TIDMSTAN

RNS Number : 1155E

Standard Chartered PLC

26 October 2022

Standard Chartered PLC

3Q'22 Results

26 October 2022

Registered in England under company No. 966425

Registered Office: 1 Basinghall Avenue, London, EC2V 5DD, UK

Table of Contents

 
Performance highlights                                 1 
---------------------------------------------------- 
Statement of results                                   2 
---------------------------------------------------- 
Group Chief Financial Officer's review                 3 
---------------------------------------------------- 
Supplementary financial information                   12 
---------------------------------------------------- 
Underlying versus statutory results reconciliations   27 
---------------------------------------------------- 
Risk review                                           31 
---------------------------------------------------- 
Capital review                                        36 
---------------------------------------------------- 
Financial statements                                  41 
---------------------------------------------------- 
Other supplementary information                       46 
---------------------------------------------------- 
 

Unless another currency is specified, the word 'dollar' or symbol '$' in this document means US dollar and the word 'cent' or symbol 'c' means one-hundredth of one US dollar.

The information within this report is unaudited.

Unless the context requires, within this document, 'China' refers to the People's Republic of China and, for the purposes of this document only, excludes Hong Kong Special Administrative Region (Hong Kong), Macau Special Administrative Region (Macau) and Taiwan. 'Korea' or 'South Korea' refers to the Republic of Korea. Asia includes Australia, Bangladesh, Brunei, Cambodia, Mainland China, Hong Kong, India, Indonesia, Japan, Korea, Laos, Macau, Malaysia, Myanmar, Nepal, Philippines, Singapore, Sri Lanka, Taiwan, Thailand and Vietnam; Africa & Middle East (AME) includes Angola, Bahrain, Botswana, Cameroon, Cote d'Ivoire, Egypt, The Gambia, Ghana, Iraq, Jordan, Kenya, Lebanon, Mauritius, Nigeria, Oman, Pakistan, Qatar, Saudi Arabia, Sierra Leone, South Africa, Tanzania, the United Arab Emirates (UAE), Uganda, Zambia and Zimbabwe; and Europe & Americas (EA) includes Argentina, Brazil, Colombia, Falkland Islands, France, Germany, Ireland, Jersey, Poland, Sweden, Turkey, the UK and the US. Within the tables in this report, blank spaces indicate that the number is not disclosed, dashes indicate that the number is zero and nm stands for not meaningful.

Standard Chartered PLC is incorporated in England and Wales with limited liability. Standard Chartered PLC is headquartered in London. The Group's head office provides guidance on governance and regulatory standards. Standard Chartered PLC stock codes are: LSE STAN.LN and HKSE 02888.

Standard Chartered PLC - third quarter 2022 Results

All figures are presented on an underlying basis and comparisons are made to 2021 on a reported currency basis, unless otherwise stated. A reconciliation of restructuring and other items excluded from underlying results is set out on pages 27-30.

Bill Winters, Group Chief Executive, said:

"We have posted a strong set of results in the third quarter, with income up 22 per cent on a normalised basis and profit before tax up 35 per cent year on year. We also continue to make significant progress against the five strategic actions outlined in February, including the completion of the $500m share buy-back announced at the 2Q'22 results, taking total shareholder distributions announced this year to $1.4bn. We remain confident in the delivery of our 2024 financial targets"

Update on strategic actions

-- CCIB: drive improved returns: Income RoRWA of 6.3% year-to-date (YTD), up 140bps on FY'21; $10.5bn of RWA optimisation initiatives delivered so far this year

-- CPBB: transform profitability: Cost-to-income ratio of 69% YTD, down 4%pts from FY'21; $173m of gross expense savings delivered YTD; well on track to deliver $200m target in 2022

-- Seize China opportunity: China YTD on-shore income up 11% YoY at constant currency (ccy); off-shore income up 16% YoY

-- Cost discipline to create operational leverage: $330m of total gross structural cost savings delivered YTD

-- Substantial shareholder distributions: $1.4bn of total shareholder distributions announced so far this year

Other highlights

-- Ventures: Launched the Singapore digital bank, Trust, in partnership with FairPrice Group; 200k accounts already opened

-- Sustainability: Sustainable Finance income up 33% YoY; leading in product innovation with >30 product variants live

Selected information concerning 3Q'22 financial performance

-- Return on tangible equity of 10.1%, up 380bps year-on-year (YoY)

-- Income up 15% to $4.3bn, up 22% at ccy, on a normalised basis (excluding the debit valuation adjustment (DVA) and the 2021 IFRS9 interest income adjustment)

- Net interest income up 24% at ccy on a normalised basis

- Record third quarter in Financial Markets up 21%, at ccy on a normalised basis

- Wealth Management down 15% at ccy, with the largest market, Hong Kong also down 15% at ccy

- Net interest margin (NIM) up 8bps QoQ to 1.43%, due to rising interest rates partly offset by product mix change and hedges

-- Expenses increased 3% YoY to $2.7bn, or up 9% at ccy

- Increased investment spend, salary inflation and performance-related pay accruals

- Positive 10% income-to-cost jaws at ccy and excluding DVA; cost-to-income ratio down to 62% (3Q'21: 69%)

-- Credit impairment charge of $227m, up $120m YoY; up $160m QoQ

- Includes $130m for China CRE exposures and $96m from sovereign downgrades relating to Pakistan and Ghana

- Total management overlay now $204m; COVID-19 overlay down $39m to $51m and China CRE overlay up $27m to $153m

- High-risk assets down $2.0bn QoQ, mainly driven by a reduction in Early Alert accounts

- Loan-loss rate of 18bps year-to-date annualised

-- Underlying profit before tax up 35% at ccy to $1.4bn; statutory profit before tax up 43% at ccy to $1.4bn

-- The Group's balance sheet remains strong, highly liquid and well diversified

- Customer loans and advances up $5bn or 2% since 30.06.22; up 1% on an underlying basis

- Advances-to-deposit ratio 58.1% (30.06.22: 59.6%); liquidity coverage ratio 156% (30.06.22:142%)

-- Risk-weighted assets (RWA) of $252bn down $3bn since 30.06.22

- Credit RWA down $3bn, Market risk RWA broadly flat and no change to Operational risk RWA

-- The Group remains strongly capitalised

- CET1 ratio 13.7% (30.06.22: 13.9%); in the upper half of the 13 to 14% target

-- Earnings per share increased 10 cents or 43% to 33.1 cents

Outlook

Our performance this year has been strong, and the pace of economic recovery in many of our footprint markets is encouraging, notwithstanding increasing recessionary pressures in certain western markets. Consequently, for full year 2022:

-- Income (ex-DVA at ccy) is now expected to grow around 13%, in-line with the year-to-date growth

-- Full year average NIM is expected to be around 140bps

-- Expenses ex-UK bank levy are expected to be around $10.6bn

-- Credit impairment is expected to be slightly above the year-to-date annualised loan-loss rate of 18bps

-- We intend to operate dynamically within the full 13-14% CET1 target range

We now expect greater NIM progression to average around 165bps in 2023, which combined with continued strong business momentum and positive income-to-cost jaws, means we remain on-track to deliver our 10% RoTE target in 2024, if not earlier.

Page 1

Statement of results

 
                                                                3 months         3 months 
                                                          ended 30.09.22   ended 30.09.21  Change(1) 
                                                                $million         $million          % 
-------------------------------------------------------  ---------------  ---------------  --------- 
Underlying performance 
Operating income                                                   4,318            3,765         15 
Operating expenses (including UK bank levy)                      (2,659)          (2,594)        (3) 
Credit impairment                                                  (227)            (107)      (112) 
Other impairment                                                    (32)             (35)          9 
Profit from associates and joint ventures                             16               46       (65) 
Profit before taxation                                             1,416            1,075         32 
Profit/(loss) attributable to ordinary shareholders(2)               976              716         36 
Return on ordinary shareholders' tangible equity 
 (%)                                                                10.1              6.3     380bps 
Cost-to-income ratio (excluding bank levy) (%)                      61.6             68.9     730bps 
-------------------------------------------------------  ---------------  ---------------  --------- 
Statutory performance 
Operating income                                                   4,329            3,764         15 
Operating expenses                                               (2,696)          (2,647)        (2) 
Credit impairment                                                  (227)            (108)      (110) 
Other impairment                                                    (31)             (59)         47 
Profit from associates and joint ventures                             16               46       (65) 
Profit before taxation                                             1,391              996         40 
Taxation                                                           (313)            (229)       (37) 
Profit for the period                                              1,078              767         41 
Profit/(loss) attributable to parent company 
 shareholders                                                      1,087              763         42 
Profit/(loss) attributable to ordinary shareholders(2)               964              644         50 
Return on ordinary shareholders' tangible equity 
 (%)                                                                10.5              6.4     410bps 
Cost-to-income ratio (including bank levy) (%)                      62.3             70.3     800bps 
-------------------------------------------------------  ---------------  ---------------  --------- 
 
 
                                                       30.09.22    30.09.21   Change 
Balance sheet and capital                              $million    $million        % 
---------------------------------------------------  ----------  ----------  ------- 
Total assets                                            864,435     817,102        6 
Total equity                                             50,003      53,335      (6) 
Average tangible equity attributable to ordinary 
 shareholders(2)                                         36,569      39,948      (8) 
Loans and advances to customers                         298,390     302,493      (1) 
Customer accounts                                       447,259     453,260      (1) 
Risk-weighted assets                                    252,293     267,555      (6) 
Total capital                                            53,491      58,871      (9) 
Total capital (%)                                          21.2        22.0  (80)bps 
Common Equity Tier 1                                     34,504      39,167     (12) 
Common Equity Tier 1 ratio (%)                             13.7        14.6  (90)bps 
Net Interest Margin (%) (adjusted)                         1.43        1.23    20bps 
Advances-to-deposits ratio (%)(3)                          58.1        61.9    (3.8) 
Liquidity coverage ratio (%)                                156         145       11 
Leverage ratio (%)                                          4.8         5.1  (30)bps 
---------------------------------------------------  ----------  ----------  ------- 
Information per ordinary share                            Cents       Cents    Cents 
Earnings per share - underlying(4)                         33.1        23.1       10 
               - statutory(4)                              32.7        20.7       12 
Net asset value per share(5)                              1,433       1,468     (35) 
Tangible net asset value per share(5)                     1,243       1,294     (51) 
Number of ordinary shares at period end (millions)        2,905       3,078      (6) 
---------------------------------------------------  ----------  ----------  ------- 
 

1 Variance is better/(worse) other than assets, liabilities and risk-weighted assets. Change is percentage points difference between two points rather than percentage change for total capital ratio (%), Common Equity Tier 1 ratio (%), net interest margin (%), advances-to-deposits ratio (%), liquidity coverage ratio (%), leverage ratio (%). Change is cents difference between two points rather than percentage change for earnings per share, net asset value per share and tangible net asset value per share

2 Profit/(loss) attributable to ordinary shareholders is after the deduction of dividends payable to the holders of non-cumulative redeemable preference shares and Additional Tier 1 securities classified as equity

3 When calculating this ratio, total loans and advances to customers excludes reverse repurchase agreements and other similar secured lending, excludes approved balances held with central banks, confirmed as repayable at the point of stress and includes loans and advances to customers held at fair value through profit and loss. Total customer accounts include customer accounts held at fair value through profit or loss

4 Represents the underlying or statutory earnings divided by the basic weighted average number of shares

   5   Calculated on period end net asset value, tangible net asset value and number of shares 

Page 2

Group Chief Financial Officer's review

The Group delivered a strong performance in the third quarter of 2022

Summary of financial performance

 
                                                 Constant                       Constant                                   Constant 
                                                 currency                       currency                                   currency 
                     3Q'22       3Q'21  Change  change(1)       2Q'22  Change  change(1)      YTD'22      YTD'21  Change  change(1) 
                  $million    $million       %          %    $million       %          %    $million    $million       %          % 
--------------  ----------  ----------  ------             ----------  ------             ----------  ----------  ------ 
Net interest 
 income              1,933       1,735      11         19       1,852       4          7       5,575       5,110       9         14 
Other income         2,385       2,030      17         23       2,074      15         18       6,943       6,273      11         14 
--------------  ----------  ----------  ------  ---------  ----------  ------  ---------  ----------  ----------  ------  --------- 
Underlying 
 operating 
 income              4,318       3,765      15         21       3,926      10         13      12,518      11,383      10         14 
  Other 
   operating 
   expenses        (2,659)     (2,594)     (3)        (9)     (2,636)     (1)        (4)     (7,931)     (7,680)     (3)        (8) 
  UK bank levy           -           -   nm(3)      nm(3)           5   (100)      (100)           5         (6)     183        200 
Underlying 
 operating 
 expenses          (2,659)     (2,594)     (3)        (9)     (2,631)     (1)        (5)     (7,926)     (7,686)     (3)        (8) 
--------------  ----------  ----------  ------  ---------  ----------  ------  ---------  ----------  ----------  ------  --------- 
Underlying 
 operating 
 profit before 
 impairment 
 and taxation        1,659       1,171      42         47       1,295      28         30       4,592       3,697      24         27 
Credit 
 impairment          (227)       (107)   (112)      (147)        (67)   nm(3)      (194)       (494)        (60)   nm(3)      nm(3) 
Other 
 impairment           (32)        (35)       9         12         (1)   nm(3)      nm(3)        (34)        (60)      43         43 
Profit from 
 associates 
 and joint 
 ventures               16          46    (65)       (67)          90    (82)       (84)         169         180     (6)        (5) 
--------------  ----------  ----------  ------  ---------  ----------  ------  ---------  ----------  ----------  ------  --------- 
Underlying 
 profit 
 before 
 taxation            1,416       1,075      32         35       1,317       8         10       4,233       3,757      13         15 
Restructuring         (25)        (99)      75         76        (37)      32         35        (70)       (222)      68         69 
Other items              -          20   (100)      (100)           -   nm(3)      nm(3)           -          20   (100)      (100) 
--------------  ----------  ----------  ------  ---------  ----------  ------  ---------  ----------  ----------  ------  --------- 
Statutory 
 profit before 
 taxation            1,391         996      40         43       1,280       9         11       4,163       3,555      17         19 
Taxation             (313)       (229)    (37)       (52)       (371)      16          9       (997)       (860)    (16)       (23) 
--------------  ----------  ----------  ------  ---------  ----------  ------  ---------  ----------  ----------  ------  --------- 
Profit for the 
 period              1,078         767      41         41         909      19         19       3,166       2,695      17         18 
--------------  ----------  ----------  ------  ---------  ----------  ------  ---------  ----------  ----------  ------  --------- 
Net interest 
 margin 
 (%)(2)               1.43        1.23      20                   1.35       8                   1.36        1.23      13 
Underlying 
 return 
 on tangible 
 equity 
 (%)(2)               10.1         6.3     380                    8.9     120                   10.1         8.7     140 
Underlying 
 earnings 
 per share 
 (cents)              33.1        23.1      43                   28.2      17                   96.5        81.4      19 
--------------  ----------  ----------  ------  ---------  ----------  ------  ---------  ----------  ----------  ------  --------- 
 

1 Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods

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

   3      Not meaningful 

Statutory financial performance summary

 
                                              Constant                       Constant                                   Constant 
                                              currency                       currency                                   currency 
                  3Q'22       3Q'21  Change  change(1)       2Q'22  Change  change(1)      YTD'22      YTD'21  Change  change(1) 
               $million    $million       %          %    $million       %          %    $million    $million       %          % 
-----------  ----------  ----------  ------             ----------  ------             ----------  ----------  ------ 
Net 
 interest 
 income           1,932       1,733      11         19       1,850       4          7       5,570       5,102       9         14 
Other 
 income           2,397       2,031      18         23       2,083      15         18       6,984       6,290      11         15 
-----------  ----------  ----------  ------  ---------  ----------  ------  ---------  ----------  ----------  ------  --------- 
Statutory 
 operating 
 income           4,329       3,764      15         21       3,933      10         13      12,554      11,392      10         14 
Statutory 
 operating 
 expenses       (2,696)     (2,647)     (2)        (8)     (2,663)     (1)        (5)     (8,024)     (7,868)     (2)        (7) 
-----------  ----------  ----------  ------  ---------  ----------  ------  ---------  ----------  ----------  ------  --------- 
Statutory 
 operating 
 profit 
 before 
 impairment 
 and 
 taxation         1,633       1,117      46         51       1,270      29         30       4,530       3,524      29         32 
Credit 
 impairment       (227)       (108)   (110)      (145)        (66)   nm(3)      (194)       (490)        (57)   nm(3)      nm(3) 
Other 
 impairment        (31)        (59)      47         49         (9)   nm(3)      nm(3)        (46)        (99)      54         54 
Profit from 
 associates 
 and joint 
 ventures            16          46    (65)       (65)          85    (81)       (81)         169         187    (10)        (9) 
-----------  ----------  ----------  ------  ---------  ----------  ------  ---------  ----------  ----------  ------  --------- 
Statutory 
 profit 
 before 
 taxation         1,391         996      40         43       1,280       9         11       4,163       3,555      17         19 
Taxation          (313)       (229)    (37)       (52)       (371)      16          9       (997)       (860)    (16)       (23) 
-----------  ----------  ----------  ------  ---------  ----------  ------  ---------  ----------  ----------  ------  --------- 
Profit for 
 the period       1,078         767      41         41         909      19         19       3,166       2,695      17         18 
-----------  ----------  ----------  ------  ---------  ----------  ------  ---------  ----------  ----------  ------  --------- 
Net 
 interest 
 margin 
 (%)(2)            1.43        1.23      20                   1.35       8                   1.36        1.23      13 
Statutory 
 return on 
 tangible 
 equity 
 (%)(2)            10.5         6.4     410                    8.7     180                   10.1         7.9     220 
Statutory 
 earnings 
 per share 
 (cents)           32.7        20.7      58                   27.2      20                   94.8        75.6      25 
-----------  ----------  ----------  ------  ---------  ----------  ------  ---------  ----------  ----------  ------  --------- 
 

1 Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods

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

   3      Not meaningful 

Page 3

Group Chief Financial Officer's review continued

The Group delivered a strong performance in the third quarter of 2022, generating an underlying return on tangible equity of 10.1 per cent with underlying profit before tax increasing 32 per cent. Income grew 22 per cent on a constant currency basis and excluding normalisation adjustments, with a continued strong performance in Financial Markets, with Cash Management and Retail Deposits benefitting from rising interest rates, which resulted in the net interest margin increasing 8 basis points in the quarter. Loans and advances to customers increased 1 per cent on an underlying basis in the quarter. Expenses increased 9 per cent at constant currency, due to investment spend, salary inflation, and performance-related pay accruals. The credit impairment charges in the quarter of $227 million included further charges relating to the China Commercial Real Estate sector and the impact of sovereign-related downgrades. The Group remains well capitalised and highly liquid with a CET1 ratio of 13.7 per cent, an advances-to-deposits ratio of 58 per cent, and a liquidity coverage ratio of 156 per cent.

All commentary that follows is on an underlying basis and comparisons are made to the equivalent period in 2021 on a reported currency basis, unless otherwise stated.

-- Operating income increased 15 per cent, or 22 per cent on a constant currency basis, normalising for a $56 million positive movement in DVA and a non-repeat of the prior-year $64 million IFRS9 interest income catch-up adjustment (IFRS9 adjustment). A strong Financial Markets performance and an expansion in the net interest margin benefitting Cash Management and Retail Deposits was partly offset by lower Wealth Management income and negative Treasury income

-- Net interest income increased 11 per cent, or 24 per cent on a constant currency basis and excluding the IFRS9 adjustment. The net interest margin increased 23 per cent, or 27 basis points excluding the IFRS9 adjustment, offset in part by a year-on-year 7 basis points impact from hedges, as the Group took advantage of rising interest rates.

-- Other income increased 17 per cent, or 15 per cent excluding the positive impact of movements in DVA, with continued strong Financial Markets performance partly offset by lower Wealth Management income

-- Operating expenses were up 3 per cent, or up 9 per cent on a constant currency basis, reflecting the impact of inflation as well as an increase in performance-related pay accruals and headcount. Increased investment spend on transformational digital initiatives includes a double-digit percentage increase in amortisation charges. The Group generated a 10 per cent positive income-to-cost jaws at constant currency excluding DVA, while the cost-to-income ratio excluding the UK bank levy decreased 7 percentage points to 62 per cent

-- Credit impairment charges increased by $120 million to $227 million and were $160 million higher than in the prior quarter. There was a $130 million charge relating to the China Commercial Real Estate portfolio, including a $27 million increase in the management overlay, and a $96 million charge relating to the sovereign ratings downgrade of Ghanaian and Pakistani exposures. The year-to-date loan-loss rate annualises to 18 basis points

-- Other impairment was a $32 million charge reflecting the impact of a higher interest rate environment on the discount rate used to value the aviation lease portfolio

-- Profit from associates and joint ventures reduced $30 million to $16 million due to lower profits at China Bohai Bank

-- Charges relating to restructuring and other items decreased $74 million to $25 million, reflecting an increase in restructuring income and a non-repeat of prior-year impairment of property

-- Taxation was $313 million on a statutory basis, with an underlying year-to-date effective tax rate of 24.0 per cent compared to the prior-year rate of 23.5 per cent reflecting a change in the geographic mix of profits

-- Underlying return on tangible equity increased by 380 basis points to 10.1 per cent due to higher profits and lower tangible equity, reflecting shareholder distributions, including share buy-backs, and adverse movements in reserves due to movements in interest rates and currency translation

Page 4

Group Chief Financial Officer's review continued

Operating income by product

 
                                                    Constant                       Constant                                   Constant 
                                                    currency                       currency                                   currency 
                        3Q'22       3Q'21  Change  change(1)       2Q'22  Change  change(1)      YTD'22      YTD'21  Change  change(1) 
                     $million    $million       %          %    $million       %          %    $million    $million       %          % 
-----------------  ----------  ----------  ------             ----------  ------             ----------  ----------  ------ 
Transaction 
 Banking                1,082         734      47         55         835      30         32       2,657       2,156      23         28 
                   ----------  ----------  ------  ---------  ----------  ------  ---------  ----------  ----------  ------  --------- 
  Trade & Working 
   Capital(2,3)           344         389    (12)        (5)         343       -          4       1,049       1,099     (5)        (1) 
  Cash Management         738         345     114        124         492      50         52       1,608       1,057      52         57 
                   ----------  ----------  ------  ---------  ----------  ------  ---------  ----------  ----------  ------  --------- 
Financial 
 Markets(3)             1,540       1,311      17         22       1,373      12         15       4,636       3,887      19         22 
                   ----------  ----------  ------  ---------  ----------  ------  ---------  ----------  ----------  ------  --------- 
  Macro Trading           734         540      36         43         664      11         14       2,338       1,783      31         35 
  Credit 
   Markets(3)             440         516    (15)       (13)         374      18         20       1,274       1,429    (11)        (9) 
     Credit 
      Trading             156         144       8         12          87      79         83         353         377     (6)        (5) 
     Financing 
      Solutions 
      & 
      Issuance(3)         284         372    (24)       (22)         287     (1)          2         921       1,052    (12)       (11) 
     Structured 
      Finance(3)          116         159    (27)       (27)         102      14         15         312         387    (19)       (19) 
     Financing & 
      Securities 
      Services            195          97     101        113         198     (2)          1         537         290      85         90 
     DVA                   55         (1)   nm(4)      nm(4)          35      57         60         175         (2)   nm(4)      nm(4) 
                   ----------  ----------  ------  ---------  ----------  ------  ---------  ----------  ----------  ------  --------- 
Lending & 
 Portfolio 
 Management(2,3)          166         214    (22)       (20)         136      22         21         448         575    (22)       (20) 
Wealth Management         455         559    (19)       (15)         458     (1)          2       1,443       1,759    (18)       (16) 
Retail Products         1,109         828      34         44         955      16         19       2,913       2,523      15         22 
                   ----------  ----------  ------  ---------  ----------  ------  ---------  ----------  ----------  ------  --------- 
  CCPL & other 
   unsecured 
   lending                301         316     (5)          3         313     (4)        (1)         919         956     (4)          1 
  Deposits                625         205   nm(4)      nm(4)         363      72         76       1,236         647      91        104 
  Mortgage & Auto         141         260    (46)       (41)         235    (40)       (37)         623         775    (20)       (15) 
  Other Retail 
   Products                42          47    (11)        (7)          44     (5)        (4)         135         145     (7)        (4) 
                   ----------  ----------  ------  ---------  ----------  ------  ---------  ----------  ----------  ------  --------- 
Treasury                  (4)         149   (103)       (98)         205   (102)       (99)         518         543     (5)          - 
Other(3)                 (30)        (30)       -         47        (36)      17         50        (97)        (60)    (62)          6 
-----------------  ----------  ----------  ------  ---------  ----------  ------  ---------  ----------  ----------  ------  --------- 
Total underlying 
 operating 
 income                 4,318       3,765      15         21       3,926      10         13      12,518      11,383      10         14 
-----------------  ----------  ----------  ------  ---------  ----------  ------  ---------  ----------  ----------  ------  --------- 
 

1 Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods

2 Following a reorganisation, there has been a reclassification of balances from Lending & Portfolio Management into Trade & Working Capital including prior period numbers. Prior periods have been re-presented and there is no change in the total income

3 Income related to Group Special Asset Management, the Group's specialist recovery unit previously reported in Other products has been allocated to the relevant products. Prior periods have been re-presented and there is no change in total income

   4      Not meaningful 

Transaction Banking income increased 47 per cent. Cash Management income increased 114 per cent reflecting strong pricing discipline to take advantage of a rising interest rate environment. Trade & Working Capital decreased 12 per cent or 4 per cent on a constant currency basis excluding the IFRS9 adjustment, with balance sheet growth offset by margin compression. The margin compression reflects greater distribution activities and a shift in product mix towards lower margin but more RWA-efficient products.

Financial Markets income increased 17 per cent and was up 21 per cent on a constant currency basis and excluding normalisation adjustments. Macro Trading delivered another strong quarter, up 36 per cent, benefitting from wider bid-offer spreads, trading gains from elevated volatility, and increased client flow on the back of rising interest rates and demand for energy hedging. Credit Markets income decreased 15 per cent, with Financing Solutions & Issuance impacted by lower capital market issuances and non-repeat of the IFRS9 adjustment. Structured Finance income declined 27 per cent due to lower Aviation Finance income, while Financing & Security Services income doubled, including a further $27 million from gains on mark to market liabilities, and a 17 per cent increase in Securities Services income on the back of rising interest rates.

Lending and Portfolio Management income decreased 22 per cent due to the impact of the IFRS9 adjustment and increased cost of funds.

Wealth Management income declined 19 per cent as major equity markets remained subdued across the footprint reducing transaction volumes, as well as from the impact of COVID-19 restrictions in key markets. Bancassurance income was down 15 per cent due to continued COVID-19 related restrictions while Wealth Management secured lending income nearly halved on the back of client deleveraging.

Retail Products income increased 34 per cent and was 44 per cent higher on a constant currency basis. Deposit income more than tripled due to active passthrough rate management in a rising interest rate environment, partly offset by migration from CASA to time deposits. On a constant currency basis, Mortgages & Auto income decreased 41 per cent due to margin compression as mortgages in Hong Kong reached the Best Lending Rate cap. Credit Cards & Personal Loans income decreased 5 per cent but was up 3 per cent on a constant currency basis reflecting a growth in credit card balances and increased fee income.

Treasury income was a $4 million loss in the quarter primarily due to the $97 million loss from structural and short-term hedges, which offset increased yields on the remainder of the Treasury portfolio and mark-to-market gains from FX swaps.

Page 5

Group Chief Financial Officer's review continued

Profit before tax by client segment and geographic region

 
                                                 Constant                       Constant                                   Constant 
                                                 currency                       currency                                   currency 
                     3Q'22       3Q'21  Change  change(2)       2Q'22  Change  change(2)      YTD'22      YTD'21  Change  change(2) 
                  $million    $million       %          %    $million       %          %    $million    $million       %          % 
--------------  ----------  ----------  ------             ----------  ------             ----------  ----------  ------ 
Corporate, 
 Commercial 
 & 
 Institutional 
 Banking             1,285         868      48         53         868      48         51       3,252       2,689      21         24 
Consumer, 
 Private 
 & Business 
 Banking(1)            478         293      63         75         348      37         41       1,198       1,146       5          9 
Ventures(1)           (85)        (62)    (37)       (41)        (74)    (15)       (18)       (236)       (185)    (28)       (30) 
Central & 
 other items 
 (segment)(1)        (262)        (24)   nm(3)      nm(3)         175   nm(3)      nm(3)          19         107    (82)       (94) 
--------------  ----------  ----------  ------  ---------  ----------  ------  ---------  ----------  ----------  ------  --------- 
Underlying 
 profit 
 before 
 taxation            1,416       1,075      32         35       1,317       8         10       4,233       3,757      13         15 
--------------  ----------  ----------  ------  ---------  ----------  ------  ---------  ----------  ----------  ------  --------- 
Asia                 1,063         927      15         19         955      11         15       2,925       3,166     (8)        (5) 
Africa & 
 Middle East           163         222    (27)       (11)         279    (42)       (34)         744         697       7         14 
Europe & 
 Americas              293         161      82         92         192      53         54         997         498     100        103 
Central & 
 other items 
 (region)            (103)       (235)      56         38       (109)       6       (21)       (433)       (604)      28         18 
--------------  ----------  ----------  ------  ---------  ----------  ------  ---------  ----------  ----------  ------  --------- 
Underlying 
 profit 
 before 
 taxation            1,416       1,075      32         35       1,317       8         10       4,233       3,757      13         15 
--------------  ----------  ----------  ------  ---------  ----------  ------  ---------  ----------  ----------  ------  --------- 
 

1 Following the increased strategic importance and reporting of Ventures to management, this has been established as a separate operating segment in 2022. Prior periods have been restated

2 Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods

   3      Not meaningful 

Corporate, Commercial & Institutional Banking profit increased 48 per cent, or 42 per cent excluding DVA. Income grew 21 per cent excluding DVA with Cash Management benefitting from rising interest rates and strong Financial Markets activity partly offset by 3 per cent higher expenses and a $58 million increase in credit impairments.

Consumer, Private & Business Banking profit increased 75 per cent on a constant currency basis, with income up 18 per cent as the benefit from higher interest rates was partly offset by subdued Wealth Management. Expenses increased 3 per cent while credit impairments were 24 per cent higher.

Ventures losses increased by over a third to $85 million, reflecting the Group's continued investment in transformational digital initiatives with expenses increasing 45 per cent, while income was $10 million in the quarter compared to zero in the same quarter last year.

Central & other items (segment) recorded a loss of $262 million with an income loss of $37 million reflecting the negative impact from hedges and lower profit share from China Bohai Bank. Expenses increased 15 per cent while credit impairments were $45 million higher.

Asia profits increased 19 per cent on a constant currency basis as income grew 19 per cent, partly offset by 9 per cent growth in expenses with credit impairments increasing by $109 million and China Bohai Bank profit share lower by $25 million.

Africa & Middle East profits decreased 11 per cent on a constant currency basis as impairment charges have more than doubled reflecting the impact of sovereign downgrades. Income increased 8 per cent which was partly offset by expenses increasing 10 per cent.

Europe & Americas profit increased 82 per cent as income grew 23 per cent, or 17 per cent excluding positive movements in DVA, due to strong Financial Markets and Cash Management performance partly offset by losses in Treasury. Expenses increased 7 per cent while there was an increase in the credit impairment release.

Central & other items (region) recorded a loss of $103 million, which is less than half the loss in the same quarter in 2021, with a $85 million increase in income and $35 million lower expenses.

Page 6

Group Chief Financial Officer's review continued

Adjusted net interest income and margin

 
                                3Q'22       3Q'21  Change(1)       2Q'22  Change(1)      YTD'22      YTD'21  Change(1) 
                             $million    $million          %    $million          %    $million    $million          % 
-------------------------  ----------  ----------             ----------             ----------  ---------- 
Adjusted net interest 
 income(2)                      2,023       1,732         17       1,888          7       5,720       5,107         12 
Average interest-earning 
 assets                       562,509     557,416          1     561,493          -     564,382     557,283          1 
Average interest-bearing 
 liabilities                  522,641     512,406          2     524,273          -     525,600     513,333          2 
-------------------------  ----------  ----------  ---------  ----------  ---------  ----------  ----------  --------- 
 
Gross yield (%)(3)               2.88        1.84        104        2.21         67        2.34        1.85         49 
Rate paid (%)(3)                 1.57        0.66         91        0.92         65        1.06        0.68         38 
Net yield (%)(3)                 1.31        1.18         13        1.29          2        1.28        1.17         11 
Net interest margin 
 (%)(3,4)                        1.43        1.23         20        1.35          8        1.36        1.23         13 
-------------------------  ----------  ----------  ---------  ----------  ---------  ----------  ----------  --------- 
 
   1      Variance is better/(worse) other than assets and liabilities which is increase/(decrease) 

2 Adjusted net interest income is statutory net interest income less funding costs for the trading book and financial guarantee fees on interest-earning assets

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

   4      Adjusted net interest income divided by average interest-earning assets, annualised 

Adjusted net interest income increased 17 per cent due to a 19 per cent increase in the net interest margin which averaged 143 basis points in the quarter, increasing 27 basis points year-on-year excluding the IFRS9 adjustment, and 8 basis points compared to the prior quarter:

-- Average interest-earning assets were flat in the quarter with underlying asset growth offset by risk-weight asset optimisation actions and currency translation. Gross yields increased 67 basis points compared with the prior quarter due the impact of rising interest rates on customer loan pricing and on Treasury portfolio yields partly offset by a 11 basis point quarter-on-quarter impact from hedges

-- Average interest-bearing liabilities were flat in the quarter. The rate paid on liabilities increased 65 basis points compared with the average in the prior quarter reflecting the impact of interest rate movements and migration from CASA to time deposits

Credit risk summary

Income statement

 
                                3Q'22       3Q'21  Change(1)       2Q'22  Change(1)      YTD'22      YTD'21  Change(1) 
                             $million    $million          %    $million          %    $million    $million          % 
-------------------------  ----------  ----------  ---------  ----------  ---------  ----------  ----------  --------- 
Total credit impairment 
 charge/(release)                 227         107        112          67        239         494          60        723 
  Of which stage 1 and 2          178          30        493          71        151         168        (75)      (324) 
  Of which stage 3                 49          77       (36)         (4)    (1,325)         326         135        141 
-------------------------  ----------  ----------  ---------  ----------  ---------  ----------  ----------  --------- 
 

1 Variance is increase/(decrease) comparing current reporting period to prior reporting periods

Page 7

Group Chief Financial Officer's review continued

Balance sheet

 
                                         30.09.22    30.06.22  Change(1)    31.12.21  Change(1)    30.09.21  Change(1) 
                                         $million    $million          %    $million          %    $million          % 
-------------------------------------  ----------  ----------  ---------  ----------  ---------  ----------  --------- 
Gross loans and advances to 
 customers(2)                             303,538     298,728          2     304,122          -     308,083        (1) 
                                       ----------  ----------  ---------  ----------  ---------  ----------  --------- 
  Of which stage 1                        284,877     279,136          2     279,178          2     284,140          - 
  Of which stage 2                         11,460      12,539        (9)      16,849       (32)      15,759       (27) 
  Of which stage 3                          7,201       7,053          2       8,095       (11)       8,184       (12) 
                                       ----------  ----------  ---------  ----------  ---------  ----------  --------- 
 
Expected credit loss provisions           (5,148)     (5,220)        (1)     (5,654)        (9)     (5,590)        (8) 
                                       ----------  ----------  ---------  ----------  ---------  ----------  --------- 
  Of which stage 1                          (497)       (502)        (1)       (473)          5       (411)         21 
  Of which stage 2                          (434)       (385)         13       (524)       (17)       (535)       (19) 
  Of which stage 3                        (4,217)     (4,333)        (3)     (4,657)        (9)     (4,644)        (9) 
                                       ----------  ----------  ---------  ----------  ---------  ----------  --------- 
 
Net loans and advances to customers       298,390     293,508          2     298,468          -     302,493        (1) 
                                       ----------  ----------  ---------  ----------  ---------  ----------  --------- 
  Of which stage 1                        284,380     278,634          2     278,705          2     283,729          - 
  Of which stage 2                         11,026      12,154        (9)      16,325       (32)      15,224       (28) 
  Of which stage 3                          2,984       2,720         10       3,438       (13)       3,540       (16) 
                                       ----------  ----------  ---------  ----------  ---------  ----------  --------- 
 
Cover ratio of stage 3 before/after          59 /        61 /      (2) /        58 /                   57 / 
 collateral (%)(3)                             77          80        (3)          75      1 / 2          77      2 / 0 
Credit grade 12 accounts ($million)         1,140         835         37       1,730       (34)       2,175       (48) 
Early alerts ($million)                     4,957       7,524       (34)       5,534       (10)       7,478       (34) 
Investment grade corporate exposures 
 (%)(3)                                        75          71          4          69          6          68          7 
-------------------------------------  ----------  ----------  ---------  ----------  ---------  ----------  --------- 
 

1 Variance is increase/(decrease) comparing current reporting period to prior reporting periods

2 Includes reverse repurchase agreements and other similar secured lending held at amortised cost of $18,032 million at 30 September 2022, $7,894 million at 30 June 2022, $7,331 million at 31 December 2021 and $8,836 million at 30 September 2021

3 Change is the percentage points difference between the two points rather than the percentage change

Asset quality remained resilient in the third quarter, despite a year-on-year increase in the credit impairment charge. However, the Group continues to remain alert to a volatile and challenging external environment including the pressures in the China Commercial Real Estate sector, continued impact of COVID-19 in a reducing number of key markets, commodity price volatility and the impact of the Russia/Ukraine war. This war in part contributed to both commodity price volatility and the accelerated trajectory of inflation and interest rate rises across our footprint, which in turn have driven a sustained appreciation of the US dollar versus the majority of developed and emerging market currencies. These factors have led to increased sovereign credit stress in a handful of our markets.

Credit impairment was a $227 million charge in the quarter, a $120 million increase, and represents an annualised year-to-date loan-loss rate of 18 basis points which is below the Group's medium-term guidance of 30-35 basis points.

The Stage 1 and 2 impairment charge of $178 million includes $96 million relating to the sovereign downgrade of Pakistan and Ghana and an additional $14 million modelled impairment charges relating to the China Commercial Real Estate sector. There was a net $12 million release from the management overlay; with a $39 million release in the element relating to COVID-19, while the element relating to China Commercial Real Estate sector increased by $27 million. The management overlay totals $204 million as at 30 September 2022, with the COVID-19 element totalling $51 million and $153 million relating to the China Commercial Real Estate sector.

Stage 3 impairments of $49 million include $89 million relating to China Commercial Real Estate exposures and higher charge-offs in Consumer, Private and Business Banking partly offset by releases in Corporate, Commercial & Institutional Banking.

Gross Stage 3 loans and advances to customers of $7.2 billion were 2 per cent higher compared to 30 June 2022 primarily due to the downgrade of select China Commercial Real Estate clients and the sovereign ratings downgrade of Sri Lankan local currency exposures. These credit-impaired loans represented 2.4 per cent of gross loans and advances, an increase of 1 basis points compared to 30 June 2022.

The Stage 3 cover ratio of 59 per cent decreased 2 percentage points compared with the position as at 30 June 2022, and the cover ratio post collateral of 77 per cent decreased by 3 percentage points, with both ratios decreasing due to lower coverage on new inflows into Stage 3.

Credit grade 12 balances have increased 37 per cent since 30 June 2022 reflecting the impact of the sovereign ratings downgrade of Ghanaian exposures into credit grade 12 as well as credit deterioration of select China Commercial Real Estate clients. This is partly offset by outflows into Stage 3 of Sri Lankan local currency exposures and specific China Commercial Real Estate exposures.

Early Alert accounts of $5.0 billion have decreased by $2.6 billion since 30 June 2022, due to client regularisations out of Early Alert and downgrades into credit grade 12. The Group is continuing to carefully monitor its exposures in vulnerable sectors and select markets, given the unusual stresses caused by the currently challenging macro-economic environment.

The proportion of investment grade corporate exposures has increased 4 percentage points since 30 June 2022 to 75 per cent, partly as a result of the increase in reverse repurchase agreement balances in the quarter.

Page 8

Group Chief Financial Officer's review continued

Restructuring, goodwill impairment and other items

 
                            3Q'22                                3Q'21                                2Q'22 
-----------  -----------------------------------  -----------------------------------  ----------------------------------- 
                              Goodwill     Other                   Goodwill     Other                   Goodwill     Other 
             Restructuring  Impairment     items  Restructuring  Impairment     items  Restructuring  Impairment     items 
                  $million    $million  $million       $million    $million  $million       $million    $million  $million 
-----------  -------------  ----------  --------  -------------  ----------  --------  -------------  ----------  -------- 
Operating 
 income                 11           -         -           (21)           -        20              7           -         - 
Operating 
 expenses             (37)           -         -           (53)           -         -           (32)           -         - 
Credit 
 impairment              -           -         -            (1)           -         -              1           -         - 
Other 
 impairment              1           -         -           (24)           -         -            (8)           -         - 
Profit from 
 associates 
 and joint 
 ventures                -           -         -              -           -         -            (5)           -         - 
-----------  -------------  ----------  --------  -------------  ----------  --------  -------------  ----------  -------- 
Loss before 
 taxation             (25)           -         -           (99)           -        20           (37)           -         - 
-----------  -------------  ----------  --------  -------------  ----------  --------  -------------  ----------  -------- 
 

The Group's statutory performance is adjusted for profits or losses of a capital nature, amounts consequent to investment transactions driven by strategic intent, other infrequent and/or exceptional transactions that are significant or material in the context of the Group's normal business earnings for the period and items which management and investors would ordinarily identify separately when assessing underlying performance period-by period.

Restructuring charges of $25 million primarily reflect expenses relating to redundancies partly offset by income from the Principal Finance and Ship Leasing portfolios.

The Group has announced the exit of seven markets in the Africa and Middle East region and will focus solely on the Corporate, Commercial & Institutional Banking segment in two more. It is expected that the results from the markets and businesses being exited will be reported in restructuring from 1 January 2023.

Balance sheet and liquidity

 
                                      30.09.22    30.06.22  Change    31.12.21  Change(1)    30.09.21  Change(1) 
                                      $million    $million       %    $million          %    $million          % 
----------------------------------  ----------  ----------  ------  ----------  ---------  ----------  --------- 
Assets 
Loans and advances to banks             43,315      36,201      20      44,383        (2)      45,754        (5) 
Loans and advances to customers        298,390     293,508       2     298,468          -     302,493        (1) 
Other assets                           522,730     506,208       3     484,967          8     468,855         11 
----------------------------------  ----------  ----------  ------  ----------  ---------  ----------  --------- 
Total assets                           864,435     835,917       3     827,818          4     817,102          6 
----------------------------------  ----------  ----------  ------  ----------  ---------  ----------  --------- 
Liabilities 
Deposits by banks                       27,728      31,173    (11)      30,041        (8)      34,480       (20) 
Customer accounts                      447,259     453,742     (1)     474,570        (6)     453,260        (1) 
Other liabilities                      339,445     301,310      13     270,571         25     276,027         23 
----------------------------------  ----------  ----------  ------  ----------  ---------  ----------  --------- 
Total liabilities                      814,432     786,225       4     775,182          5     763,767          7 
----------------------------------  ----------  ----------  ------  ----------  ---------  ----------  --------- 
Equity                                  50,003      49,692       1      52,636        (5)      53,335        (6) 
----------------------------------  ----------  ----------  ------  ----------  ---------  ----------  --------- 
Total equity and liabilities           864,435     835,917       3     827,818          4     817,102          6 
----------------------------------  ----------  ----------  ------  ----------  ---------  ----------  --------- 
 
Advances-to-deposits ratio (%)(2)        58.1%       59.6%               59.1%                  61.9% 
Liquidity coverage ratio (%)              156%        142%                143%                   145% 
----------------------------------  ----------  ----------  ------  ----------  ---------  ----------  --------- 
 
   1      Variance is increase/(decrease)comparing current reporting period to prior reporting periods 

2 The Group now excludes $21,683 million held with central banks (30.06.22: $16,918 million, 31.12.21: $15,168 million, 30.09.21: $16,986 million) that has been confirmed as repayable at the point of stress

The Group's balance sheet remains strong, liquid and well diversified:

-- Loans and advances to banks increased 20 per cent or by $7 billion from 30 June 2022 to $43 billion reflecting an increase in money market loans and Financial Institutions Trade loans

-- Loans and advances to customers grew 2 per cent from 30 June 2022 to $298 billion with a $10 billion increase in reverse repurchase agreements held to collect in the quarter. There was underlying growth of $2 billion (1 per cent) in the quarter, primarily in Trade, excluding the increase in reverse repurchase agreements and central bank placements, as well as a $2 billion reduction from risk-weight asset optimisation actions and the impact of currency translation which reduced balances by $7 billion

-- Customer accounts of $447 billion decreased 1 per cent from 30 June 2022 but increased 1 per cent excluding the impact of currency translation

-- Other assets increased 3 per cent in the third quarter of 2022 with increased derivative balances partly offset by reductions in investment securities and unsettled trade balances.

-- Other liabilities increased 13 per cent with increased derivative liabilities and repurchase agreements

Page 9

Group Chief Financial Officer's review continued

The advances-to-deposits ratio declined to 58.1 per cent from 59.6 per cent at 30 June 2022. The point-in-time liquidity coverage ratio remains well above the minimum regulatory requirement of 100 per cent at 156 per cent, increasing 14 percentage points in the quarter due to higher medium-term and structured note issuance supporting a reduction in shorter term wholesale funding and some period end inflows of corporate term deposits in some markets.

Risk-weighted assets

 
                     30.09.22    30.06.22  Change(1)    31.12.21  Change(1)    30.09.21  Change(1) 
                     $million    $million          %    $million          %    $million          % 
-----------------  ----------  ----------  ---------  ----------  ---------  ----------  --------- 
By risk type 
Credit risk           202,523     205,179        (1)     219,588        (8)     219,628        (8) 
Operational risk       27,177      27,177          -      27,116          -      27,116          - 
Market risk            22,593      22,726        (1)      24,529        (8)      20,811          9 
-----------------  ----------  ----------  ---------  ----------  ---------  ----------  --------- 
Total RWAs            252,293     255,082        (1)     271,233        (7)     267,555        (6) 
-----------------  ----------  ----------  ---------  ----------  ---------  ----------  --------- 
 

1 Variance is increase/(decrease) comparing current reporting period to prior reporting periods

Total risk-weighted assets (RWAs) of $252.3billion decreased 1 per cent or $2.8 billion from 30 June 2022:

-- Credit Risk RWA decreased by $2.7 billion in the third quarter to $202.5 billion. There was a $2.9 billion increase from negative credit migration reflecting the impact of sovereign downgrades and a $4.0 billion increase from a combination of asset growth and mix. This was more than offset by a $5.6 billion reduction from currency translation, a further $3.6 billion reduction in the Corporate, Commercial & Institutional Banking low-returning portfolio targeted for optimisation and $0.5 billion from other RWA efficiency actions

   --       Operational Risk RWA was flat at $27.2 billion 
   --       Market Risk RWA decreased $0.1 billion to $22.6 billion 

Capital base and ratios

 
                                    30.09.22    30.06.22  Change(1)    31.12.21  Change(1)    30.09.21  Change(1) 
                                    $million    $million          %    $million          %    $million          % 
--------------------------------  ----------  ----------  ---------  ----------  ---------  ----------  --------- 
CET1 capital                          34,504      35,373        (2)      38,362       (10)      39,167       (12) 
Additional Tier 1 capital (AT1)        6,485       5,244         24       6,791        (5)       6,791        (5) 
--------------------------------  ----------  ----------  ---------  ----------  ---------  ----------  --------- 
Tier 1 capital                        40,989      40,617          1      45,153        (9)      45,958       (11) 
Tier 2 capital                        12,502      13,020        (4)      12,491          -      12,913       (13) 
--------------------------------  ----------  ----------  ---------  ----------  ---------  ----------  --------- 
Total capital                         53,491      53,637          -      57,644        (7)      58,871        (9) 
--------------------------------  ----------  ----------  ---------  ----------  ---------  ----------  --------- 
CET1 capital ratio (%)(2)               13.7        13.9      (0.2)        14.1      (0.4)        14.6      (0.9) 
Total capital ratio (%)(2)              21.2        21.0        0.2        21.3      (0.1)        22.0      (0.8) 
Leverage ratio (%)(2)                    4.8         4.5        0.3         4.9      (0.1)         5.1      (0.3) 
--------------------------------  ----------  ----------  ---------  ----------  ---------  ----------  --------- 
 

1 Variance is increase/(decrease) comparing current reporting period to prior reporting periods

   2      Change is percentage points difference between two points rather than percentage change 

The Group's CET1 ratio of 13.7 per cent was 19 basis points lower than at 30 June 2022. The CET1 ratio remains 3.5 percentage points above the Group's regulatory minimum of 10.2 per cent and in the upper half of the 13 to 14 per cent medium-term target range.

As of 30 September 2022, the Group was partway through the $500 million share buyback programme it announced on 1st August 2022 and had spent $432 million purchasing 63 million ordinary shares, reducing the share count by approximately 2 per cent. Even though the share buyback was still ongoing on 30 September 2022, the entire $500 million is deducted from CET1 in the period, reducing the ratio by 20 basis points.

The Group is accruing a foreseeable dividend in respect of the final 2022 ordinary share dividend in the third quarter. This is not an indication of the Group's final 2022 ordinary share dividend, which will be proposed by the Board at the presentation of the 2022 full year results. The increase in the foreseeable dividend for ordinary dividend and AT1 coupons reduced the CET1 ratio by 18 basis points

The CET1 ratio was reduced by a further 11 basis points, with 3 basis points from a reduction in reserves mainly relating to a reversal of prior year unrealised gains on debt securities as a result of higher market yields, and 8 basis points from movements in FX reducing both the translation reserve and RWAs. The Group has reduced its sensitivity to higher market yields as a result of hedging and other mitigation strategies.

Excluding the impact of currency translation, RWAs increased by an underlying $2.6 billion during the quarter, reducing the CET1 ratio by 14 basis points

The above CET1 ratio headwinds were partly offset by 44 basis points uplift from profit accretion in the quarter.

The Group's leverage ratio of 4.8 per cent is 22 basis points higher than as at 30 June 2022. This reflects increased Tier 1 capital from a $1.25 billion issuance of AT1 balances as well as decreased leverage exposures driven by leverage optimisation initiatives. The Group's leverage ratio remains significantly above its minimum requirement of 3.7 per cent.

Page 10

Group Chief Financial Officer's review continued

Outlook

Our performance this year has been strong, and the pace of economic recovery in many of our footprint markets is encouraging, notwithstanding increasing recessionary pressures in certain western markets. Consequently, for full year 2022:

-- Income (ex-DVA at ccy) is now expected to grow around 13 per cent, in-line with the year-to-date growth

   --       Full year average net interest margin is expected to be around 140 basis points 
   --       Expenses ex-UK bank levy are expected to be around $10.6 billion 

-- Credit impairment is expected to be slightly above the year-to-date annualised loan-loss rate of 18 basis points

   --       We intend to operate dynamically within the full 13 to 14 per cent CET1 target range 

We now expect greater net interest margin progression to average around 165 basis points in 2023, which combined with continued strong business momentum and positive income-to-cost jaws, means we remain on-track to deliver our 10 per cent RoTE target in 2024, if not earlier.

Andy Halford

Group Chief Financial Officer

26 October 2022

Page 11

Supplementary financial information

Underlying performance by client segment

 
                                                                   3Q'22 
--------------------------------------  ------------------------------------------------------------ 
                                                          Consumer, 
                                              Corporate,    Private               Central 
                                              Commercial          &                     & 
                                         & Institutional   Business                 other 
                                                 Banking    Banking   Ventures      items      Total 
                                                $million   $million   $million   $million   $million 
--------------------------------------  ----------------  ---------  ---------  ---------  --------- 
Operating income                                   2,745      1,600         10       (37)      4,318 
                                        ----------------  ---------  ---------  ---------  --------- 
  External                                         2,405      1,287         10        616      4,318 
  Inter-segment                                      340        313          -      (653)          - 
                                        ----------------  ---------  ---------  ---------  --------- 
Operating expenses                               (1,347)    (1,035)       (87)      (190)    (2,659) 
--------------------------------------  ----------------  ---------  ---------  ---------  --------- 
Operating profit/(loss) before 
 impairment losses and taxation                    1,398        565       (77)      (227)      1,659 
Credit impairment                                   (82)       (87)        (4)       (54)      (227) 
Other impairment                                    (31)          -          -        (1)       (32) 
Profit from associates and joint 
 ventures                                              -          -        (4)         20         16 
--------------------------------------  ----------------  ---------  ---------  ---------  --------- 
Underlying profit/(loss) before 
 taxation                                          1,285        478       (85)      (262)      1,416 
Restructuring                                          2       (22)          -        (5)       (25) 
Other items                                            -          -          -          -          - 
--------------------------------------  ----------------  ---------  ---------  ---------  --------- 
Statutory profit/(loss) before 
 taxation                                          1,287        456       (85)      (267)      1,391 
--------------------------------------  ----------------  ---------  ---------  ---------  --------- 
Total assets                                     453,985    129,698      1,574    279,178    864,435 
  Of which: loans and advances to 
   customers(2)                                  190,782    126,961        480     35,388    353,611 
                                        ----------------  ---------  ---------  ---------  --------- 
     loans and advances to customers             138,017    126,927        480     32,966    298,390 
     loans held at fair value through 
      profit or loss                              52,765         34          -      2,422     55,221 
                                        ----------------  ---------  ---------  ---------  --------- 
Total liabilities                                534,469    176,087        981    102,895    814,432 
  Of which: customer accounts(2)                 332,833    171,730        886      6,517    511,966 
Risk-weighted assets                             149,779     50,923      1,158     50,433    252,293 
Underlying return on tangible 
 equity (%)                                         17.5       19.2      nm(3)     (15.6)       10.1 
Cost to income ratio (excluding 
 bank levy) (%)                                     49.1       64.7      nm(3)      nm(3)       61.6 
--------------------------------------  ----------------  ---------  ---------  ---------  --------- 
 
 
                                                                       3Q'21 
--------------------------------------  ------------------------------------------------------------------- 
                                                             Consumer, 
                                                               Private 
                                                                     & 
                                                                                        Central 
                                                              Business                        & 
                                              Corporate, 
                                              Commercial 
                                         & Institutional                                  other 
                                              Banking(1)    Banking(1)  Ventures(1)    items(1)       Total 
                                                $million      $million     $million    $million    $million 
--------------------------------------  ----------------  ------------  -----------  ----------  ---------- 
Operating income                                   2,226         1,431            -         108       3,765 
                                        ----------------  ------------  -----------  ----------  ---------- 
  External                                         2,115         1,349            -         301       3,765 
  Inter-segment                                      111            82            -       (193)           - 
                                        ----------------  ------------  -----------  ----------  ---------- 
Operating expenses                               (1,304)       (1,065)         (60)       (165)     (2,594) 
--------------------------------------  ----------------  ------------  -----------  ----------  ---------- 
Operating profit/(loss) before 
 impairment losses and taxation                      922           366         (60)        (57)       1,171 
Credit impairment                                   (24)          (73)          (1)         (9)       (107) 
Other impairment                                    (30)             -            -         (5)        (35) 
Profit from associates and joint 
 ventures                                              -             -          (1)          47          46 
--------------------------------------  ----------------  ------------  -----------  ----------  ---------- 
Underlying profit/(loss) before 
 taxation                                            868           293         (62)        (24)       1,075 
Restructuring                                       (32)          (10)            -        (57)        (99) 
Other items                                            -             -           20           -          20 
--------------------------------------  ----------------  ------------  -----------  ----------  ---------- 
Statutory profit/(loss) before 
 taxation                                            836           283         (42)        (81)         996 
--------------------------------------  ----------------  ------------  -----------  ----------  ---------- 
Total assets                                     390,770       138,109          774     287,449     817,102 
  Of which: loans and advances to 
   customers(2)                                  197,121       135,333           42      31,272     363,768 
                                        ----------------  ------------  -----------  ----------  ---------- 
     loans and advances to customers             137,936       135,251           42      29,264     302,493 
     loans held at fair value through 
      profit or loss                              59,185            82            -       2,008      61,275 
                                        ----------------  ------------  -----------  ----------  ---------- 
Total liabilities                                468,431       179,423          794     115,119     763,767 
  Of which: customer accounts(2)                 320,516       175,278          721      16,477     512,992 
Risk-weighted assets                             161,915        52,583          608      52,449     267,555 
Underlying return on tangible 
 equity (%)                                         10.6          11.2        nm(3)       (5.6)         6.3 
Cost to income ratio (excluding 
 bank levy) (%)                                     58.6          74.4        nm(3)       152.8        68.9 
--------------------------------------  ----------------  ------------  -----------  ----------  ---------- 
 

1 Following the increased strategic importance and reporting of Ventures to management, this has been established as a separate operating segment in 2022. Prior period has been restated

2 Loans and advances to customers includes FVTPL and customer accounts includes FVTPL and repurchase agreements

   3      Not meaningful 

Page 12

Supplementary financial information continued

Corporate, Commercial & Institutional Banking(1)

 
                                                         Constant                            Constant                                        Constant 
                                                         currency                            currency                                        currency 
                        3Q'22       3Q'21  Change(5)  change(4,5)       2Q'22  Change(5)  change(4,5)      YTD'22      YTD'21  Change(5)  change(4,5) 
                     $million    $million          %            %    $million          %            %    $million    $million          %            % 
-----------------  ----------  ----------  ---------               ----------  ---------               ----------  ----------  --------- 
Operating income        2,745       2,226         23           28       2,305         19           22       7,622       6,518         17           20 
Transaction 
 Banking                1,050         712         47           56         810         30           32       2,574       2,089         23           28 
                   ----------  ----------  ---------  -----------  ----------  ---------  -----------  ----------  ----------  ---------  ----------- 
  Trade & Working 
   Capital(2,3)           332         375       (11)          (5)         328          1            5       1,006       1,057        (5)          (1) 
  Cash Management         718         337        113          123         482         49           51       1,568       1,032         52           57 
                   ----------  ----------  ---------  -----------  ----------  ---------  -----------  ----------  ----------  ---------  ----------- 
Financial Markets       1,540       1,311         17           22       1,373         12           15       4,636       3,887         19           22 
                   ----------  ----------  ---------  -----------  ----------  ---------  -----------  ----------  ----------  ---------  ----------- 
  Macro Trading           734         540         36           43         664         11           14       2,338       1,783         31           35 
  Credit 
   Markets(3)             440         516       (15)         (13)         374         18           20       1,274       1,429       (11)          (9) 
     Credit 
      Trading             156         144          8           12          87         79           83         353         377        (6)          (5) 
     Financing 
      Solutions 
      & 
      Issuance(3)         284         372       (24)         (22)         287        (1)            2         921       1,052       (12)         (11) 
  Structured 
   Finance                116         159       (27)         (27)         102         14           15         312         387       (19)         (19) 
  Financing & 
   Securities 
   Services(3)            195          97        101          113         198        (2)            1         537         290         85           90 
  DVA                      55         (1)      nm(9)        nm(9)          35         57           60         175         (2)      nm(9)        nm(9) 
                   ----------  ----------  ---------  -----------  ----------  ---------  -----------  ----------  ----------  ---------  ----------- 
Lending & 
 Portfolio 
 Management(2,3)          156         206       (24)         (22)         124         26           23         418         550       (24)         (22) 
Wealth Management           1           1          -        nm(9)           -      nm(9)        nm(9)           1           1          -        (100) 
Retail Products             1           -      nm(9)        nm(9)           -      nm(9)        nm(9)           1           -      nm(9)        nm(9) 
                   ----------  ----------  ---------  -----------  ----------  ---------  -----------  ----------  ----------  ---------  ----------- 
  Deposits                  1           1          -        nm(9)           -      nm(9)        nm(9)           1           1          -        nm(9) 
  Other Retail 
   Products(3)              -         (1)        100        nm(9)           -      nm(9)        nm(9)           -         (1)        100        nm(9) 
                   ----------  ----------  ---------  -----------  ----------  ---------  -----------  ----------  ----------  ---------  ----------- 
Other                     (3)         (4)         25           33         (2)       (50)           33         (8)         (9)         11           11 
Operating 
 expenses             (1,347)     (1,304)        (3)          (7)     (1,388)          3            1     (4,061)     (3,886)        (5)          (8) 
-----------------  ----------  ----------  ---------  -----------  ----------  ---------  -----------  ----------  ----------  ---------  ----------- 
Operating profit 
 before 
 impairment 
 losses 
 and taxation           1,398         922         52           58         917         52           55       3,561       2,632         35           39 
Credit impairment        (82)        (24)      nm(9)        nm(9)        (49)       (67)         (68)       (278)         112      nm(9)        nm(9) 
Other impairment         (31)        (30)        (3)          (3)           -      nm(9)        nm(9)        (31)        (55)         44           44 
-----------------  ----------  ----------  ---------  -----------  ----------  ---------  -----------  ----------  ----------  ---------  ----------- 
Underlying profit 
 before taxation        1,285         868         48           53         868         48           51       3,252       2,689         21           24 
Restructuring               2        (32)        106          106         (2)        200          167         (2)        (70)         97           99 
-----------------  ----------  ----------  ---------  -----------  ----------  ---------  -----------  ----------  ----------  ---------  ----------- 
Statutory profit 
 before 
 taxation               1,287         836         54           59         866         49           52       3,250       2,619         24           27 
-----------------  ----------  ----------  ---------  -----------  ----------  ---------  -----------  ----------  ----------  ---------  ----------- 
Total assets          453,985     390,770         16           19     427,483          6            8     453,985     390,770         16           19 
  Of which: loans 
   and 
   advances to 
   customers(6)       190,782     197,121        (3)            1     192,439        (1)            1     190,782     197,121        (3)            1 
Total liabilities     534,469     468,431         14           18     500,400          7            9     534,469     468,431         14           18 
  Of which: 
   customer 
   accounts(6)        332,833     320,516          4            8     321,517          4            5     332,833     320,516          4            8 
Risk-weighted 
 assets               149,779     161,915        (7)        nm(9)     154,177        (3)        nm(9)     149,779     161,915        (7)        nm(9) 
Underlying return 
 on risk-weighted 
 assets 
 (%)(7)                   3.4         2.0     140bps        nm(9)         2.2     120bps        nm(9)         2.8         2.1      70bps        nm(9) 
Underlying return 
 on tangible 
 equity 
 (%)(7)                  17.5        10.6     690bps        nm(9)        11.4     610bps        nm(9)        14.3        11.0     330bps        nm(9) 
Cost to income 
 ratio 
 (%)(8)                  49.1        58.6        9.5          9.6        60.2       11.1         11.1        53.3        59.6        6.3          6.2 
-----------------  ----------  ----------  ---------  -----------  ----------  ---------  -----------  ----------  ----------  ---------  ----------- 
 

1 Following the increased strategic importance and reporting of Ventures to management, this has been established as a separate operating segment in 2022. Prior period has been restated

2 Following a reorganisation, there has been a reclassification of balances from Lending & Portfolio Management into Trade & Working capital including prior period numbers. Prior periods have been re-presented and there is no change in the total income

3 Income related to Group Special Asset Management, the Group's specialist recovery unit previously reported in Other products has been allocated to the relevant products. Prior periods have been re-presented and there is no change in total income

4 Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods

   5      Variance is better/(worse) other than risk-weighted assets, assets and liabilities which is increase/(decrease) 

6 Loans and advances to customers includes FVTPL and customer accounts includes FVTPL and repurchase agreements

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

8 Change is the percentage points difference between the two periods rather than the percentage change

   9      Not meaningful 

Page 13

Supplementary financial information continued

Performance highlights

-- Underlying profit before tax of $1,285 million was up 48 per cent driven mainly by higher income, partially offset by higher expenses and credit impairment

-- Underlying operating income of $2,745 million was up 23 per cent (up 30 per cent ccy excluding a positive DVA and the IFRS9 adjustments) primarily due to strong performance across Transaction Banking Cash revenue supported by higher interest rates and strong Macro Trading Income in Financial Markets

-- Higher credit impairment primarily from charges on China Commercial Real Estate exposures and the sovereign ratings downgrade in some of our footprint markets

-- Risk-weighted assets down $13 billion since 31 December 2021, mainly as a result of optimisation initiatives and favourable FX movements, partly offset by business growth and regulatory impact

   --       RoTE increased to 17.5 per cent from 10.6 per cent 

Page 14

Supplementary financial information continued

Consumer, Private & Business Banking(1)

 
                                                       Constant                            Constant                                        Constant 
                                                       currency                            currency                                        currency 
                      3Q'22       3Q'21  Change(4)  change(3,4)       2Q'22  Change(4)  change(3,4)      YTD'22      YTD'21  Change(4)  change(3,4) 
                   $million    $million          %            %    $million          %            %    $million    $million          %            % 
---------------  ----------  ----------  ---------               ----------  ---------               ----------  ----------  --------- 
Operating 
 income               1,600       1,431         12           18       1,448         10           13       4,471       4,402          2            6 
Transaction 
 Banking                 32          22         45           50          25         28           32          83          67         24           26 
                 ----------  ----------  ---------  -----------  ----------  ---------  -----------  ----------  ----------  ---------  ----------- 
  Trade & 
   Working 
   Capital(2)            12          14       (14)          (7)          15       (20)         (13)          43          42          2            5 
  Cash 
   Management            20           8        150          150          10        100          100          40          25         60           60 
                 ----------  ----------  ---------  -----------  ----------  ---------  -----------  ----------  ----------  ---------  ----------- 
Lending & 
 Portfolio 
 Management(2)           10           8         25           25          12       (17)          (9)          30          25         20           20 
Wealth 
 Management             454         558       (19)         (15)         458        (1)            2       1,442       1,758       (18)         (16) 
Retail Products       1,104         829         33           43         951         16           19       2,903       2,528         15           21 
                 ----------  ----------  ---------  -----------  ----------  ---------  -----------  ----------  ----------  ---------  ----------- 
  CCPL & other 
   unsecured 
   lending              295         316        (7)            1         308        (4)          (1)         907         957        (5)          (1) 
  Deposits              626         205      nm(8)        nm(8)         363         72           76       1,238         649         91          104 
  Mortgage & 
   Auto                 141         260       (46)         (41)         235       (40)         (37)         623         775       (20)         (15) 
  Other Retail 
   Products              42          48       (13)          (7)          45        (7)          (4)         135         147        (8)          (4) 
                 ----------  ----------  ---------  -----------  ----------  ---------  -----------  ----------  ----------  ---------  ----------- 
Other                     -          14      (100)        (100)           2      (100)        (100)          13          24       (46)         (38) 
Operating 
 expenses           (1,035)     (1,065)          3          (3)     (1,054)          2          (1)     (3,106)     (3,090)        (1)          (4) 
---------------  ----------  ----------  ---------  -----------  ----------  ---------  -----------  ----------  ----------  ---------  ----------- 
Operating 
 profit before 
 impairment 
 losses 
 and taxation           565         366         54           65         394         43           47       1,365       1,312          4            9 
Credit 
 impairment            (87)        (73)       (19)         (24)        (45)       (93)         (93)       (166)       (166)          -          (5) 
Other 
 impairment               -           -      nm(8)        nm(8)         (1)        100          100         (1)           -      nm(8)        nm(8) 
---------------  ----------  ----------  ---------  -----------  ----------  ---------  -----------  ----------  ----------  ---------  ----------- 
Underlying 
 profit 
 before 
 taxation               478         293         63           75         348         37           41       1,198       1,146          5            9 
Restructuring          (22)        (10)      (120)        (120)        (14)       (57)         (57)        (43)        (32)       (34)         (39) 
---------------  ----------  ----------  ---------  -----------  ----------  ---------  -----------  ----------  ----------  ---------  ----------- 
Statutory 
 profit before 
 taxation               456         283         61           73         334         37           40       1,155       1,114          4            8 
---------------  ----------  ----------  ---------  -----------  ----------  ---------  -----------  ----------  ----------  ---------  ----------- 
Total assets        129,698     138,109        (6)            2     134,979        (4)            -     129,698     138,109        (6)            2 
  Of which: 
   loans and 
   advances to 
   customers(5)     126,961     135,333        (6)            2     132,275        (4)            -     126,961     135,333        (6)            2 
Total 
 liabilities        176,087     179,423        (2)            5     179,637        (2)            1     176,087     179,423        (2)            5 
  Of which: 
   customer 
   accounts(5)      171,730     175,278        (2)            4     175,747        (2)            -     171,730     175,278        (2)            4 
Risk-weighted 
 assets              50,923      52,583        (3)        nm(8)      52,518        (3)        nm(8)      50,923      52,583        (3)        nm(8) 
Underlying 
 return 
 on 
 risk-weighted 
 assets 
 (%)(6)                 3.7         2.2     150bps        nm(8)         2.5     120bps        nm(8)         3.0         2.8      20bps        nm(8) 
Underlying 
 return 
 on tangible 
 equity 
 (%)(6)                19.2        11.2     800bps        nm(8)        13.6     560bps        nm(8)        15.7        14.3     140bps        nm(8) 
Cost to income 
 ratio 
 (%)(7)                64.7        74.4        9.7         10.0        72.8        8.1          8.0        69.5        70.2        0.7          0.9 
---------------  ----------  ----------  ---------  -----------  ----------  ---------  -----------  ----------  ----------  ---------  ----------- 
 

1 Following the increased strategic importance and reporting of Ventures to management, this has been established as a separate operating segment in 2022. Prior period has been restated

2 Following a reorganisation, there has been a reclassification of balances from Lending & Portfolio Management into Trade & Working capital including prior period numbers. Prior periods have been re-presented and there is no change in the total income

3 Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods

   4      Variance is better/(worse) other than risk-weighted assets, assets and liabilities which is increase/(decrease) 

5 Loans and advances to customers includes FVTPL and customer accounts includes FVTPL and repurchase agreements

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

7 Change is the percentage points difference between the two periods rather than the percentage change

   8      Not meaningful 

Performance highlights

-- Underlying profit before tax of $478 million was up 63 per cent, mainly driven by higher income partly offset by higher expenses. Overall Impairments trend remain stable

-- Underlying operating income of $1,600 million was up 12 per cent (up 18 per cent on a constant currency basis) as higher income in Retail due to volume growth across most products, in addition to interest rate benefits within Deposits, partly offset by Wealth management which continues to face headwinds due to market volatility

   --       RoTE increased from 11.2 per cent to 19.2 per cent 

Page 15

Supplementary financial information continued

Ventures(1)

 
                                                       Constant                            Constant                                        Constant 
                                                       currency                            currency                                        currency 
                      3Q'22       3Q'21  Change(3)  change(2,3)       2Q'22  Change(3)  change(2,3)      YTD'22      YTD'21  Change(3)  change(2,3) 
                   $million    $million          %            %    $million          %            %    $million    $million          %            % 
---------------  ----------  ----------  ---------               ----------  ---------               ----------  ----------  --------- 
Operating 
 income                  10           -      nm(7)        nm(7)           4        150           80          15         (3)      nm(7)        nm(7) 
Retail Products           4         (1)      nm(7)        nm(7)           4          0         (20)           9         (5)      nm(7)        nm(7) 
                 ----------  ----------  ---------  -----------  ----------  ---------  -----------  ----------  ----------  ---------  ----------- 
  CCPL & other 
   unsecured 
   lending                6           -      nm(7)        nm(7)           5         20           20          12         (1)      nm(7)        nm(7) 
  Deposits              (2)         (1)      (100)        (100)           -      nm(7)        nm(7)         (3)         (3)          -            - 
  Other Retail 
   Products               -           -      nm(7)        nm(7)         (1)        100        nm(7)           -         (1)        100        nm(7) 
                 ----------  ----------  ---------  -----------  ----------  ---------  -----------  ----------  ----------  ---------  ----------- 
Other                     6           1      nm(7)        nm(7)           -      nm(7)        nm(7)           6           2        200          200 
Operating 
 expenses              (87)        (60)       (45)         (49)        (74)       (18)         (19)       (233)       (178)       (31)         (34) 
---------------  ----------  ----------  ---------  -----------  ----------  ---------  -----------  ----------  ----------  ---------  ----------- 
Operating loss 
 before 
 impairment 
 losses 
 and taxation          (77)        (60)       (28)         (34)        (70)       (10)         (14)       (218)       (181)       (20)         (24) 
Credit 
 impairment             (4)         (1)      nm(7)        nm(7)           -      nm(7)        nm(7)         (7)         (1)      nm(7)        nm(7) 
Loss from 
 associates 
 and joint 
 ventures               (4)         (1)      nm(7)        (200)         (4)          -           25        (11)         (3)      nm(7)        (175) 
---------------  ----------  ----------  ---------  -----------  ----------  ---------  -----------  ----------  ----------  ---------  ----------- 
Underlying loss 
 before 
 taxation              (85)        (62)       (37)         (41)        (74)       (15)         (18)       (236)       (185)       (28)         (30) 
Restructuring             -           -      nm(7)        nm(7)         (1)        100          100         (1)           -      nm(7)        nm(7) 
Other items               -          20      (100)        (100)           -      nm(7)        nm(7)           -          20      (100)        (100) 
---------------  ----------  ----------  ---------  -----------  ----------  ---------  -----------  ----------  ----------  ---------  ----------- 
Statutory loss 
 before 
 taxation              (85)        (42)      (102)        (110)        (75)       (13)         (16)       (237)       (165)       (44)         (47) 
---------------  ----------  ----------  ---------  -----------  ----------  ---------  -----------  ----------  ----------  ---------  ----------- 
Total assets          1,574         774        103          105       1,371         15           15       1,574         774        103          105 
  Of which: 
   loans and 
   advances to 
   customers(4)         480          42      nm(7)        nm(7)         342         40           40         480          42      nm(7)        nm(7) 
Total 
 liabilities            981         794         24           25         770         27           28         981         794         24           25 
  Of which: 
   customer 
   accounts(4)          886         721         23           24         689         29           29         886         721         23           24 
Risk-weighted 
 assets               1,158         608         90        nm(7)       1,043         11        nm(7)       1,158         608         90        nm(7) 
Underlying 
 return 
 on 
 risk-weighted 
 assets 
 (%)(5)               nm(7)       nm(7)      nm(7)        nm(7)       nm(7)      nm(7)        nm(7)       nm(7)       nm(7)      nm(7)        nm(7) 
Underlying 
 return 
 on tangible 
 equity 
 (%)(5)               nm(7)       nm(7)      nm(7)        nm(7)       nm(7)      nm(7)        nm(7)       nm(7)       nm(7)      nm(7)        nm(7) 
Cost to income 
 ratio 
 (%)(6)               nm(7)       nm(7)      nm(7)        nm(7)       nm(7)      nm(7)        nm(7)       nm(7)       nm(7)      nm(7)        nm(7) 
---------------  ----------  ----------  ---------  -----------  ----------  ---------  -----------  ----------  ----------  ---------  ----------- 
 

1 Following the increased strategic importance and reporting of Ventures to management, this has been established as a separate operating segment in 2022. Prior period has been restated

2 Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods

   3      Variance is better/(worse) other than risk-weighted assets, assets and liabilities which is increase/(decrease) 

4 Loans and advances to customers includes FVTPL and customer accounts includes FVTPL and repurchase agreements

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

6 Change is the percentage points difference between the two periods rather than the percentage change

   7      Not meaningful 

Performance highlights

-- Underlying loss before tax of $85 million was up $23 million, driven mainly by higher expenses as we continue to invest in new and existing Ventures

-- Loans and advances to customers increased almost 40 per cent since 30 June 2022, due to customer growth, higher utilisation and additional credit product being launched

-- Risk weighted assets of $1,158 million have increased $550 million mainly due to continued investment in new and existing Ventures and minority interests

Page 16

Supplementary financial information continued

Central & other items (segment)(1)

 
                                                        Constant                             Constant                                        Constant 
                                                        currency                             currency                                        currency 
                      3Q'22       3Q'21   Change(3)  change(2,3)       2Q'22   Change(3)  change(2,3)      YTD'22      YTD'21  Change(3)  change(2,3) 
                   $million    $million           %            %    $million           %            %    $million    $million          %            % 
---------------  ----------  ----------  ----------               ----------  ----------               ----------  ----------  --------- 
Operating 
 income                (37)         108       (134)        (118)         169       (122)        (111)         410         466       (12)            2 
Treasury                (4)         149       (103)         (98)         205       (102)         (99)         518         543        (5)            - 
Other                  (33)        (41)          20           52        (36)           8           42       (108)        (77)       (40)            8 
Operating 
 expenses             (190)       (165)        (15)         (58)       (115)        (65)         (92)       (526)       (532)          1         (22) 
Operating loss 
 before 
 impairment 
 losses and 
 taxation             (227)        (57)       nm(7)        nm(7)          54       nm(7)        nm(7)       (116)        (66)       (76)        nm(7) 
Credit 
 impairment            (54)         (9)       nm(7)        nm(7)          27       nm(7)        nm(7)        (43)         (5)      nm(7)        nm(7) 
Other 
 impairment             (1)         (5)          80          100           -       nm(7)        nm(7)         (2)         (5)         60           60 
Profit from 
 associates 
 and joint 
 ventures                20          47        (57)         (62)          94        (79)         (81)         180         183        (2)          (1) 
---------------  ----------  ----------  ----------  -----------  ----------  ----------  -----------  ----------  ----------  ---------  ----------- 
Underlying 
 profit/(loss) 
 before 
 taxation             (262)        (24)       nm(7)        nm(7)         175       nm(7)        nm(7)          19         107       (82)         (94) 
Restructuring           (5)        (57)          91           93        (20)          75           79        (24)       (120)         80           81 
Other items               -           -       nm(7)        nm(7)           -       nm(7)        nm(7)           -           -      nm(7)        nm(7) 
---------------  ----------  ----------  ----------  -----------  ----------  ----------  -----------  ----------  ----------  ---------  ----------- 
Statutory loss 
 before 
 taxation             (267)        (81)       nm(7)        nm(7)         155       nm(7)        nm(7)         (5)        (13)         62        (182) 
---------------  ----------  ----------  ----------  -----------  ----------  ----------  -----------  ----------  ----------  ---------  ----------- 
Total assets        279,178     287,449         (3)            3     272,084           3            5     279,178     287,449        (3)            3 
  Of which: 
   loans 
   and advances 
   to 
   customers(4)      35,388      31,272          13           23      29,418          20           26      35,388      31,272         13           23 
Total 
 liabilities        102,895     115,119        (11)          (9)     105,418         (2)          (1)     102,895     115,119       (11)          (9) 
  Of which: 
   customer 
   accounts(4)        6,517      16,477        (60)         (59)       9,058        (28)         (27)       6,517      16,477       (60)         (59) 
Risk-weighted 
 assets              50,433      52,449         (4)        nm(7)      47,344           7        nm(7)      50,433      52,449        (4)        nm(7) 
Underlying 
 return 
 on 
 risk-weighted 
 assets (%)(5)        (2.0)       (0.2)    (180)bps        nm(7)         1.4    (340)bps        nm(7)           -         0.3    (30)bps        nm(7) 
Underlying 
 return 
 on tangible 
 equity 
 (%)(5)              (15.6)       (5.6)  (1,000)bps        nm(7)       (0.3)  (1,530)bps        nm(7)       (5.2)       (3.7)   (150)bps        nm(7) 
Cost to income 
 ratio (%) 
 (excluding 
 UK bank 
 levy)(6)             nm(7)       152.8       nm(7)        nm(7)        71.0       nm(7)        nm(7)       129.5       112.9     (16.6)       (24.4) 
---------------  ----------  ----------  ----------  -----------  ----------  ----------  -----------  ----------  ----------  ---------  ----------- 
 

1 Following the increased strategic importance and reporting of Ventures to management, this has been established as a separate operating segment in 2022. Prior period has been restated

2 Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods

   3      Variance is better/(worse) other than risk-weighted assets, assets and liabilities which is increase/(decrease) 

4 Loans and advances to customers includes FVTPL and customer accounts includes FVTPL and repurchase agreements

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

6 Change is the percentage points difference between the two periods rather than the percentage change

   7      Not meaningful 

Performance highlights

-- Underlying loss before tax of $262 million compared to 3Q'21 loss of $24 million primarily due to lower net interest income from hedges as rates rise, lower profit share from China Bohai Bank. Expenses increased 15 per cent while credit impairments were $45 million higher

-- Underlying operating income from Treasury was down to $4 million, $153 million worse than prior year primarily due to lower net interest income from hedges

-- Treasury risk-weighted assets down $6 billion since 31 December 2021, due to management actions, mostly portfolio optimisation and the purchase of credit insurance for higher risk weighted central bank cash balances

Page 17

Supplementary financial information continued

Underlying performance by region

 
                                                                3Q'22 
--------------------------------------  ------------------------------------------------------ 
                                                       Africa               Central 
                                                            &     Europe          & 
                                                       Middle          &      other 
                                             Asia        East   Americas      items      Total 
                                         $million    $million   $million   $million   $million 
--------------------------------------  ---------  ----------  ---------  ---------  --------- 
Operating income                            2,984         652        632         50      4,318 
Operating expenses                        (1,715)       (423)      (374)      (147)    (2,659) 
--------------------------------------  ---------  ----------  ---------  ---------  --------- 
Operating profit/(loss) before 
 impairment losses and taxation             1,269         229        258       (97)      1,659 
Credit impairment                           (193)        (68)         34          -      (227) 
Other impairment                             (33)           2          1        (2)       (32) 
Profit from associates and joint 
 ventures                                      20           -          -        (4)         16 
--------------------------------------  ---------  ----------  ---------  ---------  --------- 
Underlying profit/(loss) before 
 taxation                                   1,063         163        293      (103)      1,416 
Restructuring                                (18)         (1)        (2)        (4)       (25) 
Other items                                     -           -          -          -          - 
--------------------------------------  ---------  ----------  ---------  ---------  --------- 
Statutory profit/(loss) before 
 taxation                                   1,045         162        291      (107)      1,391 
--------------------------------------  ---------  ----------  ---------  ---------  --------- 
Total assets                              497,193      54,724    303,617      8,901    864,435 
  Of which: loans and advances to 
   customers(1)                           258,911      24,705     69,995          -    353,611 
                                        ---------  ----------  ---------  ---------  --------- 
     loans and advances to customers      242,700      23,644     32,046          -    298,390 
     loans held at fair value through 
      profit or loss                       16,211       1,061     37,949          -     55,221 
                                        ---------  ----------  ---------  ---------  --------- 
Total liabilities                         452,959      41,116    249,771     70,586    814,432 
  Of which: customer accounts(1)          334,954      31,697    145,315          -    511,966 
Risk-weighted assets                      156,553      42,746     50,779      2,215    252,293 
Underlying return on risk-weighted 
 assets (%)(2)                                2.7         1.5        2.3      nm(4)        2.2 
Underlying return on tangible 
 equity (%)(2)                               14.2         7.8       12.1      nm(4)       10.1 
Cost to income ratio (%)(3)                  57.5        64.9       59.2      nm(4)       61.6 
--------------------------------------  ---------  ----------  ---------  ---------  --------- 
 
 
                                                                3Q'21 
--------------------------------------  ------------------------------------------------------ 
                                                       Africa               Central 
                                                            &     Europe          & 
                                                       Middle          &      other 
                                             Asia        East   Americas      items      Total 
                                         $million    $million   $million   $million   $million 
--------------------------------------  ---------  ----------  ---------  ---------  --------- 
Operating income                            2,629         657        514       (35)      3,765 
Operating expenses                        (1,661)       (401)      (350)      (182)    (2,594) 
--------------------------------------  ---------  ----------  ---------  ---------  --------- 
Operating profit/(loss) before 
 impairment losses and taxation               968         256        164      (217)      1,171 
Credit impairment                            (84)        (33)         11        (1)      (107) 
Other impairment                              (2)         (1)       (14)       (18)       (35) 
Profit from associates and joint 
 ventures                                      45           -          -          1         46 
--------------------------------------  ---------  ----------  ---------  ---------  --------- 
Underlying profit/(loss) before 
 taxation                                     927         222        161      (235)      1,075 
Restructuring                                (36)         (7)       (27)       (29)       (99) 
Other items                                     -           -          -         20         20 
--------------------------------------  ---------  ----------  ---------  ---------  --------- 
Statutory profit/(loss) before 
 taxation                                     891         215        134      (244)        996 
--------------------------------------  ---------  ----------  ---------  ---------  --------- 
Total assets                              475,407      56,609    275,427      9,659    817,102 
  Of which: loans and advances to 
   customers(1)                           263,296      28,415     72,057          -    363,768 
                                        ---------  ----------  ---------  ---------  --------- 
     loans and advances to customers      246,226      25,914     30,353          -    302,493 
     loans held at fair value through 
      profit or loss                       17,070       2,501     41,704          -     61,275 
                                        ---------  ----------  ---------  ---------  --------- 
Total liabilities                         428,911      40,276    228,363     66,217    763,767 
  Of which: customer accounts(1)          343,425      33,307    136,260          -    512,992 
Risk-weighted assets                      172,205      49,040     48,476    (2,166)    267,555 
Underlying return on risk-weighted 
 assets (%)(2)                                2.1         1.7        1.3      nm(4)        1.6 
Underlying return on tangible 
 equity (%)(2)                               11.1         9.1        6.7      nm(4)        6.3 
Cost to income ratio (%)(3)                  63.2        61.0       68.1      nm(4)       68.9 
--------------------------------------  ---------  ----------  ---------  ---------  --------- 
 

1 Loans and advances to customers includes FVTPL and customer accounts includes FVTPL and repurchase agreements

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

3 Change is the percentage points difference between the two periods rather than the percentage change

   4      Not meaningful 

Page 18

Supplementary financial information continued

Asia(1)

 
                                                    Constant                       Constant 
                                                    currency                       currency                                     Constant 
                                                      change                         change                                     currency 
                                                         (1,                            (1,                                       change 
                      3Q'22       3Q'21  Change(2)        2)       2Q'22  Change2        2)      YTD'22      YTD'21  Change(2)       (1) 
                   $million    $million          %         %    $million        %         %    $million    $million          %         % 
---------------  ----------  ----------  ---------            ----------  -------            ----------  ----------  --------- 
Operating 
 income               2,984       2,629         14        19       2,725       10        12       8,506       8,092          5         9 
Operating 
 expenses           (1,715)     (1,661)        (3)       (9)     (1,746)        2       (1)     (5,132)     (4,959)        (3)       (7) 
---------------  ----------  ----------  ---------  --------  ----------  -------  --------  ----------  ----------  ---------  -------- 
Operating 
 profit before 
 impairment 
 losses 
 and taxation         1,269         968         31        38         979       30        33       3,374       3,133          8        11 
Credit 
 impairment           (193)        (84)      (130)     (168)       (113)     (71)      (57)       (591)       (131)      nm(6)     nm(6) 
Other 
 impairment            (33)         (2)      nm(6)     nm(6)         (2)    nm(6)     nm(6)        (35)        (17)      (106)      (94) 
Profit from 
 associates 
 and joint 
 ventures                20          45       (56)      (59)          91     (78)      (79)         177         181        (2)       (2) 
---------------  ----------  ----------  ---------  --------  ----------  -------  --------  ----------  ----------  ---------  -------- 
Underlying 
 profit 
 before 
 taxation             1,063         927         15        19         955       11        15       2,925       3,166        (8)       (5) 
Restructuring          (18)        (36)         50        45        (10)     (80)      (64)        (37)        (63)         41        39 
Other items               -           -      nm(6)     nm(6)           -    nm(6)     nm(6)           -           -      nm(6)     nm(6) 
---------------  ----------  ----------  ---------  --------  ----------  -------  --------  ----------  ----------  ---------  -------- 
Statutory 
 profit before 
 taxation             1,045         891         17        21         945       11        15       2,888       3,103        (7)       (4) 
---------------  ----------  ----------  ---------  --------  ----------  -------  --------  ----------  ----------  ---------  -------- 
Total assets        497,193     475,407          5        12     477,485        4         7     497,193     475,407          5        12 
  Of which: 
   loans and 
   advances to 
   customers(3)     258,911     263,296        (2)         6     259,484        -         3     258,911     263,296        (2)         6 
Total 
 liabilities        452,959     428,911          6        12     431,424        5         8     452,959     428,911          6        12 
  Of which: 
   customer 
   accounts(3)      334,954     343,425        (2)         3     332,705        1         3     334,954     343,425        (2)         3 
Risk-weighted 
 assets             156,553     172,205        (9)     nm(6)     160,345      (2)     nm(6)     156,553     172,205        (9)     nm(6) 
Underlying 
 return 
 on 
 risk-weighted 
 assets 
 (%)(4)                 2.7         2.1      60bps     nm(6)         2.3    40bps     nm(6)         2.4         2.4          -     nm(6) 
Underlying 
 return 
 on tangible 
 equity 
 (%)(4)                14.2        11.1     310bps     nm(6)        12.3   190bps     nm(6)        12.6        12.6          -     nm(6) 
Cost to income 
 ratio 
 (%)(5)                57.5        63.2        5.7       5.7        64.1      6.6       6.6        60.3        61.3        1.0       1.0 
---------------  ----------  ----------  ---------  --------  ----------  -------  --------  ----------  ----------  ---------  -------- 
 

1 Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods

   2      Variance is better/(worse) other than risk-weighted assets, assets and liabilities which is increase/(decrease) 

3 Loans and advances to customers includes FVTPL and customer accounts includes FVTPL and repurchase agreements

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

5 Change is the percentage points difference between the two periods rather than the percentage change

   6      Not meaningful 

Performance highlights

-- Underlying profit before tax of $1,063 million was up 15 per cent, primarily from higher income partly offset by higher credit impairment from charges on China Commercial Real Estate exposures and the sovereign ratings downgrade of Sri Lanka

-- Underlying operating income of $2,984 million was up 14 per cent (up 19 per cent on a constant currency), mainly driven by a strong Financial Markets momentum and Cash Management and Retail Deposits, both benefiting from the hike in interest rates. This was partially offset by lower Lending and Wealth Management income as market conditions reduced transaction volumes, as well as the impact of COVID-19 restrictions impacting in our key markets, Hong Kong and China

-- Loans and advances to customers and customer accounts were down 2 per cent (up 6 per cent on a constant currency) since 31 December 2021

-- Risk-weighted assets were down $14 billion since 31 December 2021 as we continue to focus on RWA optimisation

   --       RoTE increased from 11.1 per cent to 14.2 per cent 

Page 19

Supplementary financial information continued

Africa & Middle East

 
                                                    Constant                         Constant 
                                                    currency                         currency                                     Constant 
                                                      change                           change                                     currency 
                                                         (1,                              (1,                                       change 
                      3Q'22       3Q'21  Change(2)        2)       2Q'22  Change(2)        2)      YTD'22      YTD'21  Change(2)       (1) 
                   $million    $million          %         %    $million          %         %    $million    $million          %         % 
---------------  ----------  ----------  ---------            ----------  ---------            ----------  ----------  --------- 
Operating 
 income                 652         657        (1)         8         632          3        10       1,943       1,907          2         7 
Operating 
 expenses             (423)       (401)        (5)      (10)       (405)        (4)       (9)     (1,231)     (1,216)        (1)       (5) 
---------------  ----------  ----------  ---------  --------  ----------  ---------  --------  ----------  ----------  ---------  -------- 
Operating 
 profit before 
 impairment 
 losses 
 and taxation           229         256       (11)         5         227          1        12         712         691          3        11 
Credit 
 impairment            (68)        (33)      (106)     (127)          53      nm(6)     nm(6)          31           7      nm(6)       182 
Other 
 impairment               2         (1)      nm(6)     nm(6)         (1)      nm(6)     nm(6)           1         (1)        200       200 
---------------  ----------  ----------  ---------  --------  ----------  ---------  --------  ----------  ----------  ---------  -------- 
Underlying 
 profit 
 before 
 taxation               163         222       (27)      (11)         279       (42)      (34)         744         697          7        14 
Restructuring           (1)         (7)         86       100         (8)         88       100         (8)        (10)         20        20 
---------------  ----------  ----------  ---------  --------  ----------  ---------  --------  ----------  ----------  ---------  -------- 
Statutory 
 profit before 
 taxation               162         215       (25)       (7)         271       (40)      (31)         736         687          7        15 
---------------  ----------  ----------  ---------  --------  ----------  ---------  --------  ----------  ----------  ---------  -------- 
Total assets         54,724      56,609        (3)         4      57,859        (5)       (2)      54,724      56,609        (3)         4 
  Of which: 
   loans and 
   advances to 
   customers(3)      24,705      28,415       (13)       (8)      28,003       (12)       (9)      24,705      28,415       (13)       (8) 
Total 
 liabilities         41,116      40,276          2         9      42,672        (4)       (1)      41,116      40,276          2         9 
  Of which: 
   customer 
   accounts(3)       31,697      33,307        (5)         2      33,480        (5)       (3)      31,697      33,307        (5)         2 
Risk-weighted 
 assets              42,746      49,040       (13)     nm(6)      43,613        (2)     nm(6)      42,746      49,040       (13)     nm(6) 
Underlying 
 return 
 on 
 risk-weighted 
 assets 
 (%)(4)                 1.5         1.7    (20)bps     nm(6)         2.5   (100)bps     nm(6)         2.2         1.8      40bps     nm(6) 
Underlying 
 return 
 on tangible 
 equity 
 (%)(4)                 7.8         9.1   (130)bps     nm(6)        13.0   (520)bps     nm(6)        11.4         9.5     190bps     nm(6) 
Cost to income 
 ratio 
 (%)(5)                64.9        61.0      (3.9)     (1.1)        64.1      (0.8)       0.5        63.4        63.8        0.4       1.1 
---------------  ----------  ----------  ---------  --------  ----------  ---------  --------  ----------  ----------  ---------  -------- 
 

1 Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods

   2      Variance is better/(worse) other than risk-weighted assets, assets and liabilities which is increase/(decrease) 

3 Loans and advances to customers includes FVTPL and customer accounts includes FVTPL and repurchase agreements

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

5 Change is the percentage points difference between the two periods rather than the percentage change

   6      Not meaningful 

Performance highlights

-- Underlying profit before tax of $162 million was 25 per cent lower (7 per cent lower on constant currency basis), primarily due to higher provisions related to country downgrades

-- Underlying operating income of $652 million was 1 per cent lower (up 8 per cent on a constant currency basis); Broad-based growth across products, led by Transaction Banking, offset by grow-over impact of a IFRS9 accounting adjustment last year and impact of currency devaluation

-- Loans and advances to customers were down 10 per cent (6 per cent down on constant currency basis) and customer accounts were down 9 per cent (3 per cent down on constant currency basis) since 31 December 2021

   --       Risk-weighted assets were down $6 billion since 31 December 2021 
   --       RoTE decreased from 9.1 per cent to 7.8 per cent; Q3 YTD RoTE at 11.4% 

Page 20

Supplementary financial information continued

Europe & Americas

 
                                                    Constant                         Constant 
                                                    currency                         currency                                     Constant 
                                                      change                           change                                     currency 
                                                         (1,                              (1,                                       change 
                      3Q'22       3Q'21  Change(2)        2)       2Q'22  Change(2)        2)      YTD'22      YTD'21  Change(2)       (1) 
                   $million    $million          %         %    $million          %         %    $million    $million          %         % 
---------------  ----------  ----------  ---------            ----------  ---------            ----------  ----------  --------- 
Operating 
 income                 632         514         23        27         588          7         9       2,077       1,507         38        41 
Operating 
 expenses             (374)       (350)        (7)      (10)       (390)          4         3     (1,145)     (1,075)        (7)      (10) 
---------------  ----------  ----------  ---------  --------  ----------  ---------  --------  ----------  ----------  ---------  -------- 
Operating 
 profit before 
 impairment 
 losses 
 and taxation           258         164         57        65         198         30        31         932         432        116       118 
Credit 
 impairment              34          11      nm(6)     nm(6)         (7)      nm(6)     nm(6)          63          73       (14)      (13) 
Other 
 impairment               1        (14)        107       108           1          -         -           2         (7)        129       143 
---------------  ----------  ----------  ---------  --------  ----------  ---------  --------  ----------  ----------  ---------  -------- 
Underlying 
 profit 
 before 
 taxation               293         161         82        92         192         53        54         997         498        100       103 
Restructuring           (2)        (27)         93        93         (9)         78        75         (8)        (47)         83        83 
---------------  ----------  ----------  ---------  --------  ----------  ---------  --------  ----------  ----------  ---------  -------- 
Statutory 
 profit before 
 taxation               291         134        117       133         183         59        59         989         451        119       123 
---------------  ----------  ----------  ---------  --------  ----------  ---------  --------  ----------  ----------  ---------  -------- 
Total assets        303,617     275,427         10        11     291,264          4         5     303,617     275,427         10        11 
  Of which: 
   loans and 
   advances to 
   customers(3)      69,995      72,057        (3)       (1)      66,987          4         5      69,995      72,057        (3)       (1) 
Total 
 liabilities        249,771     228,363          9        11     243,877          2         3     249,771     228,363          9        11 
  Of which: 
   customer 
   accounts(3)      145,315     136,260          7         8     140,826          3         4     145,315     136,260          7         8 
Risk-weighted 
 assets              50,779      48,476          5     nm(6)      50,038          1     nm(6)      50,779      48,476          5     nm(6) 
Underlying 
 return 
 on 
 risk-weighted 
 assets 
 (%)(4)                 2.3         1.3     100bps     nm(6)         1.5      80bps     nm(6)         2.6         1.4     120bps     nm(6) 
Underlying 
 return 
 on tangible 
 equity 
 (%)(4)                12.1         6.7     540bps     nm(6)         8.0     410bps     nm(6)        13.7         7.0     670bps     nm(6) 
Cost to income 
 ratio 
 (%)(5)                59.2        68.1        8.9       9.2        66.3        7.1       6.9        55.1        71.3       16.2      15.8 
---------------  ----------  ----------  ---------  --------  ----------  ---------  --------  ----------  ----------  ---------  -------- 
 

1 Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods

   2      Variance is better/(worse) other than risk-weighted assets, assets and liabilities which is increase/(decrease) 

3 Loans and advances to customers includes FVTPL and customer accounts includes FVTPL and repurchase agreements

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

5 Change is the percentage points difference between the two periods rather than the percentage change

   6      Not meaningful 

Performance highlights

-- Underlying profit before tax of $293 million was 82 per cent higher, driven by increased income slightly offset by higher expenses

-- Underlying operating income of $632 million was up 23 per cent with growth driven by Financial Markets

   --       RoTE double digit at 12.1 per cent from 6.7 per cent 

Page 21

Supplementary financial information continued

Central & other items (region)

 
                                                   Constant                         Constant                                     Constant 
                                                   currency                         currency                                     currency 
                                                     change                           change                                       change 
                                                        (1,                              (1,                                          (1, 
                     3Q'22       3Q'21  Change(2)        2)       2Q'22  Change(2)        2)      YTD'22      YTD'21  Change(2)        2) 
                  $million    $million          %         %    $million          %         %    $million    $million          %         % 
--------------  ----------  ----------  ---------            ----------  ---------            ----------  ----------  --------- 
Operating 
 income                 50        (35)      nm(5)     nm(5)        (19)      nm(5)     nm(5)         (8)       (123)         93        94 
Operating 
 expenses            (147)       (182)         19      (11)        (90)       (63)      (99)       (418)       (436)          4      (21) 
--------------  ----------  ----------  ---------  --------  ----------  ---------  --------  ----------  ----------  ---------  -------- 
Operating loss 
 before 
 impairment 
 losses 
 and taxation         (97)       (217)         55        35       (109)         11      (16)       (426)       (559)         24        12 
Credit 
 impairment              -         (1)        100     nm(5)           -      nm(5)     nm(5)           3         (9)        133       138 
Other 
 impairment            (2)        (18)         89        94           1      nm(5)     (200)         (2)        (35)         94        91 
Profit from 
 associates 
 and joint 
 ventures              (4)           1      nm(5)     nm(5)         (1)      nm(5)     nm(5)         (8)         (1)      nm(5)     nm(5) 
--------------  ----------  ----------  ---------  --------  ----------  ---------  --------  ----------  ----------  ---------  -------- 
Underlying 
 loss before 
 taxation            (103)       (235)         56        38       (109)          6      (21)       (433)       (604)         28        18 
Restructuring          (4)        (29)         86        87        (10)         60        56        (17)       (102)         83        85 
Other items              -          20      (100)     (100)           -      nm(5)     nm(5)           -          20      (100)     (100) 
--------------  ----------  ----------  ---------  --------  ----------  ---------  --------  ----------  ----------  ---------  -------- 
Statutory loss 
 before 
 taxation            (107)       (244)         56        39       (119)         10      (15)       (450)       (686)         34        26 
--------------  ----------  ----------  ---------  --------  ----------  ---------  --------  ----------  ----------  ---------  -------- 
Total assets         8,901       9,659        (8)       (7)       9,309        (4)       (4)       8,901       9,659        (8)       (7) 
Total 
 liabilities        70,586      66,217          7         7      68,252          3         3      70,586      66,217          7         7 
Risk-weighted 
 assets              2,215     (2,166)      nm(5)     nm(5)       1,086        104       104       2,215     (2,166)      nm(5)     nm(5) 
Underlying 
 return 
 on 
 risk-weighted 
 assets 
 (%)(3)              nm(5)       nm(5)      nm(5)         -       nm(5)      nm(5)         -       nm(5)       nm(5)      nm(5)         - 
Underlying 
 return 
 on tangible 
 equity 
 (%)(3)              nm(5)       nm(5)      nm(5)     nm(5)       nm(5)      nm(5)     nm(5)       nm(5)       nm(5)      nm(5)     nm(5) 
Cost to income 
 ratio 
 (%) 
 (excluding UK 
 bank levy)(4)       nm(5)       nm(5)      nm(5)     nm(5)       nm(5)      nm(5)     nm(5)       nm(5)       nm(5)      nm(5)         - 
--------------  ----------  ----------  ---------  --------  ----------  ---------  --------  ----------  ----------  ---------  -------- 
 

1 Comparisons presented on the basis of the current period's transactional currency rate, ensuring like-for-like currency rates between the two periods

   2      Variance is better/(worse) other than risk-weighted assets, assets and liabilities which is increase/(decrease) 

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

4 Change is the percentage points difference between the two periods rather than the percentage change

   5      Not meaningful 

Performance highlights

-- Underlying loss before tax of $103 million, 56 per cent better than prior year primarily from higher returns paid to Treasury on the equity provided to the regions in a higher interest rate environment

Page 22

Supplementary financial information continued

Underlying performance by key market

 
                                                                 3Q'22 
---------------  ----------------------------------------------------------------------------------------------------- 
                     Hong 
                     Kong     Korea     China    Taiwan  Singapore     India  Indonesia       UAE        UK         US 
                 $million  $million  $million  $million   $million  $million   $million  $million  $million   $million 
---------------  --------  --------  --------  --------  ---------  --------  ---------  --------  --------  --------- 
Operating 
 income             1,020       292       315       120        545       296         48       158       273        266 
Operating 
 expenses           (514)     (179)     (213)      (82)      (263)     (188)       (41)      (90)     (176)      (146) 
---------------  --------  --------  --------  --------  ---------  --------  ---------  --------  --------  --------- 
Operating 
 profit 
 before 
 impairment 
 losses and 
 taxation             506       113       102        38        282       108          7        68        97        120 
Credit 
 impairment         (145)      (18)      (53)       (2)         65      (11)          3        25        10         12 
Other 
 impairment          (37)         -       (1)         -        (2)       (2)          -       (1)        11        (2) 
Profit from 
 associates 
 and joint 
 ventures               -         -        19         -          -         -          -         -         -          - 
---------------  --------  --------  --------  --------  ---------  --------  ---------  --------  --------  --------- 
Underlying 
 profit before 
 taxation             324        95        67        36        345        95         10        92       118        130 
---------------  --------  --------  --------  --------  ---------  --------  ---------  --------  --------  --------- 
Total assets 
 employed         177,682    65,950    40,772    24,660     98,714    31,817      5,868    20,160   220,271     68,973 
  Of which: 
   loans 
   and advances 
   to 
   customers(1)    86,348    39,854    15,211    10,938     60,136    15,029      2,185     8,186    46,182     19,962 
Total 
 liabilities 
 employed         167,509    56,038    36,599    23,529    109,115    23,998      4,702    16,035   162,730     72,122 
  Of which: 
   customer 
   accounts(1)    132,780    39,297    26,339    19,507     77,179    14,577      3,219    12,569   105,413     31,136 
Underlying 
 return on 
 tangible 
 equity (%)          15.0      12.7       6.9      16.1       29.4       9.8        6.1      17.7       7.9       16.6 
Cost to income 
 ratio (%)           50.4      61.3      67.6      68.3       48.3      63.5       85.4      57.0      64.5       54.9 
---------------  --------  --------  --------  --------  ---------  --------  ---------  --------  --------  --------- 
 
 
                                                                 2Q'22 
---------------  ----------------------------------------------------------------------------------------------------- 
                     Hong 
                     Kong     Korea     China    Taiwan  Singapore     India  Indonesia       UAE        UK         US 
                 $million  $million  $million  $million   $million  $million   $million  $million  $million   $million 
---------------  --------  --------  --------  --------  ---------  --------  ---------  --------  --------  --------- 
Operating 
 income               883       285       306       110        419       325         48       139       253        263 
Operating 
 expenses           (510)     (189)     (215)      (84)      (274)     (191)       (44)      (87)     (188)      (147) 
---------------  --------  --------  --------  --------  ---------  --------  ---------  --------  --------  --------- 
Operating 
 profit 
 before 
 impairment 
 losses and 
 taxation             373        96        91        26        145       134          4        52        65        116 
Credit 
 impairment          (98)       (8)      (51)         1         10       (5)        (1)        46         8          8 
Other 
 impairment           (1)         -       (1)         -          -       (1)          -         -        13          - 
Profit from 
 associates 
 and joint 
 ventures               -         -        91         -          -         -          -         -         -          - 
---------------  --------  --------  --------  --------  ---------  --------  ---------  --------  --------  --------- 
Underlying 
 profit before 
 taxation             274        88       130        27        155       128          3        98        86        124 
---------------  --------  --------  --------  --------  ---------  --------  ---------  --------  --------  --------- 
Total assets 
 employed         170,036    65,985    38,548    22,780     95,651    30,613      5,492    20,929   213,255     61,700 
  Of which: 
   loans 
   and advances 
   to 
   customers(1)    84,187    43,499    16,688    11,227     58,445    16,624      1,938     9,351    43,445     19,179 
Total 
 liabilities 
 employed         161,158    56,681    33,636    21,889     99,231    22,862      4,346    16,472   150,249     77,142 
  Of which: 
   customer 
   accounts(1)    133,000    43,900    24,159    18,915     71,765    14,621      2,815    12,330    95,933     35,475 
Underlying 
 return on 
 tangible 
 equity (%)          12.7      11.6      12.4      11.6       13.2      12.6        2.1      17.4       5.6       16.9 
Cost to income 
 ratio (%)           57.8      66.3      70.3      76.4       65.4      58.8       91.7      62.6      74.3       55.9 
---------------  --------  --------  --------  --------  ---------  --------  ---------  --------  --------  --------- 
 

Page 23

Supplementary financial information continued

 
                                                                 3Q'21 
---------------  ----------------------------------------------------------------------------------------------------- 
                     Hong 
                     Kong     Korea     China    Taiwan  Singapore     India  Indonesia       UAE        UK         US 
                 $million  $million  $million  $million   $million  $million   $million  $million  $million   $million 
---------------  --------  --------  --------  --------  ---------  --------  ---------  --------  --------  --------- 
Operating 
 income               846       270       271       126        435       392         51       144       190        214 
Operating 
 expenses           (507)     (173)     (184)      (91)      (264)     (186)       (44)      (90)     (163)      (126) 
---------------  --------  --------  --------  --------  ---------  --------  ---------  --------  --------  --------- 
Operating 
 profit 
 before 
 impairment 
 losses and 
 taxation             339        97        87        35        171       206          7        54        27         88 
Credit 
 impairment           (4)      (15)       (4)       (2)         21      (20)        (1)         1        11          3 
Other 
 impairment             -         -         -         -        (1)         -          -         -        22          - 
Profit from 
 associates 
 and joint 
 ventures               -         -        46         -          -         -          -         -       (1)          - 
---------------  --------  --------  --------  --------  ---------  --------  ---------  --------  --------  --------- 
Underlying 
 profit before 
 taxation             335        82       129        33        191       186          6        55        59         91 
---------------  --------  --------  --------  --------  ---------  --------  ---------  --------  --------  --------- 
Total assets 
 employed         177,271    65,976    36,182    23,634     92,456    29,200      4,947    18,896   185,498     75,029 
  Of which: 
   loans 
   and advances 
   to 
   customers(1)    88,452    45,993    17,698    11,673     57,575    16,234      2,038     9,373    49,901     17,478 
Total 
 liabilities 
 employed         167,434    57,062    33,501    21,258     90,726    21,144      3,794    14,462   138,547     76,600 
  Of which: 
   customer 
   accounts(1)    138,644    44,687    25,566    19,918     69,508    15,597      2,583    11,542    84,562     43,502 
Underlying 
 return on 
 tangible 
 equity (%)          15.1       9.3      12.2      12.9       14.4      15.0        3.7       9.4       3.8       12.8 
Cost to income 
 ratio (%)           59.9      64.1      67.9      72.2       60.7      47.4       86.3      62.5      85.8       58.9 
---------------  --------  --------  --------  --------  ---------  --------  ---------  --------  --------  --------- 
 

1 Loans and advances to customers includes FVTPL and customer accounts includes FVTPL and repurchase agreements

Quarterly underlying operating income by product

 
                             3Q'22       2Q'22       1Q'22       4Q'21       3Q'21       2Q'21       1Q'21       4Q'20 
                          $million    $million    $million    $million    $million    $million    $million    $million 
----------------------  ----------  ----------  ----------  ----------  ----------  ----------  ----------  ---------- 
Transaction Banking          1,082         835         740         730         734         709         713         707 
                        ----------  ----------  ----------  ----------  ----------  ----------  ----------  ---------- 
  Trade & Working 
   capital 
   (1, 2)                      344         343         362         348         389         363         347         304 
  Cash Management              738         492         378         382         345         346         366         403 
                        ----------  ----------  ----------  ----------  ----------  ----------  ----------  ---------- 
Financial Markets            1,540       1,373       1,723       1,012       1,311       1,268       1,308         949 
                        ----------  ----------  ----------  ----------  ----------  ----------  ----------  ---------- 
  Macro Trading                734         664         940         433         540         571         672         435 
  Credit Markets(2)            440         374         460         361         516         484         429         404 
     Credit Trading            156          87         110          60         144         102         131         119 
     Financing 
      Solutions & 
      Issuance(2)              284         287         350         301         372         382         298         285 
  Structured Finance           116         102          94         104         159         128         100         102 
  Financing & 
   Securities 
   Services(2)                 195         198         144          97          97          86         107          77 
  DVA                           55          35          85          17         (1)         (1)           -        (69) 
                        ----------  ----------  ----------  ----------  ----------  ----------  ----------  ---------- 
Lending & Portfolio 
 Management(1,2)               166         136         146         184         214         188         173         168 
Wealth Management              455         458         530         466         559         554         646         442 
Retail Products              1,109         955         849         835         828         846         849         848 
                        ----------  ----------  ----------  ----------  ----------  ----------  ----------  ---------- 
  CCPL & other 
   unsecured 
   lending                     301         313         305         316         316         320         320         303 
  Deposits                     625         363         248         213         205         209         233         271 
  Mortgage & Auto              141         235         247         261         260         268         247         234 
  Other Retail 
   Products                     42          44          49          45          47          49          49          40 
                        ----------  ----------  ----------  ----------  ----------  ----------  ----------  ---------- 
Treasury                       (4)         205         317         155         149         137         257          92 
Other(2)                      (30)        (36)        (31)        (52)        (30)        (13)        (17)         (7) 
----------------------  ----------  ----------  ----------  ----------  ----------  ----------  ----------  ---------- 
Total underlying 
 operating 
 income                      4,318       3,926       4,274       3,330       3,765       3,689       3,929       3,199 
----------------------  ----------  ----------  ----------  ----------  ----------  ----------  ----------  ---------- 
 

1 Following a reorganisation, there has been a reclassification of balances from Lending & Portfolio Management into Trade & Working capital including prior period numbers. Prior periods have been re-presented and there is no change in the total income

2 Income related to Group Special Asset Management, the Group's specialist recovery unit previously reported in Other products has been allocated to the relevant products. Prior periods have been re-presented and there is no change in total income.

Page 24

Supplementary financial information continued

Earnings per ordinary share

 
                                      3Q'22       3Q'21  Change       2Q'22  Change      YTD'22      YTD'21  Change 
                                   $million    $million       %    $million       %    $million    $million       % 
-------------------------------  ----------  ----------          ----------          ----------  ---------- 
Profit/(loss) for the 
 period attributable to 
 equity holders                       1,078         767      41         909      19       3,166       2,695      17 
-------------------------------  ----------  ----------  ------  ----------  ------  ----------  ----------  ------ 
Non-controlling interest                  9         (4)   nm(1)           4     125          10        (18)   nm(1) 
Dividend payable on preference 
 shares and AT1 classified 
 as equity                            (123)       (119)     (3)        (94)    (31)       (339)       (315)     (8) 
-------------------------------  ----------  ----------  ------  ----------  ------  ----------  ----------  ------ 
Profit/(loss) for the 
 period attributable to 
 ordinary shareholders                  964         644      50         819      18       2,837       2,362      20 
-------------------------------  ----------  ----------  ------  ----------  ------  ----------  ----------  ------ 
 
Items normalised: 
Restructuring                            25          99    (75)          37    (32)          70         222    (68) 
Net (gains) / losses on 
 sale of Businesses                       -        (20)   nm(1)           -   nm(1)           -        (20)   nm(1) 
Tax on normalised items                (13)         (7)    (86)         (5)   (160)        (21)        (22)       5 
-------------------------------  ----------  ----------  ------  ----------  ------  ----------  ----------  ------ 
Underlying profit/(loss)                976         716      36         851      15       2,886       2,542      14 
-------------------------------  ----------  ----------  ------  ----------  ------  ----------  ----------  ------ 
 
Basic - Weighted average 
 number of shares (millions)          2,949       3,105   nm(1)       3,014   nm(1)       2,992       3,124   nm(1) 
Diluted - Weighted average 
 number of shares (millions)          3,011       3,152   nm(1)       3,069   nm(1)       3,050       3,174   nm(1) 
-------------------------------  ----------  ----------  ------  ----------  ------  ----------  ----------  ------ 
Basic earnings per ordinary 
 share (cents)(2)                      32.7        20.7      12        27.2     5.5        94.8        75.6    19.2 
-------------------------------  ----------  ----------  ------  ----------  ------  ----------  ----------  ------ 
Diluted earnings per ordinary 
 share (cents)(2)                      32.0        20.4    11.6        26.7     5.3        93.0        74.4    18.6 
-------------------------------  ----------  ----------  ------  ----------  ------  ----------  ----------  ------ 
Underlying basic earnings 
 per ordinary share (cents)(2)         33.1        23.1      10        28.2     4.9        96.5        81.4    15.1 
-------------------------------  ----------  ----------  ------  ----------  ------  ----------  ----------  ------ 
Underlying diluted earnings 
 per ordinary share (cents)(2)         32.4        22.7     9.7        27.7     4.7        94.6        80.1    14.5 
-------------------------------  ----------  ----------  ------  ----------  ------  ----------  ----------  ------ 
 
   1      Not meaningful 

2 Change is the percentage points difference between the two periods rather than the percentage change

Page 25

Supplementary financial information continued

Return on Tangible Equity

 
                                      3Q'22             Change       2Q'22  Change      YTD'22             Change 
                                              3Q'21(1)                                          YTD'21(1) 
                                   $million   $million       %    $million       %    $million   $million       % 
-------------------------------  ----------  ---------          ----------          ----------  --------- 
Average parent company 
 Shareholders' Equity                43,592     46,709     (7)      44,617     (2)      44,600     46,399     (4) 
Less Preference share 
 premium                            (1,494)    (1,494)       -     (1,494)       -     (1,494)    (1,494)       - 
Less Average intangible 
 assets                             (5,529)    (5,267)     (5)     (5,519)       -     (5,511)    (5,155)     (7) 
-------------------------------  ----------  ---------  ------  ----------  ------  ----------  ---------  ------ 
Average Ordinary Shareholders' 
 Tangible Equity                     36,569     39,948     (8)      37,604     (3)      37,595     39,750     (5) 
-------------------------------  ----------  ---------  ------  ----------  ------  ----------  ---------  ------ 
 
Profit/(loss) for the 
 period attributable to 
 equity holders                       1,078        767      41         909      19       3,166      2,695      17 
-------------------------------  ----------  ---------  ------  ----------  ------  ----------  ---------  ------ 
Non-controlling interests                 9        (4)   nm(2)           4     125          10       (18)   nm(2) 
Dividend payable on preference 
 shares and AT1 classified 
 as equity                            (123)      (119)     (3)        (94)    (31)       (339)      (315)     (8) 
-------------------------------  ----------  ---------  ------  ----------  ------  ----------  ---------  ------ 
Profit/(loss) for the 
 period attributable to 
 ordinary shareholders                  964        644      50         819      18       2,837      2,362      20 
-------------------------------  ----------  ---------  ------  ----------  ------  ----------  ---------  ------ 
 
Items normalised: 
Restructuring                            25         99    (75)          37    (32)          70        222    (68) 
Net gain on sale of businesses            -       (20)   nm(2)           -   nm(2)           -       (20)   nm(2) 
Ventures FVOCI unrealised 
 gains/(losses) net of 
 tax                                   (49)       (78)      37        (15)   nm(2)        (57)         38   nm(2) 
Tax on normalised items                (13)        (7)    (86)         (5)   (160)        (21)       (22)       5 
-------------------------------  ----------  ---------  ------  ----------  ------  ----------  ---------  ------ 
Underlying profit for 
 the period attributable 
 to ordinary shareholders(3)            927        638      45         836      11       2,829      2,580      10 
-------------------------------  ----------  ---------  ------  ----------  ------  ----------  ---------  ------ 
 
Underlying Return on Tangible 
 Equity                               10.1%       6.3%  380bps        8.9%  120bps       10.1%       8.7%  140bps 
-------------------------------  ----------  ---------  ------  ----------  ------  ----------  ---------  ------ 
Statutory Return on Tangible 
 Equity                               10.5%       6.4%  410bps        8.7%  180bps       10.1%       7.9%  220bps 
-------------------------------  ----------  ---------  ------  ----------  ------  ----------  ---------  ------ 
 
   1      Comparatives have been restated to include unrealised gains/(losses) from Ventures FVOCI 
   2      Not meaningful 
   3      Includes unrealised gains/(losses) from Ventures FVOCI 

Net Tangible Asset Value per Share

 
                                        30.09.22    30.09.21  Change    30.06.22  Change    31.12.21  Change 
                                        $million    $million       %    $million       %    $million       % 
------------------------------------  ----------  ----------          ----------          ---------- 
Parent company shareholders' 
 equity                                   43,127      46,666     (8)      44,055     (2)      46,011     (6) 
Less Preference share premium            (1,494)     (1,494)       -     (1,494)       -     (1,494)       - 
Less Intangible assets                   (5,520)     (5,347)     (3)     (5,537)       -     (5,471)     (1) 
------------------------------------  ----------  ----------  ------  ----------  ------  ----------  ------ 
Net shareholders tangible equity          36,113      39,825     (9)      37,024     (2)      39,046     (8) 
------------------------------------  ----------  ----------  ------  ----------  ------  ----------  ------ 
Ordinary shares in issue, excluding 
 own shares (millions)                     2,905       3,078     (6)       2,967     (2)       3,057     (5) 
------------------------------------  ----------  ----------  ------  ----------  ------  ----------  ------ 
Net Tangible Asset Value per 
 share (cents)(1)                          1,243       1,294    (51)       1,248     (5)       1,277    (34) 
------------------------------------  ----------  ----------  ------  ----------  ------  ----------  ------ 
 
   1      Change is cents difference between the two periods rather than the percentage change 

Page 26

Underlying versus statutory results reconciliations

Reconciliations between underlying and statutory results are set out in the tables below:

Operating income by client segment

 
                                                         3Q'22 
----------------------------  ------------------------------------------------------------ 
                                                Consumer, 
                                    Corporate,    Private               Central 
                                    Commercial          &                     & 
                               & Institutional   Business                 other 
                                       Banking    Banking   Ventures      items      Total 
                                      $million   $million   $million   $million   $million 
----------------------------  ----------------  ---------  ---------  ---------  --------- 
Underlying operating income              2,745      1,600         10       (37)      4,318 
Restructuring                               10          -          -          1         11 
Other items                                  -          -          -          -          - 
----------------------------  ----------------  ---------  ---------  ---------  --------- 
Statutory operating income               2,755      1,600         10       (36)      4,329 
----------------------------  ----------------  ---------  ---------  ---------  --------- 
 
 
                                                      3Q'21 (Restated)(1) 
----------------------------  ------------------------------------------------------------------- 
                                                   Consumer, 
                                                     Private 
                                                           & 
                                                                              Central 
                                                    Business                        & 
                                    Corporate, 
                                    Commercial 
                               & Institutional                                  other 
                                    Banking(1)    Banking(1)  Ventures(1)    items(1)       Total 
                                      $million      $million     $million    $million    $million 
----------------------------  ----------------  ------------  -----------  ----------  ---------- 
Underlying operating income              2,226         1,431            -         108       3,765 
Restructuring                             (12)             -            -         (9)        (21) 
Other items                                  -             -           20           -          20 
----------------------------  ----------------  ------------  -----------  ----------  ---------- 
Statutory operating income               2,214         1,431           20          99       3,764 
----------------------------  ----------------  ------------  -----------  ----------  ---------- 
 

1 Following the increased strategic importance and reporting of Ventures to management, this has been established as a separate operating segment in 2022 Prior periods have been restated

Operating income by region

 
                                                      3Q'22 
----------------------------  ------------------------------------------------------ 
                                             Africa               Central 
                                                  &     Europe          & 
                                             Middle          &      other 
                                   Asia        East   Americas      items      Total 
                               $million    $million   $million   $million   $million 
----------------------------  ---------  ----------  ---------  ---------  --------- 
Underlying operating income       2,984         652        632         50      4,318 
Restructuring                         5           -          -          6         11 
Other items                           -           -          -          -          - 
----------------------------  ---------  ----------  ---------  ---------  --------- 
Statutory operating income        2,989         652        632         56      4,329 
----------------------------  ---------  ----------  ---------  ---------  --------- 
 
 
                                                      3Q'21 
----------------------------  ------------------------------------------------------ 
                                             Africa               Central 
                                                  &     Europe          & 
                                             Middle          &      other 
                                   Asia        East   Americas      items      Total 
                               $million    $million   $million   $million   $million 
----------------------------  ---------  ----------  ---------  ---------  --------- 
Underlying operating income       2,629         657        514       (35)      3,765 
Restructuring                         -           -          -       (21)       (21) 
Other items                           -           -          -         20         20 
----------------------------  ---------  ----------  ---------  ---------  --------- 
Statutory operating income        2,629         657        514       (36)      3,764 
----------------------------  ---------  ----------  ---------  ---------  --------- 
 

Page 27

Underlying versus statutory results reconciliations continued

Profit before taxation (PBT)

 
                                                                   3Q'22 
------------------------------------------  ---------------------------------------------------- 
                                                                             Net gain 
                                                                        on businesses 
                                                                            disposed/ 
                                                                             held for 
                                            Underlying  Restructuring            sale  Statutory 
                                              $million       $million        $million   $million 
------------------------------------------  ----------  -------------  --------------  --------- 
Operating income                                 4,318             11               -      4,329 
Operating expenses                             (2,659)           (37)               -    (2,696) 
------------------------------------------  ----------  -------------  --------------  --------- 
Operating profit/(loss) before impairment 
 losses and taxation                             1,659           (26)               -      1,633 
Credit impairment                                (227)              -               -      (227) 
Other impairment                                  (32)              1               -       (31) 
Profit from associates and joint ventures           16              -               -         16 
------------------------------------------  ----------  -------------  --------------  --------- 
Profit/(loss) before taxation                    1,416           (25)               -      1,391 
------------------------------------------  ----------  -------------  --------------  --------- 
 
 
                                                                   3Q'21 
------------------------------------------  ---------------------------------------------------- 
                                                                             Net gain 
                                                                        on businesses 
                                                                            disposed/ 
                                                                             held for 
                                            Underlying  Restructuring            sale  Statutory 
                                              $million       $million        $million   $million 
------------------------------------------  ----------  -------------  --------------  --------- 
Operating income                                 3,765           (21)              20      3,764 
Operating expenses                             (2,594)           (53)               -    (2,647) 
------------------------------------------  ----------  -------------  --------------  --------- 
Operating profit/(loss) before impairment 
 losses and taxation                             1,171           (74)              20      1,117 
Credit impairment                                (107)            (1)               -      (108) 
Other impairment                                  (35)           (24)               -       (59) 
Profit from associates and joint ventures           46              -               -         46 
------------------------------------------  ----------  -------------  --------------  --------- 
Profit/(loss) before taxation                    1,075           (99)              20        996 
------------------------------------------  ----------  -------------  --------------  --------- 
 

Profit before taxation (PBT) by client segment

 
                                                              3Q'22 
---------------------------------  ------------------------------------------------------------ 
                                                     Consumer, 
                                         Corporate,    Private               Central 
                                         Commercial          &                     & 
                                    & Institutional   Business                 other 
                                            Banking    Banking   Ventures      items      Total 
                                           $million   $million   $million   $million   $million 
---------------------------------  ----------------  ---------  ---------  ---------  --------- 
Operating income                              2,745      1,600         10       (37)      4,318 
                                   ----------------  ---------  ---------  ---------  --------- 
  External                                    2,405      1,287         10        616      4,318 
  Inter-segment                                 340        313          -      (653)          - 
                                   ----------------  ---------  ---------  ---------  --------- 
Operating expenses                          (1,347)    (1,035)       (87)      (190)    (2,659) 
---------------------------------  ----------------  ---------  ---------  ---------  --------- 
Operating profit/(loss) before 
 impairment losses and taxation               1,398        565       (77)      (227)      1,659 
Credit impairment                              (82)       (87)        (4)       (54)      (227) 
Other impairment                               (31)          -          -        (1)       (32) 
Profit from associates and joint 
 ventures                                         -          -        (4)         20         16 
---------------------------------  ----------------  ---------  ---------  ---------  --------- 
Underlying profit/(loss) before 
 taxation                                     1,285        478       (85)      (262)      1,416 
Restructuring                                     2       (22)          -        (5)       (25) 
Other items                                       -          -          -          -          - 
---------------------------------  ----------------  ---------  ---------  ---------  --------- 
Statutory profit/(loss) before 
 taxation                                     1,287        456       (85)      (267)      1,391 
---------------------------------  ----------------  ---------  ---------  ---------  --------- 
 

Page 28

Underlying versus statutory results reconciliations continued

 
                                                         3Q'21 (Restated)(1) 
---------------------------------  ---------------------------------------------------------------- 
                                                       Consumer, 
                                         Corporate,      Private                 Central 
                                         Commercial            &                       & 
                                    & Institutional     Business                   other 
                                         Banking(1)   Banking(1)  Ventures(1)   items(1)      Total 
                                           $million     $million     $million   $million   $million 
---------------------------------  ----------------  -----------  -----------  ---------  --------- 
Operating income                              2,226        1,431            -        108      3,765 
                                   ----------------  -----------  -----------  ---------  --------- 
  External                                    2,115        1,349            -        301      3,765 
  Inter-segment                                 111           82            -      (193)          - 
                                   ----------------  -----------  -----------  ---------  --------- 
Operating expenses                          (1,304)      (1,065)         (60)      (165)    (2,594) 
---------------------------------  ----------------  -----------  -----------  ---------  --------- 
Operating profit/(loss) before 
 impairment losses and taxation                 922          366         (60)       (57)      1,171 
Credit impairment                              (24)         (73)          (1)        (9)      (107) 
Other impairment                               (30)            -            -        (5)       (35) 
Profit from associates and joint 
 ventures                                         -            -          (1)         47         46 
---------------------------------  ----------------  -----------  -----------  ---------  --------- 
Underlying profit/(loss) before 
 taxation                                       868          293         (62)       (24)      1,075 
Restructuring                                  (32)         (10)            -       (57)       (99) 
Other items                                       -            -           20          -         20 
---------------------------------  ----------------  -----------  -----------  ---------  --------- 
Statutory profit/(loss) before 
 taxation                                       836          283         (42)       (81)        996 
---------------------------------  ----------------  -----------  -----------  ---------  --------- 
 

1 Following the increased strategic importance and reporting of Ventures to management, this has been established as a separate operating segment in 2022. Prior periods have been restated

Profit before taxation (PBT) by region

 
                                                           3Q'22 
---------------------------------  ------------------------------------------------------ 
                                                  Africa               Central 
                                                       &     Europe          & 
                                                  Middle          &      other 
                                        Asia        East   Americas      items      Total 
                                    $million    $million   $million   $million   $million 
---------------------------------  ---------  ----------  ---------  ---------  --------- 
Operating income                       2,984         652        632         50      4,318 
Operating expenses                   (1,715)       (423)      (374)      (147)    (2,659) 
---------------------------------  ---------  ----------  ---------  ---------  --------- 
Operating profit/(loss) before 
 impairment losses and taxation        1,269         229        258       (97)      1,659 
Credit impairment                      (193)        (68)         34          -      (227) 
Other impairment                        (33)           2          1        (2)       (32) 
Profit from associates and joint 
 ventures                                 20           -          -        (4)         16 
---------------------------------  ---------  ----------  ---------  ---------  --------- 
Underlying profit/(loss) before 
 taxation                              1,063         163        293      (103)      1,416 
Restructuring                           (18)         (1)        (2)        (4)       (25) 
Other items                                -           -          -          -          - 
---------------------------------  ---------  ----------  ---------  ---------  --------- 
Statutory profit/(loss) before 
 taxation                              1,045         162        291      (107)      1,391 
---------------------------------  ---------  ----------  ---------  ---------  --------- 
 
 
                                                           3Q'21 
---------------------------------  ------------------------------------------------------ 
                                                  Africa               Central 
                                                       &     Europe          & 
                                                  Middle          &      other 
                                        Asia        East   Americas      items      Total 
                                    $million    $million   $million   $million   $million 
---------------------------------  ---------  ----------  ---------  ---------  --------- 
Operating income                       2,629         657        514       (35)      3,765 
Operating expenses                   (1,661)       (401)      (350)      (182)    (2,594) 
---------------------------------  ---------  ----------  ---------  ---------  --------- 
Operating profit/(loss) before 
 impairment losses and taxation          968         256        164      (217)      1,171 
Credit impairment                       (84)        (33)         11        (1)      (107) 
Other impairment                         (2)         (1)       (14)       (18)       (35) 
Profit from associates and joint 
 ventures                                 45           -          -          1         46 
---------------------------------  ---------  ----------  ---------  ---------  --------- 
Underlying profit/(loss) before 
 taxation                                927         222        161      (235)      1,075 
Restructuring                           (36)         (7)       (27)       (29)       (99) 
Other items                                -           -          -         20         20 
---------------------------------  ---------  ----------  ---------  ---------  --------- 
Statutory profit/(loss) before 
 taxation                                891         215        134      (244)        996 
---------------------------------  ---------  ----------  ---------  ---------  --------- 
 

Page 29

Underlying versus statutory results reconciliations continued

Return on tangible equity (RoTE)

 
                                                                   3Q'22 
-----------------------------------------  ----------------------------------------------------- 
                                                             Consumer, 
                                                 Corporate,    Private            Central 
                                                 Commercial          &                  & 
                                            & Institutional   Business              Other 
                                                    Banking    Banking  Ventures    Items  Total 
                                                          %          %         %        %      % 
-----------------------------------------  ----------------  ---------  --------  -------  ----- 
Underlying RoTE                                        17.5       19.2        nm   (15.6)   10.1 
Restructuring 
  Of which: Income                                      0.2          -         -      0.1    0.1 
  Of which: Expenses                                  (0.2)      (1.2)         -    (0.2)  (0.4) 
  Of which: Credit impairment                             -          -         -        -      - 
  Of which: Other impairment                              -          -         -    (0.1)      - 
  Of which: Profit from associates 
   and joint ventures                                     -          -         -     0.01      - 
Ventures FVOCI Unrealised gains/(losses) 
 net of taxes                                             -          -        nm        -    0.5 
Tax on normalised items                                 0.1        0.3         -      0.5    0.2 
-----------------------------------------  ----------------  ---------  --------  -------  ----- 
Statutory RoTE                                         17.6       18.3        nm   (15.2)   10.5 
-----------------------------------------  ----------------  ---------  --------  -------  ----- 
 
 
                                                              3Q'21 (Restated)(1) 
-----------------------------------------  ---------------------------------------------------------- 
                                                               Consumer, 
                                                 Corporate,      Private               Central 
                                                 Commercial            &                     & 
                                            & Institutional     Business                 Other 
                                                 Banking(1)   Banking(1)  Ventures(1)    Items  Total 
                                                          %            %            %        %      % 
-----------------------------------------  ----------------  -----------  -----------  -------  ----- 
Underlying RoTE                                        10.6         11.2           nm    (5.6)    6.3 
Restructuring 
  Of which: Income                                    (0.2)            -            -    (0.5)  (0.2) 
  Of which: Expenses                                  (0.4)        (0.5)            -    (1.1)  (0.5) 
  Of which: Credit impairment                             -            -            -        -      - 
  Of which: Other impairment                              -            -            -    (1.4)  (0.2) 
  Of which: Profit from associates 
   and joint ventures                                     -            -            -        -      - 
Ventures FVOCI Unrealised gains/(losses) 
 net of taxes                                             -            -           nm        -    0.8 
Tax on normalised items                                 0.2          0.2           nm        -      - 
-----------------------------------------  ----------------  -----------  -----------  -------  ----- 
Statutory RoTE                                         10.2         10.7           nm    (8.5)    6.4 
-----------------------------------------  ----------------  -----------  -----------  -------  ----- 
 

1 Following the increased strategic importance and reporting of Ventures to management, this has been established as a separate operating segment in 2022. Prior periods have been restated

Earnings per ordinary share (EPS)

 
                                                                 3Q'22 
----------------------------------  ---------------------------------------------------------------- 
                                                                   Net gain       Tax on 
                                                                    on sale   normalised 
                                    Underlying  Restructuring   of business        items   Statutory 
                                     $ million      $ million     $ million    $ million   $ million 
----------------------------------  ----------  -------------  ------------  -----------  ---------- 
Profit for the year attributable 
 to ordinary shareholders                  976           (25)             -           13         964 
Basic - Weighted average number 
 of shares (millions)                    2,949              -             -            -       2,949 
Basic earnings per ordinary share 
 (cents)                                  33.1              -             -            -        32.7 
----------------------------------  ----------  -------------  ------------  -----------  ---------- 
 
 
                                                                 3Q'21 
----------------------------------  ---------------------------------------------------------------- 
                                                                   Net gain       Tax on 
                                                                    on sale   normalised 
                                    Underlying  Restructuring   of business        items   Statutory 
                                     $ million      $ million     $ million    $ million   $ million 
----------------------------------  ----------  -------------  ------------  -----------  ---------- 
Profit for the year attributable 
 to ordinary shareholders                  716           (99)            20            7         644 
Basic - Weighted average number 
 of shares (millions)                    3,105              -             -            -       3,105 
Basic earnings per ordinary share 
 (cents)                                  23.1              -             -            -        20.7 
----------------------------------  ----------  -------------  ------------  -----------  ---------- 
 

Page 30

Risk review

Credit quality by client segment

 
                                                                30.09.22 
----------------  ---------------------------------------------------------------------------------------------------- 
                                                       Customers 
                             -------------------------------------------------------------- 
                                   Corporate,    Consumer, 
                                   Commercial      Private               Central 
                              & Institutional   & Business               & other   Customer       Undrawn    Financial 
                      Banks           Banking      Banking   Ventures      items      Total   commitments   Guarantees 
Amortised cost     $million          $million     $million   $million   $million   $million      $million     $million 
----------------  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
Stage 1              42,846           127,006      124,804        476     32,591    284,877       159,356       51,280 
                  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
  - Strong           30,815            88,408      120,676        473     32,591    242,148       141,763       36,981 
  - Satisfactory     12,031            38,598        4,128          3          -     42,729        17,593       14,299 
                  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
Stage 2                 431             9,478        1,972         10          -     11,460         4,359        2,718 
                  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
  - Strong              204             1,339        1,386          6          -      2,731         1,340          315 
  - Satisfactory        193             7,033          272          2          -      7,307         2,479        1,989 
  - Higher risk          34             1,106          314          2          -      1,422           540          414 
                  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
Of which (stage 
2): 
  - Less than 30 
   days past 
   due                    -               468          272          2          -        742             -            - 
  - More than 30 
   days past 
   due                    6                56          314          2          -        372             -            - 
Stage 3, 
 credit-impaired 
 financial 
 assets                  60             5,565        1,396          1        239      7,201             -          585 
----------------  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
Gross balance(1)     43,337           142,049      128,172        487     32,830    303,538       163,715       54,583 
----------------  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
Stage 1                 (6)             (145)        (348)        (4)          -      (497)          (44)         (20) 
                  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
  - Strong              (4)              (50)        (285)        (4)          -      (339)          (23)         (13) 
  - Satisfactory        (2)              (95)         (63)          -          -      (158)          (21)          (7) 
                  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
Stage 2                 (2)             (294)        (139)        (1)          -      (434)          (46)         (18) 
                  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
  - Strong                -              (11)         (52)        (1)          -       (64)           (4)            - 
  - Satisfactory        (2)             (167)         (51)          -          -      (218)          (24)          (8) 
  - Higher risk           -             (116)         (36)          -          -      (152)          (18)         (10) 
                  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
Of which (stage 
2): 
  - Less than 30 
   days past 
   due                    -               (5)         (38)          -          -       (43)             -            - 
  - More than 30 
   days past 
   due                    -                 -         (36)          -          -       (36)             -            - 
Stage 3, 
 credit-impaired 
 financial 
 assets                (14)           (3,455)        (744)        (1)       (17)    (4,217)             -        (137) 
----------------  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
Total credit 
 impairment            (22)           (3,894)      (1,231)        (6)       (17)    (5,148)          (90)        (175) 
----------------  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
Net carrying 
 value               43,315           138,155      126,941        481     32,813    298,390 
----------------  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
Stage 1                0.0%              0.1%         0.3%       0.8%       0.0%       0.2%          0.0%         0.0% 
                  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
  - Strong             0.0%              0.1%         0.2%       0.8%       0.0%       0.1%          0.0%         0.0% 
  - Satisfactory       0.0%              0.2%         1.5%       0.0%       0.0%       0.4%          0.1%         0.0% 
                  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
Stage 2                0.5%              3.1%         7.0%      10.0%       0.0%       3.8%          1.1%         0.7% 
                  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
  - Strong             0.0%              0.8%         3.8%      16.7%       0.0%       2.3%          0.3%         0.0% 
  - Satisfactory       1.0%              2.4%        18.8%       0.0%       0.0%       3.0%          1.0%         0.4% 
  - Higher risk        0.0%             10.5%        11.5%       0.0%       0.0%      10.7%          3.3%         2.4% 
                  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
Of which (stage 
2): 
  - Less than 30 
   days past 
   due                 0.0%              1.1%        14.0%       0.0%       0.0%       5.8%          0.0%         0.0% 
  - More than 30 
   days past 
   due                 0.0%              0.0%        11.5%       0.0%       0.0%       9.7%          0.0%         0.0% 
Stage 3, 
 credit-impaired 
 financial 
 assets (S3)          23.3%             62.1%        53.3%     100.0%       7.1%      58.6%          0.0%        23.4% 
----------------  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
Cover ratio            0.1%              2.7%         1.0%       1.2%       0.1%       1.7%          0.1%         0.3% 
----------------  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
 
Fair value 
through profit 
or loss 
----------------  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
Performing           25,049            52,713           34          -      2,422     55,169             -            - 
                  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
  - Strong           21,529            43,265           34          -      2,408     45,707             -            - 
  - Satisfactory      3,520             9,448            -          -         14      9,462             -            - 
  - Higher risk           -                 -            -          -          -          -             -            - 
                  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
Defaulted 
 (CG13-14)                -                52            -          -          -         52             -            - 
----------------  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
Gross balance 
 (FVTPL)(2)          25,049            52,765           34          -      2,422     55,221             -            - 
----------------  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
Net carrying 
 value (incl 
 FVTPL)              68,364           190,920      126,976        481     35,235    353,612             -            - 
----------------  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
 

1 Loans and advances includes reverse repurchase agreements and other similar secured lending of $18,032 million under Customers and of $861 million under Banks, held at amortised cost

2 Loans and advances includes reverse repurchase agreements and other similar secured lending of $47,264 million under Customers and of $20,620 million under Banks, held at fair value through profit or loss

Page 31

Risk review continued

 
                                                                30.06.22 
----------------  ---------------------------------------------------------------------------------------------------- 
                                                       Customers 
                  ---------  --------------------------------------------------------------  ------------  ----------- 
                                   Corporate,    Consumer, 
                                   Commercial      Private               Central 
                              & Institutional   & Business               & other   Customer       Undrawn    Financial 
                      Banks           Banking      Banking   Ventures      items      Total   commitments   Guarantees 
Amortised cost     $million          $million     $million   $million   $million   $million      $million     $million 
----------------  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
Stage 1              35,779           121,965      130,104        340     26,727    279,136       157,596       54,991 
                  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
  - Strong           24,145            79,442      125,633        339     26,628    232,042       140,232       40,220 
  - Satisfactory     11,634            42,523        4,471          1         99     47,094        17,364       14,771 
                  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
Stage 2                 371            10,488        1,894          5        152     12,539         5,245        2,781 
                  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
  - Strong               34             1,614        1,299          3          -      2,916         1,475          347 
  - Satisfactory        337             8,191          278          1          -      8,470         3,213        2,146 
  - Higher risk           -               683          317          1        152      1,153           557          288 
                  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
Of which (stage 
2): 
  - Less than 30 
   days past 
   due                    -                54          278          1          -        333             -            - 
  - More than 30 
   days past 
   due                    -                 8          317          1          -        326             -            - 
Stage 3, 
 credit-impaired 
 financial 
 assets                  78             5,552        1,500          1          -      7,053             -          643 
----------------  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
Gross balance(1)     36,228           138,005      133,498        346     26,879    298,728       162,841       58,415 
----------------  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
Stage 1                 (7)             (141)        (359)        (2)          -      (502)          (37)         (16) 
                  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
  - Strong              (4)              (49)        (272)        (2)          -      (323)          (22)          (8) 
  - Satisfactory        (3)              (92)         (87)          -          -      (179)          (15)          (8) 
                  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
Stage 2                 (5)             (253)        (130)          -        (2)      (385)          (42)         (16) 
                  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
  - Strong                -              (13)         (53)          -          -       (66)           (6)          (1) 
  - Satisfactory        (5)             (201)         (37)          -          -      (238)          (32)          (9) 
  - Higher risk           -              (39)         (40)          -        (2)       (81)           (4)          (6) 
                  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
Of which (stage 
2): 
  - Less than 30 
   days past 
   due                    -                 -         (37)          -          -       (37)             -            - 
  - More than 30 
   days past 
   due                    -                 -         (40)          -          -       (40)             -            - 
Stage 3, 
 credit-impaired 
 financial 
 assets                (15)           (3,575)        (758)          -          -    (4,333)             -        (190) 
----------------  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
Total credit 
 impairment            (27)           (3,969)      (1,247)        (2)        (2)    (5,220)          (79)        (222) 
----------------  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
Net carrying 
 value               36,201           134,036      132,251        344     26,877    293,508             -            - 
----------------  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
Stage 1                0.0%              0.1%         0.3%       0.6%       0.0%       0.2%          0.0%         0.0% 
                  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
  - Strong             0.0%              0.1%         0.2%       0.6%       0.0%       0.1%          0.0%         0.0% 
  - Satisfactory       0.0%              0.2%         1.9%       0.0%       0.0%       0.4%          0.1%         0.1% 
                  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
Stage 2                1.3%              2.4%         6.9%       0.0%       1.3%       3.1%          0.8%         0.6% 
                  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
  - Strong             0.0%              0.8%         4.1%       0.0%       0.0%       2.3%          0.4%         0.3% 
  - Satisfactory       1.5%              2.5%        13.3%       0.0%       0.0%       2.8%          1.0%         0.4% 
  - Higher risk        0.0%              5.7%        12.6%       0.0%       1.3%       7.0%          0.7%         2.1% 
                  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
Of which (stage 
2): 
  - Less than 30 
   days past 
   due                 0.0%              0.0%        13.3%       0.0%       0.0%      11.1%          0.0%         0.0% 
  - More than 30 
   days past 
   due                 0.0%              0.0%        12.6%       0.0%       0.0%      12.3%          0.0%         0.0% 
Stage 3, 
 credit-impaired 
 financial 
 assets (S3)          19.2%             64.4%        50.5%       0.0%       0.0%      61.4%          0.0%        29.5% 
----------------  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
Cover ratio            0.1%              2.9%         0.9%       0.6%       0.0%       1.7%          0.0%         0.4% 
----------------  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
 
Fair value 
through profit 
or loss 
----------------  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
Performing           26,439            58,280           42          -      2,639     60,961             -            - 
                  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
  - Strong           22,848            51,561           42          -      2,638     54,241             -            - 
  - Satisfactory      3,591             6,655            -          -          1      6,656             -            - 
  - Higher risk           -                64            -          -          -         64             -            - 
                  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
Defaulted 
 (CG13-14)                -                 5            -          -          -          5             -            - 
----------------  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
Gross balance 
 (FVTPL)(2)          26,439            58,285           42          -      2,639     60,966             -            - 
----------------  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
Net carrying 
 value (incl 
 FVTPL)              62,640           192,321      132,293        344     29,516    354,474             -            - 
----------------  ---------  ----------------  -----------  ---------  ---------  ---------  ------------  ----------- 
 

1 Loans and advances includes reverse repurchase agreements and other similar secured lending of $7,894 million under Customers and of $795 million under Banks, held at amortised cost

2 Loans and advances includes reverse repurchase agreements and other similar secured lending of $52,521 million under Customers and of $21,877 million under Banks, held at fair value through profit or loss

Page 32

Risk review continued

Credit impairment charge

 
                                                                        9 months ended 30.09.21 
                                    9 months ended 30.09.22                   (Restated)(1) 
-----------------------------  ----------------------------------  ---------------------------------- 
                                  Stage 1                             Stage 1 
                                      & 2     Stage 3       Total         & 2     Stage 3       Total 
                                 $million    $million    $million    $million    $million    $million 
-----------------------------  ----------  ----------  ----------  ----------  ----------  ---------- 
Ongoing business portfolio 
Corporate, Commercial 
 & Institutional Banking               32         246         278        (51)        (61)       (112) 
Consumer, Private & Business 
 Banking                              104          62         166        (31)         197         166 
Ventures(1)                             6           1           7           1           -           1 
Central & other items                  26          17          43           6         (1)           5 
-----------------------------  ----------  ----------  ----------  ----------  ----------  ---------- 
Credit impairment charge              168         326         494        (75)         135          60 
Restructuring business 
 portfolio 
Others                                (4)           -         (4)         (3)           -         (3) 
-----------------------------  ----------  ----------  ----------  ----------  ----------  ---------- 
Credit impairment charge              (4)           -         (4)         (3)           -         (3) 
-----------------------------  ----------  ----------  ----------  ----------  ----------  ---------- 
Total credit impairment 
 charge                               164         326         490        (78)         135          57 
-----------------------------  ----------  ----------  ----------  ----------  ----------  ---------- 
 

1 Following the increased strategic importance and reporting of Ventures to management, this has been established as a separate operating segment in 2022. Prior period has been restated.

COVID-19 relief measures

 
                                                                      Total(1) 
-----------------------------------------------------------  -------------------------- 
                                                             Outstanding           % of 
Segment                                                         $million   portfolio(2) 
-----------------------------------------------------------  -----------  ------------- 
Credit card & Personal loans                                           5           0.0% 
Mortgages & Auto                                                      73           0.1% 
Business Banking                                                     131           1.3% 
-----------------------------------------------------------  -----------  ------------- 
Total Consumer, Private & Business Banking at 30 September 
 2022                                                                209           0.2% 
-----------------------------------------------------------  -----------  ------------- 
Total Consumer, Private & Business Banking at 30 June 
 2022                                                                280           0.2% 
-----------------------------------------------------------  -----------  ------------- 
 

1 All of the outstanding COVID-19 payment-related measures at 30 September 2022 and 30 June 2022 are within the Asia region, mainly in Hong Kong, China and India

2 Percentage of portfolio represents the outstanding amount as a percentage of the gross loans and advances to customers by product and segment

Page 33

Risk review continued

Vulnerable and cyclical sector

Maximum exposure

 
                                                                    30.09.22 
-------------------------  ------------------------------------------------------------------------------------------- 
                                Maximum 
                             On Balance 
                                  Sheet                                Undrawn     Financial                     Total 
                               Exposure                      Net   Commitments    Guarantees    Net Off           On & 
                                   (net               On Balance       (net of          (net    Balance    Off-Balance 
                              of credit                    Sheet        credit     of credit      Sheet          Sheet 
                            impairment)  Collateral     Exposure   impairment)   impairment)   Exposure   Net Exposure 
Amortised Cost                 $million    $million     $million      $million      $million   $million       $million 
-------------------------  ------------  ----------  -----------  ------------  ------------  ---------  ------------- 
Industry: 
Aviation(1)                       2,867       1,654        1,213         1,420           620      2,040          3,253 
Commodity Traders                 8,880         180        8,700         2,466         6,172      8,638         17,338 
Metals & Mining                   4,338         320        4,018         3,180           788      3,968          7,986 
Construction                      2,719         516        2,203         2,207         5,861      8,068         10,271 
Commercial Real Estate           15,511       6,715        8,796         6,418           243      6,661         15,457 
Hotels & Tourism                  2,124         602        1,522         1,282           137      1,419          2,941 
Oil & Gas                         6,424         744        5,680         7,745         6,071     13,816         19,496 
-------------------------  ------------  ----------  -----------  ------------  ------------  ---------  ------------- 
Total                            42,863      10,731       32,132        24,718        19,892     44,610         76,742 
-------------------------  ------------  ----------  -----------  ------------  ------------  ---------  ------------- 
Total Corporate, 
 Commercial 
 & Institutional Banking        138,155      31,770      106,385        95,513        47,343    142,856        249,241 
-------------------------  ------------  ----------  -----------  ------------  ------------  ---------  ------------- 
Total Group                     341,705     135,274      206,431       163,625        54,408    218,033        424,464 
-------------------------  ------------  ----------  -----------  ------------  ------------  ---------  ------------- 
 
 
                                                                    30.06.22 
-------------------------  ------------------------------------------------------------------------------------------- 
                                Maximum 
                             On Balance 
                                  Sheet                                Undrawn     Financial                     Total 
                               Exposure                      Net   Commitments    Guarantees    Net Off           On & 
                                   (net               On Balance       (net of       (net of    Balance    Off-Balance 
                              of credit                    Sheet        credit        credit      Sheet          Sheet 
                            impairment)  Collateral     Exposure   impairment)   impairment)   Exposure   Net Exposure 
Amortised Cost                 $million    $million     $million      $million      $million   $million       $million 
-------------------------  ------------  ----------  -----------  ------------  ------------  ---------  ------------- 
Industry: 
Aviation(1)                       3,114       1,648        1,466         1,445           735      2,180          3,646 
Commodity Traders                 8,575         332        8,243         3,094         8,745     11,839         20,082 
Metals & Mining                   4,061         385        3,676         3,271           729      4,000          7,676 
Construction(2)                   3,100         609        2,491         2,115         6,036      8,151         10,642 
Commercial Real Estate           16,601       7,118        9,483         6,618           249      6,867         16,350 
Hotels & Tourism                  2,087         812        1,275         1,564           137      1,701          2,976 
Oil & Gas                         7,379         902        6,477         8,214         7,321     15,535         22,012 
-------------------------  ------------  ----------  -----------  ------------  ------------  ---------  ------------- 
Total                            44,917      11,806       33,111        26,321        23,952     50,273         83,384 
-------------------------  ------------  ----------  -----------  ------------  ------------  ---------  ------------- 
Total Corporate, 
 Commercial 
 & Institutional Banking        134,036      24,522      109,514        97,559        51,066    148,625        258,139 
-------------------------  ------------  ----------  -----------  ------------  ------------  ---------  ------------- 
Total Group                     329,709     132,910      196,799       162,762        58,193    220,955        417,754 
-------------------------  ------------  ----------  -----------  ------------  ------------  ---------  ------------- 
 

1 In addition to the aviation sector loan exposures, the Group owns $3.2 billion (30 June 2022: $3.4 billion) of aircraft under operating leases.

   2      Included cyclical sector and represented 

Page 34

Risk review continued

Loans and advances by stage

 
                                                                           30.09.22 
--------------  ------------------------------------------------------------------------------------------------------------------------------ 
                           Stage 1                         Stage 2                         Stage 3                          Total 
                ------------------------------  ------------------------------  ------------------------------  ------------------------------ 
                               Total       Net                 Total       Net                 Total       Net                 Total       Net 
                   Gross      Credit  Carrying     Gross      Credit  Carrying     Gross      Credit  Carrying     Gross      Credit  Carrying 
Amortised        Balance  Impairment    Amount   Balance  Impairment    Amount   Balance  Impairment    Amount   Balance  Impairment    Amount 
 Cost           $million    $million  $million  $million    $million  $million  $million    $million  $million  $million    $million  $million 
--------------  --------  ----------  --------  --------  ----------  --------  --------  ----------  --------  --------  ----------  -------- 
Industry: 
Aviation           2,110         (1)     2,109       605         (3)       602       195        (39)       156     2,910        (43)     2,867 
Commodity 
 Traders           8,454         (5)     8,449       331         (6)       325       598       (492)       106     9,383       (503)     8,880 
Metals & 
 Mining            3,973         (2)     3,971       287         (4)       283       231       (147)        84     4,491       (153)     4,338 
Construction       2,122        (12)     2,110       522         (8)       514       486       (391)        95     3,130       (411)     2,719 
Commercial 
 Real Estate      13,204        (80)    13,124     1,849       (117)     1,732     1,259       (604)       655    16,312       (801)    15,511 
Hotels & 
 Tourism           1,539         (4)     1,535       397         (4)       393       249        (53)       196     2,185        (61)     2,124 
Oil & Gas          5,755         (8)     5,747       435         (7)       428       695       (446)       249     6,885       (461)     6,424 
--------------  --------  ----------  --------  --------  ----------  --------  --------  ----------  --------  --------  ----------  -------- 
Total             37,157       (112)    37,045     4,426       (149)     4,277     3,713     (2,172)     1,541    45,296     (2,433)    42,863 
--------------  --------  ----------  --------  --------  ----------  --------  --------  ----------  --------  --------  ----------  -------- 
Total 
 Corporate, 
 Commercial 
 & 
 Institutional 
 Banking         127,006       (145)   126,861     9,478       (294)     9,184     5,565     (3,455)     2,110   142,049     (3,894)   138,155 
--------------  --------  ----------  --------  --------  ----------  --------  --------  ----------  --------  --------  ----------  -------- 
Total Group      327,724       (503)   327,221    11,891       (436)    11,455     7,261     (4,231)     3,030   346,875     (5,170)   341,705 
--------------  --------  ----------  --------  --------  ----------  --------  --------  ----------  --------  --------  ----------  -------- 
 
 
                                                                             30.06.22 
----------------  ------------------------------------------------------------------------------------------------------------------------------ 
                             Stage 1                         Stage 2                         Stage 3                          Total 
                  ------------------------------  ------------------------------  ------------------------------  ------------------------------ 
                                 Total       Net                 Total       Net                 Total       Net                 Total       Net 
                     Gross      Credit  Carrying     Gross      Credit  Carrying     Gross      Credit  Carrying     Gross      Credit  Carrying 
Amortised          Balance  Impairment    Amount   Balance  Impairment    Amount   Balance  Impairment    Amount   Balance  Impairment    Amount 
 Cost             $million    $million  $million  $million    $million  $million  $million    $million  $million  $million    $million  $million 
----------------  --------  ----------  --------  --------  ----------  --------  --------  ----------  --------  --------  ----------  -------- 
Industry: 
Aviation             2,193         (2)     2,191       758         (1)       757       213        (47)       166     3,164        (50)     3,114 
Commodity 
 Traders             8,012         (6)     8,006       254         (3)       251       866       (548)       318     9,132       (557)     8,575 
Metals & Mining      3,624         (2)     3,622       353        (11)       342       212       (115)        97     4,189       (128)     4,061 
Construction(1)      2,540         (2)     2,538       425         (6)       419       539       (396)       143     3,504       (404)     3,100 
Commercial 
 Real Estate        14,196        (63)    14,133     2,212        (82)     2,130       841       (503)       338    17,249       (648)    16,601 
Hotels & Tourism     1,463         (2)     1,461       430         (5)       425       262        (61)       201     2,155        (68)     2,087 
Oil & Gas            6,413         (6)     6,407       718        (12)       706       506       (240)       266     7,637       (258)     7,379 
----------------  --------  ----------  --------  --------  ----------  --------  --------  ----------  --------  --------  ----------  -------- 
Total               38,441        (83)    38,358     5,150       (120)     5,030     3,439     (1,910)     1,529    47,030     (2,113)    44,917 
----------------  --------  ----------  --------  --------  ----------  --------  --------  ----------  --------  --------  ----------  -------- 
Total Corporate, 
 Commercial 
 & Institutional 
 Banking           121,965       (138)   121,827    10,488       (256)    10,232     5,552     (3,575)     1,977   138,005     (3,969)   134,036 
----------------  --------  ----------  --------  --------  ----------  --------  --------  ----------  --------  --------  ----------  -------- 
Total Group        314,915       (509)   314,406    12,910       (390)    12,520     7,131     (4,348)     2,783   334,956     (5,247)   329,709 
----------------  --------  ----------  --------  --------  ----------  --------  --------  ----------  --------  --------  ----------  -------- 
 
   1   Included cyclical sector and represented 

Page 35

Capital review

Capital ratios

 
                 30.09.22  30.06.22  Change(4)  31.12.21  Change(4) 
---------------  --------  --------  ---------  --------  --------- 
CET1                13.7%     13.9%      (0.2)     14.1%      (0.4) 
Tier 1 capital      16.2%     15.9%        0.3     16.6%      (0.4) 
Total capital       21.2%     21.0%        0.2     21.3%      (0.1) 
---------------  --------  --------  ---------  --------  --------- 
 

Capital base(1)

 
                                               30.09.22    30.06.22  Change(5)    31.12.21  Change(5) 
                                               $million    $million          %    $million          % 
-------------------------------------------  ----------  ----------  ---------  ----------  --------- 
CET1 instruments and reserves 
Capital instruments and the related 
 share premium accounts                           5,441       5,472        (1)       5,528        (2) 
                                             ----------  ----------  ---------  ----------  --------- 
Of which: share premium accounts                  3,989       3,989          -       3,989          - 
                                             ----------  ----------  ---------  ----------  --------- 
Retained earnings(2)                             25,435      26,266        (3)      24,968          2 
Accumulated other comprehensive 
 income (and other reserves)                      7,617       8,837       (14)      11,805       (35) 
Non-controlling interests (amount 
 allowed in consolidated CET1)                      208         188         11         201          3 
Independently reviewed interim 
 and year-end profits                             3,214       2,092         54       2,346         37 
Foreseeable dividends                             (509)       (303)         68       (493)          3 
-------------------------------------------  ----------  ----------  ---------  ----------  --------- 
CET1 capital before regulatory 
 adjustments                                     41,406      42,552        (3)      44,355        (7) 
-------------------------------------------  ----------  ----------  ---------  ----------  --------- 
CET1 regulatory adjustments 
Additional value adjustments (prudential 
 valuation adjustments)                           (826)       (766)          8       (665)         24 
Intangible assets (net of related 
 tax liability)                                 (5,458)     (5,468)          -     (4,392)         24 
Deferred tax assets that rely 
 on future profitability (excludes 
 those arising from temporary differences)        (106)       (120)       (12)       (150)       (29) 
Fair value reserves related to 
 net losses on cash flow hedges                     682         475         44          34      nm(6) 
Deduction of amounts resulting 
 from the calculation of excess 
 expected loss                                    (663)       (702)        (6)       (580)         14 
Net gains on liabilities at fair 
 value resulting from changes in 
 own credit risk                                  (106)       (100)          6          15      nm(6) 
Defined-benefit pension fund assets               (124)       (184)       (33)       (159)       (22) 
Fair value gains arising from 
 the institution's own credit risk 
 related to derivative liabilities                (214)       (165)         30        (60)        257 
Exposure amounts which could qualify 
 for risk weighting of 1,250%                      (76)       (138)       (45)        (36)        111 
Other regulatory adjustments to 
 CET1 capital(3)                                   (11)        (11)          -           -          - 
-------------------------------------------  ----------  ----------  ---------  ----------  --------- 
Total regulatory adjustments to 
 CET1                                           (6,902)     (7,179)        (4)     (5,993)         15 
-------------------------------------------  ----------  ----------  ---------  ----------  --------- 
CET1 capital                                     34,504      35,373        (2)      38,362       (10) 
-------------------------------------------  ----------  ----------  ---------  ----------  --------- 
Additional Tier 1 capital (AT1) 
 instruments                                      6,505       5,264         24       6,811        (4) 
-------------------------------------------  ----------  ----------  ---------  ----------  --------- 
AT1 regulatory adjustments                         (20)        (20)          -        (20)          - 
-------------------------------------------  ----------  ----------  ---------  ----------  --------- 
Tier 1 capital                                   40,989      40,617          1      45,153        (9) 
-------------------------------------------  ----------  ----------  ---------  ----------  --------- 
 
Tier 2 capital instruments                       12,532      13,050        (4)      12,521          - 
Tier 2 regulatory adjustments                      (30)        (30)          -        (30)          - 
                                             ----------  ----------  ---------  ----------  --------- 
Tier 2 capital                                   12,502      13,020        (4)      12,491          - 
-------------------------------------------  ----------  ----------  ---------  ----------  --------- 
Total capital                                    53,491      53,637          -      57,644        (7) 
-------------------------------------------  ----------  ----------  ---------  ----------  --------- 
Total risk-weighted assets (unaudited)          252,293     255,082        (1)     271,233        (7) 
-------------------------------------------  ----------  ----------  ---------  ----------  --------- 
 
   1   Capital base is prepared on the regulatory scope of consolidation 
   2   Retained earnings includes IFRS9 capital relief (transitional) of $106 million 

3 Other regulatory adjustments to CET1 capital includes Insufficient coverage for non-performing exposures of -$11 million

   4   Change is the percentage point difference between two periods, rather than percentage change 
   5   Variance is increase/(decrease) comparing current reporting period to prior periods 
   6      Not meaningful 

Page 36

Capital review continued

Movement in total capital

 
                                                                                  Year ended 
                                                                        9 months 
                                                                  ended 30.09.22    31.12.21 
                                                                        $million    $million 
---------------------------------------------------------------  ---------------  ---------- 
CET1 at 1 January                                                         38,362      38,779 
Ordinary shares issued in the period and share premium                         -           - 
Share buy-back                                                           (1,258)       (506) 
Profit for the period                                                      3,214       2,346 
Foreseeable dividends deducted from CET1                                   (509)       (493) 
Difference between dividends paid and foreseeable dividends                (239)       (303) 
Movement in goodwill and other intangible assets                         (1,066)       (118) 
Foreign currency translation differences                                 (2,362)       (652) 
Non-controlling interests                                                      7          21 
Movement in eligible other comprehensive income                          (1,129)       (306) 
Deferred tax assets that rely on future profitability                         44        (12) 
Decrease/(increase) in excess expected loss                                 (83)         121 
Additional value adjustments (prudential valuation adjustment)             (161)       (175) 
IFRS 9 transitional impact on regulatory reserves including 
 day one                                                                   (146)       (142) 
Exposure amounts which could qualify for risk weighting                     (40)        (10) 
Fair value gains arising from the institution's own 
 Credit Risk related to derivative liabilities                             (154)        (12) 
Other                                                                         24       (176) 
---------------------------------------------------------------  ---------------  ---------- 
CET1 at 30 September/31 December                                          34,504      38,362 
---------------------------------------------------------------  ---------------  ---------- 
 
AT1 at 1 January                                                           6,791       5,612 
Net issuances (redemptions)                                                  251       1,736 
Foreign currency translation difference                                        -         (2) 
Excess on AT1 grandfathered limit (ineligible)                             (557)       (555) 
---------------------------------------------------------------  ---------------  ---------- 
AT1 at 30 September/31 December                                            6,485       6,791 
---------------------------------------------------------------  ---------------  ---------- 
 
Tier 2 capital at 1 January                                               12,491      12,657 
Regulatory amortisation                                                      331     (1,035) 
Net issuances (redemptions)                                                (298)         573 
Foreign currency translation difference                                    (680)       (181) 
Tier 2 ineligible minority interest                                           94        (81) 
Recognition of ineligible AT1                                                557         555 
Other                                                                          7           3 
---------------------------------------------------------------  ---------------  ---------- 
Tier 2 capital at 30 September/31 December                                12,502      12,491 
---------------------------------------------------------------  ---------------  ---------- 
Total capital at 30 September/31 December                                 53,491      57,644 
---------------------------------------------------------------  ---------------  ---------- 
 

Page 37

Capital review continued

Risk-weighted assets by business

 
                                                          30.09.22 
--------------------------------------  --------------------------------------------- 
                                           Credit  Operational     Market 
                                             risk         risk       risk  Total risk 
                                         $million     $million   $million    $million 
--------------------------------------  ---------  -----------  ---------  ---------- 
Corporate, Commercial & Institutional 
 Banking                                  114,519       17,038     18,222     149,779 
Consumer, Private & Business Banking       42,284        8,639          -      50,923 
Ventures                                    1,150            6          2       1,158 
Central & other items                      44,570        1,494      4,369      50,433 
--------------------------------------  ---------  -----------  ---------  ---------- 
Total risk-weighted assets                202,523       27,177     22,593     252,293 
--------------------------------------  ---------  -----------  ---------  ---------- 
 
 
                                                          30.06.22 
--------------------------------------  --------------------------------------------- 
                                           Credit  Operational     Market 
                                             risk         risk       risk  Total risk 
                                         $million     $million   $million    $million 
--------------------------------------  ---------  -----------  ---------  ---------- 
Corporate, Commercial & Institutional 
 Banking                                  117,789       17,038     19,350     154,177 
Consumer, Private & Business Banking       43,879        8,639          -      52,518 
Ventures                                    1,034            6          3       1,043 
Central & other items                      42,477        1,494      3,373      47,344 
--------------------------------------  ---------  -----------  ---------  ---------- 
Total risk-weighted assets                205,179       27,177     22,726     255,082 
--------------------------------------  ---------  -----------  ---------  ---------- 
 
 
                                                            31.12.21 
----------------------------------------  --------------------------------------------- 
                                             Credit  Operational     Market 
                                               risk         risk       risk  Total risk 
                                           $million     $million   $million    $million 
----------------------------------------  ---------  -----------  ---------  ---------- 
Corporate, Commercial & Institutional 
 Banking(1, 2)                              125,813       16,595     20,789     163,197 
Consumer, Private & Business Banking(1, 
 2)                                          42,731        8,501          -      51,232 
Ventures(1)                                     756            5          -         761 
Central & other items(1)                     50,288        2,015      3,740      56,043 
----------------------------------------  ---------  -----------  ---------  ---------- 
Total risk-weighted assets                  219,588       27,116     24,529     271,233 
----------------------------------------  ---------  -----------  ---------  ---------- 
 

1 Following the increased strategic importance and reporting of Ventures to management, this has been established as a separate operating segment in 2022. Prior periods have been re-stated

2 Following the Group's change in organisational structure in 2021, certain clients have been moved between the two new client segments, Corporate, Commercial & Institutional Banking and Consumer, Private & Business Banking. Prior period has been restated

Risk-weighted assets by geographic region

 
                               30.09.22    30.06.22  Change(1)    31.12.21  Change(1) 
                               $million    $million          %    $million          % 
---------------------------  ----------  ----------  ---------  ----------  --------- 
ASIA                            156,553     160,345        (2)     170,381        (8) 
Africa & Middle East             42,746      43,613        (2)      48,852       (12) 
Europe & Americas                50,779      50,038          1      50,283          1 
Central & other items             2,215       1,086        104       1,717         29 
---------------------------  ----------  ----------  ---------  ----------  --------- 
Total risk-weighted assets      252,293     255,082        (1)     271,233        (7) 
---------------------------  ----------  ----------  ---------  ----------  --------- 
 
   1   Variance is increase/(decrease) comparing current reporting period to prior reporting periods 

Page 38

Capital review continued

Movement in risk-weighted assets

 
                                                   Credit risk 
-----------------------  ----------------------------------------------------------------  -----------  ----------  ---------- 
                             Commercial,   Consumer, 
                               Corporate     Private                  Central 
                         & Institutional  & Business                  & other              Operational      Market       Total 
                                 Banking  Banking(1)  Ventures(1)    items(1)       Total         risk        risk        risk 
                                $million    $million     $million    $million    $million     $million    $million    $million 
-----------------------  ---------------  ----------  -----------  ----------  ----------  -----------  ----------  ---------- 
31 December 2020                 127,663      44,755            -      48,023     220,441       26,800      21,593     268,834 
1 January 2021                   127,581      44,755          289      47,816     220,441       26,800      21,593     268,834 
Asset growth & mix                 2,270       3,611          467       3,894      10,242            -           -      10,242 
Asset quality                    (1,537)       (662)            -          13     (2,186)            -           -     (2,186) 
Risk-weighted assets 
 efficiencies                      (415)        (30)            -       (657)     (1,102)            -           -     (1,102) 
Model updates                          -     (3,701)            -           -     (3,701)            -           -     (3,701) 
Methodology and policy 
 changes                               -           -            -           -           -            -       2,065       2,065 
Acquisitions/disposals                 -           -            -           -           -            -           -           - 
Foreign currency 
 translation                     (2,086)     (1,242)            -     (1,106)     (4,434)            -           -     (4,434) 
Other, including 
 non-credit 
 risk movements                        -           -            -         328         328          316         871       1,515 
-----------------------  ---------------  ----------  -----------  ----------  ----------  -----------  ----------  ---------- 
31 December 2021                 125,813      42,731          756      50,288     219,588       27,116      24,529     271,233 
-----------------------  ---------------  ----------  -----------  ----------  ----------  -----------  ----------  ---------- 
Asset growth & mix               (3,347)         148          394     (3,640)     (6,445)            -           -     (6,445) 
Asset quality                    (5,809)         141            -       2,692     (2,976)            -           -     (2,976) 
Risk-weighted assets 
efficiencies                           -           -            -           -           -            -           -           - 
Model Updates                      2,520       2,017            -           -       4,537            -     (1,000)       3,537 
Methodology and policy 
 changes                           2,024          85            -          38       2,147            -       1,100       3,247 
Acquisitions/disposals                 -           -            -           -           -            -           -           - 
Foreign currency 
 translation                     (6,973)     (2,838)            -     (3,803)    (13,614)            -           -    (13,614) 
Other, including 
 non-credit 
 risk movements                      291           -            -     (1,005)       (714)           61     (2,036)     (2,689) 
-----------------------  ---------------  ----------  -----------  ----------  ----------  -----------  ----------  ---------- 
30 September 2022                114,519      42,284        1,150      44,570     202,523       27,177      22,593     252,293 
-----------------------  ---------------  ----------  -----------  ----------  ----------  -----------  ----------  ---------- 
 

1 Following the increased strategic importance and reporting of Ventures to management, this has been established as a separate operating segment in 2022. Prior periods have been re-stated.

Page 39

Capital review continued

Leverage ratio

 
                                             30.09.22    30.06.22  Change(2)    31.12.21  Change(2) 
                                             $million    $million          %    $million          % 
-----------------------------------------  ----------  ----------  ---------  ----------  --------- 
Tier 1 capital (transitional)                  40,989      40,617          1      45,153        (9) 
Additional Tier 1 capital subject 
 to phase out                                       -           -          -       (557)      (100) 
-----------------------------------------  ----------  ----------  ---------  ----------  --------- 
Tier 1 capital (end point)                     40,989      40,617          1      44,596        (8) 
-----------------------------------------  ----------  ----------  ---------  ----------  --------- 
Derivative financial instruments              108,182      76,676         41      52,445        106 
Derivative cash collateral                     13,984      11,459         22       9,217         52 
Securities financing transactions 
 (SFTs)                                        86,777      83,087          4      88,418        (2) 
Loans and advances and other assets           655,492     664,695        (1)     677,738        (3) 
-----------------------------------------  ----------  ----------  ---------  ----------  --------- 
Total on-balance sheet assets                 864,435     835,917          3     827,818          4 
Regulatory consolidation adjustments(1)      (71,781)    (70,350)          2    (63,704)         13 
Derivatives adjustments 
                                           ----------  ----------  ---------  ----------  --------- 
Derivatives netting                          (78,671)    (56,040)         40    (34,819)        126 
Adjustments to cash collateral               (12,736)     (9,831)         30    (17,867)       (29) 
Net written credit protection                     119         128        (7)       1,534       (92) 
Potential future exposure on derivatives       38,787      41,103        (6)      50,857       (24) 
                                           ----------  ----------  ---------  ----------  --------- 
Total derivatives adjustments                (52,501)    (24,640)        113       (295)     17,697 
Counterparty risk leverage exposure 
 measure for SFTs                              14,126      13,318          6      13,724          3 
Off-balance sheet items                       112,807     146,745       (23)     139,505       (19) 
Regulatory deductions from Tier 
 1 capital                                    (6,582)     (6,856)        (4)     (5,908)         11 
-----------------------------------------  ----------  ----------  ---------  ----------  --------- 
Total exposure measure excluding 
 claims on central banks                      860,504     894,134        (4)     911,140        (6) 
Leverage ratio excluding claims 
 on central banks (%)                            4.8%        4.5%        0.3        4.9%      (0.1) 
-----------------------------------------  ----------  ----------  ---------  ----------  --------- 
Average leverage exposure measure 
 excluding claims on central banks            875,125     918,391        (5)     897,992        (3) 
Average leverage ratio excluding 
 claims on central banks (%)                     4.7%        4.4%        0.3        5.0%      (0.3) 
-----------------------------------------  ----------  ----------  ---------  ----------  --------- 
Countercyclical leverage ratio 
 buffer                                          0.1%        0.1%          -        0.1%          - 
G-SII additional leverage ratio 
 buffer                                          0.4%        0.4%      (0.1)        0.4%      (0.1) 
-----------------------------------------  ----------  ----------  ---------  ----------  --------- 
 
   1   Includes adjustment for qualifying central bank claims 
   2   Change is the percentage point difference two periods, rather than percentage change 

Page 40

Financial statements

Condensed consolidated interim income statement

For the nine months ended 30 September 2022

 
                                                                      9 months         9 months 
                                                                ended 30.09.22   ended 30.09.21 
                                                                      $million         $million 
-------------------------------------------------------------  ---------------  --------------- 
Interest income                                                          9,872            7,704 
Interest expense                                                       (4,302)          (2,601) 
-------------------------------------------------------------  ---------------  --------------- 
Net interest income                                                      5,570            5,103 
                                                               ---------------  --------------- 
Fees and commission income                                               3,062            3,432 
Fees and commission expense                                              (538)            (583) 
                                                               ---------------  --------------- 
Net fee and commission income                                            2,524            2,849 
Net trading income                                                       4,128            2,762 
Other operating income                                                     332              678 
-------------------------------------------------------------  ---------------  --------------- 
Operating income                                                        12,554           11,392 
                                                               ---------------  --------------- 
Staff costs                                                            (5,724)          (5,670) 
Premises costs                                                           (296)            (282) 
General administrative expenses                                        (1,118)          (1,025) 
Depreciation and amortisation                                            (886)            (891) 
                                                               ---------------  --------------- 
Operating expenses                                                     (8,024)          (7,868) 
-------------------------------------------------------------  ---------------  --------------- 
Operating profit before impairment losses and taxation                   4,530            3,524 
Credit impairment                                                        (490)             (57) 
Goodwill, property, plant and equipment and other impairment              (46)             (99) 
Profit from associates and joint ventures                                  169              187 
-------------------------------------------------------------  ---------------  --------------- 
Profit before taxation                                                   4,163            3,555 
Taxation                                                                 (997)            (860) 
-------------------------------------------------------------  ---------------  --------------- 
Profit for the period                                                    3,166            2,695 
-------------------------------------------------------------  ---------------  --------------- 
 
Profit attributable to: 
Non-controlling interests                                                 (10)               18 
Parent company shareholders                                              3,176            2,677 
-------------------------------------------------------------  ---------------  --------------- 
Profit for the period                                                    3,166            2,695 
-------------------------------------------------------------  ---------------  --------------- 
 
 
                                      cents  cents 
------------------------------------  -----  ----- 
Earnings per share: 
Basic earnings per ordinary share      94.8   75.6 
Diluted earnings per ordinary share    93.0   74.4 
------------------------------------  -----  ----- 
 

Page 41

Financial statements continued

Condensed consolidated interim statement of comprehensive income

For the nine months ended 30 September 2022

 
                                                                        9 months         9 months 
                                                                  ended 30.09.22   ended 30.09.21 
                                                                        $million         $million 
---------------------------------------------------------------  ---------------  --------------- 
Profit for the period                                                      3,166            2,695 
Other comprehensive income 
  Items that will not be reclassified to income statement:                    88              227 
                                                                 ---------------  --------------- 
  Own credit gains on financial liabilities designated 
   at fair value through profit or loss                                      145                7 
  Equity instruments at fair value through other comprehensive 
   income                                                                   (78)              152 
  Actuarial gains on retirement benefit obligations                           39              128 
  Taxation relating to components of other comprehensive 
   income                                                                   (18)             (60) 
                                                                 ---------------  --------------- 
  Items that may be reclassified subsequently to income 
   statement:                                                            (4,407)            (896) 
  Exchange differences on translation of foreign operations: 
                                                                 ---------------  --------------- 
     Net losses taken to equity                                          (3,338)            (781) 
     Net gains on net investment hedges                                      906              151 
  Share of other comprehensive (loss)/gain from associates 
   and joint ventures                                                       (82)                3 
  Debt instruments at fair value through other comprehensive 
   income: 
     Net valuation losses taken to equity                                (1,460)            (202) 
     Reclassified to income statement                                         53            (164) 
     Net impact of expected credit losses                                     33                8 
  Cash flow hedges: 
     Net (losses)/gains taken to equity                                    (761)               15 
     Reclassified to income statement                                          3               17 
  Taxation relating to components of other comprehensive 
   income                                                                    239               57 
                                                                 ---------------  --------------- 
Other comprehensive income for the period, net of taxation               (4,319)            (669) 
---------------------------------------------------------------  ---------------  --------------- 
Total comprehensive income for the period                                (1,153)            2,026 
---------------------------------------------------------------  ---------------  --------------- 
 
Total comprehensive income attributable to: 
Non-controlling interests                                                   (64)               14 
Parent company shareholders                                              (1,089)            2,012 
---------------------------------------------------------------  ---------------  --------------- 
Total comprehensive income for the period                                (1,153)            2,026 
---------------------------------------------------------------  ---------------  --------------- 
 

Page 42

Financial statements continued

Condensed consolidated interim balance sheet

As at 30 September 2022

 
                                                              30.09.22    31.12.21 
                                                              $million    $million 
----------------------------------------------------------  ----------  ---------- 
Assets 
Cash and balances at central banks                              66,521      72,663 
Financial assets held at fair value through profit or 
 loss                                                          110,510     129,121 
Derivative financial instruments                               108,182      52,445 
Loans and advances to banks                                     43,315      44,383 
Loans and advances to customers                                298,390     298,468 
Investment securities                                          160,891     163,437 
Other assets                                                    57,720      49,932 
Current tax assets                                                 547         766 
Prepayments and accrued income                                   2,637       2,176 
Interests in associates and joint ventures                       2,066       2,147 
Goodwill and intangible assets                                   5,520       5,471 
Property, plant and equipment                                    5,398       5,616 
Deferred tax assets                                                879         859 
Assets classified as held for sale                               1,859         334 
----------------------------------------------------------  ----------  ---------- 
Total assets                                                   864,435     827,818 
----------------------------------------------------------  ----------  ---------- 
 
Liabilities 
Deposits by banks                                               27,728      30,041 
Customer accounts                                              447,259     474,570 
Repurchase agreements and other similar secured borrowing        3,332       3,260 
Financial liabilities held at fair value through profit 
 or loss                                                        87,892      85,197 
Derivative financial instruments                               106,590      53,399 
Debt securities in issue                                        56,655      61,293 
Other liabilities                                               63,036      44,314 
Current tax liabilities                                            449         348 
Accruals and deferred income                                     4,721       4,651 
Subordinated liabilities and other borrowed funds               14,196      16,646 
Deferred tax liabilities                                           779         800 
Provisions for liabilities and charges                             350         453 
Retirement benefit obligations                                     165         210 
Liabilities included in disposal groups held for sale            1,280           - 
----------------------------------------------------------  ----------  ---------- 
Total liabilities                                              814,432     775,182 
----------------------------------------------------------  ----------  ---------- 
 
Equity 
Share capital and share premium account                          6,935       7,022 
Other reserves                                                   7,617      11,805 
Retained earnings                                               28,576      27,184 
----------------------------------------------------------  ----------  ---------- 
Total parent company shareholders' equity                       43,128      46,011 
Other equity instruments                                         6,505       6,254 
----------------------------------------------------------  ----------  ---------- 
Total equity excluding non-controlling interests                49,633      52,265 
Non-controlling interests                                          370         371 
----------------------------------------------------------  ----------  ---------- 
Total equity                                                    50,003      52,636 
----------------------------------------------------------  ----------  ---------- 
Total equity and liabilities                                   864,435     827,818 
----------------------------------------------------------  ----------  ---------- 
 

Page 43

Financial statements continued

Condensed consolidated interim statement of changes in equity

For the nine months ended 30 September 2022

 
                                                                        Fair           Fair 
                Ordinary  Preference                                   value          value 
                   share       share                                 through        through 
                 capital     capital                                   other          other 
                     and         and      Capital         Own  comprehensive  comprehensive      Cash                                Parent 
                   share       share          and      credit         income         income      flow                               company        Other 
                 premium     premium       merger  adjustment        reserve        reserve     hedge  Translation  Retained  shareholders'       equity  Non-controlling 
                 account     account  reserves(1)     reserve         - debt       - equity   reserve      reserve   earning         equity  instruments        interests     Total 
                $million    $million     $million    $million       $million       $million  $million     $million  $million       $million     $million         $million  $million 
--------------  --------  ----------  -----------  ----------  -------------  -------------  --------  -----------  --------  -------------  -----------  ---------------  -------- 
As at 01 
 January 
 2021              5,564       1,494       17,207        (52)            529            148      (52)      (5,092)    26,140         45,886        4,518              325    50,729 
Profit/(loss) 
 for the 
 period                -           -            -           -              -              -         -            -     2,315          2,315            -              (2)     2,313 
Other 
 comprehensive 
 income/(loss)         -           -            -          37          (426)            101        18        (662)    175(2)          (757)            -             (15)     (772) 
Distributions          -           -            -           -              -              -         -            -         -              -            -             (31)      (31) 
Other equity 
 instruments 
 issued, net 
 of 
 expenses              -           -            -           -              -              -         -            -         -              -        2,728                -     2,728 
Redemption of 
 other equity 
 instruments           -           -            -           -              -              -         -            -      (51)           (51)        (992)                -   (1,043) 
Treasury 
 shares 
 purchased             -           -            -           -              -              -         -            -     (242)          (242)            -                -     (242) 
Treasury 
 shares 
 issued                -           -            -           -              -              -         -            -         7              7            -                -         7 
Share option 
 expenses              -           -            -           -              -              -         -            -       147            147            -                -       147 
Dividends on 
 ordinary 
 shares                -           -            -           -              -              -         -            -     (374)          (374)            -                -     (374) 
Dividends on 
 preference 
 shares and 
 AT1 
 securities            -           -            -           -              -              -         -            -     (410)          (410)            -                -     (410) 
Share 
 buy-back(3,4)      (39)           -           39           -              -              -         -            -     (506)          (506)            -                -     (506) 
Other 
 movements             3           -            -           -              -              -         -           10   (17)(5)            (4)            -            94(6)        90 
--------------  --------  ----------  -----------  ----------  -------------  -------------  --------  -----------  --------  -------------  -----------  ---------------  -------- 
As at 31 
 December 
 2021              5,528       1,494       17,246        (15)            103            249      (34)      (5,744)    27,184         46,011        6,254              371    52,636 
Profit/(loss) 
 for the 
 period                -           -            -           -              -              -         -            -     3,176          3,176            -             (10)     3,166 
Other 
 comprehensive 
 income/(loss)         -           -            -         121        (1,328)           (58)     (648)      (2,376)     24(2)        (4,265)            -             (54)   (4,319) 
Distributions          -           -            -           -              -              -         -            -         -              -            -             (25)      (25) 
Other equity 
 instruments 
 issued, net 
 of 
 expenses              -           -            -           -              -              -         -            -         -              -        1,241                -     1,241 
Redemption of 
 other equity 
 instruments           -           -            -           -              -              -         -            -         -              -        (999)                -     (999) 
Treasury 
 shares 
 issued                -           -            -           -              -              -         -            -        12             12            -                -        12 
Share option 
 expenses              -           -            -           -              -              -         -            -       145            145            -                -       145 
Dividends on 
 ordinary 
 shares                -           -            -           -              -              -         -            -     (393)          (393)            -                -     (393) 
Dividends on 
 preference 
 shares and 
 AT1 
 securities            -           -            -           -              -              -         -            -     (339)          (339)            -                -     (339) 
Share 
 buy-back(7)        (87)           -           87           -              -              -         -            -   (1,258)        (1,258)            -                -   (1,258) 
Other 
 movements             -           -            -           -              -              -         -        14(5)     25(8)             39         9(9)           88(10)       136 
--------------  --------  ----------  -----------  ----------  -------------  -------------  --------  -----------  --------  -------------  -----------  ---------------  -------- 
As at 30 
 September 
 2022              5,441       1,494       17,333         106        (1,225)            191     (682)      (8,106)    28,576         43,128        6,505              370    50,003 
--------------  --------  ----------  -----------  ----------  -------------  -------------  --------  -----------  --------  -------------  -----------  ---------------  -------- 
 

1 Includes capital reserve of $5 million, capital redemption reserve of $217 million and merger reserve of $17,111 million

   2   Comprises actuarial gain, net of taxation on Group defined benefit schemes 

3 On 25 February 2021, the Group announced the buy-back programme for a share buy-back of its ordinary shares of $0.50 each. Nominal value of share purchases was $19 million, and the total consideration paid was $255 million (including $2 million of fees and stamp duty). The total number of shares purchased was 37,148,399 representing 1.18 per cent of the ordinary shares in issue. The nominal value of the shares was transferred from the share capital to the capital redemption reserve account

4 On 3 August 2021, the Group announced the buy-back programme for a share buy-back of its ordinary shares of $0.50 each. Nominal value of share purchases was $20 million, and the total consideration paid was $251 million (including $1 million of fees and stamp duty). The total number of shares purchased was 39,914,763 representing 1.28 per cent of the ordinary shares in issue. The nominal value of the shares was transferred from the share capital to the capital redemption reserve account

   5   Movement related to Translation adjustment and AT1 Securities charges 

6 Movements related to non-controlling interest from Mox Bank Limited ($21 million), Trust Bank Singapore Ltd ($70 million) and Zodia Markets Holdings Ltd ($3 million)

7 On 1st August 2022, the Group announced the buy-back programme for a share buy-back of its ordinary shares of $0.50 each. As at Q3 2022 the buyback is ongoing, but the total number of shares purchased was 62,541,043 representing 2.1 per cent of the ordinary shares in issue, the total consideration paid was $432 million (including $2.2 million of fees and stamp duty), and a further $128 million relating to irrevocable obligation to buy back shares under the currency buy-back programme has been recognised. The nominal value of the shares was transferred from the share capital to the capital redemption reserve account

8 Movement mainly related to $21 million NCI on Power2SME Pte Limited and $8 million on Currency fair Limited

   9   $9 million relates to fees paid on redemption on AT1 securities 

10 Movements related to non-controlling interest from Mox Bank Limited ($29 million), Trust Bank Singapore Ltd ($47 million), Zodia Markets Holdings Limited ($3 million), Power2SME ($9 million)

Page 44

Financial statements continued

Basis of preparation

This statement covers the results of Standard Chartered PLC together with its subsidiaries and equity accounted interest in associates and jointly controlled entities (the Group) for the nine months ended 30 September 2022. The financial information on which this statement is based, and the data set out in the appendix to this statement, are unaudited and have been prepared in accordance with the Group's accounting policies. The Group's significant accounting policies are described in the Annual Report 2021, which have been prepared in accordance with UK-adopted international accounting standards and International Financial Reporting Standards (IFRS) as adopted by the European Union (EU IFRS) and in conformity with the requirements of the Companies Act 2006. There are no significant differences between UK-adopted international accounting standards and EU IFRS. The Group's Annual Report 2022 will continue to be prepared in accordance with these frameworks.

The interim financial information does not constitute a full or condensed set of financial statements under IAS 34 'Interim Financial Reporting' as contained in UK-adopted international accounting standards or EU IFRS. The interim financial information has been prepared in accordance with the recognition and measurement principles, but not the disclosure requirements under UK-adopted international accounting standards and EU IFRS.

The information in this document does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2021, which contained an unqualified audit report under Section 495 of the Companies Act 2006 (which did not make any statements under Section 498 of the Companies Act 2006) have been delivered to the Registrar of Companies in accordance with Section 441 of the Companies Act 2006.

Going concern

The Directors assessed the Group's ability to continue as a going concern, including a review of the Group's forecasts, the impact of COVID 19, macroeconomic conditions and geopolitical headwinds, and confirm they are satisfied that the Group has adequate resources to continue in business for a period of twelve months from 26 October 2022. For this reason, the Group continues to adopt the going concern basis of accounting for preparing the interim financial information.

Page 45

Other supplementary financial information

Average balance sheets and yields

Average assets

 
                                                           9 months ended 30.09.22 
--------------------------------------  ------------------------------------------------------------- 
                                              Average    Average             Gross yield 
                                         non-interest   interest                interest  Gross yield 
                                              earning    earning   Interest      earning        total 
                                              balance    balance     income      balance      balance 
                                             $million   $million   $million            %            % 
--------------------------------------  -------------  ---------  ---------  -----------  ----------- 
Cash and balances at central banks             22,251     55,044        400         0.97         0.69 
Gross loans and advances to banks              28,993     42,583        568         1.78         1.06 
Gross loans and advances to customers          62,498    305,464      6,746         2.95         2.45 
Impairment provisions against 
 loans and advances to banks and 
 customers                                          -    (5,363)          -            -            - 
Investment securities                          33,106    166,654      2,158         1.73         1.44 
Property, plant and equipment 
 and intangible assets                          8,798          -          -            -            - 
Prepayments, accrued income and 
 other assets                                 137,744          -          -            -            - 
Investment associates and joint 
 ventures                                       2,180          -          -            -            - 
--------------------------------------  -------------  ---------  ---------  -----------  ----------- 
Total average assets                          295,570    564,382      9,872         2.34         1.53 
--------------------------------------  -------------  ---------  ---------  -----------  ----------- 
 
 
                                                           6 months ended 30.06.22 
--------------------------------------  ------------------------------------------------------------- 
                                              Average    Average             Gross yield 
                                         non-interest   interest                interest  Gross yield 
                                              earning    earning   Interest      earning        total 
                                              balance    balance     income      balance      balance 
                                             $million   $million   $million            %            % 
--------------------------------------  -------------  ---------  ---------  -----------  ----------- 
Cash and balances at central banks             23,650     55,603        146         0.53         0.37 
Gross loans and advances to banks              28,854     41,945        326         1.57         0.93 
Gross loans and advances to customers          62,985    305,280      4,027         2.66         2.21 
Impairment provisions against 
 loans and advances to banks and 
 customers                                          -    (5,496)          -            -            - 
Investment securities                          32,943    168,003      1,286         1.54         1.29 
Property, plant and equipment 
 and intangible assets                          8,727          -          -            -            - 
Prepayments, accrued income and 
 other assets                                 130,842          -          -            -            - 
Investment associates and joint 
 ventures                                       2,196          -          -            -            - 
--------------------------------------  -------------  ---------  ---------  -----------  ----------- 
Total average assets                          290,197    565,335      5,785         2.06         1.36 
--------------------------------------  -------------  ---------  ---------  -----------  ----------- 
 
 
                                                           9 months ended 30.09.21 
--------------------------------------  ------------------------------------------------------------- 
                                              Average    Average             Gross yield 
                                         non-interest   interest                interest  Gross yield 
                                              earning    earning   Interest      earning        total 
                                              balance    balance     income      balance      balance 
                                             $million   $million   $million            %            % 
--------------------------------------  -------------  ---------  ---------  -----------  ----------- 
Cash and balances at central banks             22,945     57,362         69         0.16         0.11 
Gross loans and advances to banks              23,512     46,091        369         1.07         0.71 
Gross loans and advances to customers          54,632    306,924      5,721         2.49         2.12 
Impairment provisions against 
 loans and advances to banks and 
 customers                                          -    (6,374)          -            -            - 
Investment securities                          31,746    153,280      1,545         1.35         1.12 
Property, plant and equipment 
 and intangible assets                          8,916          -          -            -            - 
Prepayments, accrued income and 
 other assets                                 110,815          -          -            -            - 
Investment associates and joint 
 ventures                                       2,297          -          -            -            - 
--------------------------------------  -------------  ---------  ---------  -----------  ----------- 
Total average assets                          254,863    557,283      7,704         1.85         1.27 
--------------------------------------  -------------  ---------  ---------  -----------  ----------- 
 

Page 46

Other supplementary financial information continued

Average liabilities

 
                                                           9 months ended 30.09.22 
----------------------------------------  --------------------------------------------------------- 
                                                Average    Average             Rate paid 
                                           non-interest   interest              interest  Rate paid 
                                                bearing    bearing   Interest    bearing      total 
                                                balance    balance    expense    balance    balance 
                                               $million   $million   $million          %          % 
----------------------------------------  -------------  ---------  ---------  ---------  --------- 
Deposits by banks                                17,424     28,061        161       0.77       0.47 
Customer accounts: 
  Current accounts and savings deposits          53,070    267,651      1,236       0.62       0.52 
  Time and other deposits                        64,420    152,245      1,741       1.53       1.07 
Debt securities in issue                          6,464     61,244        705       1.54       1.39 
Accruals, deferred income and 
 other liabilities                              141,654      1,094         33       4.03       0.03 
Subordinated liabilities and other 
 borrowed funds                                       -     15,305        426       3.72       3.72 
Non-controlling interests                           370          -          -          -          - 
Shareholders' funds                              50,950          -          -          -          - 
----------------------------------------  -------------  ---------  ---------  ---------  --------- 
                                                334,352    525,600      4,302       1.09       0.67 
----------------------------------------  -------------  ---------  ---------  ---------  --------- 
 
Adjustment for Financial Markets 
 funding costs                                                          (213) 
----------------------------------------  -------------  ---------  ---------  ---------  --------- 
Financial guarantee fees on interest 
 earning assets                                                            63 
----------------------------------------  -------------  ---------  ---------  ---------  --------- 
Total average liabilities and 
 shareholders' funds                            334,352    525,600      4,152       1.06       0.65 
----------------------------------------  -------------  ---------  ---------  ---------  --------- 
 
 
                                                           6 months ended 30.06.22 
----------------------------------------  --------------------------------------------------------- 
                                                Average    Average             Rate paid 
                                           non-interest   interest              interest  Rate paid 
                                                bearing    bearing   Interest    bearing      total 
                                                balance    balance    expense    balance    balance 
                                               $million   $million   $million          %          % 
----------------------------------------  -------------  ---------  ---------  ---------  --------- 
Deposits by banks                                18,293     29,193         92       0.64       0.39 
Customer accounts: 
  Current accounts and savings deposits          54,567    270,071        585       0.44       0.36 
  Time and other deposits                        63,898    149,866        853       1.15       0.80 
Debt securities in issue                          6,228     61,288        347       1.14       1.04 
Accruals, deferred income and 
 other liabilities                              132,958      1,127         23       4.12       0.03 
Subordinated liabilities and other 
 borrowed funds                                       -     15,559        247       3.20       3.20 
Non-controlling interests                           340          -          -          -          - 
Shareholders' funds                              49,493          -          -          -          - 
----------------------------------------  -------------  ---------  ---------  ---------  --------- 
                                                325,777    527,104      2,147       0.82       0.51 
----------------------------------------  -------------  ---------  ---------  ---------  --------- 
 
Adjustment for Financial Markets 
 funding costs                                                          (106) 
----------------------------------------  -------------  ---------  ---------  ---------  --------- 
Financial guarantee fees on interest 
 earning assets                                                            47 
----------------------------------------  -------------  ---------  ---------  ---------  --------- 
Total average liabilities and 
 shareholders' funds                            325,777    527,104      2,088       0.80       0.49 
----------------------------------------  -------------  ---------  ---------  ---------  --------- 
 

Page 47

Other supplementary financial information continued

 
                                                           9 months ended 30.09.21 
----------------------------------------  --------------------------------------------------------- 
                                                Average    Average             Rate paid 
                                           non-interest   interest              interest  Rate paid 
                                                bearing    bearing   Interest    bearing      total 
                                                balance    balance    expense    balance    balance 
                                               $million   $million   $million          %          % 
----------------------------------------  -------------  ---------  ---------  ---------  --------- 
Deposits by banks                                19,094     26,530        104       0.52       0.30 
Customer accounts: 
  Current accounts and savings deposits          49,937    259,389        608       0.31       0.26 
  Time and other deposits                        52,444    149,719      1,046       0.93       0.69 
Debt securities in issue                          6,337     60,006        425       0.95       0.86 
Accruals, deferred income and 
 other liabilities                              115,108      1,164         40       4.59       0.05 
Subordinated liabilities and other 
 borrowed funds                                       -     16,525        378       3.06       3.06 
Non-controlling interests                           370          -          -          -          - 
Shareholders' funds                              51,662          -          -          -          - 
----------------------------------------  -------------  ---------  ---------  ---------  --------- 
                                                294,952    513,333      2,601       0.68       0.43 
----------------------------------------  -------------  ---------  ---------  ---------  --------- 
 
Adjustment for Financial Markets 
 funding costs                                                           (77) 
----------------------------------------  -------------  ---------  ---------  ---------  --------- 
Financial guarantee fees on interest 
 earning assets                                                            73 
----------------------------------------  -------------  ---------  ---------  ---------  --------- 
Total average liabilities and 
 shareholders' funds                            294,952    513,333      2,597       0.68       0.43 
----------------------------------------  -------------  ---------  ---------  ---------  --------- 
 

Page 48

Other supplementary financial information continued

Important Notice - Forward-looking statements

This document may contain 'forward-looking statements' that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as 'may', 'could', 'will', 'expect', 'intend', 'estimate', 'anticipate', 'believe', 'plan', 'seek', 'continue' or other words of similar meaning.

By their very nature, forward-looking statements are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and the Group's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements.

Recipients should not place reliance on, and are cautioned about relying on, any forward-looking statements. There are several factors which could cause actual results to differ materially from those expressed or implied in forward-looking statements. The factors that could cause actual results to differ materially from those described in the forward-looking statements include (but are not limited to): changes in global, political, economic, business, competitive; market forces or condition; future exchange and interest rates; changes in environmental, social or physical risks; legislative, regulatory and policy developments; the development of standards and interpretations; the ability of the Group to mitigate the impact of climate change effectively; risks arising out of health crisis and pandemics, changes in tax rates, future business combinations or dispositions; and other factors speci c to the Group. Any forward-looking statement contained in this document is based on past or current trends and/or activities of the Group and should not be taken as a representation that such trends or activities will continue in the future.

No statement in this document is intended to be a profit forecast or to imply that the earnings of the Group for the current year or future years will necessarily match or exceed the historical or published earnings of the Group. Each forward-looking statement speaks only as of the date of the particular statement. Except as required by any applicable laws or regulations, the Group expressly disclaims any obligation to revise or update any forward-looking statement contained within this document, regardless of whether those statements are affected as a result of new information, future events or otherwise.

Please refer to the Group's 2021 Annual Report for a discussion of certain risks and factors that could cause actual results, and the Group's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements.

Financial instruments

Nothing in this document shall constitute, in any jurisdiction, an offer or solicitation to sell or purchase any securities or other financial instruments, nor shall it constitute a recommendation or advice in respect of any securities or other financial instruments or any other matter.

Caution regarding climate and environment related information

Some of the climate and environment related information in this document is subject to certain limitations, and therefore the reader should treat the information provided, as well as conclusions, projections and assumptions drawn from such information, with caution. The information may be limited due to a number of factors, which include (but are not limited to): a lack of reliable data; a lack of standardisation of data; and future uncertainty. The information includes externally sourced data that may not have been verified. Furthermore, some of the data, models and methodologies used to create the information is subject to adjustment which is beyond our control, and the information is subject to change without notice.

Page 49

CONTACT INFORMATION

Global headquarters

Standard Chartered Group

1 Basinghall Avenue

London, EC2V 5DD

United Kingdom

telephone: +44 (0)20 7885 8888

facsimile: +44 (0)20 7885 9999

Shareholder enquiries

ShareCare information

website: sc.com/shareholders

helpline: +44 (0)370 702 0138

ShareGift information

website: ShareGift.org

helpline: +44 (0)20 7930 3737

Registrar information

UK

Computershare Investor Services PLC

The Pavilions

Bridgwater Road

Bristol, BS99 6ZZ

helpline: +44 (0)370 702 0138

Hong Kong

Computershare Hong Kong Investor Services Limited

17M Floor, Hopewell Centre

183 Queen's Road East

Wan Chai

Hong Kong

website: computershare.com/hk/investors

Chinese translation

Computershare Hong Kong Investor Services Limited

17M Floor, Hopewell Centre

183 Queen's Road East

Wan Chai

Hong Kong

Register for electronic communications

website: investorcentre.co.uk

For further information, please contact:

Gregg Powell, Head of Investor Relations

+ 44 (0) 20 7885 5172

LSE Stock code: STAN.LN

HKSE Stock code: 02888

Page 50

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