12th May 2005 09:00
Standard Chartered PLC12 May 2005 TO CITY EDITORS 12 MAY 2005FOR IMMEDIATE RELEASE STANDARD CHARTERED PLC RESULTS FOR 2004 RESTATED UNDER INTERNATIONAL FINANCIALREPORTING STANDARDS STANDARD CHARTERED PLC Restatement of primary financial information and the provision of pro-formafinancial information for 2004 under International Financial Reporting Standards From 1 January 2005, Standard Chartered PLC and its subsidiaries (the Group) isrequired by European Directives to report its consolidated financial statementsunder International Financial Reporting Standards (IFRS), as endorsed by theEuropean Union. As part of this transition, the Group is presenting today arestatement of its 2004 results under IFRS. This will form the comparative tothe 2005 Interim Report and the 2005 Annual Report. Effect of restatement • The effect of the restatement is modest. • Profit before tax changes by 4 per cent to $2,251 million from $2,158 million. • Normalised earnings per share is 124.6 cents compared to 125.9 cents. • Normalised return of equity is 18.6 per cent compared to 20.1 per cent. • Normalised cost income ratio changes to 54.0 per cent from 53.5 per cent. • Total capital ratio changes to 15.2 per cent from 15.0 per cent. The principal accounting policy changes from the transition to IFRS are: • recording the cost of share options awarded to employees on a fair value basis; • ceasing goodwill amortisation; • not accruing a liability for dividends that have not been declared and approved; • consolidating certain assets and liabilities previously permitted to be reported off balance sheet; and • tax effecting IFRS adjustments. Peter Sands, Finance Director, commented: "The transition to IFRS has had a limited impact on the restated 2004 results.IFRS does not change net cash flows, the underlying economics of our business orthe way we take commercial decisions." STANDARD CHARTERED PLC Pro-forma financial information The Group has excluded the effects of IAS 39 'Financial Instruments: recognitionand measurement' and IAS 32 'Financial instruments: disclosure and presentation'from the restated 2004 results, as permitted in the transitional rules.However, pro-forma financial information including the impact of IAS 32 and 39has been included for illustrative purposes. The principal changes arising out of IAS 32 and IAS 39 are: • reclassification between liabilities and shareholders' funds of certain subordinated securities and preference shares;• recording interest on a 'level yield' basis;• recording all derivatives at fair value on the balance sheet;• new classification of assets and liabilities and related measurement requirements;• recording bad debt charges for time-value discount provisions and portfolio specific provisions; and• grossing up of balance sheet for items no longer permitted to be netted. 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 Betty Ku, Head of Investor Relations, Asia Pacific+852 2821 1310 Cindy Tang, Head of Media Relations+44 20 7280 6170 This document contains forward-looking statements, including such statementswithin the meaning of section 27A of the US Securities Act of 1933 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 anduncertainties that might cause actual results and outcomes to differ materiallyfrom expectations outlined in these forward-looking statements. These factorsare not limited to regulatory developments but include stock markets, ITdevelopments, competitive and general operating conditions. STANDARD CHARTERED PLC - TABLE OF CONTENTS 2004 Restatement under IFRS PageIntroduction 4Basis of preparation 4Overview of impact of restatement of 2004 results 5Transitional arrangements 5Explanation of IFRS income statement and balance sheet adjustments 5 Appendices Restatement at 31 December 2004 and 30 June 2004:Appendix 1A Balance sheet 9Appendix 1B Income statement 10Appendix 1C Cash flow statement 11Appendix 1D Statement of recognised income and expense 12Appendix 1E Reconciliation of balance sheet at 31 December 2004 13Appendix 1F Reconciliation of balance sheet at 30 June 2004 14Appendix 1G Reconciliation of income statement at 31 December 2004 15Appendix 1H Reconciliation of income statement at 30 June 2004 16Appendix 1I Reconciliation of equity at 1 January 2004 17Appendix 1J Segmental information by geographic segment at 31 Dec 2004 18Appendix 1K Segmental information by class of business at 31 Dec 2004 19 Appendix 1L Earnings per ordinary share 20 Appendix 2A Special purpose Audit Report of KPMG Audit Plc 21 Appendix 2B Special purpose Review Report of KPMG Audit Plc 23 Pro-forma Financial Information: 25Appendix 3A Balance sheet 30Appendix 3B Income statement 31Appendix 3C Cash flow statement 32Appendix 3D Statement of recognised income and expense 33Appendix 3E Reconciliation of balance sheet at 31 December 2004 34Appendix 3F Reconciliation of balance sheet at 30 June 2004 35Appendix 3G Reconciliation of income statement at 31 December 2004 36Appendix 3H Reconciliation of income statement at 30 June 2004 37 Appendix 3I Reconciliation of equity at 1 January 2004 38 Appendix 3J Summarised asset classifications 39 Appendix 3K Segmental information by geographic segment at 31 Dec 2004 40Appendix 3L Segmental information by class of business at 31 Dec 2004 41 Appendix 3M Earnings per ordinary share 42 Appendix 4 Accounting policies as revised under IFRS 43 Appendix 5 Additional accounting policies relating to pro-forma financial information 48 Unless another currency is specified, the word "dollar" or symbol "$" in thisdocument means United States dollar. References to IFRS throughout this document refer to the application ofInternational Accounting Standards and International Financial ReportingStandards. Restatement of primary financial information and the provision of pro-formafinancial information for 2004 under International Financial Reporting Standards Introduction Standard Chartered PLC and its subsidiaries (the Group) has for accountingperiods up to 31 December 2004 prepared its primary consolidated financialstatements under UK Generally Accepted Accounting Principles (UK GAAP). From 1January 2005, the Group is required by European Directives to report itsconsolidated financial statements under International Financial ReportingStandards (IFRS), as endorsed by the European Union. Our first publishedresults under IFRS will be the 2005 Interim Report. This press release explains the restatement of the Group's 2004 results underIFRS that will be presented as the comparatives in the 2005 Interim and AnnualReport. The Group has excluded the effects of IAS 39 'Financial Instruments:Recognition and measurement' and IAS 32 'Financial instruments: disclosure andpresentation' from the restated 2004 results, as permitted in the transitionalrules. However, pro-forma financial information including the impact of IAS 32and 39 is presented in Appendix 3 for illustrative purposes. Other transitionalarrangements are set out below. Basis of preparation The directors are responsible for the restated financial information which hasbeen prepared on the basis of EU endorsed IFRS and those expected to beapplicable at 31 December 2005. These are subject to ongoing review andendorsement by the EU or possible amendment by interpretative guidance from theInternational Accounting Standards Board (IASB) and are therefore still subjectto change. We will update our restated information for any such changes shouldthey occur. The financial information for the full year ended 31 December 2004, as preparedon the above basis, has been audited by KPMG Audit Plc. They have also reviewedthe financial information for the half year. Their reports to the Company areset out on pages 21 to 24. Subject to EU endorsement of outstanding standardsand no further changes from the International Accounting Standards Board (IASB),this information is expected to form the basis for comparatives when reportingfinancial results for 2005, and for subsequent reporting periods. The financial information included in this document does not constitutestatutory accounts within the meaning of section 240 of the Companies Act 1985.The consolidated statutory accounts for Standard Chartered PLC in respect of theyear ended 31 December 2004, on which the auditors made a report under section235 of the Companies Act 1985, have been delivered to the registrar ofcompanies. The auditors' report in respect of the statutory accounts for theyear ended 31 December 2004 was unqualified and did not contain a statementunder section 237(2) or (3) of the Companies Act 1985. Overview of impact of restatement of 2004 results H1 2004 2004 UK GAAP IFRS Change UK GAAP IFRS ChangeProfit before taxation ($m) 1,106 1,107 1 2,158 2,251 93Profit attributable to ordinary shareholders ($m) 717 727 10 1,421 1,520 99Shareholders funds ($m) 8,005 8,232 227 8,435 9,105 670EPS - normalised basis 57.9c 57.1c (0.8)c 125.9c 124.6c (1.3)cRoE - normalised 19.1% 18.0% (100)bp 20.1% 18.6% (150)bpTotal assets ($bn) 129.1 132.6 3.5 141.7 147.1 5.4 The most significant elements contributing to the change in financialinformation for 2004 are: • recording the cost of share options awarded to employees on a fair value basis;• ceasing goodwill amortisation;• not accruing a liability for dividends that have not been declared and approved;• consolidating certain assets and liabilities previously permitted to be reported off balance sheet; and• tax effecting IFRS adjustments. Details of adjustment by type are set out in Appendices 1E - 1I and areexplained below. Transitional arrangements The rules for first time adoption of IFRS are set out in IFRS 1 "First-timeAdoption of International Financial Reporting Standards". In general a companyis required to determine its IFRS accounting policies and apply theseretrospectively to determine its opening balance sheet under IFRS. The standardallows a number of exceptions to this general principle to assist companies asthey transition to reporting under IFRS. Where the Group has taken advantage ofthese exemptions they are noted below. Explanation of IFRS income statement and balance sheet adjustments 1. Dividends: IAS 10 Events after the balance sheet date UK GAAP: Under UK GAAP proposed dividends at the half-year and year-end were accruedalthough there is no obligation to pay until the dividend is declared. IFRS: Under IAS 10, assets and liabilities should be adjusted for subsequent eventsthat existed at the balance sheet date, but not for events that are indicativeof conditions that arose subsequent to the balance sheet date. The main effectof this is that under IAS 10, entities are not permitted to recognise aliability for dividends declared after the balance sheet date. Impact: Interim and final dividends are now recorded as an appropriation ofshareholders' funds in the period that they are declared by the Board.Shareholders' funds increase by $208 million and $532 million as at 30 June 2004and 31 December 2004 respectively. This is the single largest item that affectsequity, but is only a timing difference. 2. Goodwill: IFRS 3 Business combinations UK GAAP: Purchased goodwill is capitalised and amortised to nil, on a straight-linebasis, over its estimated useful life. The amortisation period was up to 20years. IFRS: IFRS 3 prohibits the amortisation of goodwill. The standard requires goodwill tobe carried at cost with impairment reviews both annually and when there areindications that the carrying value may not be recoverable. After transition,the balance remains on the Group's balance sheet unless it becomes impaired. Ifimpairment occurs, a charge to the income statement will be made for thedifference between the carrying amount and the realisable value of the goodwill. Under the transitional arrangements of IFRS 1 a company has the option ofapplying IFRS 3 prospectively from the transition date to IFRS. The Group haschosen this option rather than to restate previous business combinations. Impact: The amount of $181 million that was charged to profit and loss under UK GAAP for2004 in respect of goodwill amortisation has been reversed, net of an impairmentcharge of $67 million (net reversal $114 million). The goodwill balance of $1.9billion at 1 January 2004 under UK GAAP has been taken as the IFRS openingbalance at this date. The Group will review for impairment at each reportingdate. 3. Fixed assets: IAS 16 Property, plant and equipment, IAS 17 Leases, andIAS 38 Intangible assets UK GAAP: a) Freehold and long leasehold premises were included in the accounts attheir historical cost or at the amount of any subsequent valuation. Freeholdpremises are amortised on a straight-line basis over the estimated residuallives. Leasehold premises are amortised over the remaining term of each lease,also on a straight-line basis. b) Downward revaluations were permitted to be charged to the revaluationreserve to the extent that it is not an impairment or a clear consumption ofeconomic benefits. c) UK GAAP requires leasehold property that was classified as a financelease to be treated as if it were a purchased fixed asset, including the minimumlease payments on the land element. d) Capitalised software was classified as fixed assets. IFRS: a) The Group has elected under the transitional provisions of IFRS 1 tocease revaluing freehold and long leasehold premises and to use the carryingamount as at 1 January 2004 as 'deemed cost'. b) IFRS requires all negative revaluations to be charged to the incomestatement to the extent that there is not a previous positive revaluation. c) IFRS does not permit land to be classified as a finance lease unlesscertain conditions are met, including title transferring to the lessor at theend of the lease. Revaluations relating to the land element are reversed ifthey are classified as operating leases. The Group has reclassified the landelement of all leased premises as operating leases where the conditions forrecording them as a finance lease has not been met. d) Capitalised software is classified as intangible assets under IAS 38. Impact: a) No adjustments are required to restate 2004 financial statements fromceasing revaluation. b) Negative revaluations of $81 million have been transferred from therevaluation reserve to retained earnings. There is no net profit impact. c) $88 million of minimum lease payments relating to the land element ofleased premises has been reclassified from fixed assets to prepayments, less $3million of revaluation relating to land which has been reversed. d) $224 million of capitalised software and work in progress has beenreclassified to intangible assets. There is no net profit impact. 4. Share awards: IFRS 2 Share-based Payments UK GAAP: UK GAAP requires the intrinsic value, being the difference between the shareprice at the date of award and the strike price, to be taken to the incomestatement. This expense is recorded over the vesting period of each awardwithin each scheme. Save As You Earn (SAYE) schemes were excluded from therequirements. IFRS: IFRS 2 requires that an expense for all share based payments (including SAYEschemes) be recognised in the income statement based on their fair value at thedate of grant. This expense is recorded over the vesting period of each awardwithin each scheme. For equity settled awards, the transition requirementspermit only the restatement of awards made on or after 7 November 2002 (whichhave not vested at 1 January 2004). All cash settled awards must be restated.The Group has adopted a binomial model for calculating the fair value of sharebased awards under IFRS. Impact: For the year ended 31 December 2004, staff costs increase by $23 million fromapplying IFRS. Because the vesting period for most equity settled awards isthree years and equity settled awards made before 7 November 2002 were notrestated under IFRS 2, the full impact of the new requirements will not bereflected in the income statement until 2005. 5. Consolidation of securitisations and investment funds: IAS 27Consolidated and separate financial statements and SIC 12 Consolidation -Special Purpose Entities UK GAAP: FRS 5 permitted certain securitisations to be disclosed by means of a 'linkedpresentation' on the balance sheet and an investment fund managed by the Groupwas not recognised on the Group's balance sheet. IFRS: Under IFRS linked presentation is not permitted and investment funds managed bythe Group are more likely to be consolidated. Impact: The stricter requirement of IFRS has resulted in assets amounting to $4,211million brought on to the balance sheet at 31 December 2004. Operating incomeand expenses have increased by $9 million and $5 million respectively for theyear ended 31 December 2004. 6. Joint Ventures: IAS 31 Interest in Joint Ventures UK GAAP: Interests in joint ventures were stated at the Group's share of gross assetsincluding attributable goodwill, less its share of gross liabilities. IFRS: Interests in jointly controlled entities are recognised using proportionateconsolidation whereby the assets, liabilities, income and expenses are combinedline by line with similar items in the Group's financial statements. Impact: Gross assets of $1,070 million have been consolidated. There is no net impacton profit but operating income is increased by $7 million, operating expenses by$5 million and income from joint venture is reduced by $2 million. 7. Tax: IAS 12 Income Tax The adjustments made under IFRS have been tax effected. This resulted in a taxcredit of $7 million for the year ended 31 December 2004. The effective taxcharge for 2004 as restated under IFRS is 28.0 per cent (UK GAAP 29.5 per cent).This arises mainly from the reversal of amortised goodwill. 8. Cash flow Statement: IAS 7 Cash Flow Statements UK GAAP: Cash is defined as "cash in hand and deposits repayable on demand". As at 31December 2004 this amounted to $4,351 million. IFRS: The movement in cashflows under IFRS are represented by cash and cashequivalents. Cash is defined as "cash on hand and demand deposits", similar toUK GAAP. Cash equivalents includes short term, highly liquid investments thatare readily convertible to known amounts of cash. As at 31 December 2004 thetotal of cash and cash equivalents amounted to $24,023 million. Impact: Although the definition and, therefore, the amount reported as cash is differentbetween UK GAAP and IFRS, there in no change in the actual cashflows of theunderlying business. $1,614 million of restricted cash balances held with central banks have beentransferred from loans and advances to banks to cash and balances at centralbanks. STANDARD CHARTERED PLC - FINANCIAL STATEMENTS SUMMARISED CONSOLIDATED BALANCE SHEETAs at 31 December 2004 Audited Reviewed IFRS IFRS 31.12.04 30.06.04 $m $m AssetsCash and balances at central banks 3,960 3,447Treasury bills and other eligible bills 4,425 5,978Loans and advances to banks 17,382 17,387Loans and advances to customers 72,159 63,743Debt securities 32,842 28,900Equity shares 253 179Intangible fixed assets 2,353 2,154Property, plant and equipment 555 525Deferred tax assets 272 251Prepayments, accrued income and other assets 12,877 10,084Total assets 147,078 132,648 LiabilitiesDeposits by banks 15,814 16,999Customer accounts 85,458 78,219Debt securities in issue 11,627 9,985Current tax liabilities 295 258Accruals, deferred income and other liabilities 17,047 12,402Subordinated liabilities: Undated loan capital 1,588 1,572 Dated loan capital 5,180 4,351Total liabilities 137,009 123,786 EquityShareholders' funds 9,105 8,232Minority interest 964 630Total equity 10,069 8,862Total equity and liabilities 147,078 132,648 STANDARD CHARTERED PLC - FINANCIAL STATEMENTS (continued) SUMMARISED CONSOLIDATED INCOME STATEMENTFor the year ended 31 December 2004 Audited Reviewed Reviewed IFRS IFRS IFRS 12 months 6 months 6 months ended ended ended 31.12.04 30.06.04 31.12.04 $m $m $m Interest and similar income 5,312 2,568 2,744Interest expense and similar charges (2,130) (1,017) (1,113)Net interest income 3,182 1,551 1,631Other finance income 10 3 7Fees and commissions income 1,614 793 821Fees and commissions expense (282) (130) (152)Net trading income 651 333 318Other operating income 207 175 32 2,190 1,171 1,019Total operating income 5,382 2,725 2,657Administrative expenses: Staff (1,559) (793) (766) Premises (321) (158) (163) Other (731) (336) (395)Depreciation and amortisation (238) (123) (115)Total operating expenses (2,849) (1,410) (1,439)Operating profit before provisions 2,533 1,315 1,218Impairment losses on loans and advances (214) (139) (75)Amounts written off fixed assets (68) (69) 1Operating profit before taxation 2,251 1,107 1,144Taxation (630) (331) (299)Operating profit after taxation 1,621 776 845Minority interest (43) (20) (23) Profit for the period attributable to shareholders 1,578 756 822Dividends on other equity interests (58) (29) (29)Dividends on ordinary equity shares (630) (429) (201)Retained profit 890 298 592 Basic earnings per share 129.6c 62.1c 67.5cDiluted earnings per ordinary share 127.4c 61.1c 66.3c STANDARD CHARTERED PLC - FINANCIAL STATEMENTS (continued) CONSOLIDATED CASH FLOW STATEMENTFor the year ended 31 December 2004 Audited Reviewed IFRS IFRS 12 months 6 months ended ended 31.12.04 30.06.04 $m $mCash flow from operating activitiesOperating profit before taxation 2,251 1,107 Adjustment for items not involving cash flow or shown separately Depreciation and amortisation of premises, plant and equipment 238 123 Gain on disposal of tangible fixed assets (4) (5) Gain on disposal of investment securities (164) (159) Amortisation of investments (41) 18 Loss on disposal of subsidiary undertakings - (4) Charge for bad and doubtful debts and contingent liabilities 214 139 Amounts written off fixed assets 68 69 Debts written off, net of recoveries (504) (74) Increase/(decrease) in accruals and deferred income 80 (178) Increase in prepayments and accrued income (164) (197) Net (increase)/decrease in mark to market adjustment (259) 473 Interest paid on subordinated loan capital 338 253 UK and overseas taxes paid (573) (271) Net cash inflow from trading activities 1,480 1,294 Net increase in cheques in the course of collection (45) (83) Net (increase)/decrease in treasury bills and other eligible bills (78) 52 Net (increase) in loans and advances to banks and customers (11,999) (6,927) Net increase in deposits from banks, customer accounts/debt securities in issue 15,004 12,103 Net increase in dealing securities (2,118) (286) Net increase/(decrease) in other accounts 3,037 (18) Net cash inflow from operating activities 5,281 6,135 Net cash flows from investing activities Purchase of tangible fixed assets (240) (95) Acquisition of subsidiaries, net of cash acquired (333) - Acquisition of treasury bills (9,188) (6,346) Acquisition of debt securities (75,353) (33,931) Acquisition of equity shares (121) (42) Disposal of subsidiaries, associated undertakings and branches 6 6 Disposal of tangible fixed assets 51 53 Disposal and maturity of treasury bills 10,778 5,363 Disposal and maturity of debt securities 71,482 31,788 Disposal of equity shares 356 352 Dividend paid on minority shareholders of subsidiary undertakings (17) (3) Net cash used in investing activities (2,579) (2,855) Net cash (outflow)/inflow from financing activities Interest paid on subordinated loan capital (338) (253) Gross proceeds from issue of subordinated loan capital 499 4 Repayment of subordinated liabilities (25) (21) Dividends paid on preference shares (58) (29) Equity dividends paid to members of the company (587) (396) Net cash outflow from financing activities (509) (695) Net increase in cash and cash equivalents 2,193 2,585 Cash and cash equivalents at beginning of period 21,773 21,773 Effect of exchange rate changes on cash and cash equivalents 57 (39) Cash and cash equivalents at end of period 24,023 24,319 STANDARD CHARTERED PLC - FINANCIAL STATEMENTS (continued) CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSEFor the year ended 31 December 2004 Audited Reviewed Reviewed IFRS IFRS IFRS 12 months 6 months 6 months ended ended ended 31.12.04 30.06.04 31.12.04 $m $m $m Operating profit after taxation 1,621 776 845Exchange translation differences 96 (66) 162Actuarial (loss)/gain on retirement benefits (5) 15 (20)Deferred tax on actuarial gain/(loss) 1 (5) 6Deferred tax on items taken directly to reserves 19 24 (5) Total recognised income and expense for the period 1,732 744 988 Attributable to:Equity holders of the parent 1,689 724 965Minority interest 43 20 23 1,732 744 988 STANDARD CHARTERED PLC - FINANCIAL STATEMENTS (continued) RECONCILIATION OF SUMMARISED CONSOLIDATED BALANCE SHEETAt 31 December 2004 UK GAAP Fixed Share 31.12.04 Dividends Goodwill assets options $m $m $m $m $mAssetsCash and balances at central banks 2,269 - - - -Treasury bills and eligible bills 4,425 - - - -Loans and advances to banks 18,922 - - - -Loans and advances to customers 71,596 - - - -Debt securities 28,295 - - - -Equity shares 253 - - - -Interest in joint ventures 187 - - - -Intangible fixed assets 1,900 - 114 224 -Property, plant and equipment 844 - - (312) -Deferred income tax assets 276 - - - -Prepayments, accrued income and other assets 12,721 - - 85 - Total assets 141,688 - 114 (3) - LiabilitiesDeposits by banks 15,813 - - - -Customer accounts 84,572 - - - -Debt securities in issue 7,378 - - - -Current tax liabilities 295 - - - -Accruals, deferred income and other liabilities 17,507 (532) - - (16)Subordinated liabilities: Undated loan capital 1,588 - - - - Dated loan capital 5,144 - - - - Total liabilities 132,297 (532) - - (16) EquityShare capital/premium and redemption reserve 3,818 - - - -Premises revaluation (5) - - 81 -Own shares held in ESOP Trust (8) - - - -Retained earnings 4,630 532 114 (84) 16Minority interest 956 - - - - Total equity 9,391 532 114 (3) 16 Cash/ Audited cash IFRS Consolidations Tax equivalents Other 31.12.04 $m $m $m $m $mAssetsCash and balances at central banks 77 - 1,614 - 3,960Treasury bills and eligible bills - - - - 4,425Loans and advances to banks 74 - (1,614) - 17,382Loans and advances to customers 559 - - 4 72,159Debt securities 4,547 - - - 32,842Equity shares - - - - 253Interest in joint ventures (187) - - - -Intangible fixed assets 115 - - - 2,353Property, plant and equipment 25 - - (2) 555Deferred income tax assets - (4) - - 272Prepayments, accrued income and other assets 71 - - - 12,877 Total assets 5,281 (4) - 2 147,078 LiabilitiesDeposits by banks 1 - - - 15,814Customer accounts 885 - - 1 85,458Debt securities in issue 4,249 - - - 11,627Current tax liabilities - - - - 295Accruals, deferred income and other 75 - - 13 17,047liabilitiesSubordinated liabilities: Undated loan capital - - - - 1,588 Dated loan capital 36 - - - 5,180 Total liabilities 5,246 - - 14 137,009 EquityShare capital/premium and redemption reserve - - - - 3,818Premises revaluation - - - - 76Own shares held in ESOP Trust - - - - (8)Retained earnings 27 (4) - (12) 5,219Minority interest 8 - - - 964 Total equity 35 (4) - (12) 10,069 STANDARD CHARTERED PLC - FINANCIAL STATEMENTS (continued) RECONCILIATION OF SUMMARISED CONSOLIDATED BALANCE SHEET At 30 June 2004 UK GAAP Fixed Share 30.06.04 Dividends Goodwill assets options $m $m $m $m $mAssetsCash and balances at central banks 2,243 - - - -Treasury bills and eligible bills 5,978 - - - -Loans and advances to banks 18,587 - - - -Loans and advances to customers 63,671 - - - -Debt securities 25,515 - - - -Equity shares 179 - - - -Intangible fixed assets 1,895 - 21 238 -Property, plant and equipment 794 - - (269) -Deferred tax assets 256 - - - -Prepayments, accrued income and other assets 10,017 - - 28 - Total assets 129,135 - 21 (3) - LiabilitiesDeposits by banks 16,999 - - - -Customer accounts 78,219 - - - -Debt securities in issue 6,579 - - - -Current tax liabilities 259 - - - -Accruals, deferred income and other liabilities 12,525 (208) - - (10)Subordinated liabilities: Undated loan capital 1,572 - - - - Dated loan capital 4,351 - - - - Total liabilities 120,504 (208) - - (10) Equity Share capital/premium and redemption reserve 3,778 - - - -Premises revaluation - - - 81 -Own shares held in ESOP Trusts (74) - - - -Retained earnings 4,301 208 21 (84) 10Minority interest 626 - - - - Total equity 8,631 208 21 (3) 10 Cash/ Reviewed cash IFRS Consolidations Tax equivalents Other 30.06.04 $m $m $m $m $m AssetsCash and balances at central banks - - 1,204 - 3,447Treasury bills and eligible bills - - - - 5,978Loans and advances to banks 4 - (1,204) - 17,387Loans and advances to customers 72 - - - 63,743Debt securities 3,385 - - - 28,900Equity shares - - - - 179Intangible fixed assets - - - - 2,154Property, plant and equipment - - - - 525Deferred tax assets - (5) - - 251Prepayments, accrued income and other assets 39 - - - 10,084 Total assets 3,500 (5) - - 132,648 LiabilitiesDeposits by banks - - - - 16,999Customer accounts - - - - 78,219Debt securities in issue 3,406 - - - 9,985Current tax liabilities - (1) - - 258Accruals, deferred income and other 73 - - 22 12,402liabilitiesSubordinated liabilities: Undated loan capital - - - - 1,572 Dated loan capital - - - - 4,351 Total liabilities 3,479 (1) - 22 123,786 Equity Share capital/premium and redemption reserve - - - - 3,778Premises revaluation - - - - 81Own shares held in ESOP Trusts - - - - (74)Retained earnings 17 (4) - (22) 4,447Minority interest 4 - - - 630 Total equity 21 (4) - (22) 8,862 STANDARD CHARTERED PLC - FINANCIAL STATEMENTS (continued) RECONCILIATION OF SUMMARISED CONSOLIDATED INCOME STATEMENTFor the year ended 31 December 2004 UK GAAP 12 months ended Fixed 31.12.04 Dividends Goodwill assets $m $m $m $m Interest and similar income 5,232 - - -Interest expense and similar charges (2,064) - - - Net interest income 3,168 - - -Other finance income 10 - - -Fees and commissions income 1,617 - - -Fees and commissions expense (283) - - -Net trading income 648 - - -Other operating income 207 - - - 2,189 - - - Total operating income 5,367 - - - Administrative expenses: Staff (1,534) - - - Premises (321) - - - Other (721) - - (1) Depreciation and amortisation (420) - 181 1 Total operating expenses (2,996) - 181 - Operating profit before provisions 2,371 - 181 -Impairment losses on loans and advances (214) - - -Income from joint venture 2 - - -Amounts written off fixed assets (1) - (67) - Operating profit before taxation 2,158 - 114 -Taxation (637) - - - Operating profit after taxation 1,521 - 114Minority interest (42) - - - Profit for the period attributable to shareholders 1,479 - 114 -Dividends on other equity interests (58) - - -Dividends on ordinary equity shares (725) 95 - - Retained profit 696 95 114 - Audited IFRS 12 months Share ended options Consolidations Tax Other 31.12.04 $m $m $m $m $m Interest and similar income - 77 - 3 5,312Interest expense and similar charges - (66) - - (2,130) Net interest income - 11 - 3 3,182Other finance income - - - - 10Fees and commissions income - 1 - (4) 1,614Fees and commissions expense - 1 - - (282)Net trading income - - - 3 651Other operating income - 3 - (3) 207 - 5 - (4) 2,190 Total operating income - 16 - (1) 5,382Administrative expenses: Staff (23) (2) - - (1,559) Premises - - - - (321) Other - (8) - (1) (731) Depreciation and amortisation - - - - (238) Total operating expenses (23) (10) - (1) (2,849) Operating profit before provisions (23) 6 - (2) 2,533Impairment losses on loans and advances - - - - (214)Income from joint venture - (2) - - -Amounts written off fixed assets - - - - (68) Operating profit before taxation (23) 4 - (2) 2,251Taxation - - 7 - (630) Operating profit after taxation (23) 4 7 (2) 1,621Minority interest - (1) - - (43) Profit for the period attributable to (23) 3 7 (2) 1,578shareholders Dividends on other equity interests - - - - (58)Dividends on ordinary equity shares - - - - (630) Retained profit (23) 3 7 (2) 890 STANDARD CHARTERED PLC - FINANCIAL STATEMENTS (continued) RECONCILIATION OF SUMMARISED CONSOLIDATED INCOME STATEMENTFor the six months ended 30 June 2004 UK GAAP 6 months ended Fixed 30.06.04 Dividends Goodwill assets $m $m $m $m Interest and similar income 2,543 - - -Interest expense and similar charges (997) - - - Net interest income 1,546 - - -Other finance income 3 - - -Fees and commissions income 795 - - -Fees and commissions expense (130) - - -Net trading income 332 - - -Other operating income 176 - - - 1,173 - - - Total operating income 2,722 - - -Administrative expenses: Staff (774) - - - Premises (158) - - - Other (332) - - - Depreciation and amortisation (211) - 88 - Total operating expenses (1,475) - 88 - Operating profit before provisions 1,247 - 88 -Impairment losses on loans and advances (139) - - -Amounts written off fixed assets (2) - (67) - Operating profit before taxation 1,106 - 21 -Taxation (340) - - - Operating profit after taxation 766 - 21 -Minority interest (20) - - - Profit for the period attributable to shareholders 746 - 21 -Related Shares:
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