2nd Mar 2006 08:15
Standard Chartered PLC02 March 2006 STANDARD CHARTERED PLC PART 2 1. Basis of preparation The Group financial statements consolidate those of the Company and itssubsidiaries (together referred to as the "Group") and equity account theGroup's interest in associates and proportionately consolidates interests injointly controlled entities. The financial statements have been prepared and approved by the directors inaccordance with International Financial Reporting Standards as adopted by the EU("adopted IFRSs"). The Group prepares its financial statements in accordance with IFRS as adoptedfor use in the EU for the first time and consequently both have applied IFRS 1.An explanation of how the transition to adopted IFRS has affected the reportedfinancial position, financial performance and cashflows of the Group is providedin note 12. The Group has taken advantage of the transitional arrangements ofIFRS not to restate corresponding comparative amounts in accordance with IAS 32and 39. These Standards were adopted on 1 January 2005. Adjustments required toadopt IAS 32 and 39 are set out in note 12. A summary of the Group's significant accounting policies will be included in the2005 Annual Report. 2. Segmental Information The Group is organised on a worldwide basis into two main business segments:Wholesale Banking and Consumer Banking. The types of products and serviceswithin these segments are set out in the Financial Review. The Group's secondaryreporting format comprises geographical segments. By Class of Business 2005 2004 Consumer Wholesale Corporate Total Consumer Wholesale Corporate Total Banking Banking items not $million Banking Banking items not $million $million $million allocated $million $million allocated $million $millionInternal income 26 (26) - - (2) 2 - -Net interest income 2,861 1,474 - 4,335 1,961 1,220 1 3,182Other income 920 1,606 - 2,526 741 1,352 107 2,200Operating income 3,807 3,054 - 6,861 2,700 2,574 108 5,382Operating expenses (2,101) (1,710) - (3,811) (1,400) (1,426) (23) (2,849)Operating profit before impairment 1,706 1,344 - 3,050 1,300 1,148 85 2,533lossesImpairment losses on loans and (425) 106 (319) (242) 28 - (214)advances -Other impairment (3) (11) (36) (50) - (1) (67) (68)Operating profit before taxation 1,278 1,439 (36) 2,681 1,058 1,175 18 2,251Total assets employed 74,134 140,464 *498 215,096 38,094 108,712 *318 147,124Total liabilities employed 79,008 123,472 *283 202,763 53,384 83,376 *295 137,055Total risk weighted assets and 52,054 73,870 - 125,924 28,069 64,055 - 92,124contingentsOther segment items:Capital expenditure 114 109 - 223 98 96 - 194Depreciation 68 58 - 126 60 55 - 115Amortisation of intangible assets 74 83 - 157 38 85 - 123 * As required by IAS 14, tax balances are not allocated. 2. Segmental Information continued By geographic segment The Group manages its business segments on a global basis. The operations arebased in nine main geographical areas. The UK is the home country of the parent.Following the acquisition of SC First Bank (SCFB, formerly Korea First Bank), anew geographical area of Korea has been included. Comparative amounts have beenrestated. 2005 Asia Pacific Hong Singapore Malaysia Korea Other Kong $million $million $million Asia $million Pacific $millionInternal income 49 3 4 (4) 10Net interest income 935 270 214 826 626Fees and commissions income, net 352 139 60 45 225Net trading income 101 84 44 63 165Other operating income 75 14 11 24 28Operating income 1,512 510 333 954 1,054Operating expenses (649) (246) (150) (632) (610)Operating profit before impairment 863 264 183 322 444lossesImpairment losses on loans and (117) (43) (30) (61) (49)advancesOther impairment (1) - - - -Operating profit before taxation 745 221 153 261 395Loans and advances to customers - 22,148 11,966 6,521 23,315 9,971averageNet interest margins (%) 2.2 1.1 2.2 2.0 3.0Loans and advances to 21,584 12,541 7,613 36,037 11,210 customers - period endLoans and advances to banks - 5,688 2,431 173 3,222 2,213period endTotal assets employed** 49,943 23,602 10,409 59,929 24,141Total risk weighted assets and 21,281 11,770 5,224 31,850 15,140contingentsCapital expenditure 36 43 6 42 34 2005 India *Middle East & Africa Americas UK & Total $million Other $million Group $million S Asia Head $million Office $millionInternal income (10) 1 (16) (37) -Net interest income 337 478 380 269 4,335Fees and commissions income, net 151 234 151 138 1,495Net trading income 72 89 31 120 769Other operating income 40 6 5 59 262Operating income 590 808 551 549 6,861Operating expenses (306) (339) (399) (480) (3,811)Operating profit before impairment 284 469 152 69 3,050lossesImpairment losses on loans and (50) 9 (43) 65 (319)advancesOther impairment 1 - (47) (3) (50)Operating profit before taxation 235 478 62 131 2,681Loans and advances to customers - 5,107 7,917 2,088 9,819 98,852averageNet interest margins (%) 3.3 3.2 7.3 0.5 2.5Loans and advances to 5,017 7,348 2,251 8,576 112,177 customers - period endLoans and advances to banks - period 238 1,255 313 7,426 22,959endTotal assets employed** 10,943 12,902 5,606 37,083 234,558Total risk weighted assets and 6,369 9,304 2,732 24,256 127,926contingentsCapital expenditure 18 11 13 20 223 * Middle East and Other S Asia includes UAE operating income of $331 million,operating expenses of $133 million, impairment losses on loans and advances of$20 million, and operating profit before taxation of $178 million. ** Total assets employed includes intra-group items of $19,960 million andexcludes deferred tax assets of $498 million. 2. Segmental Information continued 2004 Asia Pacific Hong Singapore Malaysia Korea Other Kong $million $million $million Asia $million Pacific $millionInternal income 28 (12) (10) (4) (4)Net interest income 899 324 194 32 465Fees and commissions 323 114 51 7 189 Income, netNet trading income 99 81 30 33 88Other operating income 57 6 5 2 17Operating income 1,406 513 270 70 755Operating expenses (660) (228) (145) (41) (477)Operating profit before impairment 746 285 125 29 278lossesImpairment losses on loans and (125) (33) (2) 3 (43)advancesOther impairment - - - - -Operating profit before taxation 621 252 123 32 235Loans and advances to customers - 21,608 10,398 5,272 352 8,008averageNet interest margin (%) 2.2 1.6 2.4 1.1 2.8Loans and advances to customers - 21,744 11,765 6,374 794 8,961period endLoans and advances to banks - period 2,852 2,072 349 1,646 1,705endTotal assets employed** 48,478 20,414 7,119 5,093 17,377Total risk weighted assets and 20,337 13,892 4,411 1,639 11,705contingentsCapital expenditure 22 28 12 4 9 2004 India *Middle East & Africa Americas UK & Total $million Other $million Group $million S Asia Head $million Office $millionInternal income (12) (4) (23) 41 -Net interest income 299 370 374 225 3,182Fees and commissions 111 203 153 181 1,332 Income, netNet trading income 67 75 74 104 651Other operating income 1 4 6 119 217Operating income 466 648 584 670 5,382Operating expenses (252) (270) (360) (416) (2,849)Operating profit before impairment 214 378 224 254 2,533lossesImpairment losses on loans and (22) (2) (12) 22 (214)advancesOther impairment 2 - - (70) (68)Operating profit before taxation 194 376 212 206 2,251Loans and advances to customers - 3,841 6,325 1,833 7,430 65,067averageNet interest margin (%) 3.6 3.1 7.6 0.6 2.6Loans and advances to customers - 4,692 6,972 2,013 8,844 72,159period endLoans and advances to banks - period 171 892 374 7,321 17,382endTotal assets employed** 8,611 12,867 6,419 56,792 183,170Total risk weighted assets and 6,413 8,761 2,749 24,895 94,802contingentsCapital expenditure 44 15 14 46 194 * Middle East and Other S Asia includes UAE operating income of $271 million,operating expenses of $100 million, impairment losses on loans and advances of$1 million, and operating profit before taxation of $170 million. ** Total assets employed includes intra-group items of $28,801 million, $7,563million of derivative balances which are netted on the Consolidated BalanceSheet and excludes deferred tax assets of $318 million. Following the acquisition of SCFB on 15 April 2005, Korea has been identified asa separately reportable geographic segment. In 2004, the existing Koreanbusiness was included in Other Asia Pacific. Accordingly, this segment has beenrestated to present Korea separately. The UAE segment has been included withMiddle East and Other S Asia. Apart from SCFB, Group central expenses have been distributed between segmentsin proportion to their direct costs and the benefit of the Group's capital hasbeen distributed between segments in proportion to their risk weighted assets.In SCFB, allocations have been based on an estimate of the cost incurredsupporting the integration as a transitional measure. Assets held at the centre have been distributed between geographic segments inproportion to their total assets employed. Total risk weighted assets and contingents include $2,002 million (31 December2004: $2,678 million) of balances which are netted in calculating capitalratios. In 2005 other impairment includes a provision made in respect of exposures inZimbabwe. In 2004 other operating income includes profits and losses arisingfrom corporate decisions to dispose of investments in KorAm Bank ($95 million inAmericas, UK & Group Head Office) and Bank of China (Hong Kong) ($36 million inHong Kong) and the premium on repurchase of surplus subordinated debt ($23million in India). Costs include $18 million related to the incorporation of theHong Kong business (Hong Kong) and the $5 million donation to the Tsunami reliefeffort (Malaysia, India, Other APR and Other MESA). Other impairment includesgoodwill impairment of $67 million. These decisions resulted in netnon-recurring gains of $18 million. They are included in the Geographicsegmental information, but are not allocated to businesses in the Businesssegmental information. Capital expenditure comprises additions to property and equipment andintangibles including additions resulting from acquisitions. 2. Segmental Information continued The following tables set out the structure of Standard Chartered's deposits byprincipal geographic region where it operates at 31 December 2005 and 31December 2004. 2005 Asia Pacific Hong Singapore Malaysia Korea Other Kong $million $million $million Asia $million Pacific $millionNon interest bearing current and 2,998 2,001 1,120 216 1,343demand accountsInterest bearing current and 12,753 2,063 148 13,554 3,612demand accountsSavings deposits 6 1,383 459 12 2,478Time deposits 17,893 11,324 4,046 14,542 8,397Other deposits 20 49 1,120 1,322 748Total 33,670 16,820 6,893 29,646 16,578Deposits by banks 627 3,641 652 4,742 3,517Customer accounts 33,043 13,179 6,241 24,904 13,061 33,670 16,820 6,893 29,646 16,578Debt securities in issue 840 1,111 619 19,815 741Total 34,510 17,931 7,512 49,461 17,319 2005 India *Middle East & Africa Americas UK & Total $million Other $million Group $million S Asia Head $million Office $millionNon interest bearing current and 1,928 2,855 1,359 473 14,293demand accountsInterest bearing current and 3 1,110 1,264 4,534 39,041demand accountsSavings deposits 1,286 1,369 368 - 7,361Time deposits 3,164 5,179 872 10,675 76,092Other deposits 11 432 97 626 4,425Total 6,392 10,945 3,960 16,308 141,212Deposits by banks 676 1,893 98 4,427 20,273Customer accounts 5,716 9,052 3,862 11,881 120,939 6,392 10,945 3,960 16,308 141,212Debt securities in issue 655 - 85 3,548 27,414Total 7,047 10,945 4,045 19,856 168,626 2004 Asia Pacific Hong Singapore Malaysia Korea Other Kong $million $million $million Asia $million Pacific $millionNon interest bearing current and 3,602 2,040 989 1 1,227demand accountsInterest bearing current and 15,300 2,329 130 943 2,056demand accountsSavings deposits 24 528 437 707 1,154Time deposits 13,155 9,847 3,423 150 6,601Other deposits 2 50 569 - 904Total 32,083 14,794 5,548 1,801 11,942Deposits by banks 1,204 3,150 813 688 2,674Customer accounts 30,879 11,644 4,735 1,113 9,268 32,083 14,794 5,548 1,801 11,942Debt securities in issue 1,508 758 401 36 1,027Total 33,591 15,552 5,949 1,837 12,969 2004 India *Middle East & Africa Americas UK & Total $million Other $million Group $million S Asia Head $million Office $millionNon interest bearing current and 1,224 2,260 1,159 16 12,518demand accountsInterest bearing current and 2 1,090 1,603 3,920 27,373demand accountsSavings deposits 970 1,599 512 9 5,940Time deposits 3,441 4,186 679 10,410 51,892Other deposits 2 402 69 1,551 3,549Total 5,639 9,537 4,022 15,906 101,272Deposits by banks 1,109 1,362 110 4,704 15,814Customer accounts 4,530 8,175 3,912 11,202 85,458 5,639 9,537 4,022 15,906 101,272Debt securities in issue 469 - 1 7,427 11,627Total 6,108 9,537 4,023 23,333 112,899 3. Taxation Analysis of taxation charge in the year: 2005 2004 $million $millionThe charge for taxation based upon the profits for the year comprises:United Kingdom corporation tax at 30% (31 December 2004: 30%): Current tax on income for the year 326 407 Adjustments in respect of prior periods 4 18 Double taxation relief (308) (357)Foreign tax: Current tax on income for the year 671 559 Adjustments in respect of prior periods (18) (13)Total current tax 675 614Deferred tax: Origination/reversal of temporary differences 35 16Tax on profits on ordinary activities 710 630Effective tax rate 26.5% 28.0% Overseas taxation includes taxation on Hong Kong profits of $131 million (31December 2004: $92 million) provided at a rate of 17.5 per cent (31 December2004: 17.5 per cent) on the profits assessable in Hong Kong. 4. Dividends 2005 2004Ordinary Equity Shares Cents Cents $million $million per share per shareFinal dividend declared and paid during the period 40.44 524 36.49 429Interim dividends declared and paid during the period 18.94 248 17.06 201 59.38 772 53.55 630 Dividends are recorded in the period in which they are declared. Accordingly,the final dividends set out above relate to the respective prior years. The 2005 final dividend of 45.06 cents per share ($595 million) will be paid ineither sterling, Hong Kong dollars or US dollars on 12 May 2006 to shareholderson the UK register of members at the close of business in the UK on 10 March2006 and to shareholders on the Hong Kong branch register of members at theopening of business in Hong Kong (9:00am Hong Kong time) on 10 March 2006. It is intended that shareholders will be able to elect to receive sharescredited as fully paid instead of all or part of the final cash dividend.Details of the dividend will be sent to shareholders on or around 27 March 2006. 2005 2004 $million $millionPreference SharesNon-cumulative irredeemable preference shares:7 3/8 per cent preference shares of £1 each* 14 148 1/4 per cent preference shares of £1 each* 15 15Non-cumulative redeemable preference shares:8.9 per cent preference shares of $5 each 29 29 *Dividends on these preference shares are treated as interest expense in 2005following adoption of IAS 32 . 5. Earnings Per Ordinary Share 2005 2004 Profit Weighted Per Profit Weighted Per $million average share $million average share number of amount number of amount shares cents shares cents ('000) ('000)Basic earnings per ordinary share 1,917 1,290,916 148.5 1,520 1,172,921 129.6Effect of dilutive potentialordinary shares: Convertible bonds 7 10,346 23 34,488 Options - 8,678 - 3,444Diluted earnings per share 1,924 1,309,940 146.9 1,543 1,210,853 127.4 Normalised earnings per ordinary share The Group measures earnings per share on a normalised basis. This differs fromearnings defined in IAS 33, Earnings per share. The table below provides areconciliation. 2005 2004 $million $millionProfit attributable to ordinary shareholders 1,917 1,520Profit on sale of shares in - KorAm (95) - Bank of China (36)Premium and costs paid on repurchase of subordinated debt 23Costs of Hong Kong incorporation 18Tsunami donation 5Goodwill impairment 67Total one-off items (18)Amortisation of intangible assets arising on business combinations 32 -Profit less losses on disposal of investment securities held at cost - (33)Profit on sale of property, plant and equipment - (4)Profit on disposal of subsidiary undertakings - (4)Other impairment 42 1Tax on normalised items (7) -Normalised earnings 1,984 1,462Normalised earnings per ordinary share 153.7c 124.6c No ordinary shares were issued after the balance sheet date that would havesignificantly affected the number of ordinary shares used in the abovecalculations had they been issued prior to the end of the balance sheet periodexcept as described in notes 24 and 35. Normalised EPS has grown by 23 per cent. With the adoption of IAS 39, the Group no longer normalises gains and losses ondisposal of investment securities as these are now held in an available-for-saleportfolio at fair value. Had this policy been adopted in 2004, normalised earnings per share would havebeen 127.5 cents and EPS growth would have been 20 per cent 6. Cash and Cash Equivalents For the purposes of the cash flow statement, cash and cash equivalents comprisesof the following balances with less than three months maturity from the date ofacquisition. 2005 2004 $million $millionCash and balances with central banks 8,012 3,961Less restricted balances (4,269) (1,860)Treasury bills and other eligible bills 4,049 3,666Loans and advances to banks 17,590 10,292Trading securities 9,844 6,053Total 35,226 22,112 7. Contingent Liabilities and Commitments The table below shows the contract or underlying principal amounts, creditequivalent amounts and risk weighted amounts of unmatured off-balance sheettransactions at the balance sheet date. The contract or underlying principalamounts indicate the volume of business outstanding and do not represent amounts at risk. The credit equivalent and risk weighted amounts have been calculated inaccordance with the Financial Services Authority guidelines implementing theBasel Accord on capital adequacy, after taking account of collateral andguarantees received. . 2005 2004 Contract or Credit Risk Contract or Credit Risk underlying equivalent weighted underlying equivalent weighted principal amount amount principal amount amount amount $million $million amount $million $million $million $millionContingent liabilitiesAcceptances and endorsements* - - - 976 976 842Guarantees and irrevocable letters 15,952 11,106 7,704 15,942 9,976 8,146of creditOther contingent liabilities 6,295 5,134 2,995 3,139 2,414 1,221 22,247 16,240 10,699 20,057 13,366 10,209CommitmentsDocumentary credits and short term 3,730 746 572 2,924 585 494trade-related transactionsForward asset purchases and forward 141 141 28 54 54 11deposits placedUndrawn formal standby facilities,credit lines and other commitmentsto lend: One year and over 11,128 5,564 3,956 9,140 4,570 4,133 Less than one year 18,690 - - 8,903 - - Unconditionally 28,705 - - 25,933 - -cancellable 62,394 6,451 4,556 46,954 5,209 4,638 * Acceptances and endorsements are recorded on balance sheet with the adoptionof IAS 39. 8. Post Balance Sheet Events In January 2006 the Company issued 3,401,290 new ordinary shares at a price of1301 pence per share representing approximately 0.26 per cent of the Company'sexisting issued ordinary share capital. The issue of ordinary shares was used to acquire 20 per cent of Fleming Family &Partners Limited. On 2 March 2006 a dividend of 45.06 cents per share was recommended. 9. Forward Looking Statements This document contains forward-looking statements, including such statementswithin the meaning of section 27A of the US Securities Act of 1993 and section21E of the Securities Exchange Act of 1934. These statements concern, or mayaffect, future matters. These may include the Group's future strategies,business plans, and results and are based on the current expectations of thedirectors of Standard Chartered. They are subject to a number of risks and uncertainties that might cause actualresults and outcomes to differ materially from expectations outlined in theseforward-looking statements. These factors are not limited to regulatorydevelopments but include stock markets, IT developments, competitive and generaloperating conditions. 10. Dealings in the Company's listed securities Neither the Company nor any of its subsidiaries has bought, sold or redeemed anysecurities of the Company listed on The Stock Exchange of Hong Kong Limitedduring the year ended 31 December 2005. 11. Corporate Governance The directors confirm that, throughout the period, the Company has complied withthe provisions of Appendix 14 of the Listing Rules of the Hong Kong StockExchange. The directors also confirm that the announcement of these results hasbeen reviewed by the Company's Audit and Risk Committee. 12. Transition to IFRS adopted by the EU EU law (IAS Regulation EC 1606/2002) requires that the annual consolidatedfinancial statements of the Company, for the year ending 31 December 2005, beprepared in accordance with International Financial Reporting Standards (IFRSs)adopted for use in the EU ("adopted IFRSs"). This financial information has been prepared on the basis of the recognition andmeasurement requirements of IFRSs in issue that are adopted by the EU andeffective (or available for early adoption) at 31 December 2005, the Group'sfirst annual reporting date at which it is required to use adopted IFRSs. The Group's transition date is 1 January 2004. The Group prepared its openingIFRS balance sheet at that date. In preparing these consolidated financial statements in accordance withIFRS 1, the Group has applied the mandatory exceptions and certain of theoptional exemptions from full retrospective application of IFRS. The Group elected to apply the exemption from restatement of comparatives forIAS 32 and IAS 39. It has applied previous UK GAAP rules to derivatives,financial assets and financial liabilities and to hedgingrelationships for the 2004 comparative information. The adjustments required fordifferences between UK GAAP and IAS 32 and IAS 39 have been determined andrecognised at 1 January 2005. 12. Transition to EU Adopted IFRS continued Reconciliation of profit for the year ended 31 December 2004 UK GAAP Effect of IFRS transition $million $million to IFRS $millionInterest income 5,232 80 5,312Interest expense (2,064) (66) (2,130)Net interest income 3,168 14 3,182Other finance income 10 (10) -Fees and commissions income 1,617 (3) 1,614Fees and commissions expense (283) 1 (282)Net trading income 648 3 651Other operating income 207 10 217 2,189 11 2,200Operating income 5,367 15 5,382Staff costs (1,534) (25) (1,559)Premises costs (321) - (321)Other administrative expenses (721) (10) (731)Depreciation and amortisation (420) 182 (238)Operating expenses (2,996) 147 (2,849) Operating profit before impairment losses and taxation 2,371 162 2,533Impairment losses on loans and advances and other credit riskprovisions (214) - (214)Income from joint ventures 2 (2) -Other impairment (1) (67) (68)Profit before taxation 2,158 93 2,251Taxation (637) 7 (630)Profit for the year 1,521 100 1,621 12. Transition to EU Adopted IFRS continued Reconciliation of equity at 1 January 2004 (date of transition to IFRS) Share Capital and Premises Own shares Retained Minority Total capital and capital revaluation held in earnings interest equity share redemption $million ESOP $million $million $million premium reserve Trusts $million $million $millionUK GAAP 3,752 16 (2) (60) 3,823 614 8,143Dividends - - - - 439 - 439Fixed Assets - - 81 - (84) - (3)Share awards - - - - (3) - (3)Consolidation - - - - 25 6 31Tax - - (22) - (9) - (31)Other - - - - (9) - (9)IFRS 3,752 16 57 (60) 4,182 620 8,567 Reconciliation of equity at 31 December 2004 Share Capital and Premises Own shares Retained Minority Total capital and capital revaluation held in earnings interest equity share redemption $million ESOP $million $million $million premium reserve Trusts $million $million $millionUK GAAP 3,802 16 (5) (8) 4,630 956 9,391Dividends - - - - 532 - 532Goodwill - - - - 114 - 114Fixed Assets - - 81 - (84) - (3)Share options - - - - 16 - 16Consolidation - - - - 27 8 35Tax - - - - (4) - (4)Other - - - - (12) - (12)IFRS 3,802 16 76 (8) 5,219 964 10,069 12. Transition to EU Adopted IFRS continued Reconciliation of Balance Sheet at 31 December 2004 UK GAAP Effect of IFRS Recalssif-cation IFRS transition to $million $million $million to IFRS IFRS format $million $millionAssetsCash and balances at central banks 2,269 1,691 3,960 - 3,960Treasury bills and other eligible bills 4,425 - 4,425 (4,425) -Financial assets held at fair value through - - - 4,744 4,744profit and lossLoans and advances to banks 18,922 (1,540) 17,382 (695) 16,687Loans and advances to customers 71,596 563 72,159 (140) 72,019Investment securities 28,295 4,547 32,842 769 33,611Equity shares 253 - 253 (253) -Interest in joint ventures 187 (187) - - -Intangible assets 1,900 453 2,353 - 2,353Property, plant and equipment 844 (289) 555 - 555Deferred tax assets 276 (4) 272 46 318Other assets 11,453 144 11,597 - 11,597Prepayments and accrued income 1,268 12 1,280 - 1,280Total assets 141,688 5,390 147,078 46 147,124 LiabilitiesDeposits by banks 15,813 1 15,814 (652) 15,162Customer accounts 84,572 886 85,458 (365) 85,093Financial liabilities at fair value through - - - 2,392 2,392profit and lossDebt securities in issue 7,378 4,249 11,627 (622) 11,005Current tax liabilities 295 - 295 - 295Other liabilities 16,066 (524) 15,542 (753) 14,789Accruals and deferred income 1,262 59 1,321 - 1,321Provisions for liabilities and charges 59 2 61 - 61Retirement benefit liabilities 120 3 123 46 169Other borrowed funds 6,732 36 6,768 - 6,768Total liabilities 132,297 4,712 137,009 46 137,055 EquityShare capital and share premium 3,802 - 3,802 - 3,802Reserves and retained earnings 4,633 670 5,303 - 5,303Total shareholders' equity 8,435 670 9,105 - 9,105Minority interests 956 8 964 - 964Total equity 9,391 678 10,069 - 10,069Total equity and liabilities 141,688 5,390 147,078 46 147,124 12. Transition to EU Adopted IFRS continued Reconciliation of equity at 1 January 2005 The Group has taken advantage of the transitional arrangements of IFRS 1 not torestate corresponding amounts in accordance with IAS 32 and 39. The table belowshows the affects of IAS 32 and 39 on the balance sheet at 1 January 2005. Share Other equity AFS Cash flow Premises Retained Minority Total capital/ instruments reserves hedge revaluation earnings interest equity premium and $million reserve $million $million $million $million redemption $million $million reserve $millionIFRS (ex IAS 32/39) 3,818 - - - 76 5,211 964 10,069Debt/Equity (375) 994 - - - 20 - 639Effective yield - - - - - 109 - 109Derivatives/hedging - - - 61 - 58 (4) 115Asset classification/fair values - - 87 - - (27) - 60Other - - - - - (102) - (102)Impairment - - - - - 33 - 33Tax - - (14) (19) - (55) - (88)IFRS 3,443 994 73 42 76 5,247 960 10,835 Financial Calendar Ex-dividend date 8 March 2006 Record date 10 March 2006 Expected posting to shareholders of 2005 Report and Accounts 27 March 2006 Annual General Meeting 4 May 2006 Payment date - final dividend on ordinary shares 12 May 2006 Copies of this statement are available from: Investor Relations, Standard Chartered PLC, 1 Aldermanbury Square, London, EC2V7SB or from our website on http://investors.standardchartered.com For further information please contact: Tracy Clarke, Group Head of Corporate Affairs +44 20 7280 7708 Romy Murray, Head of Investor Relations +44 20 7280 7245 Ruth Naderer, Head of Investor Relations, Asia Pacific +852 2820 3075 Sean Farrell, Head of Media Relations +44 207 280 7163 The following information will be available on our website • A live webcast of the annual results analyst presentation (availablefrom 9.45 am GMT) • The archived webcast and Q/A session of analyst presentation in London(available 2pm GMT) • Interviews with Mervyn Davies, Group Chief Executive Officer and PeterSands, Group Finance Director available from 8.15am GMT. • Slides for the Group's presentations (available after 2pm GMT) Images of Standard Chartered are available for the media at http://www.standardchartered.com/global/mc/plib/directors_p01.html Information regarding the Group's commitment to Corporate Responsibility isavailable at http://www.standardchartered.com/corporateresponsibility The 2005 Annual Report will be made available on the website of the StockExchange of Hong Kong and on our website http://investors.standardchartered.com as soon as is practicable. 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