Delivering consistent value
I am pleased to report that 2011 was our ninth consecutive year of record income andprofits. Once again our performance has shown that we are in the right markets with theright strategy and have the right leadership in place to deliver consistent value for ourshareholders.
Income rose 10 per cent to $17.6 billion
Profit before tax increased 11 per cent to $6.8 billion
Normalised earnings per share were up 0.5 per cent to 198.0 cents
The Board is recommending a final dividend of 51.25 cents per share bringing the totalannual dividend to 76.00 cents per share up 10 per cent.
We continue to keep shareholder interests top of mind when determining our strategy. Inthe past year not only have we grown our income profits and earnings per share wehave also increased our capital reserves and total dividends delivering a return onequity of more than 12 per cent.
Despite turbulent global markets and the increased cost of regulation we have struckthe balance between paying our staff in a competitive industry whilst investing in ourbusiness at pace and delivering great returns for our shareholders with a growingdividend.
Since 2006 we have increased our total lending by more than 90 per cent with mortgagelending up 40 per cent and SME lending up 70 per cent. We now employ nearly 87000 people.Importantly in achieving this not once have we taken a penny in direct governmentsupport anywhere in the Group.
Banks have a fundamental role in economies helping businesses to set up and expandhelping people buy homes and grow their wealth. Now more than ever the world needsgrowth. It needs banks that are properly capitalised strongly liquid and well managed todo what they do best helping to meet the needs of growing populations helping todeal with social issues such as rising youth unemployment. To achieve this however it isvital that regulation on banks is kept proportionate.
There is currently much debate on remuneration in banking. Put simply our approach toremuneration has not changed. We continue to reward our people for sustained highperformance and we do not reward failure or short-term risk taking. Despite considerablegrowth in profits the bonus pool has been kept flat and the amount we are paying out inbonuses is less than we are paying to our shareholders by way of a dividend.
Standard Chartered is very clearly different to most other banks. We remain wellpositioned in Asia Africa and the Middle East markets with a strong underlyinggrowth momentum driven by urbanisation rapidly expanding middle classes and boominginfrastructure investment. As the shift in economic and political power from West to Eastaccelerates changing the flow of global trade this places us at a powerful vantagepoint.
We are different because we are strongly capitalised and highly liquid withdiversified sources of quality income growth throughout our Consumer and Wholesale Bankingbusinesses and an obsessive focus on the basics of banking.
Above all we are different because we have a cohesive and distinctive global culturewith a strong emphasis on values and leadership. Here for good our brand promisepowerfully sums up who we are and what we stand for.
Strong governance is also integral to our long-term success. We continually assess ourgovernance structure to ensure its effectiveness. Since 2009 as part of this process wehave widened the remits of our Board Committees which has allowed the Board to focus morebroadly on strategic issues.
Following the appointment of three non-executive directors and one executive directorin 2010 we made no changes to our Board in 2011. However we were delighted to welcome V.Shankar to our Board as an executive director effective from 1 January 2012. Based inDubai Shankar has been a strong member of our top management team since 2007 bringing agreat international knowledge and broad banking experience. His appointment furtherstrengthens our Board.
In summary 2011 was another year of strong performance for Standard Chartered and theBoard remains confident for the year ahead. Our results demonstrate the continued successof our strategy our diverse footprint our unique culture and values and mostespecially the quality of our people. We enter 2012 in great shape.
Sir John Peace
29 February 2012