in each jur
isd
ict
ion
in which the multi-national enterprise operates. A subject to tax rule that is treaty-based generally
\n
proposes a min
imum tax on certa
in cross-border intercompany transactions. Enactment is currently expected to occur with
\n
effect from 1 January 2024. The Group is closely monitor
ing developments to assess potent
ial future impl
icat
ions and
\n
implementat
ion efforts.
\n
Tax rate:
The tax charge for the year is higher than the charge at the rate of corporation tax in the UK, 19 per cent. The
\n
differences are explained below:
\n
2022
2021
\n
$mill
ion
%
$mill
ion
%
\n
Pro\ufb01t on ordinary activ
it
ies before tax
4,286
3,347
\n
Tax at 19 per cent (2021: 19 per cent)
814
19.0
636
19.0
\n
Lower tax rates on overseas earnings
(122)
(2.8)
(93)
(2.8)
\n
Higher tax rates on overseas earnings
435
10.1
366
10.9
\n
Tax at domestic rates applicable where pro\ufb01ts earned
1,127
26.3
909
27.1
\n
Non-creditable withhold
ing taxes
90
2.1
120
3.6
\n
Tax exempt income
(69)
(1.6)
(85)
(2.5)
\n
Share of associates and jo
int ventures
(27)
(0.6)
(33)
(1.0)
\n
Non-deductible expenses
\n
1
\n
115
2.7
167
5.0
\n
Regulatory \ufb01ne
\u2013
\u2013
12
0.4
\n
Bank levy
19
0.4
19
0.6
\n
Non-taxable losses on investments
\n
1
\n
51
1.2
50
1.5
\n
Payments on \ufb01nancial
instruments in reserves
(56)
(1.3)
(62)
(1.9)
\n
Goodwill impa
irment
3
0.1
\u2013
\u2013
\n
Deferred tax not recognised
77
1.8
54
1.6
\n
Deferred tax assets written-off
\u2013
\u2013
1
\u2013
\n
Deferred tax rate changes
(9)
(0.2)
\u2013
\u2013
\n
Adjustments to tax charge in respect of prior years
(24)
(0.6)
(80)
(2.4)
\n
Other items
87
2.0
(38)
(1.1)
\n
Tax on pro\ufb01t on ordinary activ
it
ies
1,384
32.3
1,034
30.9
\n
1
The 2021 comparatives have been reclassif
ied as follows to al
ign with presentation in the current period: Non-taxable losses on investments from $nil to $50m,
\n
Non-deductible expenses from $217m to $167m
367
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
10. Taxation
continued
\n
Factors affecting the tax charge in future years: the Group\u2019s tax charge, and effective tax rate in future years could be affected
\n
by several factors includ
ing acqu
is
it
ions, disposals and restructuring of our businesses, the mix of pro\ufb01ts across jur
isd
ict
ions w
ith
\n
different statutory tax rates, changes in tax legislat
ion and tax rates and resolut
ion of uncertain tax posit
ions.
\n
The evaluation of uncertain tax posit
ions
involves an interpretat
ion of local tax laws wh
ich could be subject to challenge by a
\n
tax authority, and an assessment of whether the tax authorit
ies w
ill accept the posit
ion taken. The Group does not currently
\n
consider that assumptions or judgements made in assessing tax liab
il
it
ies have a s
ign
i\ufb01cant r
isk of resulting in a material
\n
adjustment with
in the next \ufb01nancial year.
\n
Tax recognised in other
\n
comprehensive income
\n
2022
2021
\n
Current tax
\n
$mill
ion
\n
Deferred tax
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Current tax
\n
$mill
ion
\n
Deferred tax
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Items that will not be reclassif
ied to
\n
income statement
\u2013
15
15
\u2013
(82)
(82)
\n
Own credit adjustment
\u2013
8
8
\u2013
(6)
(6)
\n
Equity instruments at fair value through
\n
other comprehensive income
\u2013
27
27
\u2013
(59)
(59)
\n
Retirement bene\ufb01t obligat
ions
\u2013
(20)
(20)
\u2013
(17)
(17)
\n
Items that may be reclassed
\n
subsequently to income statement
\u2013
152
152
\u2013
74
74
\n
Debt instruments at fair value through
\n
other comprehensive income
\u2013
63
63
\u2013
76
76
\n
Cash \ufb02ow hedges
\u2013
89
89
\u2013
(2)
(2)
\n
Total tax credit/(charge) recognised
\n
in\u00a0equity
\u2013
167
167
\u2013
(8)
(8)
\n
Current tax:
The following are the movements in current tax during the year:
\n
Current tax comprises:
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Current tax assets
766
808
\n
Current tax liab
il
it
ies
(348)
(660)
\n
Net current tax opening balance
418
148
\n
Movements in income statement
(1,269)
(879)
\n
Movements in other comprehensive income
\u2013
\u2013
\n
Taxes paid
821
1,161
\n
Other movements
(50)
(12)
\n
Net current tax balance as at 31 December
(80)
418
\n
Current tax assets
503
766
\n
Current tax liab
il
it
ies
(583)
(348)
\n
Total
(80)
418
\n
Deferred tax:
The following are the major deferred tax liab
il
it
ies and assets recogn
ised by the Group and movements thereon
\n
during the year:
\n
At
\n
1 January 2022
\n
$mill
ion
\n
Exchange
\n
& other
\n
adjustments
\n
$mill
ion
\n
(Charge)/credit
\n
to pro\ufb01t
\n
$mill
ion
\n
(Charge)/credit
\n
to equity
\n
$mill
ion
\n
At
\n
31 December 2022
\n
$mill
ion
\n
Deferred tax comprises:
\n
Accelerated tax depreciat
ion
(515)
(8)
(66)
\u2013
(589)
\n
Impairment provis
ions on loans and advances
351
(41)
24
\u2013
334
\n
Tax losses carried forward
263
16
(67)
\u2013
212
\n
Fair value through other comprehensive
\n
income
(126)
(1)
24
90
(13)
\n
Cash \ufb02ow hedges
\u2013
\u2013
\u2013
89
89
\n
Own credit adjustment
(3)
\u2013
\u2013
8
5
\n
Retirement bene\ufb01t obligat
ions
27
(5)
\u2013
(20)
2
\n
Share-based payments
32
\u2013
4
\u2013
36
\n
Other temporary differences
30
(7)
(34)
\u2013
(11)
\n
Net deferred tax assets
59
(46)
(115)
167
65
\n\n
368
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
10. Taxation
continued
\n
At
\n
1 January
\n
2021
\n
$mill
ion
\n
Exchange
\n
& other
\n
adjustments
\n
$mill
ion
\n
(Charge)/credit
\n
to pro\ufb01t
\n
$mill
ion
\n
(Charge)/credit
\n
to equity
\n
$mill
ion
\n
At
\n
31 December
\n
2021
\n
$mill
ion
\n
Deferred tax comprises:
\n
Accelerated tax depreciat
ion
(493)
4
(26)
\u2013
(515)
\n
Impairment provis
ions on loans and advances
419
12
(80)
\u2013
351
\n
Tax losses carried forward
282
(3)
(16)
\u2013
263
\n
Fair value through other comprehensive income
(146)
5
(2)
17
(126)
\n
Cash \ufb02ow hedges
2
\u2013
\u2013
(2)
\u2013
\n
Own credit adjustment
3
\u2013
\u2013
(6)
(3)
\n
Retirement bene\ufb01t obligat
ions
36
13
(5)
(17)
27
\n
Share-based payments
23
\u2013
9
\u2013
32
\n
Other temporary differences
98
(33)
(35)
\u2013
30
\n
Net deferred tax assets
224
(2)
(155)
(8)
59
\n
Deferred tax comprises assets and liab
il
it
ies as follows:
\n
2022
2021
\n
Total
\n
$mill
ion
\n
Asset
\n
$mill
ion
\n
Liab
il
ity
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Asset
\n
$mill
ion
\n
Liab
il
ity
\n
$mill
ion
\n
Deferred tax comprises:
\n
Accelerated tax depreciat
ion
(589)
1
(590)
(515)
18
(533)
\n
Impairment provis
ions on loans and
\n
advances
334
339
(5)
351
389
(38)
\n
Tax losses carried forward
212
90
122
263
172
91
\n
Fair value through other comprehensive
\n
income
(13)
45
(58)
(126)
(22)
(104)
\n
Cash \ufb02ow hedges
89
85
4
\u2013
(3)
3
\n
Own credit adjustment
5
(1)
6
(3)
(1)
(2)
\n
Retirement bene\ufb01t obligat
ions
2
15
(13)
27
16
11
\n
Share-based payments
36
5
31
32
\u2013
32
\n
Other temporary differences
(11)
255
(266)
30
290
(260)
\n
65
834
(769)
59
859
(800)
\n
At 31 December 2022, the Group has net deferred tax assets of $65 mill
ion (31 December 2021: $59 m
ill
ion). The recoverab
il
ity of
\n
the Group\u2019s deferred tax assets is based on management\u2019s judgement of the availab
il
ity of future taxable pro\ufb01ts against which
\n
the deferred tax assets will be util
ised.
\n
Of the Group\u2019s total deferred tax assets, $212 mill
ion relates to tax losses carr
ied forward. These tax losses have arisen in
\n
ind
iv
idual legal entit
ies and w
ill be offset as future taxable pro\ufb01ts arise in those entit
ies.
\n
\u2022
$113 mill
ion of the deferred tax assets relat
ing to losses has arisen in Ireland, where there is no expiry date for unused tax
\n
losses. These losses relate to aircraft leasing and are expected to be fully util
ised over the useful econom
ical life of the assets
\n
being up to 18 years.
\n
\u2022
$51 mill
ion of the deferred tax assets relat
ing to losses has arisen in the US. Management forecasts show that the losses are
\n
expected to be fully util
ised over a per
iod of two years.
\n
The remain
ing deferred tax assets of $48 m
ill
ion relat
ing to losses have arisen in other jur
isd
ict
ions and are expected to be
\n
recovered in less than 10 years.
\n
Unrecognised deferred tax
\n
Net
\n
2022
\n
$mill
ion
\n
Gross
\n
2022
\n
$mill
ion
\n
Net
\n
2021
\n
$mill
ion
\n
Gross
\n
2021
\n
$mill
ion
\n
No account has been taken of the following potential deferred tax
\n
assets/(liab
il
it
ies):
\n
Withhold
ing tax on unrem
itted earnings from overseas subsid
iar
ies
\n
and\u00a0associates
(507)
(6,434)
(426)
(5,544)
\n
Tax losses
1,980
8,231
2,104
8,292
\n
Held over gains on incorporation of overseas branches
(346)
(1,313)
(422)
(1,476)
\n
Other temporary differences
544
1,991
208
790 ", "dimensions": { "concept": "ifrs-full:DisclosureOfIncomeTaxExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f80376": { "value": "Accounting policy \n
Income tax payable on pro\ufb01ts is based on the applicable tax law in each jur
isd
ict
ion and
is recognised as an expense in the
\n
period in which pro\ufb01ts arise.
\n
Deferred tax is provided on temporary differences aris
ing between the tax bases of assets and l
iab
il
it
ies and the
ir carrying
\n
amounts in the consolidated \ufb01nanc
ial statements. Deferred tax
is determined using tax rates (and laws) that have been
\n
enacted or substantively enacted as at the balance sheet date, and that are expected to apply when the related deferred
\n
tax asset is realised or the deferred income tax liab
il
ity is settled.
\n
Deferred tax assets are recognised where it is probable that future taxable pro\ufb01t will be available against which the
\n
temporary differences can be util
ised. Where perm
itted, deferred tax assets and liab
il
it
ies are offset on an ent
ity basis and
\n
not by component of deferred taxation.
\n
Current and deferred tax relating to items which are charged or credited directly to equity, is credited or charged directly to
\n
equity and is subsequently recognised in the income statement together with the current or deferred gain or loss.
\n
Other accounting estimates and judgements
\n
\u2022
Determin
ing the Group\u2019s tax charge for the year
involves estimat
ion and judgement, wh
ich includes an interpretat
ion of
\n
local tax laws and an assessment of whether the tax authorit
ies w
ill accept the posit
ion taken. These judgements take
\n
account of external advice where appropriate, and the Group\u2019s view on settling with the relevant tax authorit
ies
\n
\u2022
The Group provides for current tax liab
il
it
ies at the best est
imate of the amount that is expected to be paid to the tax
\n
authorit
ies where an out\ufb02ow
is probable. In making its estimates the Group assumes that the tax authorit
ies w
ill examine
\n
all the amounts reported to them and have full knowledge of all relevant informat
ion
\n
\u2022
The recoverabil
ity of the Group\u2019s deferred tax assets
is based on management\u2019s judgement of the availab
il
ity of future
\n
taxable pro\ufb01ts against which the deferred tax assets will be util
ised. In prepar
ing management forecasts the effect of
\n
applicable laws and regulations relevant to the util
isat
ion of future taxable pro\ufb01ts have been considered.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f80885": { "value": "Deferred tax:
The following are the major deferred tax liab
il
it
ies and assets recogn
ised by the Group and movements thereon
\n
during the year:
\n
At
\n
1 January 2022
\n
$mill
ion
\n
Exchange
\n
& other
\n
adjustments
\n
$mill
ion
\n
(Charge)/credit
\n
to pro\ufb01t
\n
$mill
ion
\n
(Charge)/credit
\n
to equity
\n
$mill
ion
\n
At
\n
31 December 2022
\n
$mill
ion
\n
Deferred tax comprises:
\n
Accelerated tax depreciat
ion
(515)
(8)
(66)
\u2013
(589)
\n
Impairment provis
ions on loans and advances
351
(41)
24
\u2013
334
\n
Tax losses carried forward
263
16
(67)
\u2013
212
\n
Fair value through other comprehensive
\n
income
(126)
(1)
24
90
(13)
\n
Cash \ufb02ow hedges
\u2013
\u2013
\u2013
89
89
\n
Own credit adjustment
(3)
\u2013
\u2013
8
5
\n
Retirement bene\ufb01t obligat
ions
27
(5)
\u2013
(20)
2
\n
Share-based payments
32
\u2013
4
\u2013
36
\n
Other temporary differences
30
(7)
(34)
\u2013
(11)
\n
Net deferred tax assets
59
(46)
(115)
167
65
\n\n
\n\n\n
368
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
10. Taxation
continued
\n
At
\n
1 January
\n
2021
\n
$mill
ion
\n
Exchange
\n
& other
\n
adjustments
\n
$mill
ion
\n
(Charge)/credit
\n
to pro\ufb01t
\n
$mill
ion
\n
(Charge)/credit
\n
to equity
\n
$mill
ion
\n
At
\n
31 December
\n
2021
\n
$mill
ion
\n
Deferred tax comprises:
\n
Accelerated tax depreciat
ion
(493)
4
(26)
\u2013
(515)
\n
Impairment provis
ions on loans and advances
419
12
(80)
\u2013
351
\n
Tax losses carried forward
282
(3)
(16)
\u2013
263
\n
Fair value through other comprehensive income
(146)
5
(2)
17
(126)
\n
Cash \ufb02ow hedges
2
\u2013
\u2013
(2)
\u2013
\n
Own credit adjustment
3
\u2013
\u2013
(6)
(3)
\n
Retirement bene\ufb01t obligat
ions
36
13
(5)
(17)
27
\n
Share-based payments
23
\u2013
9
\u2013
32
\n
Other temporary differences
98
(33)
(35)
\u2013
30
\n
Net deferred tax assets
224
(2)
(155)
(8)
59
\n
Deferred tax comprises assets and liab
il
it
ies as follows:
\n
2022
2021
\n
Total
\n
$mill
ion
\n
Asset
\n
$mill
ion
\n
Liab
il
ity
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Asset
\n
$mill
ion
\n
Liab
il
ity
\n
$mill
ion
\n
Deferred tax comprises:
\n
Accelerated tax depreciat
ion
(589)
1
(590)
(515)
18
(533)
\n
Impairment provis
ions on loans and
\n
advances
334
339
(5)
351
389
(38)
\n
Tax losses carried forward
212
90
122
263
172
91
\n
Fair value through other comprehensive
\n
income
(13)
45
(58)
(126)
(22)
(104)
\n
Cash \ufb02ow hedges
89
85
4
\u2013
(3)
3
\n
Own credit adjustment
5
(1)
6
(3)
(1)
(2)
\n
Retirement bene\ufb01t obligat
ions
2
15
(13)
27
16
11
\n
Share-based payments
36
5
31
32
\u2013
32
\n
Other temporary differences
(11)
255
(266)
30
290
(260)
\n
65
834
(769)
59
859
(800)
\n
At 31 December 2022, the Group has net deferred tax assets of $65 mill
ion (31 December 2021: $59 m
ill
ion). The recoverab
il
ity of
\n
the Group\u2019s deferred tax assets is based on management\u2019s judgement of the availab
il
ity of future taxable pro\ufb01ts against which
\n
the deferred tax assets will be util
ised.
\n
Of the Group\u2019s total deferred tax assets, $212 mill
ion relates to tax losses carr
ied forward. These tax losses have arisen in
\n
ind
iv
idual legal entit
ies and w
ill be offset as future taxable pro\ufb01ts arise in those entit
ies.
\n
\u2022
$113 mill
ion of the deferred tax assets relat
ing to losses has arisen in Ireland, where there is no expiry date for unused tax
\n
losses. These losses relate to aircraft leasing and are expected to be fully util
ised over the useful econom
ical life of the assets
\n
being up to 18 years.
\n
\u2022
$51 mill
ion of the deferred tax assets relat
ing to losses has arisen in the US. Management forecasts show that the losses are
\n
expected to be fully util
ised over a per
iod of two years.
\n
The remain
ing deferred tax assets of $48 m
ill
ion relat
ing to losses have arisen in other jur
isd
ict
ions and are expected to be
\n
recovered in less than 10 years.
\n
Unrecognised deferred tax
\n
Net
\n
2022
\n
$mill
ion
\n
Gross
\n
2022
\n
$mill
ion
\n
Net
\n
2021
\n
$mill
ion
\n
Gross
\n
2021
\n
$mill
ion
\n
No account has been taken of the following potential deferred tax
\n
assets/(liab
il
it
ies):
\n
Withhold
ing tax on unrem
itted earnings from overseas subsid
iar
ies
\n
and\u00a0associates
(507)
(6,434)
(426)
(5,544)
\n
Tax losses
1,980
8,231
2,104
8,292
\n
Held over gains on incorporation of overseas branches
(346)
(1,313)
(422)
(1,476)
\n
Other temporary differences
544
1,991
208
790 ", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f81297": { "value": "11. Div
idends
\n
Accounting policy
\n
Div
idends on ord
inary shares and preference shares classif
ied as equ
ity are recognised in equity in the year in which they are
\n
declared. Div
idends on ord
inary equity shares are recorded in the year in which they are declared and, in respect of the \ufb01nal
\n
div
idend, have been approved by the shareholders.
\n
The Board considers a number of factors prior to div
idend declarat
ion which includes the rate of recovery in the Group\u2019s
\n
\ufb01nancial performance, the macroeconom
ic environment, and opportunit
ies to further
invest in our business and grow pro\ufb01tably
\n
in our markets.
\n
Ordinary equity shares
\n
2022
2021
\n
Cents per share
$mill
ion
Cents per share
$mill
ion
\n
2021/2020 \ufb01nal div
idend declared and pa
id during the year
9
274
9
282
\n
2022/2021 inter
im d
iv
idend declared and pa
id during the year
4
119
3
92
\n
Div
idends on ord
inary equity shares are recorded in the period in which they are declared and, in respect of the \ufb01nal div
idend,
\n
have been approved by the shareholders. Accordingly, the \ufb01nal ordinary equity share div
idends set out above relate to the
\n
respective prior years.
\n
2022 recommended \ufb01nal ordinary equity share div
idend
\n
The 2022 ordinary equity share div
idend recommended by the Board
is 14 cents per share. The \ufb01nanc
ial statements for the year
\n
ended 31 December 2022 do not re\ufb02ect this div
idend as th
is will be accounted for in shareholders\u2019 equity as an appropriat
ion of
\n
retained pro\ufb01ts in the year ending 31 December 2023.
\n
The div
idend w
ill be paid in either pounds sterling, Hong Kong dollars or US dollars on 11 May 2023 to shareholders on the UK
\n
register of members at the close of business in the UK on 24 February 2023.
\n
Preference shares and Addit
ional T
ier 1 securit
ies
\n
Div
idends on these preference shares and secur
it
ies class
if
ied as equ
ity are recorded in the period in which they are declared.
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Non-cumulative redeemable preference shares:
7.014 per cent preference shares of $5 each
53
53
\n
6.409 per cent preference shares of $5 each
20
13
\n
73
66
\n
Addit
ional T
ier 1 securit
ies: \ufb01xed rate resett
ing perpetual subordinated contingent convertible securit
ies
328
344
\n
401
410", "dimensions": { "concept": "ifrs-full:DisclosureOfDividendsExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f81302": { "value": "Accounting policy \n
Div
idends on ord
inary shares and preference shares classif
ied as equ
ity are recognised in equity in the year in which they are
\n
declared. Div
idends on ord
inary equity shares are recorded in the year in which they are declared and, in respect of the \ufb01nal
\n
div
idend, have been approved by the shareholders.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDividendsExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f81421": { "value": "12. Earnings per ordinary share \n
Accounting policy
\n
Basic earnings per ordinary share is calculated by div
id
ing the pro\ufb01t attributable to ordinary shareholders by the weighted
\n
average number of ordinary shares outstanding, excluding own shares held. Diluted earnings per ordinary share is calculated
\n
by div
id
ing the basic earnings, which require no adjustment for the effects of dilut
ive potent
ial ordinary shares, by the
\n
weighted average number of ordinary shares that would have been outstanding assuming the conversion of all dilut
ive
\n
potential ordinary shares, excluding own shares held.
\n
The Group also measures earnings per share on an underlying basis. This differs from earnings de\ufb01ned in IAS 33 Earnings per
\n
share. Underlying earnings is pro\ufb01t/(loss) attributable to ordinary shareholders adjusted for pro\ufb01ts or losses of a capital
\n
nature; amounts consequent to investment transactions driven by strategic intent; and other infrequent and/or exceptional
\n
transactions that are sign
i\ufb01cant or mater
ial in the context of the Group\u2019s normal business earnings for the year.
\n
The table below provides the basis of underlying earnings.
\n
2022
\n
$mill
ion
\n
2021
\n
(Restated)\u00b9
\n
$mill
ion
\n
Pro\ufb01t for the period attributable to equity holders
2,902
2,313
\n
Non-controlling interest
46
2
\n
Div
idend payable on preference shares and AT1 class
if
ied as equ
ity
(401)
(410)
\n
Pro\ufb01t for the period attributable to ordinary shareholders
2,547
1,905
\n
Items normalised:
\n
Provis
ion for regulatory matters
\u2013
62
\n
Restructuring
174
507
\n
Goodwill and other impa
irment (Note 9)
\n
1
\n
322
300
\n
Net gain on sale of businesses (Note 6)
(20)
(20)
\n
Tax on normalised items\u00b2
(24)
(87)
\n
Underlying pro\ufb01t
2,999
2,667
\n
Basic \u2013 Weighted average number of shares (mill
ions)
2,966
3,108
\n
Diluted \u2013 Weighted average number of shares (mill
ions)
3,023
3,154
\n
Basic earnings per ordinary share (cents)
85.9
61.3
\n
Diluted earnings per ordinary share (cents)
84.3
60.4
\n
Underlying basic earnings per ordinary share (cents)
101.1
85.8
\n
Underlying diluted earnings per ordinary share (cents)
99.2
84.6
\n
1
Other Impairment includes $308 mill
ion
impa
irment charge relat
ing to the Group\u2019s investment in its associate China Bohai Bank (Bohai). The 2021 comparative
\n
has been restated for consistency to reclassify the $300 mill
ion
impa
irment from Other
impa
irment w
ith
in Underly
ing pro\ufb01t which has resulted in the restatement
\n
of Underlying basic earnings per ordinary share (cents) and Underlying diluted earnings per ordinary share (cents)
\n
2
No tax is included in respect of Goodwill and other impa
irment as no tax rel
ief is available", "dimensions": { "concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f81425": { "value": "Accounting policy \n
Basic earnings per ordinary share is calculated by div
id
ing the pro\ufb01t attributable to ordinary shareholders by the weighted
\n
average number of ordinary shares outstanding, excluding own shares held. Diluted earnings per ordinary share is calculated
\n
by div
id
ing the basic earnings, which require no adjustment for the effects of dilut
ive potent
ial ordinary shares, by the
\n
weighted average number of ordinary shares that would have been outstanding assuming the conversion of all dilut
ive
\n
potential ordinary shares, excluding own shares held.
\n
The Group also measures earnings per share on an underlying basis. This differs from earnings de\ufb01ned in IAS 33 Earnings per
\n
share. Underlying earnings is pro\ufb01t/(loss) attributable to ordinary shareholders adjusted for pro\ufb01ts or losses of a capital
\n
nature; amounts consequent to investment transactions driven by strategic intent; and other infrequent and/or exceptional
\n
transactions that are sign
i\ufb01cant or mater
ial in the context of the Group\u2019s normal business earnings for the year.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEarningsPerShareExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f81546": { "value": "13. Financ
ial
instruments
\n
Classif
icat
ion and measurement
\n
Accounting policy
\n
The Group classif
ies
its \ufb01nanc
ial assets
into the following measurement categories: amortised cost; fair value through other
\n
comprehensive income (FVOCI); and fair value through pro\ufb01t or loss. Financ
ial l
iab
il
it
ies are class
if
ied as e
ither amortised
\n
cost, or held at fair value through pro\ufb01t or loss. Management determines the classif
icat
ion of its \ufb01nanc
ial assets and l
iab
il
it
ies
\n
at in
it
ial recognit
ion of the
instrument or, where applicable, at the time of reclassif
icat
ion.
\n
Financ
ial assets held at amort
ised cost and fair value through other comprehensive income
\n
Debt instruments held at amortised cost or held at FVOCI have contractual terms that give rise to cash \ufb02ows that are solely
\n
payments of princ
ipal and
interest (SPPI) characterist
ics. Pr
inc
ipal
is the fair value of the \ufb01nanc
ial asset at
in
it
ial recognit
ion
\n
but this may change over the life of the instrument as amounts are repaid. Interest consists of considerat
ion for the t
ime
\n
value of money, for the credit risk associated with the princ
ipal amount outstand
ing during a particular period and for other
\n
basic lending risks and costs, as well as a pro\ufb01t margin.
\n
In assessing whether the contractual cash \ufb02ows have SPPI characterist
ics, the Group cons
iders the contractual terms of the
\n
instrument. This includes assessing whether the \ufb01nanc
ial asset conta
ins a contractual term that could change the tim
ing or
\n
amount of contractual cash \ufb02ows such that it would not meet this condit
ion. In mak
ing the assessment, the Group considers:
\n
\u2022
Contingent events that would change the amount and tim
ing of cash \ufb02ows
\n
\u2022 Leverage features
\n
\u2022
Prepayment and extension terms
\n
\u2022
Terms that lim
it the Group\u2019s cla
im to cash \ufb02ows from specif
ied assets (e.g. non-recourse asset arrangements);
\n
\u2022
Features that modify considerat
ion of the t
ime value of money \u2013 e.g. period
ical reset of
interest rates
\n
Whether \ufb01nancial assets are held at amort
ised cost or at FVOCI depends on the object
ives of the bus
iness models under
\n
which the assets are held. A business model refers to how the Group manages \ufb01nanc
ial assets to generate cash \ufb02ows.
\n
The Group makes an assessment of the objective of a bus
iness model in which an asset is held at the ind
iv
idual product
\n
business line, and where applicable with
in bus
iness lines depending on the way the business is managed and informat
ion
is
\n
provided to management. Factors considered include:
\n
\u2022
How the performance of the product business line is evaluated and reported to the Group\u2019s management
\n
\u2022
How managers of the business model are compensated, includ
ing whether management
is compensated based on the
\n
fair value of assets or the contractual cash \ufb02ows collected
\n
\u2022
The risks that affect the performance of the business and how those risks are managed
\n
\u2022
The frequency, volume and tim
ing of sales
in prior periods, the reasons for such sales and expectations about future sales
\n
activ
ity
\n
The Group\u2019s business model assessment is as follows:
\n
Business model
Business object
ive
Characterist
ics
Businesses
Products
\n
Hold to
\n
collect
\n
Intent is to orig
inate
\n
\ufb01nancial assets and
\n
hold them to maturity,
\n
collecting the
\n
contractual cash \ufb02ows
\n
over the term of the
\n
instrument
\n
\u2022 Provid
ing \ufb01nancing and
\n
orig
inat
ing assets to earn interest
\n
income as primary income stream
\n
\u2022 Performing credit risk
\n
management activ
it
ies
\n
\u2022
Costs include funding costs,
\n
transaction costs and impa
irment
\n
losses
\n
\u2022 Corporate Lending
\n
\u2022 Financ
ial Markets
\n
\u2022 Transaction Banking
\n
\u2022 Retail Lending
\n
\u2022 Treasury Markets
\n
(Loans and
\n
Borrowings)
\n
\u2022 Loans and advances
\n
\u2022 Debt securit
ies
\n
Hold to
\n
collect
\n
and sell
\n
Business object
ive met
\n
through both hold to
\n
collect and by selling
\n
\ufb01nancial assets
\n
\u2022
Portfolios held for liqu
id
ity needs;
\n
or where a certain interest yield
\n
pro\ufb01le is mainta
ined; or that are
\n
normally rebalanced to achieve
\n
matching of duration of assets
\n
and liab
il
it
ies
\n
\u2022
Income streams come from
\n
interest income, fair value
\n
changes, and impa
irment losses
\n
\u2022 Treasury Markets
\u2022 Debt securit
ies
\n
Fair value
\n
through
\n
pro\ufb01t or loss
\n
All other business
\n
objectives,
includ
ing
\n
trading and managing
\n
\ufb01nancial assets on a fa
ir
\n
value basis
\n
\u2022
Assets held for trading
\n
\u2022
Assets that are orig
inated,
\n
purchased, and sold for pro\ufb01t
\n
taking or underwrit
ing act
iv
ity
\n
\u2022
Performance of the portfolio is
\n
evaluated on a fair value basis
\n
\u2022
Income streams are from fair
\n
value changes or trading gains or
\n
losses
\n
\u2022 Financ
ial Markets
\u2022 Trading portfolios
\n
\u2022 Financ
ial Markets
\n
reverse repos
\n
\u2022 Financ
ial Markets
\n
(FM Bond and Loan
\n
Syndicat
ion)
372
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
13. Financ
ial
instruments
continued
\n
Financ
ial assets wh
ich have SPPI characterist
ics and that are held w
ith
in a bus
iness model whose object
ive
is to hold
\n
\ufb01nancial assets to collect contractual cash\ufb02ows (hold to collect) are recorded at amort
ised cost. Conversely, \ufb01nanc
ial assets
\n
which have SPPI characterist
ics but are held w
ith
in a bus
iness model whose object
ive
is achieved by both collecting
\n
contractual cash\ufb02ows and selling \ufb01nanc
ial assets (Hold to collect and sell) are class
if
ied as held at FVOCI. Both hold to
\n
collect and hold to collect and sell business models involve holding \ufb01nanc
ial assets to collect the contractual cash\ufb02ows.
\n
However, the business models are dist
inct by reference to the frequency and s
ign
i\ufb01cance that asset sales play
in meeting the
\n
objective under wh
ich a particular group of \ufb01nanc
ial assets
is managed. Hold to collect business models are characterised by
\n
asset sales that are inc
idental to meet
ing the object
ives under wh
ich a group of assets is managed. Sales of assets under a
\n
hold to collect business model can be made to manage increases in the credit risk of \ufb01nanc
ial assets but sales for other
\n
reasons should be infrequent or ins
ign
if
icant. Cash\ufb02ows from the sale of \ufb01nancial assets under a hold to collect and sell
\n
business model by contrast are integral to achiev
ing the objectives under wh
ich a particular group of \ufb01nanc
ial assets are
\n
managed. This may be the case where frequent sales of \ufb01nanc
ial assets are requ
ired to manage the Group\u2019s daily liqu
id
ity
\n
requirements or to meet regulatory requirements to demonstrate liqu
id
ity of \ufb01nanc
ial
instruments. Sales of assets under hold
\n
to collect and sell business models are therefore both more frequent and more sign
i\ufb01cant
in value than those under the hold
\n
to collect model.
\n
Equity instruments designated as held at FVOCI
\n
Non-trading equity instruments acquired for strategic purposes rather than capital gain may be irrevocably designated at
\n
in
it
ial recognit
ion as held at FVOCI on an
instrument-by-instrument basis. Div
idends rece
ived are recognised in pro\ufb01t or loss.
\n
Gains and losses aris
ing from changes
in the fair value of these instruments, includ
ing fore
ign exchange gains and losses, are
\n
recognised directly in equity and are never reclassif
ied to pro\ufb01t or loss even on derecogn
it
ion.
\n
Financ
ial assets and l
iab
il
it
ies held at fa
ir value through pro\ufb01t or loss
\n
Financ
ial assets wh
ich are not held at amortised cost or that are not held at FVOCI are held at fair value through pro\ufb01t or
\n
loss. Financ
ial assets and l
iab
il
it
ies held at fa
ir value through pro\ufb01t or loss are either mandatorily classif
ied as fa
ir value
\n
through pro\ufb01t or loss or irrevocably designated at fair value through pro\ufb01t or loss at in
it
ial recognit
ion.
\n
Mandatorily classif
ied at fa
ir value through pro\ufb01t or loss
\n
Financ
ial assets and l
iab
il
it
ies wh
ich are mandatorily held at fair value through pro\ufb01t or loss are split between two
\n
subcategories as follows:
\n
Trading, includ
ing:
\n
\u2022
Financ
ial assets and l
iab
il
it
ies held for trad
ing, which are those acquired princ
ipally for the purpose of sell
ing in the
\n
short-term
\n
\u2022 Derivat
ives
\n
Non-trading mandatorily at fair value through pro\ufb01t or loss, includ
ing:
\n
\u2022
Instruments in a business which has a fair value business model (see the Group\u2019s business model assessment) which are not
\n
trading or derivat
ives
\n
\u2022
Hybrid \ufb01nanc
ial assets that conta
in one or more embedded derivat
ives
\n
\u2022
Financ
ial assets that would otherw
ise be measured at amortised cost or FVOCI but which do not have SPPI characterist
ics
\n
\u2022
Equity instruments that have not been designated as held at FVOCI
\n
\u2022
Financ
ial l
iab
il
it
ies that const
itute contingent considerat
ion
in a business combinat
ion
\n
Designated at fair value through pro\ufb01t or loss
\n
Financ
ial assets and l
iab
il
it
ies may be des
ignated at fair value through pro\ufb01t or loss when the designat
ion el
im
inates or
\n
sign
i\ufb01cantly reduces a measurement or recogn
it
ion
incons
istency that would otherw
ise arise from measuring assets or
\n
liab
il
it
ies on a d
ifferent basis (\u2018accounting mismatch\u2019).
\n
Financ
ial l
iab
il
it
ies may also be des
ignated at fair value through pro\ufb01t or loss where they are managed on a fair value basis
\n
or have an embedded derivat
ive where the Group
is not able to bifurcate and separately value the embedded derivat
ive
\n
component.
\n
Financ
ial l
iab
il
it
ies held at amort
ised cost
\n
Financ
ial l
iab
il
it
ies that are not \ufb01nancial guarantees or loan comm
itments and that are not classif
ied as \ufb01nancial l
iab
il
it
ies
\n
held at fair value through pro\ufb01t or loss are classif
ied as \ufb01nancial l
iab
il
it
ies held at amort
ised cost.
\n
Preference shares which carry a mandatory coupon that represents a market rate of interest at the issue date, or which are
\n
redeemable on a specif
ic date or at the opt
ion of the shareholder are classif
ied as \ufb01nancial l
iab
il
it
ies and are presented
in
\n
other borrowed funds. The div
idends on these preference shares are recogn
ised in the income statement as interest expense
\n
on an amortised cost basis using the effective interest method.
373
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
13. Financ
ial
instruments
continued
\n
Financ
ial guarantee contracts and loan comm
itments
\n
The Group issues \ufb01nanc
ial guarantee contracts and loan comm
itments in return for fees. Financ
ial guarantee contracts and
\n
any loan commitments issued at below-market interest rates are in
it
ially recognised at their fair value as a \ufb01nanc
ial l
iab
il
ity,
\n
and subsequently measured at the higher of the in
it
ial value less the cumulative amount of income recognised in accordance
\n
with the princ
iples of IFRS 15 Revenue from Contracts w
ith Customers and their expected credit loss provis
ion. Loan
\n
commitments may be designated at fair value through pro\ufb01t or loss where that is the business model under which such
\n
contracts are held.
\n
Fair value of \ufb01nanc
ial assets and l
iab
il
it
ies
\n
Fair value is the price that would be received to sell an asset or paid to transfer a liab
il
ity in an orderly transaction between
\n
market partic
ipants at the measurement date
in the princ
ipal market for the asset or l
iab
il
ity, or in the absence of a princ
ipal
\n
market, the most advantageous market to which the Group has access at the date. The fair value of a liab
il
ity includes the
\n
risk that the bank will not be able to honour its obligat
ions.
\n
The fair value of \ufb01nanc
ial
instruments is generally measured on the basis of the ind
iv
idual \ufb01nanc
ial
instrument. However,
\n
when a group of \ufb01nancial assets and \ufb01nancial l
iab
il
it
ies
is managed on the basis of its net exposure to either market risk or
\n
credit risk, the fair value of the group of \ufb01nanc
ial
instruments is measured on a net basis.
\n
The fair values of quoted \ufb01nanc
ial assets and l
iab
il
it
ies
in active markets are based on current prices. A market is regarded as
\n
active if transactions for the asset or liab
il
ity take place with suf\ufb01c
ient frequency and volume to prov
ide pric
ing
informat
ion
\n
on an ongoing basis. If the market for a \ufb01nanc
ial
instrument, and for unlisted securit
ies,
is not active, the Group establishes
\n
fair value by using valuation techniques.
\n
Init
ial recogn
it
ion
\n
Regular way purchases and sales of \ufb01nancial assets held at fa
ir value through pro\ufb01t or loss, and held at fair value through
\n
other comprehensive income are in
it
ially recognised on the trade date (the date on which the Group commits to purchase or
\n
sell the asset). Loans and advances and other \ufb01nancial assets held at amort
ised cost are recognised on the settlement date
\n
(the date on which cash is advanced to the borrowers).
\n
All \ufb01nancial
instruments are in
it
ially recognised at fair value, which is normally the transaction price, plus directly attributable
\n
transaction costs for \ufb01nanc
ial assets and l
iab
il
it
ies wh
ich are not subsequently measured at fair value through pro\ufb01t or loss.
\n
In certain circumstances, the in
it
ial fair value may be based on a valuation technique which may lead to the recognit
ion of
\n
pro\ufb01ts or losses at the time of in
it
ial recognit
ion. However, these pro\ufb01ts or losses can only be recogn
ised when the valuation
\n
technique used is based solely on observable market data. In those cases where the in
it
ially recognised fair value is based on
\n
a valuation model that uses unobservable inputs, the difference between the transaction price and the valuation model is
\n
not recognised immed
iately
in the income statement but is amortised or released to the income statement following the
\n
passage of time, or as the inputs become observable, or the transaction matures or is terminated.
\n
Subsequent measurement
\n
Financ
ial assets and \ufb01nancial l
iab
il
it
ies held at amort
ised cost
\n
Financ
ial assets and \ufb01nancial l
iab
il
it
ies held at amort
ised cost are subsequently carried at amortised cost using the effective
\n
interest method (see Interest income and expense). Foreign exchange gains and losses are recognised in the income
\n
statement.
\n
Where a \ufb01nancial
instrument carried at amortised cost is the hedged item in a qualify
ing fa
ir value hedge relationsh
ip,
its
\n
carrying value is adjusted by the fair value gain or loss attributable to the hedged risk.
\n
Financ
ial assets held at FVOCI
\n
Debt instruments held at FVOCI are subsequently carried at fair value, with all unrealised gains and losses aris
ing from
\n
changes in fair value (includ
ing any related fore
ign exchange gains or losses) recognised in other comprehensive income and
\n
accumulated in a separate component of equity. Foreign exchange gains and losses on the amortised cost are recognised in
\n
income. Changes in expected credit losses are recognised in the pro\ufb01t or loss and are accumulated in equity. On
\n
derecognit
ion, the cumulat
ive fair value gains or losses, net of the cumulative expected credit loss reserve, are transferred to
\n
the pro\ufb01t or loss.
\n
Equity investments designated at FVOCI are subsequently carried at fair value with all unrealised gains and losses aris
ing
\n
from changes in fair value (includ
ing any related fore
ign exchange gains or losses) recognised in other comprehensive
\n
income and accumulated in a separate component of equity. On derecognit
ion, the cumulat
ive reserve is transferred to
\n
retained earnings and is not recycled to pro\ufb01t or loss.
\n
Financ
ial assets and l
iab
il
it
ies held at fa
ir value through pro\ufb01t or loss
\n
Financ
ial assets and l
iab
il
it
ies mandator
ily held at fair value through pro\ufb01t or loss and \ufb01nanc
ial assets des
ignated at fair
\n
value through pro\ufb01t or loss are subsequently carried at fair value, with gains and losses aris
ing from changes
in fair value,
\n
includ
ing contractual
interest income or expense, recorded in the net trading income line in the pro\ufb01t or loss unless the
\n
instrument is part of a cash \ufb02ow hedging relationsh
ip.
374
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
13. Financ
ial
instruments
continued
\n
Financ
ial l
iab
il
it
ies des
ignated at fair value through pro\ufb01t or loss
\n
Financ
ial l
iab
il
it
ies des
ignated at fair value through pro\ufb01t or loss are held at fair value, with changes in fair value recognised
\n
in the net trading income line in the pro\ufb01t or loss, other than that attributable to changes in credit risk. Fair value changes
\n
attributable to credit risk are recognised in other comprehensive income and recorded in a separate category of reserves
\n
unless this is expected to create or enlarge an accounting mismatch, in which case the entire change in fair value of the
\n
\ufb01nancial l
iab
il
ity designated at fair value through pro\ufb01t or loss is recognised in pro\ufb01t or loss.
\n
Derecognit
ion of \ufb01nancial
instruments
\n
Financ
ial assets are derecogn
ised when the rights to receive cash \ufb02ows from the \ufb01nanc
ial assets have exp
ired or where the
\n
Group has transferred substantially all risks and rewards of ownership. If substantially all the risks and rewards have been
\n
neither retained nor transferred and the Group has retained control, the assets continue to be recognised to the extent of the
\n
Group\u2019s continu
ing
involvement.
\n
Where \ufb01nancial assets have been mod
if
ied, the mod
if
ied terms are assessed on a qual
itat
ive and quant
itat
ive bas
is to
\n
determine whether a fundamental change in the nature of the instrument has occurred, such as whether the derecognit
ion
\n
of the pre-exist
ing
instrument and the recognit
ion of a new
instrument is appropriate.
\n
On derecognit
ion of a \ufb01nancial asset, the d
ifference between the carrying amount of the asset (or the carrying amount
\n
allocated to the portion of the asset derecognised) and the sum of the considerat
ion rece
ived (includ
ing any new asset
\n
obtained less any new liab
il
ity assumed) and any cumulative gain or loss that had been recognised in other comprehensive
\n
income is recognised in pro\ufb01t or loss except for equity instruments elected FVOCI (see above) and cumulative fair value
\n
adjustments attributable to the credit risk of a liab
il
ity that are held in other comprehensive income.
\n
Financ
ial l
iab
il
it
ies are derecogn
ised when they are extingu
ished. A \ufb01nancial l
iab
il
ity is extingu
ished when the obl
igat
ion
is
\n
discharged, cancelled or expires and this is evaluated both qualitat
ively and quant
itat
ively. However, where a \ufb01nancial
\n
liab
il
ity has been modif
ied,
it is derecognised if the difference between the modif
ied cash \ufb02ows and the or
ig
inal cash \ufb02ows
is
\n
more than 10 per cent, or if less than 10 per cent, the Group will perform a qualitat
ive assessment to determ
ine whether the
\n
terms of the two instruments are substantially different.
\n
If the Group purchases its own debt, it is derecognised and the difference between the carrying amount of the liab
il
ity and
\n
the considerat
ion pa
id is included in \u2018Other income\u2019 except for the cumulative fair value adjustments attributable to the
\n
credit risk of a liab
il
ity that are held in other comprehensive income which are never recycled to the pro\ufb01t or loss.
\n
Modif
ied \ufb01nancial
instruments
\n
Financ
ial assets and \ufb01nancial l
iab
il
it
ies whose or
ig
inal contractual terms have been mod
if
ied,
includ
ing those loans subject
\n
to forbearance strategies, are considered to be modif
ied
instruments. Modif
icat
ions may include changes to the tenor, cash
\n
\ufb02ows and or interest rates among other factors.
\n
Where derecognit
ion of \ufb01nancial assets
is appropriate (see Derecognit
ion), the newly recogn
ised residual loans are assessed
\n
to determine whether the assets should be classif
ied as purchased or or
ig
inated Cred
it-Impaired assets (POCI).
\n
Where derecognit
ion
is not appropriate, the gross carrying amount of the applicable instruments is recalculated as the
\n
present value of the renegotiated or modif
ied contractual cash \ufb02ows d
iscounted at the orig
inal effect
ive interest rate (or
\n
credit adjusted effective interest rate for POCI \ufb01nanc
ial assets). The d
ifference between the recalculated values and the
\n
pre-modif
ied gross carry
ing values of the instruments are recorded as a modif
icat
ion gain or loss in the pro\ufb01t or loss.
\n
Gains and losses aris
ing from mod
if
icat
ions for credit reasons are recorded as part of \u2018Credit Impairment\u2019 (see Credit
\n
Impairment policy). Modif
icat
ion gains and losses aris
ing from non-cred
it reasons are recognised either as part of \u201cCredit
\n
Impairment\u201d or with
in
income depending on whether there has been a change in the credit risk on the \ufb01nanc
ial asset
\n
subsequent to the modif
icat
ion. Modif
icat
ion gains and losses aris
ing on \ufb01nancial l
iab
il
it
ies are recogn
ised with
in
income.
\n
The movements in the applicable expected credit loss loan posit
ions are d
isclosed in further detail in Risk Review.
\n
Under the Phase 2 Interest Rate Benchmark Reform amendments to IFRS 9, changes to the basis for determin
ing contractual
\n
cash \ufb02ows as a direct result of interest rate benchmark reform are treated as changes to a \ufb02oating interest rate to that
\n
instrument, provided that the transit
ion from the IBOR benchmark rate to the alternat
ive RFR takes place on an economically
\n
equivalent basis. Where the instrument is measured at amortised cost or FVOCI, this results in a change in the instrument\u2019s
\n
effective interest rate, with no change in the amortised cost value of the instrument. If the change to the instrument does not
\n
meet these criter
ia, the Group appl
ies judgement to assess whether the changes are substantial and if they are, the \ufb01nanc
ial
\n
instrument is derecognised and a new \ufb01nanc
ial
instrument is recognised. If the changes are not substantial, the Group
\n
adjusts the gross carrying amount of the \ufb01nanc
ial
instrument by the present value of the changes not covered by the
\n
practical expedient, discounted using the revised effective interest rate.
375
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
13. Financ
ial
instruments
continued
\n
Reclassif
icat
ions
\n
Financ
ial l
iab
il
it
ies are not reclass
if
ied subsequent to
in
it
ial recognit
ion. Reclass
if
icat
ions of \ufb01nanc
ial assets are made when,
\n
and only when, the business model for those assets changes. Such changes are expected to be infrequent and arise as a
\n
result of sign
i\ufb01cant external or
internal changes such as the terminat
ion of a l
ine of business or the purchase of a subsid
iary
\n
whose business model is to realise the value of pre-exist
ing held for trad
ing \ufb01nanc
ial assets through a hold to collect model.
\n
Financ
ial assets are reclass
if
ied at the
ir fair value on the date of reclassif
icat
ion and previously recognised gains and losses
\n
are not restated. Moreover, reclassif
icat
ions of \ufb01nanc
ial assets between \ufb01nancial assets held at amort
ised cost and \ufb01nanc
ial
\n
assets held at fair value through other comprehensive income do not affect effective interest rate or expected credit loss
\n
computations.
\n
Reclassif
ied from amort
ised cost
\n
Where \ufb01nancial assets held at amort
ised cost are reclassif
ied to \ufb01nancial assets held at fa
ir value through pro\ufb01t or loss, the
\n
difference between the fair value of the assets at the date of reclassif
icat
ion and the previously recognised amortised cost is
\n
recognised in pro\ufb01t or loss.
\n
For \ufb01nancial assets held at amort
ised cost that are reclassif
ied to fa
ir value through other comprehensive income, the
\n
difference between the fair value of the assets at the date of reclassif
icat
ion and the previously recognised gross carrying
\n
value is recognised in other comprehensive income. Addit
ionally, the related cumulat
ive expected credit loss amounts
\n
relating to the reclassif
ied \ufb01nancial assets are reclass
if
ied from loan loss prov
is
ions to a separate reserve
in other
\n
comprehensive income at the date of reclassif
icat
ion.
\n
Reclassif
ied from fa
ir value through other comprehensive income
\n
Where \ufb01nancial assets held at fa
ir value through other comprehensive income are reclassif
ied to \ufb01nancial assets held at fa
ir
\n
value through pro\ufb01t or loss, the cumulative gain or loss previously recognised in other comprehensive income is transferred to
\n
the pro\ufb01t or loss.
\n
For \ufb01nancial assets held at fa
ir value through other comprehensive income that are reclassif
ied to \ufb01nancial assets held at
\n
amortised cost, the cumulative gain or loss previously recognised in other comprehensive income is adjusted against the fair
\n
value of the \ufb01nancial asset such that the \ufb01nancial asset
is recorded at a value as if it had always been held at amortised cost.
\n
In addit
ion, the related cumulat
ive expected credit losses held with
in other comprehens
ive income are reversed against the
\n
gross carrying value of the reclassif
ied assets at the date of reclass
if
icat
ion.
\n
Reclassif
ied from fa
ir value through pro\ufb01t or loss
\n
Where \ufb01nancial assets held at fa
ir value through pro\ufb01t or loss are reclassif
ied to \ufb01nancial assets held at fa
ir value through
\n
other comprehensive income or \ufb01nanc
ial assets held at amort
ised cost, the fair value at the date of reclassif
icat
ion is used to
\n
determine the effective interest rate on the \ufb01nanc
ial asset go
ing forward. In addit
ion, the date of reclass
if
icat
ion is used as
\n
the date of in
it
ial recognit
ion for the calculat
ion of expected credit losses. Where \ufb01nanc
ial assets held at fa
ir value through
\n
pro\ufb01t or loss are reclassif
ied to \ufb01nancial assets held at amort
ised cost, the fair value at the date of reclassif
icat
ion becomes
\n
the gross carrying value of the \ufb01nanc
ial asset.
376
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
13. Financ
ial
instruments
continued
\n
The Group\u2019s classif
icat
ion of its \ufb01nanc
ial assets and l
iab
il
it
ies
is summarised in the following tables.
\n
Assets
Notes
\n
Assets at fair value
\n
Assets
\n
held at
\n
amortised
\n
cost
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Trading
\n
$mill
ion
\n
Derivat
ives
\n
held for
\n
hedging
\n
$mill
ion
\n
Non-trading
\n
mandatorily
\n
at fair value
\n
through
\n
pro\ufb01t or loss
\n
$mill
ion
\n
Designated
\n
at fair value
\n
through
\n
pro\ufb01t or loss
\n
$mill
ion
\n
Fair value
\n
through other
\n
comprehensive
\n
income
\n
$mill
ion
\n
Total
\n
\ufb01nancial
\n
assets at
\n
fair value
\n
$mill
ion
\n
Cash and balances at
\n
central banks
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
58,263
58,263
\n
Financ
ial assets held at fa
ir
\n
value through pro\ufb01t or loss
\n
Loans and advances
\n
to banks\u00b9
976
\u2013
\u2013
\u2013
\u2013
976
\u2013
976
\n
Loans and advances
\n
to customers\u00b9
5,765
\u2013
781
\u2013
\u2013
6,546
\u2013
6,546
\n
Reverse repurchase
\n
agreements and other
\n
sim
ilar secured lend
ing
16
1,175
\u2013
63,316
\u2013
\u2013
64,491
\u2013
64,491
\n
Debt securit
ies,
\n
alternative tier one
\n
and other elig
ible b
ills
30,162
\u2013
324
76
\u2013
30,562
\u2013
30,562
\n
Equity shares
2,997
\u2013
233
\u2013
\u2013
3,230
\u2013
3,230
\n
Other assets
\u2013
\u2013
7
\u2013
\u2013
7
\u2013
7
\n
41,075
\u2013
64,661
76
\u2013
105,812
\u2013
105,812
\n
Derivat
ive \ufb01nancial
\n
instruments
14
60,858
2,859
\u2013
\u2013
\u2013
63,717
\u2013
63,717
\n
Loans and advances
\n
to banks\u00b9
15
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
39,519
39,519
\n
of which \u2013 reverse
\n
repurchase agreements
\n
and other sim
ilar
\n
secured lending
16
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
978
978
\n
Loans and advances
\n
to customers\u00b9
15
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
310,647
310,647
\n
of which \u2013 reverse
\n
repurchase agreements
\n
and other sim
ilar
\n
secured lending
16
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
24,498
24,498
\n
Investment securit
ies
\n
Debt securit
ies,
\n
alternative tier one
\n
and other elig
ible b
ills
\u2013
\u2013
\u2013
\u2013
111,926
111,926
59,714
171,640
\n
Equity shares
\u2013
\u2013
\u2013
\u2013
808
808
\u2013
808
\n
\u2013
\u2013
\u2013
\u2013
112,734
112,734
59,714
172,448
\n
Other assets
20
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
39,295
39,295
\n
Assets held for sale
21
\u2013
\u2013
\u2013
3
\u2013
3
1,388
1,391
\n
Total at 31 December 2022
101,933
2,859
64,661
79
112,734
282,266
508,826
791,092
\n
1
Further analysed in Risk review and Capital review (pages 236 to 325)
377
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
13. Financ
ial
instruments
continued
\n
Assets
Notes
\n
Assets at fair value
\n
Assets
\n
held at
\n
amortised
\n
cost
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Trading
\n
$mill
ion
\n
Derivat
ives
\n
held for
\n
hedging
\n
$mill
ion
\n
Non-trading
\n
mandatorily
\n
at fair value
\n
through
\n
pro\ufb01t or loss
\n
$mill
ion
\n
Designated
\n
at fair value
\n
through
\n
pro\ufb01t or loss
\n
$mill
ion
\n
Fair value
\n
through other
\n
comprehensive
\n
income
\n
$mill
ion
\n
Total
\n
\ufb01nancial
\n
assets at
\n
fair value
\n
$mill
ion
\n
Cash and balances at
\n
central banks
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
72,663
72,663
\n
Financ
ial assets held at fa
ir
\n
value through pro\ufb01t or loss
\n
Loans and advances
\n
to banks\u00b9
1,491
\u2013
2,356
\u2013
\u2013
3,847
\u2013
3,847
\n
Loans and advances
\n
to customers\u00b9
5,813
\u2013
4,140
\u2013
\u2013
9,953
\u2013
9,953
\n
Reverse repurchase
\n
agreements and other
\n
sim
ilar secured lend
ing
16
\u2013
\u2013
80,009
\u2013
\u2013
80,009
\u2013
80,009
\n
Debt securit
ies,
\n
alternative tier one
\n
and other elig
ible b
ills
28,801
\u2013
463
161
\u2013
29,425
\u2013
29,425
\n
Equity shares
5,653
\u2013
208
\u2013
\u2013
5,861
\u2013
5,861
\n
Other assets
\u2013
\u2013
26
\u2013
\u2013
26
\u2013
26
\n
41,758
\u2013
87,202
161
\u2013
129,121
\u2013
129,121
\n
Derivat
ive \ufb01nancial
\n
instruments
14
51,002
1,443
\u2013
\u2013
\u2013
52,445
\u2013
52,445
\n
Loans and advances
\n
to banks\u00b9
15
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
44,383
44,383
\n
of which \u2013 reverse
\n
repurchase agreements
\n
and other sim
ilar
\n
secured lending
16
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
1,079
1,079
\n
Loans and advances
\n
to customers\u00b9
15
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
298,468
298,468
\n
of which \u2013 reverse
\n
repurchase agreements
\n
and other sim
ilar
\n
secured lending
16
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
7,331
7,331
\n
Investment securit
ies
\n
Debt securit
ies,
\n
alternative tier one
\n
and other elig
ible b
ills
\u2013
\u2013
\u2013
\u2013
121,375
121,375
41,325
162,700
\n
Equity shares
\u2013
\u2013
\u2013
\u2013
737
737
\u2013
737
\n
\u2013
\u2013
\u2013
\u2013
122,112
122,112
41,325
163,437
\n
Other assets
20
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
40,068
40,068
\n
Assets held for sale
21
\u2013
\u2013
\u2013
43
\u2013
43
52
95
\n
Total at 31 December 2021
92,760
1,443
87,202
204
122,112
303,721
496,959
800,680
\n
1
Further analysed in Risk review and Capital review (pages 236 to 325)
378
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
13. Financ
ial
instruments
continued
\n
Liab
il
it
ies
Notes
\n
Liab
il
it
ies at fa
ir value
\n
Amortised
\n
cost
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Trading
\n
$mill
ion
\n
Derivat
ives
\n
held for
\n
hedging
\n
$mill
ion
\n
Designated
\n
at fair value
\n
through
\n
pro\ufb01t or loss
\n
$mill
ion
\n
Total
\n
\ufb01nancial
\n
liab
il
it
ies at
\n
fair value
\n
$mill
ion
\n
Financ
ial l
iab
il
it
ies held at fa
ir value through
\n
pro\ufb01t or loss
\n
Deposits by banks
\u2013
\u2013
1,066
1,066
\u2013
1,066
\n
Customer accounts
29
\u2013
11,677
11,706
\u2013
11,706
\n
Repurchase agreements and other sim
ilar
\n
secured borrowing
16
\u2013
\u2013
51,706
51,706
\u2013
51,706
\n
Debt securit
ies
in issue
22
\u2013
\u2013
8,572
8,572
\u2013
8,572
\n
Short posit
ions
6,847
\u2013
\u2013
6,847
\u2013
6,847
\n
Other liab
il
it
ies
\u2013
\u2013
6
6
\u2013
6
\n
6,876
\u2013
73,027
79,903
\u2013
79,903
\n
Derivat
ive \ufb01nancial
instruments
14
65,316
4,546
\u2013
69,862
\u2013
69,862
\n
Deposits by banks
\u2013
\u2013
\u2013
\u2013
28,789
28,789
\n
Customer accounts
\u2013
\u2013
\u2013
\u2013
461,677
461,677
\n
Repurchase agreements and other sim
ilar
\n
secured borrowing
16
\u2013
\u2013
\u2013
\u2013
2,108
2,108
\n
Debt securit
ies
in issue
22
\u2013
\u2013
\u2013
\u2013
61,242
61,242
\n
Other liab
il
it
ies
23
\u2013
\u2013
\u2013
\u2013
42,915
42,915
\n
Subordinated liab
il
it
ies and other borrowed funds
27
\u2013
\u2013
\u2013
\u2013
13,715
13,715
\n
Liab
il
it
ies
included in disposal groups held for sale
21
5
\u2013
\u2013
5
1,230
1,235
\n
Total at 31 December 2022
72,197
4,546
73,027
149,770
611,676
761,446
\n
Liab
il
it
ies
Notes
\n
Liab
il
it
ies at fa
ir value
\n
Amortised
\n
cost
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Trading
\n
$mill
ion
\n
Derivat
ives
\n
held for
\n
hedging
\n
$mill
ion
\n
Designated
\n
at fair value
\n
through
\n
pro\ufb01t or loss
\n
$mill
ion
\n
Total
\n
\ufb01nancial
\n
liab
il
it
ies at
\n
fair value
\n
$mill
ion
\n
Financ
ial l
iab
il
it
ies held at fa
ir value through
\n
pro\ufb01t or loss
\n
Deposits by banks
\u2013
\u2013
1,352
1,352
\u2013
1,352
\n
Customer accounts
198
\u2013
9,093
9,291
\u2013
9,291
\n
Repurchase agreements and other sim
ilar
\n
secured borrowing
16
\u2013
\u2013
62,388
62,388
\u2013
62,388
\n
Debt securit
ies
in issue
22
\u2013
\u2013
5,597
5,597
\u2013
5,597
\n
Short posit
ions
6,562
\u2013
\u2013
6,562
\u2013
6,562
\n
Other liab
il
it
ies
6
\u2013
1
7
\u2013
7
\n
6,766
\u2013
78,431
85,197
\u2013
85,197
\n
Derivat
ive \ufb01nancial
instruments
14
52,706
693
\u2013
53,399
\u2013
53,399
\n
Deposits by banks
\u2013
\u2013
\u2013
\u2013
30,041
30,041
\n
Customer accounts
\u2013
\u2013
\u2013
\u2013
474,570
474,570
\n
Repurchase agreements and other sim
ilar
\n
secured borrowing
16
\u2013
\u2013
\u2013
\u2013
3,260
3,260
\n
Debt securit
ies
in issue
22
\u2013
\u2013
\u2013
\u2013
61,293
61,293
\n
Other liab
il
it
ies
23
\u2013
\u2013
\u2013
\u2013
43,432
43,432
\n
Subordinated liab
il
it
ies and other borrowed funds
27
\u2013
\u2013
\u2013
\u2013
16,646
16,646
\n
Liab
il
it
ies
included in disposal groups held for sale
21
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\n
Total at 31 December 2021
59,472
693
78,431
138,596
629,242
767,838
\n
Interest rate benchmark reform
\n
In 2017, the Financ
ial Conduct Author
ity (FCA) announced that it had reached an agreement with LIBOR panel banks to
\n
contribute to LIBOR until the end of 2021, after which there would be a transit
ion from LIBORs to alternat
ive risk-free rates (RFRs).
\n
Since then, there have been further updates, particularly with respect to the cessation date for certain USD LIBOR tenors being
\n
deferred from 31 December 2021 to 30 June 2023.
379
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
13. Financ
ial
instruments
continued
\n
How the Group is managing the transit
ion to alternat
ive benchmark rates
\n
In 2018, the Group established its IBOR Transit
ion Programme to manage the trans
it
ion away from LIBOR. Sen
ior management
\n
oversight for the Programme is provided by the Chief Executive Of\ufb01cers of CCIB and CPBB. The Programme\u2019s strategic bank-
\n
wide approach aims to support clients throughout the transit
ion, wh
ile ensuring key risks and issues are ident
i\ufb01ed and
\n
effectively managed. The Programme is governed by a princ
ipal Programme Steer
ing Committee that oversees 13 workstreams
\n
aligned to the Group\u2019s businesses and functions. With
in the Programme, separate comm
ittees govern each workstream, and all
\n
of them have a dedicated Accountable Executive.
\n
Addit
ional governance
is supported by regular updates provided to senior risk committees, includ
ing the Group R
isk Committee,
\n
Board Risk Committee and the Corporate, Commercial and Institut
ional Bank
ing Risk Committee.
\n
From an industry and regulatory perspective, the Group actively partic
ipates
in and contributes to working groups, industry
\n
associat
ions and bus
iness forums that focus on different aspects of the transit
ion. The Group mon
itors the developments at
\n
these forums and includes sign
i\ufb01cant dec
is
ions
into its broader transit
ion plans.
\n
Progress during 2022
\n
Supported by a number of system enhancements, the Group has successfully enabled the transit
ion to RFR products, w
ith
\n
end-to-end capabil
it
ies across a full suite of derivat
ive and cash products. Act
iv
ity
in products referencing RFRs continued to
\n
grow throughout 2022. New use of USD LIBOR has ceased, except for lim
ited except
ions as permitted by the regulators.
\n
The Group remediated all non-USD LIBOR exposures by early 2022 and has no reliance on synthetic GBP or JPY LIBOR in 2022.
\n
During 2022, focus shifted on the remediat
ion of legacy USD LIBOR transact
ions and automation of associated data and
\n
processes. Clients with legacy USD LIBOR loans have been engaged to remediate their contracts primar
ily v
ia active conversion
\n
to alternative rates, or other suitable transit
ion mechan
isms such as the inclus
ion of robust fallbacks. The Group adhered to the
\n
International Swaps and Derivat
ives Assoc
iat
ion (ISDA) 2020 IBOR Fallbacks Protocol for all
its trading entit
ies and cont
inued to
\n
engage clients that had not adhered to negotiate remediat
ion of USD LIBOR contracts by the end of June 2023. The Group w
ill
\n
also partic
ipate
in the conversion events at the London Clearing House (LCH) during the \ufb01rst part of 2023.
\n
Frontline and client engagement, includ
ing
internal and client communicat
ions, tra
in
ing, and cl
ient webinars were a key feature
\n
of the Programme throughout 2022 to support transit
ion from USD LIBOR to Secured Overn
ight Financ
ing Rate (SOFR) as well
\n
as the transit
ion for other IBOR benchmarks that are ceas
ing.
\n
Risks which the Group is exposed to due to IBOR transit
ion
\n
The Group has largely mit
igated all mater
ial adverse outcomes associated with the cessation of IBOR benchmarks, and these
\n
have not required a change to the Group\u2019s risk management strategy. However, the Group will continue to focus on the
\n
remediat
ion requ
ired for other benchmarks, and will continue to monitor and manage the inherent risks of the transit
ion, w
ith
\n
particular attention being paid to the following:
\n
\u2022
Legal Risk: IBOR transit
ion
introduces sign
i\ufb01cant legal r
isks and the Group has taken action to mit
igate them where poss
ible.
\n
These include risks around contracts that reference USD LIBOR. Steps have been taken to either insert robust fallbacks or
\n
actively convert transactions from the relevant IBOR to the new RFR-based options. The Group actively monitors remediat
ion
\n
progress and tracks exposures that are proving diff
icult to remed
iate.
Based on the informat
ion ava
ilable as at the date of
\n
this Report, there is a reasonable probabil
ity that some such exposures may not be remed
iated by the \ufb01rst interest \ufb01x
ing date
\n
following June 30 2023.
The Group will apply certain legislat
ive solut
ions to these exposures if required, includ
ing the
\n
applicat
ion of synthet
ic USD LIBOR, should it be made available
\n
\u2022
Conduct Risk: The Group considers Conduct Risk to be a sign
i\ufb01cant area of non-\ufb01nancial r
isk management throughout the
\n
transit
ion. Our r
isk appetite statement on Conduct Risk strives to mainta
in appropr
iate outcomes by continuously
\n
demonstrating that we are \u2018Doing the Right Thing\u2019 in the way we do business. Accordingly, we recognise that the
\n
ident
i\ufb01cation and m
it
igat
ion of conduct risks aris
ing
in respect of the transit
ion are fundamental to the successful trans
it
ion
\n
to new RFR-based rates. The Group has therefore taken actions in this regard as an integral part of its IBOR Transit
ion
\n
Programme, includ
ing an extens
ive outreach programme
\n
\u2022
Operational Risk: The Group has recognised the importance of the ongoing ident
i\ufb01cation and management of Operat
ional
\n
Risk as a result of IBOR transit
ion,
includ
ing those related to systems affected by the trans
it
ion. The Programme has adopted
\n
the Group\u2019s exist
ing Operat
ional Risk Framework in its approach to ident
ify
ing, quantify
ing, and m
it
igat
ing the impact of
\n
operational risks resulting from the transit
ion
\n
\u2022
Market Risk: As trades are transit
ioned from IBOR to RFRs, the bus
iness-as-usual metrics, lim
it structure and controls w
ill
\n
continue to apply. Lim
its for value at r
isk and market risk sensit
iv
it
ies are
in accordance with the Group Risk Appetite
\n
Statement. New lim
its have been set follow
ing engagement with the business to consider client demand and market liqu
id
ity
\n
in RFR-linked products, as well as the regulatory expectations
\n
\u2022
Financ
ial and pr
ic
ing r
isk: The Group continues to monitor any \ufb01nanc
ial
impact of IBOR transit
ion across bus
iness and
\n
functional workstreams in the Programme, and is implement
ing model and pr
ic
ing changes to m
it
igate these r
isks and ensure
\n
alignment with conventions and pric
ing mechan
isms of the alternative reference rates and ind
ices
\n
\u2022
Accounting Risk: The Group has ident
i\ufb01ed the \ufb01nancial
instruments that may be affected by accounting issues such as
\n
accounting for contractual changes due to IBOR reform, fair value measurement and hedge accounting. We continue to
\n
monitor and contribute to industry developments on tax and accounting changes.
380
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
13. Financ
ial
instruments
continued
\n
As at 31 December 2022 the Group had the following notional princ
ipal exposures to
interest rate benchmarks that are
\n
expected to be subject to interest rate benchmark reform. The Group has excluded \ufb01nanc
ial
instruments linked to USD LIBOR
\n
maturing before 30 June 2023 as it is assumed these will not require remediat
ion due USD LIBOR no longer be
ing published on a
\n
representative basis beyond this date.
\n
IBOR exposures by benchmark
\n
as of 31 December 2022
\n
USD LIBOR
\n
$mill
ion
\n
GBP LIBOR
\n
$mill
ion
\n
SGD SOR
\n
$mill
ion
\n
THB FIX
\n
$mill
ion
\n
Other IBOR
\n
$mill
ion
\n
Total IBOR
\n
$mill
ion
\n
Assets
\n
Loans and advances to banks
145
\u2013
\u2013
\u2013
\u2013
145
\n
Loans and advances to customers
21,395
\u2013
420
\u2013
\u2013
21,815
\n
Debt securit
ies, AT1 and other el
ig
ible b
ills
2,843
\u2013
15
\u2013
\u2013
2,858
\n
24,383
\u2013
435
\u2013
\u2013
24,818
\n
Liab
il
it
ies
\n
Deposits by banks
332
\u2013
\u2013
\u2013
\u2013
332
\n
Customer accounts
3,066
\u2013
\u2013
34
\u2013
3,100
\n
Repurchase agreements and other
\n
secured borrowing
671
\u2013
\u2013
\u2013
\u2013
671
\n
Debt securit
ies
in issue
1,211
\u2013
\u2013
\u2013
\u2013
1,211
\n
Subordinated liab
il
it
ies and other
\n
borrowed funds
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\n
5,280
\u2013
\u2013
34
\u2013
5,314
\n
Derivat
ives \u2013 Fore
ign exchange
\n
contracts
\n
Currency swaps and options
135,145
\u2013
2,273
959
\u2013
138,377
\n
Derivat
ives \u2013 Interest rate contracts
\n
Swaps
671,534
\u2013
7,512
10,998
\u2013
690,044
\n
Forward rate agreements and options
22,067
\u2013
\u2013
9
\u2013
22,076
\n
Exchange traded futures and options
31,922
\u2013
\u2013
\u2013
\u2013
31,922
\n
Equity and stock index options
49
\u2013
\u2013
\u2013
\u2013
49
\n
Credit derivat
ive contracts
3,974
\u2013
46
129
\u2013
4,149
\n
Total IBOR derivat
ive exposure
864,691
\u2013
9,831
12,095
\u2013
886,617
\n
Total IBOR exposure
894,354
\u2013
10,266
12,129
\u2013
916,749
\n
Loan commitments off balance sheet
2,798
\u2013
14
\u2013
\u2013
2,812
\n
IBOR exposures by benchmark
\n
as at 31 December 2021
\n
USD LIBOR
\n
$mill
ion
\n
GBP LIBOR
\n
$mill
ion
\n
SGD SOR
\n
$mill
ion
\n
THB FIX
\n
$mill
ion
\n
Other IBOR
\n
$mill
ion
\n
Total IBOR
\n
$mill
ion
\n
Assets
\n
Loans and advances to banks
552
\u2013
\u2013
\u2013
\u2013
552
\n
Loans and advances to customers
27,843
123
1,479
15
58
29,518
\n
Debt securit
ies, AT1 and other el
ig
ible b
ills
2,735
237
17
\u2013
\u2013
2,989
\n
31,130
360
1,496
15
58
33,059
\n
Liab
il
it
ies
\n
Deposits by banks
815
\u2013
\u2013
\u2013
\u2013
815
\n
Customer accounts
3,575
\u2013
1
36
\u2013
3,612
\n
Repurchase agreements and other
\n
secured borrowing
671
\u2013
\u2013
\u2013
\u2013
671
\n
Debt securit
ies
in issue
326
\u2013
\u2013
\u2013
\u2013
326
\n
Subordinated liab
il
it
ies and other
\n
borrowed funds
160
\u2013
\u2013
\u2013
\u2013
160
\n
5,547
\u2013
1
36
\u2013
5,584
\n
Derivat
ives \u2013 Fore
ign exchange
\n
contracts
\n
Currency swaps and options
158,184
\u2013
3,877
1,725
\u2013
163,786
\n
Derivat
ives \u2013 Interest rate contracts
\n
Swaps
686,403
\u2013
10,091
51,395
\u2013
747,889
\n
Forward rate agreements and options
28,406
\u2013
74
124
\u2013
28,604
\n
Exchange traded futures and options
24,236
\u2013
\u2013
\u2013
\u2013
24,236
\n
Equity and stock index options
74
\u2013
\u2013
\u2013
\u2013
74
\n
Credit derivat
ive contracts
5,515
\u2013
72
277
\u2013
5,864
\n
Total IBOR derivat
ive exposure
902,818
\u2013
14,114
53,521
\u2013
970,453
\n
Total IBOR exposure
939,495
360
15,611
53,572
58
1,009,096
\n
Loan commitments off balance sheet
4,161
285
179
\u2013
966
5,591
381
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
13. Financ
ial
instruments
continued
\n
Offsetting of \ufb01nanc
ial
instruments
\n
Financ
ial assets and l
iab
il
it
ies are offset and the net amount reported
in the balance sheet when there is a legally enforceable
\n
right to offset the recognised amounts and there is an intent
ion to settle on a net bas
is, or to realise the asset and settle the
\n
liab
il
ity simultaneously.
\n
In practice, for credit mit
igat
ion, the Group is able to offset assets and liab
il
it
ies wh
ich do not meet the IAS 32 netting criter
ia set
\n
out below. Such arrangements include master netting arrangements for derivat
ives and global master repurchase agreements
\n
for repurchase and reverse repurchase transactions. These agreements generally allow that all outstanding transactions with a
\n
particular counterparty can be offset but only in the event of default or other predetermined events.
\n
In addit
ion, the Group also rece
ives and pledges readily realisable collateral for derivat
ive transact
ions to cover net exposure in
\n
the event of a default. Under repurchase and reverse repurchase agreements the Group pledges (legally sells) and obtains
\n
(legally purchases) respectively, highly liqu
id assets wh
ich can be sold in the event of a default.
\n
The following tables set out the impact of netting on the balance sheet. This comprises derivat
ive transact
ions settled through
\n
an enforceable netting agreement where we have the intent and abil
ity to settle net and wh
ich are offset on the balance sheet.
\n
2022
\n
Gross amounts
\n
of recognised
\n
\ufb01nancial
\n
instruments
\n
$mill
ion
\n
Impact of
\n
offset in the
\n
balance sheet
\n
$mill
ion
\n
Net amounts
\n
of \ufb01nancial
\n
instruments
\n
presented in the
\n
balance sheet
\n
$mill
ion
\n
Related amount not offset
\n
in the balance sheet
\n
Net amount
\n
$mill
ion
\n
Financ
ial
\n
instruments
\n
$mill
ion
\n
Financ
ial
\n
collateral
\n
$mill
ion
\n
Assets
\n
Derivat
ive \ufb01nancial
instruments
120,799
(57,082)
63,717
(50,133)
(9,206)
4,378
\n
Reverse repurchase agreements and
\n
other sim
ilar secured lend
ing
105,891
(15,924)
89,967
\u2013
(89,967)
\u2013
\n
At 31 December 2022
226,690
(73,006)
153,684
(50,133)
(99,173)
4,378
\n
Liab
il
it
ies
\n
Derivat
ive \ufb01nancial
instruments
126,944
(57,082)
69,862
(50,133)
(12,515)
7,214
\n
Repurchase agreements and other
\n
sim
ilar secured borrow
ing
69,738
(15,924)
53,814
\u2013
(53,814)
\u2013
\n
At 31 December 2022
196,682
(73,006)
123,676
(50,133)
(66,329)
7,214
\n
2021
\n
Gross amounts
\n
of recognised
\n
\ufb01nancial
\n
instruments
\n
$mill
ion
\n
Impact of
\n
offset in the
\n
balance sheet
\n
$mill
ion
\n
Net amounts
\n
of \ufb01nancial
\n
instruments
\n
presented in the
\n
balance sheet
\n
$mill
ion
\n
Related amount not offset
\n
in the balance sheet
\n
Net amount
\n
$mill
ion
\n
Financ
ial
\n
instruments
\n
$mill
ion
\n
Financ
ial
\n
collateral
\n
$mill
ion
\n
Assets
\n
Derivat
ive \ufb01nancial
instruments
79,043
(26,598)
52,445
(39,502)
(8,092)
4,851
\n
Reverse repurchase agreements and
\n
other sim
ilar secured lend
ing
95,845
(7,426)
88,419
\u2013
(88,419)
\u2013
\n
At 31 December 2021
174,888
(34,024)
140,864
(39,502)
(96,511)
4,851
\n
Liab
il
it
ies
\n
Derivat
ive \ufb01nancial
instruments
79,997
(26,598)
53,399
(39,502)
(9,217)
4,680
\n
Repurchase agreements and other
\n
sim
ilar secured borrow
ing
73,074
(7,426)
65,648
\u2013
(65,648)
\u2013
\n
At 31 December 2021
153,071
(34,024)
119,047
(39,502)
(74,865)
4,680
\n
Related amounts not offset in the balance sheet comprises:
\n
\u2022
Financ
ial
instruments not offset in the balance sheet but covered by an enforceable netting arrangement. This comprises
\n
master netting arrangements held against derivat
ive \ufb01nancial
instruments and excludes the effect of over-collateralisat
ion
\n
\u2022
Financ
ial
instruments where a legal opin
ion ev
idenc
ing enforceab
il
ity of the r
ight of offset may not have been sought, or may
\n
have been unable to obtain
\n
\u2022
Financ
ial collateral compr
ises cash collateral pledged and received for derivat
ive \ufb01nancial
instruments and collateral bought
\n
and sold for reverse repurchase and repurchase agreements respectively and excludes the effect of over-collateralisat
ion
382
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
13. Financ
ial
instruments
continued
\n
Financ
ial l
iab
il
it
ies des
ignated at fair value through pro\ufb01t or loss
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Carrying balance aggregate fair value
73,027
78,431
\n
Amount contractually obliged to repay at maturity
74,138
78,691
\n
Difference between aggregate fair value and contractually obliged to repay at maturity
(1,111)
(260)
\n
Cumulative change in fair value accredited to credit risk difference
(56)
3
\n
The net fair value loss on \ufb01nanc
ial l
iab
il
it
ies des
ignated at fair value through pro\ufb01t or loss was $677 mill
ion for the year
\n
(31\u00a0December 2021: net loss of $133 mill
ion).
\n
Further details of the Group\u2019s own credit adjustment (OCA) valuation technique is described later in this Note.
\n
Valuation of \ufb01nanc
ial
instruments
\n
The fair values of quoted \ufb01nanc
ial assets and l
iab
il
it
ies
in active markets are based on current prices. A market is regarded as
\n
active if transactions for the asset or liab
il
ity take place with suf\ufb01c
ient frequency and volume to prov
ide pric
ing
informat
ion on
\n
an ongoing basis. Wherever possible, fair values have been calculated using unadjusted quoted market prices in active markets
\n
for ident
ical
instruments held by the Group. Where quoted market prices are not available, or are unreliable because of poor
\n
liqu
id
ity, fair values have been determined using valuation techniques which, to the extent possible, use market observable
\n
inputs, but in some cases use non market observable inputs. Valuation techniques used include discounted cash \ufb02ow analysis
\n
and pric
ing models and, where appropr
iate, comparison with instruments that have characterist
ics s
im
ilar to those of the
\n
instruments held by the Group.
\n
The Valuation Methodology function is responsible for independent price verif
icat
ion, oversight of fair value and appropriate
\n
value adjustments and escalation of valuation issues. Independent price verif
icat
ion is the process of determin
ing that the
\n
valuations incorporated into the \ufb01nanc
ial statements are val
idated independent of the business area responsible for the
\n
product. The Valuation Methodology function has oversight of the fair value adjustments to ensure the \ufb01nanc
ial
instruments
\n
are priced to exit. These are key controls in ensuring the material accuracy of the valuations incorporated in the \ufb01nanc
ial
\n
statements. The market data used for price verif
icat
ion(PV) may include data sourced from recent trade data involv
ing
\n
external counterparties or third parties such as Bloomberg, Reuters, brokers and consensus pric
ing prov
iders. The Valuation
\n
Methodology function perform an ongoing review of the market data sources that are used as part of the PV and fair value
\n
processes which are formally documented on a semi-annual basis detail
ing the su
itab
il
ity of the market data used for price
\n
testing. Price verif
icat
ion uses independently sourced data that is deemed most representative of the market the instruments
\n
trade in. To determine the quality of the market data inputs, factors such as independence, relevance, reliab
il
ity, availab
il
ity of
\n
multiple data sources and methodology employed by the pric
ing prov
ider are taken into considerat
ion.
\n
The Valuation and Benchmarks Committee (VBC) is the valuation governance forum consist
ing of representat
ives from Group
\n
Market Risk, Product Control, Valuation Methodology and the business, which meets monthly to discuss and approve the
\n
independent valuations of the inventory. For Princ
ipal F
inance, the Investment Committee meeting is held on a quarterly basis
\n
to review investments and valuations
\n
Sign
i\ufb01cant account
ing estimates and judgements
\n
The Group evaluates the sign
i\ufb01cance of \ufb01nancial
instruments and material accuracy of the valuations incorporated in the
\n
\ufb01nancial statements as they
involve a high degree of judgement and estimat
ion uncerta
inty in determin
ing the carry
ing
\n
values of \ufb01nancial assets and l
iab
il
it
ies at the balance sheet date.
\n
\u2022
Fair value of \ufb01nanc
ial
instruments is determined using valuation techniques and estimates (see below) which, to the extent
\n
possible, use market observable inputs, but in some cases use non-market observable inputs. Changes in the observabil
ity
\n
of sign
i\ufb01cant valuat
ion inputs can materially affect the fair values of \ufb01nanc
ial
instruments
\n
\u2022
When establish
ing the ex
it price of a \ufb01nanc
ial
instrument using a valuation technique, the Group estimates valuation
\n
adjustments in determin
ing the fa
ir value (page 383])
\n
\u2022
In determin
ing the valuat
ion of \ufb01nanc
ial
instruments, the Group makes judgements on the amounts reserved to cater for
\n
model and valuation risks, which cover both Level 2 and Level 3 assets, and the sign
i\ufb01cant valuat
ion judgements in respect
\n
of Level 3 instruments (page 390)
\n
\u2022
Where the estimated measurement of fair value is more judgemental in respect of Level 3 assets, these are valued based
\n
on models that use a sign
i\ufb01cant degree of non-market-based unobservable
inputs
383
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
13. Financ
ial
instruments
continued
\n
Valuation techniques
\n
Refer to the fair value hierarchy explanation \u2013 Level 1, 2 and 3 (page 385)
\n
\u2022
Financ
ial
instruments held at fair value
\n
\u2013
Debt securit
ies \u2013 asset-backed secur
it
ies:
Asset-backed securit
ies are valued based on external pr
ices obtained from
\n
consensus pric
ing prov
iders, broker quotes, recent trades, arrangers\u2019 quotes, etc. Where an observable price is available for
\n
a given security, it is classif
ied as Level 2. In
instances where third-party prices are not available or reliable, the security is
\n
classif
ied as Level 3. The fa
ir value of Level 3 securit
ies
is estimated using market standard cash \ufb02ow models with input
\n
parameter assumptions which include prepayment speeds, default rates, discount margins derived from comparable
\n
securit
ies w
ith sim
ilar v
intage, collateral type, and credit ratings
\n
\u2013
Debt securit
ies
in issue:
These debt securit
ies relate to structured notes
issued by the Group. Where independent market
\n
data is available through pric
ing vendors and broker sources these pos
it
ions are class
if
ied as Level 2. Where such l
iqu
id
\n
external prices are not available, valuations of these debt securit
ies are
impl
ied us
ing input parameters such as bond
\n
spreads and credit spreads, and are classif
ied as Level 3. These
input parameters are determined with reference to the
\n
same issuer (if available) or proxies from comparable issuers or assets
\n
\u2013
Derivat
ives:
Derivat
ive products are class
if
ied as Level 2
if the valuation of the product is based upon input parameters
\n
which are observable from independent and reliable market data sources. Derivat
ive products are class
if
ied as Level 3
if
\n
there are sign
i\ufb01cant valuat
ion input parameters which are unobservable in the market, such as products where the
\n
performance is linked to more than one underlying variable. Examples are foreign exchange basket options, equity options
\n
based on the performance of two or more underlying ind
ices and
interest rate products with quanto payouts. In most cases
\n
these unobservable correlation parameters cannot be impl
ied from the market, and methods such as h
istor
ical analys
is
\n
and comparison with histor
ical levels or other benchmark data must be employed
\n
\u2013
Equity shares \u2013 private equity:
The majority of pr
ivate equity unlisted investments are valued based on earning multiples
\n
\u2013 Price-to-Earnings (P/E) or enterprise value to earnings before income tax, depreciat
ion and amort
isat
ion (EV/EBITDA)
\n
ratios \u2013 of comparable listed companies. The two primary inputs for the valuation of these investments are the actual or
\n
forecast earnings of the investee companies and earning multiples for the comparable listed companies. To ensure
\n
comparabil
ity between these unquoted
investments and the comparable listed companies, appropriate adjustments are
\n
also applied (for example, liqu
id
ity and size) in the valuation. In circumstances where an investment does not have direct
\n
comparables or where the multiples for the comparable companies cannot be sourced from reliable external sources,
\n
alternative valuation techniques (for example, discounted cash \ufb02ow model or net asset value (\u201cNAV\u201d)or option pric
ing
\n
model), which use predominantly unobservable inputs or Level 3 inputs, may be applied. Even though earning multiples for
\n
the comparable listed companies can be sourced from third-party sources (for example, Bloomberg), and those inputs can
\n
be deemed Level 2 inputs, all unlisted investments (excluding those where observable inputs are available, for example,
\n
over-the-counter (OTC) prices) are classif
ied as Level 3 on the bas
is that the valuation methods involve judgements ranging
\n
from determin
ing comparable compan
ies to discount rates where the discounted cash \ufb02ow method is applied
\n
\u2013
Loans and advances:
These primar
ily
include loans in the FM Bond and Loan Syndicat
ion bus
iness which were not fully
\n
syndicated as of the balance sheet date and other \ufb01nanc
ing transact
ions with
in F
inanc
ial Markets, and loans and
\n
advances includ
ing reverse repurchase agreements that do not have SPPI cash\ufb02ows or are managed on a fa
ir value basis.
\n
These loans are generally bilateral in nature and, where available, their valuation is based on observable clean sales
\n
transactions prices or market observable spreads. If observable credit spreads are not available, proxy spreads based on
\n
comparables with sim
ilar cred
it grade, sector and region, are used. Where observable transaction prices, credit spreads
\n
and market standard proxy methods are available, these loans are classif
ied as Level 2. Where there are no recent
\n
transactions or comparables, these loans are classif
ied as Level 3
\n
\u2013
Other debt securit
ies:
These debt securit
ies
include convertible bonds, corporate bonds, credit and structured notes.
\n
Where quoted prices are available through pric
ing vendors, brokers or observable trad
ing activ
it
ies from liqu
id markets,
\n
these are classif
ied as Level 2 and valued us
ing such quotes. Where there are sign
i\ufb01cant valuat
ion inputs which are
\n
unobservable in the market, due to ill
iqu
id trading or the complexity of the product, these are classif
ied as Level 3. The
\n
valuations of these debt securit
ies are
impl
ied us
ing input parameters such as bond spreads and credit spreads. These
\n
input parameters are determined with reference to the same issuer (if available) or proxied from comparable issuers or
\n
assets
\n
\u2022
Financ
ial
instruments held at amortised cost
\n
The following sets out the Group\u2019s basis for establish
ing fa
ir values of amortised cost \ufb01nanc
ial
instruments and their
\n
classif
icat
ion between Levels 1, 2 and 3. As certain categories of \ufb01nanc
ial
instruments are not actively traded, there is a
\n
sign
i\ufb01cant level of management judgement
involved in calculating the fair values:
\n
\u2013
Cash and balances at central banks:
The fair value of cash and balances at central banks is their carrying amounts
\n
\u2013
Debt securit
ies
in issue, subordinated liab
il
it
ies and other borrowed funds:
The aggregate fair values are calculated
\n
based on quoted market prices. For those notes where quoted market prices are not available, a discounted cash \ufb02ow
\n
model is used based on a current market related yield curve appropriate for the remain
ing term to matur
ity
\n
\u2013
Deposits and borrowings:
The estimated fair value of deposits with no stated maturity is the amount repayable on
\n
demand. The estimated fair value of \ufb01xed interest-bearing deposits and other borrowings without quoted market prices is
\n
based on discounted cash \ufb02ows using the prevail
ing market rates for debts w
ith a sim
ilar Cred
it Risk and remain
ing
\n
maturity
384
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
13. Financ
ial
instruments
continued
\n
\u2013
Investment securit
ies:
For investment securit
ies that do not have d
irectly observable market values, the Group util
ises a
\n
number of valuation techniques to determine fair value. Where available, securit
ies are valued us
ing input proxies from the
\n
same or closely related underlying (for example, bond spreads from the same or closely related issuer) or input proxies from
\n
a different underlying (for example, a sim
ilar bond but us
ing spreads for a particular sector and rating). Certain instruments
\n
cannot be proxies as set out above, and in such cases the posit
ions are valued us
ing non-market observable inputs. This
\n
includes those instruments held at amortised cost and predominantly relates to asset-backed securit
ies. The fa
ir value for
\n
such instruments is usually proxies from internal assessments of the underlying cash \ufb02ows
\n
\u2013
Loans and advances to banks and customers:
For loans and advances to banks, the fair value of \ufb02oating rate placements
\n
and overnight deposits is their carrying amounts. The estimated fair value of \ufb01xed interest-bearing deposits is based on
\n
discounted cash \ufb02ows using the prevail
ing money market rates for debts w
ith a sim
ilar Cred
it Risk and remain
ing matur
ity.
\n
The Group\u2019s loans and advances to customers\u2019 portfolio is well divers
i\ufb01ed by geography and
industry. Approximately a
\n
quarter of the portfolio re-prices with
in one month, and approx
imately half re-prices with
in 12 months. Loans and advances
\n
are presented net of provis
ions for
impa
irment. The fa
ir value of loans and advances to customers with a residual maturity
\n
of less than one year generally approximates the carrying value. The estimated fair value of loans and advances with a
\n
residual maturity of more than one year represents the discounted amount of future cash \ufb02ows expected to be received,
\n
includ
ing assumpt
ions relating to prepayment rates and Credit Risk. Expected cash \ufb02ows are discounted at current market
\n
rates to determine fair value. The Group has a wide range of ind
iv
idual instruments with
in
its loans and advances portfolio
\n
and as a result provid
ing quant
if
icat
ion of the key assumptions used to value such instruments is impract
ical
\n
\u2013
Other assets:
Other assets comprise primar
ily of cash collateral and trades pend
ing settlement. The carrying amount of
\n
these \ufb01nancial
instruments is considered to be a reasonable approximat
ion of fa
ir value as they are either short-term in
\n
nature or re-price to current market rates frequently
\n
Fair value adjustments
\n
When establish
ing the ex
it price of a \ufb01nanc
ial
instrument using a valuation technique, the Group considers adjustments to the
\n
modelled price which market partic
ipants would make when pr
ic
ing that
instrument. The main valuation adjustments
\n
(described further below) in determin
ing fa
ir value for \ufb01nanc
ial assets and \ufb01nancial l
iab
il
it
ies are as follows:
\n
01.01.22
\n
$mill
ion
\n
Movement
\n
during the year
\n
$mill
ion
\n
31.12.22
\n
$mill
ion
\n
01.01.21
\n
$mill
ion
\n
Movement
\n
during the year
\n
$mill
ion
\n
31.12.21
\n
$mill
ion
\n
Bid-offer valuation adjustment
101
17
118
103
(2)
101
\n
Credit valuation adjustment
165
6
171
189
(24)
165
\n
Debit valuation adjustment
(70)
(42)
(112)
(55)
(15)
(70)
\n
Model valuation adjustment
5
(2)
3
5
\u2013
5
\n
Funding valuation adjustment
\u2013
46
46
5
(5)
\u2013
\n
Other fair value adjustments
20
3
23
32
(12)
20
\n
Total
221
28
249
279
(58)
221
\n
Income deferrals
\n
Day 1 and other deferrals
147
39
186
138
9
147
\n
Total
147
39
186
138
9
147
\n
Note: Bracket represents an asset and credit to the income statement
\n
\u2022
Bid-offer valuation adjustment:
Generally, market parameters are marked on a mid-market basis in the revaluation systems,
\n
and a bid-offer valuation adjustment is required to quantify the expected cost of neutralis
ing the bus
iness\u2019 posit
ions through
\n
dealing away in the market, thereby bring
ing long pos
it
ions to b
id and short posit
ions to offer. The methodology to calculate
\n
the bid-offer adjustment for a derivat
ive portfol
io involves netting between long and short posit
ions and the group
ing of risk
\n
by strike and tenor based on the hedging strategy where long posit
ions are marked to b
id and short posit
ions marked to offer
\n
in the systems
\n
\u2022
Credit valuation adjustment (CVA):
The Group accounts for CVA against the fair value of derivat
ive products. CVA
is an
\n
adjustment to the fair value of the transactions to re\ufb02ect the possib
il
ity that our counterparties may default and we may not
\n
receive the full market value of the outstanding transactions. It represents an estimate of the adjustment a market
\n
partic
ipant would
include when deriv
ing a purchase pr
ice to acquire our exposures. CVA is calculated for each subsid
iary, and
\n
with
in each ent
ity for each counterparty to which the entity has exposure and takes account of any collateral we may hold.
\n
The Group calculates the CVA by using estimates of future posit
ive exposure, market-
impl
ied probab
il
ity of default (PD) and
\n
recovery rates. Where market-impl
ied data
is not readily available, we use market-based proxies to estimate the PD. Wrong-
\n
way risk occurs when the exposure to a counterparty is adversely correlated with the credit quality of that counterparty, and
\n
the Group has implemented a model to capture this impact for key wrong-way exposures. The Group also captures the
\n
uncertaint
ies assoc
iated with wrong-way risk in the Group\u2019s Prudential Valuation Adjustments framework
385
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
13. Financ
ial
instruments
continued
\n
\u2022
Debit valuation adjustment (DVA):
The Group calculates DVA adjustments on its derivat
ive l
iab
il
it
ies to re\ufb02ect changes
in its
\n
own credit standing. The Group\u2019s DVA adjustments will increase if its credit standing worsens and conversely, decrease if its
\n
credit standing improves. For derivat
ive l
iab
il
it
ies, a DVA adjustment
is determined by applying the Group\u2019s probabil
ity of
\n
default to the Group\u2019s negative expected exposure against the counterparty. The Group\u2019s probabil
ity of default and loss
\n
expected in the event of default is derived based on bond and CDS spreads associated with the Group\u2019s issuances and
\n
market standard recovery levels. The expected exposure is modelled based on the simulat
ion of the underly
ing risk factors
\n
over the expected life of the deal. This simulat
ion methodology
incorporates the collateral posted by the Group and the
\n
effects of master netting agreements
\n
\u2022
Model valuation adjustment:
Valuation models may have pric
ing de\ufb01cienc
ies or lim
itat
ions that require a valuation
\n
adjustment. These pric
ing de\ufb01cienc
ies or lim
itat
ions arise due to the choice, implementat
ion and cal
ibrat
ion of the pr
ic
ing
\n
model
\n
\u2022
Funding valuation adjustment (FVA):
The Group makes FVA adjustments against derivat
ive products,
includ
ing embedded
\n
derivat
ives. FVA re\ufb02ects an est
imate of the adjustment to its fair value that a market partic
ipant would make to
incorporate
\n
funding costs or bene\ufb01ts that could arise in relation to the exposure. FVA is calculated by determin
ing the net expected
\n
exposure at a counterparty level and then applying a funding rate to those exposures that re\ufb02ect the market cost of funding.
\n
The FVA for uncollateralised (includ
ing part
ially collateralised) derivat
ives
incorporates the estimated present value of the
\n
market funding cost or bene\ufb01t associated with funding these transactions
\n
\u2022
Other fair value adjustments:
The Group calculates the fair value on the interest rate callable products by calibrat
ing to a set
\n
of market prices with differ
ing matur
ity, expiry and strike of the trades
\n
\u2022
Day one and other deferrals:
In certain circumstances the in
it
ial fair value is based on a valuation technique which differs to
\n
the transaction price at the time of in
it
ial recognit
ion. However, these ga
ins can only be recognised when the valuation
\n
technique used is based primar
ily on observable market data. In those cases where the
in
it
ially recognised fair value is based
\n
on a valuation model that uses inputs which are not observable in the market, the difference between the transaction price
\n
and the valuation model is not recognised immed
iately
in the income statement. The difference is amortised to the income
\n
statement until the inputs become observable, or the transaction matures or is terminated. Other deferrals primar
ily
\n
represent adjustments taken to re\ufb02ect the specif
ic terms and cond
it
ions of certa
in derivat
ive contracts wh
ich affect the
\n
terminat
ion value at the measurement date
\n
In addit
ion, the Group calculates own cred
it adjustment (OCA) on its issued debt designated at fair value, includ
ing structured
\n
notes, in order to re\ufb02ect changes in its own credit standing. Issued debt is discounted util
is
ing the spread at which sim
ilar
\n
instruments would be issued or bought back at the measurement date as this re\ufb02ects the value from the perspective of a
\n
market partic
ipant who holds the
ident
ical
item as an asset. OCA measures the difference between the fair value of issued debt
\n
as of reporting date and theoretical fair values of issued debt adjusted up or down for changes in own credit spreads from
\n
incept
ion date to the measurement date. Under IFRS 9 the change
in the OCA component is reported under other
\n
comprehensive income. The Group\u2019s OCA reserve will increase if its credit standing worsens in comparison to the incept
ion of
\n
the trade and, conversely, decrease if its credit standing improves. The Group\u2019s OCA reserve will reverse over time as its liab
il
it
ies
\n
mature.
\n
In the fourth quarter of 2022, the Group implemented re\ufb01nements to its methodology for the valuation of structured notes, to
\n
align with evolving market practice. Previously, the structured note spread was split into a market level of funding component
\n
(recorded in the Consolidated income statement) and an id
iosyncrat
ic own credit component (recorded in the Consolidated
\n
statement of other comprehensive income). The re\ufb01nement is to record all prospective movements in the spreads over the
\n
benchmark rate of the host debt instrument through Other Comprehensive income, as changes to the funding component
are
\n
considered to be integral to the issuer\u2019s own credit risk. The funding valuation adjustment in relation to the embedded
\n
derivat
ive component of the structured notes w
ill continue to be recorded in the Consolidated income statement.
\n
The impact of this change in estimate, which took effect prospectively from 1 October 2022, was a loss of $13 mill
ion recorded
in
\n
the Consolidated statement of other comprehensive income, which would have been recorded in the Consolidated income
\n
statement under the previous methodology. The revised approach is expected to result in a more consistent own credit
\n
valuation with peer banks. The net life-to-date gains previously recorded in the Consolidated income statement of $219 mill
ion
\n
from incept
ion of the structured notes to the effect
ive date of this change in estimate in relation to the market level of funding
\n
for the host debt instrument are expected to reverse in the Group\u2019s Consolidated statement of other comprehensive income as
\n
the exist
ing portfol
io matures, unless the structured notes are redeemed or otherwise derecognised earlier.. This net life-to-date
\n
gain of $220 mill
ion
includes a gain of $244 mill
ion recorded
in the Consolidated income statement for 2022 (2021: $33 mill
ion
\n
gain).
\n
Fair value hierarchy \u2013 \ufb01nanc
ial
instruments held at fair value
\n
Assets and liab
il
it
ies carr
ied at fair value or for which fair values are disclosed have been classif
ied
into three levels according to
\n
the observabil
ity of the s
ign
i\ufb01cant
inputs used to determine the fair values. Changes in the observabil
ity of s
ign
i\ufb01cant valuat
ion
\n
inputs during the reporting period may result in a transfer of assets and liab
il
it
ies w
ith
in the fa
ir value hierarchy. The Group
\n
recognises transfers between levels of the fair value hierarchy when there is a sign
i\ufb01cant change
in either its princ
ipal market or
\n
the level of observabil
ity of the
inputs to the valuation techniques as at the end of the reporting period.
\n
\u2022
Level 1:
Fair value measurements are those derived from unadjusted quoted prices in active markets for ident
ical assets or
\n
liab
il
it
ies
\n
\u2022
Level 2:
Fair value measurements are those with quoted prices for sim
ilar
instruments in active markets or quoted prices for
\n
ident
ical or s
im
ilar
instruments in inact
ive markets and \ufb01nancial
instruments valued using models where all sign
i\ufb01cant
inputs
\n
are observable
\n
\u2022
Level 3:
Fair value measurements are those where inputs which could have a sign
i\ufb01cant effect on the
instrument\u2019s valuation
\n
are not based on observable market data
386
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
13. Financ
ial
instruments
continued
\n
The following tables show the classif
icat
ion of \ufb01nanc
ial
instruments held at fair value into the valuation hierarchy:
\n
Assets
\n
Level 1
\n
$mill
ion
\n
Level 2
\n
$mill
ion
\n
Level 3
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Financ
ial
instruments held at fair value through pro\ufb01t or loss
\n
Loans and advances to banks
\u2013
955
21
976
\n
Loans and advances to customers
\u2013
4,741
1,805
6,546
\n
Reverse repurchase agreements and other sim
ilar secured lend
ing
3
62,490
1,998
64,491
\n
Debt securit
ies and other el
ig
ible b
ills
14,702
14,707
1,153
30,562
\n
Of which:
\n
Issued by Central banks & Governments
14,086
4,734
\u2013
18,820
\n
Issued by corporates other than \ufb01nancial
inst
itut
ions\u00b9
91
3,452
517
4,060
\n
Issued by \ufb01nancial
inst
itut
ions\u00b9
525
6,521
636
7,682
\n
Equity shares
3,024
24
182
3,230
\n
Derivat
ive \ufb01nancial
instruments
892
62,781
44
63,717
\n
Of which:
\n
Foreign exchange
139
54,020
13
54,172
\n
Interest rate
33
7,351
28
7,412
\n
Credit
\u2013
410
1
411
\n
Equity and stock index options
\u2013
98
2
100
\n
Commodity
720
902
\u2013
1,622
\n
Investment securit
ies
\n
Debt securit
ies and other el
ig
ible b
ills
56,401
55,525
\u2013
111,926
\n
Of which:
\n
Issued by Central banks & Governments
45,151
22,171
\u2013
67,322
\n
Issued by corporates other than \ufb01nancial
inst
itut
ions
\n
1
\n
1,775
4,045
\u2013
5,820
\n
Issued by \ufb01nancial
inst
itut
ions
\n
1
\n
9,475
29,309
\u2013
38,784
\n
Equity shares
146
7
655
808
\n
Other Assets
\u2013
\u2013
7
7
\n
Total \ufb01nancial
instruments at 31 December 2022\u00b2
75,168
201,230
5,865
282,263
\n
Liab
il
it
ies
\n
Financ
ial
instruments held at fair value through pro\ufb01t or loss
\n
Deposits by banks
\u2013
778
288
1,066
\n
Customer accounts
\u2013
10,734
972
11,706
\n
Repurchase agreements and other sim
ilar secured borrow
ing
\u2013
51,706
\u2013
51,706
\n
Debt securit
ies
in issue
\u2013
8,121
451
8,572
\n
Short posit
ions
4,085
2,722
40
6,847
\n
Derivat
ive \ufb01nancial
instruments
642
69,099
121
69,862
\n
Of which:
\n
Foreign exchange
101
56,710
12
56,823
\n
Interest rate
29
10,020
12
10,061
\n
Credit
\u2013
899
42
941
\n
Equity and stock index options
\u2013
191
55
246
\n
Commodity
512
1,279
\u2013
1,791
\n
Other liab
il
it
ies
\u2013
\u2013
6
6
\n
Total \ufb01nancial
instruments at 31 December 2022\u00b2
4,727
143,160
1,878
149,765
\n
1
Includes covered bonds of $8,455 mill
ion, secur
it
ies
issued by Multilateral Development Banks/International Organisat
ions of $11,438 m
ill
ion and State-owned
\n
agencies and development banks of $9,211 mill
ion
\n
2
The above table does not include held for sale assets of $3 mill
ion and l
iab
il
it
ies of $5 m
ill
ion. These are reported
in Note 21 together with their fair value hierarchy
\n
The fair value of derivat
ives and debt secur
it
ies
in issue classif
ied as Level 2
in the fair value hierarchy that are subject to complex
\n
modelling techniques is $781 mill
ion.
\n
There were no sign
i\ufb01cant changes to valuat
ion or levelling approaches during the year 31 December 2022.
\n
There were no sign
i\ufb01cant transfers of \ufb01nancial assets and l
iab
il
it
ies measured at fa
ir value between Level 1 and Level 2 during
\n
the year 31 December 2022.
387
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
13. Financ
ial
instruments
continued
\n
Assets
\n
Level 1
\n
$mill
ion
\n
Level 2
\n
$mill
ion
\n
Level 3
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Financ
ial
instruments held at fair value through pro\ufb01t or loss
\n
Loans and advances to banks
\u2013
3,838
9
3,847
\n
Loans and advances to customers
\u2013
8,596
1,357
9,953
\n
Reverse repurchase agreements and other sim
ilar secured lend
ing
\u2013
78,443
1,566
80,009
\n
Debt securit
ies and other el
ig
ible b
ills
12,057
17,019
349
29,425
\n
Of which:
\n
Issued by Central Banks & Governments
10,731
7,201
\u2013
17,932
\n
Issued by corporates other than \ufb01nancial
inst
itut
ions
\n
1
\n
1
3,750
111
3,862
\n
Issued by \ufb01nancial
inst
itut
ions
\n
1
\n
1,325
6,068
238
7,631
\n
Equity shares
5,637
38
186
5,861
\n
Derivat
ive \ufb01nancial
instruments
1,066
51,289
90
52,445
\n
Of which:
\n
Foreign exchange
161
41,577
10
41,748
\n
Interest rate
9
6,314
53
6,376
\n
Credit
\u2013
2,265
24
2,289
\n
Equity and stock index options
\u2013
133
3
136
\n
Commodity
896
1,000
\u2013
1,896
\n
Investment securit
ies
\n
Debt securit
ies and other el
ig
ible b
ills
51,298
70,037
40
121,375
\n
Of which:
\n
Issued by Central Banks & Governments
39,590
24,651
40
64,281
\n
Issued by corporates other than \ufb01nancial
inst
itut
ions
\n
1
\n
\u2013
1,963
\u2013
1,963
\n
Issued by \ufb01nancial
inst
itut
ions
\n
1
\n
11,708
43,423
\u2013
55,131
\n
Equity shares
227
17
493
737
\n
Other Assets
\u2013
\u2013
26
26
\n
Total \ufb01nancial
instruments at 31 December 2021\u00b2
70,285
229,277
4,116
303,678
\n
Liab
il
it
ies
\n
Financ
ial
instruments held at fair value through pro\ufb01t or loss
\n
Deposits by banks
\u2013
1,069
283
1,352
\n
Customer accounts
\u2013
8,837
454
9,291
\n
Repurchase agreements and other sim
ilar secured borrow
ing
\u2013
62,388
\u2013
62,388
\n
Debt securit
ies
in issue
\u2013
4,776
821
5,597
\n
Short posit
ions
4,187
2,375
\u2013
6,562
\n
Derivat
ive \ufb01nancial
instruments
949
52,356
94
53,399
\n
Of which:
\n
Foreign exchange
169
41,555
3
41,727
\n
Interest rate
7
6,448
16
6,471
\n
Credit
\u2013
3,084
41
3,125
\n
Equity and stock index options
\u2013
126
34
160
\n
Commodity
773
1,143
\u2013
1,916
\n
Other Liab
il
it
ies
\u2013
6
1
7
\n
Total \ufb01nancial
instruments at 31 December 2021\u00b2
5,136
131,807
1,653
138,596
\n
1
Includes covered bonds of $7,326 mill
ion, secur
it
ies
issued by Multilateral Development Banks/International Organisat
ions of $12,109 m
ill
ion , and State-owned
\n
agencies and development banks of $19,959 mill
ion
\n
2
The above table does not include held for sale assets of $43 mill
ion and l
iab
il
it
ies of $n
il. These are reported in Note 21 together with their fair value hierarchy
\n
The fair value of derivat
ives and debt secur
it
ies
in issue classif
ied as Level 2
in the fair value hierarchy that are subject to complex
\n
modelling techniques is $684 mill
ion.
388
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
13. Financ
ial
instruments
continued
\n
Fair value hierarchy \u2013 \ufb01nanc
ial
instruments measured at amortised cost
\n
The following table shows the carrying amounts and incorporates the Group\u2019s estimate of fair values of those \ufb01nanc
ial assets
\n
and liab
il
it
ies not presented on the Group\u2019s balance sheet at fa
ir value. These fair values may be different from the actual
\n
amount that will be received or paid on the settlement or maturity of the \ufb01nanc
ial
instrument. For certain instruments, the fair
\n
value may be determined using assumptions for which no observable prices are available.
\n
Carrying value
\n
$mill
ion
\n
Fair value
\n
Level 1
\n
$mill
ion
\n
Level 2
\n
$mill
ion
\n
Level 3
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Assets
\n
Cash and balances at central banks\u00b9
58,263
\u2013
58,263
\u2013
58,263
\n
Loans and advances to banks
39,519
\u2013
39,488
\u2013
39,488
\n
of which \u2013 reverse repurchase agreements and
\n
other sim
ilar secured lend
ing
978
\u2013
924
\u2013
924
\n
Loans and advances to customers
310,647
\u2013
58,663
251,560
310,223
\n
of which \u2013 reverse repurchase agreements and
\n
other sim
ilar secured lend
ing
24,498
\u2013
15,727
8,911
24,638
\n
Investment securit
ies\u00b2
59,714
\u2013
56,444
25
56,469
\n
Other assets\u00b9
39,295
\u2013
39,295
\u2013
39,295
\n
Assets held for sale
1,388
344
946
98
1,388
\n
At 31 December 2022
508,826
344
253,099
251,683
505,126
\n
Liab
il
it
ies
\n
Deposits by banks
28,789
\u2013
28,813
\u2013
28,813
\n
Customer accounts
461,677
\u2013
461,665
\u2013
461,665
\n
Repurchase agreements and other sim
ilar
\n
secured borrowing
2,108
\u2013
2,108
\u2013
2,108
\n
Debt securit
ies
in issue
61,242
24,624
36,148
\u2013
60,772
\n
Subordinated liab
il
it
ies and other borrowed funds
13,715
12,445
385
\u2013
12,830
\n
Other liab
il
it
ies\u00b9
42,915
\u2013
42,914
1
42,915
\n
Liab
il
it
ies held for sale
1,230
398
832
\u2013
1,230
\n
At 31 December 2022
611,676
37,467
572,865
1
610,333
\n
Carrying value
\n
$mill
ion
\n
Fair value
\n
Level 1
\n
$mill
ion
\n
Level 2
\n
$mill
ion
\n
Level 3
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Assets
\n
Cash and balances at central banks\u00b9
72,663
\u2013
72,663
\u2013
72,663
\n
Loans and advances to banks
44,383
\u2013
44,383
\u2013
44,383
\n
of which \u2013 reverse repurchase agreements and
\n
other sim
ilar secured lend
ing
1,079
\u2013
1,079
\u2013
1,079
\n
Loans and advances to customers
298,468
\u2013
42,136
256,289
298,425
\n
of which \u2013 reverse repurchase agreements and
\n
other sim
ilar secured lend
ing
7,331
\u2013
3,764
3,567
7,331
\n
Investment securit
ies\u00b2
41,325
\u2013
41,864
\u2013
41,864
\n
Other assets\u00b9
40,068
\u2013
40,067
1
40,068
\n
Assets held for sale
52
\u2013
\u2013
52
52
\n
At 31 December 2021
496,959
\u2013
241,113
256,342
497,455
\n
Liab
il
it
ies
\n
Deposits by banks
30,041
\u2013
30,041
\u2013
30,041
\n
Customer accounts
474,570
\u2013
474,645
\u2013
474,645
\n
Repurchase agreements and other sim
ilar
\n
secured borrowing
3,260
\u2013
3,260
\u2013
3,260
\n
Debt securit
ies
in issue
61,293
26,073
35,503
\u2013
61,576
\n
Subordinated liab
il
it
ies and other borrowed funds
16,646
16,811
519
\u2013
17,330
\n
Other liab
il
it
ies\u00b9
43,432
\u2013
43,431
1
43,432
\n
Liab
il
it
ies held for sale
\u2013
\u2013
\u2013
\u2013
\u2013
\n
At 31 December 2021
629,242
42,884
587,399
1
630,284
\n
1
The carrying amount of these \ufb01nanc
ial
instruments is considered to be a reasonable approximat
ion of fa
ir value as they are short-term in nature or reprice to
\n
current market rates frequently
\n
2
Includes Government bonds and Treasury bills of $17,943 mill
ion at 31 December 2022 and $17,153 m
ill
ion at 31 December 2021
389
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
13. Financ
ial
instruments
continued
\n
Loans and advances to customers by client segment
\n
1
\n
2022
\n
Carrying value
Fair value
\n
Stage 3
\n
$mill
ion
\n
Stage 1 and
\n
stage 2
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Stage 3
\n
$mill
ion
\n
Stage 1 and
\n
stage 2
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Corporate, Commercial &
\n
Institut
ional Bank
ing
2,481
137,150
139,631
2,525
137,187
139,712
\n
Consumer, Private & Business Banking
677
130,278
130,955
685
131,679
132,364
\n
Ventures
\u2013
698
698
\u2013
696
696
\n
Central & other items
230
39,133
39,363
230
37,221
37,451
\n
At 31 December 2022
3,388
307,259
310,647
3,440
306,783
310,223
\n
2021 (Restated)\u00b2
\n
Carrying value
Fair value
\n
Stage 3
\n
$mill
ion
\n
Stage 1 and
\n
stage 2
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Stage 3
\n
$mill
ion
\n
Stage 1 and
\n
stage 2
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Corporate, Commercial &
\n
Institut
ional Bank
ing
2,659
136,742
139,401
2,750
136,463
139,213
\n
Consumer, Private & Business Banking
779
135,651
136,430
780
135,782
136,562
\n
Ventures
\u2013
88
88
\u2013
88
88
\n
Central & other items
\u2013
22,549
22,549
\u2013
22,562
22,562
\n
At 31 December 2021
3,438
295,030
298,468
3,530
294,895
298,425
\n
1
Loans and advances includes reverse repurchase agreements and other sim
ilar secured lend
ing: carrying value $24,498 mill
ion and fa
ir value $24,638 mill
ion
\n
(2021: $7,331 mill
ion and $7,331 m
ill
ion respect
ively)
\n
2
Following the increased strategic importance and reporting of Ventures to management, this has been established as a separate operating segment from
\n
January 2022. Prior period has been restated
390
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
13. Financ
ial
instruments
continued
\n
Fair value of \ufb01nanc
ial
instruments
\n
Level 3 Summary and sign
i\ufb01cant unobservable
inputs
\n
The following table presents the Group\u2019s primary Level 3 \ufb01nanc
ial
instruments which are held at fair value. The table also
\n
presents the valuation techniques used to measure the fair value of those \ufb01nanc
ial
instruments, the sign
i\ufb01cant unobservable
\n
inputs, the range of values for those inputs and the weighted average of those inputs:
\n
Instrument
\n
Value as at
\n
31 December 2022
\n
Princ
ipal valuat
ion
\n
technique
\n
Sign
i\ufb01cant unobservable
\n
inputs
Range
\n
1
\n
Weighted
\n
average
\n
2
\n
Assets
\n
$mill
ion
\n
Liab
il
it
ies
\n
$mill
ion
\n
Loans and advances to banks
21
\u2013
Discounted cash \ufb02ows
Price/yield
N/A
N/A
\n
Credit spreads
2.9%
2.9%
\n
Loans and advances to customers
1,805
\u2013
Discounted cash \ufb02ows
Price/yield
0.3% \u2013 18.2%
5.3%
\n
Recovery rates
5.0% \u2013 100%
90.5%
\n
Reverse repurchase agreements
\n
and other sim
ilar secured lend
ing
\n
1,998
\u2013
Discounted cash \ufb02ows
Repo curve
2.3% \u2013 8.0%
6.2%
\n
Price/yield
1.9%\u20137.2%
6.0%
\n
Debt securit
ies, alternat
ive tier one
\n
and other elig
ible secur
it
ies
\n
1,152
\u2013
Discounted cash \ufb02ows
Price/yield
3.1% \u2013 48.5%
7.1%
\n
Recovery rates
0.0% \u2013 1.0%
0.2%
\n
Government bonds and
\n
treasury bills
\n
\u2013
\u2013
Discounted cash \ufb02ows
Price/yield
N/A
N/A
\n
Asset-backed securit
ies
1
\u2013
Discounted cash \ufb02ows
Price/yield
6.8%
6.8%
\n
Equity shares (includes private
\n
equity investments)
\n
837
\u2013
Comparable pric
ing/y
ield
EV/EBITDA multiples
7.0x \u2013 13.1x
11.0x
\n
EV/Revenue multiples
8.2x \u2013 23.2x
12.9x
\n
P/E multiples
13.4x \u2013 29.7x
17.6x
\n
P/B multiples
0.3x \u2013 3.3x
1.3x
\n
P/S multiples
2.1x \u2013 2.2x
2.2x
\n
Liqu
id
ity discount
10.0% \u2013 29.7%
17.5%
\n
Discounted cash \ufb02ows
Discount rates
7.5% \u2013 16.4%
9.4%
\n
Option pric
ing model
Equity value based on
\n
EV/Revenue multiples
\n
4.8x \u2013 76.1x
32.9x
\n
Equity value based on
\n
EV/EBITDA multiples
\n
2.6x
2.6x
\n
Equity value based
\n
on volatil
ity
\n
60.0%
60.0%
\n
Other Assets
7
\u2013
NAV
N/A
N/A
N/A
\n
Derivat
ive \ufb01nancial
instruments
\n
of which:
\n
Foreign exchange
13
12
Option pric
ing model
Foreign exchange option
\n
impl
ied volat
il
ity
\n
(21.0)% \u2013 21.0%
(2.7)%
\n
Discounted cash \ufb02ows
Foreign exchange curves
(4.6)% \u2013 81.8%
15.9%
\n
Interest rate
28
12
Discounted cash \ufb02ows
Interest rate curves
(2.1)% \u2013 50.2%
10.6%
\n
Option pric
ing model
Bond option impl
ied
\n
volatil
ity
\n
N/A
N/A
\n
Credit
1
42
Discounted cash \ufb02ows
Credit spreads
0.1% \u2013 2.3%
1.4%
\n
Price/yield
7.2% \u2013 9.7%
7.2%
\n
Equity and stock index
2
55
Internal pric
ing model
Equity correlation
30.0% \u2013 96.0%
67.0%
\n
Equity-FX correlation
(70.0)% \u2013 85.0%
37.0%
\n
Deposits by banks
\u2013
288
Discounted cash \ufb02ows
Credit spreads
0.9% \u2013 3.4%
1.8%
\n
Price/yield
6.0%
6.0%
\n
Customer accounts
\u2013
972
Discounted cash \ufb02ows
Credit spreads
0.9% \u2013 19.1%
10.3%
\n
Internal pric
ing model
Equity correlation
30.0% \u2013 96.0%
67.0%
\n
Equity-FX correlation
(70.0)% \u2013 85.0%
37.0%
\n
Discounted cash \ufb02ows
Interest rate curves
N/A
N/A
\n
Price/yield
3.1% \u2013 22.9%
17.8%
\n
Debt securit
ies
in issue
\u2013
451
Discounted cash \ufb02ows
Credit Spreads
0.3% \u2013 7.0%
4.7%
\n
Price/Yield
6.8% \u2013 12.4%
9.1%
\n
Internal pric
ing model
Equity-Equity Correlation
30.0% \u2013 96.0%
67.0%
\n
Equity-FX Correlation
(70.0)% \u2013 85.0%
37.0%
\n
Short posit
ions
\u2013
40
Discounted cash \ufb02ows
Price/yield
6.8%
6.8%
\n
Other Liab
il
it
ies
\u2013
6
Comparable pric
ing/y
ield
EV/EBITDA multiples
4.2x \u20139.0x
6.1x
\n
Total
5,865
1,878
\n
1
The ranges of values shown in the above table represent the highest and lowest levels used in the valuation of the Group\u2019s Level 3 \ufb01nanc
ial
instruments as at 31
\n
December 2022. The ranges of values used are re\ufb02ective of the underlying characterist
ics of these Level 3 \ufb01nancial
instruments based on the market condit
ions at
\n
the balance sheet date. However, these ranges of values may not represent the uncertainty in fair value measurements of the Group\u2019s Level 3 \ufb01nanc
ial
instruments
\n
2
Weighted average for non-derivat
ive \ufb01nancial
instruments has been calculated by weight
ing
inputs by the relative fair value. Weighted average for derivat
ives
\n
has been provided by weight
ing
inputs by the risk relevant to that variable. N/A has been entered for the cases where weighted average is not a meaningful
\n
ind
icator
391
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
13. Financ
ial
instruments
continued
\n
Level 3 summary and sign
i\ufb01cant unobservable
inputs
continued
\n
Instrument
\n
Value as at
\n
31 December 2021
\n
Princ
ipal valuat
ion
\n
technique
\n
Sign
i\ufb01cant unobservable
\n
inputs
Range
\n
1
\n
Weighted
\n
average
\n
2
\n
Assets
\n
$mill
ion
\n
Liab
il
it
ies
\n
$mill
ion
\n
Loans and advances to banks
9
\u2013
Discounted cash \ufb02ows
Recovery rates
87.3%\u2013100%
93.6%
\n
Loans and advances
\n
to customers
\n
1,357
\u2013
Discounted cash \ufb02ows
Price/yield
0.2% \u2013 11.8%
3.1%
\n
Recovery rates
10.6% \u2013 100%
87.8%
\n
Reverse repurchase
\n
agreements and other sim
ilar
\n
secured lending
\n
1,566
\u2013
Discounted cash \ufb02ows
Repo curve
0.3%\u20133.0%
2.4%
\n
Debt securit
ies, alternat
ive tier
\n
one and other elig
ible secur
it
ies
\n
349
\u2013
Discounted cash \ufb02ows
Price/yield
5.1% \u2013 12.4%
7.5%
\n
Recovery rates
0.01% \u2013 1.0%
0.2%
\n
Government bonds and
\n
treasury bills
\n
40
\u2013
Discounted cash \ufb02ows
Price/yield
2.7% \u2013 5.5%
3.7%
\n
Asset-backed securit
ies
\u2013
\u2013
Discounted cash \ufb02ows
Price/yield
N/A
N/A
\n
Equity shares (includes private
\n
equity investments)
\n
679
\u2013
Comparable pric
ing/
\n
yield
\n
EV/EBITDA multiples
6.1x\u201315.3x
8.6x
\n
EV/Revenue multiples
10.1x
10.1x
\n
P/E multiples
12.6x\u201325.3x
14.9x
\n
P/B multiples
0.4x\u20133.3x
1.4x
\n
P/S multiples
1.8x\u20132.6x
1.8x
\n
Liqu
id
ity discount
7.9%\u201329.2%
16.5%
\n
Discounted cash \ufb02ows
Discount rates
6.0%\u201317.4%
8.6%
\n
Option pric
ing model
EV/Revenue multiples
4.0x\u201385.5x
12.1x
\n
Volatil
ity
55.0%\u201365.0%
60.3%
\n
Other Assets
26
\u2013
NAV
N/A
N/A
N/A
\n
Derivat
ive \ufb01nancial
instruments
\n
of which:
\n
Foreign exchange
10
3
Option pric
ing model
Foreign exchange
\n
option impl
ied volat
il
ity
\n
3.1% \u2013 6.1%
5.1%
\n
Discounted cash \ufb02ows
Foreign exchange
\n
curves
\n
(16.4)% \u2013 57.3%
9.0%
\n
Interest rate
53
16
Discounted cash \ufb02ows
Interest rate curves
(16.4)%\u201318.8%
5.0%
\n
Option pric
ing model
Bond option impl
ied
\n
volatil
ity
\n
N/A
N/A
\n
Credit
24
41
Discounted cash \ufb02ows
Credit spreads
0.1%\u201311.5%
1.0%
\n
Price/yield
5.9% \u20137.3%
6.6%
\n
Equity and stock index
3
34
Internal pric
ing model
Equity correlation
8.0% \u2013 96.0%
70.0%
\n
Equity-FX correlation
(70.0)%\u201385.0%
(33.0)%
\n
Deposits by banks
\u2013
283
Discounted cash \ufb02ows
Credit spreads
0.4% \u2013 3.0%
1.4%
\n
Price/yield
6.8%\u20138.3%
7.5%
\n
Customer accounts
\u2013
454
Discounted cash \ufb02ows
Credit spreads
1.0% \u2013 2.0%
1.2%
\n
Interest rate curves
0.9%\u20135.6%
4.7%
\n
Price/yield
8.9%\u201312.1%
10.1%
\n
Debt securit
ies
in issue
\u2013
821
Discounted cash \ufb02ows
Credit spreads
0.9%\u20132.2%
1.0%
\n
Interest rate curves
0.9% \u2013 5.6%
4.9%
\n
Internal pric
ing model
Equity correlation
8.0% \u2013 96.0%
70.0%
\n
Equity-FX correlation
(70.0)%\u201385.0%
(33.0)%
\n
Short posit
ion
\u2013
\u2013
N/A
N/A
N/A
N/A
\n
Other Liab
il
it
ies
\u2013
1
Comparable pric
ing/
\n
yield
\n
EV/EBITDA multiples
3.07x\u20139.95x
6.84x
\n
Total
4,116
1,653
\n
1
The ranges of values shown in the above table represent the highest and lowest levels used in the valuation of the Group\u2019s Level 3 \ufb01nanc
ial
instruments as at 31
\n
December 2021. The ranges of values used are re\ufb02ective of the underlying characterist
ics of these Level 3 \ufb01nancial
instruments based on the market condit
ions at
\n
the balance sheet date. However, these ranges of values may not represent the uncertainty in fair value measurements of the Group\u2019s Level 3 \ufb01nanc
ial
instruments
\n
2
Weighted average for non-derivat
ive \ufb01nancial
instruments has been calculated by weight
ing
inputs by the relative fair value. Weighted average for derivat
ives
\n
has been provided by weight
ing
inputs by the risk relevant to that variable. N/A has been entered for the cases where weighted average is not a meaningful
\n
ind
icator
392
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
13. Financ
ial
instruments
continued
\n
Level 3 Summary and sign
i\ufb01cant unobservable
inputs
continued
\n
The following section describes the sign
i\ufb01cant unobservable
inputs ident
i\ufb01ed
in the valuation technique table:
\n
\u2022
Comparable price/yield
is a valuation methodology in which the price of a comparable instrument is used to estimate the
\n
fair value where there are no direct observable prices. Yield is the interest rate that is used to discount the future cash \ufb02ows in
\n
a discounted cash \ufb02ow model. Valuation using comparable instruments can be done by calculating an impl
ied y
ield (or
\n
spread over a liqu
id benchmark) from the pr
ice of a comparable instrument, then adjust
ing that y
ield (or spread) to derive a
\n
value for the instrument. The adjustment should account for relevant differences in the \ufb01nanc
ial
instruments such as maturity
\n
and/or credit quality. Alternatively, a price-to-price basis can be assumed between the comparable instrument and the
\n
instrument being valued in order to establish the value of the instrument (for example, deriv
ing a fa
ir value for a jun
ior
\n
unsecured bond from the price of a senior secured bond). An increase in price, in isolat
ion, would result
in a favourable
\n
movement in the fair value of the asset. An increase in yield, in isolat
ion, would result
in an unfavourable movement in the fair
\n
value of the asset
\n
\u2022
Correlation
is the measure of how movement in one variable in\ufb02uences the movement in another variable. An equity
\n
correlation is the correlation between two equity instruments while an interest rate correlation refers to the correlation
\n
between two swap rates
\n
\u2022
Credit spread
represents the addit
ional y
ield that a market partic
ipant would demand for tak
ing exposure to the Credit Risk
\n
of an instrument
\n
\u2022
Discount rate
refers to the rate of return used to convert expected cash \ufb02ows into present value
\n
\u2022
Equity-FX correlation
is the correlation between equity instrument and foreign exchange instrument
\n
\u2022
EV/EBITDA multiple
is the ratio of Enterprise Value (EV) to Earnings Before Interest, Taxes, Depreciat
ion and Amort
isat
ion
\n
(EBITDA). EV is the aggregate market capital
isat
ion and debt minus the cash and cash equivalents. An increase in EV/EBITDA
\n
multiple will result in a favourable movement in the fair value of the unlisted \ufb01rm
\n
\u2022
EV/Revenue multiple
is the ratio of Enterprise Value (EV) to Revenue. An increase in EV/Revenue multiple will result in a
\n
favourable movement in the fair value of the unlisted \ufb01rm
\n
\u2022
Foreign exchange curves
is the term structure for forward rates and swap rates between currency pairs over a specif
ied
\n
period
\n
\u2022
Net asset value (NAV)
is the value of an entity\u2019s assets after deducting any liab
il
it
ies
\n
\u2022
Interest rate curves
is the term structure of interest rates and measure of future interest rates at a particular point in time
\n
\u2022
Liqu
id
ity discounts in the valuation of unlisted investments
are primar
ily appl
ied to the valuation of unlisted \ufb01rms\u2019
\n
investments to re\ufb02ect the fact that these stocks are not actively traded. An increase in liqu
id
ity discount will result in an
\n
unfavourable movement in the fair value of the unlisted \ufb01rm
\n
\u2022
Price-Earnings (P/E) multiple
is the ratio of the market value of the equity to the net income after tax. An increase in P/E
\n
multiple will result in a favourable movement in the fair value of the unlisted \ufb01rm
\n
\u2022
Price-Book (P/B) multiple
is the ratio of the market value of equity to the book value of equity. An increase in P/B multiple will
\n
result in a favourable movement in the fair value of the unlisted \ufb01rm
\n
\u2022
Price-Sales (P/S) multiple
is the ratio of the market value of equity to sales. An increase in P/S multiple will result in a
\n
favourable movement in the fair value of the unlisted \ufb01rm
\n
\u2022
Recovery rate
is the expectation of the rate of return resulting from the liqu
idat
ion of a particular loan. As the probabil
ity of
\n
default increases for a given instrument, the valuation of that instrument will increas
ingly re\ufb02ect
its expected recovery level
\n
assuming default. An increase in the recovery rate, in isolat
ion, would result
in a favourable movement in the fair value of the
\n
loan
\n
\u2022
Repo curve
is the term structure of repo rates on repos and reverse repos at a particular point in time
\n
\u2022
Volatil
ity
represents an estimate of how much a particular instrument, parameter or index will change in value over time.
\n
Generally, the higher the volatil
ity, the more expens
ive the option will be
393
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
13. Financ
ial
instruments
continued
\n
Level 3 movement tables \u2013 \ufb01nancial assets
\n
The table below analyses movements in Level 3 \ufb01nanc
ial assets carr
ied at fair value.
\n
Assets
\n
2022
\n
Held at fair value through pro\ufb01t or loss
\n
Derivat
ive
\n
\ufb01nancial
\n
instruments
\n
$mill
ion
\n
Investment securit
ies
\n
Total
\n
$mill
ion
\n
Loans and
\n
advances
\n
to banks
\n
$mill
ion
\n
Loans and
\n
advances
\n
to customers
\n
$mill
ion
\n
Reverse
\n
repurchase
\n
agreements
\n
and other
\n
sim
ilar
\n
secured
\n
lending
\n
$mill
ion
\n
Debt
\n
securit
ies,
\n
alternative
\n
tier one
\n
and other
\n
elig
ible b
ills
\n
$mill
ion
\n
Equity
\n
shares
\n
$mill
ion
\n
Other
\n
Assets
\n
$mill
ion
\n
Debt
\n
securit
ies,
\n
alternative
\n
tier one
\n
and other
\n
elig
ible b
ills
\n
$mill
ion
\n
Equity
\n
shares
\n
$mill
ion
\n
At 01 January 2022
9
1,357
1,566
349
186
26
90
40
493
4,116
\n
Total (losses)/gains
\n
recognised in
\n
income statement
(16)
(132)
2
7
4
\u2013
30
\u2013
\u2013
(105)
\n
Net interest income
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\n
Net trading income
(16)
(132)
2
7
4
\u2013
30
\u2013
\u2013
(105)
\n
Other operating income
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\n
Total (losses)/gains
\n
recognised in other
\n
comprehensive income
\n
(OCI)
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
(1)
(8)
(9)
\n
Fair value through
\n
OCI reserve
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
(1)
(1)
(2)
\n
Cash \ufb02ow hedge reserve
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\n
Exchange difference
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
(7)
(7)
\n
Purchases
55
1,605
6,438
1,063
2
8
118
\u2013
166
9,455
\n
Issues
\n
Sales
(30)
(237)
(5,484)
(342)
(10)
(10)
(99)
\u2013
(6)
(6,218)
\n
Settlements
(19)
(877)
(524)
(1)
\u2013
\u2013
(80)
(39)
\u2013
(1,540)
\n
Transfers out
\n
1
\n
\u2013
(160)
\u2013
\u2013
\u2013
(17)
(29)
\u2013
\u2013
(206)
\n
Transfers in
\n
2
\n
22
249
\u2013
77
\u2013
\u2013
14
\u2013
10
372
\n
At 31 December 2022
21
1,805
1,998
1,153
182
7
44
\u2013
655
5,865
\n
Total unrealised gains/
\n
(losses) recognised in
\n
the income statement,
\n
with
in net trad
ing income,
\n
relating to change in
\n
fair value of assets held
\n
at 31 December 2022
\u2013
\u2013
\u2013
\u2013
3
\u2013
(2)
\u2013
\u2013
1
\n
1
Transfers out includes loans and advances, other assets and derivat
ive \ufb01nancial
instruments where the valuation parameters became observable during the
\n
period and were transferred to Level 1 and Level 2
\n
2
Transfers in primar
ily relate to loans and advances, debt secur
it
ies, alternat
ive tier one and other elig
ible b
ills and derivat
ive \ufb01nancial
instruments where the
\n
valuation parameters become unobservable during the year
394
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
13. Financ
ial
instruments
continued
\n
Level 3 movement tables \u2013 \ufb01nancial assets
continued
\n
The table below analyses movements in Level 3 \ufb01nanc
ial assets carr
ied at fair value.
\n
Assets
\n
2021
\n
Held at fair value through pro\ufb01t or loss
\n
Derivat
ive
\n
\ufb01nancial
\n
instruments
\n
$mill
ion
\n
Investment securit
ies
\n
Total
\n
$mill
ion
\n
Loans and
\n
advances
\n
to banks
\n
$mill
ion
\n
Loans and
\n
advances
\n
to customers
\n
$mill
ion
\n
Reverse
\n
repurchase
\n
agreements
\n
and other
\n
sim
ilar
\n
secured
\n
lending
\n
$mill
ion
\n
Debt
\n
securit
ies,
\n
alternative
\n
tier one
\n
and other
\n
elig
ible b
ills
\n
$mill
ion
\n
Equity
\n
shares
\n
$mill
ion
\n
Other
\n
Assets
\n
$mill
ion
\n
Debt
\n
securit
ies,
\n
alternative
\n
tier one
\n
and other
\n
elig
ible b
ills
\n
$mill
ion
\n
Equity
\n
shares
\n
$mill
ion
\n
At 01 January 2021
200
718
1,064
258
279
\u2013
8
40
381
2,948
\n
Total gains/(losses)
\n
recognised in
\n
income statement
1
(97)
2
(24)
(30)
\u2013
34
\u2013
\u2013
(114)
\n
Net interest income
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\n
Net trading income
1
(97)
2
(23)
(30)
\u2013
34
\u2013
\u2013
(113)
\n
Other operating income
\u2013
\u2013
\u2013
(1)
\u2013
\u2013
\u2013
\u2013
\u2013
(1)
\n
Total gains recognised in
\n
other comprehensive
\n
income (OCI)
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
3
61
64
\n
Fair value through
\n
OCI reserve
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
6
63
69
\n
Cash \ufb02ow hedge reserve
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\n
Exchange difference
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
(3)
(2)
(5)
\n
Purchases
9
1,281
4,973
387
7
\u2013
91
\u2013
123
6,871
\n
Issues
\n
Sales
\u2013
(687)
(4,392)
(226)
(55)
\u2013
(32)
\u2013
(9)
(5,401)
\n
Settlements
(201)
(302)
(81)
(70)
\u2013
\u2013
(5)
(13)
\u2013
(672)
\n
Transfers out
\n
1
\n
\u2013
(60)
\u2013
\u2013
(15)
\u2013
(11)
\u2013
(63)
(149)
\n
Transfers in
\n
2
\n
\u2013
504
\u2013
24
\u2013
26
5
10
\u2013
569
\n
At 31 December 2021
9
1,357
1,566
349
186
26
90
40
493
4,116
\n
Total unrealised gains/
\n
(losses) recognised in
\n
the income statement,
\n
with
in net trad
ing income,
\n
relating to change in
\n
fair value of assets held
\n
at 31 December 2021
\u2013
\u2013
\u2013
8
(15)
\u2013
19
\u2013
\u2013
12
\n
1
Transfers out include loans and advances, derivat
ive \ufb01nancial
instruments and equity shares where the valuation parameters became observable during the
\n
period and were transferred to Level 1 and Level 2
\n
2
Transfers in primar
ily relate to loans and advances, debt secur
it
ies, alternat
ive tier one and other elig
ible b
ills, derivat
ive \ufb01nancial
instruments and other assets
\n
where the valuation parameters become unobservable during the year
395
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
13. Financ
ial
instruments
continued
\n
Level 3 movement tables \u2013 \ufb01nancial l
iab
il
it
ies
\n
2022
\n
Deposits
\n
by banks
\n
$mill
ion
\n
Customer
\n
accounts
\n
$mill
ion
\n
Debt
\n
securit
ies
\n
in issue
\n
$mill
ion
\n
Derivat
ive
\n
\ufb01nancial
\n
instruments
\n
$mill
ion
\n
Short
\n
posit
ions
\n
$mill
ion
\n
Other
\n
liab
il
it
ies
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
At 01 January 2022
283
454
821
94
\u2013
1
1,653
\n
Total (gains)/losses recognised in income statement
\n
\u2013 net trading income
(37)
(82)
(158)
155
(3)
5
(120)
\n
Issues
447
1,818
815
179
140
\u2013
3,399
\n
Settlements
(400)
(1,266)
(1,066)
(291)
(97)
\u2013
(3,120)
\n
Transfers out
\n
1
\n
(5)
\u2013
(38)
(23)
\u2013
\u2013
(66)
\n
Transfers in
\n
2
\n
\u2013
48
77
7
\u2013
\u2013
132
\n
At 31 December 2022
288
972
451
121
40
6
1,878
\n
Total unrealised gains recognised in the income
\n
statement, with
in net trad
ing income, relating
\n
to change in fair value of liab
il
it
ies held at
\n
31 December 2022
(1)
(17)
(7)
(3)
\u2013
\u2013
(28)
\n
2021
\n
Deposits
\n
by banks
\n
$mill
ion
\n
Customer
\n
accounts
\n
$mill
ion
\n
Debt
\n
securit
ies
\n
in issue
\n
$mill
ion
\n
Derivat
ive
\n
\ufb01nancial
\n
instruments
\n
$mill
ion
\n
Short
\n
posit
ions
\n
$mill
ion
\n
Other
\n
liab
il
it
ies
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
At 01 January 2021
146
21
160
119
\u2013
\u2013
446
\n
Total losses/(gains) recognised in income statement
\n
\u2013 net trading income
8
(5)
(12)
(23)
\u2013
\u2013
(32)
\n
Issues
269
803
1,615
166
\u2013
\u2013
2,853
\n
Settlements
(145)
(365)
(986)
(181)
\u2013
\u2013
(1,677)
\n
Transfers out
\n
1
\n
\u2013
\u2013
(48)
(6)
\u2013
\u2013
(54)
\n
Transfers in
\n
2
\n
5
\u2013
92
19
\u2013
1
117
\n
At 31 December 2021
283
454
821
94
\u2013
1
1,653
\n
Total unrealised gains recognised in the income
\n
statement, with
in net trad
ing income, relating
\n
to change in fair value of liab
il
it
ies held at
\n
31 December 2021
\u2013
\u2013
\u2013
(14)
\u2013
\u2013
(14)
\n
1
Transfers out during the year primar
ily relate to bank depos
its, debt securit
ies
in issue and derivat
ive \ufb01nancial
instruments where the valuation parameters
\n
became observable during the year and were transferred to Level 2 \ufb01nanc
ial l
iab
il
it
ies
\n
2
Transfers in during the year primar
ily relate to der
ivat
ive \ufb01nancial
instruments, customer accounts and debt securit
ies
in issue where the valuation parameters
\n
become unobservable during the year
396
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
13. Financ
ial
instruments
continued
\n
Sensit
iv
it
ies
in respect of the fair values of Level 3 assets and liab
il
it
ies
\n
Sensit
iv
ity analysis is performed on products with sign
i\ufb01cant unobservable
inputs. The Group applies a 10 per cent increase or
\n
decrease on the values of these unobservable inputs, to generate a range of reasonably possible alternative valuations. The
\n
percentage shift is determined by statist
ical analys
is performed on a set of reference prices based on the composit
ion of the
\n
Group\u2019s Level 3 inventory as the measurement date. Favourable and unfavourable changes (which show the balance adjusted
\n
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
\n
unobservable parameters. The Level 3 sensit
iv
ity analysis assumes a one-way market move and does not consider offsets for
\n
hedges.
\n
Held at fair value through pro\ufb01t or loss
Fair value through other comprehensive income
\n
Net exposure
\n
$mill
ion
\n
Favourable
\n
changes
\n
$mill
ion
\n
Unfavourable
\n
changes
\n
$mill
ion
\n
Net exposure
\n
$mill
ion
\n
Favourable
\n
changes
\n
$mill
ion
\n
Unfavourable
\n
changes
\n
$mill
ion
\n
Financ
ial
instruments held at fair value
\n
Loans and advances
1,826
1,851
1,758
\u2013
\u2013
\u2013
\n
Reverse Repurchase agreements and
\n
other sim
ilar secured lend
ing
1,998
2,013
1,979
\u2013
\u2013
\u2013
\n
Asset backed securit
ies
1
1
1
\u2013
\u2013
\u2013
\n
Debt securit
ies, alternat
ive tier one and
\n
other elig
ible b
ills
1,152
1,168
1,124
\u2013
\u2013
\u2013
\n
Equity shares
182
200
164
655
715
595
\n
Other Assets
7
8
6
\u2013
\u2013
\u2013
\n
Derivat
ive \ufb01nancial
instruments
(77)
(44)
(109)
\u2013
\u2013
\u2013
\n
Customers accounts
(972)
(934)
(1,010)
\u2013
\u2013
\u2013
\n
Deposits by banks
(288)
(283)
(293)
\u2013
\u2013
\u2013
\n
Repurchase agreements and other
\n
sim
ilar secured borrow
ings
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\n
Short posit
ions
(40)
(39)
(41)
\u2013
\u2013
\u2013
\n
Debt securit
ies
in issue
(451)
(419)
(482)
\u2013
\u2013
\u2013
\n
Other Liab
il
it
ies
(6)
(5)
(7)
\u2013
\u2013
\u2013
\n
At 31 December 2022
3,332
3,517
3,090
655
715
595
\n
Financ
ial
instruments held at fair value
\n
Loans and advances
1,366
1,398
1,328
\u2013
\u2013
\u2013
\n
Reverse Repurchase agreements and
\n
other sim
ilar secured lend
ing
1,566
1,579
1,550
\u2013
\u2013
\u2013
\n
Asset backed securit
ies
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\n
Debt securit
ies, alternat
ive tier one and
\n
other elig
ible b
ills
349
366
332
40
41
38
\n
Equity shares
186
205
168
493
541
442
\n
Other Assets
26
29
24
\u2013
\u2013
\u2013
\n
Derivat
ive \ufb01nancial
instruments
(4)
10
(16)
\u2013
\u2013
\u2013
\n
Customers accounts
(454)
(447)
(461)
\u2013
\u2013
\u2013
\n
Deposits by banks
(283)
(278)
(287)
\u2013
\u2013
\u2013
\n
Short posit
ions
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\n
Debt securit
ies
in issue
(821)
(764)
(879)
\u2013
\u2013
\u2013
\n
Other Liab
il
it
ies
(1)
(1)
(1)
\u2013
\u2013
\u2013
\n
At 31 December 2021
1,930
2,097
1,758
533
582
480
\n
The reasonably possible alternatives could have increased or decreased the fair values of \ufb01nanc
ial
instruments held at fair
\n
value through pro\ufb01t or loss and those classif
ied as fa
ir value through other comprehensive income by the amounts disclosed
\n
below.
\n
Financ
ial
instruments
Fair value changes
\n
31.12.22
\n
$mill
ion
\n
31.12.21
\n
$mill
ion
\n
Held at fair value through pro\ufb01t or loss
Possible increase
185
167
\n
Possible decrease
(242)
(172)
\n
Fair value through other comprehensive income
Possible increase
60
49
\n
Possible decrease
(60)
(53)", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f81552": { "value": "Classif
icat
ion and measurement
\n
Accounting policy
\n
The Group classif
ies
its \ufb01nanc
ial assets
into the following measurement categories: amortised cost; fair value through other
\n
comprehensive income (FVOCI); and fair value through pro\ufb01t or loss. Financ
ial l
iab
il
it
ies are class
if
ied as e
ither amortised
\n
cost, or held at fair value through pro\ufb01t or loss. Management determines the classif
icat
ion of its \ufb01nanc
ial assets and l
iab
il
it
ies
\n
at in
it
ial recognit
ion of the
instrument or, where applicable, at the time of reclassif
icat
ion.
\n
Financ
ial assets held at amort
ised cost and fair value through other comprehensive income
\n
Debt instruments held at amortised cost or held at FVOCI have contractual terms that give rise to cash \ufb02ows that are solely
\n
payments of princ
ipal and
interest (SPPI) characterist
ics. Pr
inc
ipal
is the fair value of the \ufb01nanc
ial asset at
in
it
ial recognit
ion
\n
but this may change over the life of the instrument as amounts are repaid. Interest consists of considerat
ion for the t
ime
\n
value of money, for the credit risk associated with the princ
ipal amount outstand
ing during a particular period and for other
\n
basic lending risks and costs, as well as a pro\ufb01t margin.
\n
In assessing whether the contractual cash \ufb02ows have SPPI characterist
ics, the Group cons
iders the contractual terms of the
\n
instrument. This includes assessing whether the \ufb01nanc
ial asset conta
ins a contractual term that could change the tim
ing or
\n
amount of contractual cash \ufb02ows such that it would not meet this condit
ion. In mak
ing the assessment, the Group considers:
\n
\u2022
Contingent events that would change the amount and tim
ing of cash \ufb02ows
\n
\u2022 Leverage features
\n
\u2022
Prepayment and extension terms
\n
\u2022
Terms that lim
it the Group\u2019s cla
im to cash \ufb02ows from specif
ied assets (e.g. non-recourse asset arrangements);
\n
\u2022
Features that modify considerat
ion of the t
ime value of money \u2013 e.g. period
ical reset of
interest rates
\n
Whether \ufb01nancial assets are held at amort
ised cost or at FVOCI depends on the object
ives of the bus
iness models under
\n
which the assets are held. A business model refers to how the Group manages \ufb01nanc
ial assets to generate cash \ufb02ows.
\n
The Group makes an assessment of the objective of a bus
iness model in which an asset is held at the ind
iv
idual product
\n
business line, and where applicable with
in bus
iness lines depending on the way the business is managed and informat
ion
is
\n
provided to management. Factors considered include:
\n
\u2022
How the performance of the product business line is evaluated and reported to the Group\u2019s management
\n
\u2022
How managers of the business model are compensated, includ
ing whether management
is compensated based on the
\n
fair value of assets or the contractual cash \ufb02ows collected
\n
\u2022
The risks that affect the performance of the business and how those risks are managed
\n
\u2022
The frequency, volume and tim
ing of sales
in prior periods, the reasons for such sales and expectations about future sales
\n
activ
ity
\n
The Group\u2019s business model assessment is as follows:
\n
Business model
Business object
ive
Characterist
ics
Businesses
Products
\n
Hold to
\n
collect
\n
Intent is to orig
inate
\n
\ufb01nancial assets and
\n
hold them to maturity,
\n
collecting the
\n
contractual cash \ufb02ows
\n
over the term of the
\n
instrument
\n
\u2022 Provid
ing \ufb01nancing and
\n
orig
inat
ing assets to earn interest
\n
income as primary income stream
\n
\u2022 Performing credit risk
\n
management activ
it
ies
\n
\u2022
Costs include funding costs,
\n
transaction costs and impa
irment
\n
losses
\n
\u2022 Corporate Lending
\n
\u2022 Financ
ial Markets
\n
\u2022 Transaction Banking
\n
\u2022 Retail Lending
\n
\u2022 Treasury Markets
\n
(Loans and
\n
Borrowings)
\n
\u2022 Loans and advances
\n
\u2022 Debt securit
ies
\n
Hold to
\n
collect
\n
and sell
\n
Business object
ive met
\n
through both hold to
\n
collect and by selling
\n
\ufb01nancial assets
\n
\u2022
Portfolios held for liqu
id
ity needs;
\n
or where a certain interest yield
\n
pro\ufb01le is mainta
ined; or that are
\n
normally rebalanced to achieve
\n
matching of duration of assets
\n
and liab
il
it
ies
\n
\u2022
Income streams come from
\n
interest income, fair value
\n
changes, and impa
irment losses
\n
\u2022 Treasury Markets
\u2022 Debt securit
ies
\n
Fair value
\n
through
\n
pro\ufb01t or loss
\n
All other business
\n
objectives,
includ
ing
\n
trading and managing
\n
\ufb01nancial assets on a fa
ir
\n
value basis
\n
\u2022
Assets held for trading
\n
\u2022
Assets that are orig
inated,
\n
purchased, and sold for pro\ufb01t
\n
taking or underwrit
ing act
iv
ity
\n
\u2022
Performance of the portfolio is
\n
evaluated on a fair value basis
\n
\u2022
Income streams are from fair
\n
value changes or trading gains or
\n
losses
\n
\u2022 Financ
ial Markets
\u2022 Trading portfolios
\n
\u2022 Financ
ial Markets
\n
reverse repos
\n
\u2022 Financ
ial Markets
\n
(FM Bond and Loan
\n
Syndicat
ion)
372
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
13. Financ
ial
instruments
continued
\n
Financ
ial assets wh
ich have SPPI characterist
ics and that are held w
ith
in a bus
iness model whose object
ive
is to hold
\n
\ufb01nancial assets to collect contractual cash\ufb02ows (hold to collect) are recorded at amort
ised cost. Conversely, \ufb01nanc
ial assets
\n
which have SPPI characterist
ics but are held w
ith
in a bus
iness model whose object
ive
is achieved by both collecting
\n
contractual cash\ufb02ows and selling \ufb01nanc
ial assets (Hold to collect and sell) are class
if
ied as held at FVOCI. Both hold to
\n
collect and hold to collect and sell business models involve holding \ufb01nanc
ial assets to collect the contractual cash\ufb02ows.
\n
However, the business models are dist
inct by reference to the frequency and s
ign
i\ufb01cance that asset sales play
in meeting the
\n
objective under wh
ich a particular group of \ufb01nanc
ial assets
is managed. Hold to collect business models are characterised by
\n
asset sales that are inc
idental to meet
ing the object
ives under wh
ich a group of assets is managed. Sales of assets under a
\n
hold to collect business model can be made to manage increases in the credit risk of \ufb01nanc
ial assets but sales for other
\n
reasons should be infrequent or ins
ign
if
icant. Cash\ufb02ows from the sale of \ufb01nancial assets under a hold to collect and sell
\n
business model by contrast are integral to achiev
ing the objectives under wh
ich a particular group of \ufb01nanc
ial assets are
\n
managed. This may be the case where frequent sales of \ufb01nanc
ial assets are requ
ired to manage the Group\u2019s daily liqu
id
ity
\n
requirements or to meet regulatory requirements to demonstrate liqu
id
ity of \ufb01nanc
ial
instruments. Sales of assets under hold
\n
to collect and sell business models are therefore both more frequent and more sign
i\ufb01cant
in value than those under the hold
\n
to collect model.
\n
Equity instruments designated as held at FVOCI
\n
Non-trading equity instruments acquired for strategic purposes rather than capital gain may be irrevocably designated at
\n
in
it
ial recognit
ion as held at FVOCI on an
instrument-by-instrument basis. Div
idends rece
ived are recognised in pro\ufb01t or loss.
\n
Gains and losses aris
ing from changes
in the fair value of these instruments, includ
ing fore
ign exchange gains and losses, are
\n
recognised directly in equity and are never reclassif
ied to pro\ufb01t or loss even on derecogn
it
ion.
\n
Financ
ial assets and l
iab
il
it
ies held at fa
ir value through pro\ufb01t or loss
\n
Financ
ial assets wh
ich are not held at amortised cost or that are not held at FVOCI are held at fair value through pro\ufb01t or
\n
loss. Financ
ial assets and l
iab
il
it
ies held at fa
ir value through pro\ufb01t or loss are either mandatorily classif
ied as fa
ir value
\n
through pro\ufb01t or loss or irrevocably designated at fair value through pro\ufb01t or loss at in
it
ial recognit
ion.
\n
Mandatorily classif
ied at fa
ir value through pro\ufb01t or loss
\n
Financ
ial assets and l
iab
il
it
ies wh
ich are mandatorily held at fair value through pro\ufb01t or loss are split between two
\n
subcategories as follows:
\n
Trading, includ
ing:
\n
\u2022
Financ
ial assets and l
iab
il
it
ies held for trad
ing, which are those acquired princ
ipally for the purpose of sell
ing in the
\n
short-term
\n
\u2022 Derivat
ives
\n
Non-trading mandatorily at fair value through pro\ufb01t or loss, includ
ing:
\n
\u2022
Instruments in a business which has a fair value business model (see the Group\u2019s business model assessment) which are not
\n
trading or derivat
ives
\n
\u2022
Hybrid \ufb01nanc
ial assets that conta
in one or more embedded derivat
ives
\n
\u2022
Financ
ial assets that would otherw
ise be measured at amortised cost or FVOCI but which do not have SPPI characterist
ics
\n
\u2022
Equity instruments that have not been designated as held at FVOCI
\n
\u2022
Financ
ial l
iab
il
it
ies that const
itute contingent considerat
ion
in a business combinat
ion
\n
Designated at fair value through pro\ufb01t or loss
\n
Financ
ial assets and l
iab
il
it
ies may be des
ignated at fair value through pro\ufb01t or loss when the designat
ion el
im
inates or
\n
sign
i\ufb01cantly reduces a measurement or recogn
it
ion
incons
istency that would otherw
ise arise from measuring assets or
\n
liab
il
it
ies on a d
ifferent basis (\u2018accounting mismatch\u2019).
\n
Financ
ial l
iab
il
it
ies may also be des
ignated at fair value through pro\ufb01t or loss where they are managed on a fair value basis
\n
or have an embedded derivat
ive where the Group
is not able to bifurcate and separately value the embedded derivat
ive
\n
component.
\n
Financ
ial l
iab
il
it
ies held at amort
ised cost
\n
Financ
ial l
iab
il
it
ies that are not \ufb01nancial guarantees or loan comm
itments and that are not classif
ied as \ufb01nancial l
iab
il
it
ies
\n
held at fair value through pro\ufb01t or loss are classif
ied as \ufb01nancial l
iab
il
it
ies held at amort
ised cost.
\n
Preference shares which carry a mandatory coupon that represents a market rate of interest at the issue date, or which are
\n
redeemable on a specif
ic date or at the opt
ion of the shareholder are classif
ied as \ufb01nancial l
iab
il
it
ies and are presented
in
\n
other borrowed funds. The div
idends on these preference shares are recogn
ised in the income statement as interest expense
\n
on an amortised cost basis using the effective interest method.
373
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
13. Financ
ial
instruments
continued
\n
Financ
ial guarantee contracts and loan comm
itments
\n
The Group issues \ufb01nanc
ial guarantee contracts and loan comm
itments in return for fees. Financ
ial guarantee contracts and
\n
any loan commitments issued at below-market interest rates are in
it
ially recognised at their fair value as a \ufb01nanc
ial l
iab
il
ity,
\n
and subsequently measured at the higher of the in
it
ial value less the cumulative amount of income recognised in accordance
\n
with the princ
iples of IFRS 15 Revenue from Contracts w
ith Customers and their expected credit loss provis
ion. Loan
\n
commitments may be designated at fair value through pro\ufb01t or loss where that is the business model under which such
\n
contracts are held.
\n
Fair value of \ufb01nanc
ial assets and l
iab
il
it
ies
\n
Fair value is the price that would be received to sell an asset or paid to transfer a liab
il
ity in an orderly transaction between
\n
market partic
ipants at the measurement date
in the princ
ipal market for the asset or l
iab
il
ity, or in the absence of a princ
ipal
\n
market, the most advantageous market to which the Group has access at the date. The fair value of a liab
il
ity includes the
\n
risk that the bank will not be able to honour its obligat
ions.
\n
The fair value of \ufb01nanc
ial
instruments is generally measured on the basis of the ind
iv
idual \ufb01nanc
ial
instrument. However,
\n
when a group of \ufb01nancial assets and \ufb01nancial l
iab
il
it
ies
is managed on the basis of its net exposure to either market risk or
\n
credit risk, the fair value of the group of \ufb01nanc
ial
instruments is measured on a net basis.
\n
The fair values of quoted \ufb01nanc
ial assets and l
iab
il
it
ies
in active markets are based on current prices. A market is regarded as
\n
active if transactions for the asset or liab
il
ity take place with suf\ufb01c
ient frequency and volume to prov
ide pric
ing
informat
ion
\n
on an ongoing basis. If the market for a \ufb01nanc
ial
instrument, and for unlisted securit
ies,
is not active, the Group establishes
\n
fair value by using valuation techniques.
\n
Init
ial recogn
it
ion
\n
Regular way purchases and sales of \ufb01nancial assets held at fa
ir value through pro\ufb01t or loss, and held at fair value through
\n
other comprehensive income are in
it
ially recognised on the trade date (the date on which the Group commits to purchase or
\n
sell the asset). Loans and advances and other \ufb01nancial assets held at amort
ised cost are recognised on the settlement date
\n
(the date on which cash is advanced to the borrowers).
\n
All \ufb01nancial
instruments are in
it
ially recognised at fair value, which is normally the transaction price, plus directly attributable
\n
transaction costs for \ufb01nanc
ial assets and l
iab
il
it
ies wh
ich are not subsequently measured at fair value through pro\ufb01t or loss.
\n
In certain circumstances, the in
it
ial fair value may be based on a valuation technique which may lead to the recognit
ion of
\n
pro\ufb01ts or losses at the time of in
it
ial recognit
ion. However, these pro\ufb01ts or losses can only be recogn
ised when the valuation
\n
technique used is based solely on observable market data. In those cases where the in
it
ially recognised fair value is based on
\n
a valuation model that uses unobservable inputs, the difference between the transaction price and the valuation model is
\n
not recognised immed
iately
in the income statement but is amortised or released to the income statement following the
\n
passage of time, or as the inputs become observable, or the transaction matures or is terminated.
\n
Subsequent measurement
\n
Financ
ial assets and \ufb01nancial l
iab
il
it
ies held at amort
ised cost
\n
Financ
ial assets and \ufb01nancial l
iab
il
it
ies held at amort
ised cost are subsequently carried at amortised cost using the effective
\n
interest method (see Interest income and expense). Foreign exchange gains and losses are recognised in the income
\n
statement.
\n
Where a \ufb01nancial
instrument carried at amortised cost is the hedged item in a qualify
ing fa
ir value hedge relationsh
ip,
its
\n
carrying value is adjusted by the fair value gain or loss attributable to the hedged risk.
\n
Financ
ial assets held at FVOCI
\n
Debt instruments held at FVOCI are subsequently carried at fair value, with all unrealised gains and losses aris
ing from
\n
changes in fair value (includ
ing any related fore
ign exchange gains or losses) recognised in other comprehensive income and
\n
accumulated in a separate component of equity. Foreign exchange gains and losses on the amortised cost are recognised in
\n
income. Changes in expected credit losses are recognised in the pro\ufb01t or loss and are accumulated in equity. On
\n
derecognit
ion, the cumulat
ive fair value gains or losses, net of the cumulative expected credit loss reserve, are transferred to
\n
the pro\ufb01t or loss.
\n
Equity investments designated at FVOCI are subsequently carried at fair value with all unrealised gains and losses aris
ing
\n
from changes in fair value (includ
ing any related fore
ign exchange gains or losses) recognised in other comprehensive
\n
income and accumulated in a separate component of equity. On derecognit
ion, the cumulat
ive reserve is transferred to
\n
retained earnings and is not recycled to pro\ufb01t or loss.
\n
Financ
ial assets and l
iab
il
it
ies held at fa
ir value through pro\ufb01t or loss
\n
Financ
ial assets and l
iab
il
it
ies mandator
ily held at fair value through pro\ufb01t or loss and \ufb01nanc
ial assets des
ignated at fair
\n
value through pro\ufb01t or loss are subsequently carried at fair value, with gains and losses aris
ing from changes
in fair value,
\n
includ
ing contractual
interest income or expense, recorded in the net trading income line in the pro\ufb01t or loss unless the
\n
instrument is part of a cash \ufb02ow hedging relationsh
ip.
374
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
13. Financ
ial
instruments
continued
\n
Financ
ial l
iab
il
it
ies des
ignated at fair value through pro\ufb01t or loss
\n
Financ
ial l
iab
il
it
ies des
ignated at fair value through pro\ufb01t or loss are held at fair value, with changes in fair value recognised
\n
in the net trading income line in the pro\ufb01t or loss, other than that attributable to changes in credit risk. Fair value changes
\n
attributable to credit risk are recognised in other comprehensive income and recorded in a separate category of reserves
\n
unless this is expected to create or enlarge an accounting mismatch, in which case the entire change in fair value of the
\n
\ufb01nancial l
iab
il
ity designated at fair value through pro\ufb01t or loss is recognised in pro\ufb01t or loss.
\n
Derecognit
ion of \ufb01nancial
instruments
\n
Financ
ial assets are derecogn
ised when the rights to receive cash \ufb02ows from the \ufb01nanc
ial assets have exp
ired or where the
\n
Group has transferred substantially all risks and rewards of ownership. If substantially all the risks and rewards have been
\n
neither retained nor transferred and the Group has retained control, the assets continue to be recognised to the extent of the
\n
Group\u2019s continu
ing
involvement.
\n
Where \ufb01nancial assets have been mod
if
ied, the mod
if
ied terms are assessed on a qual
itat
ive and quant
itat
ive bas
is to
\n
determine whether a fundamental change in the nature of the instrument has occurred, such as whether the derecognit
ion
\n
of the pre-exist
ing
instrument and the recognit
ion of a new
instrument is appropriate.
\n
On derecognit
ion of a \ufb01nancial asset, the d
ifference between the carrying amount of the asset (or the carrying amount
\n
allocated to the portion of the asset derecognised) and the sum of the considerat
ion rece
ived (includ
ing any new asset
\n
obtained less any new liab
il
ity assumed) and any cumulative gain or loss that had been recognised in other comprehensive
\n
income is recognised in pro\ufb01t or loss except for equity instruments elected FVOCI (see above) and cumulative fair value
\n
adjustments attributable to the credit risk of a liab
il
ity that are held in other comprehensive income.
\n
Financ
ial l
iab
il
it
ies are derecogn
ised when they are extingu
ished. A \ufb01nancial l
iab
il
ity is extingu
ished when the obl
igat
ion
is
\n
discharged, cancelled or expires and this is evaluated both qualitat
ively and quant
itat
ively. However, where a \ufb01nancial
\n
liab
il
ity has been modif
ied,
it is derecognised if the difference between the modif
ied cash \ufb02ows and the or
ig
inal cash \ufb02ows
is
\n
more than 10 per cent, or if less than 10 per cent, the Group will perform a qualitat
ive assessment to determ
ine whether the
\n
terms of the two instruments are substantially different.
\n
If the Group purchases its own debt, it is derecognised and the difference between the carrying amount of the liab
il
ity and
\n
the considerat
ion pa
id is included in \u2018Other income\u2019 except for the cumulative fair value adjustments attributable to the
\n
credit risk of a liab
il
ity that are held in other comprehensive income which are never recycled to the pro\ufb01t or loss.
\n
Modif
ied \ufb01nancial
instruments
\n
Financ
ial assets and \ufb01nancial l
iab
il
it
ies whose or
ig
inal contractual terms have been mod
if
ied,
includ
ing those loans subject
\n
to forbearance strategies, are considered to be modif
ied
instruments. Modif
icat
ions may include changes to the tenor, cash
\n
\ufb02ows and or interest rates among other factors.
\n
Where derecognit
ion of \ufb01nancial assets
is appropriate (see Derecognit
ion), the newly recogn
ised residual loans are assessed
\n
to determine whether the assets should be classif
ied as purchased or or
ig
inated Cred
it-Impaired assets (POCI).
\n
Where derecognit
ion
is not appropriate, the gross carrying amount of the applicable instruments is recalculated as the
\n
present value of the renegotiated or modif
ied contractual cash \ufb02ows d
iscounted at the orig
inal effect
ive interest rate (or
\n
credit adjusted effective interest rate for POCI \ufb01nanc
ial assets). The d
ifference between the recalculated values and the
\n
pre-modif
ied gross carry
ing values of the instruments are recorded as a modif
icat
ion gain or loss in the pro\ufb01t or loss.
\n
Gains and losses aris
ing from mod
if
icat
ions for credit reasons are recorded as part of \u2018Credit Impairment\u2019 (see Credit
\n
Impairment policy). Modif
icat
ion gains and losses aris
ing from non-cred
it reasons are recognised either as part of \u201cCredit
\n
Impairment\u201d or with
in
income depending on whether there has been a change in the credit risk on the \ufb01nanc
ial asset
\n
subsequent to the modif
icat
ion. Modif
icat
ion gains and losses aris
ing on \ufb01nancial l
iab
il
it
ies are recogn
ised with
in
income.
\n
The movements in the applicable expected credit loss loan posit
ions are d
isclosed in further detail in Risk Review.
\n
Under the Phase 2 Interest Rate Benchmark Reform amendments to IFRS 9, changes to the basis for determin
ing contractual
\n
cash \ufb02ows as a direct result of interest rate benchmark reform are treated as changes to a \ufb02oating interest rate to that
\n
instrument, provided that the transit
ion from the IBOR benchmark rate to the alternat
ive RFR takes place on an economically
\n
equivalent basis. Where the instrument is measured at amortised cost or FVOCI, this results in a change in the instrument\u2019s
\n
effective interest rate, with no change in the amortised cost value of the instrument. If the change to the instrument does not
\n
meet these criter
ia, the Group appl
ies judgement to assess whether the changes are substantial and if they are, the \ufb01nanc
ial
\n
instrument is derecognised and a new \ufb01nanc
ial
instrument is recognised. If the changes are not substantial, the Group
\n
adjusts the gross carrying amount of the \ufb01nanc
ial
instrument by the present value of the changes not covered by the
\n
practical expedient, discounted using the revised effective interest rate.
375
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
13. Financ
ial
instruments
continued
\n
Reclassif
icat
ions
\n
Financ
ial l
iab
il
it
ies are not reclass
if
ied subsequent to
in
it
ial recognit
ion. Reclass
if
icat
ions of \ufb01nanc
ial assets are made when,
\n
and only when, the business model for those assets changes. Such changes are expected to be infrequent and arise as a
\n
result of sign
i\ufb01cant external or
internal changes such as the terminat
ion of a l
ine of business or the purchase of a subsid
iary
\n
whose business model is to realise the value of pre-exist
ing held for trad
ing \ufb01nanc
ial assets through a hold to collect model.
\n
Financ
ial assets are reclass
if
ied at the
ir fair value on the date of reclassif
icat
ion and previously recognised gains and losses
\n
are not restated. Moreover, reclassif
icat
ions of \ufb01nanc
ial assets between \ufb01nancial assets held at amort
ised cost and \ufb01nanc
ial
\n
assets held at fair value through other comprehensive income do not affect effective interest rate or expected credit loss
\n
computations.
\n
Reclassif
ied from amort
ised cost
\n
Where \ufb01nancial assets held at amort
ised cost are reclassif
ied to \ufb01nancial assets held at fa
ir value through pro\ufb01t or loss, the
\n
difference between the fair value of the assets at the date of reclassif
icat
ion and the previously recognised amortised cost is
\n
recognised in pro\ufb01t or loss.
\n
For \ufb01nancial assets held at amort
ised cost that are reclassif
ied to fa
ir value through other comprehensive income, the
\n
difference between the fair value of the assets at the date of reclassif
icat
ion and the previously recognised gross carrying
\n
value is recognised in other comprehensive income. Addit
ionally, the related cumulat
ive expected credit loss amounts
\n
relating to the reclassif
ied \ufb01nancial assets are reclass
if
ied from loan loss prov
is
ions to a separate reserve
in other
\n
comprehensive income at the date of reclassif
icat
ion.
\n
Reclassif
ied from fa
ir value through other comprehensive income
\n
Where \ufb01nancial assets held at fa
ir value through other comprehensive income are reclassif
ied to \ufb01nancial assets held at fa
ir
\n
value through pro\ufb01t or loss, the cumulative gain or loss previously recognised in other comprehensive income is transferred to
\n
the pro\ufb01t or loss.
\n
For \ufb01nancial assets held at fa
ir value through other comprehensive income that are reclassif
ied to \ufb01nancial assets held at
\n
amortised cost, the cumulative gain or loss previously recognised in other comprehensive income is adjusted against the fair
\n
value of the \ufb01nancial asset such that the \ufb01nancial asset
is recorded at a value as if it had always been held at amortised cost.
\n
In addit
ion, the related cumulat
ive expected credit losses held with
in other comprehens
ive income are reversed against the
\n
gross carrying value of the reclassif
ied assets at the date of reclass
if
icat
ion.
\n
Reclassif
ied from fa
ir value through pro\ufb01t or loss
\n
Where \ufb01nancial assets held at fa
ir value through pro\ufb01t or loss are reclassif
ied to \ufb01nancial assets held at fa
ir value through
\n
other comprehensive income or \ufb01nanc
ial assets held at amort
ised cost, the fair value at the date of reclassif
icat
ion is used to
\n
determine the effective interest rate on the \ufb01nanc
ial asset go
ing forward. In addit
ion, the date of reclass
if
icat
ion is used as
\n
the date of in
it
ial recognit
ion for the calculat
ion of expected credit losses. Where \ufb01nanc
ial assets held at fa
ir value through
\n
pro\ufb01t or loss are reclassif
ied to \ufb01nancial assets held at amort
ised cost, the fair value at the date of reclassif
icat
ion becomes
\n
the gross carrying value of the \ufb01nanc
ial asset.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f81865": { "value": "Equity instruments designated as held at FVOCI \n
Non-trading equity instruments acquired for strategic purposes rather than capital gain may be irrevocably designated at
\n
in
it
ial recognit
ion as held at FVOCI on an
instrument-by-instrument basis. Div
idends rece
ived are recognised in pro\ufb01t or loss.
\n
Gains and losses aris
ing from changes
in the fair value of these instruments, includ
ing fore
ign exchange gains and losses, are
\n
recognised directly in equity and are never reclassif
ied to pro\ufb01t or loss even on derecogn
it
ion.", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueOfEachInvestmentInEquityInstrumentsDesignatedAsMeasuredAtFairValueThroughOtherComprehensiveIncomeExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f81886": { "value": "Financ
ial assets and l
iab
il
it
ies held at fa
ir value through pro\ufb01t or loss
\n
Financ
ial assets wh
ich are not held at amortised cost or that are not held at FVOCI are held at fair value through pro\ufb01t or
\n
loss. Financ
ial assets and l
iab
il
it
ies held at fa
ir value through pro\ufb01t or loss are either mandatorily classif
ied as fa
ir value
\n
through pro\ufb01t or loss or irrevocably designated at fair value through pro\ufb01t or loss at in
it
ial recognit
ion.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f81967": { "value": "Designated at fair value through pro\ufb01t or loss \n
Financ
ial assets and l
iab
il
it
ies may be des
ignated at fair value through pro\ufb01t or loss when the designat
ion el
im
inates or
\n
sign
i\ufb01cantly reduces a measurement or recogn
it
ion
incons
istency that would otherw
ise arise from measuring assets or
\n
liab
il
it
ies on a d
ifferent basis (\u2018accounting mismatch\u2019).
\n
Financ
ial l
iab
il
it
ies may also be des
ignated at fair value through pro\ufb01t or loss where they are managed on a fair value basis
\n
or have an embedded derivat
ive where the Group
is not able to bifurcate and separately value the embedded derivat
ive
\ncomponent.", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsDesignatedAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f82297": { "value": "Derecognit
ion of \ufb01nancial
instruments
\n
Financ
ial assets are derecogn
ised when the rights to receive cash \ufb02ows from the \ufb01nanc
ial assets have exp
ired or where the
\n
Group has transferred substantially all risks and rewards of ownership. If substantially all the risks and rewards have been
\n
neither retained nor transferred and the Group has retained control, the assets continue to be recognised to the extent of the
\n
Group\u2019s continu
ing
involvement.
\n
Where \ufb01nancial assets have been mod
if
ied, the mod
if
ied terms are assessed on a qual
itat
ive and quant
itat
ive bas
is to
\n
determine whether a fundamental change in the nature of the instrument has occurred, such as whether the derecognit
ion
\n
of the pre-exist
ing
instrument and the recognit
ion of a new
instrument is appropriate.
\n
On derecognit
ion of a \ufb01nancial asset, the d
ifference between the carrying amount of the asset (or the carrying amount
\n
allocated to the portion of the asset derecognised) and the sum of the considerat
ion rece
ived (includ
ing any new asset
\n
obtained less any new liab
il
ity assumed) and any cumulative gain or loss that had been recognised in other comprehensive
\n
income is recognised in pro\ufb01t or loss except for equity instruments elected FVOCI (see above) and cumulative fair value
\n
adjustments attributable to the credit risk of a liab
il
ity that are held in other comprehensive income.
\n
Financ
ial l
iab
il
it
ies are derecogn
ised when they are extingu
ished. A \ufb01nancial l
iab
il
ity is extingu
ished when the obl
igat
ion
is
\n
discharged, cancelled or expires and this is evaluated both qualitat
ively and quant
itat
ively. However, where a \ufb01nancial
\n
liab
il
ity has been modif
ied,
it is derecognised if the difference between the modif
ied cash \ufb02ows and the or
ig
inal cash \ufb02ows
is
\n
more than 10 per cent, or if less than 10 per cent, the Group will perform a qualitat
ive assessment to determ
ine whether the
\n
terms of the two instruments are substantially different.
\n
If the Group purchases its own debt, it is derecognised and the difference between the carrying amount of the liab
il
ity and
\n
the considerat
ion pa
id is included in \u2018Other income\u2019 except for the cumulative fair value adjustments attributable to the
\n
credit risk of a liab
il
ity that are held in other comprehensive income which are never recycled to the pro\ufb01t or loss.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerecognitionOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f82501": { "value": "Reclassif
icat
ions
\n
Financ
ial l
iab
il
it
ies are not reclass
if
ied subsequent to
in
it
ial recognit
ion. Reclass
if
icat
ions of \ufb01nanc
ial assets are made when,
\n
and only when, the business model for those assets changes. Such changes are expected to be infrequent and arise as a
\n
result of sign
i\ufb01cant external or
internal changes such as the terminat
ion of a l
ine of business or the purchase of a subsid
iary
\n
whose business model is to realise the value of pre-exist
ing held for trad
ing \ufb01nanc
ial assets through a hold to collect model.
\n
Financ
ial assets are reclass
if
ied at the
ir fair value on the date of reclassif
icat
ion and previously recognised gains and losses
\n
are not restated. Moreover, reclassif
icat
ions of \ufb01nanc
ial assets between \ufb01nancial assets held at amort
ised cost and \ufb01nanc
ial
\n
assets held at fair value through other comprehensive income do not affect effective interest rate or expected credit loss
\n
computations.
\n
Reclassif
ied from amort
ised cost
\n
Where \ufb01nancial assets held at amort
ised cost are reclassif
ied to \ufb01nancial assets held at fa
ir value through pro\ufb01t or loss, the
\n
difference between the fair value of the assets at the date of reclassif
icat
ion and the previously recognised amortised cost is
\n
recognised in pro\ufb01t or loss.
\n
For \ufb01nancial assets held at amort
ised cost that are reclassif
ied to fa
ir value through other comprehensive income, the
\n
difference between the fair value of the assets at the date of reclassif
icat
ion and the previously recognised gross carrying
\n
value is recognised in other comprehensive income. Addit
ionally, the related cumulat
ive expected credit loss amounts
\n
relating to the reclassif
ied \ufb01nancial assets are reclass
if
ied from loan loss prov
is
ions to a separate reserve
in other
\n
comprehensive income at the date of reclassif
icat
ion.
\n
Reclassif
ied from fa
ir value through other comprehensive income
\n
Where \ufb01nancial assets held at fa
ir value through other comprehensive income are reclassif
ied to \ufb01nancial assets held at fa
ir
\n
value through pro\ufb01t or loss, the cumulative gain or loss previously recognised in other comprehensive income is transferred to
\n
the pro\ufb01t or loss.
\n
For \ufb01nancial assets held at fa
ir value through other comprehensive income that are reclassif
ied to \ufb01nancial assets held at
\n
amortised cost, the cumulative gain or loss previously recognised in other comprehensive income is adjusted against the fair
\n
value of the \ufb01nancial asset such that the \ufb01nancial asset
is recorded at a value as if it had always been held at amortised cost.
\n
In addit
ion, the related cumulat
ive expected credit losses held with
in other comprehens
ive income are reversed against the
\n
gross carrying value of the reclassif
ied assets at the date of reclass
if
icat
ion.
\n
Reclassif
ied from fa
ir value through pro\ufb01t or loss
\n
Where \ufb01nancial assets held at fa
ir value through pro\ufb01t or loss are reclassif
ied to \ufb01nancial assets held at fa
ir value through
\n
other comprehensive income or \ufb01nanc
ial assets held at amort
ised cost, the fair value at the date of reclassif
icat
ion is used to
\n
determine the effective interest rate on the \ufb01nanc
ial asset go
ing forward. In addit
ion, the date of reclass
if
icat
ion is used as
\n
the date of in
it
ial recognit
ion for the calculat
ion of expected credit losses. Where \ufb01nanc
ial assets held at fa
ir value through
\n
pro\ufb01t or loss are reclassif
ied to \ufb01nancial assets held at amort
ised cost, the fair value at the date of reclassif
icat
ion becomes
\n
the gross carrying value of the \ufb01nanc
ial asset.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForReclassificationOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f83812": { "value": "\u2022
Market Risk: As trades are transit
ioned from IBOR to RFRs, the bus
iness-as-usual metrics, lim
it structure and controls w
ill
\n
continue to apply. Lim
its for value at r
isk and market risk sensit
iv
it
ies are
in accordance with the Group Risk Appetite
\n
Statement. New lim
its have been set follow
ing engagement with the business to consider client demand and market liqu
id
ity
\nin RFR-linked products, as well as the regulatory expectations", "dimensions": { "concept": "ifrs-full:DisclosureOfMarketRiskExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f84256": { "value": "Offsetting of \ufb01nanc
ial
instruments
\n
Financ
ial assets and l
iab
il
it
ies are offset and the net amount reported
in the balance sheet when there is a legally enforceable
\n
right to offset the recognised amounts and there is an intent
ion to settle on a net bas
is, or to realise the asset and settle the
\n
liab
il
ity simultaneously.
\n
In practice, for credit mit
igat
ion, the Group is able to offset assets and liab
il
it
ies wh
ich do not meet the IAS 32 netting criter
ia set
\n
out below. Such arrangements include master netting arrangements for derivat
ives and global master repurchase agreements
\n
for repurchase and reverse repurchase transactions. These agreements generally allow that all outstanding transactions with a
\n
particular counterparty can be offset but only in the event of default or other predetermined events.
\n
In addit
ion, the Group also rece
ives and pledges readily realisable collateral for derivat
ive transact
ions to cover net exposure in
\n
the event of a default. Under repurchase and reverse repurchase agreements the Group pledges (legally sells) and obtains
\n
(legally purchases) respectively, highly liqu
id assets wh
ich can be sold in the event of a default.
\n
The following tables set out the impact of netting on the balance sheet. This comprises derivat
ive transact
ions settled through
\n
an enforceable netting agreement where we have the intent and abil
ity to settle net and wh
ich are offset on the balance sheet.
\n
2022
\n
Gross amounts
\n
of recognised
\n
\ufb01nancial
\n
instruments
\n
$mill
ion
\n
Impact of
\n
offset in the
\n
balance sheet
\n
$mill
ion
\n
Net amounts
\n
of \ufb01nancial
\n
instruments
\n
presented in the
\n
balance sheet
\n
$mill
ion
\n
Related amount not offset
\n
in the balance sheet
\n
Net amount
\n
$mill
ion
\n
Financ
ial
\n
instruments
\n
$mill
ion
\n
Financ
ial
\n
collateral
\n
$mill
ion
\n
Assets
\n
Derivat
ive \ufb01nancial
instruments
120,799
(57,082)
63,717
(50,133)
(9,206)
4,378
\n
Reverse repurchase agreements and
\n
other sim
ilar secured lend
ing
105,891
(15,924)
89,967
\u2013
(89,967)
\u2013
\n
At 31 December 2022
226,690
(73,006)
153,684
(50,133)
(99,173)
4,378
\n
Liab
il
it
ies
\n
Derivat
ive \ufb01nancial
instruments
126,944
(57,082)
69,862
(50,133)
(12,515)
7,214
\n
Repurchase agreements and other
\n
sim
ilar secured borrow
ing
69,738
(15,924)
53,814
\u2013
(53,814)
\u2013
\n
At 31 December 2022
196,682
(73,006)
123,676
(50,133)
(66,329)
7,214
\n
2021
\n
Gross amounts
\n
of recognised
\n
\ufb01nancial
\n
instruments
\n
$mill
ion
\n
Impact of
\n
offset in the
\n
balance sheet
\n
$mill
ion
\n
Net amounts
\n
of \ufb01nancial
\n
instruments
\n
presented in the
\n
balance sheet
\n
$mill
ion
\n
Related amount not offset
\n
in the balance sheet
\n
Net amount
\n
$mill
ion
\n
Financ
ial
\n
instruments
\n
$mill
ion
\n
Financ
ial
\n
collateral
\n
$mill
ion
\n
Assets
\n
Derivat
ive \ufb01nancial
instruments
79,043
(26,598)
52,445
(39,502)
(8,092)
4,851
\n
Reverse repurchase agreements and
\n
other sim
ilar secured lend
ing
95,845
(7,426)
88,419
\u2013
(88,419)
\u2013
\n
At 31 December 2021
174,888
(34,024)
140,864
(39,502)
(96,511)
4,851
\n
Liab
il
it
ies
\n
Derivat
ive \ufb01nancial
instruments
79,997
(26,598)
53,399
(39,502)
(9,217)
4,680
\n
Repurchase agreements and other
\n
sim
ilar secured borrow
ing
73,074
(7,426)
65,648
\u2013
(65,648)
\u2013
\n
At 31 December 2021
153,071
(34,024)
119,047
(39,502)
(74,865)
4,680", "dimensions": { "concept": "ifrs-full:DisclosureOfOffsettingOfFinancialAssetsAndFinancialLiabilitiesExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f84897": { "value": "\u2013
Cash and balances at central banks:
The fair value of cash and balances at central banks is their carrying amounts", "dimensions": { "concept": "ifrs-full:DisclosureOfCashAndBankBalancesAtCentralBanksExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f86502": { "value": "Fair value of \ufb01nanc
ial
instruments
\n
Level 3 Summary and sign
i\ufb01cant unobservable
inputs
\n
The following table presents the Group\u2019s primary Level 3 \ufb01nanc
ial
instruments which are held at fair value. The table also
\n
presents the valuation techniques used to measure the fair value of those \ufb01nanc
ial
instruments, the sign
i\ufb01cant unobservable
\n
inputs, the range of values for those inputs and the weighted average of those inputs:
\n
Instrument
\n
Value as at
\n
31 December 2022
\n
Princ
ipal valuat
ion
\n
technique
\n
Sign
i\ufb01cant unobservable
\n
inputs
Range
\n
1
\n
Weighted
\n
average
\n
2
\n
Assets
\n
$mill
ion
\n
Liab
il
it
ies
\n
$mill
ion
\n
Loans and advances to banks
21
\u2013
Discounted cash \ufb02ows
Price/yield
N/A
N/A
\n
Credit spreads
2.9%
2.9%
\n
Loans and advances to customers
1,805
\u2013
Discounted cash \ufb02ows
Price/yield
0.3% \u2013 18.2%
5.3%
\n
Recovery rates
5.0% \u2013 100%
90.5%
\n
Reverse repurchase agreements
\n
and other sim
ilar secured lend
ing
\n
1,998
\u2013
Discounted cash \ufb02ows
Repo curve
2.3% \u2013 8.0%
6.2%
\n
Price/yield
1.9%\u20137.2%
6.0%
\n
Debt securit
ies, alternat
ive tier one
\n
and other elig
ible secur
it
ies
\n
1,152
\u2013
Discounted cash \ufb02ows
Price/yield
3.1% \u2013 48.5%
7.1%
\n
Recovery rates
0.0% \u2013 1.0%
0.2%
\n
Government bonds and
\n
treasury bills
\n
\u2013
\u2013
Discounted cash \ufb02ows
Price/yield
N/A
N/A
\n
Asset-backed securit
ies
1
\u2013
Discounted cash \ufb02ows
Price/yield
6.8%
6.8%
\n
Equity shares (includes private
\n
equity investments)
\n
837
\u2013
Comparable pric
ing/y
ield
EV/EBITDA multiples
7.0x \u2013 13.1x
11.0x
\n
EV/Revenue multiples
8.2x \u2013 23.2x
12.9x
\n
P/E multiples
13.4x \u2013 29.7x
17.6x
\n
P/B multiples
0.3x \u2013 3.3x
1.3x
\n
P/S multiples
2.1x \u2013 2.2x
2.2x
\n
Liqu
id
ity discount
10.0% \u2013 29.7%
17.5%
\n
Discounted cash \ufb02ows
Discount rates
7.5% \u2013 16.4%
9.4%
\n
Option pric
ing model
Equity value based on
\n
EV/Revenue multiples
\n
4.8x \u2013 76.1x
32.9x
\n
Equity value based on
\n
EV/EBITDA multiples
\n
2.6x
2.6x
\n
Equity value based
\n
on volatil
ity
\n
60.0%
60.0%
\n
Other Assets
7
\u2013
NAV
N/A
N/A
N/A
\n
Derivat
ive \ufb01nancial
instruments
\n
of which:
\n
Foreign exchange
13
12
Option pric
ing model
Foreign exchange option
\n
impl
ied volat
il
ity
\n
(21.0)% \u2013 21.0%
(2.7)%
\n
Discounted cash \ufb02ows
Foreign exchange curves
(4.6)% \u2013 81.8%
15.9%
\n
Interest rate
28
12
Discounted cash \ufb02ows
Interest rate curves
(2.1)% \u2013 50.2%
10.6%
\n
Option pric
ing model
Bond option impl
ied
\n
volatil
ity
\n
N/A
N/A
\n
Credit
1
42
Discounted cash \ufb02ows
Credit spreads
0.1% \u2013 2.3%
1.4%
\n
Price/yield
7.2% \u2013 9.7%
7.2%
\n
Equity and stock index
2
55
Internal pric
ing model
Equity correlation
30.0% \u2013 96.0%
67.0%
\n
Equity-FX correlation
(70.0)% \u2013 85.0%
37.0%
\n
Deposits by banks
\u2013
288
Discounted cash \ufb02ows
Credit spreads
0.9% \u2013 3.4%
1.8%
\n
Price/yield
6.0%
6.0%
\n
Customer accounts
\u2013
972
Discounted cash \ufb02ows
Credit spreads
0.9% \u2013 19.1%
10.3%
\n
Internal pric
ing model
Equity correlation
30.0% \u2013 96.0%
67.0%
\n
Equity-FX correlation
(70.0)% \u2013 85.0%
37.0%
\n
Discounted cash \ufb02ows
Interest rate curves
N/A
N/A
\n
Price/yield
3.1% \u2013 22.9%
17.8%
\n
Debt securit
ies
in issue
\u2013
451
Discounted cash \ufb02ows
Credit Spreads
0.3% \u2013 7.0%
4.7%
\n
Price/Yield
6.8% \u2013 12.4%
9.1%
\n
Internal pric
ing model
Equity-Equity Correlation
30.0% \u2013 96.0%
67.0%
\n
Equity-FX Correlation
(70.0)% \u2013 85.0%
37.0%
\n
Short posit
ions
\u2013
40
Discounted cash \ufb02ows
Price/yield
6.8%
6.8%
\n
Other Liab
il
it
ies
\u2013
6
Comparable pric
ing/y
ield
EV/EBITDA multiples
4.2x \u20139.0x
6.1x
\n
Total
5,865
1,878
\n
1
The ranges of values shown in the above table represent the highest and lowest levels used in the valuation of the Group\u2019s Level 3 \ufb01nanc
ial
instruments as at 31
\n
December 2022. The ranges of values used are re\ufb02ective of the underlying characterist
ics of these Level 3 \ufb01nancial
instruments based on the market condit
ions at
\n
the balance sheet date. However, these ranges of values may not represent the uncertainty in fair value measurements of the Group\u2019s Level 3 \ufb01nanc
ial
instruments
\n
2
Weighted average for non-derivat
ive \ufb01nancial
instruments has been calculated by weight
ing
inputs by the relative fair value. Weighted average for derivat
ives
\n
has been provided by weight
ing
inputs by the risk relevant to that variable. N/A has been entered for the cases where weighted average is not a meaningful
\n
ind
icator
\n\n
\n
391
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
13. Financ
ial
instruments
continued
\n
Level 3 summary and sign
i\ufb01cant unobservable
inputs
continued
\n
Instrument
\n
Value as at
\n
31 December 2021
\n
Princ
ipal valuat
ion
\n
technique
\n
Sign
i\ufb01cant unobservable
\n
inputs
Range
\n
1
\n
Weighted
\n
average
\n
2
\n
Assets
\n
$mill
ion
\n
Liab
il
it
ies
\n
$mill
ion
\n
Loans and advances to banks
9
\u2013
Discounted cash \ufb02ows
Recovery rates
87.3%\u2013100%
93.6%
\n
Loans and advances
\n
to customers
\n
1,357
\u2013
Discounted cash \ufb02ows
Price/yield
0.2% \u2013 11.8%
3.1%
\n
Recovery rates
10.6% \u2013 100%
87.8%
\n
Reverse repurchase
\n
agreements and other sim
ilar
\n
secured lending
\n
1,566
\u2013
Discounted cash \ufb02ows
Repo curve
0.3%\u20133.0%
2.4%
\n
Debt securit
ies, alternat
ive tier
\n
one and other elig
ible secur
it
ies
\n
349
\u2013
Discounted cash \ufb02ows
Price/yield
5.1% \u2013 12.4%
7.5%
\n
Recovery rates
0.01% \u2013 1.0%
0.2%
\n
Government bonds and
\n
treasury bills
\n
40
\u2013
Discounted cash \ufb02ows
Price/yield
2.7% \u2013 5.5%
3.7%
\n
Asset-backed securit
ies
\u2013
\u2013
Discounted cash \ufb02ows
Price/yield
N/A
N/A
\n
Equity shares (includes private
\n
equity investments)
\n
679
\u2013
Comparable pric
ing/
\n
yield
\n
EV/EBITDA multiples
6.1x\u201315.3x
8.6x
\n
EV/Revenue multiples
10.1x
10.1x
\n
P/E multiples
12.6x\u201325.3x
14.9x
\n
P/B multiples
0.4x\u20133.3x
1.4x
\n
P/S multiples
1.8x\u20132.6x
1.8x
\n
Liqu
id
ity discount
7.9%\u201329.2%
16.5%
\n
Discounted cash \ufb02ows
Discount rates
6.0%\u201317.4%
8.6%
\n
Option pric
ing model
EV/Revenue multiples
4.0x\u201385.5x
12.1x
\n
Volatil
ity
55.0%\u201365.0%
60.3%
\n
Other Assets
26
\u2013
NAV
N/A
N/A
N/A
\n
Derivat
ive \ufb01nancial
instruments
\n
of which:
\n
Foreign exchange
10
3
Option pric
ing model
Foreign exchange
\n
option impl
ied volat
il
ity
\n
3.1% \u2013 6.1%
5.1%
\n
Discounted cash \ufb02ows
Foreign exchange
\n
curves
\n
(16.4)% \u2013 57.3%
9.0%
\n
Interest rate
53
16
Discounted cash \ufb02ows
Interest rate curves
(16.4)%\u201318.8%
5.0%
\n
Option pric
ing model
Bond option impl
ied
\n
volatil
ity
\n
N/A
N/A
\n
Credit
24
41
Discounted cash \ufb02ows
Credit spreads
0.1%\u201311.5%
1.0%
\n
Price/yield
5.9% \u20137.3%
6.6%
\n
Equity and stock index
3
34
Internal pric
ing model
Equity correlation
8.0% \u2013 96.0%
70.0%
\n
Equity-FX correlation
(70.0)%\u201385.0%
(33.0)%
\n
Deposits by banks
\u2013
283
Discounted cash \ufb02ows
Credit spreads
0.4% \u2013 3.0%
1.4%
\n
Price/yield
6.8%\u20138.3%
7.5%
\n
Customer accounts
\u2013
454
Discounted cash \ufb02ows
Credit spreads
1.0% \u2013 2.0%
1.2%
\n
Interest rate curves
0.9%\u20135.6%
4.7%
\n
Price/yield
8.9%\u201312.1%
10.1%
\n
Debt securit
ies
in issue
\u2013
821
Discounted cash \ufb02ows
Credit spreads
0.9%\u20132.2%
1.0%
\n
Interest rate curves
0.9% \u2013 5.6%
4.9%
\n
Internal pric
ing model
Equity correlation
8.0% \u2013 96.0%
70.0%
\n
Equity-FX correlation
(70.0)%\u201385.0%
(33.0)%
\n
Short posit
ion
\u2013
\u2013
N/A
N/A
N/A
N/A
\n
Other Liab
il
it
ies
\u2013
1
Comparable pric
ing/
\n
yield
\n
EV/EBITDA multiples
3.07x\u20139.95x
6.84x
\n
Total
4,116
1,653
\n
1
The ranges of values shown in the above table represent the highest and lowest levels used in the valuation of the Group\u2019s Level 3 \ufb01nanc
ial
instruments as at 31
\n
December 2021. The ranges of values used are re\ufb02ective of the underlying characterist
ics of these Level 3 \ufb01nancial
instruments based on the market condit
ions at
\n
the balance sheet date. However, these ranges of values may not represent the uncertainty in fair value measurements of the Group\u2019s Level 3 \ufb01nanc
ial
instruments
\n
2
Weighted average for non-derivat
ive \ufb01nancial
instruments has been calculated by weight
ing
inputs by the relative fair value. Weighted average for derivat
ives
\n
has been provided by weight
ing
inputs by the risk relevant to that variable. N/A has been entered for the cases where weighted average is not a meaningful
\n
ind
icator
392
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
13. Financ
ial
instruments
continued
\n
Level 3 Summary and sign
i\ufb01cant unobservable
inputs
continued
\n
The following section describes the sign
i\ufb01cant unobservable
inputs ident
i\ufb01ed
in the valuation technique table:
\n
\u2022
Comparable price/yield
is a valuation methodology in which the price of a comparable instrument is used to estimate the
\n
fair value where there are no direct observable prices. Yield is the interest rate that is used to discount the future cash \ufb02ows in
\n
a discounted cash \ufb02ow model. Valuation using comparable instruments can be done by calculating an impl
ied y
ield (or
\n
spread over a liqu
id benchmark) from the pr
ice of a comparable instrument, then adjust
ing that y
ield (or spread) to derive a
\n
value for the instrument. The adjustment should account for relevant differences in the \ufb01nanc
ial
instruments such as maturity
\n
and/or credit quality. Alternatively, a price-to-price basis can be assumed between the comparable instrument and the
\n
instrument being valued in order to establish the value of the instrument (for example, deriv
ing a fa
ir value for a jun
ior
\n
unsecured bond from the price of a senior secured bond). An increase in price, in isolat
ion, would result
in a favourable
\n
movement in the fair value of the asset. An increase in yield, in isolat
ion, would result
in an unfavourable movement in the fair
\n
value of the asset
\n
\u2022
Correlation
is the measure of how movement in one variable in\ufb02uences the movement in another variable. An equity
\n
correlation is the correlation between two equity instruments while an interest rate correlation refers to the correlation
\n
between two swap rates
\n
\u2022
Credit spread
represents the addit
ional y
ield that a market partic
ipant would demand for tak
ing exposure to the Credit Risk
\n
of an instrument
\n
\u2022
Discount rate
refers to the rate of return used to convert expected cash \ufb02ows into present value
\n
\u2022
Equity-FX correlation
is the correlation between equity instrument and foreign exchange instrument
\n
\u2022
EV/EBITDA multiple
is the ratio of Enterprise Value (EV) to Earnings Before Interest, Taxes, Depreciat
ion and Amort
isat
ion
\n
(EBITDA). EV is the aggregate market capital
isat
ion and debt minus the cash and cash equivalents. An increase in EV/EBITDA
\n
multiple will result in a favourable movement in the fair value of the unlisted \ufb01rm
\n
\u2022
EV/Revenue multiple
is the ratio of Enterprise Value (EV) to Revenue. An increase in EV/Revenue multiple will result in a
\n
favourable movement in the fair value of the unlisted \ufb01rm
\n
\u2022
Foreign exchange curves
is the term structure for forward rates and swap rates between currency pairs over a specif
ied
\n
period
\n
\u2022
Net asset value (NAV)
is the value of an entity\u2019s assets after deducting any liab
il
it
ies
\n
\u2022
Interest rate curves
is the term structure of interest rates and measure of future interest rates at a particular point in time
\n
\u2022
Liqu
id
ity discounts in the valuation of unlisted investments
are primar
ily appl
ied to the valuation of unlisted \ufb01rms\u2019
\n
investments to re\ufb02ect the fact that these stocks are not actively traded. An increase in liqu
id
ity discount will result in an
\n
unfavourable movement in the fair value of the unlisted \ufb01rm
\n
\u2022
Price-Earnings (P/E) multiple
is the ratio of the market value of the equity to the net income after tax. An increase in P/E
\n
multiple will result in a favourable movement in the fair value of the unlisted \ufb01rm
\n
\u2022
Price-Book (P/B) multiple
is the ratio of the market value of equity to the book value of equity. An increase in P/B multiple will
\n
result in a favourable movement in the fair value of the unlisted \ufb01rm
\n
\u2022
Price-Sales (P/S) multiple
is the ratio of the market value of equity to sales. An increase in P/S multiple will result in a
\n
favourable movement in the fair value of the unlisted \ufb01rm
\n
\u2022
Recovery rate
is the expectation of the rate of return resulting from the liqu
idat
ion of a particular loan. As the probabil
ity of
\n
default increases for a given instrument, the valuation of that instrument will increas
ingly re\ufb02ect
its expected recovery level
\n
assuming default. An increase in the recovery rate, in isolat
ion, would result
in a favourable movement in the fair value of the
\n
loan
\n
\u2022
Repo curve
is the term structure of repo rates on repos and reverse repos at a particular point in time
\n
\u2022
Volatil
ity
represents an estimate of how much a particular instrument, parameter or index will change in value over time.
\n
Generally, the higher the volatil
ity, the more expens
ive the option will be
393
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
13. Financ
ial
instruments
continued
\n
Level 3 movement tables \u2013 \ufb01nancial assets
\n
The table below analyses movements in Level 3 \ufb01nanc
ial assets carr
ied at fair value.
\n
Assets
\n
2022
\n
Held at fair value through pro\ufb01t or loss
\n
Derivat
ive
\n
\ufb01nancial
\n
instruments
\n
$mill
ion
\n
Investment securit
ies
\n
Total
\n
$mill
ion
\n
Loans and
\n
advances
\n
to banks
\n
$mill
ion
\n
Loans and
\n
advances
\n
to customers
\n
$mill
ion
\n
Reverse
\n
repurchase
\n
agreements
\n
and other
\n
sim
ilar
\n
secured
\n
lending
\n
$mill
ion
\n
Debt
\n
securit
ies,
\n
alternative
\n
tier one
\n
and other
\n
elig
ible b
ills
\n
$mill
ion
\n
Equity
\n
shares
\n
$mill
ion
\n
Other
\n
Assets
\n
$mill
ion
\n
Debt
\n
securit
ies,
\n
alternative
\n
tier one
\n
and other
\n
elig
ible b
ills
\n
$mill
ion
\n
Equity
\n
shares
\n
$mill
ion
\n
At 01 January 2022
9
1,357
1,566
349
186
26
90
40
493
4,116
\n
Total (losses)/gains
\n
recognised in
\n
income statement
(16)
(132)
2
7
4
\u2013
30
\u2013
\u2013
(105)
\n
Net interest income
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\n
Net trading income
(16)
(132)
2
7
4
\u2013
30
\u2013
\u2013
(105)
\n
Other operating income
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\n
Total (losses)/gains
\n
recognised in other
\n
comprehensive income
\n
(OCI)
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
(1)
(8)
(9)
\n
Fair value through
\n
OCI reserve
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
(1)
(1)
(2)
\n
Cash \ufb02ow hedge reserve
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\n
Exchange difference
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
(7)
(7)
\n
Purchases
55
1,605
6,438
1,063
2
8
118
\u2013
166
9,455
\n
Issues
\n
Sales
(30)
(237)
(5,484)
(342)
(10)
(10)
(99)
\u2013
(6)
(6,218)
\n
Settlements
(19)
(877)
(524)
(1)
\u2013
\u2013
(80)
(39)
\u2013
(1,540)
\n
Transfers out
\n
1
\n
\u2013
(160)
\u2013
\u2013
\u2013
(17)
(29)
\u2013
\u2013
(206)
\n
Transfers in
\n
2
\n
22
249
\u2013
77
\u2013
\u2013
14
\u2013
10
372
\n
At 31 December 2022
21
1,805
1,998
1,153
182
7
44
\u2013
655
5,865
\n
Total unrealised gains/
\n
(losses) recognised in
\n
the income statement,
\n
with
in net trad
ing income,
\n
relating to change in
\n
fair value of assets held
\n
at 31 December 2022
\u2013
\u2013
\u2013
\u2013
3
\u2013
(2)
\u2013
\u2013
1
\n
1
Transfers out includes loans and advances, other assets and derivat
ive \ufb01nancial
instruments where the valuation parameters became observable during the
\n
period and were transferred to Level 1 and Level 2
\n
2
Transfers in primar
ily relate to loans and advances, debt secur
it
ies, alternat
ive tier one and other elig
ible b
ills and derivat
ive \ufb01nancial
instruments where the
\n
valuation parameters become unobservable during the year
394
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
13. Financ
ial
instruments
continued
\n
Level 3 movement tables \u2013 \ufb01nancial assets
continued
\n
The table below analyses movements in Level 3 \ufb01nanc
ial assets carr
ied at fair value.
\n
Assets
\n
2021
\n
Held at fair value through pro\ufb01t or loss
\n
Derivat
ive
\n
\ufb01nancial
\n
instruments
\n
$mill
ion
\n
Investment securit
ies
\n
Total
\n
$mill
ion
\n
Loans and
\n
advances
\n
to banks
\n
$mill
ion
\n
Loans and
\n
advances
\n
to customers
\n
$mill
ion
\n
Reverse
\n
repurchase
\n
agreements
\n
and other
\n
sim
ilar
\n
secured
\n
lending
\n
$mill
ion
\n
Debt
\n
securit
ies,
\n
alternative
\n
tier one
\n
and other
\n
elig
ible b
ills
\n
$mill
ion
\n
Equity
\n
shares
\n
$mill
ion
\n
Other
\n
Assets
\n
$mill
ion
\n
Debt
\n
securit
ies,
\n
alternative
\n
tier one
\n
and other
\n
elig
ible b
ills
\n
$mill
ion
\n
Equity
\n
shares
\n
$mill
ion
\n
At 01 January 2021
200
718
1,064
258
279
\u2013
8
40
381
2,948
\n
Total gains/(losses)
\n
recognised in
\n
income statement
1
(97)
2
(24)
(30)
\u2013
34
\u2013
\u2013
(114)
\n
Net interest income
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\n
Net trading income
1
(97)
2
(23)
(30)
\u2013
34
\u2013
\u2013
(113)
\n
Other operating income
\u2013
\u2013
\u2013
(1)
\u2013
\u2013
\u2013
\u2013
\u2013
(1)
\n
Total gains recognised in
\n
other comprehensive
\n
income (OCI)
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
3
61
64
\n
Fair value through
\n
OCI reserve
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
6
63
69
\n
Cash \ufb02ow hedge reserve
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\n
Exchange difference
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
(3)
(2)
(5)
\n
Purchases
9
1,281
4,973
387
7
\u2013
91
\u2013
123
6,871
\n
Issues
\n
Sales
\u2013
(687)
(4,392)
(226)
(55)
\u2013
(32)
\u2013
(9)
(5,401)
\n
Settlements
(201)
(302)
(81)
(70)
\u2013
\u2013
(5)
(13)
\u2013
(672)
\n
Transfers out
\n
1
\n
\u2013
(60)
\u2013
\u2013
(15)
\u2013
(11)
\u2013
(63)
(149)
\n
Transfers in
\n
2
\n
\u2013
504
\u2013
24
\u2013
26
5
10
\u2013
569
\n
At 31 December 2021
9
1,357
1,566
349
186
26
90
40
493
4,116
\n
Total unrealised gains/
\n
(losses) recognised in
\n
the income statement,
\n
with
in net trad
ing income,
\n
relating to change in
\n
fair value of assets held
\n
at 31 December 2021
\u2013
\u2013
\u2013
8
(15)
\u2013
19
\u2013
\u2013
12
\n
1
Transfers out include loans and advances, derivat
ive \ufb01nancial
instruments and equity shares where the valuation parameters became observable during the
\n
period and were transferred to Level 1 and Level 2
\n
2
Transfers in primar
ily relate to loans and advances, debt secur
it
ies, alternat
ive tier one and other elig
ible b
ills, derivat
ive \ufb01nancial
instruments and other assets
\n
where the valuation parameters become unobservable during the year
395
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
13. Financ
ial
instruments
continued
\n
Level 3 movement tables \u2013 \ufb01nancial l
iab
il
it
ies
\n
2022
\n
Deposits
\n
by banks
\n
$mill
ion
\n
Customer
\n
accounts
\n
$mill
ion
\n
Debt
\n
securit
ies
\n
in issue
\n
$mill
ion
\n
Derivat
ive
\n
\ufb01nancial
\n
instruments
\n
$mill
ion
\n
Short
\n
posit
ions
\n
$mill
ion
\n
Other
\n
liab
il
it
ies
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
At 01 January 2022
283
454
821
94
\u2013
1
1,653
\n
Total (gains)/losses recognised in income statement
\n
\u2013 net trading income
(37)
(82)
(158)
155
(3)
5
(120)
\n
Issues
447
1,818
815
179
140
\u2013
3,399
\n
Settlements
(400)
(1,266)
(1,066)
(291)
(97)
\u2013
(3,120)
\n
Transfers out
\n
1
\n
(5)
\u2013
(38)
(23)
\u2013
\u2013
(66)
\n
Transfers in
\n
2
\n
\u2013
48
77
7
\u2013
\u2013
132
\n
At 31 December 2022
288
972
451
121
40
6
1,878
\n
Total unrealised gains recognised in the income
\n
statement, with
in net trad
ing income, relating
\n
to change in fair value of liab
il
it
ies held at
\n
31 December 2022
(1)
(17)
(7)
(3)
\u2013
\u2013
(28)
\n
2021
\n
Deposits
\n
by banks
\n
$mill
ion
\n
Customer
\n
accounts
\n
$mill
ion
\n
Debt
\n
securit
ies
\n
in issue
\n
$mill
ion
\n
Derivat
ive
\n
\ufb01nancial
\n
instruments
\n
$mill
ion
\n
Short
\n
posit
ions
\n
$mill
ion
\n
Other
\n
liab
il
it
ies
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
At 01 January 2021
146
21
160
119
\u2013
\u2013
446
\n
Total losses/(gains) recognised in income statement
\n
\u2013 net trading income
8
(5)
(12)
(23)
\u2013
\u2013
(32)
\n
Issues
269
803
1,615
166
\u2013
\u2013
2,853
\n
Settlements
(145)
(365)
(986)
(181)
\u2013
\u2013
(1,677)
\n
Transfers out
\n
1
\n
\u2013
\u2013
(48)
(6)
\u2013
\u2013
(54)
\n
Transfers in
\n
2
\n
5
\u2013
92
19
\u2013
1
117
\n
At 31 December 2021
283
454
821
94
\u2013
1
1,653
\n
Total unrealised gains recognised in the income
\n
statement, with
in net trad
ing income, relating
\n
to change in fair value of liab
il
it
ies held at
\n
31 December 2021
\u2013
\u2013
\u2013
(14)
\u2013
\u2013
(14)
\n
1
Transfers out during the year primar
ily relate to bank depos
its, debt securit
ies
in issue and derivat
ive \ufb01nancial
instruments where the valuation parameters
\n
became observable during the year and were transferred to Level 2 \ufb01nanc
ial l
iab
il
it
ies
\n
2
Transfers in during the year primar
ily relate to der
ivat
ive \ufb01nancial
instruments, customer accounts and debt securit
ies
in issue where the valuation parameters
\n
become unobservable during the year
396
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
13. Financ
ial
instruments
continued
\n
Sensit
iv
it
ies
in respect of the fair values of Level 3 assets and liab
il
it
ies
\n
Sensit
iv
ity analysis is performed on products with sign
i\ufb01cant unobservable
inputs. The Group applies a 10 per cent increase or
\n
decrease on the values of these unobservable inputs, to generate a range of reasonably possible alternative valuations. The
\n
percentage shift is determined by statist
ical analys
is performed on a set of reference prices based on the composit
ion of the
\n
Group\u2019s Level 3 inventory as the measurement date. Favourable and unfavourable changes (which show the balance adjusted
\n
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
\n
unobservable parameters. The Level 3 sensit
iv
ity analysis assumes a one-way market move and does not consider offsets for
\n
hedges.
\n
Held at fair value through pro\ufb01t or loss
Fair value through other comprehensive income
\n
Net exposure
\n
$mill
ion
\n
Favourable
\n
changes
\n
$mill
ion
\n
Unfavourable
\n
changes
\n
$mill
ion
\n
Net exposure
\n
$mill
ion
\n
Favourable
\n
changes
\n
$mill
ion
\n
Unfavourable
\n
changes
\n
$mill
ion
\n
Financ
ial
instruments held at fair value
\n
Loans and advances
1,826
1,851
1,758
\u2013
\u2013
\u2013
\n
Reverse Repurchase agreements and
\n
other sim
ilar secured lend
ing
1,998
2,013
1,979
\u2013
\u2013
\u2013
\n
Asset backed securit
ies
1
1
1
\u2013
\u2013
\u2013
\n
Debt securit
ies, alternat
ive tier one and
\n
other elig
ible b
ills
1,152
1,168
1,124
\u2013
\u2013
\u2013
\n
Equity shares
182
200
164
655
715
595
\n
Other Assets
7
8
6
\u2013
\u2013
\u2013
\n
Derivat
ive \ufb01nancial
instruments
(77)
(44)
(109)
\u2013
\u2013
\u2013
\n
Customers accounts
(972)
(934)
(1,010)
\u2013
\u2013
\u2013
\n
Deposits by banks
(288)
(283)
(293)
\u2013
\u2013
\u2013
\n
Repurchase agreements and other
\n
sim
ilar secured borrow
ings
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\n
Short posit
ions
(40)
(39)
(41)
\u2013
\u2013
\u2013
\n
Debt securit
ies
in issue
(451)
(419)
(482)
\u2013
\u2013
\u2013
\n
Other Liab
il
it
ies
(6)
(5)
(7)
\u2013
\u2013
\u2013
\n
At 31 December 2022
3,332
3,517
3,090
655
715
595
\n
Financ
ial
instruments held at fair value
\n
Loans and advances
1,366
1,398
1,328
\u2013
\u2013
\u2013
\n
Reverse Repurchase agreements and
\n
other sim
ilar secured lend
ing
1,566
1,579
1,550
\u2013
\u2013
\u2013
\n
Asset backed securit
ies
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\n
Debt securit
ies, alternat
ive tier one and
\n
other elig
ible b
ills
349
366
332
40
41
38
\n
Equity shares
186
205
168
493
541
442
\n
Other Assets
26
29
24
\u2013
\u2013
\u2013
\n
Derivat
ive \ufb01nancial
instruments
(4)
10
(16)
\u2013
\u2013
\u2013
\n
Customers accounts
(454)
(447)
(461)
\u2013
\u2013
\u2013
\n
Deposits by banks
(283)
(278)
(287)
\u2013
\u2013
\u2013
\n
Short posit
ions
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\n
Debt securit
ies
in issue
(821)
(764)
(879)
\u2013
\u2013
\u2013
\n
Other Liab
il
it
ies
(1)
(1)
(1)
\u2013
\u2013
\u2013
\n
At 31 December 2021
1,930
2,097
1,758
533
582
480
\n
The reasonably possible alternatives could have increased or decreased the fair values of \ufb01nanc
ial
instruments held at fair
\n
value through pro\ufb01t or loss and those classif
ied as fa
ir value through other comprehensive income by the amounts disclosed
\n
below.
\n
Financ
ial
instruments
Fair value changes
\n
31.12.22
\n
$mill
ion
\n
31.12.21
\n
$mill
ion
\n
Held at fair value through pro\ufb01t or loss
Possible increase
185
167
\n
Possible decrease
(242)
(172)
\n
Fair value through other comprehensive income
Possible increase
60
49
\n
Possible decrease
(60)
(53)", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f88473": { "value": "14. Derivat
ive \ufb01nancial
instruments
\n
Accounting policy
\n
Derivat
ives are \ufb01nancial
instruments that derive their value in response to changes in interest rates, \ufb01nanc
ial
instrument
\n
prices, commodity prices, foreign exchange rates, credit rating or credit index and ind
ices. Der
ivat
ives are categor
ised as
\n
trading unless they are designated as hedging instruments.
\n
Derivat
ives are
in
it
ially recognised and subsequently measured at fair value, with revaluation gains recognised in pro\ufb01t or
\n
loss (except where cash \ufb02ow or net investment hedging has been achieved, in which case the effective portion of changes in
\n
fair value is recognised with
in other comprehens
ive income).
\n
Fair values may be obtained from quoted market prices in active markets, recent market transactions, and valuation
\n
techniques, includ
ing d
iscounted cash \ufb02ow models and option pric
ing models, as appropr
iate. Where the in
it
ially recognised
\n
fair value of a derivat
ive contract
is based on a valuation model that uses inputs which are not observable in the market, it
\n
follows the same in
it
ial recognit
ion account
ing policy as for other \ufb01nanc
ial assets and l
iab
il
it
ies. All der
ivat
ives are carr
ied as
\n
assets when fair value is posit
ive and as l
iab
il
it
ies when fa
ir value is negative.
\n
Hedge accounting
\n
Under certain condit
ions, the Group may des
ignate a recognised asset or liab
il
ity, a \ufb01rm commitment, highly probable
\n
forecast transaction or net investment of a foreign operation into a formal hedge accounting relationsh
ip w
ith a derivat
ive
\n
that has been entered to manage interest rate and/or foreign exchange risks present in the hedged item. The Group applies
\n
the \u2018Phase 1\u2019 hedge accounting requirements of IAS 39 Financ
ial Instruments: Recogn
it
ion and Measurement and the \u2018Phase
\n
2\u2019 amendments to IFRS in respect of interest rate benchmark reform. There are three categories of hedge relationsh
ips:
\n
\u2022
Fair value hedge: to manage the fair value of interest rate and/or foreign currency risks of recognised assets or liab
il
it
ies or
\n
\ufb01rm commitments
\n
\u2022
Cash \ufb02ow hedge: to manage interest rate or foreign exchange risk of highly probable future cash \ufb02ows attributable to a
\n
recognised asset or liab
il
ity, or a forecasted transaction
\n
\u2022
Net investment hedge: to manage the structural foreign exchange risk of an investment in a foreign operation
\n
The Group formally documents at the incept
ion of the transact
ion the relationsh
ip between hedg
ing instruments and
\n
hedged items, as well as its risk management object
ive and strategy for undertak
ing hedge transactions. This is described in
\n
more detail in the categories of hedges below.
\n
The Group assesses, both at hedge incept
ion and on a quarterly bas
is, whether the derivat
ives des
ignated in hedge
\n
relationsh
ips are h
ighly effective in offsetting changes in fair values or cash \ufb02ows of hedged items. Hedges are considered to
\n
be highly effective if all the following criter
ia are met:
\n
\u2022
At incept
ion of the hedge and throughout
its life, the hedge is prospectively expected to be highly effective in achiev
ing
\n
offsetting changes in fair value or cash \ufb02ows attributable to the hedged risk
\n
\u2022
Prospective and retrospective effectiveness should be with a range of 80-125%. This is tested using regression analysis
\n
\u2022
The regression co-ef\ufb01c
ient (R squared), wh
ich measures the correlation between the variables in the regression, is at least
\n
80%
\n
\u2022
In the case of the hedge of a forecast transaction, the transaction must have a high probabil
ity of occurr
ing and must
\n
present an exposure to variat
ions
in cash \ufb02ows that are expected to affect reported pro\ufb01t or loss. The Group assumes that
\n
any interest rate benchmarks on which hedged item cash \ufb02ows are based are not altered by IBOR reform
\n
The Group discont
inues hedge account
ing in any of the following circumstances:
\n
\u2022
The hedging instrument is not, or has ceased to be, highly effective as a hedge
\n
\u2022
The hedging instrument has expired, is sold, terminated, or exercised
\n
\u2022
The hedged item matures, is sold, or repaid
\n
\u2022
The forecast transaction is no longer deemed highly probable
\n
\u2022
The Group elects to discont
inue hedge account
ing voluntarily
\n
For interest rate benchmarks deemed in scope of IBOR reform, if the actual result of a hedge is outside the 80-125% range,
\n
but the hedge passes the prospective assessment, then the Group will not de-designate the hedge relationsh
ip.
\n
Under the Phase 2 Interest Rate Benchmark Reform amendments to IFRS 9 and IAS 39, the Group may change hedge
\n
designat
ions and correspond
ing documentation without the hedge being discont
inued where there
is a change in interest
\n
rate benchmark of the hedged item, hedging instrument or designated hedged risk. Permitted changes include the right to:
\n
\u2022
Rede\ufb01ne the descript
ion of the hedged
item and/or hedging instrument
\n
\u2022
Rede\ufb01ne the hedged risk to reference an alternative risk-free rate
\n
\u2022
Change the method for assessing hedge effectiveness due to modif
icat
ions required by IBOR reform
\n
\u2022
Elect, on a hedge-by-hedge basis, to reset the cumulative fair value changes in the assessment of retrospective hedge
\n
effectiveness to zero
\n
A hedge designat
ion may be mod
if
ied more than once, each t
ime a relationsh
ip
is affected as a direct result of IBOR reform.
398
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
14. Derivat
ive \ufb01nancial
instruments
continued
\n
Fair value hedge
\n
Changes in the fair value of derivat
ives that are des
ignated and qualify as fair value hedging instruments are recorded in net
\n
trading income, together with any changes in the fair value of the hedged asset or liab
il
ity that are attributable to the
\n
hedged risk. If the hedge no longer meets the criter
ia for hedge account
ing, the adjustment to the carrying amount of a
\n
hedged item for which the effective interest method is used is amortised to the income statement over the remain
ing term to
\n
maturity of the hedged item. If the hedged item is sold or repaid, the unamortised fair value adjustment is recognised
\n
immed
iately
in the income statement. For \ufb01nanc
ial assets class
if
ied as fa
ir value through other comprehensive income, the
\n
hedge accounting adjustment attributable to the hedged risk is included in net trading income to match the hedging
\n
derivat
ive.
\n
Cash \ufb02ow hedge
\n
The effective portion of changes in the fair value of derivat
ives that are des
ignated and qualify as cash \ufb02ow hedging
\n
instruments are in
it
ially recognised in other comprehensive income, accumulating in the cash \ufb02ow hedge reserve with
in
\n
equity. These amounts are subsequently recycled to the income statement in the periods when the hedged item affects
\n
pro\ufb01t or loss. Both the derivat
ive fa
ir value movement and any recycled amount are recorded in the \u2018Cash\ufb02ow hedges\u2019 line
\n
item in other comprehensive income.
\n
The Group assesses hedge effectiveness using the hypothetical derivat
ive method, wh
ich creates a derivat
ive
instrument to
\n
serve as a proxy for the hedged transaction. The terms of the hypothetical derivat
ive match the cr
it
ical terms of the hedged
\n
item and it has a fair value of zero at incept
ion. The hypothet
ical derivat
ive and the actual der
ivat
ive are regressed to
\n
establish the statist
ical s
ign
i\ufb01cance of the hedge relat
ionsh
ip. Any
ineffect
ive port
ion of the gain or loss on the hedging
\n
instrument is recognised in the net trading income immed
iately.
\n
If a cash \ufb02ow hedge is discont
inued, the amount accumulated
in the cash \ufb02ow hedge reserve is released to the income
\n
statement as and when the hedged item affects the income statement.
\n
For interest rate benchmarks deemed in scope of IBOR reform, the Group will retain the cumulative gain or loss in the cash
\n
\ufb02ow hedge reserve for designated cash \ufb02ow hedges even though there is uncertainty aris
ing from these reforms w
ith respect
\n
to the tim
ing and amount of the cash \ufb02ows of the hedged
items. Should the Group consider the hedged future cash \ufb02ows are
\n
no longer expected to occur due to reasons other than IBOR reform, the cumulative gain or loss will be immed
iately
\n
reclassif
ied to pro\ufb01t or loss.
\n
Net investment hedge
\n
Hedges of net investments are accounted for in a sim
ilar manner to cash \ufb02ow hedges, w
ith gains and losses aris
ing on the
\n
effective portion of the hedges recorded in the line \u2018Exchange differences on translation of foreign operations\u2019 in other
\n
comprehensive income, accumulating in the translation reserve with
in equ
ity. These amounts remain in equity until the net
\n
investment is disposed of. The ineffect
ive port
ion of the hedges is recognised in the net trading income immed
iately.
\n
The tables below analyse the notional princ
ipal amounts and the pos
it
ive and negat
ive fair values of derivat
ive \ufb01nancial
\n
instruments. Notional princ
ipal amounts are the amounts of pr
inc
ipal underly
ing the contract at the reporting date.
\n
Derivat
ives
\n
2022
2021
\n
Notional
\n
princ
ipal
\n
amounts
\n
$mill
ion
\n
Assets
\n
$mill
ion
\n
Liab
il
it
ies
\n
$mill
ion
\n
Notional
\n
princ
ipal
\n
amounts
\n
$mill
ion
\n
Assets
\n
$mill
ion
\n
Liab
il
it
ies
\n
$mill
ion
\n
Foreign exchange derivat
ive contracts:
\n
Forward foreign exchange contracts
3,154,440
38,162
39,376
3,750,151
30,256
30,068
\n
Currency swaps and options
1,168,026
16,010
17,447
1,412,055
11,492
11,659
\n
4,322,466
54,172
56,823
5,162,206
41,748
41,727
\n
Interest rate derivat
ive contracts:
\n
Swaps
3,516,310
62,001
64,005
3,609,625
31,490
31,078
\n
Forward rate agreements and options
98,465
2,214
2,880
127,287
1,328
1,859
\n
Exchange traded futures and options
324,702
279
258
295,192
156
132
\n
3,939,477
64,494
67,143
4,032,104
32,974
33,069
\n
Credit derivat
ive contracts
249,082
411
941
184,953
2,289
3,125
\n
Equity and stock index options
6,788
100
246
8,714
136
160
\n
Commodity derivat
ive contracts
90,952
1,622
1,791
113,807
1,896
1,916
\n
Gross total derivat
ives
8,608,765
120,799
126,944
9,501,784
79,043
79,997
\n
Offset
\u2013
(57,082)
(57,082)
\u2013
(26,598)
(26,598)
\n
Net Total derivat
ives
8,608,765
63,717
69,862
9,501,784
52,445
53,399
\n
The Group lim
its exposure to cred
it losses in the event of default by entering into master netting agreements with certain
\n
market counterparties. As required by IAS 32, exposures are only presented net in these accounts where they are subject to legal
\n
right of offset and intended to be settled net in the ordinary course of business.
399
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
14. Derivat
ive \ufb01nancial
instruments
continued
\n
The Group applies balance sheet offsetting only in the instance where we are able to demonstrate legal enforceabil
ity of the
\n
right to offset (e.g. via legal opin
ion) and the ab
il
ity and
intent
ion to settle on a net bas
is (e.g. via operational practice).
\n
The Group may enter into economic hedges that do not qualify for IAS 39 hedge accounting treatment, includ
ing der
ivat
ive
\n
such as interest rate swaps, interest rate futures and cross currency swaps to manage interest rate and currency risks of the
\n
Group. These derivat
ives are measured at fa
ir value, with fair value changes recognised in net trading income: refer to Market
\n
risk (page 282).
\n
The Derivat
ives and Hedg
ing sections of the Risk review and Capital review (page 236 to 325) explain the Group\u2019s risk
\n
management of derivat
ive contracts and appl
icat
ion of hedg
ing.
\n
Derivat
ives held for hedg
ing
\n
The Group enters into derivat
ive contracts for the purpose of hedg
ing interest rate, currency and structural foreign exchange
\n
risks inherent in assets, liab
il
it
ies and forecast transact
ions. The table below summarises the notional princ
ipal amounts and
\n
carrying values of derivat
ives des
ignated in hedge accounting relationsh
ips at the report
ing date.
\n
Included in the table above are derivat
ives held for hedg
ing purposes as follows:
\n
2022
2021
\n
Notional
\n
princ
ipal
\n
amounts
\n
$mill
ion
\n
Assets
\n
$mill
ion
\n
Liab
il
it
ies
\n
$mill
ion
\n
Notional
\n
princ
ipal
\n
amounts
\n
$mill
ion
\n
Assets
\n
$mill
ion
\n
Liab
il
it
ies
\n
$mill
ion
\n
Derivat
ives des
ignated as fair value
\n
hedges:
\n
Interest rate swaps
80,760
2,438
2,939
78,666
957
338
\n
Currency swaps
1,273
16
48
2,262
43
151
\n
82,033
2,454
2,987
80,928
1,000
489
\n
Derivat
ives des
ignated as cash \ufb02ow
\n
hedges:
\n
Interest rate swaps
31,977
100
671
10,381
60
74
\n
Forward foreign exchange contracts
11,987
99
385
72
2
\u2013
\n
Currency swaps
11,787
86
362
12,214
293
51
\n
55,751
285
1,418
22,667
355
125
\n
Derivat
ives des
ignated as net
\n
investment hedges:
\n
Forward foreign exchange contracts
14,576
120
141
13,198
88
79
\n
Total derivat
ives held for hedg
ing
152,360
2,859
4,546
116,793
1,443
693
\n
Fair value hedges
\n
The Group issues various long-term \ufb01xed rate debt issuances that are measured at amortised cost, includ
ing some
\n
denominated in foreign currency, such as unsecured senior and subordinated debt (see Notes 22 and 27). The Group also holds
\n
various \ufb01xed rate debt securit
ies such as government and corporate bonds,
includ
ing some denom
inated in foreign currency
\n
(see Note 13). These assets and liab
il
it
ies held are exposed to changes
in fair value due to movements in market interest and
\n
foreign currency rates.
\n
The Group uses interest rate swaps to exchange \ufb01xed rates for \ufb02oating rates on funding to match \ufb02oating rates received on
\n
assets, or exchange \ufb01xed rates on assets to match \ufb02oating rates paid on funding. The Group further uses cross currency swaps
\n
to match the currency of the issued debt or held asset with that of the entity\u2019s functional currency.
\n
Hedge ineffect
iveness from fa
ir value hedges is driven by cross currency basis risk. The amortisat
ion of fa
ir value hedge
\n
adjustments for hedged items no longer designated is recognised in net trading income. In future periods hedge relationsh
ips
\n
linked to an interest rate benchmark deemed in scope of benchmark reform may experience ineffect
iveness due to market
\n
partic
ipants\u2019 expectat
ions for when the change from the exist
ing IBOR benchmark to an alternat
ive risk-free rate will occur,
\n
since the transit
ion may occur at d
ifferent times for the hedged item and hedging instrument.
\n
At 31 December 2022 the Group held the following interest rate and cross currency swaps as hedging instruments in fair value
\n
hedges of interest and currency risk.
400
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
14. Derivat
ive \ufb01nancial
instruments
continued
\n
Fair value hedges
continued
\n
Hedging instruments and ineffect
iveness
\n
Interest rate
\n
1
\n
2022
\n
Notional
\n
$mill
ion
\n
Carrying amount
Change in fair
\n
value used to
\n
calculate hedge
\n
ineffect
iveness\u00b2
\n
$mill
ion
\n
Ineffectiveness
\n
recognised in
\n
pro\ufb01t or loss
\n
$mill
ion
\n
Asset
\n
$mill
ion
\n
Liab
il
ity
\n
$mill
ion
\n
Interest rate swaps \u2013 issued notes
41,772
112
2,914
(3,020)
(7)
\n
Interest rate swaps \u2013 loans and advances
1,117
68
\u2013
53
(1)
\n
Interest rate swaps \u2013 debt securit
ies and other
\n
elig
ible b
ills
37,871
2,258
25
3,127
13
\n
Interest and currency risk
\n
1
\n
Cross currency swaps \u2013 subordinated notes issued
72
\u2013
4
(260)
12
\n
Cross currency swaps \u2013 debt securit
ies and other
\n
elig
ible b
ills
1,201
16
44
(9)
4
\n
Total at 31 December 2022
82,033
2,454
2,987
(109)
21
\n
Interest rate\u00b9
\n
2021
\n
Notional
\n
$mill
ion
\n
Carrying amount
Change in fair
\n
value used to
\n
calculate hedge
\n
ineffect
iveness\u00b2
\n
$mill
ion
\n
Ineffectiveness
\n
recognised in
\n
pro\ufb01t or loss
\n
$mill
ion
\n
Asset
\n
$mill
ion
\n
Liab
il
ity
\n
$mill
ion
\n
Interest rate swaps \u2013 issued notes
35,310
575
212
(891)
(9)
\n
Interest rate swaps \u2013 loans and advances
2,079
19
13
13
\u2013
\n
Interest rate swaps \u2013 debt securit
ies and other
\n
elig
ible b
ills
41,277
363
113
717
(1)
\n
Interest and currency risk
\n
1
\n
Cross currency swaps \u2013 subordinated notes issued
1,469
\u2013
150
(139)
6
\n
Cross currency swaps \u2013 debt securit
ies and other
\n
elig
ible b
ills
793
43
1
50
\u2013
\n
Total at 31 December 2021
80,928
1,000
489
(250)
(4)
\n
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
\n
interest rate and currency risks. All the hedging instruments are derivat
ives, w
ith changes in fair value includ
ing hedge
ineffect
iveness recorded w
ith
in net trad
ing
\n
income
\n
2
This represents a (loss)/ change in fair value used for calculating hedge ineffect
iveness
\n
Hedged items in fair value hedges
\n
2022
\n
Carrying amount
\n
Accumulated amount of fair value
\n
hedge adjustments included in the
\n
carrying amount
\n
Change in the
\n
value used for
\n
calculating
\n
hedge
\n
ineffect
iveness\u00b9
\n
$mill
ion
\n
Cumulative
\n
balance of
\n
fair value
\n
adjustments
\n
from
\n
de-designated
\n
hedge
\n
relationsh
ips\u00b2
\n
$mill
ion
\n
Asset
\n
$mill
ion
\n
Liab
il
ity
\n
$mill
ion
\n
Asset
\n
$mill
ion
\n
Liab
il
ity
\n
$mill
ion
\n
Issued notes
\u2013
42,702
\u2013
2,756
3,284
414
\n
Debt securit
ies and other el
ig
ible b
ills
36,028
\u2013
(2,075)
\u2013
(3,100)
441
\n
Loans and advances to customers
1,051
\u2013
(65)
\u2013
(54)
1
\n
Total at 31 December 2022
37,079
42,702
(2,140)
2,756
130
856
\n
2021
\n
Carrying amount
\n
Accumulated amount of fair value
\n
hedge adjustments included in the
\n
carrying amount
\n
Change in
\n
fair value used
\n
for calculating
\n
hedge
\n
ineffect
iveness\u00b9
\n
$mill
ion
\n
Cumulative
\n
balance of
\n
fair value
\n
adjustments
\n
from
\n
de-designated
\n
hedge
\n
relationsh
ips\u00b2
\n
$mill
ion
\n
Asset
\n
$mill
ion
\n
Liab
il
ity
\n
$mill
ion
\n
Asset
\n
$mill
ion
\n
Liab
il
ity
\n
$mill
ion
\n
Issued notes
\u2013
35,206
\u2013
31
1,029
862
\n
Debt securit
ies and other el
ig
ible b
ills
41,637
\u2013
(363)
\u2013
(769)
(19)
\n
Loans and advances to customers
2,072
\u2013
(7)
\u2013
(14)
(1)
\n
Total at 31 December 2021
43,709
35,206
(370)
31
246
842
\n
1
This represents a gain/(loss) change in fair value used for calculating hedge ineffect
iveness
\n
2
This represents a credit/(debit) to the balance sheet value
401
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
14. Derivat
ive \ufb01nancial
instruments
continued
\n
Income statement impact of fair value hedges
\n
2022
\n
$mill
ion
\n
Income/
\n
(expense)
\n
2021
\n
$mill
ion
\n
Income/
\n
(expense)
\n
Change in fair value of hedging instruments
(109)
(250)
\n
Change in fair value of hedged risks attributable to hedged items
130
246
\n
Net ineffect
iveness ga
in/(loss) to net trading income
21
(4)
\n
Amortisat
ion ga
in to net interest income
141
31
\n
Cash \ufb02ow hedges
\n
The Group has exposure to market movements in future interest cash \ufb02ows on portfolios of customer accounts, debt securit
ies
\n
and loans and advances to customers. The amounts and tim
ing of future cash \ufb02ows, represent
ing both princ
ipal and
interest
\n
\ufb02ows, are projected on the basis of contractual terms and other relevant factors, includ
ing est
imates of prepayments and
\n
defaults.
\n
The hedging strategy of the Group involves using interest rate swaps to manage the variab
il
ity in future cash \ufb02ows on assets
\n
and liab
il
it
ies that have \ufb02oat
ing rates of interest by exchanging the \ufb02oating rates for \ufb01xed rates. It also uses foreign exchange
\n
contracts and currency swaps to manage the variab
il
ity in future exchange rates on its assets and liab
il
it
ies and costs
in foreign
\n
currencies. This is done on both a micro basis whereby a single interest rate or cross currency swap is designated in a separate
\n
relationsh
ip w
ith a single hedged item (such as a \ufb02oating rate loan to a customer), and on a portfolio basis whereby each
\n
hedging instrument is designated against a group of hedged items that share the same risk (such as a group of customer
\n
accounts).
\n
The hedged risk is determined as the variab
il
ity of future cash \ufb02ows aris
ing from changes
in the designated benchmark
\n
interest\u00a0rate.
\n
Hedging instruments and ineffect
iveness
\n
2022
\n
Notional
\n
$mill
ion
\n
Carrying amount
\n
Change in fair
\n
value used to
\n
calculate hedge
\n
ineffect
iveness\u00b9
\n
$mill
ion
\n
(Loss)/gain
\n
recognised
\n
in OCI
\n
$mill
ion
\n
Ineffectiveness
\n
(loss) recognised
\n
in net trading
\n
income
\n
$mill
ion
\n
Asset
\n
$mill
ion
\n
Liab
il
ity
\n
$mill
ion
\n
Interest rate risk
\n
Interest rate swaps
31,977
100
671
(533)
(531)
(2)
\n
Currency risk
\n
Forward foreign exchange contract
11,987
99
385
(141)
(1 41)
\u2013
\n
Cross currency swaps
11,787
86
362
421
426
(5)
\n
Total as at 31 December 2022
55,751
285
1,418
(253)
(246)
(7)
\n
2021
\n
Notional
\n
$mill
ion
\n
Carrying amount
\n
Change in fair
\n
value used to
\n
calculate hedge
\n
ineffect
iveness\u00b9
\n
$mill
ion
\n
Gain
\n
recognised
\n
in OCI
\n
$mill
ion
\n
Ineffectiveness
\n
gain/(loss)
\n
recognised
\n
in net trading
\n
income
\n
$mill
ion
\n
Asset
\n
$mill
ion
\n
Liab
il
ity
\n
$mill
ion
\n
Interest rate risk
\n
Interest rate swaps
10,381
60
74
77
77
\u2013
\n
Currency risk
\n
Forward foreign exchange contract
72
2
\u2013
2
2
\u2013
\n
Cross currency swaps
12,214
293
51
297
297
\u2013
\n
Total as at 31 December 2021
22,667
355
125
376
376
\u2013
\n
1
This represents a gain/(loss) change in fair value used for calculating hedge ineffect
iveness
402
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
14. Derivat
ive \ufb01nancial
instruments
continued
\n
Hedged items in cash \ufb02ow hedges
\n
2022
\n
Change in
\n
fair value used
\n
for calculating
\n
hedge
\n
ineffect
iveness\u00b9
\n
$mill
ion
\n
Cash \ufb02ow
\n
hedge reserve
\n
$mill
ion
\n
Cumulative
\n
balance in the
\n
cash \ufb02ow hedge
\n
reserve from
\n
de-designated
\n
hedge
\n
relationsh
ips
\n
$mill
ion
\n
Customer accounts
244
(444)
108
\n
Debt securit
ies and other el
ig
ible b
ills
(165)
(72)
(30)
\n
Loans and advances to customers
315
(191)
(18)
\n
Forecast cash\ufb02ow currency hedge
\u2013
\u2013
\u2013
\n
Intragroup lending currency hedge
(135)
(6)
\u2013
\n
Intragroup borrowing currency hedge
(13)
\u2013
\u2013
\n
Total at 31 December 2022
246
(713)
60
\n
2021
\n
Change in fair
\n
value used for
\n
calculating
\n
hedge
\n
ineffect
iveness\u00b9
\n
$mill
ion
\n
Cash \ufb02ow
\n
hedge reserve\u00b2
\n
$mill
ion
\n
Cumulative
\n
balance in the
\n
cash \ufb02ow hedge
\n
reserve from
\n
de-designated
\n
hedge
\n
relationsh
ips\u00b2
\n
$mill
ion
\n
Customer accounts
(95)
(9)
(15)
\n
Debt securit
ies and other el
ig
ible b
ills
(231)
(2)
\u2013
\n
Loans and advances to customers
23
(8)
1
\n
Forecast cash\ufb02ow currency hedge
\u2013
\u2013
\u2013
\n
Intragroup lending currency hedge
(73)
1
\u2013
\n
Intragroup borrowing currency hedge
\u2013
\u2013
\u2013
\n
Total at 31 December 2021
(376)
(18)
(14)
\n
1
This represents a gain/(loss) change in fair value used for calculating hedge ineffect
iveness
\n
2
Restated to re\ufb02ect the correct movement in the cash\ufb02ow reserve. Refer to the following table for addit
ional deta
ils
\n
Impact of cash \ufb02ow hedges on pro\ufb01t and loss and other comprehensive income
\n
2022
\n
Income/
\n
(expense)
\n
$mill
ion
\n
2021
\n
Income/
\n
(expense)
\n
$mill
ion
\n
Cash \ufb02ow hedge reserve balance as at 1 January
(34)
(52)
\n
(Loss)/gain recognised in other comprehensive income on effective portion of changes in fair value of
\n
hedging instruments\u00b9
(246)
376
\n
Gain reclassif
ied to
income statement when hedged item affected net pro\ufb01t\u00b9
(373)
(356)
\n
Taxation charge relating to cash \ufb02ow hedges
89
(2)
\n
Cash \ufb02ow hedge reserve balance as at 31 December
(564)
(34)
\n
1
The 2021 comparatives have been restated to correct a presentation error in two line items in the prior period whereby for a group of cross currency swaps
\n
designated in cash \ufb02ow hedging relationsh
ips, the fa
ir value changes presented in other comprehensive income were shown net of the effect of changes in
\n
foreign exchange rates. Following the restatement, the gain recognised in other comprehensive income for the effective portion of changes in the fair value of
\n
hedging instruments has been increased by $377 mill
ion from $(1) m
ill
ion to $376 m
ill
ion and the ga
in reclassif
ied to the
income statement when the hedged item
\n
affected net pro\ufb01t, has been reduced by $(377) mill
ion from $21 m
ill
ion to $(356) m
ill
ion. On the statement of comprehens
ive income these two line items have
\n
been combined into one line item in the current and the prior period to present the net change in other comprehensive income for cash \ufb02ow hedges, with the
\n
gross movements shown in Note 14. No change is required to the income statement
\n
Net investment hedges
\n
Foreign currency exposures arise from investments in subsid
iar
ies that have a different functional currency from that of the
\n
presentation currency of the Group. This risk arises from the \ufb02uctuation in spot exchange rates between the functional currency
\n
of the subsid
iar
ies and the Group\u2019s presentation currency, which causes the value of the investment to vary.
\n
The Group\u2019s policy is to hedge these exposures only when not doing so would be expected to have a sign
i\ufb01cant
impact on the
\n
regulatory ratios of the Group and its banking subsid
iar
ies. The Group uses foreign exchange forwards to manage the effect of
\n
exchange rates on its net investments in foreign subsid
iar
ies.
403
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
14. Derivat
ive \ufb01nancial
instruments
continued
\n
Hedging instruments and ineffect
iveness
\n
2022
\n
Notional
\n
$mill
ion
\n
Carrying amount
\n
Change in fair
\n
value used to
\n
calculate hedge
\n
ineffect
iveness
\n
1
\n
$mill
ion
\n
Changes in
\n
the value of
\n
the hedging
\n
instrument
\n
recognised
\n
in OCI
\n
$mill
ion
\n
Ineffectiveness
\n
recognised in
\n
pro\ufb01t or loss
\n
$mill
ion
\n
Amount
\n
reclassif
ied
\n
from
\n
reserves to
\n
income
\n
$mill
ion
\n
Asset
\n
$mill
ion
\n
Liab
il
ity
\n
$mill
ion
\n
Derivat
ive forward currency contracts\u00b2
14,576
120
141
512
512
\u2013
\u2013
\n
2021
\n
Notional
\n
$mill
ion
\n
Carrying amount
\n
Change in fair
\n
value used to
\n
calculate
\n
hedge
\n
ineffect
iveness\u00b9
\n
$mill
ion
\n
Changes in
\n
the value of
\n
the hedging
\n
instrument
\n
recognised
\n
in OCI
\n
$mill
ion
\n
Ineffectiveness
\n
recognised in
\n
pro\ufb01t or loss
\n
$mill
ion
\n
Amount
\n
reclassif
ied
\n
from
\n
reserves to
\n
income
\n
$mill
ion
\n
Asset
\n
$mill
ion
\n
Liab
il
ity
\n
$mill
ion
\n
Derivat
ive forward currency contracts\u00b2
13,198
88
79
116
116
\u2013
\u2013
\n
1
This represents a gain/(loss) change in fair value used for calculating hedge ineffect
iveness
\n
2
These derivat
ive forward currency contracts have a matur
ity of less than one year. The hedges are rolled on a period
ic bas
is
\n
Hedged items in net investment hedges
\n
2022
\n
Change in the
\n
value used for
\n
calculating
\n
hedge
\n
ineffect
iveness\u00b9
\n
$mill
ion
\n
Translation
\n
reserve
\n
$mill
ion
\n
Balances
\n
remain
ing
in the
\n
translation
\n
reserve from
\n
hedging
\n
relationsh
ips for
\n
which hedge
\n
accounting is no
\n
longer applied
\n
$mill
ion
\n
Net investments
(512)
(21)
\u2013
\n
2021
\n
Change in the
\n
value used for
\n
calculating
\n
hedge
\n
ineffect
iveness\u00b9
\n
$mill
ion
\n
Translation
\n
reserve
\n
$mill
ion
\n
Balances
\n
remain
ing
in the
\n
translation
\n
reserve from
\n
hedging
\n
relationsh
ips for
\n
which hedge
\n
accounting is no
\n
longer applied
\n
$mill
ion
\n
Net investments
(116)
9
\u2013
\n
1
This represents a gain/(loss) change in fair value used for calculating hedge ineffect
iveness
\n
Impact of net investment hedges on other comprehensive income
\n
2022
\n
Income/
\n
(expense)
\n
$mill
ion
\n
2021
\n
Income/
\n
(expense)
\n
$mill
ion
\n
Gains recognised in other comprehensive income
512
118
404
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
14. Derivat
ive \ufb01nancial
instruments
continued
\n
Maturity of hedging instruments
\n
Fair value hedges
\n
2022
\n
Less than
\n
one month
\n
More than
\n
one month
\n
and less than
\n
one year
\n
One to
\n
\ufb01ve years
\n
More than
\n
\ufb01ve years
\n
Interest rate swap
\n
Notional
$mill
ion
2,462
8,888
53,225
16,185
\n
Average \ufb01xed interest rate
USD
1.76%
2.29%
2.16%
1.83%
\n
EUR
\u2013
2.73%
0.51%
0.56%
\n
Cross currency swap
\n
Notional
$mill
ion
\u2013
1,109
164
\u2013
\n
Average \ufb01xed interest rate (to USD)
JPY
\u2013
(0.62)%
\u2013
\u2013
\n
EUR
\u2013
\u2013
\u2013
\u2013
\n
KRO
\u2013
\u2013
\u2013
\u2013
\n
Average exchange rate
JPY/USD
\u2013
138.78
\u2013
\u2013
\n
EUR/USD
\u2013
\u2013
\u2013
\u2013
\n
KRO/USD
\u2013
\u2013
\u2013
\u2013
\n
Cash \ufb02ow hedges
\n
Interest rate swap
\n
Notional
$mill
ion
195
16,465
14,819
498
\n
Average \ufb01xed interest rate
HKD
\u2013
0.35%
1.34%
\u2013
\n
USD
3.80%
1.82%
1.60%
1.29%
\n
Cross currency swap
\n
Notional
$mill
ion
45
8,466
2,650
626
\n
Average \ufb01xed interest rate
HKD
\u2013
3.93%
\u2013
0.21%
\n
KRO
\u2013
3.26%
3.83%
\u2013
\n
USD
\u2013
4.15%
\u2013
\u2013
\n
TWD
(0.61)%
(1.38)%
0.32%
\u2013
\n
Average exchange rate
HKD/USD
\u2013
7.84
\u2013
7.85
\n
KRO/USD
\u2013
1,342.85
1,278.62
1,300.90
\n
USD/HKD
\u2013
7.84
\u2013
\u2013
\n
TWD/USD
27.74
30.77
29.73
\u2013
\n
Forward foreign exchange contracts
\n
Notional
$mill
ion
1,246
10,741
\u2013
\u2013
\n
Average exchange rate
JPY/USD
135.18
133.26
\u2013
\u2013
\n
TWD/USD
\u2013
\u2013
\u2013
\u2013
\n
Net investment hedges
\n
Foreign exchange derivat
ives
\n
Notional
$mill
ion
14,576
\u2013
\u2013
\u2013
\n
Average exchange rate
CNY
\n
1
\n
/USD
6.71
\u2013
\u2013
\u2013
\n
KRW
\n
1
\n
/USD
1,296.95
\u2013
\u2013
\u2013
\n
AED/USD
3.67
\u2013
\u2013
\u2013
\n
TWD/USD
\u2013
\u2013
\u2013
\u2013
\n
HKD/USD
7.83
\u2013
\u2013
\u2013
\n
1
Offshore currency
405
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
14. Derivat
ive \ufb01nancial
instruments
continued
\n
Maturity of hedging instruments
continued
\n
Fair value hedges
\n
2021
\n
Less than
\n
one month
\n
More than
\n
one month
\n
and less than
\n
one year
\n
One to
\n
\ufb01ve years
\n
More than
\n
\ufb01ve years
\n
Interest rate swap
\n
Notional
$mill
ion
3,186
7,175
49,386
18,919
\n
Average \ufb01xed interest rate
USD
2.00%
0.72%
1.05%
1.43%
\n
EUR
\u2013
0.12%
(0.17)%
(0.11)%
\n
Cross currency swap
\n
Notional
$mill
ion
48
1,492
722
\u2013
\n
Average \ufb01xed interest rate (to USD)
EUR
\u2013
1.29%
0.54%
\u2013
\n
KRO
\u2013
0.09%
\u2013
\u2013
\n
Average exchange rate
EUR/USD
\u2013
0.78
0.80
\u2013
\n
KRO/USD
\u2013
1,134.50
\u2013
\u2013
\n
Cash \ufb02ow hedges
\n
Interest rate swap
\n
Notional
$mill
ion
\u2013
4,443
4,750
1,188
\n
Average \ufb01xed interest rate
HKD
\u2013
0.57%
0.41%
\u2013
\n
USD
\u2013
0.08%
2.13%
1.29%
\n
Cross currency swap
\n
Notional
$mill
ion
152
10,260
1,802
\u2013
\n
Average \ufb01xed interest rate
HKD
\u2013
0.73%
\u2013
\u2013
\n
KRO
\u2013
1.09%
\u2013
\u2013
\n
JPY
\u2013
(0.13)%
\u2013
\u2013
\n
TWD
(0.33)%
(0.33)%
\u2013
\u2013
\n
Average exchange rate
HKD/USD
\u2013
7.78
\u2013
\u2013
\n
KRO/USD
\u2013
1,158.03
\u2013
\u2013
\n
JPY/USD
\u2013
109.05
\u2013
\u2013
\n
TWD/USD
27.98
27.85
\u2013
\u2013
\n
Forward foreign exchange contracts
\n
Notional
$mill
ion
\u2013
\u2013
72
\u2013
\n
Average exchange rate
CLO/USD
\u2013
\u2013
868.10
\u2013
\n
Net investment hedges
\n
Foreign exchange derivat
ives
\n
Notional
$mill
ion
5,234
7,964
\u2013
\u2013
\n
Average exchange rate
CNY\u00b9/USD
6.57
\u2013
\u2013
\u2013
\n
KRW\u00b9/USD
1,144.04
1,185.10
\u2013
\u2013
\n
TWD/USD
27.55
27.34
\u2013
\u2013
\n
HKD/USD
\u2013
7.05
\u2013
\u2013
\n
1
Offshore currency
\n\n
406
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
14. Derivat
ive \ufb01nancial
instruments
continued
\n
Interest rate benchmark reform
\n
The Group applies the Phase 1 \u2018Interest Rate Benchmark Reform Amendments to IFRS 9, IAS 39 and IFRS 7\u2019 which allow the Group
\n
to assume that the interest rate benchmark on which cash \ufb02ows for the hedged item and/or hedging instrument are based is
\n
not altered as a result of IBOR reform for the following activ
it
ies:
\n
\u2022 Prospective hedge assessment
\n
\u2022
Determin
ing whether a cash \ufb02ow or forecast transact
ion for a cash \ufb02ow hedge is highly probable. However, the Group
\n
otherwise assesses whether the cash \ufb02ows are considered highly probable
\n
\u2022
Determin
ing when cumulat
ive balances in the cash \ufb02ow hedge reserve from de-designated hedges should be recycled to the
\n
income statement
\n
The Group will not de-designate a hedge relationsh
ip of a benchmark
in scope of IBOR reform if the retrospective hedge result
\n
is outside the required 80-125% range but, the hedge passes the prospective assessment. Any hedge ineffect
iveness cont
inues
\n
to be recorded in net trading income.
\n
For hedges of non-contractually specif
ied benchmark port
ions of an interest rate (such as fair value hedges of interest rate risk
\n
on \ufb01xed rate debt instruments) the Group only assesses whether the designated benchmark is separately ident
i\ufb01able at hedge
\n
incept
ion. The cho
ice of designated benchmark is not revis
ited for ex
ist
ing hedge relat
ionsh
ips
\n
In applying these amendments, the Group has made the following key assumptions for the period end, to be reviewed on an
\n
ongoing basis:
\n
\u2022
The interest rate benchmarks applicable to the Group that are in scope of the IFRS amendments are all LIBORs, EONIA,
\n
Singapore Swap Offer Rate (SGD SOR) and Thai Baht Interest Rate Fix
ing (THB FIX)
\n
\u2022
EURIBOR is not in scope of the IFRS amendments because its revised methodology incorporates market transaction data,
\n
hence the benchmark is expected to continue to exist in future reporting periods
\n
The Group assumes that the uncertainty aris
ing from USD LIBOR w
ill be present until 30 June 2023, at which time the
\n
amendments to IFRS no longer apply.
\n
As at 31 December 2022, the following notional princ
ipal amounts of der
ivat
ive
instruments designated in fair value or cash \ufb02ow
\n
hedge accounting relationsh
ips were l
inked to IBOR reference rates:
\n
Fair value
\n
hedges
\n
$mill
ion
\n
Cash \ufb02ow
\n
hedges
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Weighted
\n
average
\n
exposure
\n
Years
\n
Interest rate swaps
\n
USD LIBOR
35,989
24,090
60,079
2.2
\n
GBP LIBOR
\u2013
\u2013
\u2013
\u2013
\n
JPY LIBOR
\u2013
\u2013
\u2013
\u2013
\n
SGD SOR
\u2013
\u2013
\u2013
\u2013
\n
35,989
24,090
60,079
2.2
\n
Cross currency swaps
\n
USD LIBOR vs Fixed rate foreign currency
1,151
4,539
5,690
1.0
\n
Total notional of hedging instruments in scope of IFRS amendments as
\n
at 31 December 2022
37,140
28,629
65,769
2.1
\n
Fair value
\n
hedges
\n
$mill
ion
\n
Cash \ufb02ow
\n
hedges
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Weighted
\n
average
\n
exposure
\n
Years
\n
Interest rate swaps
\n
USD LIBOR
46,615
2,636
49,251
3.6
\n
GBP LIBOR
1,444
\u2013
1,444
0.1
\n
JPY LIBOR
637
\u2013
637
0.2
\n
SGD SOR
\u2013
\u2013
\u2013
\u2013
\n
48,696
2,636
51,332
3.5
\n
Cross currency swaps
\n
USD LIBOR vs Fixed rate foreign currency
2,262
3,681
5,943
0.9
\n
Total notional of hedging instruments in scope of IFRS amendments as
\n
at 31 December 2021
50,958
6,317
57,275
3.2
\n
The Group\u2019s primary exposure is to USD LIBOR due to the extent of \ufb01xed rate debt security assets and issued notes
\n
denominated in USD that are designated in fair value hedge relationsh
ips. Where \ufb01xed rate
instruments are in other currencies,
\ncross currency swaps are used to achieve an equivalent \ufb02oating USD exposure.", "dimensions": { "concept": "ifrs-full:DisclosureOfDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f88479": { "value": "Accounting policy \n
Derivat
ives are \ufb01nancial
instruments that derive their value in response to changes in interest rates, \ufb01nanc
ial
instrument
\n
prices, commodity prices, foreign exchange rates, credit rating or credit index and ind
ices. Der
ivat
ives are categor
ised as
\n
trading unless they are designated as hedging instruments.
\n
Derivat
ives are
in
it
ially recognised and subsequently measured at fair value, with revaluation gains recognised in pro\ufb01t or
\n
loss (except where cash \ufb02ow or net investment hedging has been achieved, in which case the effective portion of changes in
\n
fair value is recognised with
in other comprehens
ive income).
\n
Fair values may be obtained from quoted market prices in active markets, recent market transactions, and valuation
\n
techniques, includ
ing d
iscounted cash \ufb02ow models and option pric
ing models, as appropr
iate. Where the in
it
ially recognised
\n
fair value of a derivat
ive contract
is based on a valuation model that uses inputs which are not observable in the market, it
\n
follows the same in
it
ial recognit
ion account
ing policy as for other \ufb01nanc
ial assets and l
iab
il
it
ies. All der
ivat
ives are carr
ied as
\n
assets when fair value is posit
ive and as l
iab
il
it
ies when fa
ir value is negative.
\n
Hedge accounting
\n
Under certain condit
ions, the Group may des
ignate a recognised asset or liab
il
ity, a \ufb01rm commitment, highly probable
\n
forecast transaction or net investment of a foreign operation into a formal hedge accounting relationsh
ip w
ith a derivat
ive
\n
that has been entered to manage interest rate and/or foreign exchange risks present in the hedged item. The Group applies
\n
the \u2018Phase 1\u2019 hedge accounting requirements of IAS 39 Financ
ial Instruments: Recogn
it
ion and Measurement and the \u2018Phase
\n
2\u2019 amendments to IFRS in respect of interest rate benchmark reform. There are three categories of hedge relationsh
ips:
\n
\u2022
Fair value hedge: to manage the fair value of interest rate and/or foreign currency risks of recognised assets or liab
il
it
ies or
\n
\ufb01rm commitments
\n
\u2022
Cash \ufb02ow hedge: to manage interest rate or foreign exchange risk of highly probable future cash \ufb02ows attributable to a
\n
recognised asset or liab
il
ity, or a forecasted transaction
\n
\u2022
Net investment hedge: to manage the structural foreign exchange risk of an investment in a foreign operation
\n
The Group formally documents at the incept
ion of the transact
ion the relationsh
ip between hedg
ing instruments and
\n
hedged items, as well as its risk management object
ive and strategy for undertak
ing hedge transactions. This is described in
\n
more detail in the categories of hedges below.
\n
The Group assesses, both at hedge incept
ion and on a quarterly bas
is, whether the derivat
ives des
ignated in hedge
\n
relationsh
ips are h
ighly effective in offsetting changes in fair values or cash \ufb02ows of hedged items. Hedges are considered to
\n
be highly effective if all the following criter
ia are met:
\n
\u2022
At incept
ion of the hedge and throughout
its life, the hedge is prospectively expected to be highly effective in achiev
ing
\n
offsetting changes in fair value or cash \ufb02ows attributable to the hedged risk
\n
\u2022
Prospective and retrospective effectiveness should be with a range of 80-125%. This is tested using regression analysis
\n
\u2022
The regression co-ef\ufb01c
ient (R squared), wh
ich measures the correlation between the variables in the regression, is at least
\n
80%
\n
\u2022
In the case of the hedge of a forecast transaction, the transaction must have a high probabil
ity of occurr
ing and must
\n
present an exposure to variat
ions
in cash \ufb02ows that are expected to affect reported pro\ufb01t or loss. The Group assumes that
\n
any interest rate benchmarks on which hedged item cash \ufb02ows are based are not altered by IBOR reform
\n
The Group discont
inues hedge account
ing in any of the following circumstances:
\n
\u2022
The hedging instrument is not, or has ceased to be, highly effective as a hedge
\n
\u2022
The hedging instrument has expired, is sold, terminated, or exercised
\n
\u2022
The hedged item matures, is sold, or repaid
\n
\u2022
The forecast transaction is no longer deemed highly probable
\n
\u2022
The Group elects to discont
inue hedge account
ing voluntarily
\n
For interest rate benchmarks deemed in scope of IBOR reform, if the actual result of a hedge is outside the 80-125% range,
\n
but the hedge passes the prospective assessment, then the Group will not de-designate the hedge relationsh
ip.
\n
Under the Phase 2 Interest Rate Benchmark Reform amendments to IFRS 9 and IAS 39, the Group may change hedge
\n
designat
ions and correspond
ing documentation without the hedge being discont
inued where there
is a change in interest
\n
rate benchmark of the hedged item, hedging instrument or designated hedged risk. Permitted changes include the right to:
\n
\u2022
Rede\ufb01ne the descript
ion of the hedged
item and/or hedging instrument
\n
\u2022
Rede\ufb01ne the hedged risk to reference an alternative risk-free rate
\n
\u2022
Change the method for assessing hedge effectiveness due to modif
icat
ions required by IBOR reform
\n
\u2022
Elect, on a hedge-by-hedge basis, to reset the cumulative fair value changes in the assessment of retrospective hedge
\n
effectiveness to zero
\n
A hedge designat
ion may be mod
if
ied more than once, each t
ime a relationsh
ip
is affected as a direct result of IBOR reform.
398
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
14. Derivat
ive \ufb01nancial
instruments
continued
\n
Fair value hedge
\n
Changes in the fair value of derivat
ives that are des
ignated and qualify as fair value hedging instruments are recorded in net
\n
trading income, together with any changes in the fair value of the hedged asset or liab
il
ity that are attributable to the
\n
hedged risk. If the hedge no longer meets the criter
ia for hedge account
ing, the adjustment to the carrying amount of a
\n
hedged item for which the effective interest method is used is amortised to the income statement over the remain
ing term to
\n
maturity of the hedged item. If the hedged item is sold or repaid, the unamortised fair value adjustment is recognised
\n
immed
iately
in the income statement. For \ufb01nanc
ial assets class
if
ied as fa
ir value through other comprehensive income, the
\n
hedge accounting adjustment attributable to the hedged risk is included in net trading income to match the hedging
\n
derivat
ive.
\n
Cash \ufb02ow hedge
\n
The effective portion of changes in the fair value of derivat
ives that are des
ignated and qualify as cash \ufb02ow hedging
\n
instruments are in
it
ially recognised in other comprehensive income, accumulating in the cash \ufb02ow hedge reserve with
in
\n
equity. These amounts are subsequently recycled to the income statement in the periods when the hedged item affects
\n
pro\ufb01t or loss. Both the derivat
ive fa
ir value movement and any recycled amount are recorded in the \u2018Cash\ufb02ow hedges\u2019 line
\n
item in other comprehensive income.
\n
The Group assesses hedge effectiveness using the hypothetical derivat
ive method, wh
ich creates a derivat
ive
instrument to
\n
serve as a proxy for the hedged transaction. The terms of the hypothetical derivat
ive match the cr
it
ical terms of the hedged
\n
item and it has a fair value of zero at incept
ion. The hypothet
ical derivat
ive and the actual der
ivat
ive are regressed to
\n
establish the statist
ical s
ign
i\ufb01cance of the hedge relat
ionsh
ip. Any
ineffect
ive port
ion of the gain or loss on the hedging
\n
instrument is recognised in the net trading income immed
iately.
\n
If a cash \ufb02ow hedge is discont
inued, the amount accumulated
in the cash \ufb02ow hedge reserve is released to the income
\n
statement as and when the hedged item affects the income statement.
\n
For interest rate benchmarks deemed in scope of IBOR reform, the Group will retain the cumulative gain or loss in the cash
\n
\ufb02ow hedge reserve for designated cash \ufb02ow hedges even though there is uncertainty aris
ing from these reforms w
ith respect
\n
to the tim
ing and amount of the cash \ufb02ows of the hedged
items. Should the Group consider the hedged future cash \ufb02ows are
\n
no longer expected to occur due to reasons other than IBOR reform, the cumulative gain or loss will be immed
iately
\n
reclassif
ied to pro\ufb01t or loss.
\n
Net investment hedge
\n
Hedges of net investments are accounted for in a sim
ilar manner to cash \ufb02ow hedges, w
ith gains and losses aris
ing on the
\n
effective portion of the hedges recorded in the line \u2018Exchange differences on translation of foreign operations\u2019 in other
\n
comprehensive income, accumulating in the translation reserve with
in equ
ity. These amounts remain in equity until the net
\n
investment is disposed of. The ineffect
ive port
ion of the hedges is recognised in the net trading income immed
iately.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f88533": { "value": "Hedge accounting \n
Under certain condit
ions, the Group may des
ignate a recognised asset or liab
il
ity, a \ufb01rm commitment, highly probable
\n
forecast transaction or net investment of a foreign operation into a formal hedge accounting relationsh
ip w
ith a derivat
ive
\n
that has been entered to manage interest rate and/or foreign exchange risks present in the hedged item. The Group applies
\n
the \u2018Phase 1\u2019 hedge accounting requirements of IAS 39 Financ
ial Instruments: Recogn
it
ion and Measurement and the \u2018Phase
\n
2\u2019 amendments to IFRS in respect of interest rate benchmark reform. There are three categories of hedge relationsh
ips:
\n
\u2022
Fair value hedge: to manage the fair value of interest rate and/or foreign currency risks of recognised assets or liab
il
it
ies or
\n
\ufb01rm commitments
\n
\u2022
Cash \ufb02ow hedge: to manage interest rate or foreign exchange risk of highly probable future cash \ufb02ows attributable to a
\n
recognised asset or liab
il
ity, or a forecasted transaction
\n
\u2022
Net investment hedge: to manage the structural foreign exchange risk of an investment in a foreign operation
\n
The Group formally documents at the incept
ion of the transact
ion the relationsh
ip between hedg
ing instruments and
\n
hedged items, as well as its risk management object
ive and strategy for undertak
ing hedge transactions. This is described in
\n
more detail in the categories of hedges below.
\n
The Group assesses, both at hedge incept
ion and on a quarterly bas
is, whether the derivat
ives des
ignated in hedge
\n
relationsh
ips are h
ighly effective in offsetting changes in fair values or cash \ufb02ows of hedged items. Hedges are considered to
\n
be highly effective if all the following criter
ia are met:
\n
\u2022
At incept
ion of the hedge and throughout
its life, the hedge is prospectively expected to be highly effective in achiev
ing
\n
offsetting changes in fair value or cash \ufb02ows attributable to the hedged risk
\n
\u2022
Prospective and retrospective effectiveness should be with a range of 80-125%. This is tested using regression analysis
\n
\u2022
The regression co-ef\ufb01c
ient (R squared), wh
ich measures the correlation between the variables in the regression, is at least
\n
80%
\n
\u2022
In the case of the hedge of a forecast transaction, the transaction must have a high probabil
ity of occurr
ing and must
\n
present an exposure to variat
ions
in cash \ufb02ows that are expected to affect reported pro\ufb01t or loss. The Group assumes that
\n
any interest rate benchmarks on which hedged item cash \ufb02ows are based are not altered by IBOR reform
\n
The Group discont
inues hedge account
ing in any of the following circumstances:
\n
\u2022
The hedging instrument is not, or has ceased to be, highly effective as a hedge
\n
\u2022
The hedging instrument has expired, is sold, terminated, or exercised
\n
\u2022
The hedged item matures, is sold, or repaid
\n
\u2022
The forecast transaction is no longer deemed highly probable
\n
\u2022
The Group elects to discont
inue hedge account
ing voluntarily
\n
For interest rate benchmarks deemed in scope of IBOR reform, if the actual result of a hedge is outside the 80-125% range,
\n
but the hedge passes the prospective assessment, then the Group will not de-designate the hedge relationsh
ip.
\n
Under the Phase 2 Interest Rate Benchmark Reform amendments to IFRS 9 and IAS 39, the Group may change hedge
\n
designat
ions and correspond
ing documentation without the hedge being discont
inued where there
is a change in interest
\n
rate benchmark of the hedged item, hedging instrument or designated hedged risk. Permitted changes include the right to:
\n
\u2022
Rede\ufb01ne the descript
ion of the hedged
item and/or hedging instrument
\n
\u2022
Rede\ufb01ne the hedged risk to reference an alternative risk-free rate
\n
\u2022
Change the method for assessing hedge effectiveness due to modif
icat
ions required by IBOR reform
\n
\u2022
Elect, on a hedge-by-hedge basis, to reset the cumulative fair value changes in the assessment of retrospective hedge
\n
effectiveness to zero
\n
A hedge designat
ion may be mod
if
ied more than once, each t
ime a relationsh
ip
is affected as a direct result of IBOR reform.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForHedgingExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f89139": { "value": "Hedging instruments and ineffect
iveness
\n
Interest rate
\n
1
\n
2022
\n
Notional
\n
$mill
ion
\n
Carrying amount
Change in fair
\n
value used to
\n
calculate hedge
\n
ineffect
iveness\u00b2
\n
$mill
ion
\n
Ineffectiveness
\n
recognised in
\n
pro\ufb01t or loss
\n
$mill
ion
\n
Asset
\n
$mill
ion
\n
Liab
il
ity
\n
$mill
ion
\n
Interest rate swaps \u2013 issued notes
41,772
112
2,914
(3,020)
(7)
\n
Interest rate swaps \u2013 loans and advances
1,117
68
\u2013
53
(1)
\n
Interest rate swaps \u2013 debt securit
ies and other
\n
elig
ible b
ills
37,871
2,258
25
3,127
13
\n
Interest and currency risk
\n
1
\n
Cross currency swaps \u2013 subordinated notes issued
72
\u2013
4
(260)
12
\n
Cross currency swaps \u2013 debt securit
ies and other
\n
elig
ible b
ills
1,201
16
44
(9)
4
\n
Total at 31 December 2022
82,033
2,454
2,987
(109)
21
\n
Interest rate\u00b9
\n
2021
\n
Notional
\n
$mill
ion
\n
Carrying amount
Change in fair
\n
value used to
\n
calculate hedge
\n
ineffect
iveness\u00b2
\n
$mill
ion
\n
Ineffectiveness
\n
recognised in
\n
pro\ufb01t or loss
\n
$mill
ion
\n
Asset
\n
$mill
ion
\n
Liab
il
ity
\n
$mill
ion
\n
Interest rate swaps \u2013 issued notes
35,310
575
212
(891)
(9)
\n
Interest rate swaps \u2013 loans and advances
2,079
19
13
13
\u2013
\n
Interest rate swaps \u2013 debt securit
ies and other
\n
elig
ible b
ills
41,277
363
113
717
(1)
\n
Interest and currency risk
\n
1
\n
Cross currency swaps \u2013 subordinated notes issued
1,469
\u2013
150
(139)
6
\n
Cross currency swaps \u2013 debt securit
ies and other
\n
elig
ible b
ills
793
43
1
50
\u2013
\n
Total at 31 December 2021
80,928
1,000
489
(250)
(4)
\n
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
\n
interest rate and currency risks. All the hedging instruments are derivat
ives, w
ith changes in fair value includ
ing hedge
ineffect
iveness recorded w
ith
in net trad
ing
\n
income
\n
2
This represents a (loss)/ change in fair value used for calculating hedge ineffect
iveness", "dimensions": { "concept": "ifrs-full:DisclosureOfDetailedInformationAboutHedgingInstrumentsExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f89304": { "value": "Hedged items in fair value hedges \n
2022
\n
Carrying amount
\n
Accumulated amount of fair value
\n
hedge adjustments included in the
\n
carrying amount
\n
Change in the
\n
value used for
\n
calculating
\n
hedge
\n
ineffect
iveness\u00b9
\n
$mill
ion
\n
Cumulative
\n
balance of
\n
fair value
\n
adjustments
\n
from
\n
de-designated
\n
hedge
\n
relationsh
ips\u00b2
\n
$mill
ion
\n
Asset
\n
$mill
ion
\n
Liab
il
ity
\n
$mill
ion
\n
Asset
\n
$mill
ion
\n
Liab
il
ity
\n
$mill
ion
\n
Issued notes
\u2013
42,702
\u2013
2,756
3,284
414
\n
Debt securit
ies and other el
ig
ible b
ills
36,028
\u2013
(2,075)
\u2013
(3,100)
441
\n
Loans and advances to customers
1,051
\u2013
(65)
\u2013
(54)
1
\n
Total at 31 December 2022
37,079
42,702
(2,140)
2,756
130
856
\n
2021
\n
Carrying amount
\n
Accumulated amount of fair value
\n
hedge adjustments included in the
\n
carrying amount
\n
Change in
\n
fair value used
\n
for calculating
\n
hedge
\n
ineffect
iveness\u00b9
\n
$mill
ion
\n
Cumulative
\n
balance of
\n
fair value
\n
adjustments
\n
from
\n
de-designated
\n
hedge
\n
relationsh
ips\u00b2
\n
$mill
ion
\n
Asset
\n
$mill
ion
\n
Liab
il
ity
\n
$mill
ion
\n
Asset
\n
$mill
ion
\n
Liab
il
ity
\n
$mill
ion
\n
Issued notes
\u2013
35,206
\u2013
31
1,029
862
\n
Debt securit
ies and other el
ig
ible b
ills
41,637
\u2013
(363)
\u2013
(769)
(19)
\n
Loans and advances to customers
2,072
\u2013
(7)
\u2013
(14)
(1)
\n
Total at 31 December 2021
43,709
35,206
(370)
31
246
842
\n
1
This represents a gain/(loss) change in fair value used for calculating hedge ineffect
iveness
\n
2
This represents a credit/(debit) to the balance sheet value", "dimensions": { "concept": "ifrs-full:DisclosureOfDetailedInformationAboutHedgedItemsExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f89501": { "value": "Cash \ufb02ow hedges \n
The Group has exposure to market movements in future interest cash \ufb02ows on portfolios of customer accounts, debt securit
ies
\n
and loans and advances to customers. The amounts and tim
ing of future cash \ufb02ows, represent
ing both princ
ipal and
interest
\n
\ufb02ows, are projected on the basis of contractual terms and other relevant factors, includ
ing est
imates of prepayments and
\n
defaults.
\n
The hedging strategy of the Group involves using interest rate swaps to manage the variab
il
ity in future cash \ufb02ows on assets
\n
and liab
il
it
ies that have \ufb02oat
ing rates of interest by exchanging the \ufb02oating rates for \ufb01xed rates. It also uses foreign exchange
\n
contracts and currency swaps to manage the variab
il
ity in future exchange rates on its assets and liab
il
it
ies and costs
in foreign
\n
currencies. This is done on both a micro basis whereby a single interest rate or cross currency swap is designated in a separate
\n
relationsh
ip w
ith a single hedged item (such as a \ufb02oating rate loan to a customer), and on a portfolio basis whereby each
\n
hedging instrument is designated against a group of hedged items that share the same risk (such as a group of customer
\n
accounts).
\n
The hedged risk is determined as the variab
il
ity of future cash \ufb02ows aris
ing from changes
in the designated benchmark
\ninterest\u00a0rate.", "dimensions": { "concept": "ifrs-full:DisclosureOfDetailedInformationAboutHedgesExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f90705": { "value": "15. Loans and advances to banks and customers \n
Accounting policy
\n
Refer to Note 13 Financ
ial
instruments for the relevant accounting policy.
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Loans and advances to banks
39,545
44,410
\n
Expected credit loss
(26)
(27)
\n
39,519
44,383
\n
Loans and advances to customers
316,107
304,122
\n
Expected credit loss
(5,460)
(5,654)
\n
310,647
298,468
\n
Total loans and advances to banks and customers
350,166
342,851
\n
The Group has outstanding resident
ial mortgage loans to Korea res
idents of $19.1 bill
ion (2021: $21.7 b
ill
ion) and Hong Kong
\n
residents of $35 bill
ion (2021: $34.5 b
ill
ion).
\n
Analysis of loans and advances to customers by geographic region and client segment together with their related impa
irment
\n
provis
ions are set out w
ith
in the R
isk review and Capital review (pages 236 to 325).", "dimensions": { "concept": "ifrs-full:DisclosureOfLoansAndAdvancesToBanksExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f90706": { "value": "15. Loans and advances to banks and customers \n
Accounting policy
\n
Refer to Note 13 Financ
ial
instruments for the relevant accounting policy.
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Loans and advances to banks
39,545
44,410
\n
Expected credit loss
(26)
(27)
\n
39,519
44,383
\n
Loans and advances to customers
316,107
304,122
\n
Expected credit loss
(5,460)
(5,654)
\n
310,647
298,468
\n
Total loans and advances to banks and customers
350,166
342,851
\n
The Group has outstanding resident
ial mortgage loans to Korea res
idents of $19.1 bill
ion (2021: $21.7 b
ill
ion) and Hong Kong
\n
residents of $35 bill
ion (2021: $34.5 b
ill
ion).
\n
Analysis of loans and advances to customers by geographic region and client segment together with their related impa
irment
\n
provis
ions are set out w
ith
in the R
isk review and Capital review (pages 236 to 325).", "dimensions": { "concept": "ifrs-full:DisclosureOfLoansAndAdvancesToCustomersExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f90711": { "value": "Accounting policy \n
Refer to Note 13 Financ
ial
instruments for the relevant accounting policy.", "dimensions": { "concept": "stan:DescriptionOfAccountingPolicyForLoansAndAdvancesToBanksAndCustomersExplanatoryPolicyTextBlock", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f90762": { "value": "16. Reverse repurchase and repurchase agreements includ
ing other s
im
ilar lend
ing and borrowing
\n
Accounting policy
\n
The Group purchases securit
ies (a reverse repurchase agreement \u2013 \u2018reverse repo\u2019) typ
ically with \ufb01nanc
ial
inst
itut
ions subject
\n
to a commitment to resell or return the securit
ies at a predeterm
ined price. These securit
ies are not
included in the balance
\n
sheet as the Group does not acquire the risks and rewards of ownership, however they are recorded off-balance sheet as
\n
collateral received. Considerat
ion pa
id (or cash collateral provided) is accounted for as a loan asset at amortised cost unless
\n
it is managed on a fair value basis or designated at fair value through pro\ufb01t or loss. In major
ity of cases through the
\n
contractual terms of a reverse repo arrangement, the Group as the transferee of the security collateral has the right to sell or
\n
repledge the asset concerned.
\n
The Group also sells securit
ies (a repurchase agreement \u2013 \u2018repo\u2019) subject to a comm
itment to repurchase or redeem the
\n
securit
ies at a predeterm
ined price. The securit
ies are reta
ined on the balance sheet as the Group retains substantially all the
\n
risks and rewards of ownership and these securit
ies are d
isclosed as pledged collateral. Considerat
ion rece
ived (or cash
\n
collateral received) is accounted for as a \ufb01nanc
ial l
iab
il
ity at amortised cost unless it is either mandatorily classif
ied as fa
ir
\n
value through pro\ufb01t or loss or irrevocably designated at fair value through pro\ufb01t or loss at in
it
ial recognit
ion.
\n
Financ
ial assets are pledged as collateral as part of sales and repurchases, secur
it
ies borrow
ing and securit
isat
ion
\n
transactions under terms that are usual and customary for such activ
it
ies. The Group is obliged to return equivalent
\n
securit
ies.
\n
Repo and reverse repo transactions typically entitle the Group and its counterparties to have recourse to assets sim
ilar to
\n
those provided as collateral in the event of a default. Securit
ies sold subject to repos, e
ither by way of a Global Master
\n
Repurchase Agreement (GMRA), or through a securit
ies sale and Total Return Swap (TRS) cont
inue to be recognised on the
\n
balance sheet as the Group retains substantially the associated risks and rewards of the securit
ies (the TRS
is not
\n
recognised). The counterparty liab
il
ity is included in deposits by banks or customer accounts, as appropriate. Assets sold
\n
under repurchase agreements are considered encumbered as the Group cannot pledge these to obtain funding.
\n\n
408
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
16. Reverse repurchase and repurchase agreements includ
ing other s
im
ilar lend
ing and borrowing
\n
continued
\n
Reverse repurchase agreements and other sim
ilar secured lend
ing
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Banks
24,932
19,806
\n
Customers
65,035
68,613
\n
89,967
88,419
\n
Of which:
\n
Fair value through pro\ufb01t or loss
64,491
80,009
\n
Banks
23,954
18,727
\n
Customers
40,537
61,282
\n
Held at amortised cost
25,476
8,410
\n
Banks
978
1,079
\n
Customers
24,498
7,331
\n
Under reverse repurchase and securit
ies borrow
ing arrangements, the Group obtains securit
ies on terms wh
ich permit it to
\n
repledge or resell the securit
ies to others. Amounts on such terms are:
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Securit
ies and collateral rece
ived (at fair value)
124,989
118,636
\n
Securit
ies and collateral wh
ich can be repledged or sold (at fair value)
123,759
117,408
\n
Amounts repledged/transferred to others for \ufb01nancing act
iv
it
ies, to satisfy liab
il
it
ies under sale and
\n
repurchase agreements (at fair value)
44,628
57,879
\n
Repurchase agreements and other sim
ilar secured borrow
ing
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Banks
6,968
7,054
\n
Customers
46,846
58,594
\n
53,814
65,648
\n
Of which:
\n
Fair value through pro\ufb01t or loss
51,706
62,388
\n
Banks
5,737
5,107
\n
Customers
45,969
57,281
\n
Held at amortised cost
2,108
3,260
\n
Banks
1,231
1,947
\n
Customers
877
1,313
\n
The tables below set out the \ufb01nancial assets prov
ided as collateral for repurchase and other secured borrowing transactions:
\n
Collateral pledged against repurchase agreements
\n
2022
\n
Fair value
\n
through pro\ufb01t
\n
or loss
\n
$mill
ion
\n
Fair value
\n
through Other
\n
Comprehensive
\n
Income
\n
$mill
ion
\n
Amortised cost
\n
$mill
ion
\n
Off-balance
\n
sheet
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
On-balance sheet
\n
Debt securit
ies and other el
ig
ible b
ills
2,956
3,630
4,917
\u2013
11,503
\n
Off-balance sheet
\n
Repledged collateral received
\u2013
\u2013
\u2013
44,628
44,628
\n
At 31 December 2022
2,956
3,630
4,917
44,628
56,131
\n
Collateral pledged against repurchase agreements
\n
2021
\n
Fair value
\n
through pro\ufb01t
\n
or loss
\n
$mill
ion
\n
Fair value
\n
through Other
\n
Comprehensive
\n
Income
\n
$mill
ion
\n
Amortised cost
\n
$mill
ion
\n
Off-balance
\n
sheet
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
On-balance sheet
\n
Debt securit
ies and other el
ig
ible b
ills
3,427
2,655
2,601
\u2013
8,683
\n
Off-balance sheet
\n
Repledged collateral received
\u2013
\u2013
\u2013
57,879
57,879
\n
At 31 December 2021
3,427
2,655
2,601
57,879
66,562", "dimensions": { "concept": "ifrs-full:DisclosureOfRepurchaseAndReverseRepurchaseAgreementsExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f90763": { "value": "16. Reverse repurchase and repurchase agreements includ
ing other s
im
ilar lend
ing and borrowing
\n
Accounting policy
\n
The Group purchases securit
ies (a reverse repurchase agreement \u2013 \u2018reverse repo\u2019) typ
ically with \ufb01nanc
ial
inst
itut
ions subject
\n
to a commitment to resell or return the securit
ies at a predeterm
ined price. These securit
ies are not
included in the balance
\n
sheet as the Group does not acquire the risks and rewards of ownership, however they are recorded off-balance sheet as
\n
collateral received. Considerat
ion pa
id (or cash collateral provided) is accounted for as a loan asset at amortised cost unless
\n
it is managed on a fair value basis or designated at fair value through pro\ufb01t or loss. In major
ity of cases through the
\n
contractual terms of a reverse repo arrangement, the Group as the transferee of the security collateral has the right to sell or
\n
repledge the asset concerned.
\n
The Group also sells securit
ies (a repurchase agreement \u2013 \u2018repo\u2019) subject to a comm
itment to repurchase or redeem the
\n
securit
ies at a predeterm
ined price. The securit
ies are reta
ined on the balance sheet as the Group retains substantially all the
\n
risks and rewards of ownership and these securit
ies are d
isclosed as pledged collateral. Considerat
ion rece
ived (or cash
\n
collateral received) is accounted for as a \ufb01nanc
ial l
iab
il
ity at amortised cost unless it is either mandatorily classif
ied as fa
ir
\n
value through pro\ufb01t or loss or irrevocably designated at fair value through pro\ufb01t or loss at in
it
ial recognit
ion.
\n
Financ
ial assets are pledged as collateral as part of sales and repurchases, secur
it
ies borrow
ing and securit
isat
ion
\n
transactions under terms that are usual and customary for such activ
it
ies. The Group is obliged to return equivalent
\n
securit
ies.
\n
Repo and reverse repo transactions typically entitle the Group and its counterparties to have recourse to assets sim
ilar to
\n
those provided as collateral in the event of a default. Securit
ies sold subject to repos, e
ither by way of a Global Master
\n
Repurchase Agreement (GMRA), or through a securit
ies sale and Total Return Swap (TRS) cont
inue to be recognised on the
\n
balance sheet as the Group retains substantially the associated risks and rewards of the securit
ies (the TRS
is not
\n
recognised). The counterparty liab
il
ity is included in deposits by banks or customer accounts, as appropriate. Assets sold
\n
under repurchase agreements are considered encumbered as the Group cannot pledge these to obtain funding.
\n\n
408
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
16. Reverse repurchase and repurchase agreements includ
ing other s
im
ilar lend
ing and borrowing
\n
continued
\n
Reverse repurchase agreements and other sim
ilar secured lend
ing
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Banks
24,932
19,806
\n
Customers
65,035
68,613
\n
89,967
88,419
\n
Of which:
\n
Fair value through pro\ufb01t or loss
64,491
80,009
\n
Banks
23,954
18,727
\n
Customers
40,537
61,282
\n
Held at amortised cost
25,476
8,410
\n
Banks
978
1,079
\n
Customers
24,498
7,331
\n
Under reverse repurchase and securit
ies borrow
ing arrangements, the Group obtains securit
ies on terms wh
ich permit it to
\n
repledge or resell the securit
ies to others. Amounts on such terms are:
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Securit
ies and collateral rece
ived (at fair value)
124,989
118,636
\n
Securit
ies and collateral wh
ich can be repledged or sold (at fair value)
123,759
117,408
\n
Amounts repledged/transferred to others for \ufb01nancing act
iv
it
ies, to satisfy liab
il
it
ies under sale and
\n
repurchase agreements (at fair value)
44,628
57,879
\n
Repurchase agreements and other sim
ilar secured borrow
ing
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Banks
6,968
7,054
\n
Customers
46,846
58,594
\n
53,814
65,648
\n
Of which:
\n
Fair value through pro\ufb01t or loss
51,706
62,388
\n
Banks
5,737
5,107
\n
Customers
45,969
57,281
\n
Held at amortised cost
2,108
3,260
\n
Banks
1,231
1,947
\n
Customers
877
1,313
\n
The tables below set out the \ufb01nancial assets prov
ided as collateral for repurchase and other secured borrowing transactions:
\n
Collateral pledged against repurchase agreements
\n
2022
\n
Fair value
\n
through pro\ufb01t
\n
or loss
\n
$mill
ion
\n
Fair value
\n
through Other
\n
Comprehensive
\n
Income
\n
$mill
ion
\n
Amortised cost
\n
$mill
ion
\n
Off-balance
\n
sheet
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
On-balance sheet
\n
Debt securit
ies and other el
ig
ible b
ills
2,956
3,630
4,917
\u2013
11,503
\n
Off-balance sheet
\n
Repledged collateral received
\u2013
\u2013
\u2013
44,628
44,628
\n
At 31 December 2022
2,956
3,630
4,917
44,628
56,131
\n
Collateral pledged against repurchase agreements
\n
2021
\n
Fair value
\n
through pro\ufb01t
\n
or loss
\n
$mill
ion
\n
Fair value
\n
through Other
\n
Comprehensive
\n
Income
\n
$mill
ion
\n
Amortised cost
\n
$mill
ion
\n
Off-balance
\n
sheet
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
On-balance sheet
\n
Debt securit
ies and other el
ig
ible b
ills
3,427
2,655
2,601
\u2013
8,683
\n
Off-balance sheet
\n
Repledged collateral received
\u2013
\u2013
\u2013
57,879
57,879
\n
At 31 December 2021
3,427
2,655
2,601
57,879
66,562", "dimensions": { "concept": "ifrs-full:DisclosureOfBorrowingsExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f90772": { "value": "Accounting policy \n
The Group purchases securit
ies (a reverse repurchase agreement \u2013 \u2018reverse repo\u2019) typ
ically with \ufb01nanc
ial
inst
itut
ions subject
\n
to a commitment to resell or return the securit
ies at a predeterm
ined price. These securit
ies are not
included in the balance
\n
sheet as the Group does not acquire the risks and rewards of ownership, however they are recorded off-balance sheet as
\n
collateral received. Considerat
ion pa
id (or cash collateral provided) is accounted for as a loan asset at amortised cost unless
\n
it is managed on a fair value basis or designated at fair value through pro\ufb01t or loss. In major
ity of cases through the
\n
contractual terms of a reverse repo arrangement, the Group as the transferee of the security collateral has the right to sell or
\n
repledge the asset concerned.
\n
The Group also sells securit
ies (a repurchase agreement \u2013 \u2018repo\u2019) subject to a comm
itment to repurchase or redeem the
\n
securit
ies at a predeterm
ined price. The securit
ies are reta
ined on the balance sheet as the Group retains substantially all the
\n
risks and rewards of ownership and these securit
ies are d
isclosed as pledged collateral. Considerat
ion rece
ived (or cash
\n
collateral received) is accounted for as a \ufb01nanc
ial l
iab
il
ity at amortised cost unless it is either mandatorily classif
ied as fa
ir
\n
value through pro\ufb01t or loss or irrevocably designated at fair value through pro\ufb01t or loss at in
it
ial recognit
ion.
\n
Financ
ial assets are pledged as collateral as part of sales and repurchases, secur
it
ies borrow
ing and securit
isat
ion
\n
transactions under terms that are usual and customary for such activ
it
ies. The Group is obliged to return equivalent
\n
securit
ies.
\n
Repo and reverse repo transactions typically entitle the Group and its counterparties to have recourse to assets sim
ilar to
\n
those provided as collateral in the event of a default. Securit
ies sold subject to repos, e
ither by way of a Global Master
\n
Repurchase Agreement (GMRA), or through a securit
ies sale and Total Return Swap (TRS) cont
inue to be recognised on the
\n
balance sheet as the Group retains substantially the associated risks and rewards of the securit
ies (the TRS
is not
\n
recognised). The counterparty liab
il
ity is included in deposits by banks or customer accounts, as appropriate. Assets sold
\nunder repurchase agreements are considered encumbered as the Group cannot pledge these to obtain funding.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRepurchaseAndReverseRepurchaseAgreementsExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f90773": { "value": "Accounting policy \n
The Group purchases securit
ies (a reverse repurchase agreement \u2013 \u2018reverse repo\u2019) typ
ically with \ufb01nanc
ial
inst
itut
ions subject
\n
to a commitment to resell or return the securit
ies at a predeterm
ined price. These securit
ies are not
included in the balance
\n
sheet as the Group does not acquire the risks and rewards of ownership, however they are recorded off-balance sheet as
\n
collateral received. Considerat
ion pa
id (or cash collateral provided) is accounted for as a loan asset at amortised cost unless
\n
it is managed on a fair value basis or designated at fair value through pro\ufb01t or loss. In major
ity of cases through the
\n
contractual terms of a reverse repo arrangement, the Group as the transferee of the security collateral has the right to sell or
\n
repledge the asset concerned.
\n
The Group also sells securit
ies (a repurchase agreement \u2013 \u2018repo\u2019) subject to a comm
itment to repurchase or redeem the
\n
securit
ies at a predeterm
ined price. The securit
ies are reta
ined on the balance sheet as the Group retains substantially all the
\n
risks and rewards of ownership and these securit
ies are d
isclosed as pledged collateral. Considerat
ion rece
ived (or cash
\n
collateral received) is accounted for as a \ufb01nanc
ial l
iab
il
ity at amortised cost unless it is either mandatorily classif
ied as fa
ir
\n
value through pro\ufb01t or loss or irrevocably designated at fair value through pro\ufb01t or loss at in
it
ial recognit
ion.
\n
Financ
ial assets are pledged as collateral as part of sales and repurchases, secur
it
ies borrow
ing and securit
isat
ion
\n
transactions under terms that are usual and customary for such activ
it
ies. The Group is obliged to return equivalent
\n
securit
ies.
\n
Repo and reverse repo transactions typically entitle the Group and its counterparties to have recourse to assets sim
ilar to
\n
those provided as collateral in the event of a default. Securit
ies sold subject to repos, e
ither by way of a Global Master
\n
Repurchase Agreement (GMRA), or through a securit
ies sale and Total Return Swap (TRS) cont
inue to be recognised on the
\n
balance sheet as the Group retains substantially the associated risks and rewards of the securit
ies (the TRS
is not
\n
recognised). The counterparty liab
il
ity is included in deposits by banks or customer accounts, as appropriate. Assets sold
\nunder repurchase agreements are considered encumbered as the Group cannot pledge these to obtain funding.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f90821": { "value": "Financ
ial assets are pledged as collateral as part of sales and repurchases, secur
it
ies borrow
ing and securit
isat
ion
\n
transactions under terms that are usual and customary for such activ
it
ies. The Group is obliged to return equivalent
\n
securit
ies.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForCollateralExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f91095": { "value": "17. Goodwill and intang
ible assets
\n
Accounting policy
\n
Goodwill
\n
Goodwill represents the excess of the cost of an acquis
it
ion over the fair value of the Group\u2019s share of the ident
i\ufb01able net
\n
assets and contingent liab
il
it
ies of the acqu
ired subsid
iary, assoc
iate or jo
int venture at the date of acqu
is
it
ion. Goodwill on
\n
acquis
it
ions of subsid
iar
ies is included in intang
ible assets. Goodw
ill on acquis
it
ions of associates is included in Investments in
\n
associates and jo
int ventures. Goodw
ill included in intang
ible assets
is assessed at each balance sheet date for impa
irment
\n
and carried at cost less any accumulated impa
irment losses. Ga
ins and losses on the disposal of an entity include the
\n
carrying amount of goodwill relating to the entity sold. Detailed calculations are performed based on forecasting expected
\n
cash \ufb02ows of the relevant cash generating units (CGUs) and discount
ing these at an appropr
iate discount rate, the
\n
determinat
ion of wh
ich requires the exercise of judgement. Goodwill is allocated to CGUs for the purpose of impa
irment
\n
testing. CGUs represent the lowest level with
in the Group wh
ich generate separate cash in\ufb02ows and at which the goodwill is
\n
monitored for internal management purposes. These are equal to or smaller than the Group\u2019s reportable segments (as set
\n
out in Note 2) as the Group views its reportable segments on a global basis. The major CGUs to which goodwill has been
\n
allocated are set out in the CGU table (page 410).
\n
Other accounting estimates and judgements
\n
The carrying amount of goodwill is based on the applicat
ion of judgements
includ
ing the bas
is of goodwill impa
irment
\n
calculation assumptions. Judgement is also applied in determinat
ion of CGUs.
\n
Estimates include forecasts used for determin
ing cash \ufb02ows for CGUs, the appropr
iate long-term growth rates to use and
\n
discount rates which factor in country risk-free rates and applicable risk premiums. The Group undertakes an annual
\n
assessment to evaluate whether the carrying value of goodwill is impa
ired. The est
imat
ion of future cash \ufb02ows and the level
\n
to which they are discounted is inherently uncertain and requires sign
i\ufb01cant judgement and
is subject to potential change
\n
over time.
\n
Acquired intang
ibles
\n
At the date of acquis
it
ion of a subsid
iary or assoc
iate, intang
ible assets wh
ich are deemed separable and that arise from
\n
contractual or other legal rights are capital
ised and
included with
in the net
ident
i\ufb01able assets acqu
ired. These intang
ible
\n
assets are in
it
ially measured at fair value, which re\ufb02ects market expectations of the probabil
ity that the future econom
ic
\n
bene\ufb01ts embodied in the asset will \ufb02ow to the entity and are amortised on the basis of their expected useful lives (4 to 16
\n
years). At each balance sheet date, these assets are assessed for ind
icators of
impa
irment. In the event that an asset\u2019s
\n
carrying amount is determined to be greater than its recoverable amount, the asset is written down immed
iately to the
\n
recoverable amount.
\n
Computer software
\n
Acquired computer software licences are capital
ised
if the princ
iples of development are met on the bas
is of the costs
\n
incurred to acquire and bring to use the specif
ic software.
\n
Internally generated software represents substantially all of the total software capital
ised. D
irect costs of the development
\n
of separately ident
i\ufb01able
internally generated software are capital
ised where
it is probable that future economic bene\ufb01ts
\n
attributable to the software will \ufb02ow from its use. These costs include staff remuneration costs such as salaries, statutory
\n
payments and share-based payments, materials, service providers and contractors provided their time is directly
\n
attributable to the software build. Costs incurred in the ongoing maintenance of software are expensed immed
iately when
\n
incurred. Internally generated software is amortised over each asset\u2019s useful life to a maximum of 10-years. On an annual
\n
basis software assets\u2019 residual values and useful lives are reviewed, includ
ing assess
ing for ind
icators of
impa
irment.
\n
Indicators of impa
irment
include loss of business relevance, obsolescence, exit of the business to which the software relates,
\n
technological changes, change in use of the asset, reduction in useful life, plans to reduce usage or scope.
\n
For capital
ised software, judgement
is required to determine which costs relate to research (expensed) and which costs
\n
relate to development (capital
ised). Further judgement
is required to determine the technical feasib
il
ity of completing the
\n
software such that it will be available for use. Estimates are used to determine how the software will generate probable
\n
future economic bene\ufb01ts: these estimates include cost savings, income increases, balance sheet improvements, improved
\n
functional
ity or
improved asset safeguarding.
\n
Software as a Service (SaaS) is a contractual arrangement that conveys the right to receive access to the supplier\u2019s software
\n
applicat
ion over the contract term. As such, the Group does not have control and as a result recogn
ises an operating
\n
expense for these costs over the contract term. Certain costs related to implementat
ion of the SaaS may meet the de\ufb01nit
ion
\n
of an intang
ible asset
in their own right if it is separately ident
i\ufb01able and control
is established. These costs are capital
ised
if
\n
it is expected to provide the Group with future economic bene\ufb01ts \ufb02owing from the underlying resource and the Group can
\n
restrict others from accessing those bene\ufb01ts.
410
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
17. Goodwill and intang
ible assets
continued
\n
2022
2021
\n
Goodwill
\n
$mill
ion
\n
Acquired
\n
intang
ibles
\n
$mill
ion
\n
Computer
\n
software
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Goodwill
\n
$mill
ion
\n
Acquired
\n
intang
ibles
\n
$mill
ion
\n
Computer
\n
software
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Cost
\n
At 1 January
2,595
457
4,464
7,516
2,617
473
3,682
6,772
\n
Exchange translation differences
(108)
(26)
(22)
(156)
(22)
(14)
(73)
(109)
\n
Addit
ions
\u2013
\u2013
1,096
1,096
\u2013
\u2013
989
989
\n
Impairment
(14)
\u2013
(7)
(21)
\u2013
\u2013
\u2013
\u2013
\n
Amounts written off
\u2013
(136)
(348)
(484)
\u2013
(2)
(134)
(136)
\n
Classif
ied as held for sale
(2)
\u2013
(5)
(7)
\u2013
\u2013
\u2013
\u2013
\n
At 31 December
2,471
295
5,178
7,944
2,595
457
4,464
7,516
\n
Provis
ion for amort
isat
ion
\n
At 1 January
\u2013
437
1,608
2,045
\u2013
451
1,258
1,709
\n
Exchange translation differences
\u2013
(29)
(11)
(40)
\u2013
(22)
(20)
(42)
\n
Amortisat
ion
\u2013
4
531
535
\u2013
8
461
469
\n
Impairment charge
\u2013
\u2013
5
5
\u2013
\u2013
4
4
\n
Amounts written off
\u2013
(136)
(331)
(467)
\u2013
\u2013
(95)
(95)
\n
Classif
ied as held for sale
\u2013
\u2013
(3)
(3)
\u2013
\u2013
\u2013
\u2013
\n
At 31 December
\u2013
276
1,799
2,075
\u2013
437
1,608
2,045
\n
Net book value
2,471
19
3,379
5,869
2,595
20
2,856
5,471
\n
At 31 December 2022, accumulated goodwill impa
irment losses
incurred from 1 January 2005 amounted to $3,331 mill
ion
\n
(31\u00a0December 2021: $3,317 mill
ion), of wh
ich $14 mill
ion was recogn
ised in 2022 (31 December 2021: Nil).
\n
Outcome of impa
irment assessment
\n
An annual assessment is made as to whether the current carrying value of goodwill is impa
ired. For the purposes of
impa
irment
\n
testing, goodwill is allocated at the date of acquis
it
ion to a CGU. Goodwill is considered to be impa
ired
if the carrying amount
\n
of the relevant CGU exceeds its recoverable amount. Indicators of impa
irment
include changes in the economic performance
\n
and outlook of the region includ
ing geopol
it
ical changes, changes
in market value of regional investments, large credit defaults
\n
and strategic decis
ions to ex
it certain regions. The recoverable amounts for all the CGUs were measured based on value in use
\n
(VIU). The calculation of VIU for each CGU is calculated using \ufb01ve-year cash\ufb02ow project
ions and an est
imated terminal value
\n
based on a perpetuity value after year \ufb01ve. The cash\ufb02ow project
ions are based on forecasts approved by management up to
\n
2027. The perpetuity terminal value amount is calculated using year \ufb01ve cash\ufb02ows using long-term GDP growth rates. All
\n
cash\ufb02ows are discounted using discount rates which re\ufb02ect market rates appropriate to the CGU. Post-tax discount rates are
\n
used to calculate the VIU using the post-tax cash\ufb02ows. The post-tax discount rate is subsequently grossed up to pre-tax
\n
discount rate. The calculated VIU using post-tax and pre-tax discount rate is same.
\n
The goodwill allocated to each CGU and key assumptions used in determin
ing the recoverable amounts are set out below and
\n
are solely estimates for the purposes of assessing impa
irment of acqu
ired goodwill.
\n
Cash generating unit
\n
2022
2021
\n
Goodwill
\n
$mill
ion
\n
Pre Tax
\n
discount rates
\n
per cent
\n
Long-term
\n
forecast GDP
\n
growth rates
\n
per cent
\n
Goodwill
\n
$mill
ion
\n
Pre Tax
\n
discount rates
\n
per cent
\n
Long-term
\n
forecast GDP
\n
growth rates
\n
per cent
\n
Country CGUs
\n
Asia
1,032
1,073
\n
Hong Kong
357
12.4
1.7
357
10.6
2.5
\n
Taiwan
333
11.3
1.7
361
10.4
2.0
\n
Singapore
342
12.3
2.3
341
11.6
2.4
\n
Bangladesh
\u2013
24.3
5.4
14
15.0
7.3
\n
Africa & Middle East
85
92
\n
Pakistan
36
30.9
5.9
43
22.2
6.0
\n
Bahrain
49
16.6
0.7
49
13.1
3.0
\n
Global CGUs
1,354
1,430
\n
Global Private Banking
83
14.5
2.0
84
12.4
2.5
\n
Corporate, Commercial &
\n
Institut
ional Bank
ing
1,271
14.7
2.5
1,346
12.5
3.0
\n
2,471
2,595
\n
Bangladesh has had all the goodwill allocated to them written off, totalling $14 mill
ion. Th
is was primar
ily due to lower
\n
economic growth forecasts and higher discount rates. As a result, the carrying amount of Bangladesh CGU, which included
\n
goodwill, was greater than the recoverable amount (VIU of $83 mill
ion).
\n\n
411
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
17. Goodwill and intang
ible assets
continued
\n
The Group has performed sensit
iv
ity analysis on the key assumptions for each CGU\u2019s recoverable amount. Hong Kong CGU is
\n
considered sensit
ive to the key var
iables and any ind
iv
idual movements on the estimates (cash\ufb02ow, discount rate and GDP
\n
growth rate) up to the levels disclosed below would elim
inate the current headroom.
\n
CGU
\n
2022
\n
Goodwill
\n
$mill
ion
\n
Base Case
\n
Sensit
iv
it
ies
\n
GDP
Discount rate
Cash\ufb02ow
Cash\ufb02ow
\n
Cash-
\n
\ufb02ow
\n
Downside
\n
scenario
\n
Extreme
\n
downside
\n
scenario
\n
GDP -1%
GDP -1%
\n
DR +1%
DR +1%
\n
+1%
-1%
+1%
-1%
+10%
-10%
+20%
-20%
-30%
CF -10%
CF -20%
\n
Head-
\n
room
\n
$mill
ion
\n
Pre Tax
\n
Discount
\n
Rate
GDP
\n
Head-
\n
room
\n
$mill
ion
\n
Head-
\n
room
\n
$mill
ion
\n
Head-
\n
room
\n
$mill
ion
\n
Head-
\n
room
\n
$mill
ion
\n
Head-
\n
room
\n
$mill
ion
\n
Head-
\n
room
\n
$mill
ion
\n
Head-
\n
room
\n
$mill
ion
\n
Head-
\n
room
\n
$mill
ion
\n
Head-
\n
room
\n
$mill
ion
\n
Head-
\n
room
\n
$mill
ion
\n
Head-
\n
room
\n
$mill
ion
\n
Hong
\n
Kong
357
1,115
12.40%
1.66%
1,810
572
361
2,076
2,142
91
3,168
(935) (1,961)
(911)
(1,760)
\n
The table above represents reasonably possible scenarios that could occur if either; economic factors (which drive GDP rates
\n
and discount rates); country-specif
ic cash \ufb02ows; or a comb
inat
ion of both are d
ifferent from the assumptions used in the
\n
goodwill impa
irment assessment at 31 December 2022.
\n
For there to be no headroom, the discount rate will need to increase by 1.57 per cent. Sim
ilarly, the GDP rates w
ill need to
\n
decrease by 2.35 per cent and cash\ufb02ows would need to decrease by 10.89 per cent.
\n
Acquired intang
ibles
\n
These primar
ily compr
ise those items recognised as part of the acquis
it
ions of Union Bank (now amalgamated into Standard
\n
Chartered Bank (Pakistan) Lim
ited), Hs
inchu (now amalgamated into Standard Chartered Bank (Taiwan) Lim
ited), Pembroke,
\n
American Express Bank and ABSA\u2019s custody business in Africa. Maintenance intang
ible assets represent the d
ifference in the
\n
value between the contractual right under acquired leases to receive aircraft in a specif
ied ma
intenance condit
ion at the end of
\n
the lease and the actual physical condit
ion of the a
ircraft at the date of acquis
it
ion.
\n
The acquired intang
ibles are amort
ised over periods from four years to a maximum of 16 years. The constituents are as follows:
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Acquired intang
ibles compr
ise:
\n
Aircraft maintenance
5
5
\n
Brand names
1
1
\n
Customer relationsh
ips
1
3
\n
Licenses
12
11
\n
Net book value
19
20", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f91096": { "value": "17. Goodwill and intang
ible assets
\n
Accounting policy
\n
Goodwill
\n
Goodwill represents the excess of the cost of an acquis
it
ion over the fair value of the Group\u2019s share of the ident
i\ufb01able net
\n
assets and contingent liab
il
it
ies of the acqu
ired subsid
iary, assoc
iate or jo
int venture at the date of acqu
is
it
ion. Goodwill on
\n
acquis
it
ions of subsid
iar
ies is included in intang
ible assets. Goodw
ill on acquis
it
ions of associates is included in Investments in
\n
associates and jo
int ventures. Goodw
ill included in intang
ible assets
is assessed at each balance sheet date for impa
irment
\n
and carried at cost less any accumulated impa
irment losses. Ga
ins and losses on the disposal of an entity include the
\n
carrying amount of goodwill relating to the entity sold. Detailed calculations are performed based on forecasting expected
\n
cash \ufb02ows of the relevant cash generating units (CGUs) and discount
ing these at an appropr
iate discount rate, the
\n
determinat
ion of wh
ich requires the exercise of judgement. Goodwill is allocated to CGUs for the purpose of impa
irment
\n
testing. CGUs represent the lowest level with
in the Group wh
ich generate separate cash in\ufb02ows and at which the goodwill is
\n
monitored for internal management purposes. These are equal to or smaller than the Group\u2019s reportable segments (as set
\n
out in Note 2) as the Group views its reportable segments on a global basis. The major CGUs to which goodwill has been
\n
allocated are set out in the CGU table (page 410).
\n
Other accounting estimates and judgements
\n
The carrying amount of goodwill is based on the applicat
ion of judgements
includ
ing the bas
is of goodwill impa
irment
\n
calculation assumptions. Judgement is also applied in determinat
ion of CGUs.
\n
Estimates include forecasts used for determin
ing cash \ufb02ows for CGUs, the appropr
iate long-term growth rates to use and
\n
discount rates which factor in country risk-free rates and applicable risk premiums. The Group undertakes an annual
\n
assessment to evaluate whether the carrying value of goodwill is impa
ired. The est
imat
ion of future cash \ufb02ows and the level
\n
to which they are discounted is inherently uncertain and requires sign
i\ufb01cant judgement and
is subject to potential change
\n
over time.
\n
Acquired intang
ibles
\n
At the date of acquis
it
ion of a subsid
iary or assoc
iate, intang
ible assets wh
ich are deemed separable and that arise from
\n
contractual or other legal rights are capital
ised and
included with
in the net
ident
i\ufb01able assets acqu
ired. These intang
ible
\n
assets are in
it
ially measured at fair value, which re\ufb02ects market expectations of the probabil
ity that the future econom
ic
\n
bene\ufb01ts embodied in the asset will \ufb02ow to the entity and are amortised on the basis of their expected useful lives (4 to 16
\n
years). At each balance sheet date, these assets are assessed for ind
icators of
impa
irment. In the event that an asset\u2019s
\n
carrying amount is determined to be greater than its recoverable amount, the asset is written down immed
iately to the
\n
recoverable amount.
\n
Computer software
\n
Acquired computer software licences are capital
ised
if the princ
iples of development are met on the bas
is of the costs
\n
incurred to acquire and bring to use the specif
ic software.
\n
Internally generated software represents substantially all of the total software capital
ised. D
irect costs of the development
\n
of separately ident
i\ufb01able
internally generated software are capital
ised where
it is probable that future economic bene\ufb01ts
\n
attributable to the software will \ufb02ow from its use. These costs include staff remuneration costs such as salaries, statutory
\n
payments and share-based payments, materials, service providers and contractors provided their time is directly
\n
attributable to the software build. Costs incurred in the ongoing maintenance of software are expensed immed
iately when
\n
incurred. Internally generated software is amortised over each asset\u2019s useful life to a maximum of 10-years. On an annual
\n
basis software assets\u2019 residual values and useful lives are reviewed, includ
ing assess
ing for ind
icators of
impa
irment.
\n
Indicators of impa
irment
include loss of business relevance, obsolescence, exit of the business to which the software relates,
\n
technological changes, change in use of the asset, reduction in useful life, plans to reduce usage or scope.
\n
For capital
ised software, judgement
is required to determine which costs relate to research (expensed) and which costs
\n
relate to development (capital
ised). Further judgement
is required to determine the technical feasib
il
ity of completing the
\n
software such that it will be available for use. Estimates are used to determine how the software will generate probable
\n
future economic bene\ufb01ts: these estimates include cost savings, income increases, balance sheet improvements, improved
\n
functional
ity or
improved asset safeguarding.
\n
Software as a Service (SaaS) is a contractual arrangement that conveys the right to receive access to the supplier\u2019s software
\n
applicat
ion over the contract term. As such, the Group does not have control and as a result recogn
ises an operating
\n
expense for these costs over the contract term. Certain costs related to implementat
ion of the SaaS may meet the de\ufb01nit
ion
\n
of an intang
ible asset
in their own right if it is separately ident
i\ufb01able and control
is established. These costs are capital
ised
if
\n
it is expected to provide the Group with future economic bene\ufb01ts \ufb02owing from the underlying resource and the Group can
\n
restrict others from accessing those bene\ufb01ts.
410
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
17. Goodwill and intang
ible assets
continued
\n
2022
2021
\n
Goodwill
\n
$mill
ion
\n
Acquired
\n
intang
ibles
\n
$mill
ion
\n
Computer
\n
software
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Goodwill
\n
$mill
ion
\n
Acquired
\n
intang
ibles
\n
$mill
ion
\n
Computer
\n
software
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Cost
\n
At 1 January
2,595
457
4,464
7,516
2,617
473
3,682
6,772
\n
Exchange translation differences
(108)
(26)
(22)
(156)
(22)
(14)
(73)
(109)
\n
Addit
ions
\u2013
\u2013
1,096
1,096
\u2013
\u2013
989
989
\n
Impairment
(14)
\u2013
(7)
(21)
\u2013
\u2013
\u2013
\u2013
\n
Amounts written off
\u2013
(136)
(348)
(484)
\u2013
(2)
(134)
(136)
\n
Classif
ied as held for sale
(2)
\u2013
(5)
(7)
\u2013
\u2013
\u2013
\u2013
\n
At 31 December
2,471
295
5,178
7,944
2,595
457
4,464
7,516
\n
Provis
ion for amort
isat
ion
\n
At 1 January
\u2013
437
1,608
2,045
\u2013
451
1,258
1,709
\n
Exchange translation differences
\u2013
(29)
(11)
(40)
\u2013
(22)
(20)
(42)
\n
Amortisat
ion
\u2013
4
531
535
\u2013
8
461
469
\n
Impairment charge
\u2013
\u2013
5
5
\u2013
\u2013
4
4
\n
Amounts written off
\u2013
(136)
(331)
(467)
\u2013
\u2013
(95)
(95)
\n
Classif
ied as held for sale
\u2013
\u2013
(3)
(3)
\u2013
\u2013
\u2013
\u2013
\n
At 31 December
\u2013
276
1,799
2,075
\u2013
437
1,608
2,045
\n
Net book value
2,471
19
3,379
5,869
2,595
20
2,856
5,471
\n
At 31 December 2022, accumulated goodwill impa
irment losses
incurred from 1 January 2005 amounted to $3,331 mill
ion
\n
(31\u00a0December 2021: $3,317 mill
ion), of wh
ich $14 mill
ion was recogn
ised in 2022 (31 December 2021: Nil).
\n
Outcome of impa
irment assessment
\n
An annual assessment is made as to whether the current carrying value of goodwill is impa
ired. For the purposes of
impa
irment
\n
testing, goodwill is allocated at the date of acquis
it
ion to a CGU. Goodwill is considered to be impa
ired
if the carrying amount
\n
of the relevant CGU exceeds its recoverable amount. Indicators of impa
irment
include changes in the economic performance
\n
and outlook of the region includ
ing geopol
it
ical changes, changes
in market value of regional investments, large credit defaults
\n
and strategic decis
ions to ex
it certain regions. The recoverable amounts for all the CGUs were measured based on value in use
\n
(VIU). The calculation of VIU for each CGU is calculated using \ufb01ve-year cash\ufb02ow project
ions and an est
imated terminal value
\n
based on a perpetuity value after year \ufb01ve. The cash\ufb02ow project
ions are based on forecasts approved by management up to
\n
2027. The perpetuity terminal value amount is calculated using year \ufb01ve cash\ufb02ows using long-term GDP growth rates. All
\n
cash\ufb02ows are discounted using discount rates which re\ufb02ect market rates appropriate to the CGU. Post-tax discount rates are
\n
used to calculate the VIU using the post-tax cash\ufb02ows. The post-tax discount rate is subsequently grossed up to pre-tax
\n
discount rate. The calculated VIU using post-tax and pre-tax discount rate is same.
\n
The goodwill allocated to each CGU and key assumptions used in determin
ing the recoverable amounts are set out below and
\n
are solely estimates for the purposes of assessing impa
irment of acqu
ired goodwill.
\n
Cash generating unit
\n
2022
2021
\n
Goodwill
\n
$mill
ion
\n
Pre Tax
\n
discount rates
\n
per cent
\n
Long-term
\n
forecast GDP
\n
growth rates
\n
per cent
\n
Goodwill
\n
$mill
ion
\n
Pre Tax
\n
discount rates
\n
per cent
\n
Long-term
\n
forecast GDP
\n
growth rates
\n
per cent
\n
Country CGUs
\n
Asia
1,032
1,073
\n
Hong Kong
357
12.4
1.7
357
10.6
2.5
\n
Taiwan
333
11.3
1.7
361
10.4
2.0
\n
Singapore
342
12.3
2.3
341
11.6
2.4
\n
Bangladesh
\u2013
24.3
5.4
14
15.0
7.3
\n
Africa & Middle East
85
92
\n
Pakistan
36
30.9
5.9
43
22.2
6.0
\n
Bahrain
49
16.6
0.7
49
13.1
3.0
\n
Global CGUs
1,354
1,430
\n
Global Private Banking
83
14.5
2.0
84
12.4
2.5
\n
Corporate, Commercial &
\n
Institut
ional Bank
ing
1,271
14.7
2.5
1,346
12.5
3.0
\n
2,471
2,595
\n
Bangladesh has had all the goodwill allocated to them written off, totalling $14 mill
ion. Th
is was primar
ily due to lower
\n
economic growth forecasts and higher discount rates. As a result, the carrying amount of Bangladesh CGU, which included
\n
goodwill, was greater than the recoverable amount (VIU of $83 mill
ion).
\n\n
411
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
17. Goodwill and intang
ible assets
continued
\n
The Group has performed sensit
iv
ity analysis on the key assumptions for each CGU\u2019s recoverable amount. Hong Kong CGU is
\n
considered sensit
ive to the key var
iables and any ind
iv
idual movements on the estimates (cash\ufb02ow, discount rate and GDP
\n
growth rate) up to the levels disclosed below would elim
inate the current headroom.
\n
CGU
\n
2022
\n
Goodwill
\n
$mill
ion
\n
Base Case
\n
Sensit
iv
it
ies
\n
GDP
Discount rate
Cash\ufb02ow
Cash\ufb02ow
\n
Cash-
\n
\ufb02ow
\n
Downside
\n
scenario
\n
Extreme
\n
downside
\n
scenario
\n
GDP -1%
GDP -1%
\n
DR +1%
DR +1%
\n
+1%
-1%
+1%
-1%
+10%
-10%
+20%
-20%
-30%
CF -10%
CF -20%
\n
Head-
\n
room
\n
$mill
ion
\n
Pre Tax
\n
Discount
\n
Rate
GDP
\n
Head-
\n
room
\n
$mill
ion
\n
Head-
\n
room
\n
$mill
ion
\n
Head-
\n
room
\n
$mill
ion
\n
Head-
\n
room
\n
$mill
ion
\n
Head-
\n
room
\n
$mill
ion
\n
Head-
\n
room
\n
$mill
ion
\n
Head-
\n
room
\n
$mill
ion
\n
Head-
\n
room
\n
$mill
ion
\n
Head-
\n
room
\n
$mill
ion
\n
Head-
\n
room
\n
$mill
ion
\n
Head-
\n
room
\n
$mill
ion
\n
Hong
\n
Kong
357
1,115
12.40%
1.66%
1,810
572
361
2,076
2,142
91
3,168
(935) (1,961)
(911)
(1,760)
\n
The table above represents reasonably possible scenarios that could occur if either; economic factors (which drive GDP rates
\n
and discount rates); country-specif
ic cash \ufb02ows; or a comb
inat
ion of both are d
ifferent from the assumptions used in the
\n
goodwill impa
irment assessment at 31 December 2022.
\n
For there to be no headroom, the discount rate will need to increase by 1.57 per cent. Sim
ilarly, the GDP rates w
ill need to
\n
decrease by 2.35 per cent and cash\ufb02ows would need to decrease by 10.89 per cent.
\n
Acquired intang
ibles
\n
These primar
ily compr
ise those items recognised as part of the acquis
it
ions of Union Bank (now amalgamated into Standard
\n
Chartered Bank (Pakistan) Lim
ited), Hs
inchu (now amalgamated into Standard Chartered Bank (Taiwan) Lim
ited), Pembroke,
\n
American Express Bank and ABSA\u2019s custody business in Africa. Maintenance intang
ible assets represent the d
ifference in the
\n
value between the contractual right under acquired leases to receive aircraft in a specif
ied ma
intenance condit
ion at the end of
\n
the lease and the actual physical condit
ion of the a
ircraft at the date of acquis
it
ion.
\n
The acquired intang
ibles are amort
ised over periods from four years to a maximum of 16 years. The constituents are as follows:
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Acquired intang
ibles compr
ise:
\n
Aircraft maintenance
5
5
\n
Brand names
1
1
\n
Customer relationsh
ips
1
3
\n
Licenses
12
11
\n
Net book value
19
20", "dimensions": { "concept": "ifrs-full:DisclosureOfGoodwillExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f91097": { "value": "17. Goodwill and intang
ible assets
\n
Accounting policy
\n
Goodwill
\n
Goodwill represents the excess of the cost of an acquis
it
ion over the fair value of the Group\u2019s share of the ident
i\ufb01able net
\n
assets and contingent liab
il
it
ies of the acqu
ired subsid
iary, assoc
iate or jo
int venture at the date of acqu
is
it
ion. Goodwill on
\n
acquis
it
ions of subsid
iar
ies is included in intang
ible assets. Goodw
ill on acquis
it
ions of associates is included in Investments in
\n
associates and jo
int ventures. Goodw
ill included in intang
ible assets
is assessed at each balance sheet date for impa
irment
\n
and carried at cost less any accumulated impa
irment losses. Ga
ins and losses on the disposal of an entity include the
\n
carrying amount of goodwill relating to the entity sold. Detailed calculations are performed based on forecasting expected
\n
cash \ufb02ows of the relevant cash generating units (CGUs) and discount
ing these at an appropr
iate discount rate, the
\n
determinat
ion of wh
ich requires the exercise of judgement. Goodwill is allocated to CGUs for the purpose of impa
irment
\n
testing. CGUs represent the lowest level with
in the Group wh
ich generate separate cash in\ufb02ows and at which the goodwill is
\n
monitored for internal management purposes. These are equal to or smaller than the Group\u2019s reportable segments (as set
\n
out in Note 2) as the Group views its reportable segments on a global basis. The major CGUs to which goodwill has been
\n
allocated are set out in the CGU table (page 410).
\n
Other accounting estimates and judgements
\n
The carrying amount of goodwill is based on the applicat
ion of judgements
includ
ing the bas
is of goodwill impa
irment
\n
calculation assumptions. Judgement is also applied in determinat
ion of CGUs.
\n
Estimates include forecasts used for determin
ing cash \ufb02ows for CGUs, the appropr
iate long-term growth rates to use and
\n
discount rates which factor in country risk-free rates and applicable risk premiums. The Group undertakes an annual
\n
assessment to evaluate whether the carrying value of goodwill is impa
ired. The est
imat
ion of future cash \ufb02ows and the level
\n
to which they are discounted is inherently uncertain and requires sign
i\ufb01cant judgement and
is subject to potential change
\n
over time.
\n
Acquired intang
ibles
\n
At the date of acquis
it
ion of a subsid
iary or assoc
iate, intang
ible assets wh
ich are deemed separable and that arise from
\n
contractual or other legal rights are capital
ised and
included with
in the net
ident
i\ufb01able assets acqu
ired. These intang
ible
\n
assets are in
it
ially measured at fair value, which re\ufb02ects market expectations of the probabil
ity that the future econom
ic
\n
bene\ufb01ts embodied in the asset will \ufb02ow to the entity and are amortised on the basis of their expected useful lives (4 to 16
\n
years). At each balance sheet date, these assets are assessed for ind
icators of
impa
irment. In the event that an asset\u2019s
\n
carrying amount is determined to be greater than its recoverable amount, the asset is written down immed
iately to the
\n
recoverable amount.
\n
Computer software
\n
Acquired computer software licences are capital
ised
if the princ
iples of development are met on the bas
is of the costs
\n
incurred to acquire and bring to use the specif
ic software.
\n
Internally generated software represents substantially all of the total software capital
ised. D
irect costs of the development
\n
of separately ident
i\ufb01able
internally generated software are capital
ised where
it is probable that future economic bene\ufb01ts
\n
attributable to the software will \ufb02ow from its use. These costs include staff remuneration costs such as salaries, statutory
\n
payments and share-based payments, materials, service providers and contractors provided their time is directly
\n
attributable to the software build. Costs incurred in the ongoing maintenance of software are expensed immed
iately when
\n
incurred. Internally generated software is amortised over each asset\u2019s useful life to a maximum of 10-years. On an annual
\n
basis software assets\u2019 residual values and useful lives are reviewed, includ
ing assess
ing for ind
icators of
impa
irment.
\n
Indicators of impa
irment
include loss of business relevance, obsolescence, exit of the business to which the software relates,
\n
technological changes, change in use of the asset, reduction in useful life, plans to reduce usage or scope.
\n
For capital
ised software, judgement
is required to determine which costs relate to research (expensed) and which costs
\n
relate to development (capital
ised). Further judgement
is required to determine the technical feasib
il
ity of completing the
\n
software such that it will be available for use. Estimates are used to determine how the software will generate probable
\n
future economic bene\ufb01ts: these estimates include cost savings, income increases, balance sheet improvements, improved
\n
functional
ity or
improved asset safeguarding.
\n
Software as a Service (SaaS) is a contractual arrangement that conveys the right to receive access to the supplier\u2019s software
\n
applicat
ion over the contract term. As such, the Group does not have control and as a result recogn
ises an operating
\n
expense for these costs over the contract term. Certain costs related to implementat
ion of the SaaS may meet the de\ufb01nit
ion
\n
of an intang
ible asset
in their own right if it is separately ident
i\ufb01able and control
is established. These costs are capital
ised
if
\n
it is expected to provide the Group with future economic bene\ufb01ts \ufb02owing from the underlying resource and the Group can
\n
restrict others from accessing those bene\ufb01ts.
410
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
17. Goodwill and intang
ible assets
continued
\n
2022
2021
\n
Goodwill
\n
$mill
ion
\n
Acquired
\n
intang
ibles
\n
$mill
ion
\n
Computer
\n
software
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Goodwill
\n
$mill
ion
\n
Acquired
\n
intang
ibles
\n
$mill
ion
\n
Computer
\n
software
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Cost
\n
At 1 January
2,595
457
4,464
7,516
2,617
473
3,682
6,772
\n
Exchange translation differences
(108)
(26)
(22)
(156)
(22)
(14)
(73)
(109)
\n
Addit
ions
\u2013
\u2013
1,096
1,096
\u2013
\u2013
989
989
\n
Impairment
(14)
\u2013
(7)
(21)
\u2013
\u2013
\u2013
\u2013
\n
Amounts written off
\u2013
(136)
(348)
(484)
\u2013
(2)
(134)
(136)
\n
Classif
ied as held for sale
(2)
\u2013
(5)
(7)
\u2013
\u2013
\u2013
\u2013
\n
At 31 December
2,471
295
5,178
7,944
2,595
457
4,464
7,516
\n
Provis
ion for amort
isat
ion
\n
At 1 January
\u2013
437
1,608
2,045
\u2013
451
1,258
1,709
\n
Exchange translation differences
\u2013
(29)
(11)
(40)
\u2013
(22)
(20)
(42)
\n
Amortisat
ion
\u2013
4
531
535
\u2013
8
461
469
\n
Impairment charge
\u2013
\u2013
5
5
\u2013
\u2013
4
4
\n
Amounts written off
\u2013
(136)
(331)
(467)
\u2013
\u2013
(95)
(95)
\n
Classif
ied as held for sale
\u2013
\u2013
(3)
(3)
\u2013
\u2013
\u2013
\u2013
\n
At 31 December
\u2013
276
1,799
2,075
\u2013
437
1,608
2,045
\n
Net book value
2,471
19
3,379
5,869
2,595
20
2,856
5,471
\n
At 31 December 2022, accumulated goodwill impa
irment losses
incurred from 1 January 2005 amounted to $3,331 mill
ion
\n
(31\u00a0December 2021: $3,317 mill
ion), of wh
ich $14 mill
ion was recogn
ised in 2022 (31 December 2021: Nil).
\n
Outcome of impa
irment assessment
\n
An annual assessment is made as to whether the current carrying value of goodwill is impa
ired. For the purposes of
impa
irment
\n
testing, goodwill is allocated at the date of acquis
it
ion to a CGU. Goodwill is considered to be impa
ired
if the carrying amount
\n
of the relevant CGU exceeds its recoverable amount. Indicators of impa
irment
include changes in the economic performance
\n
and outlook of the region includ
ing geopol
it
ical changes, changes
in market value of regional investments, large credit defaults
\n
and strategic decis
ions to ex
it certain regions. The recoverable amounts for all the CGUs were measured based on value in use
\n
(VIU). The calculation of VIU for each CGU is calculated using \ufb01ve-year cash\ufb02ow project
ions and an est
imated terminal value
\n
based on a perpetuity value after year \ufb01ve. The cash\ufb02ow project
ions are based on forecasts approved by management up to
\n
2027. The perpetuity terminal value amount is calculated using year \ufb01ve cash\ufb02ows using long-term GDP growth rates. All
\n
cash\ufb02ows are discounted using discount rates which re\ufb02ect market rates appropriate to the CGU. Post-tax discount rates are
\n
used to calculate the VIU using the post-tax cash\ufb02ows. The post-tax discount rate is subsequently grossed up to pre-tax
\n
discount rate. The calculated VIU using post-tax and pre-tax discount rate is same.
\n
The goodwill allocated to each CGU and key assumptions used in determin
ing the recoverable amounts are set out below and
\n
are solely estimates for the purposes of assessing impa
irment of acqu
ired goodwill.
\n
Cash generating unit
\n
2022
2021
\n
Goodwill
\n
$mill
ion
\n
Pre Tax
\n
discount rates
\n
per cent
\n
Long-term
\n
forecast GDP
\n
growth rates
\n
per cent
\n
Goodwill
\n
$mill
ion
\n
Pre Tax
\n
discount rates
\n
per cent
\n
Long-term
\n
forecast GDP
\n
growth rates
\n
per cent
\n
Country CGUs
\n
Asia
1,032
1,073
\n
Hong Kong
357
12.4
1.7
357
10.6
2.5
\n
Taiwan
333
11.3
1.7
361
10.4
2.0
\n
Singapore
342
12.3
2.3
341
11.6
2.4
\n
Bangladesh
\u2013
24.3
5.4
14
15.0
7.3
\n
Africa & Middle East
85
92
\n
Pakistan
36
30.9
5.9
43
22.2
6.0
\n
Bahrain
49
16.6
0.7
49
13.1
3.0
\n
Global CGUs
1,354
1,430
\n
Global Private Banking
83
14.5
2.0
84
12.4
2.5
\n
Corporate, Commercial &
\n
Institut
ional Bank
ing
1,271
14.7
2.5
1,346
12.5
3.0
\n
2,471
2,595
\n
Bangladesh has had all the goodwill allocated to them written off, totalling $14 mill
ion. Th
is was primar
ily due to lower
\n
economic growth forecasts and higher discount rates. As a result, the carrying amount of Bangladesh CGU, which included
\n
goodwill, was greater than the recoverable amount (VIU of $83 mill
ion).
\n\n
411
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
17. Goodwill and intang
ible assets
continued
\n
The Group has performed sensit
iv
ity analysis on the key assumptions for each CGU\u2019s recoverable amount. Hong Kong CGU is
\n
considered sensit
ive to the key var
iables and any ind
iv
idual movements on the estimates (cash\ufb02ow, discount rate and GDP
\n
growth rate) up to the levels disclosed below would elim
inate the current headroom.
\n
CGU
\n
2022
\n
Goodwill
\n
$mill
ion
\n
Base Case
\n
Sensit
iv
it
ies
\n
GDP
Discount rate
Cash\ufb02ow
Cash\ufb02ow
\n
Cash-
\n
\ufb02ow
\n
Downside
\n
scenario
\n
Extreme
\n
downside
\n
scenario
\n
GDP -1%
GDP -1%
\n
DR +1%
DR +1%
\n
+1%
-1%
+1%
-1%
+10%
-10%
+20%
-20%
-30%
CF -10%
CF -20%
\n
Head-
\n
room
\n
$mill
ion
\n
Pre Tax
\n
Discount
\n
Rate
GDP
\n
Head-
\n
room
\n
$mill
ion
\n
Head-
\n
room
\n
$mill
ion
\n
Head-
\n
room
\n
$mill
ion
\n
Head-
\n
room
\n
$mill
ion
\n
Head-
\n
room
\n
$mill
ion
\n
Head-
\n
room
\n
$mill
ion
\n
Head-
\n
room
\n
$mill
ion
\n
Head-
\n
room
\n
$mill
ion
\n
Head-
\n
room
\n
$mill
ion
\n
Head-
\n
room
\n
$mill
ion
\n
Head-
\n
room
\n
$mill
ion
\n
Hong
\n
Kong
357
1,115
12.40%
1.66%
1,810
572
361
2,076
2,142
91
3,168
(935) (1,961)
(911)
(1,760)
\n
The table above represents reasonably possible scenarios that could occur if either; economic factors (which drive GDP rates
\n
and discount rates); country-specif
ic cash \ufb02ows; or a comb
inat
ion of both are d
ifferent from the assumptions used in the
\n
goodwill impa
irment assessment at 31 December 2022.
\n
For there to be no headroom, the discount rate will need to increase by 1.57 per cent. Sim
ilarly, the GDP rates w
ill need to
\n
decrease by 2.35 per cent and cash\ufb02ows would need to decrease by 10.89 per cent.
\n
Acquired intang
ibles
\n
These primar
ily compr
ise those items recognised as part of the acquis
it
ions of Union Bank (now amalgamated into Standard
\n
Chartered Bank (Pakistan) Lim
ited), Hs
inchu (now amalgamated into Standard Chartered Bank (Taiwan) Lim
ited), Pembroke,
\n
American Express Bank and ABSA\u2019s custody business in Africa. Maintenance intang
ible assets represent the d
ifference in the
\n
value between the contractual right under acquired leases to receive aircraft in a specif
ied ma
intenance condit
ion at the end of
\n
the lease and the actual physical condit
ion of the a
ircraft at the date of acquis
it
ion.
\n
The acquired intang
ibles are amort
ised over periods from four years to a maximum of 16 years. The constituents are as follows:
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Acquired intang
ibles compr
ise:
\n
Aircraft maintenance
5
5
\n
Brand names
1
1
\n
Customer relationsh
ips
1
3
\n
Licenses
12
11
\n
Net book value
19
20", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f91104": { "value": "Accounting policy \n
Goodwill
\n
Goodwill represents the excess of the cost of an acquis
it
ion over the fair value of the Group\u2019s share of the ident
i\ufb01able net
\n
assets and contingent liab
il
it
ies of the acqu
ired subsid
iary, assoc
iate or jo
int venture at the date of acqu
is
it
ion. Goodwill on
\n
acquis
it
ions of subsid
iar
ies is included in intang
ible assets. Goodw
ill on acquis
it
ions of associates is included in Investments in
\n
associates and jo
int ventures. Goodw
ill included in intang
ible assets
is assessed at each balance sheet date for impa
irment
\n
and carried at cost less any accumulated impa
irment losses. Ga
ins and losses on the disposal of an entity include the
\n
carrying amount of goodwill relating to the entity sold. Detailed calculations are performed based on forecasting expected
\n
cash \ufb02ows of the relevant cash generating units (CGUs) and discount
ing these at an appropr
iate discount rate, the
\n
determinat
ion of wh
ich requires the exercise of judgement. Goodwill is allocated to CGUs for the purpose of impa
irment
\n
testing. CGUs represent the lowest level with
in the Group wh
ich generate separate cash in\ufb02ows and at which the goodwill is
\n
monitored for internal management purposes. These are equal to or smaller than the Group\u2019s reportable segments (as set
\n
out in Note 2) as the Group views its reportable segments on a global basis. The major CGUs to which goodwill has been
\n
allocated are set out in the CGU table (page 410).
\n
Other accounting estimates and judgements
\n
The carrying amount of goodwill is based on the applicat
ion of judgements
includ
ing the bas
is of goodwill impa
irment
\n
calculation assumptions. Judgement is also applied in determinat
ion of CGUs.
\n
Estimates include forecasts used for determin
ing cash \ufb02ows for CGUs, the appropr
iate long-term growth rates to use and
\n
discount rates which factor in country risk-free rates and applicable risk premiums. The Group undertakes an annual
\n
assessment to evaluate whether the carrying value of goodwill is impa
ired. The est
imat
ion of future cash \ufb02ows and the level
\n
to which they are discounted is inherently uncertain and requires sign
i\ufb01cant judgement and
is subject to potential change
\n
over time.
\n
Acquired intang
ibles
\n
At the date of acquis
it
ion of a subsid
iary or assoc
iate, intang
ible assets wh
ich are deemed separable and that arise from
\n
contractual or other legal rights are capital
ised and
included with
in the net
ident
i\ufb01able assets acqu
ired. These intang
ible
\n
assets are in
it
ially measured at fair value, which re\ufb02ects market expectations of the probabil
ity that the future econom
ic
\n
bene\ufb01ts embodied in the asset will \ufb02ow to the entity and are amortised on the basis of their expected useful lives (4 to 16
\n
years). At each balance sheet date, these assets are assessed for ind
icators of
impa
irment. In the event that an asset\u2019s
\n
carrying amount is determined to be greater than its recoverable amount, the asset is written down immed
iately to the
\n
recoverable amount.
\n
Computer software
\n
Acquired computer software licences are capital
ised
if the princ
iples of development are met on the bas
is of the costs
\n
incurred to acquire and bring to use the specif
ic software.
\n
Internally generated software represents substantially all of the total software capital
ised. D
irect costs of the development
\n
of separately ident
i\ufb01able
internally generated software are capital
ised where
it is probable that future economic bene\ufb01ts
\n
attributable to the software will \ufb02ow from its use. These costs include staff remuneration costs such as salaries, statutory
\n
payments and share-based payments, materials, service providers and contractors provided their time is directly
\n
attributable to the software build. Costs incurred in the ongoing maintenance of software are expensed immed
iately when
\n
incurred. Internally generated software is amortised over each asset\u2019s useful life to a maximum of 10-years. On an annual
\n
basis software assets\u2019 residual values and useful lives are reviewed, includ
ing assess
ing for ind
icators of
impa
irment.
\n
Indicators of impa
irment
include loss of business relevance, obsolescence, exit of the business to which the software relates,
\n
technological changes, change in use of the asset, reduction in useful life, plans to reduce usage or scope.
\n
For capital
ised software, judgement
is required to determine which costs relate to research (expensed) and which costs
\n
relate to development (capital
ised). Further judgement
is required to determine the technical feasib
il
ity of completing the
\n
software such that it will be available for use. Estimates are used to determine how the software will generate probable
\n
future economic bene\ufb01ts: these estimates include cost savings, income increases, balance sheet improvements, improved
\n
functional
ity or
improved asset safeguarding.
\n
Software as a Service (SaaS) is a contractual arrangement that conveys the right to receive access to the supplier\u2019s software
\n
applicat
ion over the contract term. As such, the Group does not have control and as a result recogn
ises an operating
\n
expense for these costs over the contract term. Certain costs related to implementat
ion of the SaaS may meet the de\ufb01nit
ion
\n
of an intang
ible asset
in their own right if it is separately ident
i\ufb01able and control
is established. These costs are capital
ised
if
\n
it is expected to provide the Group with future economic bene\ufb01ts \ufb02owing from the underlying resource and the Group can
\nrestrict others from accessing those bene\ufb01ts.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f91107": { "value": "Goodwill \n
Goodwill represents the excess of the cost of an acquis
it
ion over the fair value of the Group\u2019s share of the ident
i\ufb01able net
\n
assets and contingent liab
il
it
ies of the acqu
ired subsid
iary, assoc
iate or jo
int venture at the date of acqu
is
it
ion. Goodwill on
\n
acquis
it
ions of subsid
iar
ies is included in intang
ible assets. Goodw
ill on acquis
it
ions of associates is included in Investments in
\n
associates and jo
int ventures. Goodw
ill included in intang
ible assets
is assessed at each balance sheet date for impa
irment
\n
and carried at cost less any accumulated impa
irment losses. Ga
ins and losses on the disposal of an entity include the
\n
carrying amount of goodwill relating to the entity sold. Detailed calculations are performed based on forecasting expected
\n
cash \ufb02ows of the relevant cash generating units (CGUs) and discount
ing these at an appropr
iate discount rate, the
\n
determinat
ion of wh
ich requires the exercise of judgement. Goodwill is allocated to CGUs for the purpose of impa
irment
\n
testing. CGUs represent the lowest level with
in the Group wh
ich generate separate cash in\ufb02ows and at which the goodwill is
\n
monitored for internal management purposes. These are equal to or smaller than the Group\u2019s reportable segments (as set
\n
out in Note 2) as the Group views its reportable segments on a global basis. The major CGUs to which goodwill has been
\nallocated are set out in the CGU table (page 410).", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f91291": { "value": "
2022
2021
\n
Goodwill
\n
$mill
ion
\n
Acquired
\n
intang
ibles
\n
$mill
ion
\n
Computer
\n
software
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Goodwill
\n
$mill
ion
\n
Acquired
\n
intang
ibles
\n
$mill
ion
\n
Computer
\n
software
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Cost
\n
At 1 January
2,595
457
4,464
7,516
2,617
473
3,682
6,772
\n
Exchange translation differences
(108)
(26)
(22)
(156)
(22)
(14)
(73)
(109)
\n
Addit
ions
\u2013
\u2013
1,096
1,096
\u2013
\u2013
989
989
\n
Impairment
(14)
\u2013
(7)
(21)
\u2013
\u2013
\u2013
\u2013
\n
Amounts written off
\u2013
(136)
(348)
(484)
\u2013
(2)
(134)
(136)
\n
Classif
ied as held for sale
(2)
\u2013
(5)
(7)
\u2013
\u2013
\u2013
\u2013
\n
At 31 December
2,471
295
5,178
7,944
2,595
457
4,464
7,516
\n
Provis
ion for amort
isat
ion
\n
At 1 January
\u2013
437
1,608
2,045
\u2013
451
1,258
1,709
\n
Exchange translation differences
\u2013
(29)
(11)
(40)
\u2013
(22)
(20)
(42)
\n
Amortisat
ion
\u2013
4
531
535
\u2013
8
461
469
\n
Impairment charge
\u2013
\u2013
5
5
\u2013
\u2013
4
4
\n
Amounts written off
\u2013
(136)
(331)
(467)
\u2013
\u2013
(95)
(95)
\n
Classif
ied as held for sale
\u2013
\u2013
(3)
(3)
\u2013
\u2013
\u2013
\u2013
\n
At 31 December
\u2013
276
1,799
2,075
\u2013
437
1,608
2,045
\n
Net book value
2,471
19
3,379
5,869
2,595
20
2,856
5,471
2022
\n
Premises
\n
$mill
ion
\n
Equipment
\n
$mill
ion
\n
Operating
\n
lease assets
\n
$mill
ion
\n
Leased
\n
premises
\n
assets
\n
$mill
ion
\n
Leased
\n
equipment
\n
assets
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Cost or valuation
\n
At 1 January
1,980
901
4,248
1,854
33
9,016
\n
Exchange translation differences
(90)
(65)
\u2013
(111)
(4)
(270)
\n
Addit
ions
\n
1
\n
87
124
624
339
1
1,175
\n
Disposals and fully depreciated assets
\n
written off
\n
2
\n
(142)
(102)
(452)
(425)
(1)
(1,122)
\n
Transfers to assets held for sale
(62)
(18)
\u2013
(5)
\u2013
(85)
\n
As at 31 December
1,773
840
4,420
1,652
29
8,714
\n
Depreciat
ion
\n
Accumulated at 1 January
795
611
1,155
819
20
3,400
\n
Exchange translation differences
(39)
(39)
\u2013
(33)
(3)
(114)
\n
Charge for the year
76
116
202
250
7
651
\n
Impairment charge
1
\u2013
40
9
\u2013
50
\n
Attributable to assets sold, transferred
\n
or written off
\n
2
\n
(125)
(101)
(212)
(313)
\u2013
(751)
\n
Transfers to assets held for sale
(30)
(12)
\u2013
(2)
\u2013
(44)
\n
Accumulated at 31 December
678
575
1,185
730
24
3,192
\n
Net book amount at 31 December
1,095
265
3,235
922
5
5,522
2021
\n
Premises
\n
$mill
ion
\n
Equipment
\n
$mill
ion
\n
Operating
\n
lease assets
\n
$mill
ion
\n
Leased
\n
premises
\n
assets
\n
$mill
ion
\n
Leased
\n
equipment
\n
assets
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Cost or valuation
\n
At 1 January
2,048
874
5,233
1,577
31
9,763
\n
Exchange translation differences
(63)
(13)
\u2013
(38)
(1)
(115)
\n
Addit
ions\u00b9
107
135
110
373
4
729
\n
Disposals and fully depreciated assets
\n
written off\u00b2
(100)
(95)
(1,095)
(58)
(1)
(1,349)
\n
Transfers to assets held for sale
(12)
\u2013
\u2013
\u2013
\u2013
(12)
\n
As at 31 December
1,980
901
4,248
1,854
33
9,016
\n
Depreciat
ion
\n
Accumulated at 1 January
770
594
1,336
536
12
3,248
\n
Exchange translation differences
(15)
(14)
\u2013
(15)
\u2013
(44)
\n
Charge for the year
74
121
213
296
8
712
\n
Impairment charge
\u2013
\u2013
64
42
\u2013
106
\n
Attributable to assets sold, transferred
\n
or written off\u00b2
(31)
(90)
(458)
(40)
\u2013
(619)
\n
Transfers to assets held for sale
(3)
\u2013
\u2013
\u2013
\u2013
(3)
\n
Accumulated at 31 December
795
611
1,155
819
20
3,400
\n
Net book amount at 31 December
1,185
290
3,093
1,035
13
5,616
", "dimensions": { "concept": "ifrs-full:DisclosureOfDepreciationAndAmortisationExpenseExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f91480": { "value": "An annual assessment is made as to whether the current carrying value of goodwill is impa
ired. For the purposes of
impa
irment
\n
testing, goodwill is allocated at the date of acquis
it
ion to a CGU. Goodwill is considered to be impa
ired
if the carrying amount
\n
of the relevant CGU exceeds its recoverable amount. Indicators of impa
irment
include changes in the economic performance
\n
and outlook of the region includ
ing geopol
it
ical changes, changes
in market value of regional investments, large credit defaults
\n
and strategic decis
ions to ex
it certain regions. The recoverable amounts for all the CGUs were measured based on value in use
\n
(VIU). The calculation of VIU for each CGU is calculated using \ufb01ve-year cash\ufb02ow project
ions and an est
imated terminal value
\n
based on a perpetuity value after year \ufb01ve. The cash\ufb02ow project
ions are based on forecasts approved by management up to
\n
2027. The perpetuity terminal value amount is calculated using year \ufb01ve cash\ufb02ows using long-term GDP growth rates. All
\n
cash\ufb02ows are discounted using discount rates which re\ufb02ect market rates appropriate to the CGU. Post-tax discount rates are
\n
used to calculate the VIU using the post-tax cash\ufb02ows. The post-tax discount rate is subsequently grossed up to pre-tax
\n
discount rate. The calculated VIU using post-tax and pre-tax discount rate is same.
\n
The goodwill allocated to each CGU and key assumptions used in determin
ing the recoverable amounts are set out below and
\n
are solely estimates for the purposes of assessing impa
irment of acqu
ired goodwill.
\n
Cash generating unit
\n
2022
2021
\n
Goodwill
\n
$mill
ion
\n
Pre Tax
\n
discount rates
\n
per cent
\n
Long-term
\n
forecast GDP
\n
growth rates
\n
per cent
\n
Goodwill
\n
$mill
ion
\n
Pre Tax
\n
discount rates
\n
per cent
\n
Long-term
\n
forecast GDP
\n
growth rates
\n
per cent
\n
Country CGUs
\n
Asia
1,032
1,073
\n
Hong Kong
357
12.4
1.7
357
10.6
2.5
\n
Taiwan
333
11.3
1.7
361
10.4
2.0
\n
Singapore
342
12.3
2.3
341
11.6
2.4
\n
Bangladesh
\u2013
24.3
5.4
14
15.0
7.3
\n
Africa & Middle East
85
92
\n
Pakistan
36
30.9
5.9
43
22.2
6.0
\n
Bahrain
49
16.6
0.7
49
13.1
3.0
\n
Global CGUs
1,354
1,430
\n
Global Private Banking
83
14.5
2.0
84
12.4
2.5
\n
Corporate, Commercial &
\n
Institut
ional Bank
ing
1,271
14.7
2.5
1,346
12.5
3.0
\n
2,471
2,595", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationForIndividualAssetOrCashgeneratingUnitWithSignificantAmountOfGoodwillOrIntangibleAssetsWithIndefiniteUsefulLivesExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f91835": { "value": "18. Property, plant and equipment \n
Accounting policy
\n
All property, plant and equipment is stated at cost less accumulated depreciat
ion and
impa
irment losses. Cost
includes
\n
expenditure that is directly attributable to the acquis
it
ion of the assets. Subsequent costs are included in the asset\u2019s carrying
\n
amount or are recognised as a separate asset, as appropriate, only when it is probable that future economic bene\ufb01ts
\n
associated with the item will \ufb02ow to the Group and the cost of the item can be measured reliably.
\n
At each balance sheet date the assets\u2019 residual values and useful lives are reviewed, and adjusted if appropriate, includ
ing
\n
assessing for ind
icators of
impa
irment. In the event that an asset\u2019s carry
ing amount is determined to be greater than its
\n
recoverable amount, the asset is written down to the recoverable amount. Gains and losses on disposals are included in the
\n
income statement.
\n
Repairs and maintenance are charged to the income statement during the \ufb01nanc
ial per
iod in which they are incurred.
\n
Land and build
ings compr
ise mainly branches and of\ufb01ces. Freehold land is not depreciated although it is subject to
\n
impa
irment test
ing.
\n
Depreciat
ion on other assets
is calculated using the straight-line method to allocate their cost to their residual values over
\n
their estimated useful lives, as follows:
\n
\u2022 Owned premises
\u2022
up to 50 years
\n
\u2022 Leasehold premises
\u2022
up to 50 years
\n
\u2022 Leasehold improvements
\u2022
shorter of remain
ing lease term and 10 years
\n
\u2022
Equipment and motor vehicles
\u2022
three to 15 years
\n
\u2022 Aircraft
\u2022
up to 18 years
\n
\u2022 Ships
\u2022
up to 15 years
\n
Where the Group is a lessee of a right-of-use asset, the leased assets are capital
ised and
included in Property, plant and
\n
equipment with a corresponding liab
il
ity to the lessor recognised in Other liab
il
it
ies,
in accordance with the Group\u2019s leased
\n
assets accounting policy in Note 19.
\n
All other repairs and maintenance are charged to the income statement during the \ufb01nanc
ial per
iod in which they are
\n
incurred.
\n
Other accounting estimates and judgements
\n
The carrying amount of the Group\u2019s aircraft leasing portfolio is based on the applicat
ion of judgement and est
imates to
\n
determine the most appropriate recoverable amount for each aircraft when assessing for impa
irment. Est
imates involve the
\n
appropriate cash \ufb02ows, discount rates and residual values used in determin
ing a value-
in-use for aircraft, and judgement is
\n
required in determin
ing the appropr
iate observable third-party valuations to use for assessing current market value.
\n
2022
\n
Premises
\n
$mill
ion
\n
Equipment
\n
$mill
ion
\n
Operating
\n
lease assets
\n
$mill
ion
\n
Leased
\n
premises
\n
assets
\n
$mill
ion
\n
Leased
\n
equipment
\n
assets
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Cost or valuation
\n
At 1 January
1,980
901
4,248
1,854
33
9,016
\n
Exchange translation differences
(90)
(65)
\u2013
(111)
(4)
(270)
\n
Addit
ions
\n
1
\n
87
124
624
339
1
1,175
\n
Disposals and fully depreciated assets
\n
written off
\n
2
\n
(142)
(102)
(452)
(425)
(1)
(1,122)
\n
Transfers to assets held for sale
(62)
(18)
\u2013
(5)
\u2013
(85)
\n
As at 31 December
1,773
840
4,420
1,652
29
8,714
\n
Depreciat
ion
\n
Accumulated at 1 January
795
611
1,155
819
20
3,400
\n
Exchange translation differences
(39)
(39)
\u2013
(33)
(3)
(114)
\n
Charge for the year
76
116
202
250
7
651
\n
Impairment charge
1
\u2013
40
9
\u2013
50
\n
Attributable to assets sold, transferred
\n
or written off
\n
2
\n
(125)
(101)
(212)
(313)
\u2013
(751)
\n
Transfers to assets held for sale
(30)
(12)
\u2013
(2)
\u2013
(44)
\n
Accumulated at 31 December
678
575
1,185
730
24
3,192
\n
Net book amount at 31 December
1,095
265
3,235
922
5
5,522
\n
1
Refer to the cash \ufb02ow statement under cash \ufb02ows from invest
ing act
iv
it
ies section for the purchase of property, plant and equipment during the year of
\n
$835\u00a0mill
ion on page 344
\n
2
Disposals for property, plant and equipment during the year of $343 mill
ion
in the cash \ufb02ow statement would include the gains and losses incurred as part of other
\n
operating income (Note 6) on disposal of assets during the year and the net book value disposed
413
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
18. Property, plant and equipment
continued
\n
2021
\n
Premises
\n
$mill
ion
\n
Equipment
\n
$mill
ion
\n
Operating
\n
lease assets
\n
$mill
ion
\n
Leased
\n
premises
\n
assets
\n
$mill
ion
\n
Leased
\n
equipment
\n
assets
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Cost or valuation
\n
At 1 January
2,048
874
5,233
1,577
31
9,763
\n
Exchange translation differences
(63)
(13)
\u2013
(38)
(1)
(115)
\n
Addit
ions\u00b9
107
135
110
373
4
729
\n
Disposals and fully depreciated assets
\n
written off\u00b2
(100)
(95)
(1,095)
(58)
(1)
(1,349)
\n
Transfers to assets held for sale
(12)
\u2013
\u2013
\u2013
\u2013
(12)
\n
As at 31 December
1,980
901
4,248
1,854
33
9,016
\n
Depreciat
ion
\n
Accumulated at 1 January
770
594
1,336
536
12
3,248
\n
Exchange translation differences
(15)
(14)
\u2013
(15)
\u2013
(44)
\n
Charge for the year
74
121
213
296
8
712
\n
Impairment charge
\u2013
\u2013
64
42
\u2013
106
\n
Attributable to assets sold, transferred
\n
or written off\u00b2
(31)
(90)
(458)
(40)
\u2013
(619)
\n
Transfers to assets held for sale
(3)
\u2013
\u2013
\u2013
\u2013
(3)
\n
Accumulated at 31 December
795
611
1,155
819
20
3,400
\n
Net book amount at 31 December
1,185
290
3,093
1,035
13
5,616
\n
1
Refer to the cash \ufb02ow statement under cash \ufb02ows from invest
ing act
iv
it
ies section for the purchase of property, plant and equipment during the year of
\n
$352\u00a0mill
ion on page 344
\n
2
Disposals for property, plant and equipment during the year of $816 mill
ion
in the cash \ufb02ow statement would include the gains and losses incurred as part of other
\n
operating income (Note 6) on disposal of assets during the year and the net book value disposed
\n
Operating lease assets
\n
The operating lease assets subsection of property, plant and equipment is the Group\u2019s aircraft operating leasing business,
\n
consist
ing of 99 commerc
ial aircraft at 31 December 2022, of which 97 are narrow-bodies and 2 are wide-bodies. The leases are
\n
classif
ied as operat
ing leases as they do not transfer substantially all the risks and rewards inc
idental to the ownersh
ip of the
\n
assets, and rental income from operating lease assets is disclosed in Note 6. At 31 December 2022, these assets had a net book
\n
value of $3,235 mill
ion (31 December 2021: $3,093 m
ill
ion).
\n
Under these leases the lessee is responsible for the maintenance and servic
ing of the a
ircraft during the lease term while the
\n
Group receives rental income and assumes the risks of the residual value of the aircraft at the end of the lease. Init
ial lease terms
\n
range in length up to 12 years, while the average remain
ing lease term at 31 December 2022
is approximately \ufb01ve years. By
\n
varying the lease terms the effects of changes in cyclical market condit
ions at the t
ime aircraft become elig
ible for re-lease are
\n
mit
igated. The Group w
ill look at entering into a lease extension with exist
ing lessees well
in advance of lease expiry in order to
\n
min
im
ise the risk of aircraft downtime and aircraft transit
ion costs. A
ircraft may also be sold from time to time to manage the
\n
composit
ion and average age of the \ufb02eet.
\n
A series of stress sensit
iv
it
ies conducted on the narrow-body portfol
io highl
ight the two b
iggest risks remain either an increase
\n
in the discount rate, as the major
ity of the leased portfol
io is valued on a VIU basis, or a substantial number of airl
ine cl
ients
\n
defaulting. A sensit
iv
ity test was performed on the narrow-body portfolio assuming a discount rate increase of 50 basis points
\n
from a base range of 4.50%-5.75% (31 December 2021: 4.50%-5.50%), which resulted in a possible increase in impa
irment of
\n
$34\u00a0mill
ion.
\n
A further sensit
iv
ity test considered that the lessees with lower credit ratings defaulted on their current leases. This scenario
\n
would result in a possible increase in impa
irment of $34 m
ill
ion.
\n
2022
\n
Min
imum lease
\n
receivables
\n
under operating
\n
leases
\n
falling due:
\n
$mill
ion
\n
2021
\n
Min
imum lease
\n
receivables
\n
under operating
\n
leases
\n
falling due:
\n
$mill
ion
\n
With
in one year
358
330
\n
One to two years
337
285
\n
Two to three years
286
251
\n
Three to four years
242
197
\n
Four to \ufb01ve years
211
153
\n
After \ufb01ve years
546
411
\n
1,980
1,627", "dimensions": { "concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f91839": { "value": "Accounting policy \n
All property, plant and equipment is stated at cost less accumulated depreciat
ion and
impa
irment losses. Cost
includes
\n
expenditure that is directly attributable to the acquis
it
ion of the assets. Subsequent costs are included in the asset\u2019s carrying
\n
amount or are recognised as a separate asset, as appropriate, only when it is probable that future economic bene\ufb01ts
\n
associated with the item will \ufb02ow to the Group and the cost of the item can be measured reliably.
\n
At each balance sheet date the assets\u2019 residual values and useful lives are reviewed, and adjusted if appropriate, includ
ing
\n
assessing for ind
icators of
impa
irment. In the event that an asset\u2019s carry
ing amount is determined to be greater than its
\n
recoverable amount, the asset is written down to the recoverable amount. Gains and losses on disposals are included in the
\n
income statement.
\n
Repairs and maintenance are charged to the income statement during the \ufb01nanc
ial per
iod in which they are incurred.
\n
Land and build
ings compr
ise mainly branches and of\ufb01ces. Freehold land is not depreciated although it is subject to
\n
impa
irment test
ing.
\n
Depreciat
ion on other assets
is calculated using the straight-line method to allocate their cost to their residual values over
\n
their estimated useful lives, as follows:
\n
\u2022 Owned premises
\u2022
up to 50 years
\n
\u2022 Leasehold premises
\u2022
up to 50 years
\n
\u2022 Leasehold improvements
\u2022
shorter of remain
ing lease term and 10 years
\n
\u2022
Equipment and motor vehicles
\u2022
three to 15 years
\n
\u2022 Aircraft
\u2022
up to 18 years
\n
\u2022 Ships
\u2022
up to 15 years
\n
Where the Group is a lessee of a right-of-use asset, the leased assets are capital
ised and
included in Property, plant and
\n
equipment with a corresponding liab
il
ity to the lessor recognised in Other liab
il
it
ies,
in accordance with the Group\u2019s leased
\n
assets accounting policy in Note 19.
\n
All other repairs and maintenance are charged to the income statement during the \ufb01nanc
ial per
iod in which they are
\n
incurred.
\n
Other accounting estimates and judgements
\n
The carrying amount of the Group\u2019s aircraft leasing portfolio is based on the applicat
ion of judgement and est
imates to
\n
determine the most appropriate recoverable amount for each aircraft when assessing for impa
irment. Est
imates involve the
\n
appropriate cash \ufb02ows, discount rates and residual values used in determin
ing a value-
in-use for aircraft, and judgement is
\n
required in determin
ing the appropr
iate observable third-party valuations to use for assessing current market value.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f92344": { "value": "19. Leased assets \n
Accounting policy
\n
The Group assesses whether a contract is a lease in scope of this policy by determin
ing whether the contract g
ives it the right
\n
to use a specif
ied underly
ing physical asset for a lease term greater than 12 months, unless the underlying asset is of low
\n
value.
\n
Where the Group is a lessee and the lease is deemed in scope, it recognises a liab
il
ity equal to the present value of lease
\n
payments over the lease term, discounted using the incremental borrowing rate applicable in the economic environment of
\n
the lease. The liab
il
ity is recognised in \u2018Other liab
il
it
ies\u2019. A correspond
ing right-of-use asset equal to the liab
il
ity, adjusted for
\n
any lease payments made at or before the commencement date, is recognised in \u2018Property, plant and equipment\u2019. The lease
\n
term includes any extension options contained in the contract that the Group is reasonably certain it will exercise.
\n
The Group subsequently depreciates the right-of-use asset using the straight-line method over the lease term and measures
\n
the lease liab
il
ity using the effective interest method. Depreciat
ion on the asset
is recognised in \u2018Depreciat
ion and
\n
amortisat
ion\u2019, and
interest on the lease liab
il
ity is recognised in \u2018Interest expense\u2019.
\n
If a leased premise, or a physically dist
inct port
ion of a premise such as an ind
iv
idual \ufb02oor, is deemed by management to be
\n
surplus to the Group\u2019s needs and action has been taken to abandon the space before the lease expires, this is considered an
\n
ind
icator of
impa
irment. An
impa
irment loss
is recognised if the right-of-use asset, or portion thereof, has a carrying value in
\n
excess of its value-in-use when taking into account factors such as the abil
ity and l
ikel
ihood of obta
in
ing a subtenant.
\n
The judgements in determin
ing lease balances are the determ
inat
ion of whether the Group
is reasonably certain that it will
\n
exercise extension options present in lease contracts. On in
it
ial recognit
ion, the Group cons
iders a range of characterist
ics
\n
such as premises function, regional trends and the term remain
ing on the lease to determ
ine whether it is reasonably certain
\n
that a contractual right to extend a lease will be exercised. Where a change in assumption is con\ufb01rmed by the local property
\n
management team, a remeasurement is performed in the Group-managed vendor system.
\n
The estimates are the determinat
ion of
incremental borrowing rates in the respective economic environments. The Group
\n
uses third-party broker quotes to estimate its USD cost of senior unsecured borrowing, then uses cross currency swap pric
ing
\n
informat
ion to determ
ine the equivalent cost of borrowing in other currencies. If it is not possible to estimate an incremental
\n
borrowing rate through this process, other proxies such as local government bond yields are used.
\n
The Group primar
ily enters lease contracts that grant
it the right to use premises such as of\ufb01ce build
ings and reta
il branches.
\n
Exist
ing lease l
iab
il
it
ies may change
in future periods due to changes in assumptions or decis
ions to exerc
ise lease renewal or
\n
terminat
ion opt
ions, changes in payments due to renegotiat
ions of market rental rates as perm
itted by those contracts and
\n
changes to payments due to rent being contractually linked to an in\ufb02at
ion
index. In general the re-measurement of a lease
\n
liab
il
ity under these circumstances leads to an equal change to the right-of-use asset balance, with no immed
iate effect on the
\n
income statement.
\n
The total cash out\ufb02ow during the year for premises and equipment leases was $310 mill
ion (2021: $331 m
ill
ion).
\n
The total expense during the year in respect of leases with a term less than or equal to 12 months was $nil (2021: $1 mill
ion).
\n
The right-of-use asset balances and depreciat
ion charges are d
isclosed in Note 18. The lease liab
il
ity balances are disclosed in
\n
Note 23 and the interest expense on lease liab
il
it
ies
is disclosed in Note 3.
\n
Maturity analysis
\n
The maturity pro\ufb01le for lease liab
il
it
ies assoc
iated with leased premises and equipment assets is as follows:
\n
2022
\n
One year
\n
or less
\n
$mill
ion
\n
Between
\n
one year and
\n
two years
\n
$mill
ion
\n
Between
\n
two years and
\n
\ufb01ve years
\n
$mill
ion
\n
More than
\n
\ufb01ve years
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Other liab
il
it
ies \u2013 lease l
iab
il
it
ies
272
239
437
310
1,258
\n
2021
\n
One year
\n
or less
\n
$mill
ion
\n
Between
\n
one year and
\n
two years
\n
$mill
ion
\n
Between
\n
two years and
\n
\ufb01ve years
\n
$mill
ion
\n
More than
\n
\ufb01ve years
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Other liab
il
it
ies \u2013 lease l
iab
il
it
ies
293
247
521
175
1,236", "dimensions": { "concept": "ifrs-full:DisclosureOfLeasesExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f92348": { "value": "Accounting policy \n
The Group assesses whether a contract is a lease in scope of this policy by determin
ing whether the contract g
ives it the right
\n
to use a specif
ied underly
ing physical asset for a lease term greater than 12 months, unless the underlying asset is of low
\n
value.
\n
Where the Group is a lessee and the lease is deemed in scope, it recognises a liab
il
ity equal to the present value of lease
\n
payments over the lease term, discounted using the incremental borrowing rate applicable in the economic environment of
\n
the lease. The liab
il
ity is recognised in \u2018Other liab
il
it
ies\u2019. A correspond
ing right-of-use asset equal to the liab
il
ity, adjusted for
\n
any lease payments made at or before the commencement date, is recognised in \u2018Property, plant and equipment\u2019. The lease
\n
term includes any extension options contained in the contract that the Group is reasonably certain it will exercise.
\n
The Group subsequently depreciates the right-of-use asset using the straight-line method over the lease term and measures
\n
the lease liab
il
ity using the effective interest method. Depreciat
ion on the asset
is recognised in \u2018Depreciat
ion and
\n
amortisat
ion\u2019, and
interest on the lease liab
il
ity is recognised in \u2018Interest expense\u2019.
\n
If a leased premise, or a physically dist
inct port
ion of a premise such as an ind
iv
idual \ufb02oor, is deemed by management to be
\n
surplus to the Group\u2019s needs and action has been taken to abandon the space before the lease expires, this is considered an
\n
ind
icator of
impa
irment. An
impa
irment loss
is recognised if the right-of-use asset, or portion thereof, has a carrying value in
\n
excess of its value-in-use when taking into account factors such as the abil
ity and l
ikel
ihood of obta
in
ing a subtenant.
\n
The judgements in determin
ing lease balances are the determ
inat
ion of whether the Group
is reasonably certain that it will
\n
exercise extension options present in lease contracts. On in
it
ial recognit
ion, the Group cons
iders a range of characterist
ics
\n
such as premises function, regional trends and the term remain
ing on the lease to determ
ine whether it is reasonably certain
\n
that a contractual right to extend a lease will be exercised. Where a change in assumption is con\ufb01rmed by the local property
\n
management team, a remeasurement is performed in the Group-managed vendor system.
\n
The estimates are the determinat
ion of
incremental borrowing rates in the respective economic environments. The Group
\n
uses third-party broker quotes to estimate its USD cost of senior unsecured borrowing, then uses cross currency swap pric
ing
\n
informat
ion to determ
ine the equivalent cost of borrowing in other currencies. If it is not possible to estimate an incremental
\nborrowing rate through this process, other proxies such as local government bond yields are used.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f92562": { "value": "20. Other assets \n
Accounting policy
\n
Refer to Note 13 Financ
ial
instruments for the relevant accounting policy.
\n
Commodit
ies represent phys
ical holdings where the Group has title and exposure to the Market Risk associated with the
\n
holding.
\n
Commodit
ies are fa
ir valued with the fair value derived from observable spot or short-term futures prices from relevant
\n
exchanges.
\n
Other assets include:
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Financ
ial assets held at amort
ized cost (Note 13):
\n
Hong Kong SAR Government certif
icates of
indebtedness (Note 23)\u00b9
7,106
7,284
\n
Cash collateral
12,515
9,217
\n
Acceptances and endorsements
5,264
4,930
\n
Unsettled trades and other \ufb01nancial assets
14,410
18,637
\n
39,295
40,068
\n
Non-\ufb01nancial assets:
\n
Commodit
ies and em
iss
ions cert
if
icates\u00b2
10,598
9,265
\n
Other assets
490
599
\n
50,383
49,932
\n
1
The Hong Kong SAR Government certif
icates of
indebtedness are subordinated to the claims of other parties in respect of bank notes issued
\n
2
Commodit
ies and em
iss
ions cert
if
icates are carr
ied at fair value less costs to sell, $6 bill
ion (31 December 2021: $5.7 b
ill
ion) are class
if
ied as Level 1 and $4.6 b
ill
ion
\n
are classif
ied as Level 2 (31 December 2021: $3.6 b
ill
ion) ", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherAssetsExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f92566": { "value": "Accounting policy \n
Refer to Note 13 Financ
ial
instruments for the relevant accounting policy.
\n
Commodit
ies represent phys
ical holdings where the Group has title and exposure to the Market Risk associated with the
\n
holding.
\n
Commodit
ies are fa
ir valued with the fair value derived from observable spot or short-term futures prices from relevant
\nexchanges.", "dimensions": { "concept": "stan:DescriptionOfAccountingPolicyForOtherAssetsExplanatoryPolicyTextBlock", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f92645": { "value": "21. Assets held for sale and associated liab
il
it
ies
\n
Accounting Policy
\n
Non-current assets are classif
ied as held for sale and measured at the lower of the
ir carrying amount and fair value less cost
\n
to sell when:
\n
a) Their carrying amounts will be recovered princ
ipally through sale.
\n
b) They are available for immed
iate sale
in their present condit
ion; and
\n
c) Their sale is highly probable.
\n
Immediately before the in
it
ial classif
icat
ion as held for sale, the carrying amounts of the assets are measured in accordance
\n
with the applicable accounting polic
ies related to the asset or l
iab
il
ity before reclassif
icat
ion as held for sale. Upon
\n
reclassif
icat
ion property, plant and equipment are measured at the lower of their carrying amount and fair value less costs to
\n
sell. Financ
ial
instruments continue to be measured per the accounting polic
ies
in Note 13 Financ
ial
instruments.
\n
The assets below have been presented as held for sale following the approval of Group management and the transactions are
\n
expected to complete in 2023.
\n
Following a decis
ion by the Board of D
irectors to exit certain markets in Africa & Middle East, the assets and liab
il
it
ies of those
\n
markets have been moved to \u2018Held for sale\u2019.
\n
Assets held for sale
\n
The \ufb01nancial assets reported below are class
if
ied under Level 1 $345 m
ill
ion (2021: N
il), Level 2 $946mill
ion (2021: N
il) and Level 3
\n
$100 mill
ion (2021: $95 m
ill
ion).
\n\n
416
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
21. Assets held for sale and associated liab
il
it
ies
continued
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Financ
ial assets held at fa
ir value through pro\ufb01t or loss
3
43
\n
Loans and advances to customers
\u2013
20
\n
Equity shares
2
23
\n
Derivat
ive \ufb01nancial
instruments \u2013 Assets
1
\u2013
\n
Financ
ial assets held at amort
ised cost
1,388
52
\n
Cash and balances at central banks
423
\u2013
\n
Loans and advances to banks
81
\u2013
\n
Loans and advances to customers
508
52
\n
Debt securit
ies held at amort
ised cost
376
\u2013
\n
Goodwill and intang
ible assets
4
\u2013
\n
Property, plant and equipment
174
239
\n
Vessels\u00b9
133
230
\n
Others
41
9
\n
Others
56
\u2013
\n
1,625
334
\n
1 Disposal of property, plant and equipment classif
ied under assets held for sale dur
ing 2022 was $79 mill
ion (2021: $149 m
ill
ion).
\n
Liab
il
it
ies held for sale
\n
The \ufb01nancial l
iab
il
it
ies reported below are class
if
ied under Level 1 $402m
ill
ion (2021: N
il) and Level 2 $833\u00a0mill
ion (2021: N
il).
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Financ
ial l
iab
il
it
ies held at fa
ir value through pro\ufb01t or loss
5
\u2013
\n
Derivat
ive \ufb01nancial
instruments
5
\u2013
\n
Financ
ial l
iab
il
it
ies held at amort
ised cost
1,230
\u2013
\n
Deposits by banks
17
\u2013
\n
Customer accounts
1,213
\u2013
\n
Other liab
il
it
ies
64
\u2013
\n
Provis
ions for l
iab
il
it
ies and charges
8
\u2013
\n
1,307
\u2013", "dimensions": { "concept": "ifrs-full:DisclosureOfNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f92646": { "value": "21. Assets held for sale and associated liab
il
it
ies
\n
Accounting Policy
\n
Non-current assets are classif
ied as held for sale and measured at the lower of the
ir carrying amount and fair value less cost
\n
to sell when:
\n
a) Their carrying amounts will be recovered princ
ipally through sale.
\n
b) They are available for immed
iate sale
in their present condit
ion; and
\n
c) Their sale is highly probable.
\n
Immediately before the in
it
ial classif
icat
ion as held for sale, the carrying amounts of the assets are measured in accordance
\n
with the applicable accounting polic
ies related to the asset or l
iab
il
ity before reclassif
icat
ion as held for sale. Upon
\n
reclassif
icat
ion property, plant and equipment are measured at the lower of their carrying amount and fair value less costs to
\n
sell. Financ
ial
instruments continue to be measured per the accounting polic
ies
in Note 13 Financ
ial
instruments.
\n
The assets below have been presented as held for sale following the approval of Group management and the transactions are
\n
expected to complete in 2023.
\n
Following a decis
ion by the Board of D
irectors to exit certain markets in Africa & Middle East, the assets and liab
il
it
ies of those
\n
markets have been moved to \u2018Held for sale\u2019.
\n
Assets held for sale
\n
The \ufb01nancial assets reported below are class
if
ied under Level 1 $345 m
ill
ion (2021: N
il), Level 2 $946mill
ion (2021: N
il) and Level 3
\n
$100 mill
ion (2021: $95 m
ill
ion).
\n\n
416
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
21. Assets held for sale and associated liab
il
it
ies
continued
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Financ
ial assets held at fa
ir value through pro\ufb01t or loss
3
43
\n
Loans and advances to customers
\u2013
20
\n
Equity shares
2
23
\n
Derivat
ive \ufb01nancial
instruments \u2013 Assets
1
\u2013
\n
Financ
ial assets held at amort
ised cost
1,388
52
\n
Cash and balances at central banks
423
\u2013
\n
Loans and advances to banks
81
\u2013
\n
Loans and advances to customers
508
52
\n
Debt securit
ies held at amort
ised cost
376
\u2013
\n
Goodwill and intang
ible assets
4
\u2013
\n
Property, plant and equipment
174
239
\n
Vessels\u00b9
133
230
\n
Others
41
9
\n
Others
56
\u2013
\n
1,625
334
\n
1 Disposal of property, plant and equipment classif
ied under assets held for sale dur
ing 2022 was $79 mill
ion (2021: $149 m
ill
ion).
\n
Liab
il
it
ies held for sale
\n
The \ufb01nancial l
iab
il
it
ies reported below are class
if
ied under Level 1 $402m
ill
ion (2021: N
il) and Level 2 $833\u00a0mill
ion (2021: N
il).
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Financ
ial l
iab
il
it
ies held at fa
ir value through pro\ufb01t or loss
5
\u2013
\n
Derivat
ive \ufb01nancial
instruments
5
\u2013
\n
Financ
ial l
iab
il
it
ies held at amort
ised cost
1,230
\u2013
\n
Deposits by banks
17
\u2013
\n
Customer accounts
1,213
\u2013
\n
Other liab
il
it
ies
64
\u2013
\n
Provis
ions for l
iab
il
it
ies and charges
8
\u2013
\n
1,307
\u2013", "dimensions": { "concept": "stan:DisclosureOfAssetsHeldForSaleAndAssociatedLiabilitiesExplanatoryTextBlock", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f92654": { "value": "Accounting Policy \n
Non-current assets are classif
ied as held for sale and measured at the lower of the
ir carrying amount and fair value less cost
\n
to sell when:
\n
a) Their carrying amounts will be recovered princ
ipally through sale.
\n
b) They are available for immed
iate sale
in their present condit
ion; and
\n
c) Their sale is highly probable.
\n
Immediately before the in
it
ial classif
icat
ion as held for sale, the carrying amounts of the assets are measured in accordance
\n
with the applicable accounting polic
ies related to the asset or l
iab
il
ity before reclassif
icat
ion as held for sale. Upon
\n
reclassif
icat
ion property, plant and equipment are measured at the lower of their carrying amount and fair value less costs to
\n
sell. Financ
ial
instruments continue to be measured per the accounting polic
ies
in Note 13 Financ
ial
instruments.", "dimensions": { "concept": "stan:DescriptionOfAccountingPolicyForAssetsHeldForSaleAndAssociatedLiabilitiesExplanatoryPolicyTextBlock", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f92655": { "value": "Accounting Policy \n
Non-current assets are classif
ied as held for sale and measured at the lower of the
ir carrying amount and fair value less cost
\n
to sell when:
\n
a) Their carrying amounts will be recovered princ
ipally through sale.
\n
b) They are available for immed
iate sale
in their present condit
ion; and
\n
c) Their sale is highly probable.
\n
Immediately before the in
it
ial classif
icat
ion as held for sale, the carrying amounts of the assets are measured in accordance
\n
with the applicable accounting polic
ies related to the asset or l
iab
il
ity before reclassif
icat
ion as held for sale. Upon
\n
reclassif
icat
ion property, plant and equipment are measured at the lower of their carrying amount and fair value less costs to
\n
sell. Financ
ial
instruments continue to be measured per the accounting polic
ies
in Note 13 Financ
ial
instruments.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f92888": { "value": "22. Debt securit
ies
in issue
\n
Accounting policy
\n
Refer to Note 13 Financ
ial
instruments for the relevant accounting policy.
\n
2022
2021
\n
Certif
icates
\n
of deposit
\n
of $100,000
\n
or more
\n
$mill
ion
\n
Other debt
\n
securit
ies
\n
in issue
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Certif
icates
\n
of deposit
\n
of $100,000
\n
or more
\n
$mill
ion
\n
Other debt
\n
securit
ies
\n
in issue
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Debt securit
ies
in issue
23,457
37,785
61,242
23,896
37,397
61,293
\n
Debt securit
ies
in issue included with
in:
\n
Financ
ial l
iab
il
it
ies held at fa
ir value
\n
through pro\ufb01t or loss (Note13)
\u2013
8,572
8,572
\u2013
5,597
5,597
\n
Total debt securit
ies
in issue
23,457
46,357
69,814
23,896
42,994
66,890
\n
In 2022, the Company issued a total of $5.2 bill
ion sen
ior notes for general business purposes of the Group as shown below:
\n
Securit
ies
$mill
ion
\n
CNH 1,100 mill
ion \ufb01xed rate sen
ior notes due 2026 (callable 2025)
158
\n
$1,250 mill
ion \ufb01xed rate sen
ior notes due 2028 (callable 2027)
1,250
\n
$1,000 mill
ion \ufb01xed rate sen
ior notes due 2026 (callable 2025)
1,000
\n
$500 mill
ion \ufb02oat
ing rate senior notes due 2026 (callable 2025)
500
\n
SGD 255 mill
ion \ufb01xed rate sen
ior notes due 2033 (callable 2032)
190
\n
HKD 800 mill
ion \ufb01xed rate sen
ior notes due 2025 (callable 2024)
102
\n
$1,000 mill
ion \ufb01xed rate sen
ior notes due 2025 (callable 2024)
1,000
\n
$1,000 mill
ion \ufb01xed rate sen
ior notes due 2028 (callable 2027)
1,000
\n
Total Senior Notes issued
5,200
\n
In 2021, the Company issued a total of $6.8 bill
ion sen
ior notes for general business purposes of the Group as shown below:
\n
Securit
ies
$mill
ion
\n
$500 mill
ion \ufb01xed rate sen
ior notes due 2025 (callable 2024)
500
\n
$500 mill
ion \ufb02oat
ing rate senior notes due 2025 (callable 2024)\u00b9
500
\n
EUR 500 mill
ion \ufb01xed rate sen
ior notes due 2029 (callable 2028)
569
\n
$1,000 mill
ion \ufb01xed rate sen
ior notes due 2025 (callable 2024)
1,000
\n
$1,250 mill
ion \ufb01xed rate sen
ior notes due 2032 (callable 2031)
1,250
\n
$1,500 mill
ion \ufb01xed rate sen
ior notes due 2025 (callable 2024)
1,500
\n
$1,500 mill
ion \ufb01xed rate sen
ior notes due 2027 (callable 2026)
1,500
\n
Total Senior Notes issued
6,819
\n
1
These notes will be subject to remediat
ion under
interest rate benchmark reform. Please refer to Note 13 for further informat
ion on th
is ", "dimensions": { "concept": "ifrs-full:DisclosureOfDebtSecuritiesExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f92894": { "value": "Accounting policy \n
Refer to Note 13 Financ
ial
instruments for the relevant accounting policy.", "dimensions": { "concept": "stan:DescriptionOfAccountingPolicyForDebtSecuritiesInIssueExplanatoryPolicyTextBlock", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f93069": { "value": "23. Other liab
il
it
ies
\n
Accounting policy
\n
Refer to Note 13 Financ
ial
instruments for the relevant accounting policy for \ufb01nanc
ial l
iab
il
it
ies, Note 19 Leased assets for the
\n
accounting policy for leases, and Note 31 Share-based payments for the accounting policy for cash-settled share-based
\n
payments.
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Financ
ial l
iab
il
it
ies held at amort
ised cost (Note 13)
\n
Notes in circulat
ion
\n
1
\n
7,106
7,284
\n
Acceptances and endorsements
5,264
4,930
\n
Cash collateral
9,206
8,092
\n
Property leases\u00b2
1,029
1,170
\n
Equipment leases\u00b2
8
17
\n
Unsettled trades and other \ufb01nancial l
iab
il
it
ies
20,302
21,940
\n
42,915
43,433
\n
Non-\ufb01nancial l
iab
il
it
ies
\n
Cash-settled share-based payments
81
55
\n
Other liab
il
it
ies
531
826
\n
43,527
44,314
\n
1
Hong Kong currency notes in circulat
ion of $7,106 m
ill
ion (2021: $7,284 m
ill
ion) that are secured by the Government of Hong Kong SAR cert
if
icates of
indebtedness
\n
of the same amount included in Other assets (Note 20)
\n
2
Other \ufb01nancial l
iab
il
it
ies
include the present value of lease liab
il
it
ies, as requ
ired by IFRS 16 from 1 January 2019; refer to Note 19", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f93076": { "value": "Accounting policy \n
Refer to Note 13 Financ
ial
instruments for the relevant accounting policy for \ufb01nanc
ial l
iab
il
it
ies, Note 19 Leased assets for the
\n
accounting policy for leases, and Note 31 Share-based payments for the accounting policy for cash-settled share-based
\npayments.", "dimensions": { "concept": "stan:DescriptionOfAccountingPolicyForOtherLiabilitiesExplanatoryPolicyTextBlock", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f93168": { "value": "24. Provis
ions for l
iab
il
it
ies and charges
\n
Accounting policy
\n
The Group recognises a provis
ion for a present legal or construct
ive obligat
ion result
ing from a past event when it is more
\n
likely than not that it will be required to transfer economic bene\ufb01ts to settle the obligat
ion and the amount of the obl
igat
ion
\n
can be estimated reliably. Where a liab
il
ity arises based on partic
ipat
ion in a market at a specif
ied date, the obl
igat
ion
is
\n
recognised in the \ufb01nanc
ial statements on that date and
is not accrued over the period.
\n
Other accounting estimates and judgements
\n
The recognit
ion and measurement of prov
is
ions for l
iab
il
it
ies and charges requ
ires sign
i\ufb01cant judgement and the use of
\n
estimates about uncertain future condit
ions or events.
\n
Estimates include the best estimate of the probabil
ity of out\ufb02ow of econom
ic resources, cost of settling a provis
ion and
\n
tim
ing of settlement. Judgements are requ
ired for inherently uncertain areas such as legal decis
ions (
includ
ing external
\n
advice obtained), and outcome of regulator reviews.
\n
2022
2021
\n
Provis
ion
\n
for credit
\n
commitments
\n
$mill
ion
\n
Other
\n
provis
ions
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Provis
ion
\n
for credit
\n
commitments
\n
$mill
ion
\n
Other
\n
provis
ions
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
At 1 January
346
107
453
367
99
466
\n
Exchange translation differences
(39)
(2)
(41)
9
(1)
8
\n
Transfer
\u2013
\u2013
\u2013
\u2013
2
2
\n
Charge against pro\ufb01t
(27)
69
42
(30)
54
24
\n
Provis
ions ut
il
ised
\u2013
(71)
(71)
\u2013
(47)
(47)
\n
At 31 December
280
103
383
346
107
453
\n
Provis
ion for cred
it commitment comprises those undrawn contractually committed facil
it
ies where there is doubt as to the
\n
borrowers\u2019 abil
ity to meet the
ir repayment obligat
ions.
\n
Other provis
ions
include $14 mill
ion (31 December 2021: $17 m
ill
ion) recogn
ised for certain contracts with suppliers for which the
\n
unavoidable costs of meeting the obligat
ions exceed the econom
ic bene\ufb01ts expected to be received. It is expected that the
\n
costs will be incurred over the next 5 years.
\n
Other provis
ions cons
ist mainly of provis
ions for legal cla
ims and regulatory and enforcement invest
igat
ions and proceedings.", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f93169": { "value": "24. Provis
ions for l
iab
il
it
ies and charges
\n
Accounting policy
\n
The Group recognises a provis
ion for a present legal or construct
ive obligat
ion result
ing from a past event when it is more
\n
likely than not that it will be required to transfer economic bene\ufb01ts to settle the obligat
ion and the amount of the obl
igat
ion
\n
can be estimated reliably. Where a liab
il
ity arises based on partic
ipat
ion in a market at a specif
ied date, the obl
igat
ion
is
\n
recognised in the \ufb01nanc
ial statements on that date and
is not accrued over the period.
\n
Other accounting estimates and judgements
\n
The recognit
ion and measurement of prov
is
ions for l
iab
il
it
ies and charges requ
ires sign
i\ufb01cant judgement and the use of
\n
estimates about uncertain future condit
ions or events.
\n
Estimates include the best estimate of the probabil
ity of out\ufb02ow of econom
ic resources, cost of settling a provis
ion and
\n
tim
ing of settlement. Judgements are requ
ired for inherently uncertain areas such as legal decis
ions (
includ
ing external
\n
advice obtained), and outcome of regulator reviews.
\n
2022
2021
\n
Provis
ion
\n
for credit
\n
commitments
\n
$mill
ion
\n
Other
\n
provis
ions
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Provis
ion
\n
for credit
\n
commitments
\n
$mill
ion
\n
Other
\n
provis
ions
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
At 1 January
346
107
453
367
99
466
\n
Exchange translation differences
(39)
(2)
(41)
9
(1)
8
\n
Transfer
\u2013
\u2013
\u2013
\u2013
2
2
\n
Charge against pro\ufb01t
(27)
69
42
(30)
54
24
\n
Provis
ions ut
il
ised
\u2013
(71)
(71)
\u2013
(47)
(47)
\n
At 31 December
280
103
383
346
107
453
\n
Provis
ion for cred
it commitment comprises those undrawn contractually committed facil
it
ies where there is doubt as to the
\n
borrowers\u2019 abil
ity to meet the
ir repayment obligat
ions.
\n
Other provis
ions
include $14 mill
ion (31 December 2021: $17 m
ill
ion) recogn
ised for certain contracts with suppliers for which the
\n
unavoidable costs of meeting the obligat
ions exceed the econom
ic bene\ufb01ts expected to be received. It is expected that the
\n
costs will be incurred over the next 5 years.
\n
Other provis
ions cons
ist mainly of provis
ions for legal cla
ims and regulatory and enforcement invest
igat
ions and proceedings.", "dimensions": { "concept": "ifrs-full:DisclosureOfProvisionsExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f93179": { "value": "Accounting policy \n
The Group recognises a provis
ion for a present legal or construct
ive obligat
ion result
ing from a past event when it is more
\n
likely than not that it will be required to transfer economic bene\ufb01ts to settle the obligat
ion and the amount of the obl
igat
ion
\n
can be estimated reliably. Where a liab
il
ity arises based on partic
ipat
ion in a market at a specif
ied date, the obl
igat
ion
is
\n
recognised in the \ufb01nanc
ial statements on that date and
is not accrued over the period.
\n
Other accounting estimates and judgements
\n
The recognit
ion and measurement of prov
is
ions for l
iab
il
it
ies and charges requ
ires sign
i\ufb01cant judgement and the use of
\n
estimates about uncertain future condit
ions or events.
\n
Estimates include the best estimate of the probabil
ity of out\ufb02ow of econom
ic resources, cost of settling a provis
ion and
\n
tim
ing of settlement. Judgements are requ
ired for inherently uncertain areas such as legal decis
ions (
includ
ing external
\nadvice obtained), and outcome of regulator reviews.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f93180": { "value": "Accounting policy \n
The Group recognises a provis
ion for a present legal or construct
ive obligat
ion result
ing from a past event when it is more
\n
likely than not that it will be required to transfer economic bene\ufb01ts to settle the obligat
ion and the amount of the obl
igat
ion
\n
can be estimated reliably. Where a liab
il
ity arises based on partic
ipat
ion in a market at a specif
ied date, the obl
igat
ion
is
\n
recognised in the \ufb01nanc
ial statements on that date and
is not accrued over the period.
\n
Other accounting estimates and judgements
\n
The recognit
ion and measurement of prov
is
ions for l
iab
il
it
ies and charges requ
ires sign
i\ufb01cant judgement and the use of
\n
estimates about uncertain future condit
ions or events.
\n
Estimates include the best estimate of the probabil
ity of out\ufb02ow of econom
ic resources, cost of settling a provis
ion and
\n
tim
ing of settlement. Judgements are requ
ired for inherently uncertain areas such as legal decis
ions (
includ
ing external
\nadvice obtained), and outcome of regulator reviews.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForExpensesExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f93347": { "value": "25. Contingent liab
il
it
ies and comm
itments
\n
Accounting policy
\n
Financ
ial guarantee contracts and loan comm
itments
\n
The Group issues \ufb01nanc
ial guarantee contracts and loan comm
itments in return for fees. Financ
ial guarantee contracts and
\n
any loan commitments issued at below-market interest rates are in
it
ially recognised at their fair value as a \ufb01nanc
ial l
iab
il
ity,
\n
and subsequently measured at the higher of the in
it
ial value less the cumulative amount of income recognised in accordance
\n
with the princ
iples of IFRS 15 Revenue from Contracts w
ith Customers and their expected credit loss provis
ion. Loan
\n
commitments may be designated at fair value through pro\ufb01t or loss where that is the business model under which such
\n
contracts are held. Notional values of \ufb01nanc
ial guarantee contracts and loan comm
itments are disclosed in the table below.
\n
Financ
ial guarantees, trade cred
its and irrevocable letters of credit are the notional values of contracts issued by the Group\u2019s
\n
Transaction Banking business for which an obligat
ion to make a payment has not ar
isen at the reporting date. Transaction
\n
Banking will issue contracts to clients and counterparties of clients, whereby in the event the holder of the contract is not
\n
paid, the Group will reimburse the holder of the contract for the actual \ufb01nanc
ial loss suffered. These contracts have var
ious
\n
legal forms such as letters of credit, guarantee contracts and performance bonds. The contracts are issued to facil
itate trade
\n
through export and import business, provide guarantees to \ufb01nanc
ial
inst
itut
ions where the Group has a local presence, as
\n
well as guaranteeing project \ufb01nanc
ing
involv
ing large construct
ion projects undertaken by sovereigns and corporates. The
\n
contracts may contain performance clauses which require the counterparty performing services or provid
ing goods to meet
\n
certain condit
ions before a r
ight to payment is achieved, however the Group does not guarantee this performance. The
\n
Group will only guarantee the credit of the counterparty paying for the services or goods.
\n
Commitments are where the Group has con\ufb01rmed its intent
ion to prov
ide funds to a customer or on behalf of a customer
\n
under prespecif
ied terms and cond
it
ions
in the form of loans, overdrafts, future guarantees whether cancellable or not and
\n
the Group has not made payments at the balance sheet date; those instruments are included in these \ufb01nanc
ial statements
\n
as commitments. Commitments and contingent liab
il
it
ies are generally cons
idered on demand as the Group may have to
\n
honour them, or the client may draw down at any time.
\n
Capital commitments are contractual commitments the Group has entered into to purchase non-\ufb01nanc
ial assets.
\n
The table below shows the contract or underlying princ
ipal amounts of unmatured off-balance sheet transact
ions at the
\n
balance sheet date. The contract or underlying princ
ipal amounts
ind
icate the volume of bus
iness outstanding and do not
\n
represent amounts at risk.
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Financ
ial guarantees and trade cred
its
\n
Financ
ial guarantees, trade cred
its and irrevocable letters of credit
60,410
58,535
\n
60,410
58,535
\n
Commitments
\n
Undrawn formal standby facil
it
ies, credit lines and other commitments to lend
\n
One year and over
69,597
69,542
\n
Less than one year
31,688
27,306
\n
Uncondit
ionally cancellable
67,383
61,675
\n
168,668
158,523
\n
Capital commitments
\n
Contracted capital expenditure approved by the directors but not provided for in these accounts\u00b9
257
124
\n
1
Of which the Group has commitments totalling $209 mill
ion to purchase a
ircraft for delivery in 2023 (2021: $96 mill
ion). Pre-del
ivery payments of $40 mill
ion
\n
(2021: $26 mill
ion) have been made
in respect of these commitments
\n
As set out in Note 26, the Group has contingent liab
il
it
ies
in respect of certain legal and regulatory matters for which it is not
\n
practicable to estimate the \ufb01nanc
ial
impact as there are many factors that may affect the range of possible outcomes.", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f93348": { "value": "25. Contingent liab
il
it
ies and comm
itments
\n
Accounting policy
\n
Financ
ial guarantee contracts and loan comm
itments
\n
The Group issues \ufb01nanc
ial guarantee contracts and loan comm
itments in return for fees. Financ
ial guarantee contracts and
\n
any loan commitments issued at below-market interest rates are in
it
ially recognised at their fair value as a \ufb01nanc
ial l
iab
il
ity,
\n
and subsequently measured at the higher of the in
it
ial value less the cumulative amount of income recognised in accordance
\n
with the princ
iples of IFRS 15 Revenue from Contracts w
ith Customers and their expected credit loss provis
ion. Loan
\n
commitments may be designated at fair value through pro\ufb01t or loss where that is the business model under which such
\n
contracts are held. Notional values of \ufb01nanc
ial guarantee contracts and loan comm
itments are disclosed in the table below.
\n
Financ
ial guarantees, trade cred
its and irrevocable letters of credit are the notional values of contracts issued by the Group\u2019s
\n
Transaction Banking business for which an obligat
ion to make a payment has not ar
isen at the reporting date. Transaction
\n
Banking will issue contracts to clients and counterparties of clients, whereby in the event the holder of the contract is not
\n
paid, the Group will reimburse the holder of the contract for the actual \ufb01nanc
ial loss suffered. These contracts have var
ious
\n
legal forms such as letters of credit, guarantee contracts and performance bonds. The contracts are issued to facil
itate trade
\n
through export and import business, provide guarantees to \ufb01nanc
ial
inst
itut
ions where the Group has a local presence, as
\n
well as guaranteeing project \ufb01nanc
ing
involv
ing large construct
ion projects undertaken by sovereigns and corporates. The
\n
contracts may contain performance clauses which require the counterparty performing services or provid
ing goods to meet
\n
certain condit
ions before a r
ight to payment is achieved, however the Group does not guarantee this performance. The
\n
Group will only guarantee the credit of the counterparty paying for the services or goods.
\n
Commitments are where the Group has con\ufb01rmed its intent
ion to prov
ide funds to a customer or on behalf of a customer
\n
under prespecif
ied terms and cond
it
ions
in the form of loans, overdrafts, future guarantees whether cancellable or not and
\n
the Group has not made payments at the balance sheet date; those instruments are included in these \ufb01nanc
ial statements
\n
as commitments. Commitments and contingent liab
il
it
ies are generally cons
idered on demand as the Group may have to
\n
honour them, or the client may draw down at any time.
\n
Capital commitments are contractual commitments the Group has entered into to purchase non-\ufb01nanc
ial assets.
\n
The table below shows the contract or underlying princ
ipal amounts of unmatured off-balance sheet transact
ions at the
\n
balance sheet date. The contract or underlying princ
ipal amounts
ind
icate the volume of bus
iness outstanding and do not
\n
represent amounts at risk.
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Financ
ial guarantees and trade cred
its
\n
Financ
ial guarantees, trade cred
its and irrevocable letters of credit
60,410
58,535
\n
60,410
58,535
\n
Commitments
\n
Undrawn formal standby facil
it
ies, credit lines and other commitments to lend
\n
One year and over
69,597
69,542
\n
Less than one year
31,688
27,306
\n
Uncondit
ionally cancellable
67,383
61,675
\n
168,668
158,523
\n
Capital commitments
\n
Contracted capital expenditure approved by the directors but not provided for in these accounts\u00b9
257
124
\n
1
Of which the Group has commitments totalling $209 mill
ion to purchase a
ircraft for delivery in 2023 (2021: $96 mill
ion). Pre-del
ivery payments of $40 mill
ion
\n
(2021: $26 mill
ion) have been made
in respect of these commitments
\n
As set out in Note 26, the Group has contingent liab
il
it
ies
in respect of certain legal and regulatory matters for which it is not
\n
practicable to estimate the \ufb01nanc
ial
impact as there are many factors that may affect the range of possible outcomes.", "dimensions": { "concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f93349": { "value": "25. Contingent liab
il
it
ies and comm
itments
\n
Accounting policy
\n
Financ
ial guarantee contracts and loan comm
itments
\n
The Group issues \ufb01nanc
ial guarantee contracts and loan comm
itments in return for fees. Financ
ial guarantee contracts and
\n
any loan commitments issued at below-market interest rates are in
it
ially recognised at their fair value as a \ufb01nanc
ial l
iab
il
ity,
\n
and subsequently measured at the higher of the in
it
ial value less the cumulative amount of income recognised in accordance
\n
with the princ
iples of IFRS 15 Revenue from Contracts w
ith Customers and their expected credit loss provis
ion. Loan
\n
commitments may be designated at fair value through pro\ufb01t or loss where that is the business model under which such
\n
contracts are held. Notional values of \ufb01nanc
ial guarantee contracts and loan comm
itments are disclosed in the table below.
\n
Financ
ial guarantees, trade cred
its and irrevocable letters of credit are the notional values of contracts issued by the Group\u2019s
\n
Transaction Banking business for which an obligat
ion to make a payment has not ar
isen at the reporting date. Transaction
\n
Banking will issue contracts to clients and counterparties of clients, whereby in the event the holder of the contract is not
\n
paid, the Group will reimburse the holder of the contract for the actual \ufb01nanc
ial loss suffered. These contracts have var
ious
\n
legal forms such as letters of credit, guarantee contracts and performance bonds. The contracts are issued to facil
itate trade
\n
through export and import business, provide guarantees to \ufb01nanc
ial
inst
itut
ions where the Group has a local presence, as
\n
well as guaranteeing project \ufb01nanc
ing
involv
ing large construct
ion projects undertaken by sovereigns and corporates. The
\n
contracts may contain performance clauses which require the counterparty performing services or provid
ing goods to meet
\n
certain condit
ions before a r
ight to payment is achieved, however the Group does not guarantee this performance. The
\n
Group will only guarantee the credit of the counterparty paying for the services or goods.
\n
Commitments are where the Group has con\ufb01rmed its intent
ion to prov
ide funds to a customer or on behalf of a customer
\n
under prespecif
ied terms and cond
it
ions
in the form of loans, overdrafts, future guarantees whether cancellable or not and
\n
the Group has not made payments at the balance sheet date; those instruments are included in these \ufb01nanc
ial statements
\n
as commitments. Commitments and contingent liab
il
it
ies are generally cons
idered on demand as the Group may have to
\n
honour them, or the client may draw down at any time.
\n
Capital commitments are contractual commitments the Group has entered into to purchase non-\ufb01nanc
ial assets.
\n
The table below shows the contract or underlying princ
ipal amounts of unmatured off-balance sheet transact
ions at the
\n
balance sheet date. The contract or underlying princ
ipal amounts
ind
icate the volume of bus
iness outstanding and do not
\n
represent amounts at risk.
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Financ
ial guarantees and trade cred
its
\n
Financ
ial guarantees, trade cred
its and irrevocable letters of credit
60,410
58,535
\n
60,410
58,535
\n
Commitments
\n
Undrawn formal standby facil
it
ies, credit lines and other commitments to lend
\n
One year and over
69,597
69,542
\n
Less than one year
31,688
27,306
\n
Uncondit
ionally cancellable
67,383
61,675
\n
168,668
158,523
\n
Capital commitments
\n
Contracted capital expenditure approved by the directors but not provided for in these accounts\u00b9
257
124
\n
1
Of which the Group has commitments totalling $209 mill
ion to purchase a
ircraft for delivery in 2023 (2021: $96 mill
ion). Pre-del
ivery payments of $40 mill
ion
\n
(2021: $26 mill
ion) have been made
in respect of these commitments
\n
As set out in Note 26, the Group has contingent liab
il
it
ies
in respect of certain legal and regulatory matters for which it is not
\n
practicable to estimate the \ufb01nanc
ial
impact as there are many factors that may affect the range of possible outcomes.", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f93359": { "value": "Accounting policy \n
Financ
ial guarantee contracts and loan comm
itments
\n
The Group issues \ufb01nanc
ial guarantee contracts and loan comm
itments in return for fees. Financ
ial guarantee contracts and
\n
any loan commitments issued at below-market interest rates are in
it
ially recognised at their fair value as a \ufb01nanc
ial l
iab
il
ity,
\n
and subsequently measured at the higher of the in
it
ial value less the cumulative amount of income recognised in accordance
\n
with the princ
iples of IFRS 15 Revenue from Contracts w
ith Customers and their expected credit loss provis
ion. Loan
\n
commitments may be designated at fair value through pro\ufb01t or loss where that is the business model under which such
\n
contracts are held. Notional values of \ufb01nanc
ial guarantee contracts and loan comm
itments are disclosed in the table below.
\n
Financ
ial guarantees, trade cred
its and irrevocable letters of credit are the notional values of contracts issued by the Group\u2019s
\n
Transaction Banking business for which an obligat
ion to make a payment has not ar
isen at the reporting date. Transaction
\n
Banking will issue contracts to clients and counterparties of clients, whereby in the event the holder of the contract is not
\n
paid, the Group will reimburse the holder of the contract for the actual \ufb01nanc
ial loss suffered. These contracts have var
ious
\n
legal forms such as letters of credit, guarantee contracts and performance bonds. The contracts are issued to facil
itate trade
\n
through export and import business, provide guarantees to \ufb01nanc
ial
inst
itut
ions where the Group has a local presence, as
\n
well as guaranteeing project \ufb01nanc
ing
involv
ing large construct
ion projects undertaken by sovereigns and corporates. The
\n
contracts may contain performance clauses which require the counterparty performing services or provid
ing goods to meet
\n
certain condit
ions before a r
ight to payment is achieved, however the Group does not guarantee this performance. The
\n
Group will only guarantee the credit of the counterparty paying for the services or goods.
\n
Commitments are where the Group has con\ufb01rmed its intent
ion to prov
ide funds to a customer or on behalf of a customer
\n
under prespecif
ied terms and cond
it
ions
in the form of loans, overdrafts, future guarantees whether cancellable or not and
\n
the Group has not made payments at the balance sheet date; those instruments are included in these \ufb01nanc
ial statements
\n
as commitments. Commitments and contingent liab
il
it
ies are generally cons
idered on demand as the Group may have to
\n
honour them, or the client may draw down at any time.
\n
Capital commitments are contractual commitments the Group has entered into to purchase non-\ufb01nanc
ial assets.", "dimensions": { "concept": "stan:DescriptionOfAccountingPolicyForContingentLiabilitiesAndCommitmentsExplanatoryPolicyTextBlock", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f93513": { "value": "26. Legal and regulatory matters \n
Accounting policy
\n
Where appropriate, the Group recognises a provis
ion for l
iab
il
it
ies when
it is probable that an out\ufb02ow of economic resources
\n
embodying economic bene\ufb01ts will be required, and for which a reliable estimate can be made of the obligat
ion. The
\n
uncertaint
ies
inherent in legal and regulatory matters affect the amount and tim
ing of any potent
ial out\ufb02ows with respect
\n
to which provis
ions have been establ
ished. These uncertaint
ies also mean that
it is not possible to give an aggregate
\n
estimate of contingent liab
il
it
ies ar
is
ing from such legal and regulatory matters.
\n
The Group receives legal claims against it in a number of jur
isd
ict
ions and
is subject to regulatory and enforcement
\n
invest
igat
ions and proceedings from time to time. Apart from the matters described below, the Group currently considers none
\n
of the ongoing claims, invest
igat
ions or proceedings to be ind
iv
idually material. However, in light of the uncertaint
ies
involved in
\n
such matters there can be no assurance that the outcome of a particular matter or matters currently not considered to be
\n
material may not ultimately be material to the Group\u2019s results in a particular reporting period depending on, among other
\n
things, the amount of the loss resulting from the matter(s) and the results otherwise reported for such period.
\n
Since 2014, the Group has been named as a defendant in a series of lawsuits that have been \ufb01led in the United States Distr
ict
\n
Courts for the Southern and Eastern Distr
icts of New York aga
inst a number of banks (includ
ing Standard Chartered Bank or
its
\n
af\ufb01liates) on behalf of pla
int
iffs who are, or are relat
ives of, vict
ims of var
ious terrorist attacks in Iraq and Afghanistan. The most
\n
recent lawsuit was \ufb01led in April 2022 and concerns terrorist attacks that occurred in Afghanistan between 2013 and 2016. None
\n
of these lawsuits have specif
ied the amount of damages cla
imed. The plaint
iffs
in each of these lawsuits have alleged that the
\n
defendant banks aided and abetted the unlawful conduct of parties with connections to terrorist organisat
ions
in breach of the
\n
U.S. Anti-Terrorism Act. The courts have ruled in favour of the banks\u2019 motions to dism
iss
in six of these lawsuits, includ
ing a rul
ing
\n
issued in December 2022 in which the United States Distr
ict Court for the Eastern D
istr
ict of New York d
ism
issed a lawsu
it \ufb01led in
\n
August 2021. In January 2023 a panel of the United States Court of Appeals for the Second Circu
it upheld a September 2019
\n
ruling by the United States Distr
ict Court for the Eastern D
istr
ict of New York
in which a lawsuit \ufb01led in November 2014 was
\n
dism
issed. Wh
ile a ruling is awaited in respect of the Group\u2019s motion to dism
iss the lawsu
it \ufb01led in April 2022, the other lawsuits
\n
are currently stayed pending a ruling by the United States Supreme Court in another U.S. Anti-Terrorism Act case in which SCB is
\n
not involved. An appeal from the December 2022 dism
issal rul
ing is also pending.
\n
In January 2020, a shareholder derivat
ive compla
int was \ufb01led by the City of Philadelph
ia
in New York State Court against 45
\n
current and former directors and senior of\ufb01cers of the Group. It is alleged that the ind
iv
iduals breached their duties to the Group
\n
and caused a waste of corporate assets by permitt
ing the conduct that gave r
ise to the costs and losses to the Group related to
\n
legacy conduct and control issues. In March 2021, an amended complaint was served in which SCB and seven ind
iv
iduals were
\n
removed from the case. Standard Chartered PLC and Standard Chartered Holdings Lim
ited rema
ined as named \u201cnominal
\n
defendants\u201d in the complaint. In May 2021, Standard Chartered PLC \ufb01led a motion to dism
iss the compla
int. In February 2022,
\n
the New York State Court ruled in favour of Standard Chartered PLC\u2019s motion to dism
iss the compla
int. The plaint
iffs are
\n
pursuing an appeal against the February 2022 ruling. A hearing date for the plaint
iffs\u2019 appeal
is awaited.
\n
Since October 2020, four lawsuits have been \ufb01led in the English High Court against Standard Chartered PLC on behalf of more
\n
than 300 shareholders in relation to alleged untrue and/or mislead
ing statements and/or om
iss
ions
in informat
ion publ
ished by
\n
Standard Chartered PLC in its rights issue prospectuses of 2008, 2010 and 2015 and/or public statements regarding the Group\u2019s
\n
histor
ic sanct
ions, money laundering and \ufb01nanc
ial cr
ime compliance issues. These lawsuits have been brought under sections
\n
90 and 90A of the Financ
ial Serv
ices and Markets Act 2000. These lawsuits are at an early procedural stage.
\n
Bernard Madoff\u2019s 2008 confession to running a Ponzi scheme through Bernard L. Madoff Investment Securit
ies LLC (BMIS) gave
\n
rise to a number of lawsuits against the Group. BMIS and the Fairf
ield funds (wh
ich invested in BMIS) are in bankruptcy and
\n
liqu
idat
ion, respectively. Between 2010 and 2012, \ufb01ve lawsuits were brought against the Group by the BMIS bankruptcy trustee
\n
and the Fairf
ield funds\u2019 l
iqu
idators,
in each case seeking to recover funds paid to the Group\u2019s clients pursuant to redemption
\n
requests made prior to BMIS\u2019 bankruptcy \ufb01l
ing. The total amount sought
in these cases exceeds USD 300 mill
ion, exclud
ing any
\n
pre-judgment interest that may be awarded. The four lawsuits commenced by the Fairf
ield funds\u2019 l
iqu
idators have been
\n
dism
issed and the appeals of those d
ism
issals by the funds\u2019 l
iqu
idators are ongo
ing.
\n
The Group has concluded that the threshold for recording provis
ions pursuant to IAS 37 Prov
is
ions, Cont
ingent Liab
il
it
ies and
\n
Contingent Assets is not met with respect to the above matters; however, the outcomes of these lawsuits are inherently
\n
uncertain and diff
icult to pred
ict.", "dimensions": { "concept": "stan:DisclosureOfLegalAndRegulatoryMattersExplanatoryTextBlock", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f93517": { "value": "Accounting policy \n
Where appropriate, the Group recognises a provis
ion for l
iab
il
it
ies when
it is probable that an out\ufb02ow of economic resources
\n
embodying economic bene\ufb01ts will be required, and for which a reliable estimate can be made of the obligat
ion. The
\n
uncertaint
ies
inherent in legal and regulatory matters affect the amount and tim
ing of any potent
ial out\ufb02ows with respect
\n
to which provis
ions have been establ
ished. These uncertaint
ies also mean that
it is not possible to give an aggregate
\n
estimate of contingent liab
il
it
ies ar
is
ing from such legal and regulatory matters.", "dimensions": { "concept": "stan:DescriptionOfAccountingPolicyForLegalAndRegulatoryMattersExplanatoryPolicyTextBlock", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f93712": { "value": "27. Subordinated liab
il
it
ies and other borrowed funds
\n
Accounting policy
\n
Subordinated liab
il
it
ies and other borrowed funds are class
if
ied as \ufb01nancial
instruments. Refer to Note 13 Financ
ial
\n
instruments for the accounting policy.
\n
All subordinated liab
il
it
ies are unsecured, unguaranteed and subord
inated to the claims of other creditors includ
ing w
ithout
\n
lim
itat
ion, customer deposits and deposits by banks. The Group has the right to settle these debt instruments in certain
\n
circumstances as set out in the contractual agreements. Where a debt instrument is callable, the issuer has the right to call.
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Subordinated loan capital \u2013 issued by subsid
iary undertak
ings
\n
\u00a3200 mill
ion 7.75 per cent subord
inated notes (callable 2022)\u00b9
\u2013
48
\n
$700 mill
ion 8.0 per cent subord
inated notes due 2031 (callable 2026)\u00b9
345
418
\n
345
466
\n
Subordinated loan capital \u2013 issued by the Company
\n
2
\n
Primary capital \ufb02oating rate notes:
\n
$400 mill
ion \ufb02oat
ing rate undated subordinated notes
\n
3
\n
16
16
\n
$300 mill
ion \ufb02oat
ing rate undated subordinated notes (Series 2)
\n
3
\n
69
69
\n
$400 mill
ion \ufb02oat
ing rate undated subordinated notes (Series 3)
\n
3
\n
50
50
\n
$200 mill
ion \ufb02oat
ing rate undated subordinated notes (Series 4)
\n
3
\n
26
26
\n
\u00a3900 mill
ion 5.125 per cent subord
inated notes due 2034
587
848
\n
$2 bill
ion 5.7 per cent subord
inated notes due 2044
2,172
2,361
\n
$2 bill
ion 3.95 per cent subord
inated notes due 2023
1,999
2,027
\n
$1 bill
ion 5.7 per cent subord
inated notes due 2022
\u2013
1,000
\n
$1 bill
ion 5.2 per cent subord
inated notes due 2024
1,017
1,049
\n
$750 mill
ion 5.3 per cent subord
inated notes due 2043
679
788
\n
\u20ac750 mill
ion 3.625 per cent subord
inated notes due 2022
\u2013
868
\n
\u20ac500 mill
ion 3.125 per cent subord
inated notes due 2024
502
585
\n
$1.25 bill
ion 4.3 per cent subord
inated notes due 2027
1,119
1,250
\n
$1 bill
ion 3.516 per cent subord
inated notes due 2030 (callable 2025)
938
1,012
\n
$500 mill
ion 4.886 per cent subord
inated notes due 2033 (callable 2028)
473
543
\n
\u00a3 96.035m 7.375% non-cumulative Irredeemable preference shares (reclassed as Debt)
116
129
\n
\u00a3 99.250m 8.25% non-cumulative Irredeemable preference shares (reclassed as Debt)
119
134
\n
$750 mill
ion 3.604% \ufb01xed rate reset dated subord
inated notes due 2033
630
\u2013
\n
\u20ac 1 bill
ion 2.5 per cent subord
inated debt 2030
967
1,123
\n
$1.25 bill
ion 3.265 per cent subord
inated notes due 2036
1,002
1,188
\n
\u20ac1 bill
ion 1.200 per cent. \ufb01xed rate reset dated subord
inated notes due 2031
891
1,114
\n
13,370
16,180
\n
Total for Group
13,715
16,646
\n
1
Issued by Standard Chartered Bank
\n
2
In the balance sheet of the Company the amount recognised is $13,684 mill
ion (2021: $16,162 m
ill
ion), w
ith the difference being external notes and the effect of
\n
hedge accounting achieved on a Group basis
\n
3
These notes will be subject to remediat
ion under
interest rate benchmark reform. Please refer to Note 13 for further informat
ion on th
is
422
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
27. Subordinated liab
il
it
ies and other borrowed funds
continued
\n
2022
\n
USD
\n
$mill
ion
\n
GBP
\n
$mill
ion
\n
EUR
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Fixed rate subordinated debt
10,372
822
2,360
13,554
\n
Floating rate subordinated debt
161
\u2013
\u2013
161
\n
Total
10,533
822
2,360
13,715
\n
2021
\n
USD
\n
$mill
ion
\n
GBP
\n
$mill
ion
\n
EUR
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Fixed rate subordinated debt
11,636
1,160
3,689
16,485
\n
Floating rate subordinated debt
161
\u2013
\u2013
161
\n
Total
11,797
1,160
3,689
16,646
\n
Redemptions and repurchases during the year
\n
On 25 January 2022, Standard Chartered PLC exercised its right to redeem USD 1 bill
ion 5.7 per cent subord
inated notes 2022.
\n
Further redemption of \u20ac750 mill
ion 3.625 per cent subord
inated notes 2022 & \u00a3200 mill
ion 7.75 per cent subord
inated notes 2022
\n
was made during the year 2022.
\n
Issuance during the year
\n
On 12 January 2022, Standard Chartered PLC issued USD 750 mill
ion 3.603 per cent \ufb01xed rate reset dated subord
inated notes
\ndue 2033.", "dimensions": { "concept": "ifrs-full:DisclosureOfSubordinatedLiabilitiesExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f93713": { "value": "27. Subordinated liab
il
it
ies and other borrowed funds
\n
Accounting policy
\n
Subordinated liab
il
it
ies and other borrowed funds are class
if
ied as \ufb01nancial
instruments. Refer to Note 13 Financ
ial
\n
instruments for the accounting policy.
\n
All subordinated liab
il
it
ies are unsecured, unguaranteed and subord
inated to the claims of other creditors includ
ing w
ithout
\n
lim
itat
ion, customer deposits and deposits by banks. The Group has the right to settle these debt instruments in certain
\n
circumstances as set out in the contractual agreements. Where a debt instrument is callable, the issuer has the right to call.
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Subordinated loan capital \u2013 issued by subsid
iary undertak
ings
\n
\u00a3200 mill
ion 7.75 per cent subord
inated notes (callable 2022)\u00b9
\u2013
48
\n
$700 mill
ion 8.0 per cent subord
inated notes due 2031 (callable 2026)\u00b9
345
418
\n
345
466
\n
Subordinated loan capital \u2013 issued by the Company
\n
2
\n
Primary capital \ufb02oating rate notes:
\n
$400 mill
ion \ufb02oat
ing rate undated subordinated notes
\n
3
\n
16
16
\n
$300 mill
ion \ufb02oat
ing rate undated subordinated notes (Series 2)
\n
3
\n
69
69
\n
$400 mill
ion \ufb02oat
ing rate undated subordinated notes (Series 3)
\n
3
\n
50
50
\n
$200 mill
ion \ufb02oat
ing rate undated subordinated notes (Series 4)
\n
3
\n
26
26
\n
\u00a3900 mill
ion 5.125 per cent subord
inated notes due 2034
587
848
\n
$2 bill
ion 5.7 per cent subord
inated notes due 2044
2,172
2,361
\n
$2 bill
ion 3.95 per cent subord
inated notes due 2023
1,999
2,027
\n
$1 bill
ion 5.7 per cent subord
inated notes due 2022
\u2013
1,000
\n
$1 bill
ion 5.2 per cent subord
inated notes due 2024
1,017
1,049
\n
$750 mill
ion 5.3 per cent subord
inated notes due 2043
679
788
\n
\u20ac750 mill
ion 3.625 per cent subord
inated notes due 2022
\u2013
868
\n
\u20ac500 mill
ion 3.125 per cent subord
inated notes due 2024
502
585
\n
$1.25 bill
ion 4.3 per cent subord
inated notes due 2027
1,119
1,250
\n
$1 bill
ion 3.516 per cent subord
inated notes due 2030 (callable 2025)
938
1,012
\n
$500 mill
ion 4.886 per cent subord
inated notes due 2033 (callable 2028)
473
543
\n
\u00a3 96.035m 7.375% non-cumulative Irredeemable preference shares (reclassed as Debt)
116
129
\n
\u00a3 99.250m 8.25% non-cumulative Irredeemable preference shares (reclassed as Debt)
119
134
\n
$750 mill
ion 3.604% \ufb01xed rate reset dated subord
inated notes due 2033
630
\u2013
\n
\u20ac 1 bill
ion 2.5 per cent subord
inated debt 2030
967
1,123
\n
$1.25 bill
ion 3.265 per cent subord
inated notes due 2036
1,002
1,188
\n
\u20ac1 bill
ion 1.200 per cent. \ufb01xed rate reset dated subord
inated notes due 2031
891
1,114
\n
13,370
16,180
\n
Total for Group
13,715
16,646
\n
1
Issued by Standard Chartered Bank
\n
2
In the balance sheet of the Company the amount recognised is $13,684 mill
ion (2021: $16,162 m
ill
ion), w
ith the difference being external notes and the effect of
\n
hedge accounting achieved on a Group basis
\n
3
These notes will be subject to remediat
ion under
interest rate benchmark reform. Please refer to Note 13 for further informat
ion on th
is
422
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
27. Subordinated liab
il
it
ies and other borrowed funds
continued
\n
2022
\n
USD
\n
$mill
ion
\n
GBP
\n
$mill
ion
\n
EUR
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Fixed rate subordinated debt
10,372
822
2,360
13,554
\n
Floating rate subordinated debt
161
\u2013
\u2013
161
\n
Total
10,533
822
2,360
13,715
\n
2021
\n
USD
\n
$mill
ion
\n
GBP
\n
$mill
ion
\n
EUR
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Fixed rate subordinated debt
11,636
1,160
3,689
16,485
\n
Floating rate subordinated debt
161
\u2013
\u2013
161
\n
Total
11,797
1,160
3,689
16,646
\n
Redemptions and repurchases during the year
\n
On 25 January 2022, Standard Chartered PLC exercised its right to redeem USD 1 bill
ion 5.7 per cent subord
inated notes 2022.
\n
Further redemption of \u20ac750 mill
ion 3.625 per cent subord
inated notes 2022 & \u00a3200 mill
ion 7.75 per cent subord
inated notes 2022
\n
was made during the year 2022.
\n
Issuance during the year
\n
On 12 January 2022, Standard Chartered PLC issued USD 750 mill
ion 3.603 per cent \ufb01xed rate reset dated subord
inated notes
\ndue 2033.", "dimensions": { "concept": "stan:DisclosureOfSubordinatedLiabilitiesAndOtherBorrowedFundsExplanatoryTextBlock", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f93721": { "value": "Accounting policy \n
Subordinated liab
il
it
ies and other borrowed funds are class
if
ied as \ufb01nancial
instruments. Refer to Note 13 Financ
ial
\n
instruments for the accounting policy.
\n
All subordinated liab
il
it
ies are unsecured, unguaranteed and subord
inated to the claims of other creditors includ
ing w
ithout
\n
lim
itat
ion, customer deposits and deposits by banks. The Group has the right to settle these debt instruments in certain
\ncircumstances as set out in the contractual agreements. Where a debt instrument is callable, the issuer has the right to call.", "dimensions": { "concept": "stan:DescriptionOfAccountingPolicyForSubordinatedLiabilitiesAndOtherBorrowedFundsExplanatoryPolicyTextBlock", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f93989": { "value": "28. Share capital, other equity instruments and reserves \n
Accounting policy
\n
Financ
ial
instruments issued are classif
ied as equ
ity when there is no contractual obligat
ion to transfer cash or other \ufb01nancial
\n
assets, or no obligat
ion to
issue a variable number of own equity instruments. Incremental costs directly attributable to the
\n
issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.
\n
Securit
ies wh
ich carry a discret
ionary coupon and have no \ufb01xed matur
ity or redemption date are classif
ied as other equ
ity
\n
instruments. Interest payments on these securit
ies are recogn
ised, net of tax, as distr
ibut
ions from equity in the period in
\n
which they are paid.
\n
Where the Company or other members of the consolidated Group purchase the Company\u2019s equity share capital, the
\n
considerat
ion pa
id is deducted from the total shareholders\u2019 equity of the Group and/or of the Company as treasury shares
\n
until they are cancelled. Where such shares are subsequently sold or reissued, any considerat
ion rece
ived is included in
\n
shareholders\u2019 equity of the Group and/or the Company.
\n
Number of
\n
ordinary
\n
shares
\n
mill
ions
\n
Ordinary
\n
share
\n
capital
\n
1
\n
$mill
ion
\n
Ordinary
\n
share
\n
premium
\n
$mill
ion
\n
Preference
\n
share
\n
premium
\n
2
\n
$mill
ion
\n
Total share
\n
capital and
\n
share premium
\n
$mill
ion
\n
Other
\n
equity
\n
instruments
\n
$mill
ion
\n
At 1 January 2021
3,156
1,578
3,986
1,494
7,058
4,518
\n
Cancellation of shares includ
ing
\n
share buy-back
(77)
(39)
\u2013
\u2013
(39)
\u2013
\n
Addit
ional T
ier 1 equity issuance
\u2013
\u2013
\u2013
\u2013
\u2013
2,728
\n
Addit
ional T
ier 1 equity redemption
\u2013
\u2013
\u2013
\u2013
\u2013
(992)
\n
Other movements
\u2013
\u2013
3
\u2013
3
\u2013
\n
At 31 December 2021
3,079
1,539
3,989
1,494
7,022
6,254
\n
Cancellation of shares includ
ing
\n
share buy-back
(184)
(92)
\u2013
\u2013
(92)
\u2013
\n
Addit
ional T
ier 1 equity issuance
\u2013
\u2013
\u2013
\u2013
\u2013
1,240
\n
Addit
ional T
ier 1 redemption
\u2013
\u2013
\u2013
\u2013
\u2013
(990)
\n
At 31 December 2022
2,895
1,447
3,989
1,494
6,930
6,504
\n
1
Issued and fully paid ordinary shares of 50 cents each
\n
2 Includes preference share capital of $75,000
423
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
28. Share capital, other equity instruments and reserves
continued
\n
Share buy-back
\n
On 18 February 2022, the Group announced the buy-back programme for a share buy-back of its ordinary shares of $0.50 each.
\n
Nominal value of share purchases was $56 mill
ion, and the total cons
iderat
ion pa
id was $754 mill
ion (
includ
ing $4\u00a0m
ill
ion of fees
\n
and stamp duty), The buy-back completed on 19 May 2022. The total number of shares purchased was 111,295,408, representing
\n
3.61 per cent of the ordinary shares in issue. The nominal value of the shares was transferred from the share capital to the capital
\n
redemption reserve account. The shares were purchased by Standard Chartered PLC on various exchanges not includ
ing the
\n
Hong Kong Stock Exchange.
\n
Number of
\n
ordinary
\n
shares
\n
Highest
\n
price paid
\n
\u00a3
\n
Lowest
\n
price paid
\n
\u00a3
\n
Average price
\n
paid per share
\n
\u00a3
\n
Aggregate
\n
price paid
\n
\u00a3
\n
Aggregate
\n
price paid
\n
$
\n
February 2022
14,397,852
5.85000
5.14800
5.55490
79,978,036
107,767,620
\n
March 2022
49,510,420
5.44800
4.31400
4.94560
244,860,409
322,288,357
\n
April 2022
29,085,345
5.27000
4.78700
5.05870
147,135,270
190,912,883
\n
May 2022
18,301,791
5.99400
5.44800
5.71980
104,682,211
129,028,610
\n
August 2022
27,826,349
6.23600
5.61600
5.97660
166,308,114
199,113,059
\n
September 2022
34,714,694
6.27000
5.51400
5.93440
206,009,962
232,644,256
\n
October 2022
10,532,794
5.91800
5.49600
5.74910
60,554,337
68,239,759
\n
Ordinary share capital
\n
In accordance with the Companies Act 2006 the Company does not have authorised share capital. The nominal value of each
\n
ordinary share is 50 cents.
\n
During the period nil shares were issued under employee share plans.
\n
Preference share capital
\n
At 30 June 2022, the Company has 15,000 $5 non-cumulative redeemable preference shares in issue, with a premium of $99,995
\n
making a paid up amount per preference share of $100,000. The preference shares are redeemable at the option of the
\n
Company and are classif
ied
in equity.
\n
The available pro\ufb01ts of the Company are distr
ibuted to the holders of the
issued preference shares in prior
ity to payments
\n
made to holders of the ordinary shares and in prior
ity to, or par
i passu with, any payments to the holders of any other class of
\n
shares in issue. On a wind
ing up, the assets of the Company are appl
ied to the holders of the preference shares in prior
ity to
\n
any payment to the ordinary shareholders and in prior
ity to, or par
i passu with, the holders of any other shares in issue, for an
\n
amount equal to any div
idends payable (on approval of the Board) and the nom
inal value of the shares together with any
\n
premium as determined by the Board. The redeemable preference shares are redeemable at the paid up amount (which
\n
includes premium) at the option of the Company in accordance with the terms of the shares. The holders of the preference
\n
shares are not entitled to attend or vote at any general meeting except where any relevant div
idend due
is not paid in full or
\n
where a resolution is proposed varying the rights of the preference shares.
\n
Other equity instruments
\n
The table provides details of outstanding \ufb01xed rate resetting perpetual subordinated contingent convertible AT1 securit
ies
\n
issued by Standard Chartered PLC. All issuances are made for general business purposes and to increase the regulatory capital
\n
base of the Group.
\n
Issuance date
Nominal value
\n
Proceeds net
\n
of issue costs
\n
Interest
\n
rate
\n
2
\n
Coupon payment dates
\n
3
\n
First reset dates
\n
4
\n
Conversion price
\n
per ordinary
\n
share
\n
18 August 2016
USD 999 mill
ion
\n
1
\n
USD 990 mill
ion
7.50%
2 April, 2 October each year
2 April 2022
USD 7.732
\n
18 January 2017
USD 1,000 mill
ion
USD 992 mill
ion
7.75%
2 April, 2 October each year
2 April 2023
USD 7.732
\n
3 July 2019
SGD 750 mill
ion
USD 552 mill
ion
5.375%
3 April, 3 October each year
3 October 2024
SGD 10.909
\n
26 Jun 2020
USD 1,000 mill
ion
USD 992 mill
ion
6%
26 January, 26 July each year
26 January 2026
USD 5.331
\n
14 January 2021
USD 1,250 mill
ion
USD 1,239 mill
ion
4.75%
14 January, 14 July each year
14 July 2031
USD 6.353
\n
19 August 2021
USD 1,500 mill
ion
USD 1,489 mill
ion
4.30%
19 February, 19 August each year
19 August 2028
USD 6.382
\n
15 August 2022
USD 1,250 mill
ion
USD 1,239 mill
ion
7.75%
15 February, 15 August each year
15 February 2028
USD 7.333
\n
1
During the period, the Group repurchased around USD 1,001 mill
ion of these secur
it
ies v
ia a tender offer
\n
2
Interest rates for the period from (and includ
ing) the
issue date to (but excluding) the \ufb01rst reset date
\n
3 Interest payable semi-annually in arrears
\n
4 Securit
ies are resettable each date fall
ing \ufb01ve years, or an integral multiple of \ufb01ve years, after the \ufb01rst reset date
\n
Standard Chartered PLC redeemed $999 mill
ion \ufb01xed rate resett
ing perpetual contingent convertible securit
ies on
its \ufb01rst
\n
optional redemption date of 2 April 2022.
\n
The AT1 issuances above are primar
ily purchased by
inst
itut
ional investors.
424
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
28. Share capital, other equity instruments and reserves
continued
\n
The princ
ipal terms of the AT1 secur
it
ies are descr
ibed below:
\n
\u2022
The securit
ies are perpetual and redeemable, at the opt
ion of Standard Chartered PLC in whole but not in part, on the \ufb01rst
\n
interest reset date and each date falling \ufb01ve years after the \ufb01rst reset date
\n
\u2022
The securit
ies are also redeemable for certa
in regulatory or tax reasons on any date at 100 per cent of their princ
ipal amount
\n
together with any accrued but unpaid interest up to (but excluding) the date \ufb01xed for redemption. Any redemption is subject
\n
to Standard Chartered PLC giv
ing not
ice to the relevant regulator and the regulator granting permiss
ion to redeem
\n
\u2022
Interest payments on these securit
ies w
ill be accounted for as a div
idend.
\n
\u2022
Interest on the securit
ies
is due and payable only at the sole and absolute discret
ion of Standard Chartered PLC, subject to
\n
certain addit
ional restr
ict
ions set out
in the terms and condit
ions. Accord
ingly, Standard Chartered PLC may at any time elect
\n
to cancel any interest payment (or part thereof) which would otherwise be payable on any interest payment date.
\n
\u2022
The securit
ies convert
into ordinary shares of Standard Chartered PLC, at a pre-determined price detailed in the table above,
\n
should the fully loaded Common Equity Tier 1 ratio of the Group fall below 7.0 per cent. Approximately 947 mill
ion ord
inary
\n
shares would be required to satisfy the conversion of all the securit
ies ment
ioned above
\n
The securit
ies rank beh
ind the claims against Standard Chartered PLC of (a) unsubordinated creditors, (b) which are expressed
\n
to be subordinated to the claims of unsubordinated creditors of Standard Chartered PLC but not further or otherwise; or (c)
\n
which are, or are expressed to be, jun
ior to the cla
ims of other creditors of Standard Chartered PLC, whether subordinated or
\n
unsubordinated, other than claims which rank, or are expressed to rank, pari passu with, or jun
ior to, the cla
ims of holders of the
\n
AT1 securit
ies
in a wind
ing\u2013up occurr
ing prior to the conversion trigger.
\n
Reserves
\n
The constituents of the reserves are summarised as follows:
\n
\u2022
The capital reserve represents the exchange difference on redenominat
ion of share cap
ital and share premium from sterling
\n
to US dollars in 2001. The capital redemption reserve represents the nominal value of preference shares redeemed
\n
\u2022
The amounts in the \u201cCapital and Merger Reserve\u201d represents the premium aris
ing on shares
issued using a cash box \ufb01nanc
ing
\n
structure, which required the Company to create a merger reserve under section 612 of the Companies Act 2006. Shares were
\n
issued using this structure in 2005 and 2006 to assist in the funding of Korea ($1.9 bill
ion) and Ta
iwan ($1.2 bill
ion) acqu
is
it
ions,
\n
in 2008, 2010 and 2015 for the shares issued by way of a rights issue, primar
ily for cap
ital maintenance requirements and for
\n
the shares issued in 2009 by way of an accelerated book build, the proceeds of which were used in the ordinary course of
\n
business of the Group. The funding raised by the 2008, 2010 and 2015 rights issues and 2009 share issue was fully retained
\n
with
in the Company. Of the 2015 fund
ing, $1.5 bill
ion was used to subscr
ibe to addit
ional equ
ity in Standard Chartered Bank,
\n
a wholly owned subsid
iary of the Company. Apart from the Korea, Ta
iwan and Standard Chartered Bank funding, the merger
\n
reserve is considered realised and distr
ibutable.
\n
\u2022
Own credit adjustment reserve represents the cumulative gains and losses on \ufb01nanc
ial l
iab
il
it
ies des
ignated at fair value
\n
through pro\ufb01t or loss relating to own credit. Gains and losses on \ufb01nanc
ial l
iab
il
it
ies des
ignated at fair value through
\n
pro\ufb01t or loss relating to own credit in the year have been taken through other comprehensive income into this reserve.
\n
On derecognit
ion of appl
icable instruments the balance of any OCA will not be recycled to the income statement, but
\n
will be transferred with
in equ
ity to retained earnings
\n
\u2022
Fair value through other comprehensive income (FVOCI) debt reserve represents the unrealised fair value gains and losses in
\n
respect of \ufb01nancial assets class
if
ied as FVOCI, net of expected cred
it losses and taxation. Gains and losses are deferred in this
\n
reserve and are reclassif
ied to the
income statement when the underlying asset is sold, matures or becomes impa
ired.
\n
\u2022
FVOCI equity reserve represents unrealised fair value gains and losses in respect of \ufb01nanc
ial assets class
if
ied as FVOCI, net of
\n
taxation. Gains and losses are recorded in this reserve and never recycled to the income statement
\n
\u2022
Cash \ufb02ow hedge reserve represents the effective portion of the gains and losses on derivat
ives that meet the cr
iter
ia for
\n
these types of hedges. Gains and losses are deferred in this reserve and are reclassif
ied to the
income statement when the
\n
underlying hedged item affects pro\ufb01t and loss or when a forecast transaction is no longer expected to occur
\n
\u2022
Translation reserve represents the cumulative foreign exchange gains and losses on translation of the net investment of the
\n
Group in foreign operations. Since 1 January 2004, gains and losses are deferred to this reserve and are reclassif
ied to the
\n
income statement when the underlying foreign operation is disposed. Gains and losses aris
ing from der
ivat
ives used as
\n
hedges of net investments are netted against the foreign exchange gains and losses on translation of the net investment
\n
of the foreign operations
\n
\u2022
Retained earnings represents pro\ufb01ts and other comprehensive income earned by the Group and Company in the current
\n
and prior periods, together with the after tax increase relating to equity-settled share options, less div
idend d
istr
ibut
ions,
\n
own shares held (treasury shares) and share buy-backs
\n
A substantial part of the Group\u2019s reserves is held in overseas subsid
iary undertak
ings and branches, princ
ipally to support local
\n
operations or to comply with local regulations. The maintenance of local regulatory capital ratios could potentially restrict
\n
the amount of reserves which can be remitted. In addit
ion,
if these overseas reserves were to be remitted, further unprovided
\n
taxation liab
il
it
ies m
ight arise.
\n
As at 31 December 2022, the distr
ibutable reserves of Standard Chartered PLC (the Company) were $13 b
ill
ion (31 December
\n
2021: $15.0 bill
ion). These compr
ised retained earnings and $12.6 bill
ion of the merger reserve account. D
istr
ibut
ion of reserves
\n
is subject to mainta
in
ing min
imum cap
ital requirements.
425
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
28. Share capital, other equity instruments and reserves
continued
\n
Own shares
\n
Computershare Trustees (Jersey) Lim
ited
is the trustee of the 2004 Employee Bene\ufb01t Trust (\u20182004 Trust\u2019) and Ocorian Trustees
\n
(Jersey) Lim
ited (formerly known as Bedell Trustees L
im
ited)
is the trustee of the 1995 Employees\u2019 Share Ownership Plan Trust
\n
(\u20181995 Trust\u2019). The 2004 Trust is used in conjunct
ion w
ith the Group\u2019s employee share schemes and the 1995 Trust is used for the
\n
delivery of other employee share-based payments (such as upfront shares and \ufb01xed pay allowances). Group companies fund
\n
these trusts from time to time to enable the trustees to acquire shares to satisfy these arrangements.
\n
Except as disclosed, neither the Company nor any of its subsid
iar
ies has bought, sold or redeemed any securit
ies of the
\n
Company listed on The Stock Exchange of Hong Kong Lim
ited dur
ing the period. Details of the shares purchased and held by
\n
the trusts are set out below.
\n
1995 Trust
2004 Trust
Total
\n
2022
2021
2022
2021 \u00b9
2022
2021
\n
Shares purchased during the period
\u2013
\u2013
30,203,531
36,487,747
30,203,531
36,487,747
\n
Market price of shares purchased
\n
($mill
ion)
\u2013
\u2013
218
237
218
237
\n
Shares transferred between trusts
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\n
Shares held at the end of the period
\u2013
\u2013
27,525,624
22,461,243
27,525,624
22,461,243
\n
Maximum number of shares held
\n
during the period
27,976,046
23,076,993
\n
1
Note that 35,768 shares were purchased by the trustee of the 2004 Trust using $0.2 mill
ion part
ic
ipant sav
ings as part of Sharesave exercises
\n
Div
idend wa
ivers
\n
The trustees of the 2004 Trust, which holds ordinary shares in Standard Chartered PLC in connection with the operation of its
\n
employee share plans, have lodged standing instruct
ions
in relation to shares held by them that have not been allocated to
\n
employees, whereby any div
idend
is waived on the balance of ordinary shares and recalculated and paid at the rate of 0.01p
\n
per share.
\n
Changes in share capital and other equity instruments of Standard Chartered PLC subsid
iar
ies
\n
The table below details the transactions in equity instruments (includ
ing convert
ible and hybrid instruments) of the Group\u2019s
\n
subsid
iar
ies, includ
ing
issuances, conversions, redemptions, purchase or cancellation. This is required under the Hong Kong
\n
List
ing requ
irements, appendix 16 paragraph 10.
\n
Name and registered address
\n
Place of
\n
incorporation
Descript
ion of shares
\n
Issued/(redeemed)
\n
capital
\n
Issued/(redeemed)
\n
Shares
\n
Proportion
\n
of shares
\n
held
\n
(%)
\n
The following companies have the address
\n
of 1 Basinghall Avenue, London, EC2V 5DD,
\n
United Kingdom
\n
Finventures UK Lim
ited
United Kingdom
$1.00 Ordinary shares
\u00a325,000,000
25,000,000
100
\n
Standard Chartered I H Lim
ited
United Kingdom
$1.00 Ordinary shares
$70,000,036
70,000,036
100
\n
Standard Chartered Holdings Lim
ited
United Kingdom
$2.00 Ordinary shares
$45,000,036
22,500,018
100
\n
Standard Chartered Strategic Investments
\n
Lim
ited
\n
1
\n
United Kingdom
\n
$1.00 Ordinary shares
$2,697,462
2,697,462
100
\n
Standard Chartered UK Holdings Lim
ited
\n
2
\n
United Kingdom
$1.00 Ordinary shares
$114,079,067
114,079,067
100
\n
Zodia Markets (UK) Lim
ited
United Kingdom
$1.00 Ordinary shares
$999,000
999,000
100
\n
Zodia Markets Holdings Lim
ited
United Kingdom
$1.00 Ordinary shares
$7,501
7,501
75.01
\n
The following companies have the address
\n
of Thomas House, 84 Eccleston Square,
\n
London, SW1V 1PX, United Kingdom
\n
Zodia Custody Lim
ited
United Kingdom
$1.00 Ordinary shares
$14,240,000
14,240,000
95.1
\n
Zodia Holdings Lim
ited
United Kingdom
$1.00 Ordinary-A shares
$24,990,000
24,990,000
100
\n
The following companies have the address
\n
of Spaces, 25 Wilton Road, Victor
ia,
\n
London, SW1V 1LW, United Kingdom
\n
Resolution Alliance Korea Ltd
Republic of Korea
KRW5,000 Ordinary
\n
shares
KRW (100,000,000)
(100,000,000)
100
426
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
Name and registered address
\n
Place of
\n
incorporation
Descript
ion of shares
\n
Issued/(redeemed)
\n
capital
\n
Issued/(redeemed)
\n
Shares
\n
Proportion
\n
of shares
\n
held
\n
(%)
\n
The following companies have the address
\n
of Suites 507,508,509,15th \ufb02oor, Al Sarab
\n
Tower, Adgm Square, Al Maryah Island,
\n
Abu Dhabi, United Arab Emirates
\n
United Arab
\n
Emirates
\n
Financ
ial Inclus
ion Technologies Ltd
Hong Kong
$1.00 Ordinary shares
$8,800,000
8,800,000
100
\n
The following company has the address of
\n
39/F, Oxford House,Taikoo Place,979 king\u2019s
\n
road, Quarry Bay, Hong Kong
\n
Mox Bank Lim
ited
Hong Kong
HKD Ordinary shares
HKD639,794,864
63,979,486
65.98
\n
The following company has the address of
\n
Second Floor, Indiqube Edge, Khata No.
\n
571/630/6/4, Sy.No.6/4, Ambalipura Village,
\n
Varthur Hobli, Marathahalli Sub-Div
is
ion,
\n
Ward No. 150, Bengaluru, 560102, India.
\n
Standard Chartered Research and
\n
Technology India Private Lim
ited
\n
India
INR10.00 A Equity
\n
shares
INR64,673,130
6,467,313
99.601
\n
The following company has the address of
\n
StandardChartered@Chiromo, Number 48,
\n
Westlands Road, P. O. Box 30003 \u2013 00100,
\n
Nairob
i, Kenya
\n
Solvezy Technology Kenya Lim
ited
Kenya
KES1000.00 Ordinary
\n
shares
KES295,804,000
295,804
100
\n
Tawi Fresh Kenya Lim
ited
Kenya
KES1,000.00 Ordinary
\n
shares
KES118,145,000
118,145
100
\n
The following company has the address of
\n
23 De Walden Street, London, W1G 8RW,
\n
United Kingdom
\n
Shoal Lim
ited
United Kingdom
$1.00 Ordinary shares
$2
2
100
\n
The following companies have the address
\n
of 27, Fitzw
ill
iam Street, Dublin, D02 TP23,
\n
Ireland
\n
Zodia Custody (Ireland) Lim
ited
Ireland
$1.00 Ordinary shares
$10,000,000
10,000,000
100
\n
The following companies have the address
\n
of 8 Marina Boulevard, #27-01 Marina Bay
\n
Financ
ial Centre Tower 1, 018981, S
ingapore
\n
Standard Chartered Private Equity
\n
(Singapore) Pte Ltd
Singapore
$ Ordinary shares
$25,000,000
25,000,000
100
\n
The following company has the address of
\n
77 Robinson Road, #25-00 Robinson 77,
\n
068896, Singapore
\n
Trust Bank Singapore Lim
ited
Singapore
SGD Ordinary shares
SGD96,000,000
96,000,000
60
\n
Standard Chartered Bank Cote d\u2019Ivoire, 23
\n
Boulevard de la R\u00e9publique, Abidjan 17, 17
\n
B.P. 1141, Cote d\u2019Ivoire
\n
Standard Chartered Bank Cote d\u2019 Ivoire SA
Cote d\u2019Ivoire
XOF100,000 Ordinary
\n
Shares
XOF2,508,000,000
25,080
100
\n
26F, Fortune Financ
ial Centre, #5, Dong San
\n
Huan Zhong Lu, Chaoyang Distr
ict , Be
ijing ,
\n
100020, China
\n
Standard Chartered Corporate Advisory
\n
Co., Ltd.
\n
China
$1.00
\n
Ordinary shares
$(1,680,000)
(1,680,000)
100
\n
The following companies have the address
\n
of 80 Robinson Road, #02-00, 068898,
\n
Singapore
\n
Autumn Life Pte. Ltd.
Singapore
$ Ordinary-A shares
$9,400,000
9,400,000
96.4
\n
Cardspal Pte. Ltd.
Singapore
$ Ordinary-A shares
$2,500,000
2,500,000
100
\n
Pegasus Dealmaking Pte. Ltd.
Singapore
$ Ordinary shares
$71,999
71,999
100
\n
Power2SME Pte. Ltd.
Singapore
$ Ordinary shares
$11,800,000
11,800,000
90.6
\n
SCV Research and Development Pte. Ltd.
Singapore
$ Ordinary shares
$6,000,000
6,000,000
100
\n
SCV Master Holding Company Pte Ltd
Singapore
$ Ordinary shares
$11,800,000
11,800,000
100
\n
Solv-India Pte Ltd
Singapore
$ Ordinary shares
$23,000,000
23,000,000
100
\n
28. Share capital, other equity instruments and reserves
continued
427
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
Name and registered address
\n
Place of
\n
incorporation
Descript
ion of shares
\n
Issued/(redeemed)
\n
capital
\n
Issued/(redeemed)
\n
Shares
\n
Proportion
\n
of shares
\n
held
\n
(%)
\n
8A, Hony Tower, 1st Financ
ial Street,
\n
Nanshan Distr
ict, Shenzen, Ch
ina
\n
SC Ventures Investment Management
\n
(Shenzhen) Lim
ited
\n
China
$1.00
\n
Ordinary shares
$2,000,000
2,000,000
100
\n
EX-26, Ground Floor, Bldg 16-Co Work,
\n
Dubai Internet City, Dubai, United Arab
\n
Emirates
\n
Appro Onboarding Solutions FZ-LLC
United Arab
\n
Emirates
\n
AED1,000.00 Ordinary
\n
shares
AED6,803,000
6,803
100
\n
The following company has the address of
\n
32, Molesworth Street, Dublin 2, D02Y512,
\n
Ireland
\n
Zodia Markets (Ireland) Lim
ited
United Kingdom
$1.00 Ordinary Shares
$999,000
999,000
100
\n
1
Redenominat
ion of \u00a31.00 Ord
inary shares to $1.00 Ordinary shares
\n
2
Redenominat
ion of \u00a310.00 Ord
inary shares to $1.00 Ordinary shares
\n
Please see Note 22 Debt securit
ies
in issue for issuances and redemptions of senior notes.
\n
Please see Note 27 Subordinated liab
il
it
ies and other borrowed funds for
issuance and redemptions of subordinated liab
il
it
ies
\n
and AT1 securit
ies.
\n
Please see Note 40 Related undertakings of the Group for subsid
iar
ies liqu
idated, d
issolved or sold during the year.", "dimensions": { "concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f93993": { "value": "Accounting policy \n
Financ
ial
instruments issued are classif
ied as equ
ity when there is no contractual obligat
ion to transfer cash or other \ufb01nancial
\n
assets, or no obligat
ion to
issue a variable number of own equity instruments. Incremental costs directly attributable to the
\n
issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.
\n
Securit
ies wh
ich carry a discret
ionary coupon and have no \ufb01xed matur
ity or redemption date are classif
ied as other equ
ity
\n
instruments. Interest payments on these securit
ies are recogn
ised, net of tax, as distr
ibut
ions from equity in the period in
\n
which they are paid.
\n
Where the Company or other members of the consolidated Group purchase the Company\u2019s equity share capital, the
\n
considerat
ion pa
id is deducted from the total shareholders\u2019 equity of the Group and/or of the Company as treasury shares
\n
until they are cancelled. Where such shares are subsequently sold or reissued, any considerat
ion rece
ived is included in
\nshareholders\u2019 equity of the Group and/or the Company.", "dimensions": { "concept": "stan:DescriptionOfAccountingPolicyForShareCapitalOtherEquityInstrumentsAndReservesExplanatoryPolicyTextBlock", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f93994": { "value": "Accounting policy \n
Financ
ial
instruments issued are classif
ied as equ
ity when there is no contractual obligat
ion to transfer cash or other \ufb01nancial
\n
assets, or no obligat
ion to
issue a variable number of own equity instruments. Incremental costs directly attributable to the
\n
issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.
\n
Securit
ies wh
ich carry a discret
ionary coupon and have no \ufb01xed matur
ity or redemption date are classif
ied as other equ
ity
\n
instruments. Interest payments on these securit
ies are recogn
ised, net of tax, as distr
ibut
ions from equity in the period in
\n
which they are paid.
\n
Where the Company or other members of the consolidated Group purchase the Company\u2019s equity share capital, the
\n
considerat
ion pa
id is deducted from the total shareholders\u2019 equity of the Group and/or of the Company as treasury shares
\n
until they are cancelled. Where such shares are subsequently sold or reissued, any considerat
ion rece
ived is included in
\nshareholders\u2019 equity of the Group and/or the Company.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIssuedCapitalExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f94248": { "value": "Ordinary share capital \n
In accordance with the Companies Act 2006 the Company does not have authorised share capital. The nominal value of each
\n
ordinary share is 50 cents.
\n
During the period nil shares were issued under employee share plans.
\n
Preference share capital
\n
At 30 June 2022, the Company has 15,000 $5 non-cumulative redeemable preference shares in issue, with a premium of $99,995
\n
making a paid up amount per preference share of $100,000. The preference shares are redeemable at the option of the
\n
Company and are classif
ied
in equity.
\n
The available pro\ufb01ts of the Company are distr
ibuted to the holders of the
issued preference shares in prior
ity to payments
\n
made to holders of the ordinary shares and in prior
ity to, or par
i passu with, any payments to the holders of any other class of
\n
shares in issue. On a wind
ing up, the assets of the Company are appl
ied to the holders of the preference shares in prior
ity to
\n
any payment to the ordinary shareholders and in prior
ity to, or par
i passu with, the holders of any other shares in issue, for an
\n
amount equal to any div
idends payable (on approval of the Board) and the nom
inal value of the shares together with any
\n
premium as determined by the Board. The redeemable preference shares are redeemable at the paid up amount (which
\n
includes premium) at the option of the Company in accordance with the terms of the shares. The holders of the preference
\n
shares are not entitled to attend or vote at any general meeting except where any relevant div
idend due
is not paid in full or
\nwhere a resolution is proposed varying the rights of the preference shares.", "dimensions": { "concept": "ifrs-full:DisclosureOfIssuedCapitalExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f94284": { "value": "Other equity instruments \n
The table provides details of outstanding \ufb01xed rate resetting perpetual subordinated contingent convertible AT1 securit
ies
\n
issued by Standard Chartered PLC. All issuances are made for general business purposes and to increase the regulatory capital
\n
base of the Group.
\n
Issuance date
Nominal value
\n
Proceeds net
\n
of issue costs
\n
Interest
\n
rate
\n
2
\n
Coupon payment dates
\n
3
\n
First reset dates
\n
4
\n
Conversion price
\n
per ordinary
\n
share
\n
18 August 2016
USD 999 mill
ion
\n
1
\n
USD 990 mill
ion
7.50%
2 April, 2 October each year
2 April 2022
USD 7.732
\n
18 January 2017
USD 1,000 mill
ion
USD 992 mill
ion
7.75%
2 April, 2 October each year
2 April 2023
USD 7.732
\n
3 July 2019
SGD 750 mill
ion
USD 552 mill
ion
5.375%
3 April, 3 October each year
3 October 2024
SGD 10.909
\n
26 Jun 2020
USD 1,000 mill
ion
USD 992 mill
ion
6%
26 January, 26 July each year
26 January 2026
USD 5.331
\n
14 January 2021
USD 1,250 mill
ion
USD 1,239 mill
ion
4.75%
14 January, 14 July each year
14 July 2031
USD 6.353
\n
19 August 2021
USD 1,500 mill
ion
USD 1,489 mill
ion
4.30%
19 February, 19 August each year
19 August 2028
USD 6.382
\n
15 August 2022
USD 1,250 mill
ion
USD 1,239 mill
ion
7.75%
15 February, 15 August each year
15 February 2028
USD 7.333
\n
1
During the period, the Group repurchased around USD 1,001 mill
ion of these secur
it
ies v
ia a tender offer
\n
2
Interest rates for the period from (and includ
ing) the
issue date to (but excluding) the \ufb01rst reset date
\n
3 Interest payable semi-annually in arrears
\n
4 Securit
ies are resettable each date fall
ing \ufb01ve years, or an integral multiple of \ufb01ve years, after the \ufb01rst reset date
\n
Standard Chartered PLC redeemed $999 mill
ion \ufb01xed rate resett
ing perpetual contingent convertible securit
ies on
its \ufb01rst
\n
optional redemption date of 2 April 2022.
\n
The AT1 issuances above are primar
ily purchased by
inst
itut
ional investors.
\n\n
\n\n\n
424
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
28. Share capital, other equity instruments and reserves
continued
\n
The princ
ipal terms of the AT1 secur
it
ies are descr
ibed below:
\n
\u2022
The securit
ies are perpetual and redeemable, at the opt
ion of Standard Chartered PLC in whole but not in part, on the \ufb01rst
\n
interest reset date and each date falling \ufb01ve years after the \ufb01rst reset date
\n
\u2022
The securit
ies are also redeemable for certa
in regulatory or tax reasons on any date at 100 per cent of their princ
ipal amount
\n
together with any accrued but unpaid interest up to (but excluding) the date \ufb01xed for redemption. Any redemption is subject
\n
to Standard Chartered PLC giv
ing not
ice to the relevant regulator and the regulator granting permiss
ion to redeem
\n
\u2022
Interest payments on these securit
ies w
ill be accounted for as a div
idend.
\n
\u2022
Interest on the securit
ies
is due and payable only at the sole and absolute discret
ion of Standard Chartered PLC, subject to
\n
certain addit
ional restr
ict
ions set out
in the terms and condit
ions. Accord
ingly, Standard Chartered PLC may at any time elect
\n
to cancel any interest payment (or part thereof) which would otherwise be payable on any interest payment date.
\n
\u2022
The securit
ies convert
into ordinary shares of Standard Chartered PLC, at a pre-determined price detailed in the table above,
\n
should the fully loaded Common Equity Tier 1 ratio of the Group fall below 7.0 per cent. Approximately 947 mill
ion ord
inary
\n
shares would be required to satisfy the conversion of all the securit
ies ment
ioned above
\n
The securit
ies rank beh
ind the claims against Standard Chartered PLC of (a) unsubordinated creditors, (b) which are expressed
\n
to be subordinated to the claims of unsubordinated creditors of Standard Chartered PLC but not further or otherwise; or (c)
\n
which are, or are expressed to be, jun
ior to the cla
ims of other creditors of Standard Chartered PLC, whether subordinated or
\n
unsubordinated, other than claims which rank, or are expressed to rank, pari passu with, or jun
ior to, the cla
ims of holders of the
\n
AT1 securit
ies
in a wind
ing\u2013up occurr
ing prior to the conversion trigger.
\n
Reserves
\n
The constituents of the reserves are summarised as follows:
\n
\u2022
The capital reserve represents the exchange difference on redenominat
ion of share cap
ital and share premium from sterling
\n
to US dollars in 2001. The capital redemption reserve represents the nominal value of preference shares redeemed
\n
\u2022
The amounts in the \u201cCapital and Merger Reserve\u201d represents the premium aris
ing on shares
issued using a cash box \ufb01nanc
ing
\n
structure, which required the Company to create a merger reserve under section 612 of the Companies Act 2006. Shares were
\n
issued using this structure in 2005 and 2006 to assist in the funding of Korea ($1.9 bill
ion) and Ta
iwan ($1.2 bill
ion) acqu
is
it
ions,
\n
in 2008, 2010 and 2015 for the shares issued by way of a rights issue, primar
ily for cap
ital maintenance requirements and for
\n
the shares issued in 2009 by way of an accelerated book build, the proceeds of which were used in the ordinary course of
\n
business of the Group. The funding raised by the 2008, 2010 and 2015 rights issues and 2009 share issue was fully retained
\n
with
in the Company. Of the 2015 fund
ing, $1.5 bill
ion was used to subscr
ibe to addit
ional equ
ity in Standard Chartered Bank,
\n
a wholly owned subsid
iary of the Company. Apart from the Korea, Ta
iwan and Standard Chartered Bank funding, the merger
\n
reserve is considered realised and distr
ibutable.
\n
\u2022
Own credit adjustment reserve represents the cumulative gains and losses on \ufb01nanc
ial l
iab
il
it
ies des
ignated at fair value
\n
through pro\ufb01t or loss relating to own credit. Gains and losses on \ufb01nanc
ial l
iab
il
it
ies des
ignated at fair value through
\n
pro\ufb01t or loss relating to own credit in the year have been taken through other comprehensive income into this reserve.
\n
On derecognit
ion of appl
icable instruments the balance of any OCA will not be recycled to the income statement, but
\n
will be transferred with
in equ
ity to retained earnings
\n
\u2022
Fair value through other comprehensive income (FVOCI) debt reserve represents the unrealised fair value gains and losses in
\n
respect of \ufb01nancial assets class
if
ied as FVOCI, net of expected cred
it losses and taxation. Gains and losses are deferred in this
\n
reserve and are reclassif
ied to the
income statement when the underlying asset is sold, matures or becomes impa
ired.
\n
\u2022
FVOCI equity reserve represents unrealised fair value gains and losses in respect of \ufb01nanc
ial assets class
if
ied as FVOCI, net of
\n
taxation. Gains and losses are recorded in this reserve and never recycled to the income statement
\n
\u2022
Cash \ufb02ow hedge reserve represents the effective portion of the gains and losses on derivat
ives that meet the cr
iter
ia for
\n
these types of hedges. Gains and losses are deferred in this reserve and are reclassif
ied to the
income statement when the
\n
underlying hedged item affects pro\ufb01t and loss or when a forecast transaction is no longer expected to occur
\n
\u2022
Translation reserve represents the cumulative foreign exchange gains and losses on translation of the net investment of the
\n
Group in foreign operations. Since 1 January 2004, gains and losses are deferred to this reserve and are reclassif
ied to the
\n
income statement when the underlying foreign operation is disposed. Gains and losses aris
ing from der
ivat
ives used as
\n
hedges of net investments are netted against the foreign exchange gains and losses on translation of the net investment
\n
of the foreign operations
\n
\u2022
Retained earnings represents pro\ufb01ts and other comprehensive income earned by the Group and Company in the current
\n
and prior periods, together with the after tax increase relating to equity-settled share options, less div
idend d
istr
ibut
ions,
\n
own shares held (treasury shares) and share buy-backs
\n
A substantial part of the Group\u2019s reserves is held in overseas subsid
iary undertak
ings and branches, princ
ipally to support local
\n
operations or to comply with local regulations. The maintenance of local regulatory capital ratios could potentially restrict
\n
the amount of reserves which can be remitted. In addit
ion,
if these overseas reserves were to be remitted, further unprovided
\n
taxation liab
il
it
ies m
ight arise.
\n
As at 31 December 2022, the distr
ibutable reserves of Standard Chartered PLC (the Company) were $13 b
ill
ion (31 December
\n
2021: $15.0 bill
ion). These compr
ised retained earnings and $12.6 bill
ion of the merger reserve account. D
istr
ibut
ion of reserves
\n
is subject to mainta
in
ing min
imum cap
ital requirements.", "dimensions": { "concept": "ifrs-full:DisclosureOfReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f94624": { "value": "Own shares \n
Computershare Trustees (Jersey) Lim
ited
is the trustee of the 2004 Employee Bene\ufb01t Trust (\u20182004 Trust\u2019) and Ocorian Trustees
\n
(Jersey) Lim
ited (formerly known as Bedell Trustees L
im
ited)
is the trustee of the 1995 Employees\u2019 Share Ownership Plan Trust
\n
(\u20181995 Trust\u2019). The 2004 Trust is used in conjunct
ion w
ith the Group\u2019s employee share schemes and the 1995 Trust is used for the
\n
delivery of other employee share-based payments (such as upfront shares and \ufb01xed pay allowances). Group companies fund
\n
these trusts from time to time to enable the trustees to acquire shares to satisfy these arrangements.
\n
Except as disclosed, neither the Company nor any of its subsid
iar
ies has bought, sold or redeemed any securit
ies of the
\n
Company listed on The Stock Exchange of Hong Kong Lim
ited dur
ing the period. Details of the shares purchased and held by
\n
the trusts are set out below.
\n
1995 Trust
2004 Trust
Total
\n
2022
2021
2022
2021 \u00b9
2022
2021
\n
Shares purchased during the period
\u2013
\u2013
30,203,531
36,487,747
30,203,531
36,487,747
\n
Market price of shares purchased
\n
($mill
ion)
\u2013
\u2013
218
237
218
237
\n
Shares transferred between trusts
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\n
Shares held at the end of the period
\u2013
\u2013
27,525,624
22,461,243
27,525,624
22,461,243
\n
Maximum number of shares held
\n
during the period
27,976,046
23,076,993
\n
1
Note that 35,768 shares were purchased by the trustee of the 2004 Trust using $0.2 mill
ion part
ic
ipant sav
ings as part of Sharesave exercises", "dimensions": { "concept": "ifrs-full:DisclosureOfTreasurySharesExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f95110": { "value": "29. Non-controlling interests \n
Accounting policy
\n
Non-controlling interests are measured at the non-controlling interest\u2019s proportionate share of the acquiree\u2019s ident
i\ufb01able
\n
net\u00a0assets.
\n
$mill
ion
\n
At 1 January 2021
325
\n
Comprehensive income for the year
(17)
\n
Income in equity attributable to non-controlling interests
(15)
\n
Other pro\ufb01ts attributable to non-controlling interests
(2)
\n
Distr
ibut
ions
(31)
\n
Other increases
\n
1
\n
94
\n
At 31 December 2021
371
\n
Comprehensive income for the year
(88)
\n
Income in equity attributable to non-controlling interests
(42)
\n
Other pro\ufb01ts attributable to non-controlling interests
(46)
\n
Distr
ibut
ions
(31)
\n
Other increases
\n
2
\n
98
\n
At 31 December 2022
350
\n
1
Movement related to non-controlling interests from Mox Bank Lim
ited
\n
2
Movements related to non-controlling interests from Mox Bank Lim
ited ($39 m
ill
ion), Trust Bank S
ingapore Lim
ited ($47 m
ill
ion), Zod
ia Markets Holdings Lim
ited
\n
($3 mill
ion), Power2SME Pte L
im
ited ($9 m
ill
ion)", "dimensions": { "concept": "ifrs-full:DisclosureOfNoncontrollingInterestsExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f95114": { "value": "Accounting policy \n
Non-controlling interests are measured at the non-controlling interest\u2019s proportionate share of the acquiree\u2019s ident
i\ufb01able
\nnet\u00a0assets.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTransactionsWithNoncontrollingInterestsExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f95191": { "value": "30. Retirement bene\ufb01t obligat
ions
\n
Accounting policy
\n
The Group operates pension and other post-retirement bene\ufb01t plans around the world, which can be categorised into
\n
de\ufb01ned contribut
ion plans and de\ufb01ned bene\ufb01t plans. For de\ufb01ned contr
ibut
ion plans, the Group pays contr
ibut
ions to
\n
publicly or privately admin
istered pens
ion plans on a statutory or contractual basis, and such amounts are charged to
\n
operating expenses. The Group has no further payment obligat
ions once the contr
ibut
ions have been pa
id.
\n
For funded de\ufb01ned bene\ufb01t plans, the liab
il
ity recognised in the balance sheet is the present value of the de\ufb01ned bene\ufb01t
\n
obligat
ion at the balance sheet date less the fa
ir value of plan assets. For unfunded de\ufb01ned bene\ufb01t plans the liab
il
ity
\n
recognised at the balance sheet date is the present value of the de\ufb01ned bene\ufb01t obligat
ion.
\n
The de\ufb01ned bene\ufb01t obligat
ion
is calculated annually by independent actuaries using the projected unit method.
\n
Actuarial gains and losses that arise are recognised in shareholders\u2019 equity and presented in the statement of other
\n
comprehensive income in the period they arise. The Group determines the net interest expense on the net de\ufb01ned bene\ufb01t
\n
liab
il
ity for the year by applying the discount rate used to measure the de\ufb01ned bene\ufb01t obligat
ion at the beg
inn
ing of the
\n
annual period to the net de\ufb01ned bene\ufb01t liab
il
ity, taking into account any changes in the net de\ufb01ned bene\ufb01t liab
il
ity during
\n
the year as a result of contribut
ions and bene\ufb01t payments. Net
interest expense, the cost of the accrual of new bene\ufb01ts,
\n
bene\ufb01t enhancements (or reductions) and admin
istrat
ion expenses met directly from plan assets are recognised in the
\n
income statement in the period in which they were incurred.
\n
Other accounting estimates and judgements
\n
There are many factors that affect the measurement of the retirement bene\ufb01t obligat
ions. Th
is measurement requires the
\n
use of estimates, such as discount rates, in\ufb02at
ion, pens
ion increases, salary increases, and life expectancies which are
\n
inherently uncertain. Discount rates are determined by reference to market yields at the end of the reporting period on
\n
high-quality corporate bonds (or, in countries where there is no deep market in such bonds, government bonds) of a currency
\n
and term consistent with the currency and term of the post-employment bene\ufb01t obligat
ions. Th
is is the approach adopted
\n
across our geographies. Where there are in\ufb02at
ion-l
inked bonds available (e.g. United Kingdom and the eurozone), the Group
\n
derives in\ufb02at
ion based on the market on those bonds, w
ith the market yield adjusted in respect of the United Kingdom to
\n
take account of the fact that liab
il
it
ies are l
inked to Consumer Price Index in\ufb02at
ion, whereas the reference bonds are l
inked
\n
to Retail Price Index in\ufb02at
ion. Where no
in\ufb02at
ion-l
inked bonds exist, we determine in\ufb02at
ion assumpt
ions based on a
\n
combinat
ion of long-term forecasts and short-term
in\ufb02at
ion data. Salary growth assumpt
ions re\ufb02ect the Group\u2019s long-term
\n
expectations, taking into account future business plans and macroeconomic data (primar
ily expected future long-term
\n
in\ufb02at
ion). Demograph
ic assumptions, includ
ing mortal
ity and turnover rates, are typically set based on the assumptions
\n
used in the most recent actuarial funding valuation, and will generally use industry standard tables, adjusted where
\n
appropriate to re\ufb02ect recent histor
ic exper
ience and/or future expectations. The sensit
iv
ity of the liab
il
it
ies to changes
\n
in these assumptions is shown in the Note below.
\n
Retirement bene\ufb01t obligat
ions compr
ise:
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
De\ufb01ned bene\ufb01t plans obligat
ion
128
192
\n
De\ufb01ned contribut
ion plans obl
igat
ion
18
18
\n
Net obligat
ion
146
210
\n
Retirement bene\ufb01t charge comprises:
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
De\ufb01ned bene\ufb01t plans
58
62
\n
De\ufb01ned contribut
ion plans\u00b9
332
315
\n
Charge against pro\ufb01t (Note 7)
390
377
\n
1
The Group has during the year util
ised aga
inst de\ufb01ned contribut
ion payments, $4 m
ill
ion forfe
ited pension contribut
ions
in respect of employees who left before
\n
their interests vested fully. The residual balance of forfeited contribut
ions
is $17 mill
ion
\n
The Group operates over 60 de\ufb01ned bene\ufb01t plans across its geographies, many of which are closed to new entrants who now
\n
join de\ufb01ned contr
ibut
ion arrangements. The a
im of all these plans is, as part of the Group\u2019s commitment to \ufb01nanc
ial wellbe
ing
\n
for employees, to give employees the opportunity to save appropriately for retirement in a way that is consistent with local
\n
regulations, taxation requirements and market condit
ions. The de\ufb01ned bene\ufb01t plans expose the Group to currency r
isk, interest
\n
rate risk, investment risk and actuarial risks such as longevity risk.
\n
The material holdings of government and corporate bonds shown partially hedge movements in the liab
il
it
ies result
ing from
\n
interest rate and in\ufb02at
ion changes. Sett
ing aside movements from other drivers such as currency \ufb02uctuation, the increases in
\n
discount rates in most geographies over 2022 have led to lower liab
il
it
ies. These have been partly offset by decreases
in the
\n
value of bonds held as well as poor performance of growth assets such as equit
ies and property, lead
ing to a fall in the pension
\n
de\ufb01cit reported. These movements are shown as actuar
ial gains and losses in the tables below. Contribut
ions
into a number of
\n
plans in excess of the amounts required to fund bene\ufb01ts accruing have also helped to reduce the net de\ufb01c
it over the year.
\n
The disclosures required under IAS 19 have been calculated by independent qualif
ied actuar
ies based on the most recent full
\n
actuarial valuations updated, where necessary, to 31 December 2022.
429
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
30. Retirement bene\ufb01t obligat
ions
continued
\n
UK Fund
\n
The Standard Chartered Pension Fund (the \u2018UK Fund\u2019) is the Group\u2019s largest pension plan, representing 53 per cent (31 December
\n
2021: 58 per cent) of total pension liab
il
it
ies. The UK Fund
is set up under a trust that is legally separate from the Bank (its formal
\n
sponsor) and, as required by UK legislat
ion, at least one th
ird of the trustee directors are nominated by members; the remainder
\n
are appointed by the Bank. The trustee directors have a \ufb01duc
iary duty to members and are respons
ible for governing the UK
\n
Fund in accordance with its Trust Deed and Rules.
\n
The UK Fund was closed to new entrants from 1 July 1998 and closed to the accrual of new bene\ufb01ts from 1 April 2018: all UK
\n
employees are now offered membership of a de\ufb01ned contribut
ion plan.
\n
The \ufb01nancial pos
it
ion of the UK Fund
is regularly assessed by an independent qualif
ied actuary. The fund
ing valuation as
\n
at 31\u00a0December 2020 was completed in December 2021 by the Scheme Actuary, T Kripps of Will
is Towers Watson, us
ing
\n
assumptions different from those, and agreed with the UK Fund trustee. It showed that the UK Fund was 92% funded at
\n
that date, revealing a past service de\ufb01c
it of $153 m
ill
ion (\u00a3127 m
ill
ion).
\n
To repair the de\ufb01c
it, three annual cash payments each of $40 m
ill
ion (\u00a332.9 m
ill
ion) were agreed, w
ith the \ufb01rst of these paid
\n
in December 2021, and two further instalments to be paid in December 2022 and December 2023. However, the agreement
\n
allowed that, if the funding posit
ion
improves to being at or near a surplus in future years, the payments due in 2022 and 2023
\n
will be reduced or elim
inated. As a result of the Fund be
ing in surplus at the agreed measurement point of mid-year, no payment
\n
was made in December 2022. As part of the 2020 valuation, in order to provide security for future contribut
ions an add
it
ional
\n
$60 mill
ion nom
inal gilts (\u00a350 mill
ion) were purchased and transferred
into the exist
ing escrow account of $132 m
ill
ion g
ilts
\n
(\u00a3110\u00a0mill
ion), topp
ing it up to $192 mill
ion
\n
The Group has not recognised any addit
ional l
iab
il
ity under IFRIC 14, as the Bank has control of any pension surplus under the
\n
Trust Deed and Rules.
\n
Overseas plans
\n
The princ
ipal overseas de\ufb01ned bene\ufb01t arrangements operated by the Group are
in Hong Kong, India, Jersey, Korea, Taiwan,
\n
United Arab Emirates (UAE) and the United States of America (US). Plans in Hong Kong, India, Korea, Taiwan and UAE remain
\n
open for accrual of future bene\ufb01ts.
\n
Key assumptions
\n
The princ
ipal \ufb01nancial assumpt
ions used at 31 December 2022 were:
\n
Funded plans
\n
UK Fund
Overseas Plans
\n
1
\n
2022
\n
%
\n
2021
\n
%
\n
2022
\n
%
\n
2021
\n
%
\n
Discount rate
4.8
2.0
1.2 \u2013 5.4
0.4 \u2013 3.1
\n
Price In\ufb02ation
2.6
2.6
1.0 \u2013 3.1
1.0 \u2013 3.1
\n
Salary increases
N/A
N/A
3.5 \u2013 4.5
3.5 \u2013 4.5
\n
Pension increases
2.4
2.5
3.1
1.9 \u2013 3.1\u00b2
\n
1
The range of assumptions shown is for the funded de\ufb01ned bene\ufb01t overseas plans in Hong Kong, Jersey, Korea, Taiwan, and the US. These comprise around 75 per
\n
cent of the total liab
il
it
ies of overseas funded plans
\n
2
The range of assumptions shown for 2021 also includes Germany
\n
Unfunded plans
\n
US post-retirement medical
Other
\n
1
\n
2022
\n
%
\n
2021
\n
%
\n
2022
\n
%
\n
2021
\n
%
\n
Discount rate
5.1
3.1
3.7 \u2013 7.6
2.2 \u2013 6.7
\n
Price in\ufb02at
ion
2.5
2.5
2.0 \u2013 4.0
2.0 \u2013 4.0
\n
Salary increases
N/A
N/A
4.0 \u2013 7.8
3.7 \u2013 7.0
\n
Pension increases
N/A
N/A
0.0 \u2013 2.4
0.0 \u2013 2.6
\n
Post-retirement medical rate
7% in 2022
\n
reducing
\n
by 0.5%
\n
per annum to
\n
5% in 2026
\n
7% in 2021
\n
reducing
\n
by 0.5%
\n
per annum to
\n
5% in 2025
\n
N/A
N/A
\n
1
The range of assumptions shown is for the main unfunded de\ufb01ned bene\ufb01t plans in Bahrain, India, Korea, Thailand, UAE and the UK. They comprise around
\n
90\u00a0per\u00a0cent of the total liab
il
it
ies of other unfunded plans
\n
The princ
ipal non-\ufb01nancial assumpt
ions are those made for UK life expectancy. The UK mortality tables are S3PMA for males
\n
and S3PFA for females, projected by year of birth with the CMI 2019 improvement model with a 1.25% annual trend and in
it
ial
\n
addit
ion parameter of 0.25%. Scal
ing factors of 92% for male pensioners, 92% for female pensioners, 92% for male dependants
\n
and 82% for female dependants have been applied.
\n
The resulting assumptions for life expectancy for the UK Fund are that a male member currently aged 60 will live for 27 years
\n
(2021: 27 years) and a female member for 30 years (2021: 30 years) and a male member currently aged 40 will live for 29 years
\n
(2021: 29 years) and a female member for 32 years (2021: 31 years) after their 60th birthdays.
430
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
30. Retirement bene\ufb01t obligat
ions
continued
\n
Both \ufb01nancial and non-\ufb01nancial assumpt
ions can be expected to change in the future, which would affect the value placed on
\n
the liab
il
it
ies. For example, changes at the report
ing date to one of the relevant actuarial assumptions, holding other
\n
assumptions constant, would have affected the de\ufb01ned bene\ufb01t obligat
ion by the amounts shown below:
\n
\u2022
If the discount rate increased by 25 basis points the liab
il
ity would reduce by approximately $30 mill
ion for the UK Fund
\n
(2021: $65 mill
ion) and $15 m
ill
ion for the other plans (2021: $35 m
ill
ion)
\n
\u2022
If the rate of in\ufb02at
ion
increased by 25 basis points the liab
il
ity, allowing for the consequent impact on pension and salary
\n
increases, would increase by approximately $20 mill
ion for the UK Fund (2021: $45 m
ill
ion) and $15 m
ill
ion for the other plans
\n
(2021: $20 mill
ion)
\n
\u2022
If the rate salaries increase compared to in\ufb02at
ion
increased by 25 basis points the liab
il
ity would increase by nil for the
\n
UK Fund (2021: nil) and approximately $10 mill
ion for the other plans (2021: $15 m
ill
ion)
\n
\u2022
If longevity expectations increased by one year the liab
il
ity would increase by approximately $35 mill
ion for the UK Fund
\n
(2021: $80 mill
ion) and $10 m
ill
ion for the other plans (2021: $15 m
ill
ion)
\n
Although this analysis does not take account of the full distr
ibut
ion of cash \ufb02ows expected, it does provide an approximat
ion of
\n
the sensit
iv
ity to the main assumptions. While changes in other assumptions would also have an impact, the effect would not
\n
be as sign
i\ufb01cant.
\n
Pro\ufb01le of plan obligat
ions
\n
Funded plans
Unfunded plans
\n
UK Fund
Overseas
\n
Post-retirement
\n
medical
Other
\n
Duration of the de\ufb01ned bene\ufb01t obligat
ion (
in years)
11
9
8
9
\n
(Duration of the de\ufb01ned bene\ufb01t obligat
ion \u2013 2021)
15
11
9
11
\n
Bene\ufb01ts expected to be paid from plans
\n
Bene\ufb01ts expected to be paid during 2023
75
61
1
16
\n
Bene\ufb01ts expected to be paid during 2024
77
94
1
14
\n
Bene\ufb01ts expected to be paid during 2025
79
71
1
14
\n
Bene\ufb01ts expected to be paid during 2026
81
74
1
15
\n
Bene\ufb01ts expected to be paid during 2027
83
87
1
14
\n
Bene\ufb01ts expected to be paid during 2028 to 2032
449
481
4
70
\n
Fund values:
\n
2022
2021
\n
At 31 December
\n
UK Fund
Overseas plans
UK Fund
\n
Overseas
\n
plans
\n
Quoted
\n
assets
\n
$mill
ion
\n
Unquoted
\n
assets
\n
$mill
ion
\n
Total assets
\n
$mill
ion
\n
Quoted
\n
assets
\n
$mill
ion
\n
Unquoted
\n
assets
\n
$mill
ion
\n
Total assets
\n
$mill
ion
\n
Total assets
\n
$mill
ion
\n
Total assets
\n
$mill
ion
\n
Equit
ies
2
\u2013
2
223
\u2013
223
145
306
\n
Government bonds
206
\u2013
206
160
\u2013
160
695
224
\n
Corporate bonds
309
82
391
116
\u2013
116
610
164
\n
Absolute Return Fund
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
91
\u2013
\n
Hedge funds
\u2013
14
14
\u2013
\u2013
\u2013
19
\u2013
\n
Infrastructure
\u2013
177
177
\u2013
\u2013
\u2013
87
\u2013
\n
Property
\u2013
126
126
\u2013
\u2013
\u2013
127
11
\n
Derivat
ives
2
\u2013
2
\u2013
\u2013
\u2013
10
\u2013
\n
Cash and equivalents
257
\u2013
257
35
221
256
108
260
\n
Others
7
4
11
\u2013
63
63
18
67
\n
Total fair value of assets
\n
1
\n
783
403
1,186
534
284
818
1,910
1,032
\n
1
Self-investment is monitored closely and is less than $1 mill
ion of Standard Chartered equ
it
ies and bonds for 2022 (2021: <$1 m
ill
ion). Self-
investment is only allowed
\n
where it is not practical to exclude it \u2013 for example through investment in index-tracking funds where the Group is a constituent of the relevant index
\n
At 31 December
\n
2022
2021
\n
Funded plans
Unfunded plans
Funded plans
Unfunded plans
\n
UK Fund
\n
$mill
ion
\n
Overseas
\n
plans
\n
$mill
ion
\n
Post-
\n
retirement
\n
medical
\n
$mill
ion
\n
Other
\n
$mill
ion
\n
UK Fund
\n
$mill
ion
\n
Overseas
\n
plans
\n
$mill
ion
\n
Post-
\n
retirement
\n
medical
\n
$mill
ion
\n
Other
\n
$mill
ion
\n
Total fair value of assets
1,186
818
N/A
N/A
1,910
1,032
N/A
N/A
\n
Present value of liab
il
it
ies
(1,138)
(817)
(10)
(167)
(1,822)
(1,076)
(13)
(223)
\n
Net pension plan asset/(obligat
ion)
48
1
(10)
(167)
88
(44)
(13)
(223)
431
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
30. Retirement bene\ufb01t obligat
ions
continued
\n
The pension cost for de\ufb01ned bene\ufb01t plans was:
\n
2022
\n
Funded plans
Unfunded plans
\n
UK Fund
\n
$mill
ion
\n
Overseas plans
\n
$mill
ion
\n
Post-retirement
\n
medical
\n
$mill
ion
\n
Other
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Current service cost
\n
1
\n
\u2013
47
\u2013
6
53
\n
Past service cost and curtailments
\n
2
\n
\u2013
2
\u2013
\u2013
2
\n
Settlement cost
\n
2
\n
\u2013
\u2013
\u2013
\u2013
\u2013
\n
Interest income on pension plan assets
(34)
(32)
\u2013
\u2013
(66)
\n
Interest on pension plan liab
il
it
ies
33
31
\u2013
5
69
\n
Total charge to pro\ufb01t before deduction of tax
(1)
48
\u2013
11
58
\n
Net losses on plan assets
\n
3
\n
486
113
\u2013
\u2013
599
\n
Gains on liab
il
it
ies
(453)
(143)
(2)
(42)
(640)
\n
Total losses/(gains) recognised directly in statement
\n
of comprehensive income before tax
33
(30)
(2)
(42)
(41)
\n
Deferred taxation
7
13
\u2013
\u2013
20
\n
Total losses/(gains) after tax
40
(17)
(2)
(42)
(21)
\n
1
Includes admin
istrat
ive expenses paid out of plan assets of $1 mill
ion (2021: $1 m
ill
ion)
\n
2
Includes various small costs and gains from plan amendments and settlements in India, Kenya, Maurit
ius, South Korea and Sr
i Lanka
\n
3
The actual return on the UK Fund assets was a loss of $452 mill
ion and on overseas plan assets was a loss of $82 m
ill
ion
\n
2021
\n
Funded plans
Unfunded plans
\n
UK Fund
\n
$mill
ion
\n
Overseas plans
\n
$mill
ion
\n
Post-retirement
\n
medical
\n
$mill
ion
\n
Other
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Current service cost
\n
1
\n
\u2013
55
\u2013
9
64
\n
Past service cost and curtailments
\n
2
\n
\u2013
(1)
\u2013
(4)
(5)
\n
Settlement cost
\n
2
\n
\u2013
(3)
\u2013
(1)
(4)
\n
Interest income on pension plan assets
(26)
(27)
\u2013
\u2013
(53)
\n
Interest on pension plan liab
il
it
ies
27
29
\u2013
4
60
\n
Total charge to pro\ufb01t before deduction of tax
1
53
\u2013
8
62
\n
Net gains on plan assets
\n
3
\n
(6)
(65)
\u2013
\u2013
(71)
\n
Gains on liab
il
it
ies
(87)
(10)
(2)
(9)
(108)
\n
Total gains recognised directly in statement of
\n
comprehensive income before tax
(93)
(75)
(2)
(9)
(179)
\n
Deferred taxation
\u2013
17
\u2013
\u2013
17
\n
Total gains after tax
(93)
(58)
(2)
(9)
(162)
\n
1
Includes admin
istrat
ive expenses paid out of plan assets of $1 mill
ion (2020: $2 m
ill
ion)
\n
2
Includes various small costs and gains from plan amendments and settlements in India, Kenya, South Korea and Sri Lanka
\n
3
The actual return on the UK Fund assets was a gain of $32 mill
ion and on overseas plan assets was a ga
in of $92 mill
ion
\n
Movement in the de\ufb01ned bene\ufb01t pension plans and post-retirement medical de\ufb01c
it dur
ing the year comprise:
\n
Funded plans
Unfunded plans
\n
UK Fund
\n
$mill
ion
\n
Overseas plans
\n
$mill
ion
\n
Post-retirement
\n
medical
\n
$mill
ion
\n
Other
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Surplus/(de\ufb01cit) at January 2022
88
(44)
(13)
(223)
(192)
\n
Contribut
ions
\u2013
67
1
12
80
\n
Current service cost
\n
1
\n
\u2013
(47)
\u2013
(6)
(53)
\n
Past service cost and curtailments
\u2013
(2)
\u2013
\u2013
(2)
\n
Settlement costs and transfers impact
\u2013
\u2013
\u2013
\u2013
\u2013
\n
Net interest on the net de\ufb01ned bene\ufb01t asset/liab
il
ity
1
1
\u2013
(5)
(3)
\n
Actuarial(losses)/gains
(33)
30
2
42
41
\n
Assets held for sale
\n
3
\n
\u2013
(4)
\u2013
2
(2)
\n
Exchange rate adjustment
(8)
\u2013
\u2013
11
3
\n
Surplus/(de\ufb01cit) at 31 December 2022\u00b2
48
1
(10)
(167)
(128)
\n
1
Includes admin
istrat
ive expenses paid out of plan assets of $1 mill
ion (2021: $1 m
ill
ion)
\n
2
The de\ufb01cit total of $128 m
ill
ion
is made up of plans in de\ufb01c
it of $248 m
ill
ion (2021: $355 m
ill
ion) net of plans
in surplus with assets totalling $120 mill
ion
\n
(2021: $163 mill
ion)
\n
3
Assets held for sale includes funded and unfunded plans in Cameroon, Cote D\u2019Ivoire, Jordan and Zimbabwe
\n\n
432
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
30. Retirement bene\ufb01t obligat
ions
continued
\n
Funded plans
Unfunded plans
\n
UK Fund
\n
$mill
ion
\n
Overseas plans
\n
$mill
ion
\n
Post-retirement
\n
medical
\n
$mill
ion
\n
Other
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
(De\ufb01cit)/surplus at January 2021
(48)
(124)
(16)
(246)
(434)
\n
Contribut
ions
45
58
1
18
122
\n
Current service cost
\n
1
\n
\u2013
(55)
\u2013
(9)
(64)
\n
Past service cost and curtailments
\u2013
1
\u2013
4
5
\n
Settlement costs and transfers impact
\u2013
3
\u2013
1
4
\n
Net interest on the net de\ufb01ned bene\ufb01t asset/liab
il
ity
(1)
(2)
\u2013
(4)
(7)
\n
Actuarial gains
93
75
2
9
179
\n
Adjustment for Indonesia scheme
\u2013
\u2013
\u2013
\u2013
\u2013
\n
Exchange rate adjustment
(1)
\u2013
\u2013
4
3
\n
Surplus/(de\ufb01cit) at 31 December 2021
\n
2
\n
88
(44)
(13)
(223)
(192)
\n
1
Includes admin
istrat
ive expenses paid out of plan assets of $1 mill
ion (2020: $2 m
ill
ion)
\n
2
The de\ufb01cit total of $192 m
ill
ion
is made up of plans in de\ufb01c
it of $355 m
ill
ion (2020: $476 m
ill
ion) net of plans
in surplus with assets totalling $163 mill
ion
\n
(2020: $42 mill
ion)
\n
The Group\u2019s expected contribut
ion to
its de\ufb01ned bene\ufb01t pension plans in 2023 is $61 mill
ion.
\n
2022
2021
\n
Assets
\n
$mill
ion
\n
Obligat
ions
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Assets
\n
$mill
ion
\n
Obligat
ions
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
At 1 January 2022
2,942
(3,134)
(192)
2,957
(3,391)
(434)
\n
Contribut
ions
\n
1
\n
81
(1)
80
123
(1)
122
\n
Current service cost
\n
2
\n
\u2013
(53)
(53)
\u2013
(64)
(64)
\n
Past service cost and curtailments
\u2013
(2)
(2)
\u2013
5
5
\n
Settlement costs & impact of transfers
\n
3
\n
(5)
5
\u2013
10
(6)
4
\n
Interest cost on pension plan liab
il
it
ies
\u2013
(69)
(69)
\u2013
(60)
(60)
\n
Interest income on pension plan assets
66
\u2013
66
53
\u2013
53
\n
Bene\ufb01ts paid out
\n
2
\n
(176)
176
\u2013
(220)
220
\u2013
\n
Actuarial (losses)/gains
\n
4
\n
(599)
640
41
71
108
179
\n
Assets held for sale
(18)
16
(2)
\u2013
\u2013
\u2013
\n
Exchange rate adjustment
(287)
290
3
(52)
55
3
\n
At 31 December 2022
2,004
(2,132)
(128)
2,942
(3,134)
(192)
\n
1
Includes employee contribut
ions of $1 m
ill
ion (2021: $1 m
ill
ion)
\n
2
Includes admin
istrat
ive expenses paid out of plan assets of $1 mill
ion (2021: $1 m
ill
ion)
\n
3
Impact of settlements relates to the buyout of a pension plan in Switzerland which was agreed in December.
\n
4 Actuarial gain on obligat
ion compr
ises of $708 mill
ion ga
in (2021: $108 mill
ion ga
in) from \ufb01nanc
ial assumpt
ion changes, $9 mill
ion ga
in (2021: $3 mill
ion ga
in) from
\n
demographic assumption changes and $77 mill
ion loss (2021: $3 m
ill
ion loss) from exper
ience", "dimensions": { "concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f95196": { "value": "Accounting policy \n
The Group operates pension and other post-retirement bene\ufb01t plans around the world, which can be categorised into
\n
de\ufb01ned contribut
ion plans and de\ufb01ned bene\ufb01t plans. For de\ufb01ned contr
ibut
ion plans, the Group pays contr
ibut
ions to
\n
publicly or privately admin
istered pens
ion plans on a statutory or contractual basis, and such amounts are charged to
\n
operating expenses. The Group has no further payment obligat
ions once the contr
ibut
ions have been pa
id.
\n
For funded de\ufb01ned bene\ufb01t plans, the liab
il
ity recognised in the balance sheet is the present value of the de\ufb01ned bene\ufb01t
\n
obligat
ion at the balance sheet date less the fa
ir value of plan assets. For unfunded de\ufb01ned bene\ufb01t plans the liab
il
ity
\n
recognised at the balance sheet date is the present value of the de\ufb01ned bene\ufb01t obligat
ion.
\n
The de\ufb01ned bene\ufb01t obligat
ion
is calculated annually by independent actuaries using the projected unit method.
\n
Actuarial gains and losses that arise are recognised in shareholders\u2019 equity and presented in the statement of other
\n
comprehensive income in the period they arise. The Group determines the net interest expense on the net de\ufb01ned bene\ufb01t
\n
liab
il
ity for the year by applying the discount rate used to measure the de\ufb01ned bene\ufb01t obligat
ion at the beg
inn
ing of the
\n
annual period to the net de\ufb01ned bene\ufb01t liab
il
ity, taking into account any changes in the net de\ufb01ned bene\ufb01t liab
il
ity during
\n
the year as a result of contribut
ions and bene\ufb01t payments. Net
interest expense, the cost of the accrual of new bene\ufb01ts,
\n
bene\ufb01t enhancements (or reductions) and admin
istrat
ion expenses met directly from plan assets are recognised in the
\n
income statement in the period in which they were incurred.
\n
Other accounting estimates and judgements
\n
There are many factors that affect the measurement of the retirement bene\ufb01t obligat
ions. Th
is measurement requires the
\n
use of estimates, such as discount rates, in\ufb02at
ion, pens
ion increases, salary increases, and life expectancies which are
\n
inherently uncertain. Discount rates are determined by reference to market yields at the end of the reporting period on
\n
high-quality corporate bonds (or, in countries where there is no deep market in such bonds, government bonds) of a currency
\n
and term consistent with the currency and term of the post-employment bene\ufb01t obligat
ions. Th
is is the approach adopted
\n
across our geographies. Where there are in\ufb02at
ion-l
inked bonds available (e.g. United Kingdom and the eurozone), the Group
\n
derives in\ufb02at
ion based on the market on those bonds, w
ith the market yield adjusted in respect of the United Kingdom to
\n
take account of the fact that liab
il
it
ies are l
inked to Consumer Price Index in\ufb02at
ion, whereas the reference bonds are l
inked
\n
to Retail Price Index in\ufb02at
ion. Where no
in\ufb02at
ion-l
inked bonds exist, we determine in\ufb02at
ion assumpt
ions based on a
\n
combinat
ion of long-term forecasts and short-term
in\ufb02at
ion data. Salary growth assumpt
ions re\ufb02ect the Group\u2019s long-term
\n
expectations, taking into account future business plans and macroeconomic data (primar
ily expected future long-term
\n
in\ufb02at
ion). Demograph
ic assumptions, includ
ing mortal
ity and turnover rates, are typically set based on the assumptions
\n
used in the most recent actuarial funding valuation, and will generally use industry standard tables, adjusted where
\n
appropriate to re\ufb02ect recent histor
ic exper
ience and/or future expectations. The sensit
iv
ity of the liab
il
it
ies to changes
\nin these assumptions is shown in the Note below.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f96583": { "value": "31. Share-based payments \n
Accounting policy
\n
The Group operates equity-settled and cash-settled share-based compensation plans. The fair value of the employee
\n
services (measured by the fair value of the awards granted) received in exchange for the grant of the shares and awards is
\n
recognised as an expense. For deferred share awards granted as part of an annual performance award, the expense is
\n
recognised over the period from the start of the performance period to the vesting date. For example, the expense for
\n
three-year awards granted in 2023 in respect of 2022 performance, which vest in 2024-2026, is recognised as an expense over
\n
the period from 1 January 2022 to the vesting dates in 2024-2026. For all other awards, the expense is recognised over the
\n
period from the date of grant to the vesting date.
\n
For equity-settled awards, the total amount to be expensed over the vesting period is determined by reference to the fair
\n
value of the shares and awards at the date of grant, which excludes the impact of any non-market vesting condit
ions (for
\n
example, pro\ufb01tabil
ity and growth targets). The fair value of equity instruments granted is based on market prices, if
\n
available, at the date of grant. In the absence of market prices, the fair value of the instruments is estimated using an
\n
appropriate valuation technique, such as a binom
ial opt
ion pric
ing model. Non-market vest
ing condit
ions are
included in
\n
assumptions for the number of shares and awards that are expected to vest.
\n
At each balance sheet date, the Group revises its estimates of the number of shares and awards that are expected to vest. It
\n
recognises the impact of the revis
ion of or
ig
inal est
imates, if any, in the income statement and a corresponding adjustment
\n
to equity over the remain
ing vest
ing period. Forfeitures prior to vesting attributable to factors other than the failure to satisfy
\n
service condit
ions and non-market vest
ing condit
ions are treated as a cancellat
ion and the remain
ing unamort
ised charge
\n
is debited to the income statement at the time of cancellation. The proceeds received net of any directly attributable
\n
transaction costs are credited to share capital (nominal value) and share premium when awards in the form of options
\n
are exercised.
\n
Cash-settled awards are revalued at each balance sheet date and a liab
il
ity recognised on the balance sheet for all unpaid
\n
amounts, with any changes in fair value charged or credited to staff costs in the income statement until the awards are
\n
exercised. Where forfeitures occur prior to vesting that are attributable to factors other than a failure to satisfy service
\n
condit
ions or market-based performance cond
it
ions, the cumulat
ive charge incurred up to the date of forfeiture is credited
\n
to the income statement. Any revaluation related to cash-settled awards is recorded as an amount due from subsid
iary
\n
undertakings.
\n
Other accounting estimates and judgements
\n
Share-based payments involve judgement and estimat
ion uncerta
inty in determin
ing the expenses and carry
ing values of
\n
share awards at the balance sheet date.
\n
\u2022
LTIP awards are determined using an estimat
ion of the probab
il
ity of meet
ing certain metrics over a three-year
\n
performance period using the Monte Carlo simulat
ion model.
\n
\u2022
Deferred shares and restricted shares are determined using an estimat
ion of expected d
iv
idends.
\n
\u2022
The 2013 Sharesave Plan valuation is determined using a binom
ial opt
ion-pric
ing model.
\n
The Group operates a number of share-based arrangements for its executive directors and employees. Details of the share-
\n
based payment charge are set out below.
\n
2022\u00b9
2021\u00b9
\n
Cash
\n
$mill
ion
\n
Equity
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Cash
\n
$mill
ion
\n
Equity
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Deferred share awards
16
92
108
9
81
90
\n
Other share awards
20
71
91
10
67
77
\n
Total share-based payments
36
163
199
19
148
167
\n
1
No forfeiture assumed
\n
2021 Standard Chartered Share Plan (the \u20182021 Plan\u2019) and 2011 Standard Chartered Share Plan (the \u20182011 Plan\u2019)
\n
The 2021 Plan was approved by shareholders in May 2021 and is the Group\u2019s main share plan, replacing the 2011 Plan for new
\n
awards, June 2021. It may be used to deliver various types of share awards to employees and former employees of the Group,
\n
includ
ing d
irectors and former executive directors:
\n
\u2022
Long Term Incentive Plan (LTIP) awards: granted with vesting subject to performance measures. Performance measures
\n
attached to awards granted previously include: relative total shareholder return (TSR); return on tangible equity (RoTE) (with
\n
a Common Equity Tier 1 (CET1) underpin); and strategic measures. Each measure is assessed independently over a three-year
\n
period. LTIP awards have an ind
iv
idual conduct gateway requirement that results in the award lapsing if not met
\n
\u2022
Deferred awards are used to deliver the deferred portion of variable remuneration, in line with both market practice and
\n
regulatory requirements. These awards vest in instalments on anniversar
ies of the award date spec
if
ied at the t
ime of grant.
\n
Deferred awards are not subject to any plan lim
it. Th
is enables the Group to meet regulatory requirements relating to deferral
\n
levels, and is in line with market practice
434
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
31. Share-based payments
continued
\n
\u2022
Restricted share awards, made outside of the annual performance process as replacement buy-out awards to new jo
iners
\n
who forfeit awards on leaving their previous employers, vest in instalments on the anniversar
ies of the award date spec
if
ied
\n
at the time of grant. This enables the Group to meet regulatory requirements relating to buy-outs, and is in line with market
\n
practice. In line with sim
ilar plans operated by our compet
itors, restricted share awards are not subject to an annual lim
it and
\n
do not have any performance measures
\n
Under the 2021 Plan and 2011 Plan, no grant price is payable to receive an award. The remain
ing l
ife of the 2021 Plan during
\n
which new awards can be made is nine years. The 2011 Plan has expired and no further awards will be granted under this plan.
\n
Valuation \u2013 LTIP awards
\n
The vesting of awards granted in both 2022 and 2021 is subject to relative TSR performance measures, achievement of a
\n
strategic scorecard and satisfact
ion of RoTE (subject to a cap
ital CET1 underpin). The vesting of awards also have addit
ional
\n
condit
ions under strateg
ic measures related to targets set for sustainab
il
ity linked to business strategy. The fair value of the TSR
\n
component is calculated using the probabil
ity of meet
ing the measures over a three-year performance period, using a Monte
\n
Carlo simulat
ion model. The number of shares expected to vest
is evaluated at each reporting date, based on the expected
\n
performance against the RoTE and strategic measures in the scorecard, to determine the accounting charge.
\n
No div
idend equ
ivalents accrue for the LTIP awards made in 2022 or 2021 and the fair value takes this into account, calculated
\n
by reference to market consensus div
idend y
ield.
\n
2022
2021
\n
Grant date
14\u2013March
15\u2013March
\n
Share price at grant date (\u00a3)
4.88
4.9
\n
Vesting period (years)
3\u2013Jul
3\u2013Jul
\n
Expected div
ided y
ield (%)
3.4
3.4
\n
Fair value (RoTE) (\u00a3)
1.24, 1.20
1.25, 1.20
\n
Fair value (TSR) (\u00a3)
0.70, 0.68
0.72, 0.71
\n
Fair value (Strategic) (\u00a3)
1.65, 1.60
1.66, 1.60
\n
Valuation \u2013 deferred shares and restricted shares
\n
The fair value for deferred awards which are not granted to material risk takers is based on 100 per cent of the face value of the
\n
shares at the date of grant as the share price will re\ufb02ect expectations of all future div
idends. For awards granted to mater
ial risk
\n
takers in 2022, the fair value of awards takes into account the lack of div
idend equ
ivalents, calculated by reference to market
\n
consensus div
idend y
ield.
\n
Deferred share awards
\n
Grant date
\n
2022
\n
09 November
20 June
14 March
\n
Share price at grant date (\u00a3)
5.62
6.04
4.88
\n
Vesting period (years)
\n
Expected
\n
div
idend y
ield
\n
(%)
\n
Fair value
\n
(\u00a3)
\n
Expected
\n
div
idend y
ield
\n
(%)
\n
Fair value
\n
(\u00a3)
\n
Expected
\n
div
idend y
ield
\n
(%)
\n
Fair value
\n
(\u00a3)
\n
1-3 years
N/A
5.62
N/A
6.04
N/A
4.88
\n
1-5 years
3.4
5.17
3.4, 3.4
5.56, 5.56
N/A, 3.4,
\n
3.4, 3.4
\n
4.88, 4.48,
\n
4.41, 4.34
\n
3-7 years
\u2013
\u2013
\u2013
\u2013
3.4,3.4,3.4
4.48, 4.13,
\n
3.99
\n
Grant date
\n
2021
\n
21 June
15 March
\n
Share price at grant date (\u00a3)
4.69
4.90
\n
Vesting period (years)
\n
Expected
\n
div
idend y
ield
\n
(%)
\n
Fair value
\n
(\u00a3)
\n
Expected
\n
div
idend y
ield
\n
(%)
\n
Fair value
\n
(\u00a3)
\n
1-3 years
N/A, 3.4
4.69, 4.24
N/A, 3.4, 3.4
4.90, 4.58, 4.43
\n
1-5 years
3.4
4.17
3.4, 3.4, 3.4
4.43, 4.36, 4.29
\n
3-7 years
\u2013
\u2013
3.4, 3.4
4.15, 4.01
435
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
31. Share-based payments
continued
\n
Other restricted share awards
\n
Grant date
\n
2022
\n
28-Nov
09-Nov
20-Jun
14-Mar
\n
Share price at grant date (\u00a3)
5.90
5.62
6.04
4.88
\n
Vesting period (years)
\n
Expected
\n
div
idend
\n
yield
\n
(%)
\n
Fair value
\n
(\u00a3)
\n
Expected
\n
div
idend
\n
yield
\n
(%)
\n
Fair value
\n
(\u00a3)
\n
Expected
\n
div
idend
\n
yield
\n
(%)
\n
Fair value
\n
(\u00a3)
\n
Expected
\n
div
idend
\n
yield
\n
(%)
\n
Fair value
\n
(\u00a3)
\n
4 months
3.4
5.56
\n
1 year
3.4
5.71
3.4
5.44
3.4
5.84
3.4
4.72
\n
1.4 years
3.4
5.38
3.4
3.4
\n
2 years
3.4
5.52
3.4
5.26
3.4
5.65
3.4
4.56
\n
2.4 years
3.4
5.2
3.4
3.4
\n
3 years
3.4
5.34
3.4
5.08
3.4
5.46
3.4
4.41
\n
4 years
3.4
5.16
3.4
4.92
3.4
5.28
3.4
4.27
\n
5 years
3.4
4.99
3.4
5.11
3.4
4.13
\n
6 years
3.4
3.99
\n
Grant date
\n
2021
\n
30 September
21 June
15 March
\n
Share price at grant date (\u00a3)
4.37
4.69
4.90
\n
Vesting period (years)
\n
Expected
\n
div
idend
\n
yield
\n
(%)
\n
Fair value
\n
(\u00a3)
\n
Expected
\n
div
idend
\n
yield
\n
(%)
\n
Fair value
\n
(\u00a3)
\n
Expected
\n
div
idend
\n
yield
\n
(%)
\n
Fair value
\n
(\u00a3)
\n
1 year
3.4
4.23
3.4
4.53
3.4
4.74
\n
2 years
3.4
4.09
3.4
4.38
3.4
4.58
\n
3 years
3.4
3.95
3.4
4.24
3.4
4.43
\n
4 years
3.4
3.82
3.4
4.10
3.4
4.29
\n
5 years
3.4
3.70
\u2013
\u2013
\u2013
\u2013
\n
All Employee Sharesave Plans
\n
2013 Sharesave Plan
\n
Under the 2013 Sharesave Plan, employees may open a savings contract. Employees can save up to \u00a3250 per month over three
\n
years to purchase ordinary shares in the Company at a discount of up to 20 per cent on the share price at the date of inv
itat
ion
\n
(the \u2018option exercise price\u2019), after which they have a period of six months to exercise the option. There are no performance
\n
measures attached to options granted under the 2013 Sharesave Plan and no grant price is payable to receive an option.
\n
In some countries in which the Group operates, it is not possible to operate Sharesave plans, typically due to securit
ies law
\n
and regulatory restrict
ions. In these countr
ies, where possible, the Group offers an equivalent cash-based alternative to
\n
its employees.
\n
The 2013 Sharesave Plan was approved by shareholders in May 2013, and expires in May 2023. A new Sharesave plan will be
\n
taken to shareholders for approval at the Annual General Meeting in May 2023.
\n
Valuation \u2013 Sharesave:
\n
Options under the Sharesave plans are valued using a binom
ial opt
ion-pric
ing model. The same fa
ir value is applied to all
\n
employees includ
ing execut
ive directors. The fair value per option granted and the assumptions used in the calculation are
\n
as\u00a0follows:
\n
All Employee Sharesave Plan (Sharesave)
\n
2022
2021
\n
Grant date
28 November
30 September
\n
Share price at grant date (\u00a3)
5.80
4.37
\n
Exercise price (\u00a3)
4.23
3.67
\n
Vesting period (years)
3
3
\n
Expected volatil
ity (%)
39.3
35.1
\n
Expected option life (years)
3.33
3.33
\n
Risk-free rate (%)
3.21
0.42
\n
Expected div
idend y
ield (%)
3.4
3.4
\n
Fair value (\u00a3)
2.08
1.11
\n
The expected volatil
ity
is based on histor
ical volat
il
ity over the last three years, or three years pr
ior to grant. The expected life
\n
is the average expected period to exercise. The risk-free rate of return is the yield on zero-coupon UK Government bonds of
\n
a term consistent with the assumed option life. The expected div
idend y
ield is calculated by reference to market consensus
\n
div
idend y
ield.
436
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
31. Share-based payments
continued
\n
Lim
its
\n
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
\n
number of Standard Chartered PLC ordinary shares allocated in the period of 10 calendar years ending with that calendar year
\n
under the 2021 Plan and under any other discret
ionary share plan operated by Standard Chartered PLC to exceed such number
\n
as represents 5 per cent of the ordinary share capital of Standard Chartered PLC in issue at that time.
\n
An award shall not be granted under the 2021 Plan or 2013 Sharesave Plan in any calendar year if, at the time of its proposed
\n
grant, it would cause the number of Standard Chartered PLC ordinary shares allocated in the period of 10 calendar years ending
\n
with that calendar year under the 2021 Plan or 2013 Sharesave Plan and under any other employee share plan operated by
\n
Standard Chartered PLC to exceed such number as represents 10 per cent of the ordinary share capital of Standard Chartered
\n
PLC in issue at that time.
\n
An award shall not be granted under the 2021 Plan or 2013 Sharesave Plan in any calendar year if, at the time of its proposed
\n
grant, it would cause the number of Standard Chartered PLC ordinary shares which may be issued or transferred pursuant to
\n
awards then outstanding under the 2021 Plan or 2013 Sharesave Plan as relevant to exceed such number as represents 10 per
\n
cent of the ordinary share capital of Standard Chartered PLC in issue at that time.
\n
The number of Standard Chartered PLC ordinary shares which may be issued pursuant to awards granted under the 2021 Plan
\n
in any 12-month period must not exceed such number as represents 1 per cent of the ordinary share capital of Standard
\n
Chartered PLC in issue at that time. The number of Standard Chartered PLC ordinary shares which may be issued pursuant to
\n
awards granted under the 2013 Sharesave Plan in any 12-month period must not exceed such number as represents 1 per cent
\n
of the ordinary share capital of Standard Chartered PLC in issue at that time.
\n
Standard Chartered PLC has been granted a waiver from strict compliance with Rules 17.03(3), 17.03(9) and 17.03(18) of the Rules
\n
Governing the List
ing of Secur
it
ies on the Stock Exchange of Hong Kong. Deta
ils are set out in the market announcement made
\n
on 5 May 2021.
\n
Reconcil
iat
ion of share award movements for the year to 31 December 2022
\n
2011 Plan
\n
1
\n
Sharesave
\n
Weighted
\n
average
\n
Sharesave
\n
exercise price
\n
(\u00a3)
LTIP
\n
Deferred /
\n
Restricted shares
\n
Outstanding at 1 January 2022
11,627,751
39,718,654
16,897,075
3.95
\n
Granted
\n
2,3
\n
3,066,288
25,037,706
5,777,197
\u2013
\n
Lapsed
(2,927,828)
(1,121,849)
(2,700,678)
4.29
\n
Exercised
(426,260)
(17,185,471)
(2,864,075)
5.03
\n
Outstanding at 31 December 2022
11,339,951
46,449,040
17,109,519
3.81
\n
Total number of securit
ies ava
ilable for issue under the plan
11,339,951
46,449,040
17,109,519
\n
Percentage of the issued shares this represents as at 31 December 2022
0.39
1.60
0.59
3.81
\n
Exercisable as at 31 December 2022
\u2013
1,191,693
1,699,772
4.96
\n
Range of exercise prices (\u00a3)\u00b3
\u2013
\u2013
3.14 \u2013 5.13
\u2013
\n
Intrins
ic value of vested but not exerc
ised options ($ mill
ion)
0.02
8.93
2.59
\n
Weighted average contractual remain
ing l
ife (years)
7.88
8.25
2.27
\n
Weighted average share price for awards exercised during the period (\u00a3)
5.09
4.93
5.94
\n
1
Granted under the 2021 Plan and 2011 Plan. Employees do not contribute to the cost of these awards.
\n
2
3,048,826 (LTIP) granted on 14 March 2022, 14,989 (LTIP) granted as a notional div
idend on 1 March 2022, 2,473 (LTIP) granted as a not
ional div
idend on 8 August
\n
2022, 23,434,127 (Deferred/Restricted shares) granted on 14 March 2022, 77,479 (Deferred/Restricted shares) granted as a notional div
idend on 1 March 2022,
\n
584,322 (DRSA/RSA) granted on 20 June 2022, 43,918 (Deferred/Restricted shares) granted as a notional div
idend on 8 August 2022, 771,103 (Deferred/Restr
icted
\n
shares) granted on 9 November 2022, 126,757 (Deferred/Restricted shares) granted on 28 November 2022 under the 2021 Plan. 5,777,197 (Sharesave) granted on
\n
28 November 2022 under the 2013 Sharesave Plan.
\n
3
For Sharesave granted in 2022 the exercise price is \u00a34.23 per share, a 20% discount from the closing price on 1 November 2022. The closing price on 1 November
\n
2022 was \u00a35.282.
437
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
31. Share-based payments
continued
\n
Reconcil
iat
ion of share award movements for the year to 31 December 2021
\n
2011 Plan
\n
1
\n
Sharesave
\n
Weighted
\n
average
\n
Sharesave
\n
exercise price
\n
(\u00a3)
LTIP
\n
Deferred/
\n
Restricted
\n
shares
\n
Outstanding at 1 January 2021
22,918,242
39,543,548
16,591,704
4.31
\n
Granted
\n
2,3
\n
4,038,071
17,113,973
4,274,039
\u2013
\n
Lapsed
(15,005,847)
(1,018,379)
(3,964,053)
5.16
\n
Exercised
(322,715)
(15,920,488)
(4,615)
3.53
\n
Outstanding at 31 December 2021
11,627,751
39,718,654
16,897,075
3.95
\n
Total number of securit
ies ava
ilable for issue under the plan
11,627,751
39,718,654
16,897,075
\n
Percentage of the issued shares this represents as at 31 December 2021
0.40%
1.30%
0.50%
3.95
\n
Exercisable as at 31 December 2021
3,952
1,701,506
2,571,103
4.96
\n
Range of exercise prices (\u00a3)
\n
3
\n
\u2013
\u2013
3.14 \u2013 6.20
\u2013
\n
Intrins
ic value of vested but not exerc
ised options ($ mill
ion)
0.02
10.33
0.38
\n
Weighted average contractual remain
ing l
ife (years)
7.85
8.12
2.18
\n
Weighted average share price for awards exercised during the period (\u00a3)
4.97
4.89
4.66
\n
1
Employees do not contribute towards the cost of these awards
\n
2
16,704,511 (DRSA/RSA) granted on 15 March 2021, 94,954 (DRSA/RSA) granted as notional div
idend on 01 March 2021, 4,023,843 (LTIP) granted on 15 March 2021,
\n
10,954 (LTIP) granted as notional div
idend on 01 March 2021, 197,111 (DRSA/RSA) granted on 21 June 2021. 34,606 (DRSA/RSA) granted as not
ional div
idend on
\n
13 August 2021, 3,274 (LTIP) granted as notional div
idend on 13 August 2021, 82,791 (RSA) granted on 30 September 2021, 4,274,039 (Sharesave) granted on
\n
30\u00a0September 2021. LTIP and DRSA/RSA awards granted in March 2021 were granted under the 2011 Plan, and DRSA/RSA awards granted in June and September
\n
2021 were granted under the 2021 Plan. Notional div
idends were granted under the 2011 Plan. Sharesave opt
ions granted in 2021 were granted under the 2013
\n
Sharesave Plan
\n
3
For Sharesave granted in 2021 the exercise price is \u00a33.67 per share, which was a 20% discount to the closing share price on 27 August 2021. The closing share price
\non 27 August 2021 was of \u00a34.578", "dimensions": { "concept": "ifrs-full:DisclosureOfSharebasedPaymentArrangementsExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f96587": { "value": "Accounting policy \n
The Group operates equity-settled and cash-settled share-based compensation plans. The fair value of the employee
\n
services (measured by the fair value of the awards granted) received in exchange for the grant of the shares and awards is
\n
recognised as an expense. For deferred share awards granted as part of an annual performance award, the expense is
\n
recognised over the period from the start of the performance period to the vesting date. For example, the expense for
\n
three-year awards granted in 2023 in respect of 2022 performance, which vest in 2024-2026, is recognised as an expense over
\n
the period from 1 January 2022 to the vesting dates in 2024-2026. For all other awards, the expense is recognised over the
\n
period from the date of grant to the vesting date.
\n
For equity-settled awards, the total amount to be expensed over the vesting period is determined by reference to the fair
\n
value of the shares and awards at the date of grant, which excludes the impact of any non-market vesting condit
ions (for
\n
example, pro\ufb01tabil
ity and growth targets). The fair value of equity instruments granted is based on market prices, if
\n
available, at the date of grant. In the absence of market prices, the fair value of the instruments is estimated using an
\n
appropriate valuation technique, such as a binom
ial opt
ion pric
ing model. Non-market vest
ing condit
ions are
included in
\n
assumptions for the number of shares and awards that are expected to vest.
\n
At each balance sheet date, the Group revises its estimates of the number of shares and awards that are expected to vest. It
\n
recognises the impact of the revis
ion of or
ig
inal est
imates, if any, in the income statement and a corresponding adjustment
\n
to equity over the remain
ing vest
ing period. Forfeitures prior to vesting attributable to factors other than the failure to satisfy
\n
service condit
ions and non-market vest
ing condit
ions are treated as a cancellat
ion and the remain
ing unamort
ised charge
\n
is debited to the income statement at the time of cancellation. The proceeds received net of any directly attributable
\n
transaction costs are credited to share capital (nominal value) and share premium when awards in the form of options
\n
are exercised.
\n
Cash-settled awards are revalued at each balance sheet date and a liab
il
ity recognised on the balance sheet for all unpaid
\n
amounts, with any changes in fair value charged or credited to staff costs in the income statement until the awards are
\n
exercised. Where forfeitures occur prior to vesting that are attributable to factors other than a failure to satisfy service
\n
condit
ions or market-based performance cond
it
ions, the cumulat
ive charge incurred up to the date of forfeiture is credited
\n
to the income statement. Any revaluation related to cash-settled awards is recorded as an amount due from subsid
iary
\n
undertakings.
\n
Other accounting estimates and judgements
\n
Share-based payments involve judgement and estimat
ion uncerta
inty in determin
ing the expenses and carry
ing values of
\n
share awards at the balance sheet date.
\n
\u2022
LTIP awards are determined using an estimat
ion of the probab
il
ity of meet
ing certain metrics over a three-year
\n
performance period using the Monte Carlo simulat
ion model.
\n
\u2022
Deferred shares and restricted shares are determined using an estimat
ion of expected d
iv
idends.
\n
\u2022
The 2013 Sharesave Plan valuation is determined using a binom
ial opt
ion-pric
ing model.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f97433": { "value": "32. Investments in subsid
iary undertak
ings, jo
int ventures and assoc
iates
\n
Accounting policy
\n
Subsid
iar
ies
\n
Subsid
iar
ies are all entit
ies,
includ
ing structured ent
it
ies, wh
ich the Group controls. The Group controls an entity when it is
\n
exposed to, and has rights to, variable returns from its involvement with the entity and has the abil
ity to affect those returns
\n
through its power over the investee. The assessment of power is based on the Group\u2019s practical abil
ity to d
irect the relevant
\n
activ
it
ies of the entity unilaterally for the Group\u2019s own bene\ufb01t and is subject to reassessment if and when one or more of the
\n
elements of control change. Subsid
iar
ies are fully consolidated from the date on which the Group effectively obtains control.
\n
They are deconsolidated from the date that control ceases, and where any interest in the subsid
iary rema
ins, this is
\n
remeasured to its fair value and the change in carrying amount is recognised in the income statement.
\n
Associates and jo
int arrangements
\n
Joint arrangements are where two or more parties either have rights to the assets, and obligat
ions of the joint arrangement
\n
(joint operat
ions), or have rights to the net assets of the jo
int arrangement (joint venture). The Group evaluates the
\n
contractual terms of joint arrangements to determ
ine whether a jo
int arrangement
is a jo
int operat
ion or a jo
int venture.
\n
The Group did not have any contractual interest in jo
int operat
ions.
\n
An associate is an entity over which the Group has sign
i\ufb01cant
in\ufb02uence.
\n
Investments in associates and jo
int ventures are accounted for by the equ
ity method of accounting and are in
it
ially
\n
recognised at cost. The Group\u2019s investment in associates and jo
int ventures
includes goodwill ident
i\ufb01ed on acqu
is
it
ion (net of
\n
any accumulated impa
irment loss).
\n
The Group\u2019s share of its associates\u2019 and jo
int ventures\u2019 post-acqu
is
it
ion pro\ufb01ts or losses is recognised in the income statement,
\n
and its share of post-acquis
it
ion movements in other comprehensive income is recognised in reserves. The cumulative
\n
post-acquis
it
ion movements are adjusted against the carrying amount of the investment. When the Group\u2019s share of losses
\n
in an associate or a jo
int venture equals or exceeds
its interest in the associate, includ
ing any other unsecured rece
ivables, the
\n
Group does not recognise further losses, unless it has incurred obligat
ions or made payments on behalf of the assoc
iate or
\n
joint venture.
\n
Unrealised gains and losses on transactions between the Group and its associates and jo
int ventures are el
im
inated to the
\n
extent of the Group\u2019s interest in the associates and jo
int ventures. At each balance sheet date, the Group assesses whether
\n
there is any object
ive ev
idence of impa
irment
in the investment in associates and jo
int ventures. Such ev
idence includes a
\n
sign
i\ufb01cant or prolonged decl
ine in the fair value of the Group\u2019s investment in an associate or jo
int venture below
its cost,
\n
among other factors.
438
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
32. Investments in subsid
iary undertak
ings, jo
int ventures and assoc
iates
continued
\n
Sign
i\ufb01cant account
ing estimates and judgements
\n
The Group applies judgement in determin
ing
if it has control, jo
int control or s
ign
i\ufb01cant
in\ufb02uence over subsid
iar
ies, jo
int
\n
ventures and associates respectively. These judgements are based upon ident
ify
ing the relevant activ
it
ies of counterparties,
\n
being those activ
it
ies that sign
i\ufb01cantly affect the ent
it
ies returns, and further mak
ing a decis
ion of
if the Group has control
\n
over those entit
ies, joint control, or has s
ign
i\ufb01cant
in\ufb02uence (being the power to partic
ipate
in the \ufb01nanc
ial and operat
ing
\n
policy decis
ions but not control them).
\n
These judgements are at times determined by equity holdings, and the voting rights associated with those holdings.
\n
However, further considerat
ions
includ
ing but not l
im
ited to board seats, adv
isory committee members and special
ist
\n
knowledge of some decis
ion-makers are also taken
into account. Further judgement is required when determin
ing
if the
\n
Group has de-facto control over an entity even though it may hold less than 50% of the voting shares of that entity.
\n
Judgement is required to determine the relative size of the Group\u2019s shareholding when compared to the size and dispers
ion
\n
of other shareholders.
\n
Impairment testing of investments in associates and jo
int ventures, and on a Company level
investments in subsid
iar
ies is
\n
performed if there is a possible ind
icator of
impa
irment. Judgement
is used to determine if there is object
ive ev
idence of
\n
impa
irment. Objective ev
idence may be observable data such as losses incurred on the investment when applying the equity
\n
method, the granting of concessions as a result of \ufb01nanc
ial d
iff
iculty, or breaches of contracts/regulatory \ufb01nes of the
\n
associate or jo
int venture. Further judgement
is required when consider
ing broader
ind
icators of
impa
irment such as losses of
\n
active markets or ratings downgrades across key markets in which the associate or jo
int venture operate
in.
\n
Impairment testing is based on estimates includ
ing forecast
ing the expected cash \ufb02ows from the investments, growth rates,
\n
terminal values and the discount rate used in calculation of the present values of those cash \ufb02ows. The estimat
ion of future
\n
cash \ufb02ows and the level to which they are discounted is inherently uncertain and requires sign
i\ufb01cant judgement.
\n
Business combinat
ions
\n
The acquis
it
ion method of accounting is used to account for the acquis
it
ion of subsid
iar
ies by the Group. The cost of an
\n
acquis
it
ion is measured as the fair value of the assets given, equity instruments issued and liab
il
it
ies
incurred or assumed at
\n
the date of exchange, together with the fair value of any contingent considerat
ion payable. The excess of the cost of
\n
acquis
it
ion over the fair value of the Group\u2019s share of the ident
i\ufb01able net assets and cont
ingent liab
il
it
ies acqu
ired is recorded
\n
as goodwill (see Note 17 for details on goodwill recognised by the Group). If the cost of acquis
it
ion is less than the fair value of
\n
the net assets and contingent liab
il
it
ies of the subs
id
iary acqu
ired, the difference is recognised directly in the income
\n
statement.
\n
Where the fair values of the ident
i\ufb01able net assets and cont
ingent liab
il
it
ies acqu
ired have been determined provis
ionally, or
\n
where contingent or deferred considerat
ion
is payable, adjustments aris
ing from the
ir subsequent \ufb01nal
isat
ion are not
\n
re\ufb02ected in the income statement if (i) they arise with
in 12 months of the acqu
is
it
ion date (or relate to acquis
it
ions completed
\n
before 1 January 2014) and (i
i) the adjustments ar
ise from better informat
ion about cond
it
ions ex
ist
ing at the acqu
is
it
ion
\n
date (measurement period adjustments). Such adjustments are applied as at the date of acquis
it
ion and, if applicable, prior
\n
year amounts are restated. All changes that are not measurement period adjustments are reported in income other than
\n
changes in contingent considerat
ion not class
if
ied as \ufb01nancial
instruments, which are accounted for in accordance with the
\n
appropriate accounting policy, and changes in contingent considerat
ion class
if
ied as equ
ity, which is not remeasured.
\n
Changes in ownership interest in a subsid
iary, wh
ich do not result in a loss of control, are treated as transactions between
\n
equity holders and are reported in equity. Where a business combinat
ion
is achieved in stages, the previously held equity
\n
interest is remeasured at the acquis
it
ion date fair value with the resulting gain or loss recognised in the income statement.
\n
In the Company\u2019s \ufb01nancial statements,
investment in subsid
iar
ies, associates and jo
int ventures are held at cost less
\n
impa
irment and d
iv
idends from pre-acqu
is
it
ion pro\ufb01ts received prior to 1 January 2009, if any. Inter-company transactions,
\n
balances and unrealised gains and losses on transactions between Group companies are elim
inated
in the Group accounts.
\n
Investments in subsid
iary undertak
ings
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
As at 1 January
60,429
57,407
\n
Addit
ions
\n
1
\n
1,545
4,023
\n
Disposal
\n
2
\n
(999)
(1,001)
\n
As at 31 December
60,975
60,429
\n
1
Includes internal Addit
ional T
ier 1 Issuances of $1 bill
ion by Standard Chartered Bank, $500 m
ill
ion by Standard Chartered Bank (Hong Kong) Ltd (2021: Add
it
ional
\n
Tier 1 issuances of $2.7 bill
ion by Standard Chartered Bank and $1.3 b
ill
ion by Standard Chartered Hold
ings Lim
ited)
\n
2
Redemption of Addit
ional T
ier1 capital of $1 bill
ion by Standard Chartered Bank (2021: Add
it
ional T
ier1 capital of $1 bill
ion by Standard Chartered Bank)
439
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
32. Investments in subsid
iary undertak
ings, jo
int ventures and assoc
iates
continued
\n
At 31 December 2022, the princ
ipal subs
id
iary undertak
ings, all ind
irectly held except for Standard Chartered Bank (Hong Kong)
\n
Lim
ited, and pr
inc
ipally engaged
in the business of banking and provis
ion of other \ufb01nancial serv
ices, were as follows:
\n
Country and place of incorporation or registrat
ion
Main areas of operation
\n
Group interest
\n
in ordinary
\n
share capital
\n
%
\n
Standard Chartered Bank, England and Wales
United Kingdom, Middle East, South Asia, Asia Pacif
ic,
\n
Americas and, through Group companies, Africa
100
\n
Standard Chartered Bank (Hong Kong) Lim
ited, Hong Kong
Hong Kong
100
\n
Standard Chartered Bank (Singapore) Lim
ited, S
ingapore
Singapore
100
\n
Standard Chartered Bank Korea Lim
ited, Korea
Korea
100
\n
Standard Chartered Bank (China) Lim
ited, Ch
ina
\n
1
\n
China
100
\n
Standard Chartered Bank (Taiwan) Lim
ited, Ta
iwan
Taiwan
100
\n
Standard Chartered Bank AG, Germany
Germany
100
\n
Standard Chartered Bank Malaysia Berhad, Malaysia
Malaysia
100
\n
1
Under PRC law, registered as Standard Chartered Bank (China) Lim
ited
\n
Country and place of incorporation or registrat
ion
Main areas of operation
\n
Group interest
\n
in ordinary
\n
share capital
\n
%
\n
Standard Chartered Bank (Thai) Public Company Lim
ited,
\n
Thailand
Thailand
99.87
\n
Standard Chartered Bank (Pakistan) Lim
ited, Pak
istan
Pakistan
98.99
\n
Standard Chartered Bank Botswana Lim
ited, Botswana
Botswana
75.83
\n
Standard Chartered Bank Kenya Lim
ited, Kenya
Kenya
74.32
\n
Standard Chartered Bank Nepal Lim
ited, Nepal
Nepal
70.21
\n
Standard Chartered Bank Ghana PLC, Ghana
Ghana
69.42
\n
Mox Bank Lim
ited, Hong Kong
Hong Kong
65.98
\n
A complete list of subsid
iary undertak
ing is included in Note 40.
\n
The Group does not have any material non-controlling interest except as listed above, which contribute $(6.2) mill
ion
\n
(31\u00a0December 2021: $17 mill
ion) of the (loss)/Pro\ufb01t attr
ibutable to non-controlling interest and $261 mill
ion (31 December 2021:
\n
$298\u00a0mill
ion) of the equ
ity attributable to non-controlling interests
\n
While the Group\u2019s subsid
iar
ies are subject to local statutory capital and liqu
id
ity requirements in relation to foreign exchange
\n
remittance, these restrict
ions ar
ise in the normal course of business and do not sign
i\ufb01cantly restr
ict the Group\u2019s abil
ity to access
\n
or use assets and settle liab
il
it
ies of the Group.
\n
The Group does not have sign
i\ufb01cant restr
ict
ions on
its abil
ity to access or use
its assets and settle its liab
il
it
ies other than those
\n
resulting from the regulatory framework with
in wh
ich the banking subsid
iar
ies operate. These frameworks require banking
\n
operations to keep certain levels of regulatory capital, liqu
id assets, exposure l
im
its and comply w
ith other required ratios.
\n
These restrict
ions are summar
ised below:
\n
Regulatory and liqu
id
ity requirements
\n
The Group\u2019s subsid
iar
ies are required to mainta
in m
in
imum cap
ital, leverage ratios, liqu
id
ity and exposure ratios which therefore
\n
restrict the abil
ity of these subs
id
iar
ies to distr
ibute cash or other assets to the parent company.
\n
The subsid
iar
ies are also required to mainta
in balances w
ith central banks and other regulatory authorit
ies
in the countries in
\n
which they operate. At 31 December 2022, the total cash and balances with central banks was $58 bill
ion (31 December 2021:
\n
$73 bill
ion) of wh
ich $9 bill
ion (31 December 2021: $8 b
ill
ion)
is restricted.
\n
Statutory requirements
\n
The Group\u2019s subsid
iar
ies are subject to statutory requirements not to make distr
ibut
ions of capital and unrealised pro\ufb01ts to the
\n
parent company, generally to mainta
in solvency. These requ
irements restrict the abil
ity of subs
id
iar
ies to remit div
idends to the
\n
Group. Certain subsid
iar
ies are also subject to local exchange control regulations which provide for restrict
ions on export
ing
\n
capital from the country other than through normal div
idends.
440
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
32. Investments in subsid
iary undertak
ings, jo
int ventures and assoc
iates
continued
\n
Contractual requirements
\n
The encumbered assets in the balance sheet of the Group\u2019s subsid
iar
ies are not available for transfer around the Group.
\n
Encumbered assets are disclosed in Risk review and Capital review (page 236 to 325).
\n
Share of pro\ufb01t from investment in associates and jo
int ventures compr
ises:
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Loss from investment in jo
int ventures
(7)
(2)
\n
Pro\ufb01t from investment in associates
163
198
\n
Total
156
196
\n
Interests in associates and jo
int ventures
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
As at 1 January
2,147
2,162
\n
Exchange translation difference
(232)
43
\n
Addit
ions
26
90
\n
Share of pro\ufb01ts
156
196
\n
Div
idend rece
ived
(58)
(38)
\n
Disposals
(1)
(16)
\n
Impairment\u00b9
(336)
(300)
\n
Share of FVOCI and Other reserves
(79)
10
\n
Other movements
\n
2
\n
8
\u2013
\n
As at 31 December
1,631
2,147
\n
1
Other impa
irment ma
inly relates to the Group\u2019s investment in its associate China Bohai Bank (Bohai)
\n
2 Movement related to CurrencyFair
\n
A complete list of the Group\u2019s interest in associates is included in Note 40. The Group\u2019s princ
ipal assoc
iates are:
\n
Associate
\n
Nature of
\n
activ
it
ies
\n
Main areas of
\n
operation
\n
Group interest
\n
in ordinary
\n
share capital
\n
%
\n
China Bohai Bank
Banking
China
16.26
\n
CurrencyFair Lim
ited Exchange Ireland
Banking
Ireland
43.42
\n
On the 10th September 2021, The Group, through its subsid
iary Standard Chartered UK Hold
ings Lim
ited completed
its
\n
investment in CurrencyFair Lim
ited, an Ir
ish foreign exchange payments platform.
\n
The Group purchased CurrencyFair through the contribut
ion of
its exist
ing
investment in its jo
int venture, Assembly Payments
\n
Pte. Lim
ited and a cash
injection into CurrencyFair of $35 mill
ion, wh
ich provided the Group with equity of 43.42% in
\n
CurrencyFair. This ownership, along with seats on the board of directors resulted in the Group having sign
i\ufb01cant
in\ufb02uence
\n
over CurrencyFair and as such would equity method account the investment.
\n
The transaction will facil
itate creat
ion of a combined payments and foreign exchange products franchise, combin
ing the
\n
customer base, staff, expertise and capabil
it
ies of both CurrencyFair and Assembly Payments.
\n
The fair value of considerat
ion for the
investment was as follows:
\n
Considerat
ion
$mill
ion
\n
Fair value of the Group\u2019s investment in Assembly Payments
\n
1
\n
36
\n
Cash considerat
ion
35
\n
Total considerat
ion/
investment in associate
71
\n
1
The fair value of Assembly Payments was determined to be $60 mill
ion, of wh
ich the Group\u2019s equity ownership on transfer was 59.63%. The Group carried this
\n
investment under the equity method at a balance of $16 mill
ion result
ing in a pro\ufb01t on disposal of $20 mill
ion
\n
The Group\u2019s ownership percentage in China Bohai Bank is 16.26%.
\n
Although the Group\u2019s investment in China Bohai Bank is less than 20 per cent but it is considered to be an associate because of
\n
the sign
i\ufb01cant
in\ufb02uence the Group is able to exercise over the management and \ufb01nanc
ial and operat
ing polic
ies. Th
is in\ufb02uence
\n
is primar
ily through board representat
ion and the provis
ion of techn
ical expertise to Bohai. The Group applies the equity
\n
method of accounting for investments in associates.
441
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
32. Investments in subsid
iary undertak
ings, jo
int ventures and assoc
iates
continued
\n
Bohai has a statutory year end of 31 December, but publishes its year-end \ufb01nanc
ial statements after the Group. As
it is
\n
impract
icable for Boha
i to prepare \ufb01nanc
ial statements earl
ier for use of the Group, the Group recognises its share of Bohai\u2019s
\n
earnings on a three-month lag basis. Therefore, the Group recognised its share of Bohai\u2019s pro\ufb01ts and movements in other
\n
comprehensive income for the 12 months ended 30 September 2022 in the Group\u2019s consolidated statemement of income and
\n
consolidated statement of comprehensive income for the year ended 31 December 2022, respectively.
\n
There have been no material events after 30 September 2022 which would require adjustments in respect of the share of
\n
Bohai\u2019s pro\ufb01ts and movements in OCI recognised by the Group for the period ended on 31 December 2022.
\n
If the Group did not have sign
i\ufb01cant
in\ufb02uence in Bohai, the investment would be carried at fair value rather than the current
\n
carrying value.
\n
Impairment testing
\n
At 31 December 2022, the listed equity value of Bohai is below the carrying amount of the Group\u2018s investment in associate. As a
\n
result, the Group assessed the carrying value of its investment in Bohai for impa
irment and concluded that an
impa
irment loss
\n
of $308 mill
ion (2021: $300 m
ill
ion) was requ
ired. The revised carrying value of the Group\u2019s investment in Bohai of $1,421 mill
ion
\n
(2021: $1,917 mill
ion) represents the h
igher of the value in use and fair value less costs to sell. The \ufb01nanc
ial forecasts used for the
\n
VIU calculation re\ufb02ects the current economic condit
ions. The reduct
ion (compared to 2021) in the recoverable amount of Bohai
\n
is primar
ily a result of
industry challenges and uncertaint
ies that may
impact pro\ufb01tab
il
ity, as well as lower net pro\ufb01ts reported in
\n
Q3 2022 (than in Q3 2021), which is used as a starting point for the VIU calculation.
\n
Bohai
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
VIU
1,421
1,917
\n
Carrying amount
\n
1
\n
1,729
2,217
\n
Fair value\u00b2
685
1,114
\n
1
The Group\u2019s 16.26% share in the net assets less other equity instruments which the Group does not hold
\n
2
Number of shares held by the Group multipl
ied by the quoted share pr
ice at 31 December
\n
Basis of recoverable amount
\n
The impa
irment test was performed by compar
ing the recoverable amount of Bohai, determined as the higher of VIU and fair
\n
value less costs to sell, with its carrying amount.
\n
The value in use (\u2018VIU\u2019) is calculated using a div
idend d
iscount model (\u2018DDM\u2019), which estimates the distr
ibutable future cash
\n
\ufb02ows to the equity holders, after adjust
ing for the regulatory cap
ital requirements, for a 5-year period, after which a terminal
\n
value (\u2018TV\u2019) is calculated based on the \u2018Gordon Growth\u2019 model. The key assumptions in the VIU are as follows:
\n
\u2022
Short to medium term project
ions are based on management\u2019s best est
imates of future pro\ufb01ts available to ordinary
\n
shareholders and have been determined with reference to the latest published \ufb01nanc
ial results and h
istor
ical performance
\n
of Bohai;
\n
\u2022
The projections use publ
icly available informat
ion and
include normalised performance over the forecast period, inclus
ive of:
\n
(i) net pro\ufb01t growth assumptions based on China GDP; (i
i) ECL assumpt
ions using Bohai histor
ical ECL and the preva
il
ing
\n
Chinese market challenges and uncertaint
ies as a bas
is; and (i
i
i) net interest margin increases from 2024 with reference to
\n
third party market interest rate forecasts in China;
\n
\u2022
The discount rate applied to these cash \ufb02ows was estimated with reference to transaction and broker data in the local
\n
Chinese market, cross checked to the capital asset pric
ing model (CAPM), wh
ich includes a long term risk-free rate, beta and
\n
company risk premium assumptions for Bohai;
\n
\u2022
A long term growth rate for China is used to extrapolate the expected short to medium term earnings to perpetuity to derive
\n
a terminal value; and
\n
\u2022
An estimat
ion of RWAs and RWA growth to determ
ine a capital maintenance haircut to forecast pro\ufb01ts. This haircut is taken
\n
in order for Bohai to meet its target regulatory capital requirements over the forecast period. This haircut takes into account
\n
movements in risk weighted assets and the total capital required, includ
ing requ
ired retained earnings over time to meet the
\n
target capital rations.
\n
The key assumptions used in the VIU calculation:
\n
2022
\n
%
\n
2021
\n
%
\n
Pre tax discount rate
13.03
14.83
\n
Forecast pro\ufb01t long term growth rate
4.00
4.75
\n
Long term RWA growth rate
4.00
4.75
\n
Min
imum CET 1 rat
io\u00b9
7.50
7.50
\n
1
At 30 September 2022, Bohai\u2019s CET 1 ratio was 8.05%
\n\n
442
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
32. Investments in subsid
iary undertak
ings, jo
int ventures and assoc
iates
continued
\n
The sensit
iv
it
ies d
isclosed below are for changes to the discount rate, normalised pro\ufb01ts and RWA assumptions of Bohai.
\n
All these sensit
iv
ity analyses assume a CET 1 capital requirement of 7.50%, consistent with local legislat
ion. The GDP growth
\n
assumptions affect the forecast pro\ufb01ts and RWA estimates over the short to medium term and in the terminal period, and
\n
sensit
iv
it
ies are already d
isclosed, thus a separate sensit
iv
ity has not been included for this input.
\n
Carrying amount
\n
Pre impa
irment
\n
$mill
ion
\n
Base Case
Sensit
iv
it
ies \u2013 2022
\n
VIU
\n
$mill
ion
\n
Headroom
\n
$mill
ion
\n
Pre tax
\n
discount
\n
rate
GDP
\n
Discount rate
Forecast pro\ufb01t
\n
1
\n
RWA
\n
Combined
Combined
\n
RWA -10%
RWA +10%
\n
+1%
-1%
+10%
-10%
+10%
-10%
CF -10%
CF +10%
\n
Impairment
\n
$mill
ion
\n
Impairment
\n
$mill
ion
\n
Impairment
\n
$mill
ion
\n
Impairment
\n
$mill
ion
\n
Impairment
\n
$mill
ion
\n
Impairment
\n
$mill
ion
\n
Impairment
\n
$mill
ion
\n
Impairment
\n
$mill
ion
\n
1,729
1,421
(308) 13.03%
4.00%
(504)
(48)
(67)
(552)
(578)
(40)
(283)
(336)
\n
1
Results include changes to NIM and addit
ional ECL overlay assumpt
ions, which are not necessarily linear
\n
To improve the headroom to zero would require, on the basis of changing ind
iv
idual assumptions an increase in forecast pro\ufb01ts
\n
by 12.76 per cent, decrease in discount rate by 1.15 per cent and a decrease in RWA by 11.50 per cent.
\n
The following table sets out the summarised \ufb01nanc
ial statements of Ch
ina Bohai Bank prior to the Group\u2019s share of the
\n
associates being applied:
\n
30 Sep 2022
\n
$mill
ion
\n
30 Sep 2021
\n
$mill
ion
\n
Total assets
236,396
250,951
\n
Total liab
il
it
ies
220,662
234,196
\n
Operating income
\n
1
\n
3,958
4,840
\n
Net pro\ufb01t
\n
1
\n
1,186
1,230
\n
Other comprehensive income
\n
1
\n
(457)
44
\n
1
This represents twelve months of earnings (1 October to 30 September)", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInSubsidiariesExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f97434": { "value": "32. Investments in subsid
iary undertak
ings, jo
int ventures and assoc
iates
\n
Accounting policy
\n
Subsid
iar
ies
\n
Subsid
iar
ies are all entit
ies,
includ
ing structured ent
it
ies, wh
ich the Group controls. The Group controls an entity when it is
\n
exposed to, and has rights to, variable returns from its involvement with the entity and has the abil
ity to affect those returns
\n
through its power over the investee. The assessment of power is based on the Group\u2019s practical abil
ity to d
irect the relevant
\n
activ
it
ies of the entity unilaterally for the Group\u2019s own bene\ufb01t and is subject to reassessment if and when one or more of the
\n
elements of control change. Subsid
iar
ies are fully consolidated from the date on which the Group effectively obtains control.
\n
They are deconsolidated from the date that control ceases, and where any interest in the subsid
iary rema
ins, this is
\n
remeasured to its fair value and the change in carrying amount is recognised in the income statement.
\n
Associates and jo
int arrangements
\n
Joint arrangements are where two or more parties either have rights to the assets, and obligat
ions of the joint arrangement
\n
(joint operat
ions), or have rights to the net assets of the jo
int arrangement (joint venture). The Group evaluates the
\n
contractual terms of joint arrangements to determ
ine whether a jo
int arrangement
is a jo
int operat
ion or a jo
int venture.
\n
The Group did not have any contractual interest in jo
int operat
ions.
\n
An associate is an entity over which the Group has sign
i\ufb01cant
in\ufb02uence.
\n
Investments in associates and jo
int ventures are accounted for by the equ
ity method of accounting and are in
it
ially
\n
recognised at cost. The Group\u2019s investment in associates and jo
int ventures
includes goodwill ident
i\ufb01ed on acqu
is
it
ion (net of
\n
any accumulated impa
irment loss).
\n
The Group\u2019s share of its associates\u2019 and jo
int ventures\u2019 post-acqu
is
it
ion pro\ufb01ts or losses is recognised in the income statement,
\n
and its share of post-acquis
it
ion movements in other comprehensive income is recognised in reserves. The cumulative
\n
post-acquis
it
ion movements are adjusted against the carrying amount of the investment. When the Group\u2019s share of losses
\n
in an associate or a jo
int venture equals or exceeds
its interest in the associate, includ
ing any other unsecured rece
ivables, the
\n
Group does not recognise further losses, unless it has incurred obligat
ions or made payments on behalf of the assoc
iate or
\n
joint venture.
\n
Unrealised gains and losses on transactions between the Group and its associates and jo
int ventures are el
im
inated to the
\n
extent of the Group\u2019s interest in the associates and jo
int ventures. At each balance sheet date, the Group assesses whether
\n
there is any object
ive ev
idence of impa
irment
in the investment in associates and jo
int ventures. Such ev
idence includes a
\n
sign
i\ufb01cant or prolonged decl
ine in the fair value of the Group\u2019s investment in an associate or jo
int venture below
its cost,
\n
among other factors.
438
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
32. Investments in subsid
iary undertak
ings, jo
int ventures and assoc
iates
continued
\n
Sign
i\ufb01cant account
ing estimates and judgements
\n
The Group applies judgement in determin
ing
if it has control, jo
int control or s
ign
i\ufb01cant
in\ufb02uence over subsid
iar
ies, jo
int
\n
ventures and associates respectively. These judgements are based upon ident
ify
ing the relevant activ
it
ies of counterparties,
\n
being those activ
it
ies that sign
i\ufb01cantly affect the ent
it
ies returns, and further mak
ing a decis
ion of
if the Group has control
\n
over those entit
ies, joint control, or has s
ign
i\ufb01cant
in\ufb02uence (being the power to partic
ipate
in the \ufb01nanc
ial and operat
ing
\n
policy decis
ions but not control them).
\n
These judgements are at times determined by equity holdings, and the voting rights associated with those holdings.
\n
However, further considerat
ions
includ
ing but not l
im
ited to board seats, adv
isory committee members and special
ist
\n
knowledge of some decis
ion-makers are also taken
into account. Further judgement is required when determin
ing
if the
\n
Group has de-facto control over an entity even though it may hold less than 50% of the voting shares of that entity.
\n
Judgement is required to determine the relative size of the Group\u2019s shareholding when compared to the size and dispers
ion
\n
of other shareholders.
\n
Impairment testing of investments in associates and jo
int ventures, and on a Company level
investments in subsid
iar
ies is
\n
performed if there is a possible ind
icator of
impa
irment. Judgement
is used to determine if there is object
ive ev
idence of
\n
impa
irment. Objective ev
idence may be observable data such as losses incurred on the investment when applying the equity
\n
method, the granting of concessions as a result of \ufb01nanc
ial d
iff
iculty, or breaches of contracts/regulatory \ufb01nes of the
\n
associate or jo
int venture. Further judgement
is required when consider
ing broader
ind
icators of
impa
irment such as losses of
\n
active markets or ratings downgrades across key markets in which the associate or jo
int venture operate
in.
\n
Impairment testing is based on estimates includ
ing forecast
ing the expected cash \ufb02ows from the investments, growth rates,
\n
terminal values and the discount rate used in calculation of the present values of those cash \ufb02ows. The estimat
ion of future
\n
cash \ufb02ows and the level to which they are discounted is inherently uncertain and requires sign
i\ufb01cant judgement.
\n
Business combinat
ions
\n
The acquis
it
ion method of accounting is used to account for the acquis
it
ion of subsid
iar
ies by the Group. The cost of an
\n
acquis
it
ion is measured as the fair value of the assets given, equity instruments issued and liab
il
it
ies
incurred or assumed at
\n
the date of exchange, together with the fair value of any contingent considerat
ion payable. The excess of the cost of
\n
acquis
it
ion over the fair value of the Group\u2019s share of the ident
i\ufb01able net assets and cont
ingent liab
il
it
ies acqu
ired is recorded
\n
as goodwill (see Note 17 for details on goodwill recognised by the Group). If the cost of acquis
it
ion is less than the fair value of
\n
the net assets and contingent liab
il
it
ies of the subs
id
iary acqu
ired, the difference is recognised directly in the income
\n
statement.
\n
Where the fair values of the ident
i\ufb01able net assets and cont
ingent liab
il
it
ies acqu
ired have been determined provis
ionally, or
\n
where contingent or deferred considerat
ion
is payable, adjustments aris
ing from the
ir subsequent \ufb01nal
isat
ion are not
\n
re\ufb02ected in the income statement if (i) they arise with
in 12 months of the acqu
is
it
ion date (or relate to acquis
it
ions completed
\n
before 1 January 2014) and (i
i) the adjustments ar
ise from better informat
ion about cond
it
ions ex
ist
ing at the acqu
is
it
ion
\n
date (measurement period adjustments). Such adjustments are applied as at the date of acquis
it
ion and, if applicable, prior
\n
year amounts are restated. All changes that are not measurement period adjustments are reported in income other than
\n
changes in contingent considerat
ion not class
if
ied as \ufb01nancial
instruments, which are accounted for in accordance with the
\n
appropriate accounting policy, and changes in contingent considerat
ion class
if
ied as equ
ity, which is not remeasured.
\n
Changes in ownership interest in a subsid
iary, wh
ich do not result in a loss of control, are treated as transactions between
\n
equity holders and are reported in equity. Where a business combinat
ion
is achieved in stages, the previously held equity
\n
interest is remeasured at the acquis
it
ion date fair value with the resulting gain or loss recognised in the income statement.
\n
In the Company\u2019s \ufb01nancial statements,
investment in subsid
iar
ies, associates and jo
int ventures are held at cost less
\n
impa
irment and d
iv
idends from pre-acqu
is
it
ion pro\ufb01ts received prior to 1 January 2009, if any. Inter-company transactions,
\n
balances and unrealised gains and losses on transactions between Group companies are elim
inated
in the Group accounts.
\n
Investments in subsid
iary undertak
ings
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
As at 1 January
60,429
57,407
\n
Addit
ions
\n
1
\n
1,545
4,023
\n
Disposal
\n
2
\n
(999)
(1,001)
\n
As at 31 December
60,975
60,429
\n
1
Includes internal Addit
ional T
ier 1 Issuances of $1 bill
ion by Standard Chartered Bank, $500 m
ill
ion by Standard Chartered Bank (Hong Kong) Ltd (2021: Add
it
ional
\n
Tier 1 issuances of $2.7 bill
ion by Standard Chartered Bank and $1.3 b
ill
ion by Standard Chartered Hold
ings Lim
ited)
\n
2
Redemption of Addit
ional T
ier1 capital of $1 bill
ion by Standard Chartered Bank (2021: Add
it
ional T
ier1 capital of $1 bill
ion by Standard Chartered Bank)
439
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
32. Investments in subsid
iary undertak
ings, jo
int ventures and assoc
iates
continued
\n
At 31 December 2022, the princ
ipal subs
id
iary undertak
ings, all ind
irectly held except for Standard Chartered Bank (Hong Kong)
\n
Lim
ited, and pr
inc
ipally engaged
in the business of banking and provis
ion of other \ufb01nancial serv
ices, were as follows:
\n
Country and place of incorporation or registrat
ion
Main areas of operation
\n
Group interest
\n
in ordinary
\n
share capital
\n
%
\n
Standard Chartered Bank, England and Wales
United Kingdom, Middle East, South Asia, Asia Pacif
ic,
\n
Americas and, through Group companies, Africa
100
\n
Standard Chartered Bank (Hong Kong) Lim
ited, Hong Kong
Hong Kong
100
\n
Standard Chartered Bank (Singapore) Lim
ited, S
ingapore
Singapore
100
\n
Standard Chartered Bank Korea Lim
ited, Korea
Korea
100
\n
Standard Chartered Bank (China) Lim
ited, Ch
ina
\n
1
\n
China
100
\n
Standard Chartered Bank (Taiwan) Lim
ited, Ta
iwan
Taiwan
100
\n
Standard Chartered Bank AG, Germany
Germany
100
\n
Standard Chartered Bank Malaysia Berhad, Malaysia
Malaysia
100
\n
1
Under PRC law, registered as Standard Chartered Bank (China) Lim
ited
\n
Country and place of incorporation or registrat
ion
Main areas of operation
\n
Group interest
\n
in ordinary
\n
share capital
\n
%
\n
Standard Chartered Bank (Thai) Public Company Lim
ited,
\n
Thailand
Thailand
99.87
\n
Standard Chartered Bank (Pakistan) Lim
ited, Pak
istan
Pakistan
98.99
\n
Standard Chartered Bank Botswana Lim
ited, Botswana
Botswana
75.83
\n
Standard Chartered Bank Kenya Lim
ited, Kenya
Kenya
74.32
\n
Standard Chartered Bank Nepal Lim
ited, Nepal
Nepal
70.21
\n
Standard Chartered Bank Ghana PLC, Ghana
Ghana
69.42
\n
Mox Bank Lim
ited, Hong Kong
Hong Kong
65.98
\n
A complete list of subsid
iary undertak
ing is included in Note 40.
\n
The Group does not have any material non-controlling interest except as listed above, which contribute $(6.2) mill
ion
\n
(31\u00a0December 2021: $17 mill
ion) of the (loss)/Pro\ufb01t attr
ibutable to non-controlling interest and $261 mill
ion (31 December 2021:
\n
$298\u00a0mill
ion) of the equ
ity attributable to non-controlling interests
\n
While the Group\u2019s subsid
iar
ies are subject to local statutory capital and liqu
id
ity requirements in relation to foreign exchange
\n
remittance, these restrict
ions ar
ise in the normal course of business and do not sign
i\ufb01cantly restr
ict the Group\u2019s abil
ity to access
\n
or use assets and settle liab
il
it
ies of the Group.
\n
The Group does not have sign
i\ufb01cant restr
ict
ions on
its abil
ity to access or use
its assets and settle its liab
il
it
ies other than those
\n
resulting from the regulatory framework with
in wh
ich the banking subsid
iar
ies operate. These frameworks require banking
\n
operations to keep certain levels of regulatory capital, liqu
id assets, exposure l
im
its and comply w
ith other required ratios.
\n
These restrict
ions are summar
ised below:
\n
Regulatory and liqu
id
ity requirements
\n
The Group\u2019s subsid
iar
ies are required to mainta
in m
in
imum cap
ital, leverage ratios, liqu
id
ity and exposure ratios which therefore
\n
restrict the abil
ity of these subs
id
iar
ies to distr
ibute cash or other assets to the parent company.
\n
The subsid
iar
ies are also required to mainta
in balances w
ith central banks and other regulatory authorit
ies
in the countries in
\n
which they operate. At 31 December 2022, the total cash and balances with central banks was $58 bill
ion (31 December 2021:
\n
$73 bill
ion) of wh
ich $9 bill
ion (31 December 2021: $8 b
ill
ion)
is restricted.
\n
Statutory requirements
\n
The Group\u2019s subsid
iar
ies are subject to statutory requirements not to make distr
ibut
ions of capital and unrealised pro\ufb01ts to the
\n
parent company, generally to mainta
in solvency. These requ
irements restrict the abil
ity of subs
id
iar
ies to remit div
idends to the
\n
Group. Certain subsid
iar
ies are also subject to local exchange control regulations which provide for restrict
ions on export
ing
\n
capital from the country other than through normal div
idends.
440
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
32. Investments in subsid
iary undertak
ings, jo
int ventures and assoc
iates
continued
\n
Contractual requirements
\n
The encumbered assets in the balance sheet of the Group\u2019s subsid
iar
ies are not available for transfer around the Group.
\n
Encumbered assets are disclosed in Risk review and Capital review (page 236 to 325).
\n
Share of pro\ufb01t from investment in associates and jo
int ventures compr
ises:
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Loss from investment in jo
int ventures
(7)
(2)
\n
Pro\ufb01t from investment in associates
163
198
\n
Total
156
196
\n
Interests in associates and jo
int ventures
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
As at 1 January
2,147
2,162
\n
Exchange translation difference
(232)
43
\n
Addit
ions
26
90
\n
Share of pro\ufb01ts
156
196
\n
Div
idend rece
ived
(58)
(38)
\n
Disposals
(1)
(16)
\n
Impairment\u00b9
(336)
(300)
\n
Share of FVOCI and Other reserves
(79)
10
\n
Other movements
\n
2
\n
8
\u2013
\n
As at 31 December
1,631
2,147
\n
1
Other impa
irment ma
inly relates to the Group\u2019s investment in its associate China Bohai Bank (Bohai)
\n
2 Movement related to CurrencyFair
\n
A complete list of the Group\u2019s interest in associates is included in Note 40. The Group\u2019s princ
ipal assoc
iates are:
\n
Associate
\n
Nature of
\n
activ
it
ies
\n
Main areas of
\n
operation
\n
Group interest
\n
in ordinary
\n
share capital
\n
%
\n
China Bohai Bank
Banking
China
16.26
\n
CurrencyFair Lim
ited Exchange Ireland
Banking
Ireland
43.42
\n
On the 10th September 2021, The Group, through its subsid
iary Standard Chartered UK Hold
ings Lim
ited completed
its
\n
investment in CurrencyFair Lim
ited, an Ir
ish foreign exchange payments platform.
\n
The Group purchased CurrencyFair through the contribut
ion of
its exist
ing
investment in its jo
int venture, Assembly Payments
\n
Pte. Lim
ited and a cash
injection into CurrencyFair of $35 mill
ion, wh
ich provided the Group with equity of 43.42% in
\n
CurrencyFair. This ownership, along with seats on the board of directors resulted in the Group having sign
i\ufb01cant
in\ufb02uence
\n
over CurrencyFair and as such would equity method account the investment.
\n
The transaction will facil
itate creat
ion of a combined payments and foreign exchange products franchise, combin
ing the
\n
customer base, staff, expertise and capabil
it
ies of both CurrencyFair and Assembly Payments.
\n
The fair value of considerat
ion for the
investment was as follows:
\n
Considerat
ion
$mill
ion
\n
Fair value of the Group\u2019s investment in Assembly Payments
\n
1
\n
36
\n
Cash considerat
ion
35
\n
Total considerat
ion/
investment in associate
71
\n
1
The fair value of Assembly Payments was determined to be $60 mill
ion, of wh
ich the Group\u2019s equity ownership on transfer was 59.63%. The Group carried this
\n
investment under the equity method at a balance of $16 mill
ion result
ing in a pro\ufb01t on disposal of $20 mill
ion
\n
The Group\u2019s ownership percentage in China Bohai Bank is 16.26%.
\n
Although the Group\u2019s investment in China Bohai Bank is less than 20 per cent but it is considered to be an associate because of
\n
the sign
i\ufb01cant
in\ufb02uence the Group is able to exercise over the management and \ufb01nanc
ial and operat
ing polic
ies. Th
is in\ufb02uence
\n
is primar
ily through board representat
ion and the provis
ion of techn
ical expertise to Bohai. The Group applies the equity
\n
method of accounting for investments in associates.
441
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
32. Investments in subsid
iary undertak
ings, jo
int ventures and assoc
iates
continued
\n
Bohai has a statutory year end of 31 December, but publishes its year-end \ufb01nanc
ial statements after the Group. As
it is
\n
impract
icable for Boha
i to prepare \ufb01nanc
ial statements earl
ier for use of the Group, the Group recognises its share of Bohai\u2019s
\n
earnings on a three-month lag basis. Therefore, the Group recognised its share of Bohai\u2019s pro\ufb01ts and movements in other
\n
comprehensive income for the 12 months ended 30 September 2022 in the Group\u2019s consolidated statemement of income and
\n
consolidated statement of comprehensive income for the year ended 31 December 2022, respectively.
\n
There have been no material events after 30 September 2022 which would require adjustments in respect of the share of
\n
Bohai\u2019s pro\ufb01ts and movements in OCI recognised by the Group for the period ended on 31 December 2022.
\n
If the Group did not have sign
i\ufb01cant
in\ufb02uence in Bohai, the investment would be carried at fair value rather than the current
\n
carrying value.
\n
Impairment testing
\n
At 31 December 2022, the listed equity value of Bohai is below the carrying amount of the Group\u2018s investment in associate. As a
\n
result, the Group assessed the carrying value of its investment in Bohai for impa
irment and concluded that an
impa
irment loss
\n
of $308 mill
ion (2021: $300 m
ill
ion) was requ
ired. The revised carrying value of the Group\u2019s investment in Bohai of $1,421 mill
ion
\n
(2021: $1,917 mill
ion) represents the h
igher of the value in use and fair value less costs to sell. The \ufb01nanc
ial forecasts used for the
\n
VIU calculation re\ufb02ects the current economic condit
ions. The reduct
ion (compared to 2021) in the recoverable amount of Bohai
\n
is primar
ily a result of
industry challenges and uncertaint
ies that may
impact pro\ufb01tab
il
ity, as well as lower net pro\ufb01ts reported in
\n
Q3 2022 (than in Q3 2021), which is used as a starting point for the VIU calculation.
\n
Bohai
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
VIU
1,421
1,917
\n
Carrying amount
\n
1
\n
1,729
2,217
\n
Fair value\u00b2
685
1,114
\n
1
The Group\u2019s 16.26% share in the net assets less other equity instruments which the Group does not hold
\n
2
Number of shares held by the Group multipl
ied by the quoted share pr
ice at 31 December
\n
Basis of recoverable amount
\n
The impa
irment test was performed by compar
ing the recoverable amount of Bohai, determined as the higher of VIU and fair
\n
value less costs to sell, with its carrying amount.
\n
The value in use (\u2018VIU\u2019) is calculated using a div
idend d
iscount model (\u2018DDM\u2019), which estimates the distr
ibutable future cash
\n
\ufb02ows to the equity holders, after adjust
ing for the regulatory cap
ital requirements, for a 5-year period, after which a terminal
\n
value (\u2018TV\u2019) is calculated based on the \u2018Gordon Growth\u2019 model. The key assumptions in the VIU are as follows:
\n
\u2022
Short to medium term project
ions are based on management\u2019s best est
imates of future pro\ufb01ts available to ordinary
\n
shareholders and have been determined with reference to the latest published \ufb01nanc
ial results and h
istor
ical performance
\n
of Bohai;
\n
\u2022
The projections use publ
icly available informat
ion and
include normalised performance over the forecast period, inclus
ive of:
\n
(i) net pro\ufb01t growth assumptions based on China GDP; (i
i) ECL assumpt
ions using Bohai histor
ical ECL and the preva
il
ing
\n
Chinese market challenges and uncertaint
ies as a bas
is; and (i
i
i) net interest margin increases from 2024 with reference to
\n
third party market interest rate forecasts in China;
\n
\u2022
The discount rate applied to these cash \ufb02ows was estimated with reference to transaction and broker data in the local
\n
Chinese market, cross checked to the capital asset pric
ing model (CAPM), wh
ich includes a long term risk-free rate, beta and
\n
company risk premium assumptions for Bohai;
\n
\u2022
A long term growth rate for China is used to extrapolate the expected short to medium term earnings to perpetuity to derive
\n
a terminal value; and
\n
\u2022
An estimat
ion of RWAs and RWA growth to determ
ine a capital maintenance haircut to forecast pro\ufb01ts. This haircut is taken
\n
in order for Bohai to meet its target regulatory capital requirements over the forecast period. This haircut takes into account
\n
movements in risk weighted assets and the total capital required, includ
ing requ
ired retained earnings over time to meet the
\n
target capital rations.
\n
The key assumptions used in the VIU calculation:
\n
2022
\n
%
\n
2021
\n
%
\n
Pre tax discount rate
13.03
14.83
\n
Forecast pro\ufb01t long term growth rate
4.00
4.75
\n
Long term RWA growth rate
4.00
4.75
\n
Min
imum CET 1 rat
io\u00b9
7.50
7.50
\n
1
At 30 September 2022, Bohai\u2019s CET 1 ratio was 8.05%
\n\n
442
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
32. Investments in subsid
iary undertak
ings, jo
int ventures and assoc
iates
continued
\n
The sensit
iv
it
ies d
isclosed below are for changes to the discount rate, normalised pro\ufb01ts and RWA assumptions of Bohai.
\n
All these sensit
iv
ity analyses assume a CET 1 capital requirement of 7.50%, consistent with local legislat
ion. The GDP growth
\n
assumptions affect the forecast pro\ufb01ts and RWA estimates over the short to medium term and in the terminal period, and
\n
sensit
iv
it
ies are already d
isclosed, thus a separate sensit
iv
ity has not been included for this input.
\n
Carrying amount
\n
Pre impa
irment
\n
$mill
ion
\n
Base Case
Sensit
iv
it
ies \u2013 2022
\n
VIU
\n
$mill
ion
\n
Headroom
\n
$mill
ion
\n
Pre tax
\n
discount
\n
rate
GDP
\n
Discount rate
Forecast pro\ufb01t
\n
1
\n
RWA
\n
Combined
Combined
\n
RWA -10%
RWA +10%
\n
+1%
-1%
+10%
-10%
+10%
-10%
CF -10%
CF +10%
\n
Impairment
\n
$mill
ion
\n
Impairment
\n
$mill
ion
\n
Impairment
\n
$mill
ion
\n
Impairment
\n
$mill
ion
\n
Impairment
\n
$mill
ion
\n
Impairment
\n
$mill
ion
\n
Impairment
\n
$mill
ion
\n
Impairment
\n
$mill
ion
\n
1,729
1,421
(308) 13.03%
4.00%
(504)
(48)
(67)
(552)
(578)
(40)
(283)
(336)
\n
1
Results include changes to NIM and addit
ional ECL overlay assumpt
ions, which are not necessarily linear
\n
To improve the headroom to zero would require, on the basis of changing ind
iv
idual assumptions an increase in forecast pro\ufb01ts
\n
by 12.76 per cent, decrease in discount rate by 1.15 per cent and a decrease in RWA by 11.50 per cent.
\n
The following table sets out the summarised \ufb01nanc
ial statements of Ch
ina Bohai Bank prior to the Group\u2019s share of the
\n
associates being applied:
\n
30 Sep 2022
\n
$mill
ion
\n
30 Sep 2021
\n
$mill
ion
\n
Total assets
236,396
250,951
\n
Total liab
il
it
ies
220,662
234,196
\n
Operating income
\n
1
\n
3,958
4,840
\n
Net pro\ufb01t
\n
1
\n
1,186
1,230
\n
Other comprehensive income
\n
1
\n
(457)
44
\n
1
This represents twelve months of earnings (1 October to 30 September)", "dimensions": { "concept": "ifrs-full:DisclosureOfJointVenturesExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f97435": { "value": "32. Investments in subsid
iary undertak
ings, jo
int ventures and assoc
iates
\n
Accounting policy
\n
Subsid
iar
ies
\n
Subsid
iar
ies are all entit
ies,
includ
ing structured ent
it
ies, wh
ich the Group controls. The Group controls an entity when it is
\n
exposed to, and has rights to, variable returns from its involvement with the entity and has the abil
ity to affect those returns
\n
through its power over the investee. The assessment of power is based on the Group\u2019s practical abil
ity to d
irect the relevant
\n
activ
it
ies of the entity unilaterally for the Group\u2019s own bene\ufb01t and is subject to reassessment if and when one or more of the
\n
elements of control change. Subsid
iar
ies are fully consolidated from the date on which the Group effectively obtains control.
\n
They are deconsolidated from the date that control ceases, and where any interest in the subsid
iary rema
ins, this is
\n
remeasured to its fair value and the change in carrying amount is recognised in the income statement.
\n
Associates and jo
int arrangements
\n
Joint arrangements are where two or more parties either have rights to the assets, and obligat
ions of the joint arrangement
\n
(joint operat
ions), or have rights to the net assets of the jo
int arrangement (joint venture). The Group evaluates the
\n
contractual terms of joint arrangements to determ
ine whether a jo
int arrangement
is a jo
int operat
ion or a jo
int venture.
\n
The Group did not have any contractual interest in jo
int operat
ions.
\n
An associate is an entity over which the Group has sign
i\ufb01cant
in\ufb02uence.
\n
Investments in associates and jo
int ventures are accounted for by the equ
ity method of accounting and are in
it
ially
\n
recognised at cost. The Group\u2019s investment in associates and jo
int ventures
includes goodwill ident
i\ufb01ed on acqu
is
it
ion (net of
\n
any accumulated impa
irment loss).
\n
The Group\u2019s share of its associates\u2019 and jo
int ventures\u2019 post-acqu
is
it
ion pro\ufb01ts or losses is recognised in the income statement,
\n
and its share of post-acquis
it
ion movements in other comprehensive income is recognised in reserves. The cumulative
\n
post-acquis
it
ion movements are adjusted against the carrying amount of the investment. When the Group\u2019s share of losses
\n
in an associate or a jo
int venture equals or exceeds
its interest in the associate, includ
ing any other unsecured rece
ivables, the
\n
Group does not recognise further losses, unless it has incurred obligat
ions or made payments on behalf of the assoc
iate or
\n
joint venture.
\n
Unrealised gains and losses on transactions between the Group and its associates and jo
int ventures are el
im
inated to the
\n
extent of the Group\u2019s interest in the associates and jo
int ventures. At each balance sheet date, the Group assesses whether
\n
there is any object
ive ev
idence of impa
irment
in the investment in associates and jo
int ventures. Such ev
idence includes a
\n
sign
i\ufb01cant or prolonged decl
ine in the fair value of the Group\u2019s investment in an associate or jo
int venture below
its cost,
\n
among other factors.
438
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
32. Investments in subsid
iary undertak
ings, jo
int ventures and assoc
iates
continued
\n
Sign
i\ufb01cant account
ing estimates and judgements
\n
The Group applies judgement in determin
ing
if it has control, jo
int control or s
ign
i\ufb01cant
in\ufb02uence over subsid
iar
ies, jo
int
\n
ventures and associates respectively. These judgements are based upon ident
ify
ing the relevant activ
it
ies of counterparties,
\n
being those activ
it
ies that sign
i\ufb01cantly affect the ent
it
ies returns, and further mak
ing a decis
ion of
if the Group has control
\n
over those entit
ies, joint control, or has s
ign
i\ufb01cant
in\ufb02uence (being the power to partic
ipate
in the \ufb01nanc
ial and operat
ing
\n
policy decis
ions but not control them).
\n
These judgements are at times determined by equity holdings, and the voting rights associated with those holdings.
\n
However, further considerat
ions
includ
ing but not l
im
ited to board seats, adv
isory committee members and special
ist
\n
knowledge of some decis
ion-makers are also taken
into account. Further judgement is required when determin
ing
if the
\n
Group has de-facto control over an entity even though it may hold less than 50% of the voting shares of that entity.
\n
Judgement is required to determine the relative size of the Group\u2019s shareholding when compared to the size and dispers
ion
\n
of other shareholders.
\n
Impairment testing of investments in associates and jo
int ventures, and on a Company level
investments in subsid
iar
ies is
\n
performed if there is a possible ind
icator of
impa
irment. Judgement
is used to determine if there is object
ive ev
idence of
\n
impa
irment. Objective ev
idence may be observable data such as losses incurred on the investment when applying the equity
\n
method, the granting of concessions as a result of \ufb01nanc
ial d
iff
iculty, or breaches of contracts/regulatory \ufb01nes of the
\n
associate or jo
int venture. Further judgement
is required when consider
ing broader
ind
icators of
impa
irment such as losses of
\n
active markets or ratings downgrades across key markets in which the associate or jo
int venture operate
in.
\n
Impairment testing is based on estimates includ
ing forecast
ing the expected cash \ufb02ows from the investments, growth rates,
\n
terminal values and the discount rate used in calculation of the present values of those cash \ufb02ows. The estimat
ion of future
\n
cash \ufb02ows and the level to which they are discounted is inherently uncertain and requires sign
i\ufb01cant judgement.
\n
Business combinat
ions
\n
The acquis
it
ion method of accounting is used to account for the acquis
it
ion of subsid
iar
ies by the Group. The cost of an
\n
acquis
it
ion is measured as the fair value of the assets given, equity instruments issued and liab
il
it
ies
incurred or assumed at
\n
the date of exchange, together with the fair value of any contingent considerat
ion payable. The excess of the cost of
\n
acquis
it
ion over the fair value of the Group\u2019s share of the ident
i\ufb01able net assets and cont
ingent liab
il
it
ies acqu
ired is recorded
\n
as goodwill (see Note 17 for details on goodwill recognised by the Group). If the cost of acquis
it
ion is less than the fair value of
\n
the net assets and contingent liab
il
it
ies of the subs
id
iary acqu
ired, the difference is recognised directly in the income
\n
statement.
\n
Where the fair values of the ident
i\ufb01able net assets and cont
ingent liab
il
it
ies acqu
ired have been determined provis
ionally, or
\n
where contingent or deferred considerat
ion
is payable, adjustments aris
ing from the
ir subsequent \ufb01nal
isat
ion are not
\n
re\ufb02ected in the income statement if (i) they arise with
in 12 months of the acqu
is
it
ion date (or relate to acquis
it
ions completed
\n
before 1 January 2014) and (i
i) the adjustments ar
ise from better informat
ion about cond
it
ions ex
ist
ing at the acqu
is
it
ion
\n
date (measurement period adjustments). Such adjustments are applied as at the date of acquis
it
ion and, if applicable, prior
\n
year amounts are restated. All changes that are not measurement period adjustments are reported in income other than
\n
changes in contingent considerat
ion not class
if
ied as \ufb01nancial
instruments, which are accounted for in accordance with the
\n
appropriate accounting policy, and changes in contingent considerat
ion class
if
ied as equ
ity, which is not remeasured.
\n
Changes in ownership interest in a subsid
iary, wh
ich do not result in a loss of control, are treated as transactions between
\n
equity holders and are reported in equity. Where a business combinat
ion
is achieved in stages, the previously held equity
\n
interest is remeasured at the acquis
it
ion date fair value with the resulting gain or loss recognised in the income statement.
\n
In the Company\u2019s \ufb01nancial statements,
investment in subsid
iar
ies, associates and jo
int ventures are held at cost less
\n
impa
irment and d
iv
idends from pre-acqu
is
it
ion pro\ufb01ts received prior to 1 January 2009, if any. Inter-company transactions,
\n
balances and unrealised gains and losses on transactions between Group companies are elim
inated
in the Group accounts.
\n
Investments in subsid
iary undertak
ings
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
As at 1 January
60,429
57,407
\n
Addit
ions
\n
1
\n
1,545
4,023
\n
Disposal
\n
2
\n
(999)
(1,001)
\n
As at 31 December
60,975
60,429
\n
1
Includes internal Addit
ional T
ier 1 Issuances of $1 bill
ion by Standard Chartered Bank, $500 m
ill
ion by Standard Chartered Bank (Hong Kong) Ltd (2021: Add
it
ional
\n
Tier 1 issuances of $2.7 bill
ion by Standard Chartered Bank and $1.3 b
ill
ion by Standard Chartered Hold
ings Lim
ited)
\n
2
Redemption of Addit
ional T
ier1 capital of $1 bill
ion by Standard Chartered Bank (2021: Add
it
ional T
ier1 capital of $1 bill
ion by Standard Chartered Bank)
439
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
32. Investments in subsid
iary undertak
ings, jo
int ventures and assoc
iates
continued
\n
At 31 December 2022, the princ
ipal subs
id
iary undertak
ings, all ind
irectly held except for Standard Chartered Bank (Hong Kong)
\n
Lim
ited, and pr
inc
ipally engaged
in the business of banking and provis
ion of other \ufb01nancial serv
ices, were as follows:
\n
Country and place of incorporation or registrat
ion
Main areas of operation
\n
Group interest
\n
in ordinary
\n
share capital
\n
%
\n
Standard Chartered Bank, England and Wales
United Kingdom, Middle East, South Asia, Asia Pacif
ic,
\n
Americas and, through Group companies, Africa
100
\n
Standard Chartered Bank (Hong Kong) Lim
ited, Hong Kong
Hong Kong
100
\n
Standard Chartered Bank (Singapore) Lim
ited, S
ingapore
Singapore
100
\n
Standard Chartered Bank Korea Lim
ited, Korea
Korea
100
\n
Standard Chartered Bank (China) Lim
ited, Ch
ina
\n
1
\n
China
100
\n
Standard Chartered Bank (Taiwan) Lim
ited, Ta
iwan
Taiwan
100
\n
Standard Chartered Bank AG, Germany
Germany
100
\n
Standard Chartered Bank Malaysia Berhad, Malaysia
Malaysia
100
\n
1
Under PRC law, registered as Standard Chartered Bank (China) Lim
ited
\n
Country and place of incorporation or registrat
ion
Main areas of operation
\n
Group interest
\n
in ordinary
\n
share capital
\n
%
\n
Standard Chartered Bank (Thai) Public Company Lim
ited,
\n
Thailand
Thailand
99.87
\n
Standard Chartered Bank (Pakistan) Lim
ited, Pak
istan
Pakistan
98.99
\n
Standard Chartered Bank Botswana Lim
ited, Botswana
Botswana
75.83
\n
Standard Chartered Bank Kenya Lim
ited, Kenya
Kenya
74.32
\n
Standard Chartered Bank Nepal Lim
ited, Nepal
Nepal
70.21
\n
Standard Chartered Bank Ghana PLC, Ghana
Ghana
69.42
\n
Mox Bank Lim
ited, Hong Kong
Hong Kong
65.98
\n
A complete list of subsid
iary undertak
ing is included in Note 40.
\n
The Group does not have any material non-controlling interest except as listed above, which contribute $(6.2) mill
ion
\n
(31\u00a0December 2021: $17 mill
ion) of the (loss)/Pro\ufb01t attr
ibutable to non-controlling interest and $261 mill
ion (31 December 2021:
\n
$298\u00a0mill
ion) of the equ
ity attributable to non-controlling interests
\n
While the Group\u2019s subsid
iar
ies are subject to local statutory capital and liqu
id
ity requirements in relation to foreign exchange
\n
remittance, these restrict
ions ar
ise in the normal course of business and do not sign
i\ufb01cantly restr
ict the Group\u2019s abil
ity to access
\n
or use assets and settle liab
il
it
ies of the Group.
\n
The Group does not have sign
i\ufb01cant restr
ict
ions on
its abil
ity to access or use
its assets and settle its liab
il
it
ies other than those
\n
resulting from the regulatory framework with
in wh
ich the banking subsid
iar
ies operate. These frameworks require banking
\n
operations to keep certain levels of regulatory capital, liqu
id assets, exposure l
im
its and comply w
ith other required ratios.
\n
These restrict
ions are summar
ised below:
\n
Regulatory and liqu
id
ity requirements
\n
The Group\u2019s subsid
iar
ies are required to mainta
in m
in
imum cap
ital, leverage ratios, liqu
id
ity and exposure ratios which therefore
\n
restrict the abil
ity of these subs
id
iar
ies to distr
ibute cash or other assets to the parent company.
\n
The subsid
iar
ies are also required to mainta
in balances w
ith central banks and other regulatory authorit
ies
in the countries in
\n
which they operate. At 31 December 2022, the total cash and balances with central banks was $58 bill
ion (31 December 2021:
\n
$73 bill
ion) of wh
ich $9 bill
ion (31 December 2021: $8 b
ill
ion)
is restricted.
\n
Statutory requirements
\n
The Group\u2019s subsid
iar
ies are subject to statutory requirements not to make distr
ibut
ions of capital and unrealised pro\ufb01ts to the
\n
parent company, generally to mainta
in solvency. These requ
irements restrict the abil
ity of subs
id
iar
ies to remit div
idends to the
\n
Group. Certain subsid
iar
ies are also subject to local exchange control regulations which provide for restrict
ions on export
ing
\n
capital from the country other than through normal div
idends.
440
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
32. Investments in subsid
iary undertak
ings, jo
int ventures and assoc
iates
continued
\n
Contractual requirements
\n
The encumbered assets in the balance sheet of the Group\u2019s subsid
iar
ies are not available for transfer around the Group.
\n
Encumbered assets are disclosed in Risk review and Capital review (page 236 to 325).
\n
Share of pro\ufb01t from investment in associates and jo
int ventures compr
ises:
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Loss from investment in jo
int ventures
(7)
(2)
\n
Pro\ufb01t from investment in associates
163
198
\n
Total
156
196
\n
Interests in associates and jo
int ventures
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
As at 1 January
2,147
2,162
\n
Exchange translation difference
(232)
43
\n
Addit
ions
26
90
\n
Share of pro\ufb01ts
156
196
\n
Div
idend rece
ived
(58)
(38)
\n
Disposals
(1)
(16)
\n
Impairment\u00b9
(336)
(300)
\n
Share of FVOCI and Other reserves
(79)
10
\n
Other movements
\n
2
\n
8
\u2013
\n
As at 31 December
1,631
2,147
\n
1
Other impa
irment ma
inly relates to the Group\u2019s investment in its associate China Bohai Bank (Bohai)
\n
2 Movement related to CurrencyFair
\n
A complete list of the Group\u2019s interest in associates is included in Note 40. The Group\u2019s princ
ipal assoc
iates are:
\n
Associate
\n
Nature of
\n
activ
it
ies
\n
Main areas of
\n
operation
\n
Group interest
\n
in ordinary
\n
share capital
\n
%
\n
China Bohai Bank
Banking
China
16.26
\n
CurrencyFair Lim
ited Exchange Ireland
Banking
Ireland
43.42
\n
On the 10th September 2021, The Group, through its subsid
iary Standard Chartered UK Hold
ings Lim
ited completed
its
\n
investment in CurrencyFair Lim
ited, an Ir
ish foreign exchange payments platform.
\n
The Group purchased CurrencyFair through the contribut
ion of
its exist
ing
investment in its jo
int venture, Assembly Payments
\n
Pte. Lim
ited and a cash
injection into CurrencyFair of $35 mill
ion, wh
ich provided the Group with equity of 43.42% in
\n
CurrencyFair. This ownership, along with seats on the board of directors resulted in the Group having sign
i\ufb01cant
in\ufb02uence
\n
over CurrencyFair and as such would equity method account the investment.
\n
The transaction will facil
itate creat
ion of a combined payments and foreign exchange products franchise, combin
ing the
\n
customer base, staff, expertise and capabil
it
ies of both CurrencyFair and Assembly Payments.
\n
The fair value of considerat
ion for the
investment was as follows:
\n
Considerat
ion
$mill
ion
\n
Fair value of the Group\u2019s investment in Assembly Payments
\n
1
\n
36
\n
Cash considerat
ion
35
\n
Total considerat
ion/
investment in associate
71
\n
1
The fair value of Assembly Payments was determined to be $60 mill
ion, of wh
ich the Group\u2019s equity ownership on transfer was 59.63%. The Group carried this
\n
investment under the equity method at a balance of $16 mill
ion result
ing in a pro\ufb01t on disposal of $20 mill
ion
\n
The Group\u2019s ownership percentage in China Bohai Bank is 16.26%.
\n
Although the Group\u2019s investment in China Bohai Bank is less than 20 per cent but it is considered to be an associate because of
\n
the sign
i\ufb01cant
in\ufb02uence the Group is able to exercise over the management and \ufb01nanc
ial and operat
ing polic
ies. Th
is in\ufb02uence
\n
is primar
ily through board representat
ion and the provis
ion of techn
ical expertise to Bohai. The Group applies the equity
\n
method of accounting for investments in associates.
441
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
32. Investments in subsid
iary undertak
ings, jo
int ventures and assoc
iates
continued
\n
Bohai has a statutory year end of 31 December, but publishes its year-end \ufb01nanc
ial statements after the Group. As
it is
\n
impract
icable for Boha
i to prepare \ufb01nanc
ial statements earl
ier for use of the Group, the Group recognises its share of Bohai\u2019s
\n
earnings on a three-month lag basis. Therefore, the Group recognised its share of Bohai\u2019s pro\ufb01ts and movements in other
\n
comprehensive income for the 12 months ended 30 September 2022 in the Group\u2019s consolidated statemement of income and
\n
consolidated statement of comprehensive income for the year ended 31 December 2022, respectively.
\n
There have been no material events after 30 September 2022 which would require adjustments in respect of the share of
\n
Bohai\u2019s pro\ufb01ts and movements in OCI recognised by the Group for the period ended on 31 December 2022.
\n
If the Group did not have sign
i\ufb01cant
in\ufb02uence in Bohai, the investment would be carried at fair value rather than the current
\n
carrying value.
\n
Impairment testing
\n
At 31 December 2022, the listed equity value of Bohai is below the carrying amount of the Group\u2018s investment in associate. As a
\n
result, the Group assessed the carrying value of its investment in Bohai for impa
irment and concluded that an
impa
irment loss
\n
of $308 mill
ion (2021: $300 m
ill
ion) was requ
ired. The revised carrying value of the Group\u2019s investment in Bohai of $1,421 mill
ion
\n
(2021: $1,917 mill
ion) represents the h
igher of the value in use and fair value less costs to sell. The \ufb01nanc
ial forecasts used for the
\n
VIU calculation re\ufb02ects the current economic condit
ions. The reduct
ion (compared to 2021) in the recoverable amount of Bohai
\n
is primar
ily a result of
industry challenges and uncertaint
ies that may
impact pro\ufb01tab
il
ity, as well as lower net pro\ufb01ts reported in
\n
Q3 2022 (than in Q3 2021), which is used as a starting point for the VIU calculation.
\n
Bohai
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
VIU
1,421
1,917
\n
Carrying amount
\n
1
\n
1,729
2,217
\n
Fair value\u00b2
685
1,114
\n
1
The Group\u2019s 16.26% share in the net assets less other equity instruments which the Group does not hold
\n
2
Number of shares held by the Group multipl
ied by the quoted share pr
ice at 31 December
\n
Basis of recoverable amount
\n
The impa
irment test was performed by compar
ing the recoverable amount of Bohai, determined as the higher of VIU and fair
\n
value less costs to sell, with its carrying amount.
\n
The value in use (\u2018VIU\u2019) is calculated using a div
idend d
iscount model (\u2018DDM\u2019), which estimates the distr
ibutable future cash
\n
\ufb02ows to the equity holders, after adjust
ing for the regulatory cap
ital requirements, for a 5-year period, after which a terminal
\n
value (\u2018TV\u2019) is calculated based on the \u2018Gordon Growth\u2019 model. The key assumptions in the VIU are as follows:
\n
\u2022
Short to medium term project
ions are based on management\u2019s best est
imates of future pro\ufb01ts available to ordinary
\n
shareholders and have been determined with reference to the latest published \ufb01nanc
ial results and h
istor
ical performance
\n
of Bohai;
\n
\u2022
The projections use publ
icly available informat
ion and
include normalised performance over the forecast period, inclus
ive of:
\n
(i) net pro\ufb01t growth assumptions based on China GDP; (i
i) ECL assumpt
ions using Bohai histor
ical ECL and the preva
il
ing
\n
Chinese market challenges and uncertaint
ies as a bas
is; and (i
i
i) net interest margin increases from 2024 with reference to
\n
third party market interest rate forecasts in China;
\n
\u2022
The discount rate applied to these cash \ufb02ows was estimated with reference to transaction and broker data in the local
\n
Chinese market, cross checked to the capital asset pric
ing model (CAPM), wh
ich includes a long term risk-free rate, beta and
\n
company risk premium assumptions for Bohai;
\n
\u2022
A long term growth rate for China is used to extrapolate the expected short to medium term earnings to perpetuity to derive
\n
a terminal value; and
\n
\u2022
An estimat
ion of RWAs and RWA growth to determ
ine a capital maintenance haircut to forecast pro\ufb01ts. This haircut is taken
\n
in order for Bohai to meet its target regulatory capital requirements over the forecast period. This haircut takes into account
\n
movements in risk weighted assets and the total capital required, includ
ing requ
ired retained earnings over time to meet the
\n
target capital rations.
\n
The key assumptions used in the VIU calculation:
\n
2022
\n
%
\n
2021
\n
%
\n
Pre tax discount rate
13.03
14.83
\n
Forecast pro\ufb01t long term growth rate
4.00
4.75
\n
Long term RWA growth rate
4.00
4.75
\n
Min
imum CET 1 rat
io\u00b9
7.50
7.50
\n
1
At 30 September 2022, Bohai\u2019s CET 1 ratio was 8.05%
\n\n
442
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
32. Investments in subsid
iary undertak
ings, jo
int ventures and assoc
iates
continued
\n
The sensit
iv
it
ies d
isclosed below are for changes to the discount rate, normalised pro\ufb01ts and RWA assumptions of Bohai.
\n
All these sensit
iv
ity analyses assume a CET 1 capital requirement of 7.50%, consistent with local legislat
ion. The GDP growth
\n
assumptions affect the forecast pro\ufb01ts and RWA estimates over the short to medium term and in the terminal period, and
\n
sensit
iv
it
ies are already d
isclosed, thus a separate sensit
iv
ity has not been included for this input.
\n
Carrying amount
\n
Pre impa
irment
\n
$mill
ion
\n
Base Case
Sensit
iv
it
ies \u2013 2022
\n
VIU
\n
$mill
ion
\n
Headroom
\n
$mill
ion
\n
Pre tax
\n
discount
\n
rate
GDP
\n
Discount rate
Forecast pro\ufb01t
\n
1
\n
RWA
\n
Combined
Combined
\n
RWA -10%
RWA +10%
\n
+1%
-1%
+10%
-10%
+10%
-10%
CF -10%
CF +10%
\n
Impairment
\n
$mill
ion
\n
Impairment
\n
$mill
ion
\n
Impairment
\n
$mill
ion
\n
Impairment
\n
$mill
ion
\n
Impairment
\n
$mill
ion
\n
Impairment
\n
$mill
ion
\n
Impairment
\n
$mill
ion
\n
Impairment
\n
$mill
ion
\n
1,729
1,421
(308) 13.03%
4.00%
(504)
(48)
(67)
(552)
(578)
(40)
(283)
(336)
\n
1
Results include changes to NIM and addit
ional ECL overlay assumpt
ions, which are not necessarily linear
\n
To improve the headroom to zero would require, on the basis of changing ind
iv
idual assumptions an increase in forecast pro\ufb01ts
\n
by 12.76 per cent, decrease in discount rate by 1.15 per cent and a decrease in RWA by 11.50 per cent.
\n
The following table sets out the summarised \ufb01nanc
ial statements of Ch
ina Bohai Bank prior to the Group\u2019s share of the
\n
associates being applied:
\n
30 Sep 2022
\n
$mill
ion
\n
30 Sep 2021
\n
$mill
ion
\n
Total assets
236,396
250,951
\n
Total liab
il
it
ies
220,662
234,196
\n
Operating income
\n
1
\n
3,958
4,840
\n
Net pro\ufb01t
\n
1
\n
1,186
1,230
\n
Other comprehensive income
\n
1
\n
(457)
44
\n
1
This represents twelve months of earnings (1 October to 30 September)", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInAssociatesExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f97445": { "value": "Accounting policy \n
Subsid
iar
ies
\n
Subsid
iar
ies are all entit
ies,
includ
ing structured ent
it
ies, wh
ich the Group controls. The Group controls an entity when it is
\n
exposed to, and has rights to, variable returns from its involvement with the entity and has the abil
ity to affect those returns
\n
through its power over the investee. The assessment of power is based on the Group\u2019s practical abil
ity to d
irect the relevant
\n
activ
it
ies of the entity unilaterally for the Group\u2019s own bene\ufb01t and is subject to reassessment if and when one or more of the
\n
elements of control change. Subsid
iar
ies are fully consolidated from the date on which the Group effectively obtains control.
\n
They are deconsolidated from the date that control ceases, and where any interest in the subsid
iary rema
ins, this is
\n
remeasured to its fair value and the change in carrying amount is recognised in the income statement.
\n
Associates and jo
int arrangements
\n
Joint arrangements are where two or more parties either have rights to the assets, and obligat
ions of the joint arrangement
\n
(joint operat
ions), or have rights to the net assets of the jo
int arrangement (joint venture). The Group evaluates the
\n
contractual terms of joint arrangements to determ
ine whether a jo
int arrangement
is a jo
int operat
ion or a jo
int venture.
\n
The Group did not have any contractual interest in jo
int operat
ions.
\n
An associate is an entity over which the Group has sign
i\ufb01cant
in\ufb02uence.
\n
Investments in associates and jo
int ventures are accounted for by the equ
ity method of accounting and are in
it
ially
\n
recognised at cost. The Group\u2019s investment in associates and jo
int ventures
includes goodwill ident
i\ufb01ed on acqu
is
it
ion (net of
\n
any accumulated impa
irment loss).
\n
The Group\u2019s share of its associates\u2019 and jo
int ventures\u2019 post-acqu
is
it
ion pro\ufb01ts or losses is recognised in the income statement,
\n
and its share of post-acquis
it
ion movements in other comprehensive income is recognised in reserves. The cumulative
\n
post-acquis
it
ion movements are adjusted against the carrying amount of the investment. When the Group\u2019s share of losses
\n
in an associate or a jo
int venture equals or exceeds
its interest in the associate, includ
ing any other unsecured rece
ivables, the
\n
Group does not recognise further losses, unless it has incurred obligat
ions or made payments on behalf of the assoc
iate or
\n
joint venture.
\n
Unrealised gains and losses on transactions between the Group and its associates and jo
int ventures are el
im
inated to the
\n
extent of the Group\u2019s interest in the associates and jo
int ventures. At each balance sheet date, the Group assesses whether
\n
there is any object
ive ev
idence of impa
irment
in the investment in associates and jo
int ventures. Such ev
idence includes a
\n
sign
i\ufb01cant or prolonged decl
ine in the fair value of the Group\u2019s investment in an associate or jo
int venture below
its cost,
\n
among other factors.
438
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
32. Investments in subsid
iary undertak
ings, jo
int ventures and assoc
iates
continued
\n
Sign
i\ufb01cant account
ing estimates and judgements
\n
The Group applies judgement in determin
ing
if it has control, jo
int control or s
ign
i\ufb01cant
in\ufb02uence over subsid
iar
ies, jo
int
\n
ventures and associates respectively. These judgements are based upon ident
ify
ing the relevant activ
it
ies of counterparties,
\n
being those activ
it
ies that sign
i\ufb01cantly affect the ent
it
ies returns, and further mak
ing a decis
ion of
if the Group has control
\n
over those entit
ies, joint control, or has s
ign
i\ufb01cant
in\ufb02uence (being the power to partic
ipate
in the \ufb01nanc
ial and operat
ing
\n
policy decis
ions but not control them).
\n
These judgements are at times determined by equity holdings, and the voting rights associated with those holdings.
\n
However, further considerat
ions
includ
ing but not l
im
ited to board seats, adv
isory committee members and special
ist
\n
knowledge of some decis
ion-makers are also taken
into account. Further judgement is required when determin
ing
if the
\n
Group has de-facto control over an entity even though it may hold less than 50% of the voting shares of that entity.
\n
Judgement is required to determine the relative size of the Group\u2019s shareholding when compared to the size and dispers
ion
\n
of other shareholders.
\n
Impairment testing of investments in associates and jo
int ventures, and on a Company level
investments in subsid
iar
ies is
\n
performed if there is a possible ind
icator of
impa
irment. Judgement
is used to determine if there is object
ive ev
idence of
\n
impa
irment. Objective ev
idence may be observable data such as losses incurred on the investment when applying the equity
\n
method, the granting of concessions as a result of \ufb01nanc
ial d
iff
iculty, or breaches of contracts/regulatory \ufb01nes of the
\n
associate or jo
int venture. Further judgement
is required when consider
ing broader
ind
icators of
impa
irment such as losses of
\n
active markets or ratings downgrades across key markets in which the associate or jo
int venture operate
in.
\n
Impairment testing is based on estimates includ
ing forecast
ing the expected cash \ufb02ows from the investments, growth rates,
\n
terminal values and the discount rate used in calculation of the present values of those cash \ufb02ows. The estimat
ion of future
\n
cash \ufb02ows and the level to which they are discounted is inherently uncertain and requires sign
i\ufb01cant judgement.
\n
Business combinat
ions
\n
The acquis
it
ion method of accounting is used to account for the acquis
it
ion of subsid
iar
ies by the Group. The cost of an
\n
acquis
it
ion is measured as the fair value of the assets given, equity instruments issued and liab
il
it
ies
incurred or assumed at
\n
the date of exchange, together with the fair value of any contingent considerat
ion payable. The excess of the cost of
\n
acquis
it
ion over the fair value of the Group\u2019s share of the ident
i\ufb01able net assets and cont
ingent liab
il
it
ies acqu
ired is recorded
\n
as goodwill (see Note 17 for details on goodwill recognised by the Group). If the cost of acquis
it
ion is less than the fair value of
\n
the net assets and contingent liab
il
it
ies of the subs
id
iary acqu
ired, the difference is recognised directly in the income
\n
statement.
\n
Where the fair values of the ident
i\ufb01able net assets and cont
ingent liab
il
it
ies acqu
ired have been determined provis
ionally, or
\n
where contingent or deferred considerat
ion
is payable, adjustments aris
ing from the
ir subsequent \ufb01nal
isat
ion are not
\n
re\ufb02ected in the income statement if (i) they arise with
in 12 months of the acqu
is
it
ion date (or relate to acquis
it
ions completed
\n
before 1 January 2014) and (i
i) the adjustments ar
ise from better informat
ion about cond
it
ions ex
ist
ing at the acqu
is
it
ion
\n
date (measurement period adjustments). Such adjustments are applied as at the date of acquis
it
ion and, if applicable, prior
\n
year amounts are restated. All changes that are not measurement period adjustments are reported in income other than
\n
changes in contingent considerat
ion not class
if
ied as \ufb01nancial
instruments, which are accounted for in accordance with the
\n
appropriate accounting policy, and changes in contingent considerat
ion class
if
ied as equ
ity, which is not remeasured.
\n
Changes in ownership interest in a subsid
iary, wh
ich do not result in a loss of control, are treated as transactions between
\n
equity holders and are reported in equity. Where a business combinat
ion
is achieved in stages, the previously held equity
\n
interest is remeasured at the acquis
it
ion date fair value with the resulting gain or loss recognised in the income statement.
\n
In the Company\u2019s \ufb01nancial statements,
investment in subsid
iar
ies, associates and jo
int ventures are held at cost less
\n
impa
irment and d
iv
idends from pre-acqu
is
it
ion pro\ufb01ts received prior to 1 January 2009, if any. Inter-company transactions,
\n
balances and unrealised gains and losses on transactions between Group companies are elim
inated
in the Group accounts.", "dimensions": { "concept": "stan:DescriptionOfAccountingPolicyForInvestmentsInSubsidiaryUndertakingsJointVenturesAndAssociatesExplanatoryPolicyTextBlock", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f97448": { "value": "Subsid
iar
ies
\n
Subsid
iar
ies are all entit
ies,
includ
ing structured ent
it
ies, wh
ich the Group controls. The Group controls an entity when it is
\n
exposed to, and has rights to, variable returns from its involvement with the entity and has the abil
ity to affect those returns
\n
through its power over the investee. The assessment of power is based on the Group\u2019s practical abil
ity to d
irect the relevant
\n
activ
it
ies of the entity unilaterally for the Group\u2019s own bene\ufb01t and is subject to reassessment if and when one or more of the
\n
elements of control change. Subsid
iar
ies are fully consolidated from the date on which the Group effectively obtains control.
\n
They are deconsolidated from the date that control ceases, and where any interest in the subsid
iary rema
ins, this is
\nremeasured to its fair value and the change in carrying amount is recognised in the income statement.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f97478": { "value": "Associates and jo
int arrangements
\n
Joint arrangements are where two or more parties either have rights to the assets, and obligat
ions of the joint arrangement
\n
(joint operat
ions), or have rights to the net assets of the jo
int arrangement (joint venture). The Group evaluates the
\n
contractual terms of joint arrangements to determ
ine whether a jo
int arrangement
is a jo
int operat
ion or a jo
int venture.
\n
The Group did not have any contractual interest in jo
int operat
ions.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociatesAndJointVenturesExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f97479": { "value": "Associates and jo
int arrangements
\n
Joint arrangements are where two or more parties either have rights to the assets, and obligat
ions of the joint arrangement
\n
(joint operat
ions), or have rights to the net assets of the jo
int arrangement (joint venture). The Group evaluates the
\n
contractual terms of joint arrangements to determ
ine whether a jo
int arrangement
is a jo
int operat
ion or a jo
int venture.
\n
The Group did not have any contractual interest in jo
int operat
ions.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociates", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f97480": { "value": "Associates and jo
int arrangements
\n
Joint arrangements are where two or more parties either have rights to the assets, and obligat
ions of the joint arrangement
\n
(joint operat
ions), or have rights to the net assets of the jo
int arrangement (joint venture). The Group evaluates the
\n
contractual terms of joint arrangements to determ
ine whether a jo
int arrangement
is a jo
int operat
ion or a jo
int venture.
\n
The Group did not have any contractual interest in jo
int operat
ions.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsInJointVentures", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f97682": { "value": "Business combinat
ions
\n
The acquis
it
ion method of accounting is used to account for the acquis
it
ion of subsid
iar
ies by the Group. The cost of an
\n
acquis
it
ion is measured as the fair value of the assets given, equity instruments issued and liab
il
it
ies
incurred or assumed at
\n
the date of exchange, together with the fair value of any contingent considerat
ion payable. The excess of the cost of
\n
acquis
it
ion over the fair value of the Group\u2019s share of the ident
i\ufb01able net assets and cont
ingent liab
il
it
ies acqu
ired is recorded
\n
as goodwill (see Note 17 for details on goodwill recognised by the Group). If the cost of acquis
it
ion is less than the fair value of
\n
the net assets and contingent liab
il
it
ies of the subs
id
iary acqu
ired, the difference is recognised directly in the income
\n
statement.
\n
Where the fair values of the ident
i\ufb01able net assets and cont
ingent liab
il
it
ies acqu
ired have been determined provis
ionally, or
\n
where contingent or deferred considerat
ion
is payable, adjustments aris
ing from the
ir subsequent \ufb01nal
isat
ion are not
\n
re\ufb02ected in the income statement if (i) they arise with
in 12 months of the acqu
is
it
ion date (or relate to acquis
it
ions completed
\n
before 1 January 2014) and (i
i) the adjustments ar
ise from better informat
ion about cond
it
ions ex
ist
ing at the acqu
is
it
ion
\n
date (measurement period adjustments). Such adjustments are applied as at the date of acquis
it
ion and, if applicable, prior
\n
year amounts are restated. All changes that are not measurement period adjustments are reported in income other than
\n
changes in contingent considerat
ion not class
if
ied as \ufb01nancial
instruments, which are accounted for in accordance with the
\n
appropriate accounting policy, and changes in contingent considerat
ion class
if
ied as equ
ity, which is not remeasured.
\n
Changes in ownership interest in a subsid
iary, wh
ich do not result in a loss of control, are treated as transactions between
\n
equity holders and are reported in equity. Where a business combinat
ion
is achieved in stages, the previously held equity
\n
interest is remeasured at the acquis
it
ion date fair value with the resulting gain or loss recognised in the income statement.
\n
In the Company\u2019s \ufb01nancial statements,
investment in subsid
iar
ies, associates and jo
int ventures are held at cost less
\n
impa
irment and d
iv
idends from pre-acqu
is
it
ion pro\ufb01ts received prior to 1 January 2009, if any. Inter-company transactions,
\n
balances and unrealised gains and losses on transactions between Group companies are elim
inated
in the Group accounts.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f98589": { "value": "33. Structured entit
ies
\n
Accounting policy
\n
A structured entity is an entity that has been designed so that voting or sim
ilar r
ights are not the dominant factor in decid
ing
\n
who controls the entity. Contractual arrangements determine the rights and therefore relevant activ
it
ies of the structured
\n
entity. Structured entit
ies are generally created to ach
ieve a narrow and well-de\ufb01ned object
ive w
ith restrict
ions around the
ir
\n
activ
it
ies. Structured entit
ies are consol
idated when the substance of the relationsh
ip between the Group and the structured
\n
entity ind
icates the Group has power over the contractual relevant act
iv
it
ies of the structured entity, is exposed to variable
\n
returns, and can use that power to affect the variable return exposure.
\n
In determin
ing whether to consol
idate a structured entity to which assets have been transferred, the Group takes into
\n
account its abil
ity to d
irect the relevant activ
it
ies of the structured entity. These relevant activ
it
ies are generally evidenced
\n
through a unilateral right to liqu
idate the structured ent
ity, investment in a substantial proportion of the securit
ies
issued by
\n
the structured entity or where the Group holds specif
ic subord
inate securit
ies that embody certa
in controlling rights. The
\n
Group may further consider relevant activ
it
ies embedded with
in contractual arrangements such as call opt
ions which give
\n
the practical abil
ity to d
irect the entity, special relationsh
ips between the structured ent
ity and investors, and if a single
\n
investor has a large exposure to variable returns of the structured entity.
\n
Judgement is required in determin
ing control over structured ent
it
ies. The purpose and des
ign of the entity is considered,
\n
along with a determinat
ion of what the relevant act
iv
it
ies are of the entity and who directs these. Further judgements are
\n
made around which investor is exposed to, and absorbs the variable returns of the structured entity. The Group will have to
\n
weigh up all of these facts to consider whether the Group, or another involved party is acting as a princ
ipal
in its own right or
\n
as an agent on behalf of others. Judgement is further required in the ongoing assessment of control over structured entit
ies,
\n
specif
ically
if market condit
ions have an effect on the var
iable return exposure of different investors.
\n
The Group has involvement with both consolidated and unconsolidated structured entit
ies, wh
ich may be established by the
\n
Group as a sponsor or by a third-party.
\n
Interests in consolidated structured entit
ies:
A structured entity is consolidated into the Group\u2019s \ufb01nanc
ial statements where the
\n
Group controls the structured entity, as per the determinat
ion
in the accounting policy above. The following table presents the
\n
Group\u2019s interests in consolidated structured entit
ies.
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Aircraft and ship leasing
3,531
3,450
\n
Princ
ipal and other structured \ufb01nance
330
229
\n
Total
3,861
3,679
\n
Interests in unconsolidated structured entit
ies:
Unconsolidated structured entit
ies are all structured ent
it
ies that are not
\n
controlled by the Group. The Group enters into transactions with unconsolidated structured entit
ies
in the normal course of
\n
business to facil
itate customer transact
ions and for specif
ic
investment opportunit
ies. Th
is is predominantly with
in the CCIB
\n
business segment.
An interest in a structured entity is contractual or non-contractual involvement which creates variab
il
ity of
\n
the returns of the Group aris
ing from the performance of the structured ent
ity.
\n\n
444
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
33. Structured entit
ies
continued
\n
The table below presents the carrying amount of the assets recognised in the \ufb01nanc
ial statements relat
ing to interests held in
\n
unconsolidated structured entit
ies, the max
imum exposure to loss relating to those interests and the total assets of the
\n
structured entit
ies. Max
imum exposure to loss is primar
ily l
im
ited to the carry
ing amount of the Group\u2019s on-balance sheet
\n
exposure to the structured entity. For derivat
ives, the max
imum exposure to loss represents the on-balance sheet valuation and
\n
not the notional amount. For commitments and guarantees, the maximum exposure to loss is the notional amount of potential
\n
future losses.
\n
2022\u00b9
2021 (Restated)\u00b2
\n
Asset-
\n
backed
\n
securit
ies
\n
$mill
ion
\n
Corporate
\n
Lending &
\n
Structured
\n
Finance
\n
$mill
ion
\n
Princ
ipal
\n
Finance
\n
funds
\n
$mill
ion
\n
Other
\n
activ
it
ies
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Asset-
\n
backed
\n
securit
ies
\n
$mill
ion
\n
Corporate
\n
Lending &
\n
Structured
\n
Finance\u00b9
\n
$mill
ion
\n
Princ
ipal
\n
Finance
\n
funds
\n
$mill
ion
\n
Other
\n
activ
it
ies
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Group\u2019s interest - assets
\n
Financ
ial assets held at fa
ir value
\n
through pro\ufb01t or loss
851
\u2013
136
\u2013
987
1,144
\u2013
128
35
1,307
\n
Loans and advances/Investment
\n
securit
ies at amort
ised cost
18,696
35,928
\u2013
246
54,870
13,635
34,114
\u2013
\u2013
47,749
\n
Investment securit
ies (fa
ir value
\n
through other comprehensive
\n
income)
2,248
\u2013
\u2013
\u2013
2,248
2,221
\u2013
\u2013
\u2013
2,221
\n
Other assets
\u2013
\u2013
8
\u2013
8
\u2013
\u2013
10
\u2013
10
\n
Total assets
21,795
35,928
144
246
58,113
17,000
34,114
138
35
51,287
\n
Off-balance sheet
\u2013
18,385
93
\u2013
18,478
42
17,773
102
\u2013
17,917
\n
Group\u2019s maximum exposure to loss
21,795
54,313
237
246
76,591
17,042
51,887
240
35
69,204
\n
Total assets of structured entit
ies
177,194
53,657
291
1,828
232,970
241,580
48,833
1,014
37
291,465
\n
1
As at 31 December 2022 Corporate Lending & Structured Finance includes $14,261 mill
ion (2021: $15,549 m
ill
ion) related to Loans and advances/
investment
\n
securit
ies at amort
ized cost with
in Structured F
inance and $21,667 mill
ion (2021: $18,565 m
ill
ion) w
ith
in Corporate Lend
ing; Group\u2019s maximum exposure to loss
\n
with
in Structured F
inance of $22,971 mill
ion (2021: $24,146 m
ill
ion) and $31,342 m
ill
ion (2021: $27,741 m
ill
ion) w
ith
in Corporate Lend
ing; and Total assets of structured
\n
entit
ies w
ith
in Structured F
inance of $35,732 mill
ion (2021: $31,683 m
ill
ion) and $17,925 m
ill
ion (2021: $17,149 m
ill
ion) w
ith
in Corporate Lend
ing
\n
2 The 2021 have been restated to re\ufb02ect the addit
ion of the Group\u2019s
interest in certain entit
ies reported on the Group\u2019s balance sheet but not prev
iously disclosed as
\n
unconsolidated structured entit
ies, assoc
iated off-balance sheet exposure, maximum exposure to loss, and the total assets of structured entit
ies. The restatement
\n
results in increases to the following: Loans and advances/investment securit
ies at amort
ized cost with
in Structured F
inance of $12,083 mill
ion and Corporate
\n
Lending of $18,565 mill
ion; Group\u2019s max
imum exposure to loss with
in Structured F
inance of $19,545 mill
ion and Corporate Lend
ing of $27,741 mill
ion; Off-balance
\n
sheet with
in Structured F
inance of $7,462 mill
ion and Corporate Lend
ing of $9,176 mill
ion; and Total assets of structured ent
it
ies w
ith
in Structured F
inance of
\n
$17,728 mill
ion and Corporate Lend
ing of $17,149 mill
ion
\n
The main types of activ
it
ies for which the Group util
ises unconsol
idated structured entit
ies cover synthet
ic credit default swaps
\n
for managed investment funds (includ
ing spec
ial
ised Pr
inc
ipal F
inance funds), portfolio management purposes, structured
\n
\ufb01nance and asset-backed securit
ies. These are deta
iled as follows:
\n
\u2022
Asset-backed securit
ies (ABS):
The Group also has investments in asset-backed securit
ies
issued by third-party sponsored
\n
and managed structured entit
ies. For the purpose of market mak
ing and at the discret
ion of ABS trad
ing desk, the Group may
\n
hold an immater
ial amount of debt secur
it
ies from structured ent
it
ies or
ig
inated by cred
it portfolio management. This is
\n
disclosed in the ABS column above.
\n
\u2022
Portfolio management (Group sponsored entit
ies): For the purposes of portfol
io management, the Group purchased credit
\n
protection via synthetic credit default swaps from note-issu
ing structured ent
it
ies. Th
is credit protection creates credit risk
\n
which the structured entity and subsequently the end investor absorbs. The referenced assets remain on the Group\u2019s balance
\n
sheet as they are not assigned to these structured entit
ies. The Group cont
inues to own or hold all of the risks and returns
\n
relating to these assets. The credit protection obtained from the regulatory-compliant securit
isat
ion only serves to protect
\n
the Group against losses upon the occurrence of elig
ible cred
it events and the underlying assets are not derecognised
\n
from the Group\u2019s balance sheet. The Group does not hold any equity interests in the structured entit
ies, but may hold an
\n
ins
ign
if
icant amount of the
issued notes for market making purposes. This is disclosed in the ABS section above. The proceeds
\n
of the notes\u2019 issuance are typically held as cash collateral in the issuer\u2019s account operated by a trustee or invested in AAA-
\n
rated government-backed securit
ies to collateral
ise the structured entit
ies swap obl
igat
ions to the Group, and to repay the
\n
princ
ipal to
investors at maturity. The structured entit
ies re
imburse the Group on actual losses incurred, through the use of the
\n
cash collateral or realisat
ion of the collateral secur
ity. Correspondingly, the structured entit
ies wr
ite down the notes issued by
\n
an equal amount of the losses incurred, in reverse order of senior
ity. All fund
ing is committed for the life of these vehicles and
\n
the Group has no ind
irect exposure
in respect of the vehicles\u2019 liqu
id
ity posit
ion. The Group has reputat
ional risk in respect of
\n
certain portfolio management vehicles and investment funds either because the Group is the arranger and lead manager or
\n
because the structured entit
ies have Standard Chartered brand
ing.
\n
\u2022
Corporate Lending & Structured \ufb01nance:
Corporate Lending comprises secured lending in the normal course of business to
\n
third parties through structured entit
ies.
\n
Structured \ufb01nance comprises interests in transactions that the Group or, more usually, a customer has structured, using one or
\n
more structured entit
ies, wh
ich provide bene\ufb01c
ial arrangements for customers. The Group\u2019s exposure pr
imar
ily represents the
\n
provis
ion of fund
ing to these structures as a \ufb01nanc
ial
intermed
iary, for wh
ich it receives a lender\u2019s return. The transactions
\n
largely relate to real estate \ufb01nancing and the prov
is
ion of a
ircraft leasing and ship \ufb01nance.
\n
\u2022
Princ
ipal \ufb01nance fund:
The Group\u2019s exposure to Princ
ipal F
inance Funds represents committed or invested capital in
\n
unleveraged investment funds, primar
ily
invest
ing
in pan-Asian infrastructure, real estate and private equity.
\n
\u2022
Other activ
it
ies:
Other activ
it
ies include structured entit
ies created to support marg
in \ufb01nanc
ing transact
ions, the re\ufb01nanc
ing
\n
of exist
ing cred
it and debt facil
it
ies, as well as setting up of bankruptcy remote structured entit
ies.", "dimensions": { "concept": "stan:DisclosureOfStructuredEntitiesExplanatoryTextBlock", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f98594": { "value": "Accounting policy \n
A structured entity is an entity that has been designed so that voting or sim
ilar r
ights are not the dominant factor in decid
ing
\n
who controls the entity. Contractual arrangements determine the rights and therefore relevant activ
it
ies of the structured
\n
entity. Structured entit
ies are generally created to ach
ieve a narrow and well-de\ufb01ned object
ive w
ith restrict
ions around the
ir
\n
activ
it
ies. Structured entit
ies are consol
idated when the substance of the relationsh
ip between the Group and the structured
\n
entity ind
icates the Group has power over the contractual relevant act
iv
it
ies of the structured entity, is exposed to variable
\n
returns, and can use that power to affect the variable return exposure.
\n
In determin
ing whether to consol
idate a structured entity to which assets have been transferred, the Group takes into
\n
account its abil
ity to d
irect the relevant activ
it
ies of the structured entity. These relevant activ
it
ies are generally evidenced
\n
through a unilateral right to liqu
idate the structured ent
ity, investment in a substantial proportion of the securit
ies
issued by
\n
the structured entity or where the Group holds specif
ic subord
inate securit
ies that embody certa
in controlling rights. The
\n
Group may further consider relevant activ
it
ies embedded with
in contractual arrangements such as call opt
ions which give
\n
the practical abil
ity to d
irect the entity, special relationsh
ips between the structured ent
ity and investors, and if a single
\n
investor has a large exposure to variable returns of the structured entity.
\n
Judgement is required in determin
ing control over structured ent
it
ies. The purpose and des
ign of the entity is considered,
\n
along with a determinat
ion of what the relevant act
iv
it
ies are of the entity and who directs these. Further judgements are
\n
made around which investor is exposed to, and absorbs the variable returns of the structured entity. The Group will have to
\n
weigh up all of these facts to consider whether the Group, or another involved party is acting as a princ
ipal
in its own right or
\n
as an agent on behalf of others. Judgement is further required in the ongoing assessment of control over structured entit
ies,
\n
specif
ically
if market condit
ions have an effect on the var
iable return exposure of different investors.
\n
The Group has involvement with both consolidated and unconsolidated structured entit
ies, wh
ich may be established by the
\nGroup as a sponsor or by a third-party.", "dimensions": { "concept": "stan:DescriptionOfAccountingPolicyForStructuredEntitiesExplanatoryPolicyTextBlock", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f98680": { "value": "Interests in consolidated structured entit
ies:
A structured entity is consolidated into the Group\u2019s \ufb01nanc
ial statements where the
\n
Group controls the structured entity, as per the determinat
ion
in the accounting policy above. The following table presents the
\n
Group\u2019s interests in consolidated structured entit
ies.
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Aircraft and ship leasing
3,531
3,450
\n
Princ
ipal and other structured \ufb01nance
330
229
\n
Total
3,861
3,679", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutConsolidatedStructuredEntitiesExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f98708": { "value": "Interests in unconsolidated structured entit
ies:
Unconsolidated structured entit
ies are all structured ent
it
ies that are not
\n
controlled by the Group. The Group enters into transactions with unconsolidated structured entit
ies
in the normal course of
\n
business to facil
itate customer transact
ions and for specif
ic
investment opportunit
ies. Th
is is predominantly with
in the CCIB
\n
business segment.
An interest in a structured entity is contractual or non-contractual involvement which creates variab
il
ity of
\n
the returns of the Group aris
ing from the performance of the structured ent
ity.
\n\n
444
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
33. Structured entit
ies
continued
\n
The table below presents the carrying amount of the assets recognised in the \ufb01nanc
ial statements relat
ing to interests held in
\n
unconsolidated structured entit
ies, the max
imum exposure to loss relating to those interests and the total assets of the
\n
structured entit
ies. Max
imum exposure to loss is primar
ily l
im
ited to the carry
ing amount of the Group\u2019s on-balance sheet
\n
exposure to the structured entity. For derivat
ives, the max
imum exposure to loss represents the on-balance sheet valuation and
\n
not the notional amount. For commitments and guarantees, the maximum exposure to loss is the notional amount of potential
\n
future losses.
\n
2022\u00b9
2021 (Restated)\u00b2
\n
Asset-
\n
backed
\n
securit
ies
\n
$mill
ion
\n
Corporate
\n
Lending &
\n
Structured
\n
Finance
\n
$mill
ion
\n
Princ
ipal
\n
Finance
\n
funds
\n
$mill
ion
\n
Other
\n
activ
it
ies
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Asset-
\n
backed
\n
securit
ies
\n
$mill
ion
\n
Corporate
\n
Lending &
\n
Structured
\n
Finance\u00b9
\n
$mill
ion
\n
Princ
ipal
\n
Finance
\n
funds
\n
$mill
ion
\n
Other
\n
activ
it
ies
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Group\u2019s interest - assets
\n
Financ
ial assets held at fa
ir value
\n
through pro\ufb01t or loss
851
\u2013
136
\u2013
987
1,144
\u2013
128
35
1,307
\n
Loans and advances/Investment
\n
securit
ies at amort
ised cost
18,696
35,928
\u2013
246
54,870
13,635
34,114
\u2013
\u2013
47,749
\n
Investment securit
ies (fa
ir value
\n
through other comprehensive
\n
income)
2,248
\u2013
\u2013
\u2013
2,248
2,221
\u2013
\u2013
\u2013
2,221
\n
Other assets
\u2013
\u2013
8
\u2013
8
\u2013
\u2013
10
\u2013
10
\n
Total assets
21,795
35,928
144
246
58,113
17,000
34,114
138
35
51,287
\n
Off-balance sheet
\u2013
18,385
93
\u2013
18,478
42
17,773
102
\u2013
17,917
\n
Group\u2019s maximum exposure to loss
21,795
54,313
237
246
76,591
17,042
51,887
240
35
69,204
\n
Total assets of structured entit
ies
177,194
53,657
291
1,828
232,970
241,580
48,833
1,014
37
291,465
\n
1
As at 31 December 2022 Corporate Lending & Structured Finance includes $14,261 mill
ion (2021: $15,549 m
ill
ion) related to Loans and advances/
investment
\n
securit
ies at amort
ized cost with
in Structured F
inance and $21,667 mill
ion (2021: $18,565 m
ill
ion) w
ith
in Corporate Lend
ing; Group\u2019s maximum exposure to loss
\n
with
in Structured F
inance of $22,971 mill
ion (2021: $24,146 m
ill
ion) and $31,342 m
ill
ion (2021: $27,741 m
ill
ion) w
ith
in Corporate Lend
ing; and Total assets of structured
\n
entit
ies w
ith
in Structured F
inance of $35,732 mill
ion (2021: $31,683 m
ill
ion) and $17,925 m
ill
ion (2021: $17,149 m
ill
ion) w
ith
in Corporate Lend
ing
\n
2 The 2021 have been restated to re\ufb02ect the addit
ion of the Group\u2019s
interest in certain entit
ies reported on the Group\u2019s balance sheet but not prev
iously disclosed as
\n
unconsolidated structured entit
ies, assoc
iated off-balance sheet exposure, maximum exposure to loss, and the total assets of structured entit
ies. The restatement
\n
results in increases to the following: Loans and advances/investment securit
ies at amort
ized cost with
in Structured F
inance of $12,083 mill
ion and Corporate
\n
Lending of $18,565 mill
ion; Group\u2019s max
imum exposure to loss with
in Structured F
inance of $19,545 mill
ion and Corporate Lend
ing of $27,741 mill
ion; Off-balance
\n
sheet with
in Structured F
inance of $7,462 mill
ion and Corporate Lend
ing of $9,176 mill
ion; and Total assets of structured ent
it
ies w
ith
in Structured F
inance of
\n
$17,728 mill
ion and Corporate Lend
ing of $17,149 mill
ion
\n
The main types of activ
it
ies for which the Group util
ises unconsol
idated structured entit
ies cover synthet
ic credit default swaps
\n
for managed investment funds (includ
ing spec
ial
ised Pr
inc
ipal F
inance funds), portfolio management purposes, structured
\n
\ufb01nance and asset-backed securit
ies. These are deta
iled as follows:
\n
\u2022
Asset-backed securit
ies (ABS):
The Group also has investments in asset-backed securit
ies
issued by third-party sponsored
\n
and managed structured entit
ies. For the purpose of market mak
ing and at the discret
ion of ABS trad
ing desk, the Group may
\n
hold an immater
ial amount of debt secur
it
ies from structured ent
it
ies or
ig
inated by cred
it portfolio management. This is
\n
disclosed in the ABS column above.
\n
\u2022
Portfolio management (Group sponsored entit
ies): For the purposes of portfol
io management, the Group purchased credit
\n
protection via synthetic credit default swaps from note-issu
ing structured ent
it
ies. Th
is credit protection creates credit risk
\n
which the structured entity and subsequently the end investor absorbs. The referenced assets remain on the Group\u2019s balance
\n
sheet as they are not assigned to these structured entit
ies. The Group cont
inues to own or hold all of the risks and returns
\n
relating to these assets. The credit protection obtained from the regulatory-compliant securit
isat
ion only serves to protect
\n
the Group against losses upon the occurrence of elig
ible cred
it events and the underlying assets are not derecognised
\n
from the Group\u2019s balance sheet. The Group does not hold any equity interests in the structured entit
ies, but may hold an
\n
ins
ign
if
icant amount of the
issued notes for market making purposes. This is disclosed in the ABS section above. The proceeds
\n
of the notes\u2019 issuance are typically held as cash collateral in the issuer\u2019s account operated by a trustee or invested in AAA-
\n
rated government-backed securit
ies to collateral
ise the structured entit
ies swap obl
igat
ions to the Group, and to repay the
\n
princ
ipal to
investors at maturity. The structured entit
ies re
imburse the Group on actual losses incurred, through the use of the
\n
cash collateral or realisat
ion of the collateral secur
ity. Correspondingly, the structured entit
ies wr
ite down the notes issued by
\n
an equal amount of the losses incurred, in reverse order of senior
ity. All fund
ing is committed for the life of these vehicles and
\n
the Group has no ind
irect exposure
in respect of the vehicles\u2019 liqu
id
ity posit
ion. The Group has reputat
ional risk in respect of
\n
certain portfolio management vehicles and investment funds either because the Group is the arranger and lead manager or
\n
because the structured entit
ies have Standard Chartered brand
ing.
\n
\u2022
Corporate Lending & Structured \ufb01nance:
Corporate Lending comprises secured lending in the normal course of business to
\n
third parties through structured entit
ies.
\n
Structured \ufb01nance comprises interests in transactions that the Group or, more usually, a customer has structured, using one or
\n
more structured entit
ies, wh
ich provide bene\ufb01c
ial arrangements for customers. The Group\u2019s exposure pr
imar
ily represents the
\n
provis
ion of fund
ing to these structures as a \ufb01nanc
ial
intermed
iary, for wh
ich it receives a lender\u2019s return. The transactions
\n
largely relate to real estate \ufb01nancing and the prov
is
ion of a
ircraft leasing and ship \ufb01nance.
\n
\u2022
Princ
ipal \ufb01nance fund:
The Group\u2019s exposure to Princ
ipal F
inance Funds represents committed or invested capital in
\n
unleveraged investment funds, primar
ily
invest
ing
in pan-Asian infrastructure, real estate and private equity.
\n
\u2022
Other activ
it
ies:
Other activ
it
ies include structured entit
ies created to support marg
in \ufb01nanc
ing transact
ions, the re\ufb01nanc
ing
\n
of exist
ing cred
it and debt facil
it
ies, as well as setting up of bankruptcy remote structured entit
ies.", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestsInUnconsolidatedStructuredEntitiesExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f99176": { "value": "34. Cash \ufb02ow statement \n
Adjustment for non-cash items and other adjustments included with
in
income statement
\n
Group
Company
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Amortisat
ion of d
iscounts and premiums of investment securit
ies
237
9
\u2013
\u2013
\n
Interest expense on subordinated liab
il
it
ies
570
497
615
551
\n
Interest expense on senior debt securit
ies
in issue
794
528
696
522
\n
Other non-cash items
(12)
(113)
301
(30)
\n
Pension costs for de\ufb01ned bene\ufb01t schemes
58
62
\u2013
\u2013
\n
Share-based payment costs
199
167
\u2013
\u2013
\n
Impairment losses on loans and advances and other credit risk
\n
provis
ions
836
254
\u2013
\u2013
\n
Div
idend
income from subsid
iar
ies
\u2013
\u2013
(1,047)
(2,244)
\n
Other impa
irment
439
372
\u2013
\u2013
\n
Gain on disposal of property, plant and equipment
(62)
(93)
\u2013
\u2013
\n
Loss/(gain) on disposal of FVOCI and AMCST \ufb01nanc
ial assets
190
(179)
\u2013
\u2013
\n
Depreciat
ion and amort
isat
ion
1,186
1,181
\u2013
\u2013
\n
Fair value changes through pro\ufb01t or loss
(365)
(48)
\u2013
\u2013
\n
Foreign currency revaluation
(365)
(337)
\u2013
\u2013
\n
Pro\ufb01t from associates and jo
int ventures
(156)
(196)
\u2013
\u2013
\n
Total
3,549
2,104
565
(1,201)
\n
Change in operating assets
\n
Group
Company
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
(Increase)/decrease in derivat
ive \ufb01nancial
instruments
(11,873)
16,527
259
630
\n
Decrease/(increase) in debt securit
ies, treasury b
ills and equity shares
\n
held at fair value through pro\ufb01t or loss
9,888
(7,707)
289
(2,864)
\n
Decrease/(increase) in loans and advances to banks and customers
26
(41,066)
\u2013
\u2013
\n
Net increase in prepayments and accrued income
(1,056)
(84)
\u2013
\u2013
\n
Net decrease/(increase) in other assets
2,470
(5,574)
(806)
(3,132)
\n
Total
(545)
(37,904)
(258)
(5,366)
\n
Change in operating liab
il
it
ies
\n
Group
Company
\n
2022
\n
$mill
ion
\n
2021\u00b9
\n
$mill
ion
\n
2022
\n
$mill
ion
\n
2021\u00b9
\n
$mill
ion
\n
Increase/(decrease) in derivat
ive \ufb01nancial
instruments
17,145
(17,664)
1,004
\u2013
\n
Net (decrease)/increase in deposits from banks, customer accounts,
\n
debt securit
ies
in issue, Hong Kong notes in circulat
ion and short
\n
posit
ions
(9,259)
66,805
106
3,977
\n
Increase/(decrease) in accruals and deferred income
1,381
176
4
(15)
\n
Net decrease in other liab
il
it
ies
(481)
(3,363)
(2,080)
(839)
\n
Total
8,786
45,954
(966)
3,123
\n
1
Prior period has been restated
\n\n
\n
446
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
34. Cash \ufb02ow statement
continued
\n
Disclosures
\n
Group
Company
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Subordinated debt (includ
ing accrued
interest):
\n
Opening balance
16,885
16,892
16,395
16,301
\n
Proceeds from the issue
750
1,137
750
1,137
\n
Interest paid
(667)
(580)
(619)
(576)
\n
Repayment
(1,848)
(546)
(1,800)
(546)
\n
Foreign exchange movements
(338)
(201)
(337)
(201)
\n
Fair value changes
(1,502)
(401)
(1,098)
(305)
\n
Accrued interest and others
648
584
604
585
\n
Closing balance
13,928
16,885
13,895
16,395
\n
Senior debt (includ
ing accrued
interest):
\n
Opening balance
29,904
29,990
16,981
20,889
\n
Proceeds from the issue
11,902
10,944
1,500
2,250
\n
Interest paid
(845)
(690)
(506)
(504)
\n
Repayment
(7,838)
(9,945)
(2,980)
(5,408)
\n
Foreign exchange movements
(729)
(678)
(431)
(366)
\n
Fair value changes
(1,051)
(402)
(1,014)
(372)
\n
Accrued Interest and Others
945
685
530
492
\n
Closing balance
32,288
29,904
14,080
16,981", "dimensions": { "concept": "ifrs-full:DisclosureOfCashFlowStatementExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f99521": { "value": "35. Cash and cash equivalents \n
Accounting policy
\n
For the purposes of the cash \ufb02ow statement, cash and cash equivalents comprise cash, on demand and overnight balances
\n
with central banks (unless restricted) and balances with less than three months\u2019 maturity from the date of acquis
it
ion,
\n
includ
ing treasury b
ills and other elig
ible b
ills, loans and advances to banks, and short-term government securit
ies.
\n
The following balances with less than three months\u2019 maturity from the date of acquis
it
ion have been ident
i\ufb01ed by the Group as
\n
being cash and cash equivalents.
\n
Group
Company
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Cash and balances at central banks
58,263
72,663
\u2013
\u2013
\n
Less: restricted balances
(9,173)
(8,152)
\u2013
\u2013
\n
Treasury bills and other elig
ible b
ills
17,936
9,132
\u2013
\u2013
\n
Loans and advances to banks
20,558
24,788
\u2013
\u2013
\n
Trading securit
ies
1,135
1,174
\u2013
\u2013
\n
Amounts owed by and due to subsid
iary undertak
ings
\u2013
\u2013
7,417
11,336
\n
Total
88,719
99,605
7,417
11,336", "dimensions": { "concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f99525": { "value": "Accounting policy \n
For the purposes of the cash \ufb02ow statement, cash and cash equivalents comprise cash, on demand and overnight balances
\n
with central banks (unless restricted) and balances with less than three months\u2019 maturity from the date of acquis
it
ion,
\n
includ
ing treasury b
ills and other elig
ible b
ills, loans and advances to banks, and short-term government securit
ies.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f99611": { "value": "36. Related party transactions \n
Directors and of\ufb01cers
\n
Details of directors\u2019 remuneration and interests in shares are disclosed in the Directors\u2019 remuneration report.
\n
IAS 24 Related party disclosures requires the following addit
ional
informat
ion for key management compensat
ion. Key
\n
management comprises non-executive directors, executive directors of Standard Chartered PLC, the Court directors of
\n
Standard Chartered Bank and the persons discharg
ing manager
ial responsib
il
it
ies (PDMR) of Standard Chartered PLC.
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Salaries, allowances and bene\ufb01ts in kind
39
40
\n
Share-based payments
26
28
\n
Bonuses paid or receivable
4
4
\n
Terminat
ion bene\ufb01ts
1
-
\n
Total
70
72
\n
Transactions with directors and others
\n
At 31 December 2022, the total amounts to be disclosed under the Companies Act 2006 (the Act) and the List
ing Rules of the
\n
Hong Kong Stock Exchange Lim
ited (Hong Kong L
ist
ing Rules) about loans to d
irectors were as follows:
\n
2022
2021
\n
Number
$mill
ion
Number
$mill
ion
\n
Directors\u00b9
3
\u2013
3
\u2013
\n
1
Outstanding loan balances were below $50,000
\n
The loan transactions provided to the directors of Standard Chartered PLC were a connected transaction under Chapter 14A of
\n
the Hong Kong List
ing Rules. It was fully exempt as \ufb01nancial ass
istance under Rule 14A.87(1), as it was provided in our ordinary
\n
and usual course of business and on normal commercial terms.
\n
As at 31 December 2022, Standard Chartered Bank had in place a charge over $89 mill
ion (2021: $100 m
ill
ion) of cash assets
in
\n
favour of the independent trustee of its employer \ufb01nanced retirement bene\ufb01t scheme.
\n
Other than as disclosed in the Annual Report and Accounts, there were no other transactions, arrangements or agreements
\n
outstanding for any director, connected person or of\ufb01cer of the Company which have to be disclosed under the Act, the rules of
\n
the UK List
ing Author
ity or the Hong Kong List
ing Rules.
\n
Details of non-revenue transactions with Temasek Holdings (Private) Lim
ited are set out on page 222.
\n
Company
\n
The Company has received $1,012 mill
ion (2021: $907 m
ill
ion) of net
interest income from its subsid
iar
ies. The Company issues
\n
debt externally and lends proceeds to Group companies.
\n
The Company has an agreement with Standard Chartered Bank that in the event of Standard Chartered Bank defaulting on
\n
its debt coupon interest payments, where the terms of such debt requires it, the Company shall issue shares as settlement for
\n
non-payment of the coupon interest.
\n
2022
2021
\n
Standard
\n
Chartered Bank
\n
$mill
ion
\n
Standard
\n
Chartered Bank
\n
(Hong Kong)
\n
Lim
ited
\n
$mill
ion
\n
Others
\n
1
\n
$mill
ion
\n
Standard
\n
Chartered Bank
\n
$mill
ion
\n
Standard
\n
Chartered Bank
\n
(Hong Kong)
\n
Lim
ited
\n
$mill
ion
\n
Others
\n
1
\n
$mill
ion
\n
Assets
\n
Due from subsid
iar
ies
6,860
141
255
10,814
82
279
\n
Derivat
ive \ufb01nancial
instruments
47
\u2013
\u2013
266
54
\u2013
\n
Debt securit
ies
18,787
4,469
526
19,047
4,852
1,173
\n
Total assets
25,694
4,610
781
30,127
4,988
1,452
\n
Liab
il
it
ies
\n
Due to subsid
iar
ies
2
\u2013
\u2013
\u2013
\u2013
\u2013
\n
Derivat
ive \ufb01nancial
instruments
1,283
61
\u2013
339
\u2013
\u2013
\n
Total liab
il
it
ies
1,285
61
\u2013
339
\u2013
\u2013
\n
1
Others include Standard Chartered Bank (Singapore) Lim
ited, Standard Chartered Hold
ings Lim
ited and Standard Chartered I H L
im
ited
\n\n
\n\n\n
448
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
36. Related party transactions
continued
\n
Associate and jo
int ventures
\n
The following transactions with related parties are on an arm\u2019s length basis:
\n
2022
\n
$mill
ion
\n
2021
\n
(Restated)\u00b9
\n
$mill
ion
\n
Assets
\n
Loans and advances
20
22
\n
Derivat
ive assets
18
2
\n
Total assets
38
24
\n
Liab
il
it
ies
\n
Deposits
610
984
\n
Derivat
ive l
iab
il
it
ies
\u2013
1
\n
Other liab
il
it
ies
19
\u2013
\n
Total liab
il
it
ies
629
985
\n
Loan commitments and other guarantees\u00b2
164
80
\n
1
Prior period has been restated
\n
2
The maximum loan commitments and other guarantees during the period were $164 mill
ion (2021: $80 m
ill
ion)", "dimensions": { "concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f99887": { "value": "37. Post balance sheet events \n
On 9 January 2023, Standard Chartered PLC issued $1 bill
ion 6.170 per cent F
ixed Rate Reset Notes due 2027 and $1.5 bill
ion
\n
6.301\u00a0per cent Fixed Rate Reset Notes due 2029.
\n
The Group announced, on 11 January 2023, the launch of the process to explore alternatives for the future ownership of its
\n
aviat
ion \ufb01nance bus
iness with
in the CCIB bus
iness segment.
While an auction is now underway, no commitment to a sale
\n
existed at 31 December 2022 and, in accordance with IFRS 5, the Group did not meet the requirements to classify the business as
\n
\u2018held for sale\u2019. While it is not possible to estimate the \ufb01nanc
ial effect of a sale at th
is stage, as no bids have been received yet, we
\n
do not expect to execute it at below our book values.
\n
A share buy-back for up to a maximum considerat
ion of $1 b
ill
ion has been declared by the d
irectors after 31 December 2022.
\n
This will reduce the number of ordinary shares in issue by cancelling the repurchased shares.
\n
A \ufb01nal div
idend for 2022 of 14 cents per ord
inary share was declared by the directors after 31 December 2022.", "dimensions": { "concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f99917": { "value": "38. Auditor\u2019s remuneration \n
Auditor\u2019s remuneration is included with
in other general adm
in
istrat
ion expenses. The amounts paid by the Group to their
\n
princ
ipal aud
itor, Ernst & Young LLP and its associates (together Ernst & Young LLP), are set out below. All services are approved
\n
by the Group Audit Committee and are subject to controls to ensure the external auditor\u2019s independence is unaffected by the
\n
provis
ion of other serv
ices.
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Audit fees for the Group statutory audit
22.2
15.9
\n
Of which fees for the audit of Standard Chartered Bank Group
16.3
11.8
\n
Fees payable to EY for other services provided to the SC PLC Group:
\n
Audit of Standard Chartered PLC subsid
iar
ies
12.8
10.8
\n
Total audit fees
35.0
26.7
\n
Audit-related assurance services
5.5
5.3
\n
Other assurance services
4.3
3.2
\n
Other non-audit services
0.1
0.1
\n
Corporate \ufb01nance transaction services
0.3
0.6
\n
Total non-audit fees
10.2
9.2
\n
Total fees payable
45.2
35.9
\n
The following is a descript
ion of the type of serv
ices included with
in the categor
ies listed above:
\n
\u2022
Audit fees for the Group statutory audit are in respect of fees payable to Ernst & Young LLP for the statutory audit of the
\n
consolidated \ufb01nanc
ial statements of the Group and the separate \ufb01nancial statements of Standard Chartered PLC
\n
\u2022
Audit-related fees consist of fees such as those for services required by law or regulation to be provided by the auditor, reviews
\n
of inter
im \ufb01nancial
informat
ion, report
ing on regulatory returns, reporting to a regulator on client assets and extended work
\n
performed over \ufb01nancial
informat
ion and controls author
ised by those charged with governance
\n
\u2022
Other assurance services include agreed-upon-procedures in relation to statutory and regulatory \ufb01l
ings
\n
\u2022
Corporate \ufb01nance transaction services are fees payable to Ernst & Young LLP for issu
ing comfort letters
\n
Expenses incurred in respect of their role as auditor, were reimbursed to EY LLP $0.6 mill
ion (2021: $0.2 m
ill
ion). Such expenses d
id
\nnot exceed 1% of total fees charged above.", "dimensions": { "concept": "ifrs-full:DisclosureOfAuditorsRemunerationExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f100016": { "value": "39. Standard Chartered PLC (Company) \n
Classif
icat
ion and measurement of \ufb01nanc
ial
instruments
\n
Financ
ial assets
\n
2022
2021
\n
Derivat
ives
\n
held for
\n
hedging
\n
$mill
ion
\n
Amortised
\n
cost
\n
$mill
ion
\n
Non-trading
\n
mandatorily
\n
at fair value
\n
through
\n
pro\ufb01t or loss
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Derivat
ives
\n
held for
\n
hedging
\n
$mill
ion
\n
Amortised
\n
cost
\n
$mill
ion
\n
Non-trading
\n
mandatorily
\n
at fair value
\n
through
\n
pro\ufb01t or loss
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Derivat
ives
61
\u2013
\u2013
61
320
\u2013
\u2013
320
\n
Investment securit
ies
\u2013
8,423
15,358
\n
1
\n
23,781
\u2013
9,424
15,647
\n
1
\n
25,071
\n
Amounts owed by subsid
iary
\n
undertakings
\u2013
7,417
\u2013
7,417
\u2013
11,336
\u2013
11,336
\n
Total
61
15,840
15,358
31,259
320
20,760
15,647
36,727
\n
1
Standard Chartered Bank, Standard Chartered Bank (Hong Kong) Lim
ited, Standard Chartered Bank (Ch
ina) Lim
ited and Standard Chartered Bank (S
ingapore)
\n
Lim
ited
issued Loss Absorbing Capacity (LAC) elig
ible debt secur
it
ies
\n
Instruments classif
ied as amort
ised cost, which include investment securit
ies and amounts owed by subs
id
iary undertak
ings, are
\n
recorded in stage 1 for the recognit
ion of expected cred
it losses.
\n
Derivat
ives held for hedg
ing are held at fair value and are classif
ied as Level 2 and Level 3 wh
ile the counterparty is Standard
\n
Chartered Bank and external counterparties.
\n
Debt securit
ies compr
ise corporate securit
ies
issued by Standard Chartered Bank and have a fair value equal to carrying value
\n
of $8,423 mill
ion (2021: $9,424 m
ill
ion).
\n
In 2022 and 2021, amounts owed by subsid
iary undertak
ings have a fair value equal to carrying value.
\n
Financ
ial l
iab
il
it
ies
\n
2022
2021
\n
Derivat
ives
\n
held for
\n
hedging
\n
$mill
ion
\n
Amortised
\n
cost
\n
$mill
ion
\n
Designated
\n
at fair value
\n
through
\n
pro\ufb01t or loss
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Derivat
ives
\n
held for
\n
hedging
\n
$mill
ion
\n
Amortised
\n
cost
\n
$mill
ion
\n
Designated
\n
at fair value
\n
through
\n
pro\ufb01t or loss
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Derivat
ives
1,343
\u2013
\u2013
1,343
339
\u2013
\u2013
339
\n
Debt securit
ies
in issue
\u2013
13,891
10,397
24,288
\u2013
16,809
9,472
26,281
\n
Subordinated liab
il
it
ies and other
\n
borrowed funds
\u2013
11,239
2,445
13,684
\u2013
13,830
2,332
16,162
\n
Amounts owed to subsid
iary
\n
undertakings
\u2013
2
\u2013
2
\u2013
\u2013
\u2013
\u2013
\n
Total
1,343
25,132
12,842
39,317
339
30,639
11,804
42,782
\n
Derivat
ives held for hedg
ing are held at fair value and are classif
ied as Level 2 and Level 3 wh
ile the counterparty is Standard
\n
Chartered Bank and external counter parties.
\n
The fair value of debt securit
ies
in issue held at amortised cost is $13,611 mill
ion (2021: $17,171 m
ill
ion).
\n
The fair value of subordinated liab
il
it
ies and other borrowed funds held at amort
ised cost is $10,434 mill
ion (2021:
\n
$14,569 mill
ion).
\n
Derivat
ive \ufb01nancial
instruments
\n
Derivat
ives
\n
2022
2021
\n
Notional
\n
princ
ipal
\n
amounts
\n
$mill
ion
\n
Assets
\n
$mill
ion
\n
Liab
il
it
ies
\n
$mill
ion
\n
Notional
\n
princ
ipal
\n
amounts
\n
$mill
ion
\n
Assets
\n
$mill
ion
\n
Liab
il
it
ies
\n
$mill
ion
\n
Foreign exchange derivat
ive contracts:
\n
Forward foreign exchange
9,351
47
61
8,362
54
51
\n
Currency swaps
574
\u2013
71
2,049
\u2013
207
\n
Interest rate derivat
ive contracts:
\n
Swaps
15,423
\u2013
1,211
14,465
266
81
\n
Credit derivat
ive contracts
3,256
14
\u2013
\u2013
\u2013
\u2013
\n
Total
28,604
61
1,343
24,876
320
339
\n\n
\n
450
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
39. Standard Chartered PLC (Company)
continued
\n
Credit risk
\n
Maximum exposure to credit risk
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Derivat
ive \ufb01nancial
instruments
61
320
\n
Debt securit
ies
23,781
25,071
\n
Amounts owed by subsid
iary undertak
ings
7,417
11,336
\n
Total
31,259
36,727
\n
In 2022 and 2021, amounts owed by subsid
iary undertak
ings were neither past due nor impa
ired; the Company had no
\n
ind
iv
idually impa
ired loans.
\n
In 2022 and 2021, the Company had no impa
ired debt secur
it
ies. The debt secur
it
ies held by the Company are
issued by
\n
Standard Chartered Bank, Standard Chartered Bank (Hong Kong) Lim
ited, Standard Chartered Bank (Ch
ina) Lim
ited and
\n
Standard Chartered Bank (Singapore) Lim
ited, subs
id
iary undertak
ings with credit ratings of A+.
\n
There is no material expected credit loss on these instruments as they are Stage 1 assets, and of a high quality.
\n
Liqu
id
ity risk
\n
The following table analyses the residual contractual maturity of the assets and liab
il
it
ies of the Company on a d
iscounted
\n
basis:
\n
2022
\n
One month
\n
or less
\n
$mill
ion
\n
Between
\n
one month
\n
and three
\n
months
\n
$mill
ion
\n
Between
\n
three
\n
months and
\n
six months
\n
$mill
ion
\n
Between
\n
six months
\n
and nine
\n
months
\n
$mill
ion
\n
Between
\n
nine months
\n
and one
\n
year
\n
$mill
ion
\n
Between
\n
one year
\n
and two
\n
years
\n
$mill
ion
\n
Between
\n
two years
\n
and \ufb01ve
\n
years
\n
$mill
ion
\n
More than
\n
\ufb01ve years
\n
and
\n
undated
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Assets
\n
Derivat
ive \ufb01nancial
\n
instruments
45
\u2013
\u2013
\u2013
\u2013
\u2013
16
\u2013
61
\n
Investment securit
ies
2,000
\u2013
\u2013
\u2013
\u2013
\u2013
5,351
16,430
23,781
\n
Amount owed by subsid
iary
\n
undertakings
719
1,250
140
\u2013
840
1,523
2,081
864
7,417
\n
Investments in subsid
iary
\n
undertakings
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
60,975
60,975
\n
Other assets
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\n
Total assets
2,764
1,250
140
\u2013
840
1,523
7,448
78,269
92,234
\n
Liab
il
it
ies
\n
Derivat
ive \ufb01nancial
\n
instruments
77
3
\u2013
\u2013
\u2013
75
330
858
1,343
\n
Senior debt
\u2013
\u2013
\u2013
\u2013
\u2013
2,090
14,155
8,043
24,288
\n
Amount owed to subsid
iary
\n
undertakings
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
2
2
\n
Other liab
il
it
ies
175
134
95
14
5
\u2013
\u2013
\u2013
423
\n
Subordinated liab
il
it
ies and
\n
other borrowed funds
2,004
88
13
248
14
1,900
2,078
7,339
13,684
\n
Total liab
il
it
ies
2,256
225
108
262
19
4,065
16,563
16,242
39,740
\n
Net liqu
id
ity gap
508
1,025
32
(262)
821
(2,542)
(9,115)
62,027
52,494
\n\n
451
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
39. Standard Chartered PLC (Company)
continued
\n
2021
\n
One month
\n
or less
\n
$mill
ion
\n
Between
\n
one month
\n
and three
\n
months
\n
$mill
ion
\n
Between
\n
three
\n
months and
\n
six months
\n
$mill
ion
\n
Between
\n
six months
\n
and nine
\n
months
\n
$mill
ion
\n
Between
\n
nine months
\n
and one
\n
year
\n
$mill
ion
\n
Between
\n
one year
\n
and two
\n
years
\n
$mill
ion
\n
Between
\n
two years
\n
and \ufb01ve
\n
years
\n
$mill
ion
\n
More than
\n
\ufb01ve years
\n
and
\n
undated
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Assets
\n
Derivat
ive \ufb01nancial
\n
instruments
55
1
2
\u2013
\u2013
55
104
103
320
\n
Investment securit
ies
\u2013
\u2013
\u2013
\u2013
960
4,444
2,947
16,720
25,071
\n
Amount owed by subsid
iary
\n
undertakings
2,335
159
216
305
853
2,349
2,132
2,987
11,336
\n
Investments in subsid
iary
\n
undertakings
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
60,429
60,429
\n
Total assets
2,390
160
218
305
1,813
6,848
5,183
80,239
97,156
\n
Liab
il
it
ies
\n
Derivat
ive \ufb01nancial
\n
instruments
47
\u2013
\u2013
4
95
\u2013
117
76
339
\n
Senior debt
\u2013
\u2013
\u2013
\u2013
\u2013
4,542
11,873
9,866
26,281
\n
Other debt securit
ies
in issue
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\n
Amount owed to subsid
iary
\n
undertakings
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\n
Other liab
il
it
ies
169
126
83
15
10
\u2013
\u2013
59
462
\n
Subordinated liab
il
it
ies and
\n
other borrowed funds
1,007
47
15
240
883
2,409
2,470
9,091
16,162
\n
Total liab
il
it
ies
1,223
173
98
259
988
6,951
14,460
19,092
43,244
\n
Net liqu
id
ity gap
1,167
(13)
120
46
825
(103)
(9,277)
61,147
53,912
\n
Financ
ial l
iab
il
it
ies on an und
iscounted basis
\n
2022
\n
One month
\n
or less
\n
$mill
ion
\n
Between
\n
one month
\n
and three
\n
months
\n
$mill
ion
\n
Between
\n
three
\n
months and
\n
six months
\n
$mill
ion
\n
Between
\n
six months
\n
and nine
\n
months
\n
$mill
ion
\n
Between
\n
nine months
\n
and one
\n
year
\n
$mill
ion
\n
Between
\n
one year
\n
and two
\n
years
\n
$mill
ion
\n
Between
\n
two years
\n
and \ufb01ve
\n
years
\n
$mill
ion
\n
More than
\n
\ufb01ve years
\n
and
\n
undated
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Derivat
ive \ufb01nancial
\n
instruments
77
3
\u2013
\u2013
\u2013
75
330
858
1,343
\n
Debt securit
ies
in issue
88
66
262
145
271
2,896
15,676
9,057
28,461
\n
Subordinated liab
il
it
ies
\n
and other borrowed funds
2,097
174
33
273
17
2,035
2,552
14,668
21,849
\n
Other liab
il
it
ies
9
15
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
24
\n
Total liab
il
it
ies
2,271
258
295
418
288
5,006
18,558
24,583
51,677
\n
2021
\n
One month
\n
or less
\n
$mill
ion
\n
Between
\n
one month
\n
and three
\n
months
\n
$mill
ion
\n
Between
\n
three
\n
months and
\n
six months
\n
$mill
ion
\n
Between
\n
six months
\n
and nine
\n
months
\n
$mill
ion
\n
Between
\n
nine months
\n
and one
\n
year
\n
$mill
ion
\n
Between
\n
one year
\n
and two
\n
years
\n
$mill
ion
\n
Between
\n
two years
\n
and \ufb01ve
\n
years
\n
$mill
ion
\n
More than
\n
\ufb01ve years
\n
and
\n
undated
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Derivat
ive \ufb01nancial
\n
instruments
47
\u2013
\u2013
4
95
\u2013
117
76
339
\n
Debt securit
ies
in issue
102
30
179
130
196
5,144
13,122
11,019
29,922
\n
Subordinated liab
il
it
ies and
\n
other borrowed funds
1,114
134
37
261
917
2,522
2,786
15,376
23,147
\n
Other liab
il
it
ies
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
59
59
\n
Total liab
il
it
ies
1,263
164
216
395
1,208
7,666
16,025
26,530
53,467", "dimensions": { "concept": "stan:DisclosureOfStandardCharteredPlcCompanyExplanatoryTextBlock", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f100364": { "value": "Credit risk \n
Maximum exposure to credit risk
\n
2022
\n
$mill
ion
\n
2021
\n
$mill
ion
\n
Derivat
ive \ufb01nancial
instruments
61
320
\n
Debt securit
ies
23,781
25,071
\n
Amounts owed by subsid
iary undertak
ings
7,417
11,336
\n
Total
31,259
36,727
\n
In 2022 and 2021, amounts owed by subsid
iary undertak
ings were neither past due nor impa
ired; the Company had no
\n
ind
iv
idually impa
ired loans.
\n
In 2022 and 2021, the Company had no impa
ired debt secur
it
ies. The debt secur
it
ies held by the Company are
issued by
\n
Standard Chartered Bank, Standard Chartered Bank (Hong Kong) Lim
ited, Standard Chartered Bank (Ch
ina) Lim
ited and
\n
Standard Chartered Bank (Singapore) Lim
ited, subs
id
iary undertak
ings with credit ratings of A+.
\nThere is no material expected credit loss on these instruments as they are Stage 1 assets, and of a high quality.", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f100417": { "value": "Liqu
id
ity risk
\n
The following table analyses the residual contractual maturity of the assets and liab
il
it
ies of the Company on a d
iscounted
\n
basis:
\n
2022
\n
One month
\n
or less
\n
$mill
ion
\n
Between
\n
one month
\n
and three
\n
months
\n
$mill
ion
\n
Between
\n
three
\n
months and
\n
six months
\n
$mill
ion
\n
Between
\n
six months
\n
and nine
\n
months
\n
$mill
ion
\n
Between
\n
nine months
\n
and one
\n
year
\n
$mill
ion
\n
Between
\n
one year
\n
and two
\n
years
\n
$mill
ion
\n
Between
\n
two years
\n
and \ufb01ve
\n
years
\n
$mill
ion
\n
More than
\n
\ufb01ve years
\n
and
\n
undated
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Assets
\n
Derivat
ive \ufb01nancial
\n
instruments
45
\u2013
\u2013
\u2013
\u2013
\u2013
16
\u2013
61
\n
Investment securit
ies
2,000
\u2013
\u2013
\u2013
\u2013
\u2013
5,351
16,430
23,781
\n
Amount owed by subsid
iary
\n
undertakings
719
1,250
140
\u2013
840
1,523
2,081
864
7,417
\n
Investments in subsid
iary
\n
undertakings
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
60,975
60,975
\n
Other assets
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\n
Total assets
2,764
1,250
140
\u2013
840
1,523
7,448
78,269
92,234
\n
Liab
il
it
ies
\n
Derivat
ive \ufb01nancial
\n
instruments
77
3
\u2013
\u2013
\u2013
75
330
858
1,343
\n
Senior debt
\u2013
\u2013
\u2013
\u2013
\u2013
2,090
14,155
8,043
24,288
\n
Amount owed to subsid
iary
\n
undertakings
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
2
2
\n
Other liab
il
it
ies
175
134
95
14
5
\u2013
\u2013
\u2013
423
\n
Subordinated liab
il
it
ies and
\n
other borrowed funds
2,004
88
13
248
14
1,900
2,078
7,339
13,684
\n
Total liab
il
it
ies
2,256
225
108
262
19
4,065
16,563
16,242
39,740
\n
Net liqu
id
ity gap
508
1,025
32
(262)
821
(2,542)
(9,115)
62,027
52,494
\n\n
\n\n\n
451
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
39. Standard Chartered PLC (Company)
continued
\n
2021
\n
One month
\n
or less
\n
$mill
ion
\n
Between
\n
one month
\n
and three
\n
months
\n
$mill
ion
\n
Between
\n
three
\n
months and
\n
six months
\n
$mill
ion
\n
Between
\n
six months
\n
and nine
\n
months
\n
$mill
ion
\n
Between
\n
nine months
\n
and one
\n
year
\n
$mill
ion
\n
Between
\n
one year
\n
and two
\n
years
\n
$mill
ion
\n
Between
\n
two years
\n
and \ufb01ve
\n
years
\n
$mill
ion
\n
More than
\n
\ufb01ve years
\n
and
\n
undated
\n
$mill
ion
\n
Total
\n
$mill
ion
\n
Assets
\n
Derivat
ive \ufb01nancial
\n
instruments
55
1
2
\u2013
\u2013
55
104
103
320
\n
Investment securit
ies
\u2013
\u2013
\u2013
\u2013
960
4,444
2,947
16,720
25,071
\n
Amount owed by subsid
iary
\n
undertakings
2,335
159
216
305
853
2,349
2,132
2,987
11,336
\n
Investments in subsid
iary
\n
undertakings
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
60,429
60,429
\n
Total assets
2,390
160
218
305
1,813
6,848
5,183
80,239
97,156
\n
Liab
il
it
ies
\n
Derivat
ive \ufb01nancial
\n
instruments
47
\u2013
\u2013
4
95
\u2013
117
76
339
\n
Senior debt
\u2013
\u2013
\u2013
\u2013
\u2013
4,542
11,873
9,866
26,281
\n
Other debt securit
ies
in issue
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\n
Amount owed to subsid
iary
\n
undertakings
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\u2013
\n
Other liab
il
it
ies
169
126
83
15
10
\u2013
\u2013
59
462
\n
Subordinated liab
il
it
ies and
\n
other borrowed funds
1,007
47
15
240
883
2,409
2,470
9,091
16,162
\n
Total liab
il
it
ies
1,223
173
98
259
988
6,951
14,460
19,092
43,244
\n
Net liqu
id
ity gap
1,167
(13)
120
46
825
(103)
(9,277)
61,147
53,912", "dimensions": { "concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f101117": { "value": "40. Related undertakings of the Group \n
As at 31 December 2022, the Group\u2019s interests in related undertakings are disclosed below. Unless otherwise stated, the share
\n
capital disclosed comprises ordinary or common shares which are held by subsid
iar
ies of the Group. Standard Chartered Bank
\n
(Hong Kong) Lim
ited, Standard Chartered Fund
ing (Jersey) Lim
ited, Stanchart Nom
inees Lim
ited, Standard Chartered Hold
ings
\n
Lim
ited and Standard Chartered Nom
inees Lim
ited are d
irectly held subsid
iar
ies, all other related undertakings are held
\n
ind
irectly. Unless otherw
ise stated, the princ
ipal country of operat
ion of each subsid
iary
is the same as its country of
\n
incorporation Note 32 details undertakings that have a sign
i\ufb01cant contr
ibut
ion to the Group\u2019s net pro\ufb01t or net assets.
\n
Subsid
iary Undertak
ings
\n
Name and registered address
Activ
ity
Place of incorporation
Descript
ion of shares
\n
Proportion
\n
of shares
\n
held
\n
(%)
\n
The following companies have the
\n
address of 1 Basinghall Avenue, London,
\n
EC2V 5DD, United Kingdom
\n
FinVentures UK Lim
ited
Investment Holding
\n
Company
\n
United Kingdom
$1.00 Ordinary shares
\n
100
\n
Pembroke Aircraft Leasing (UK) Lim
ited
Leasing Business
United Kingdom
\u00a31.00 Ordinary shares
100
\n
SC (Secretaries) Lim
ited
Others
United Kingdom
\u00a31.00 Ordinary shares
100
\n
SC Transport Leasing 1 LTD
\n
7,8
\n
Leasing Business
United Kingdom
\u00a31.00 Ordinary shares
100
\n
SC Transport Leasing 2 Lim
ited
\n
7,8
\n
Leasing Business
United Kingdom
\u00a31.00 Ordinary shares
100
\n
SC Ventures Innovation Investment L.P.
Investment Holding
\n
Company
\n
United Kingdom
Lim
ited Partnersh
ip interest
\n
100
\n
SCMB Overseas Lim
ited
Investment Holding
\n
Company
\n
United Kingdom
\u00a30.10 Ordinary shares
\n
100
\n
Stanchart Nominees Lim
ited
Nominee Services
United Kingdom
\u00a31.00 Ordinary shares
100
\n
Standard Chartered Africa Lim
ited
Investment Holding
\n
Company
\n
United Kingdom
\u00a31.00 Ordinary shares
\n
100
\n
Standard Chartered Bank
Banking & Financ
ial
\n
Services
\n
United Kingdom
US$0.01 Non-Cumulative
\n
Irredeemable Preference
100
\n
US$1.00 Ordinary
100
\n
US$5.00 Non-Cumulative
\n
Redeemable Preference
100
\n
Standard Chartered Foundation
\n
1
\n
Charity projects
United Kingdom
Guarantor
100
\n
Standard Chartered Health Trustee (UK)
\n
Lim
ited
\n
Trustee Services
United Kingdom
\u00a31.00 Ordinary shares
\n
100
\n
Standard Chartered Holdings Lim
ited
Investment Holding
\n
Company
\n
United Kingdom
$2.00 Ordinary shares
\n
100
\n
Standard Chartered I H Lim
ited
Investment Holding
\n
Company
\n
United Kingdom
$1.00 Ordinary shares
\n
100
\n
Standard Chartered Leasing (UK) 3
\n
Lim
ited\u2079
\n
Leasing Business
United Kingdom
$1.00 Ordinary shares
\n
100
\n
Standard Chartered Leasing (UK)
\n
Lim
ited
\n
7,8,9
\n
Leasing Business
United Kingdom
$1.00 Ordinary shares
\n
100
\n
Standard Chartered NEA Lim
ited
Investment Holding
\n
Company
\n
United Kingdom
$1.00 Ordinary shares
\n
100
\n
Standard Chartered Nominees Lim
ited
Nominee Services
United Kingdom
\u00a31.00 Ordinary shares
100
\n
Standard Chartered Nominees (Private
\n
Clients UK) Lim
ited
\n
Nominee Services
United Kingdom
$1.00 Ordinary shares
\n
100
\n
Standard Chartered Strategic
\n
Investments Lim
ited
\n
Investment Holding
\n
Company
\n
United Kingdom
$1.00 Ordinary shares
\n
100
\n
Standard Chartered Securit
ies (Afr
ica)
\n
Holdings Lim
ited
\n
Investment Holding
\n
Company
\n
United Kingdom
$1.00 Ordinary shares
\n
100
\n
Standard Chartered Trustees (UK)
\n
Lim
ited
\n
Trustee Services
United Kingdom
\u00a31.00 Ordinary shares
\n
100
\n
Standard Chartered UK Holdings
\n
Lim
ited
\n
Investment Holding
\n
Company
\n
United Kingdom
$1.00 Ordinary shares
\n
100
\n
The SC Transport Leasing Partnership 1
Leasing Business
United Kingdom
Lim
ited Partnersh
ip interest
100
\n
The SC Transport Leasing Partnership 2
Leasing Business
United Kingdom
Lim
ited Partnersh
ip interest
100
\n
The SC Transport Leasing Partnership 3
Leasing Business
United Kingdom
Lim
ited Partnersh
ip interest
100
\n
The SC Transport Leasing Partnership 4
Leasing Business
United Kingdom
Lim
ited Partnersh
ip interest
100
\n\n
\n
453
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
Name and registered address
Activ
ity
Place of incorporation
Descript
ion of shares
\n
Proportion
\n
of shares
\n
held
\n
(%)
\n
The BW Leasing Partnership 1 LP
\n
1
\n
Leasing Business
United Kingdom
Lim
ited Partnersh
ip interest
100
\n
The BW Leasing Partnership 2 LP
\n
1
\n
Leasing Business
United Kingdom
Lim
ited Partnersh
ip interest
100
\n
The BW Leasing Partnership 3 LP
\n
1
\n
Leasing Business
United Kingdom
Lim
ited Partnersh
ip interest
100
\n
The BW Leasing Partnership 4 LP
\n
1
\n
Leasing Business
United Kingdom
Lim
ited Partnersh
ip interest
100
\n
The BW Leasing Partnership 5 LP
\n
1
\n
Leasing Business
United Kingdom
Lim
ited Partnersh
ip interest
100
\n
Zodia Markets (UK) Lim
ited
Banking & Financ
ial
\n
Services
\n
United Kingdom
$1.00 Ordinary shares
\n
100
\n
Zodia Markets Holdings Lim
ited
Banking & Financ
ial
\n
Services
United Kingdom
$1.00 Ordinary shares
75.0
\n
The following companies have the
\n
address of 2 More London Rivers
ide,
\n
London SE1 2JT, United Kingdom
\n
Bricks (C&K) LP
\n
1
\n
Lim
ited Partnersh
ip interest
United Kingdom
Lim
ited Partnersh
ip interest
100
\n
Bricks (C) LP
\n
1
\n
Lim
ited Partnersh
ip interest
United Kingdom
Lim
ited Partnersh
ip interest
100
\n
Bricks (T) LP
\n
1
\n
Lim
ited Partnersh
ip interest
United Kingdom
Lim
ited Partnersh
ip interest
100
\n
The following companies have the
\n
address of 8th Floor, 20 Farringdon
\n
Street, London, EC4A 4AB, United
\n
Kingdom.
\n
SC Ventures G.P. Lim
ited
Investment Holding
\n
Company
\n
United Kingdom
\u00a31.00 Ordinary shares
\n
100
\n
Assembly Payments UK Ltd
Payment Services Provider
United Kingdom
$1.00 Ordinary shares
100
\n
The following company has the address
\n
of 1 Bartholomew Lane, London, EC2N
\n
2AX, United Kingdom
\n
Corrasi Covered Bonds LLP
Trustee Services
United Kingdom
Membership Interest
50.0
\n
The following companies have the
\n
address of Thomas House, 84 Eccleston
\n
Square, London, SW1V 1PX, United
\n
Kingdom
\n
Zodia Custody Lim
ited
Custody services
United Kingdom
$1.00 Ordinary shares
95.1
\n
Zodia Holdings Lim
ited
Investment holding
\n
company
United Kingdom
$1.00 Ordinary shares
100
\n
The following company has the address
\n
of Robert Denholm House, Bletchingly
\n
Road, Nut\ufb01eld, Redhill, RH1 4HW, United
\n
Kingdom
\n
CurrencyFair (UK) Lim
ited
Banking & Financ
ial
\n
Services
United Kingdom
\u00a31.00 Ordinary shares
100
\n
The following company has the address
\n
of 23 De Walden Street, London, W1G
\n
8RW, United Kingdom
\n
Shoal Lim
ited
Dig
ital marketplace for
\n
sustainable and \u201cgreen\u201d
\n
products.
United Kingdom
US$1.00 Ordinary
100
\n
The following company has the address
\n
of 1 Poultry, London, EC2R 8EJ, United
\n
Kingdom
\n
Zai Technologies Lim
ited
Payment Services Provider.
United Kingdom
\u00a31.00 Ordinary
100
\n
The following company has the address
\n
Edif\u00edc
io K
ilamba, 8\u00ba Andar Avenida 4 de
\n
Fevereiro, Marginal, Luanda, Angola
\n
Standard Chartered Bank Angola S.A.
Banking & Financ
ial
\n
Services
\n
Angola
AOK8,742.05 Ordinary shares
\n
60.0
\n
The following company has the address
\n
of Level 5, 345 George St, Sydney NSW
\n
2000, Australia
\n
Standard Chartered Grindlays Pty
\n
Lim
ited
\n
Investment Holding
\n
Company
\n
Australia
AUD Ordinary shares
\n
100
\n
40. Related undertakings of the Group
continued
\n
Subsid
iary undertak
ings
continued
454
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
Name and registered address
Activ
ity
Place of incorporation
Descript
ion of shares
\n
Proportion
\n
of shares
\n
held
\n
(%)
\n
The following company has the address
\n
of 17/31 Queen Street, Melbourne VIC
\n
3000, Australia
\n
Assembly Payments Australia Pty Ltd
Holding Company
Australia
$ Ordinary shares
100
\n
The following company has the address
\n
of Wilsons Landing, Level 5, 6A Glen
\n
Street, Milsons Point NSW 2061, Australia
\n
CurrencyFair Australia Pty Ltd
Foreign Currency
\n
conversion services.
Australia
AUD Ordinary
100
\n
The following company has the address
\n
of Level 20, 31 Queen Street, Melbourne
\n
VIC 3000, Australia
\n
Zai Australia Pty Ltd
Payment Service Provider
Australia
$1.00 Ordinary
100
\n
AUD0.01 Ordinary shares
\n
The following companies have the
\n
address of 5th Floor Standard House
\n
Bldg, The Mall, Queens Road, PO Box
\n
496, Gaborone, Botswana
\n
Standard Chartered Bank Insurance
\n
Agency (Proprietary) Lim
ited
\n
Insurance Services
Botswana
BWP Ordinary shares
\n
100
\n
Standard Chartered Investment Services
\n
(Proprietary) Lim
ited
\n
Nominee Services
Botswana
BWP Ordinary shares
\n
100
\n
Standard Chartered Bank Botswana
\n
Lim
ited
\n
Banking & Financ
ial
\n
Services
\n
Botswana
BWP Ordinary shares
\n
75.8
\n
Standard Chartered Botswana
\n
Nominees (Proprietary) Lim
ited
\n
Nominee Services
Botswana
BWP Ordinary shares
\n
100
\n
Standard Chartered Botswana
\n
Education Trust
\n
2
\n
CSR programme.
Botswana
Interest in Trust
\n
100
\n
The following company has the address
\n
of Avenida Brigade
iro Far
ia Lima, no
\n
3.477, 6\u00ba andar, conjunto 62 - Torre Norte,
\n
Condomin
io Pat
io Victor Malzoni, CEP
\n
04538-133, Sao Paulo, Brazil
\n
Standard Chartered Representa\u00e7\u00e3o e
\n
Partic
ipa\u00e7\u00f5es Ltda
\n
Banking & Financ
ial
\n
Services
Brazil
BRL1.00 Ordinary shares
100
\n
The following company has the address
\n
of G01-02, Wisma Haj
i Mohd Taha
\n
Build
ing, Jalan Gadong, BE4119, Brune
i
\n
Darussalam
\n
Standard Chartered Securit
ies (B) Sdn
\n
Bhd
Investment Management
Brunei Darussalam
BND1.00 Ordinary shares
100
\n
The following company has the address
\n
of Standard Chartered Bank Cameroon
\n
S.A, 1155, Boulevard de la Libert\u00e9, Douala,
\n
B.P. 1784, Cameroon
\n
Standard Chartered Bank Cameroon
\n
S.A.
\n
Banking & Financ
ial
\n
Services
\n
Cameroon
XAF10,000.00 Ordinary
\n
shares
100
\n
The following company has the address
\n
of 66 Wellington Street, West, Suite 4100,
\n
Toronto Domin
ion Centre, Toronto ON
\n
M5K 1B7, Canada
\n
CurrencyFair (Canada) Ltd
Dormant
Canada
CAD$ Common shares
100
\n
The following company has the address
\n
of Maples Corporate Services Lim
ited,
\n
PO Box 309, Ugland House, Grand
\n
Cayman KY1-1104, Cayman Islands
\n
Cerulean Investments LP
Investment Holding
\n
Company
Cayman Islands
Lim
ited Partnersh
ip interest
100
\n
40. Related undertakings of the Group
continued
\n
Subsid
iary undertak
ings
continued
455
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
Name and registered address
Activ
ity
Place of incorporation
Descript
ion of shares
\n
Proportion
\n
of shares
\n
held
\n
(%)
\n
The following company has the address
\n
of Maples Finance Lim
ited, PO Box 1093
\n
GT, Queensgate House, Georgetown,
\n
Grand Cayman, Cayman Islands
\n
SCB Investment Holding Company
\n
Lim
ited
\n
Investment Holding
\n
Company
Cayman Islands
US$1,000.00 Ordinary-A
99.9
\n
The following company has the address
\n
of No. 1034, Managed by Tianjin
\n
Dongjiang Secretar
ial Services , Co., Ltd.,
\n
Room 202, Of\ufb01ce Area of Inspection
\n
Warehouse,, No.6262 Ao Zhou Road,
\n
Dongjiang Free Trade Port Zone,, T
ianjin
\n
Pilot Free Trade Zone, China
\n
Pembroke Aircraft Leasing (Tianjin)
\n
Lim
ited
\n
3
\n
Holding Company
\n
China
$1.00 Ordinary shares
100
\n
The following company has the address
\n
of No. 1035, Managed by Tianjin
\n
Dongjiang Secretar
ial Services , Co., Ltd.,
\n
Room 202, Of\ufb01ce Area of Inspection
\n
Warehouse,, No.6262 Ao Zhou Road,
\n
Dongjiang Free Trade Port Zone,, T
ianjin
\n
Pilot Free Trade Zone, China
\n
Pembroke Aircraft Leasing Tianjin 1
\n
Lim
ited
\n
3
\n
SPV for Aircraft Operating
\n
Lease Business
China
CNY1.00 Ordinary shares
100
\n
The following company has the address
\n
of No. 1036, Managed by Tianjin
\n
Dongjiang Secretar
ial Services , Co., Ltd.,
\n
Room 202, Of\ufb01ce Area of Inspection
\n
Warehouse,, No.6262 Ao Zhou Road,
\n
Dongjiang Free Trade Port Zone,, T
ianjin
\n
Pilot Free Trade Zone, China
\n
Pembroke Aircraft Leasing Tianjin 2
\n
Lim
ited
\n
3
\n
SPV for Aircraft Operating
\n
Lease Business
China
CNY1.00 Ordinary shares
100
\n
The following company has the address
\n
of Standard Chartered Tower, 201
\n
Century Avenue, Pudong, Shanghai
\n
200120, China
\n
Standard Chartered Bank (China)
\n
Lim
ited
\n
3
\n
Commercial banking
China
CNY Ordinary shares
100
\n
The following company has the address
\n
of No. 35, Xinhuanbe
i Road, TEDA,
\n
Tianjin, 300457, China
\n
Standard Chartered Global Business
\n
Services Co. Lim
ited
\n
3
\n
Research, development,
\n
other services
China
$ Ordinary shares
100
\n
The following companies have the
\n
address of Units Unit 802B, 803, 1001A,10
\n
02B,1003-1005,1101-1105, 1201-
\n
1205,1302C,1303, No. 235 Tianhe North
\n
Road, Tianhe Distr
ict,, Guangzhou C
ity,
\n
Guangdong Province, China
\n
Standard Chartered Global Business
\n
Services (Guangzhou) Co.Ltd.
\n
3
\n
Research, development,
\n
other services
\n
China
$ Ordinary shares
\n
100
\n
Standard Chartered (Guangzhou)
\n
Business Management Co.Ltd.
\n
3
\n
Business consulting services
China
$ Ordinary shares
100
\n
The following company has the address
\n
of 8A, Hony Tower, 1st Financ
ial Street,
\n
Nanshan Distr
ict, Shenzen, Ch
ina
\n
SC Ventures Investment Management
\n
(Shenzhen) Lim
ited
\n
Serve as a fund manager in
\n
China
China
US$1.00 Ordinary
100
\n
The following company has the address
\n
of Room 2619, No 9, Linhe West Road,
\n
Tianhe Distr
ict, Guangzhou, Ch
ina
\n
Guangzhou CurrencyFair Information
\n
Technology Lim
ited\u00b3
\n
Foreign Currency
\n
conversion services.
China
CNY Ordinary shares
100
\n
40. Related undertakings of the Group
continued
\n
Subsid
iary undertak
ings
continued
456
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
Name and registered address
Activ
ity
Place of incorporation
Descript
ion of shares
\n
Proportion
\n
of shares
\n
held
\n
(%)
\n
The following company has the address
\n
of No. 188 Yeshen Rd, 11F, A-1161 RM,
\n
Pudong New Distr
ict, Shangha
i, 31,
\n
201308, China
\n
Standard Chartered Trading (Shanghai)
\n
Lim
ited
\n
3
\n
wholesale of base metal
\n
and its products
\n
China
$15,000,000.00 Ordinary
\n
Shares
100
\n
The following company has the address
\n
of Standard Chartered Bank Cote
\n
d\u2019Ivoire, 23 Boulevard de la R\u00e9publique,
\n
Abidjan 17, 17 B.P. 1141, Cote d\u2019Ivoire
\n
Standard Chartered Bank Cote d\u2019 Ivoire
\n
SA
\n
Banking & Financ
ial
\n
Services
\n
Cote d\u2019Ivoire
XOF100,000.00 Ordinary
\n
shares
100
\n
The following company has the address
\n
of 8 Ecowas Avenue, Banjul, Gambia
\n
Standard Chartered Bank Gambia
\n
Lim
ited
\n
Banking & Financ
ial
\n
Services
Gambia
GMD1.00 Ordinary shares
74.8
\n
The following company has the address
\n
of Taunusanlage 16, 60325, Frankfurt am
\n
Main, Germany
\n
Standard Chartered Bank AG
Banking & Financ
ial
\n
Services
Germany
\u20ac Ordinary shares
100
\n
The following companies have the
\n
address of Standard Chartered Bank
\n
Build
ing, 87 Independence Avenue, P.O.
\n
Box 768, Accra,Ghana
\n
Standard Chartered Bank Ghana PLC
Banking & Financ
ial
\n
Services
\n
Ghana
GHS Ordinary shares
69.4
\n
GHS0.52 Non-cumulative
\n
Irredeemable Preference
\n
Shares
87.0
\n
Standard Chartered Ghana Nominees
\n
Lim
ited
\n
Nominee Services
Ghana
GHS Ordinary shares
\n
100
\n
The following company has the address
\n
of Standard Chartered Bank Ghana
\n
Lim
ited, 87, Independence Avenue, Post
\n
Of\ufb01ce Box 678, Accra, Ghana
\n
Standard Chartered Wealth
\n
Management Lim
ited Company
Investment Management
Ghana
GHS Ordinary shares
100
\n
The following company has the address
\n
of 18/F., Standard Chartered Tower, 388
\n
Kwun Tong Road, Kwun Tong, Kowloon,
\n
Hong Kong
\n
Horsford Nominees Lim
ited
Nominee Services
Hong Kong
HKD Ordinary shares
100
\n
The following companies have the
\n
address of 14th Floor, One Taikoo Place,
\n
979 King\u2019s Road, Quarry Bay, Hong Kong.
\n
Kozagi Lim
ited
Investment Holding
\n
Company
Hong Kong
HKD Ordinary shares
100
\n
Standard Chartered PF Real Estate
\n
(Hong Kong) Lim
ited
\n
Investment Holding
\n
Company
Hong Kong
$ Ordinary shares
100
\n
The following companies have the
\n
address of 15/F., Two International
\n
Finance Centre, No. 8 Finance Street,
\n
Central, Hong Kong
\n
Marina Acacia Shipp
ing L
im
ited
Leasing Business
Hong Kong
$ Ordinary shares
100
\n
Marina Amethyst Shipp
ing L
im
ited
Leasing Business
Hong Kong
$ Ordinary shares
100
\n
Marina Angelite Shipp
ing L
im
ited
Leasing Business
Hong Kong
$ Ordinary shares
100
\n
Marina Beryl Shipp
ing L
im
ited
Leasing Business
Hong Kong
$ Ordinary shares
100
\n
Marina Emerald Shipp
ing L
im
ited
Leasing Business
Hong Kong
$ Ordinary shares
100
\n
Marina Flax Shipp
ing L
im
ited
Leasing Business
Hong Kong
$ Ordinary shares
100
\n
Marina Gloxin
ia Sh
ipp
ing L
im
ited
Leasing Business
Hong Kong
$ Ordinary shares
100
\n
40. Related undertakings of the Group
continued
\n
Subsid
iary undertak
ings
continued
457
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
Name and registered address
Activ
ity
Place of incorporation
Descript
ion of shares
\n
Proportion
\n
of shares
\n
held
\n
(%)
\n
Marina Hazel Shipp
ing L
im
ited
Leasing Business
Hong Kong
$ Ordinary shares
100
\n
Marina Ilex Shipp
ing L
im
ited
Leasing Business
Hong Kong
$ Ordinary shares
100
\n
Marina Iridot Shipp
ing L
im
ited
Leasing Business
Hong Kong
$ Ordinary shares
100
\n
Marina Leasing Lim
ited
Leasing Business
Hong Kong
$ Ordinary shares
100
\n
Marina Mimosa Shipp
ing L
im
ited
Leasing Business
Hong Kong
$ Ordinary shares
100
\n
Marina Moonstone Shipp
ing L
im
ited
Leasing Business
Hong Kong
$ Ordinary shares
100
\n
Marina Peridot Shipp
ing L
im
ited
Leasing Business
Hong Kong
$ Ordinary shares
100
\n
Marina Sapphire Shipp
ing L
im
ited
Leasing Business
Hong Kong
$ Ordinary shares
100
\n
Marina Tourmaline Shipp
ing L
im
ited
Leasing Business
Hong Kong
$ Ordinary shares
100
\n
Standard Chartered Leasing Group
\n
Lim
ited
\n
Investment Holding
\n
Company
Hong Kong
$ Ordinary shares
100
\n
The following company has the address
\n
of 25/F, Standard Chartered Bank
\n
Build
ing, 4-4A Des Voeux Road Central,
\n
Hong Kong
\n
Standard Chartered Trade Support (HK)
\n
Lim
ited
\n
Corporate Finance &
\n
Advisory Services
Hong Kong
HKD Ordinary shares
100
\n
The following company has the address
\n
of 13/F Standard Chartered Bank
\n
Build
ing, 4-4A Des Voeux Road Central,
\n
Hong Kong
\n
Standard Chartered Private Equity
\n
Lim
ited
\n
Investment Holding
\n
Company
Hong Kong
HKD Ordinary shares
100
\n
The following company has the address
\n
of 14/F, Standard Chartered Bank
\n
Build
ing, 4-4A Des Voeux Road, Central,
\n
Hong Kong
\n
Standard Chartered Trust (Hong Kong)
\n
Lim
ited
Investment Management
Hong Kong
HKD Ordinary shares
100
\n
The following company has the address
\n
of 15/F, Two International Finance Centre,
\n
No. 8 Finance Street, Central, Hong Kong
\n
Standard Chartered Securit
ies (Hong
\n
Kong) Lim
ited
\n
Corporate Finance &
\n
Advisory Services
Hong Kong
HKD Ordinary shares
100
\n
The following company has the address
\n
of 21/F, Standard Chartered Tower, 388
\n
Kwun Tong Road, Kwun Tong, Kowloon,
\n
Hong Kong
\n
Standard Chartered Asia Lim
ited
Investment Holding
\n
Company
\n
Hong Kong
HKD Deferred shares
100
\n
HKD Ordinary shares
100
\n
The following company has the address
\n
of 32/F, Standard Chartered Bank
\n
Build
ing, 4-4A Des Voeux Road, Central,
\n
Hong Kong
\n
Standard Chartered Bank (Hong Kong)
\n
Lim
ited
\n
Banking & Financ
ial
\n
Services
\n
Hong Kong
HKD Ordinary-A
100
\n
HKD Ordinary-B
100
\n
US$ Ordinary-C
100
\n
US$ Ordinary-D
100
\n
The following company has the address
\n
of 39/F., Oxford House, Taikoo Place, 979
\n
King\u2019s Road, Quarry Bay, Hong Kong
\n
Mox Bank Lim
ited
Banking & Financ
ial
\n
Services
Hong Kong
HKD Ordinary shares
66.0
\n
The following company has the address
\n
of 31/F, Tower 2 Times Square, 1
\n
Matheson St, Causeway Bay, Hong Kong
\n
Assembly Payments HK Lim
ited
Online payment platform
Hong Kong
HKD Ordinary Shares
100
\n
40. Related undertakings of the Group
continued
\n
Subsid
iary undertak
ings
continued
458
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
Name and registered address
Activ
ity
Place of incorporation
Descript
ion of shares
\n
Proportion
\n
of shares
\n
held
\n
(%)
\n
The following company has the address
\n
of Suites 1103-4 AXA Tower, Landmark
\n
East, 100 How Ming Street, Kwun Tong,
\n
Hong Kong
\n
Currencyfair Asia Lim
ited
Foreign Currency
\n
conversion services.
Hong Kong
HKD Ordinary shares
100
\n
The following company has the address
\n
of 2 Floor Sabari Complex 24 Field
\n
Marshal, Capriappa RD Shanthala
\n
Nagar, Ashok Nagar, Bangalore,
\n
Karnataka, , 560025, India
\n
Assembly Payments India Private
\n
Lim
ited
\n
Activ
it
ies auxil
iary to
\n
\ufb01nancial
intermed
iat
ion
India
INR100.00 Ordinary
100
\n
The following company has the address
\n
of 1st Floor, Europe Build
ing, No.1,
\n
Haddows Road, Nungambakkam,
\n
Chennai, 600 006, India
\n
Standard Chartered Global Business
\n
Services Private Lim
ited
Offshore Support Services
India
INR10.00 Equity shares
100
\n
The following company has the address
\n
of 90 M.G.Road, II Floor, Fort, Mumbai,
\n
Maharashtra, 400 001, India
\n
Standard Chartered Finance Private
\n
Lim
ited
Support Services
India
INR10.00 Ordinary shares
98.6
\n
The following company has the address
\n
of Ground Floor, Crescenzo Build
ing, G
\n
Block, C 38/39 , Bandra Kurla Complex,
\n
Bandra (East) , Mumbai , Mumbai ,
\n
Maharashtra , 400051, India
\n
Standard Chartered Private Equity
\n
Advisory (India) Private Lim
ited
Support Services
India
INR1,000.00 Ordinary shares
100
\n
The following company has the address
\n
of Second Floor, Indiqube Edge, Khata
\n
No. 571/630/6/4, Sy.No.6/4, Ambalipura
\n
Village, Varthur Hobli, Marathahalli
\n
Sub-Div
is
ion, Ward No. 150, Bengaluru,
\n
560102, India.
\n
Standard Chartered Research and
\n
Technology India Private Lim
ited
\n
Support Services
India
INR10.00 A Equity shares
100
\n
INR10.00 Cumulative
\n
Redeemable Preference
100
\n
The following company has the address
\n
of Crescenzo, 6th Floor, Plot No 38-39 G
\n
Block , Bandra Kurla Complex, , Bandra
\n
East , Mumbai , Maharashtra , 400051,
\n
India
\n
Standard Chartered Capital Lim
ited
Banking & Financ
ial
\n
Services
India
INR10.00 Equity shares
100
\n
The following company has the address
\n
of 2nd Floor, 23-25 M.G. Road, Fort,
\n
Mumbai, 400 001, India
\n
Standard Chartered Securit
ies (Ind
ia)
\n
Lim
ited
\n
Banking & Financ
ial
\n
Services
India
INR10.00 Equity shares
100
\n
The following company has the address
\n
of Ground Floor, Crescenzo Build
ing, G
\n
Block, C 38/39 , Bandra Kurla Complex,
\n
Bandra (East) , Mumbai , Mumbai ,
\n
Maharashtra , 400051, India
\n
St Helen\u2019s Nominees India Private
\n
Lim
ited
Nominee Services
India
INR10.00 Equity shares
100
\n
40. Related undertakings of the Group
continued
\n
Subsid
iary undertak
ings
continued
459
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
Name and registered address
Activ
ity
Place of incorporation
Descript
ion of shares
\n
Proportion
\n
of shares
\n
held
\n
(%)
\n
The following company has the address
\n
of Vaishnav
i Seren
ity, First Floor, No. 112,
\n
Koramangala Industrial Area, 5th Block,
\n
Koramangala, Bangalore, Karnataka,
\n
560095, India
\n
Standard Chartered (India) Modeling
\n
and Analytics Centre Private Lim
ited
Support Services
India
INR10.00 Equity shares
100
\n
The following companies have the
\n
address of 91 Pembroke Road, Dublin 4,
\n
Ballsbridge, Dublin, DO4 EC42, Ireland
\n
CurrencyFair (Canada) Lim
ited
Dormant
Ireland
\u20ac1.00 Ordinary
100
\n
CurrencyFair Nominees Lim
ited
Nominee company
Ireland
\u20ac1.00 Ordinary
100
\n
The following companies have the
\n
address of 32 Molesworth Street, Dublin
\n
2, D02Y512, Ireland
\n
Inishbrophy Leasing Lim
ited
Leasing Business
Ireland
\u20ac1.00 Ordinary shares
100
\n
Inishcannon Leasing Lim
ited
Leasing Business
Ireland
$1.00 Ordinary shares
100
\n
Inishcrean Leasing Lim
ited
Leasing Business
Ireland
$1.00 Ordinary shares
100
\n
Inishdawson Leasing Lim
ited
Leasing Business
Ireland
\u20ac1.00 Ordinary shares
100
\n
Inisherk
in Leas
ing Lim
ited
Leasing Business
Ireland
$1.00 Ordinary shares
100
\n
Inishoo Leasing Lim
ited
Leasing Business
Ireland
$1.00 Ordinary shares
100
\n
Nightjar Lim
ited
Leasing Business
Ireland
$1.00 Ordinary shares
100
\n
Pembroke Aircraft Leasing 1 Lim
ited
Leasing Business
Ireland
\u20ac1.00 Ordinary shares
100
\n
Pembroke Aircraft Leasing 2 Lim
ited
Leasing Business
Ireland
\u20ac1.00 Ordinary shares
100
\n
Pembroke Aircraft Leasing 3 Lim
ited
Leasing Business
Ireland
$1.00 Ordinary shares
100
\n
Pembroke Aircraft Leasing 4 Lim
ited
Leasing Business
Ireland
$1.00 Ordinary shares
100
\n
Pembroke Aircraft Leasing 5 Lim
ited
Leasing Business
Ireland
$1.00 Ordinary shares
100
\n
Pembroke Aircraft Leasing 6 Lim
ited
Leasing Business
Ireland
$1.00 Ordinary shares
100
\n
Pembroke Aircraft Leasing 7 Lim
ited
Leasing Business
Ireland
$1.00 Ordinary shares
100
\n
Pembroke Aircraft Leasing 8 Lim
ited
Leasing Business
Ireland
$1.00 Ordinary shares
100
\n
Pembroke Aircraft Leasing 9 Lim
ited
Leasing Business
Ireland
$1.00 Ordinary shares
100
\n
Pembroke Aircraft Leasing 10 Lim
ited
Leasing Business
Ireland
$1.00 Ordinary shares
100
\n
Pembroke Aircraft Leasing 11 Lim
ited
Leasing Business
Ireland
$1.00 Ordinary shares
100
\n
Pembroke Aircraft Leasing 12 Lim
ited
Leasing Business
Ireland
$1.00 Ordinary shares
100
\n
Pembroke Aircraft Leasing 13 Lim
ited
Leasing Business
Ireland
$1.00 Ordinary shares
100
\n
Pembroke Aircraft Leasing 14 Lim
ited
Leasing Business
Ireland
$1.00 Ordinary shares
100
\n
Pembroke Aircraft Leasing 15 Lim
ited
Leasing Business
Ireland
$1.00 Ordinary shares
100
\n
Pembroke Aircraft Leasing 16 Lim
ited
Leasing Business
Ireland
$1.00 Ordinary shares
100
\n
Pembroke Aircraft Leasing Holdings
\n
Lim
ited
\n
Leasing Business
Ireland
$1.00 Ordinary shares
\n
100
\n
Pembroke Capital Lim
ited
Leasing Business
Ireland
\u20ac1.25 Ordinary shares
100
\n
US$1.00 Ordinary
\n
Skua Lim
ited
Leasing Business
Ireland
$1.00 Ordinary shares
100
\n
Zodia Markets (Ireland) Lim
ited
Banking & Financ
ial
\n
Services
Ireland
$1.00 Ordinary shares
100
\n
The following company has the address
\n
of 27 Fitzw
ill
iam Street, Dublin, D02 TP23,
\n
Ireland
\n
Zodia Custody (Ireland) Lim
ited
Custody services
Ireland
$1.00 Ordinary shares
100
\n
The following company has the address
\n
of 91 Pembroke Road, Dublin 4,
\n
Ballsbridge, Dublin, DO4 EC42, Ireland
\n
CurrencyFair Lim
ited
FX transfer services
Ireland
\u20ac0.001 Ordinary shares
100
\n
\u20ac0.001 Ordinary shares
27.9
\n
40. Related undertakings of the Group
continued
\n
Subsid
iary undertak
ings
continued
460
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
Name and registered address
Activ
ity
Place of incorporation
Descript
ion of shares
\n
Proportion
\n
of shares
\n
held
\n
(%)
\n
The following company has the address
\n
of First Names House, Victor
ia Road,
\n
Douglas, IM2 4DF, Isle of Man
\n
Pembroke Group Lim
ited
\n
4
\n
Aircraft leasing, \ufb02eet
\n
advisory and technical
\n
services
Isle of Man
$0.01 Ordinary shares
100
\n
The following companies have the
\n
address of 1st Floor, Goldie House, 1-4
\n
Goldie Terrace, Upper Church Street,
\n
Douglas, IM1 1EB, Isle of Man
\n
Standard Chartered Assurance Lim
ited
Insurance Services
Isle of Man
$1.00 Ordinary shares
100
\n
US$1.00 Redeemable
\n
Preference
100
\n
Standard Chartered Isle of Man Lim
ited
\n
5
\n
Insurance & Reinsurance
\n
Company
Isle of Man
$1.00 Ordinary shares
100
\n
The following company has the address
\n
of 21/F, Sanno Park Tower, 2-11-1
\n
Nagatacho, Chiyoda-ku, Tokyo, 100-6155,
\n
Japan
\n
Standard Chartered Securit
ies (Japan)
\n
Lim
ited
\n
Banking & Financ
ial
\n
Services
Japan
JPY Ordinary
100
\n
The following company has the address
\n
of 15 Castle Street, St Helier, JE4 8PT,
\n
Jersey
\n
SCB Nominees (CI) Lim
ited
Nominee Services
Jersey
$1.00 Ordinary shares
100
\n
The following company has the address
\n
of IFC 5, St Helier, JE1 1ST, Jersey
\n
Standard Chartered Funding (Jersey)
\n
Lim
ited
\n
5
\n
Investment Holding
\n
Company
Jersey
\u00a31.00 Ordinary shares
100
\n
The following companies have the
\n
address of StandardChartered@
\n
Chiromo, Number 48, Westlands Road, P.
\n
O. Box 30003 - 00100, Nairob
i, Kenya
\n
Solveazy Technology Kenya Ltd
B2B dig
ital platform
Kenya
KES1,000.00 Ordinary
100
\n
Standard Chartered Bancassurance
\n
Intermediary Lim
ited
Insurance Services
Kenya
KES1,00.00 Ordinary shares
100
\n
Standard Chartered Investment Services
\n
Lim
ited
Investment services
Kenya
KES20.00 Ordinary shares
100
\n
Standard Chartered Bank Kenya Lim
ited
Banking & Financ
ial
\n
Services
Kenya
KES5.00 Ordinary shares
74.3
\n
Standard Chartered Securit
ies (Kenya)
\n
Lim
ited
\n
Corporate Finance &
\n
Advisory Services
\n
Kenya
\n
KES10.00 Ordinary shares
100
\n
KES5.00 Preference
100
\n
Standard Chartered Financ
ial Serv
ices
\n
Lim
ited
Merchant Banking
Kenya
KES20.00 Ordinary shares
100
\n
Standard Chartered Kenya Nominees
\n
Lim
ited1
Nominee Services
Kenya
KES20.00 Ordinary shares
100
\n
Tawi Fresh Kenya Lim
ited
Dig
ital Marketplace,
\n
Ecommerce
Kenya
KES1,000.00 Ordinary
100
\n
The following company has the address
\n
of 47 Jongno, Jongno-gu, Seoul, 110-702,
\n
Republic of Korea
\n
Standard Chartered Bank Korea Lim
ited
Banking & Financ
ial
\n
Services
Korea, Republic of
KRW5,000.00 Ordinary shares
100
\n
The following company has the address
\n
of 2F, 47 Jongno, Jongno-gu, Seoul,
\n
110-702, Republic of Korea
\n
Standard Chartered Securit
ies Korea Co.,
\n
Ltd
Asset Management
Korea, Republic of
KRW5,000.00 Ordinary shares
100
\n
40. Related undertakings of the Group
continued
\n
Subsid
iary undertak
ings
continued
461
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
Name and registered address
Activ
ity
Place of incorporation
Descript
ion of shares
\n
Proportion
\n
of shares
\n
held
\n
(%)
\n
The following company has the address
\n
of Atrium Build
ing, Maarad Street, 3rd
\n
Floor, P.O.Box: 11-4081 Riad El Solh, Beirut,
\n
Beirut Central Distr
ict, Lebanon
\n
Standard Chartered Metropolitan
\n
Holdings SAL
\n
Investment Holding
\n
Company
Lebanon
$10.00 Ordinary A shares
100
\n
The following companies have the
\n
address of Level 26, Equatorial Plaza,
\n
Jalan Sultan Ismail, 50250 Kuala Lumpur,
\n
Malaysia
\n
Cartaban (Malaya) Nominees Sdn
\n
Berhad
Nominee Services
Malaysia
RM Ordinary shares
100
\n
Cartaban Nominees (Asing) Sdn Bhd
Nominee Services
Malaysia
RM Ordinary shares
100
\n
Cartaban Nominees (Tempatan) Sdn
\n
Bhd
Nominee Services
Malaysia
RM Ordinary shares
100
\n
Golden Maestro Sdn Bhd
Investment Holding
\n
Company
Malaysia
RM Ordinary shares
100
\n
Price Solutions Sdn Bhd
Direct Sales/Collection
\n
Services
Malaysia
RM Ordinary shares
100
\n
SCBMB Trustee Berhad
Trustee Services
Malaysia
RM Ordinary shares
100
\n
Standard Chartered Bank Malaysia
\n
Berhad
\n
Banking & Financ
ial
\n
Services
\n
Malaysia
RM Irredeemable Convertible
\n
Preference shares
100
\n
RM Ordinary shares
100
\n
Standard Chartered Saadiq Berhad
Banking & Financ
ial
\n
Services
Malaysia
RM Ordinary shares
100
\n
The following companies have the
\n
address of TMF Trust Labuan Lim
ited,
\n
Brumby Centre, Lot 42,, Jalan Muhibbah,
\n
87000 Labuan F.T., Malaysia
\n
Marina Morganite Shipp
ing L
im
ited
\n
6
\n
Ownership and leasing of
\n
vessels
Malaysia
$ Ordinary shares
100
\n
Marina Moss Shipp
ing L
im
ited
\n
6
\n
Ownership and Leasing of
\n
vessels
Malaysia
$ Ordinary shares
100
\n
Marina Tanzanite Shipp
ing L
im
ited
\n
6
\n
Ownership and leasing of
\n
vessels
Malaysia
$ Ordinary shares
100
\n
The following company has the address
\n
of Suite 18-1, Level 18, Vertical Corporate
\n
Tower B, Avenue 10, The Vertical, Bangsar
\n
South City , No. 8, Jalan Kerinch
i , 59200
\n
Kuala Lumpur, Wilayah Persekutuan,
\n
Malaysia
\n
Resolution Alliance Sdn Bhd
Investment Holding
\n
Company
\n
Malaysia
RM Ordinary shares
100
\n
Irredeemable Preference
100
\n
The following company has the address
\n
of 12th Floor, Menara Symphony , No. 5,
\n
Jalan Prof. Khoo Kay Kim, Seksyen 13,
\n
46200 Petaling Jaya , Selangor, Malaysia
\n
Solv Sdn. Bhd.
B2B dig
ital platform
\n
offering \ufb01nanc
ial serv
ices
Malaysia
RM5.00 Ordinary
100
\n
The following company has the address
\n
of Level 1, Wisma Standard Chartered,
\n
Jalan Teknologi 8, Taman Teknologi
\n
Malaysia, 57000 Bukit Jalil, Kuala
\n
Lumpur, Wilayah Persekutuan, Malaysia
\n
Standard Chartered Global Business
\n
Services Sdn Bhd
Offshore Support Services
Malaysia
RM Ordinary shares
100
\n
40. Related undertakings of the Group
continued
\n
Subsid
iary undertak
ings
continued
462
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
Name and registered address
Activ
ity
Place of incorporation
Descript
ion of shares
\n
Proportion
\n
of shares
\n
held
\n
(%)
\n
The following company has the address
\n
of 10th Floor, Menara Hap Seng, No. 1&3,
\n
Jalan P. Ramlee, 50250 Kuala Lumpur,
\n
Malaysia
\n
Assembly Payments Malaysia Sdn. Bhd.
Other \ufb01nancial serv
ice
\n
activ
it
ies
Malaysia
RM Ordinary shares
100
\n
The following companies have the
\n
address of Trust Company Complex,
\n
Ajeltake Road, Ajeltake Island, Majuro,
\n
MH96960, Marshall Islands
\n
Marina Alysse Shipp
ing L
im
ited
\n
6
\n
Ownership, Leasing of
\n
vessels
Marshall Islands
$1.00 Ordinary shares
100
\n
Marina Amandier Shipp
ing L
im
ited
\n
6
\n
Ownership, Leasing of
\n
vessels
Marshall Islands
$1.00 Ordinary shares
100
\n
Marina Ambroisee Shipp
ing L
im
ited
\n
6
\n
Ownership, Leasing of
\n
vessels
Marshall Islands
$1.00 Ordinary shares
100
\n
Marina Angelica Shipp
ing L
im
ited
\n
6
\n
Ownership, Leasing of
\n
vessels
Marshall Islands
$1.00 Ordinary shares
100
\n
Marina Aventurine Shipp
ing L
im
ited
\n
6
\n
Ownership, Leasing of
\n
vessels
Marshall Islands
$1.00 Ordinary shares
100
\n
Marina Buxus Shipp
ing L
im
ited
\n
6
\n
Ownership, Leasing of
\n
vessels
Marshall Islands
$1.00 Ordinary shares
100
\n
Marina Citr
ine Sh
ipp
ing L
im
ited
\n
6
\n
Ownership, Leasing of
\n
vessels
Marshall Islands
$1.00 Ordinary shares
100
\n
Marina Dahlia Shipp
ing L
im
ited
\n
6
\n
Ownership, Leasing of
\n
vessels
Marshall Islands
$1.00 Ordinary shares
100
\n
Marina Dittany Shipp
ing L
im
ited
\n
6
\n
Ownership, Leasing of
\n
vessels
Marshall Islands
$1.00 Ordinary shares
100
\n
Marina Dorado Shipp
ing L
im
ited
\n
6
\n
Ownership, Leasing of
\n
vessels
Marshall Islands
$1.00 Ordinary shares
100
\n
Marina Lilac Shipp
ing L
im
ited
\n
6
\n
Ownership, Leasing of
\n
vessels
Marshall Islands
$1.00 Ordinary shares
100
\n
Marina Lolite Shipp
ing L
im
ited
\n
6
\n
Ownership, Leasing of
\n
vessels
Marshall Islands
$1.00 Ordinary shares
100
\n
Marina Obsid
ian Sh
ipp
ing L
im
ited
\n
6
\n
Ownership, Leasing of
\n
vessels
Marshall Islands
$1.00 Ordinary shares
100
\n
Marina Protea Shipp
ing L
im
ited
\n
6
\n
Ownership, Leasing of
\n
vessels
Marshall Islands
$1.00 Ordinary shares
100
\n
Marina Quartz Shipp
ing L
im
ited
\n
6
\n
Ownership, Leasing of
\n
vessels
Marshall Islands
$1.00 Ordinary shares
100
\n
Marina Remora Shipp
ing L
im
ited
\n
6
\n
Ownership, Leasing of
\n
vessels
Marshall Islands
$1.00 Ordinary shares
100
\n
Marina Turquoise Shipp
ing L
im
ited
\n
6
\n
Ownership, Leasing of
\n
vessels
Marshall Islands
$1.00 Ordinary shares
100
\n
Marina Zircon Shipp
ing L
im
ited
\n
6
\n
Ownership, Leasing of
\n
vessels
Marshall Islands
$1.00 Ordinary shares
100
\n
The following companies have the
\n
address of 6/F, Standard Chartered
\n
Tower, 19, Bank Street, Cybercity, Ebene,
\n
72201, Maurit
ius
\n
Standard Chartered Bank (Maurit
ius)
\n
Lim
ited
\n
Banking & Financ
ial
\n
Services
Maurit
ius
$ Ordinary shares
100
\n
Standard Chartered Private Equity
\n
(Maurit
ius) L
im
ited
Investment Management
Maurit
ius
$1.00 Ordinary shares
100
\n
Standard Chartered Private Equity
\n
(Maurit
ius) II L
im
ited
Investment Management
Maurit
ius
$1.00 Ordinary shares
100
\n
Standard Chartered Private Equity
\n
(Maurit
ius) lll L
im
ited
Investment Management
Maurit
ius
$1.00 Ordinary shares
100
\n
40. Related undertakings of the Group
continued
\n
Subsid
iary undertak
ings
continued
463
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
Name and registered address
Activ
ity
Place of incorporation
Descript
ion of shares
\n
Proportion
\n
of shares
\n
held
\n
(%)
\n
The following company has the address
\n
of Mondial Management Services Ltd,
\n
Unit 2L, 2nd Floor Standard Chartered
\n
Tower, 19 Cybercity, Ebene, Maurit
ius
\n
Subcontinental Equit
ies L
im
ited
Investment Holding
\n
Company
Maurit
ius
$1.00 Ordinary shares
100
\n
The following company has the address
\n
of IQEQ Corporate Services (Maurit
ius)
\n
Ltd, 33, Edith Cavell Street, Port Louis,
\n
11324, Maurit
ius
\n
Actis Treit Holdings (Maurit
ius) L
im
ited\u00b9
Investment Holding
\n
Company
Maurit
ius
Class A $1.00 Ordinary shares
62.0
\n
The following company has the address
\n
of Standard Chartered Bank Nepal
\n
Lim
ited, Madan Bhandar
i Marg, Ward
\n
No.34, Kathmandu Metropolitan City,
\n
Kathmandu Distr
ict, Bagmat
i Zone,
\n
Kathmandu, Nepal
\n
Standard Chartered Bank Nepal Lim
ited
Banking & Financ
ial
\n
Services
Nepal
NPR100.00 Ordinary shares
70.2
\n
The following company has the address
\n
of Hoogoorddreef 15, 1101 BA,
\n
Amsterdam, Netherlands
\n
Pembroke Holland B.V.
Leasing Business
Netherlands
\u20ac450.00 Ordinary shares
100
\n
The following companies have the
\n
address of 1 Basinghall Avenue, London,
\n
EC2V 5DD, United Kingdom
\n
Standard Chartered Holdings (Africa)
\n
B.V.\u2075
\n
Holding company
Netherlands
\u20ac4.50 Ordinary shares
\n
100
\n
Standard Chartered Holdings (Asia
\n
Pacif
ic) B.V.
\n
5
\n
Holding company
Netherlands
\u20ac4.50 Ordinary shares
\n
100
\n
Standard Chartered Holdings
\n
(International) B.V.
\n
5
\n
Holding company
Netherlands
\u20ac4.50 Ordinary shares
\n
100
\n
Standard Chartered MB Holdings B.V.
\n
5
\n
Holding company.
Netherlands
\u20ac4.50 Ordinary shares
100
\n
The following company has the address
\n
of 4 All good Place, Rototuna North,
\n
Hamilton, New Zealand, 3210
\n
PromisePay Lim
ited
Payment Services Provider
New Zealand
NZD Ordinary shares
100
\n
The following companies have the
\n
address of 142, Ahmadu Bello Way,
\n
Victor
ia Island, Lagos, 101241, N
iger
ia
\n
Standard Chartered Bank Niger
ia
\n
Lim
ited
\n
Banking & Financ
ial
\n
Services
\n
Niger
ia
NGN1.00 B Redeemable
\n
Preference
100
\n
NGN1.00 Irredeemable Non
\n
Cumulative Preference
100
\n
NGN1.00 Ordinary
100
\n
Standard Chartered Capital & Advisory
\n
Niger
ia L
im
ited
\n
Corporate Finance &
\n
Advisory Services
Niger
ia
NGN1.00 Ordinary shares
100
\n
Standard Chartered Nominees (Niger
ia)
\n
Lim
ited
Custody Services
Niger
ia
NGN1.00 Ordinary shares
100
\n
The following company has the address
\n
of 3/F Main SCB Build
ing, I.I Chundr
igar
\n
Road, Karachi, Sindh, 74000, Pakistan
\n
Price Solution Pakistan (Private) Lim
ited
Banking & Financ
ial
\n
Services
Pakistan
PKR10.00 Ordinary shares
100
\n
The following company has the address
\n
of P.O. Box No. 5556I.I. Chundrigar Road,
\n
Karachi, 74000, Pakistan
\n
Standard Chartered Bank (Pakistan)
\n
Lim
ited
\n
Banking & Financ
ial
\n
Services
Pakistan
PKR10.00 Ordinary shares
98.9
\n
40. Related undertakings of the Group
continued
\n
Subsid
iary undertak
ings
continued
464
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
Name and registered address
Activ
ity
Place of incorporation
Descript
ion of shares
\n
Proportion
\n
of shares
\n
held
\n
(%)
\n
The following company has the address
\n
of Rondo Ignacego Daszy\u0144skiego 2B,
\n
00-843, Warsaw, Poland
\n
Standard Chartered Global Business
\n
Services sp\u00f3\u0142ka z ograniczon\u0105
\n
odpowiedz
ialno\u015bc
i\u0105
Offshore Support Services
Poland
PLN50.00 Ordinary shares
100
\n
The following company has the address
\n
of Al Faisal
iah Of\ufb01ce Tower Floor No 7
\n
(T07D) , King Fahad Highway, Olaya
\n
Distr
ict, R
iyadh P.O box 295522 , Riyadh,
\n
11351 , Saudi Arabia
\n
Standard Chartered Capital (Saudi
\n
Arabia)
Custody Services
Saudi Arabia
SAR10.00 Ordinary shares
100
\n
The following company has the address
\n
of 9 & 11, Lightfoot Boston Street,
\n
Freetown, Sierra Leone
\n
Standard Chartered Bank Sierra Leone
\n
Lim
ited
\n
Banking & Financ
ial
\n
Services
Sierra Leone
SLL1.00 Ordinary shares
80.7
\n
The following companies have the
\n
address of 9 Raf\ufb02es Place, #27-00
\n
Republic Plaza, 048619, Singapore
\n
Actis Treit Holdings No.1 (Singapore)
\n
Private Lim
ited
\n
1
\n
Investment Holding
\n
Company
Singapore
SGD Ordinary
100
\n
Actis Treit Holdings No.2 (Singapore)
\n
Private Lim
ited
\n
1
\n
Investment Holding
\n
Company
Singapore
SGD Ordinary
100
\n
The following companies have the
\n
address of 8 Marina Boulevard, Marina
\n
Bay Financ
ial Centre Tower 1,, Level 25-01,
\n
018981, Singapore, Singapore
\n
Standard Chartered Private Equity
\n
(Singapore) Pte. Ltd
\n
Investment Holding
\n
Company
Singapore
$ Ordinary shares
100
\n
Standard Chartered Real Estate
\n
Investment Holdings (Singapore) Private
\n
Lim
ited
\n
Investment Holding
\n
Company
\n
Singapore
$ Ordinary shares
100
\n
The following companies have the
\n
address of 8 Marina Boulevard, Level 26,
\n
Marina Bay Financ
ial Centre, Tower 1,
\n
018981, Singapore
\n
Marina Aquata Shipp
ing Pte. Ltd.
Leasing Business
Singapore
$ Ordinary shares
100
\n
Marina Aruana Shipp
ing Pte. Ltd.
Leasing Business
Singapore
SGD & USD Ordinary shares
100
\n
Marina Cobia Shipp
ing Pte. Ltd.
Leasing Business
Singapore
SGD & USD Ordinary shares
100
\n
Marina Fatmarin
i Sh
ipp
ing Pte. Ltd.
Leasing Business
Singapore
$ Ordinary shares
100
\n
Marina Frabandari Shipp
ing Pte. Ltd.
Leasing Business
Singapore
$ Ordinary shares
100
\n
Marina Gerbera Shipp
ing Pte. Ltd.
Leasing Business
Singapore
$ Ordinary shares
100
\n
Marina Opah Shipp
ing Pte. Ltd.
Leasing Business
Singapore
SGD Ordinary shares
100
\n
Marina Partawati Shipp
ing Pte. Ltd.
Leasing Business
Singapore
$ Ordinary shares
100
\n
The following company has the address
\n
of 7 Changi Business Park Crescent,
\n
#03-00 Standard Chartered @ Changi,
\n
486028, Singapore
\n
Raf\ufb02es Nominees (Pte.) Lim
ited
Nominee Services
Singapore
SGD Ordinary shares
100
\n
The following companies have the
\n
address of 8 Marina Boulevard, #27-01
\n
Marina Bay Financ
ial Centre Tower 1,
\n
018981, Singapore
\n
SCTS Capital Pte. Ltd
Nominee Services
Singapore
SGD Ordinary shares
100
\n
SCTS Management Pte. Ltd.
Nominee Services
Singapore
SGD Ordinary shares
100
\n
40. Related undertakings of the Group
continued
\n
Subsid
iary undertak
ings
continued
465
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
Name and registered address
Activ
ity
Place of incorporation
Descript
ion of shares
\n
Proportion
\n
of shares
\n
held
\n
(%)
\n
Standard Chartered Bank (Singapore)
\n
Lim
ited
\n
Banking & Financ
ial
\n
Services
\n
Singapore
SGD Non-cumulative Class C
\n
Tier-1 preference
100
\n
SGD Ordinary-A
100
\n
US$ Non-cumulative Class B
\n
Tier-1 Preference
100
\n
US$ Ordinary-A
100
\n
US$ Ordinary-B
100
\n
US$ Ordinary-C
100
\n
Standard Chartered Trust (Singapore)
\n
Lim
ited
Trustee Services
Singapore
SGD Ordinary shares
100
\n
Standard Chartered Holdings
\n
(Singapore) Private Lim
ited
\n
Investment Holding
\n
Company
\n
Singapore
SGD Ordinary
100
\n
US$ Ordinary
100
\n
Standard Chartered Nominees
\n
(Singapore) Pte Ltd
Nominee Services
Singapore
SGD Ordinary shares
100
\n
The following companies have the
\n
address of 80 Robinson Road, #02-00,
\n
068898, Singapore
\n
Autumn Life Pte. Ltd.
Support Services
Singapore
$ Ordinary shares
100
\n
Cardspal Pte. Ltd.
Support Services
Singapore
$ Ordinary shares
100
\n
Audax Financ
ial Technology Pte. Ltd
Support Services
Singapore
$ Ordinary shares
100
\n
Letsbloom Pte. Ltd.
Others
Singapore
$ Ordinary shares
100
\n
SCV Research and Development Pte. Ltd.
Others
Singapore
$ Ordinary shares
100
\n
Pegasus Dealmaking Pte. Ltd.
Mergers and Acquis
it
ions
\n
(M&A) marketplace
Singapore
$ Ordinary shares
100
\n
The following companies have the
\n
address of Tricor WP Corporate Services
\n
Pte Ltd, 80 Robinson Road #02-00,
\n
068898, Singapore
\n
Power2SME Pte. Ltd.
Investment Holding Entity
Singapore
$ Ordinary shares
90.6
\n
SCV Master Holding Company Pte. Ltd.
Investment Holding Entity
Singapore
$ Ordinary shares
100
\n
Solv-India Pte. Ltd.
Investment Holding Entity
Singapore
$ Ordinary shares
100
\n
The following company has the address
\n
of 77 Robinson Road, #25-00 Robinson
\n
77, 068896, Singapore
\n
Trust Bank Singapore Lim
ited
Banking & Financ
ial
\n
Services
Singapore
SGD Ordinary shares
60.0
\n
The following company has the address
\n
of 1 Robinson Road, #17-00, AIA Tower,
\n
048542, Singapore
\n
CurrencyFair (Singapore) Pte.Ltd
Foreign Currency
\n
conversion services.
Singapore
SGD Ordinary shares
100
\n
The following companies have the
\n
address of 38 Beach Road, #29-11 South
\n
Beach Tower, 189767, Singapore
\n
Assembly Payments SGP Pte. Ltd.
Transaction/Payment
\n
Processing Services
\n
Singapore
SGD Ordinary shares
\n
100
\n
Assembly Payments Pte. Ltd.
Investment holding
\n
company
\n
Singapore
$ Ordinary shares
100
\n
$ Preference shares
100
\n
The following company has the address
\n
of Abogado Pte Ltd, No. 8 Marina
\n
Boulevard, #05-02 MBFC Tower 1, 018981,
\n
Singapore
\n
Standard Chartered IL&FS Management
\n
(Singapore) Pte. Lim
ited
Investment Management
Singapore
$ Ordinary
50.0
\n
40. Related undertakings of the Group
continued
\n
Subsid
iary undertak
ings
continued
466
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
Name and registered address
Activ
ity
Place of incorporation
Descript
ion of shares
\n
Proportion
\n
of shares
\n
held
\n
(%)
\n
The following companies have the
\n
address of 2nd Floor, 115 West Street,
\n
Sandton, Johannesburg, 2196, South
\n
Africa
\n
CMB Nominees (RF) PTY Lim
ited
Nominee Services
South Africa
ZAR1.00 Ordinary shares
100
\n
Standard Chartered Nominees South
\n
Africa Proprietary Lim
ited (RF)
Nominee Services
South Africa
ZAR Ordinary shares
100
\n
The following company has the address
\n
of 6 Fort Street, PO 785848, , Birnam,
\n
Sandton, 2196 2146, South Africa
\n
Promisepay (PTY) Ltd
Payment Services Provider
South Africa
ZAR1.00 Ordinary
100
\n
The following company has the address
\n
of 1F, No.177 & 3F-6F, 17F-19F, No.179,
\n
Liaon
ing Street, Zhongshan D
ist., Taipe
i,
\n
104, Taiwan
\n
Standard Chartered Bank (Taiwan)
\n
Lim
ited
\n
Banking & Financ
ial
\n
Services
Taiwan
TWD10.00 Ordinary shares
100
\n
The following companies have the
\n
address of 1 Floor, International House,
\n
Shaaban Robert Street/Garden Avenue,
\n
PO Box 9011, Dar Es Salaam, Tanzania,
\n
United Republic of
\n
Standard Chartered Bank Tanzania
\n
Lim
ited
\n
Banking & Financ
ial
\n
Services
\n
Tanzania
TZS1,000.00 Ordinary shares
100
\n
TZS1,000.00 Preference
100
\n
Standard Chartered Tanzania Nominees
\n
Lim
ited
Nominee Services
Tanzania
TZS1,000.00 Ordinary shares
100
\n
The following company has the address
\n
of No. 140, 11th, 12th and 14th Floor,
\n
Wireless Road, Lumpin
i, Patumwan,
\n
Bangkok, 10330, Thailand
\n
Standard Chartered Bank (Thai) Public
\n
Company Lim
ited
\n
Banking & Financ
ial
\n
Services
Thailand
THB10.00 Ordinary shares
99.9
\n
The following company has the address
\n
of Buyukdere Cad. Yapi Kredi Plaza C
\n
Blok, Kat 15, Levent, Istanbul, 34330,
\n
T\u00fcrkiye
\n
Standard Chartered Yatir
im Bankas
i Turk
\n
Anonim Sirket
i
\n
Banking & Financ
ial
\n
Services
T\u00fcrkiye
TRL0.10 Ordinary shares
100
\n
The following company has the address
\n
of Standard Chartered Bank Bldg, 5
\n
Speke Road, PO Box 7111, Kampala,
\n
Uganda
\n
Standard Chartered Bank Uganda
\n
Lim
ited
\n
Banking & Financ
ial
\n
Services
Uganda
UGS1,000.00 Ordinary shares
100
\n
The following company has the address
\n
of EX-26, Ground Floor, Bldg 16-Co Work,
\n
Dubai Internet City, Dubai, United Arab
\n
Emirates
\n
Appro Onboarding Solutions FZ-LLC
IT solutions provider and
\n
support service provider.
United Arab Emirates AED1,000.00 Ordinary shares
100
\n
40. Related undertakings of the Group
continued
\n
Subsid
iary undertak
ings
continued
467
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
Name and registered address
Activ
ity
Place of incorporation
Descript
ion of shares
\n
Proportion
\n
of shares
\n
held
\n
(%)
\n
The following company has the address
\n
of Suites 507, 508, 509, 15th Floor, Al
\n
Sarab Tower, Adgm Square, Al Maryah
\n
Island, Abu Dhabi
\n
Financ
ial Inclus
ion Technologies Ltd
Dig
ital wallet and
\n
technology payments
\n
platform
United Arab Emirates US$1.00 Ordinary
100
\n
The following company has the address
\n
of 505 Howard St. #201, San Francisco,
\n
CA 94105, United States
\n
SC Studios, LLC
Offshore Support Services
United States
Membership Interest
100
\n
The following company has the address
\n
of Standard Chartered Bank, 37F, 1095
\n
Avenue of the Americas, New York 10036,
\n
United States
\n
Standard Chartered Bank International
\n
(Americas) Lim
ited
\n
Banking & Financ
ial
\n
Services
United States
$1,000.00 Ordinary shares
100
\n
The following companies have the
\n
address of Corporation Trust Centre,
\n
1209 Orange Street, Wilm
ington DE
\n
19801, United States
\n
Standard Chartered Holdings Inc.
Investment Holding
\n
Company
United States
$100.00 Common shares
100
\n
Standard Chartered Securit
ies (North
\n
America) LLC
\n
Banking & Financ
ial
\n
Services
United States
Membership Interest
100
\n
The following company has the address
\n
of 50 Fremont Street, San Francisco CA
\n
94105, United States
\n
Standard Chartered Overseas
\n
Investment, Inc.
\n
Investment Holding
\n
Company
United States
$10.00 Ordinary shares
100
\n
The following companies have the
\n
address of C/O Corporation Service
\n
Company, 251 Little Falls Drive,
\n
Wilm
ington DE 19808, Un
ited States
\n
CurrencyFair (USA) Inc
Dormant
United States
$1.00 Uncertif
icated Shares
100
\n
Standard Chartered Trade Services
\n
Corporation
Trade Services
United States
$0.01 Common shares
100
\n
The following company has the address
\n
of 25 Taylor St, San Francisco, CA,
\n
94102-3916
\n
Assembly Escrow Inc
Payment Services Provider
United States
$0.0001 Ordinary
100
\n
The following company has the address
\n
of 555 Washington Av, St Louis, MO,
\n
United States of America, 63101
\n
Assembly Payments, Inc
Payment services provider
United States
$0.0001 Ordinary
100
\n
The following company has the address
\n
of Level 3, #CP1.L01 and #CP2.L01,
\n
Capital Place, 29 Lieu Gia
i Street, Ngoc
\n
Khanh Ward, Ba Dinh Distr
ict, Ha No
i,
\n
10000, Vietnam
\n
Standard Chartered Bank (Vietnam)
\n
Lim
ited
\n
Banking & Financ
ial
\n
Services
Vietnam
VND Charter Capital shares
100
\n
40. Related undertakings of the Group
continued
\n
Subsid
iary undertak
ings
continued
468
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
Name and registered address
Activ
ity
Place of incorporation
Descript
ion of shares
\n
Proportion
\n
of shares
\n
held
\n
(%)
\n
The following companies have the
\n
address of Vistra Corporate Services
\n
Centre, Wickhams Cay II, Road Town,
\n
Tortola, VG1110, Virg
in Islands, Br
it
ish
\n
Sky Favour Investments Lim
ited
\n
6
\n
Investment Holding
\n
Company
Virg
in Islands, Br
it
ish
$1.00 Ordinary shares
100
\n
Sky Harmony Holdings Lim
ited
\n
6
\n
Investment Holding
\n
Company
Virg
in Islands, Br
it
ish
$1.00 Ordinary shares
100
\n
The following companies have the
\n
address of Stand No. 4642, Corner of
\n
Mwaimwena Road and Addis Ababa
\n
Dri, Lusaka, Zambia, 10101, Zambia
\n
Standard Chartered Bank Zambia Plc
Banking & Financ
ial
\n
Services
Zambia
ZMW0.25 Ordinary shares
90.0
\n
Standard Chartered Zambia Securit
ies
\n
Services Nominees Lim
ited
Nominee Services
Zambia
ZMW1.00 Ordinary shares
100
\n
The following companies have the
\n
address of Africa Unity Square Build
ing,
\n
68 Nelson Mandela Avenue, Harare,
\n
Zimbabwe
\n
Africa Enterprise Network Trust
\n
2
\n
Investment Holding
\n
Company
Zimbabwe
Interest in Trust
100
\n
Standard Chartered Bank Zimbabwe
\n
Lim
ited
\n
Banking & Financ
ial
\n
Services
Zimbabwe
$1.00 Ordinary shares
100
\n
Standard Chartered Nominees
\n
Zimbabwe (Private) Lim
ited
Nominee Services
Zimbabwe
$2.00 Ordinary shares
100
\n
1
The Group has determined that these undertakings are excluded from being consolidated into the Groups accounts, and do not meet the de\ufb01n
it
ion of a
\n
Subsid
iary under IFRS. See notes 31 and 32 for the consol
idat
ion pol
icy and disclosure of the undertaking.
\n
2
No share capital by virtue of being a trust
\n
3
Lim
ited l
iab
il
ity company
\n
4
The Group has determined the princ
ipal place of operat
ion to be Ireland
\n
5
The Group has determined the princ
ipal place of operat
ion to be United Kingdom
\n
6
The Group has determined the princ
ipal place of operat
ion to be Hong Kong
\n
7
Company is exempt from the requirements of the companies Act relating to the audit of ind
iv
idual accounts by virtue of
S479A
\n
8 Company numbers of the subsid
iar
ies taking an audit exemption are SC Transport Leasing 1 LTD
06787116, SC Transport Leasing 2 Lim
ited 06787090 and
\n
Standard Chartered Leasing (UK) Lim
ited 05513184
\n
9 Directly held related undertaking
\n
Joint ventures
\n
Name and registered address
Activ
ity
Place of Incorporation
Descript
ion of shares
\n
Proportion
\n
of shares
\n
held
\n
(%)
\n
The following company has the address of
\n
Tricor WP Corporate Services Pte Ltd, 80
\n
Robinson Road #02-00, 068898,
\n
Singapore
\n
Olea Global Pte. Ltd.
Provis
ion of trade \ufb01nance
\n
products and services
\n
Singapore
$ Ordinary shares
50.0
\n
$ Preference shares
100
\n
40. Related undertakings of the Group
continued
\n
Subsid
iary undertak
ings
continued
469
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
40. Related undertakings of the Group
continued
\n
Associates
\n
Name and registered address
Activ
ity
Place of Incorporation
Descript
ion of shares
\n
Proportion
\n
of shares
\n
held
\n
(%)
\n
The following company has the address
\n
of 41 Luke Street, London, EC2A 4DP ,
\n
United Kingdom
\n
Fintech for International Development
\n
Ltd
Financ
ial
intermed
iat
ion
United Kingdom
$0.0001 Ordinary-A
44.4
\n
The following company has the address
\n
of Bohai Bank Build
ing, No.218 Ha
i He
\n
Dong Lu, Hedong Distr
ict, T
ianjin, China,
\n
300012, China
\n
China Bohai Bank Co., Ltd.
General commercial
\n
banking businesses
China
CNY1.00 Ordinary shares
16.2
\n
The following company has the address
\n
of 17/F, 100, Gongpyeong-dong,
\n
Jongno-gu, Seoul, Korea, Republic of
\n
Ascenta IV
Investment making
Korea, Republic of
KRW1.00 Partnership Interest
39.1
\n
The following company has the address
\n
of 1 Raf\ufb02es Quay, #23-01, One Raf\ufb02es
\n
Quay, 048583, Singapore
\n
Clifford Capital Holdings Pte. Ltd.
Investment Holding
\n
Company
Singapore
$1.00 Ordinary shares
9.9
\n
The following company has the address
\n
of 10 Marina Boulevard #08-08, Marina
\n
Bay, Financ
ial Centre, 018983, S
ingapore
\n
Verif
ied Impact Exchange Hold
ings Pte.
\n
Ltd
\n
Exchange offering liqu
id
ity
\n
of trade
\n
Singapore
SGD Ordinary shares
15.0
\n
$ Redeemable Convertible
\n
Preference shares
28.5
\n
The following company has the address
\n
of Victor
ia House, State House Avenue,
\n
Victor
ia, MAHE, Seychelles
\n
Seychelles International Mercantile
\n
Banking Corporation Lim
ited.
Commercial Bank
Seychelles
SCR1,000.00 Ordinary shares
22.0
\n
The following company has the address
\n
of Avenue de Tivol
i 2, 1007, Lausanne,
\n
Switzerland
\n
Metaco SA
Integrated infrastructure
\n
solutions
Switzerland
CHF 0.01 Preference A Shares
29.5
470
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
40. Related undertakings of the Group
continued
\n
Sign
i\ufb01cant
investment holdings and other related undertakings
\n
Name and registered address
Activ
ity
Place of Incorporation
Descript
ion of shares
\n
Proportion
\n
of shares
\n
held
\n
(%)
\n
The following company has the address
\n
of 1 Bartholomew Lane, London, EC2N
\n
2AX, United Kingdom
\n
Corrasi Covered Bonds (LM) Lim
ited
Liqu
idat
ion member
\n
(Bond holders)
United Kingdom
\u00a31.00 Ordinary
20.0
\n
The following company has the address
\n
of Intertrust Corporate Services
\n
(Cayman) Lim
ited, 190 Elg
in Avenue,
\n
George Town, Grand Cayman , KY1-
\n
9005, Cayman Islands
\n
ATSC Cayman Holdco Lim
ited
Investment holding
Cayman Islands
$0.01 Ordinary-A shares
5.2
\n
$0.01 Ordinary-B shares
100
\n
The following company has the address
\n
of 3, Floor 1, No.1, Shiner Wuxingca
iyuan,
\n
West Er Huan Rd, , Xi Shan Distr
ict,
\n
Kunming, Yunnan Province, PRC , China
\n
Yunnan Golden Shiner Property
\n
Development Co., Ltd.
Real Estate Developers
China
CNY1.00 Ordinary shares
37.5
\n
The following companies have the
\n
address of Unit 605-08, 6/F Wing On
\n
Centre, 111 Connaught Road, Central,
\n
Sheung Wan, Hong Kong
\n
Actis Temple Stay Holdings (HK) Lim
ited
Investment holding
Hong Kong
$ Class A Ordinary shares
39.6
\n
$ Class B Ordinary shares
39.6
\n
Actis Rivendell Holdings (HK) Lim
ited
Investment holding
Hong Kong
$ Class A Ordinary shares
39.6
\n
$ Class B Ordinary shares
39.6
\n
The following company has the address
\n
of 1221 A, Devika Tower, 12th Floor, , 6
\n
Nehru Place, New Delhi 110019, New
\n
Delhi, 110019, India
\n
Mikado Realtors Private Lim
ited
Other business activ
it
ies
India
INR10.00 Ordinary shares
26.0
\n
The following company has the address
\n
of 4thFloor, 274, Chital
ia House, Dr.
\n
Cawasji Hormusji Road, Dhob
i Talao,
\n
Mumbai City, Maharashtra, India 400
\n
002, Mumbai, 400 002, India
\n
Industrial Minerals and Chemical Co. Pvt.
\n
Ltd
Minerals and Chemical
India
INR100.00 Ordinary shares
26.0
\n
The following company has the address
\n
of Deloitte Anj
in Korea, 5F., One IFC, 23,
\n
Yoido-dong, Youngdeungpo-gu, Seoul,
\n
Korea, Republic of
\n
Ascenta III
Investment making
Korea
KRW Class B Equity Interest
31.0
\n
The following company has the address
\n
of 3 Jalan Pisang, c/o Watiga Trust Ltd,
\n
199070 Singapore
\n
SCIAIGF Liqu
idat
ing Trust
\n
1
\n
Investment Holding
\n
Company
Singapore
Interest in trust
43.9
\n
The following company has the address
\n
of 49, Sungei Kadut Avenue, #03-01
\n
S729673, Singapore
\n
Omni Centre Pte. Ltd.
Real Estate Owners &
\n
Developers
\n
Singapore
SGD Redeemable Convertible
\n
Preference shares
99.9
\n
The following company has the address
\n
of 251 Little Falls Drive, Wilm
ington, New
\n
Castle DE 19808, United States
\n
Paxata, Inc.
Data Analytics
United States
US$0.0001 Series C2 Preferred
\n
Stock
40.7
\n
US$0.0001 Series C3 Preferred
\n
Stock
8.91
471
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
40. Related undertakings of the Group
continued
\n
In liqu
idat
ion
\n
Subsid
iary Undertak
ings
\n
Name and registered address
Activ
ity
Place of Incorporation
Descript
ion of shares
\n
Proportion
\n
of shares
\n
held
\n
(%)
\n
The following company has the address
\n
of \u201cC/O Teneo Restructuring Lim
ited 156
\n
Great Charles Street Queensway
\n
Birm
ingham West M
idlands B3 3HN\u201d
\n
Standard Chartered Masterbrand
\n
Licens
ing L
im
ited
\n
To manage intellectual
\n
property for Group
United Kingdom
$1.00 Ordinary Shares
100
\n
The following companies have the
\n
address of Bucktrout House, Glategny
\n
Esplanade, St Peter Port, GY1 3HQ,
\n
Guernsey
\n
Birdsong Lim
ited
Fiduc
iary Serv
ices
Guernsey
\u00a31.00 Ordinary shares
100
\n
Nominees One Lim
ited
Fiduc
iary Serv
ices
Guernsey
\u00a31.00 Ordinary shares
100
\n
Nominees Two Lim
ited
Fiduc
iary Serv
ices
Guernsey
\u00a31.00 Ordinary shares
100
\n
Songbird Lim
ited
Fiduc
iary Serv
ices
Guernsey
\u00a31.00 Ordinary shares
100
\n
Standard Chartered Secretaries
\n
(Guernsey) Lim
ited
Fiduc
iary Serv
ices
Guernsey
\u00a31.00 Ordinary shares
100
\n
Standard Chartered Trust (Guernsey)
\n
Lim
ited
Fiduc
iary Serv
ices
Guernsey
\u00a31.00 Ordinary shares
100
\n
The following company has the address
\n
of 8/Floor, Gloucester Tower , The
\n
Landmark, 15 Queen\u2019s Road Central,
\n
Hong Kong
\n
Leopard Hong Kong Lim
ited
Corporate Finance &
\n
Advisory Services
Hong Kong
$ Ordinary shares
100
\n
The following company has the address
\n
of 30 Rue Schrobilgen, 2526, Luxembourg
\n
Standard Chartered Financ
ial Serv
ices
\n
(Luxembourg) S.A.
Banking services
Luxembourg
\u20ac25.00 Ordinary shares
100
\n
The following company has the address
\n
of Jiron Huascar 2055, Jesus Maria, Lima
\n
15072, Peru
\n
Banco Standard Chartered en
\n
Liqu
idac
ion
\n
Financ
ial counsell
ing
\n
services
Peru
$75.133 Ordinary shares
100
\n
The following company has the address
\n
of Luis Alberto de Herrera 1248, Torre II,
\n
Piso 11, Esc. 1111, Uruguay
\n
Standard Chartered Uruguay
\n
Representacion S.A.
Leasing Business
Uruguay
UYU1.00 Ordinary shares
100
\n
The following company has the address
\n
of C/O Teneo Financ
ial Adv
isory Lim
ited,
\n
156 Great Charles Street, Queensway,
\n
Birm
ingham, West M
idlands, B3 3HN,
\n
United Kingdom
\n
Standard Chartered Leasing (UK) 2
\n
Lim
ited
Investment Holding Entity
United Kingdom
$1.00 Ordinary shares
100
\n
The following company has the address
\n
of C/o WALKERS CORPORATE LIMITED,
\n
190 Elgin Avenue George Town Grand
\n
Cayman KY1-9008 , Cayman Islands
\n
Sirat Holdings Lim
ited
Leasing Business
Cayman Islands
$0.01 Ordinary shares
100
\n
The following company has the address
\n
of TMF Trust Labuan Lim
ited, Brumby
\n
Centre, Lot 42,, Jalan Muhibbah, 87000
\n
Labuan F.T., Malaysia
\n
Pembroke Leasing (Labuan) 3 Berhad
Investment Holding
\n
Company
Malaysia
$ Ordinary shares
100
472
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
Notes to the \ufb01nancial statements
\n
Name and registered address
Activ
ity
Place of Incorporation
Descript
ion of shares
\n
Proportion
\n
of shares
\n
held
\n
(%)
\n
The following company has the address
\n
of c/o Ocorian Corporate Services
\n
(Maurit
ius) Ltd, 6th Floor, Tower A, 1
\n
Cybercity, Ebene, 72201, Maurit
ius
\n
Standard Chartered Financ
ial Hold
ings
Investment Holding
\n
Company
Maurit
ius
$1.00 Ordinary shares
100
\n
The following company has the address
\n
of 142, Ahmadu Bello Way, Victor
ia
\n
Island, Lagos, 101241, Niger
ia
\n
Cherroots Niger
ia L
im
ited
Investment Holding
\n
Company
Niger
ia
NGN1.00 Ordinary Shares
100
\n
Liqu
idated/d
issolved/sold
\n
Subsid
iary Undertak
ings
\n
Name and registered address
Activ
ity
Place of Incorporation
Descript
ion of shares
\n
Proportion
\n
of shares
\n
held
\n
(%)
\n
The following companies have the
\n
address of Unit 605-08, 6/F Wing On
\n
Centre, 111 Connaught Road, Central,
\n
Sheung Wan, Hong Kong
\n
Actis Jack Holdings (HK) Lim
ited
Investment holding
Hong Kong
$ Class A Ordinary shares
39.6
\n
$ Class B Ordinary shares
39.6
\n
Actis Young City Holdings (HK) Lim
ited
Investment holding
Hong Kong
$ Class A Ordinary shares
39.6
\n
$ Class B Ordinary shares
39.6
\n
The following company has the address
\n
of 2 More London Rivers
ide, London SE1
\n
2JT, United Kingdom
\n
Bricks (M) LP1
Investment Holding
\n
Company
United Kingdom
Lim
ited Partnersh
ip interest
100
\n
The following company has the address
\n
of 26F, Fortune Financ
ial Centre, #5,
\n
Dong San Huan Zhong Lu, Chaoyang
\n
Distr
ict, Be
ijing, P. R. China.
\n
Standard Chartered Corporate Advisory
\n
Co. Ltd
\n
Corporate Finance &
\n
Advisory Services
China
$1.00 Ordinary shares
100
\n
The following company has the address
\n
of 13/F Standard Chartered Bank
\n
Build
ing, 4-4A Des Voeux Road Central,
\n
Hong Kong
\n
Standard Chartered Private Equity
\n
Managers (Hong Kong) Lim
ited
\n
Corporate Finance &
\n
Advisory Services
Hong Kong
HKD Ordinary shares
100
\n
The following company has the address
\n
of Vistra Corporate Services Centre,
\n
Ground Floor, NPF Build
ing, Beach Road,
\n
Apia, Samoa
\n
Standard Chartered Nominees (Western
\n
Samoa) Lim
ited
\n
Nominee Services
\n
Samoa
$1.00 Ordinary shares
100
\n
The following company has the address
\n
of \u201cC/O Teneo Restructuring Lim
ited 156
\n
Great Charles Street Queensway
\n
Birm
ingham West M
idlands B3 3HN\u201d
\n
Compass Estates Lim
ited
Investment holding
United Kingdom
\u00a31.00 Ordinary shares
100
\n
The following company has the address
\n
of 32 Molesworth Street, Dublin 2,
\n
D02Y512, Ireland
\n
Inishlynch Leasing Lim
ited
Leasing Business
Ireland
\u20ac1.00 Ordinary shares
100
\n
40. Related undertakings of the Group
continued
\n
In liqu
idat
ion
continued
\n
Subsid
iary Undertak
ings
continued
\n\n
473
Standard Chartered
\u2013 Annual Report 2022
\n
Financ
ial statements
\n
Name and registered address
Activ
ity
Place of Incorporation
Descript
ion of shares
\n
Proportion
\n
of shares
\n
held
\n
(%)
\n
The following company has the address
\n
of Menara Standard Chartered, 3rd
\n
Floor, Jl. Prof.Dr. Satrio no. 164, Setiabud
i,
\n
Jarkarta Selatan, Indonesia
\n
PT Solusi Cakra Indonesia (dalam
\n
liku
idas
i)
\n
Banking & Financ
ial
\n
Services
\n
Indonesia
IDR23,809,600.00 Ordinary
\n
shares
99.0
\n
The following company has the address
\n
of No. 157 \u2013 157 A, Jakarta Barat, 11130,
\n
Indonesia.
\n
PT. Price Solutions Indonesia (dalam
\n
liku
idas
i)
\n
Direct Sales/Collection
\n
Services
Indonesia
$100.00 Ordinary shares
100
\n
The following company has the address
\n
of Standard Chartered@Chiromo,
\n
Number 48, Westlands Road, P. O. Box
\n
30003 - 00100, Nairob
i, Kenya
\n
Standard Chartered Management
\n
Services Lim
ited
Investment Management
Kenya
KES20.00 Ordinary shares
100
\n
The following company has the address
\n
of M6-2701, West 27Fl, Suha-dong, 26,
\n
Eulji-ro 5-g
il, Jung-gu, Seoul, Korea,
\n
Republic of
\n
Resolution Alliance Korea Ltd
Investment Management
Korea, Republic of
KRW5,000.00 Ordinary shares
100
\n
The following company has the address
\n
of 8 Marina Boulevard, Level 27, Marina
\n
Bay Financ
ial Centre, Tower 1, 018981,
\n
Singapore
\n
Standard Chartered (2000) Lim
ited
Others
Singapore
SGD1.00 Ordinary shares
100
\n
The following company has the address
\n
of C/o IQ EQ Corporate Services
\n
(Maurit
ius) Ltd, 33 Ed
ith Cavell Street,
\n
Port Louis, 11324, Maurit
ius
\n
FAI Lim
ited
Investment Advisory
\n
services
Maurit
ius
$1.00 Ordinary shares
76.5
\n
The following company has the address
\n
of Standard Chartered Bank France, 32
\n
Rue de Monceau,75008, Paris, France
\n
Pembroke Lease France SAS
Leasing Business
France
\u20ac1.00 Ordinary shares
100
\n
The following company has the address
\n
of Level 26, Equatorial Plaza, Jalan Sultan
\n
Ismail, 50250 Kuala Lumpur, Malaysia
\n
Popular Ambience Sdn Bhd
To undertake investments
\n
in non-performing loans
Malaysia
RM Ordinary shares
100
\n
The following company has the address
\n
of 8/Floor, Gloucester Tower , The
\n
Landmark, 15 Queen\u2019s Road Central,
\n
Hong Kong
\n
Leopard Hong Kong Lim
ited
Holding Company
Hong Kong
$ Ordinary shares
100
\n
The following company has the address
\n
of Lot 6.05, Level 6, KPMG Tower, 8 First
\n
Avenue, Bandar Utama, 47800 Petaling
\n
Jaya, Selangor, Malaysia
\n
House Network SDN BHD
Admin
istrat
ion of shared
\n
ATM network
Malaysia
RM1.00 Ordinary shares
25.0", "dimensions": { "concept": "stan:DisclosureOfRelatedUndertakingsOfTheGroupExplanatoryTextBlock", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f113706": { "value": "1 Basinghall Avenue \nLondon, EC2V 5DD \nUnited Kingdom", "dimensions": { "concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } }, "f113710": { "value": "United Kingdom", "dimensions": { "concept": "ifrs-full:PrincipalPlaceOfBusiness", "language": "en", "entity": "scheme:U4LOSYZ7YG4W3S5F2G91", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00" } } } }