Introduction

Standard Chartered is a multinational banking and financial services company headquartered in

London, United Kingdom. The company was founded in 1969 through a merger between two
banks: The Standard Bank of British South Africa and the Chartered Bank of India, Australia,
and China. Today, Standard Chartered operates in over 60 countries and has more than 1,000
branches and outlets worldwide.

The company's primary focus is on providing financial services to both retail and institutional
clients, including individuals, small businesses, corporations, and governments. Standard
Chartered offers a range of services, including personal banking, wealth management, business
banking, and corporate finance. The company has a strong presence in emerging markets,
particularly in Asia, Africa, and the Middle East, where it has been operating for more than 150
years.

Standard Chartered has a strong reputation for its commitment to social responsibility and
sustainability. The company's approach to sustainability focuses on creating positive social and
environmental impacts through its business activities. Standard Chartered has been recognized as
a leader in sustainability by a number of organizations, including the Dow Jones Sustainability
Index and the Carbon Disclosure Project.

Overall, Standard Chartered is a well-established and respected global bank with a strong
presence in emerging markets and a commitment to social responsibility and sustainability.
Key factors of analysis and the major key performance indicators used to understand the
fundamentals
Interest is a fundamental concept in finance that represents the cost of borrowing or the reward
for lending money. The relationship between interest expended and earned is an important one
that affects the profitability and financial health of both individuals and businesses.
Interest expended refers to the amount of money paid by a borrower to a lender for the use of
borrowed funds. This interest expense is typically calculated as a percentage of the principal
amount borrowed and is charged over a specified period. The interest rate charged by the lender
is determined by various factors, such as the creditworthiness of the borrower, prevailing market
conditions, and the risk associated with the loan.

The highest interest expended was in the year 2019 with 4592 Cr, and the interest earned is the highest in the
year 2020 as 10142 Cr.
On the other hand, interest earned is the income received by a lender for lending funds to a
borrower. This interest income is also calculated as a percentage of the principal amount lent and
is earned over a specific period. The interest rate earned by the lender depends on the
creditworthiness of the borrower, prevailing market conditions, and the risk associated with the
loan. The relationship between interest expended and earned can be viewed from two
perspectives: that of the borrower and that of the lender.
For the borrower, interest expended represents a cost of borrowing that must be factored into
their financial planning. A borrower must be aware of the interest rate charged by the lender and
the total interest expense that they will incur over the loan's life. This interest expense can impact
their ability to repay the loan, as higher interest rates result in higher monthly payments.
Therefore, borrowers need to shop around for the best loan terms to minimize their interest
expenses and ensure that they can comfortably repay the loan.
Ratio analysis:
2023 2 2/5
2022 2 1/4
2021 2 2/5
2020 2 2/9
2019 2 1/6

For the lender, interest earned represents a source of income that contributes to their overall
profitability. The lender must assess the creditworthiness of the borrower and the risk associated
with the loan to determine the interest rate to charge. Higher-risk loans typically carry higher
interest rates, as lenders require compensation for the additional risk they are taking on.
However, lenders also need to remain competitive in the market and offer rates that are
attractive to borrowers. Therefore, lenders need to balance their desire for high profitability with
the need to remain competitive and attract borrowers.
The relationship between interest expended and earned is a critical aspect of financial
management for individuals and businesses. For individuals, managing interest expense is crucial
to avoid falling into debt traps and maintaining good credit scores. For businesses, managing
interest expense and maximizing interest earned is essential to remain profitable and meet their
financial obligations.
In summary, the relationship between interest expended and earned is one of the fundamental
principles of finance. Borrowers must be aware of the interest rates charged by lenders to
minimize their interest expenses and ensure they can comfortably repay the loan. On the other
hand, lenders must assess the creditworthiness of borrowers and balance their desire for high
profitability with the need to remain competitive in the market. By managing interest expense and
maximizing interest earned, both borrowers and lenders can achieve their financial goals and
maintain their financial health.
 Net profit and operating expenses are two important financial concepts that are crucial for
understanding a company's financial health and profitability.
Operating expenses refer to the costs incurred by a company to maintain its normal business
operations. These expenses include items such as rent, salaries and wages, utilities, marketing
expenses, and other day-to-day expenses. Operating expenses are deducted from a company's
revenue to determine its operating income, which is also known as earnings before interest and
taxes (EBIT). Operating expenses are considered variable costs, as they can fluctuate based on
changes in a company's level of production or sales.
Net profit, also known as net income or bottom-line profit, is the amount of money a company
earns after deducting all of its expenses, including both operating expenses and non-operating
expenses such as interest payments, taxes, and depreciation. Net profit represents the final profit
amount that a company earns after all expenses have been taken into account. It is calculated by
subtracting all expenses from a company's total revenue.
The relationship between net profit and operating expenses is straightforward: net profit is the
amount that is left over after all operating expenses have been deducted from revenue. Therefore,
if a company wants to increase its net profit, it can either increase its revenue or decrease its
operating expenses. This can be achieved through various strategies, such as increasing sales,
reducing costs, or improving operational efficiency.
Managing operating expenses is a critical aspect of financial management for businesses, as
these expenses can significantly impact a company's profitability. Companies must monitor their
operating expenses carefully and look for ways to reduce costs without compromising the quality
of their products or services. By reducing operating expenses, companies can improve their net
profit margin and maintain a healthy financial position.

In summary, the relationship between net profit and operating expenses is essential for
understanding a company's financial health and profitability. Operating expenses are the costs
incurred by a company to maintain its normal business operations, while net profit represents the
final profit amount that a company earns after all expenses have been taken into account. To
increase net profit, companies can either increase their revenue or decrease their operating
expenses. Managing operating expenses is a critical aspect of financial management for
businesses, as it can significantly impact their profitability and financial health.
Income from investments and other investments are two important financial concepts that are
crucial for understanding a company's investment portfolio and financial health.

Income from investment was higher in the year 2023 as 2665 Cr, and the income from other
sources was higher in the year 2020 as 3282 Cr.
Income from investments refers to the amount of money earned by a company from its
investments, such as stocks, bonds, and other securities. This income is typically generated
through dividends, interest payments, or capital gains from the sale of the investments. Income
from investments is an important source of revenue for many companies, particularly those in the
financial sector or those with a large investment portfolio.
Other investments refer to investments made by a company that are not part of its core business
operations. These investments can include real estate, venture capital, private equity, and other
non- traditional investments. Other investments are often made with the goal of generating
higher returns or diversifying a company's investment portfolio.
The relationship between income from investments and other investments is complex and can
vary depending on the investment strategy of a company. In some cases, a company may focus
on generating income from its investments, while in other cases, the focus may be on capital
gains or long-term growth.
For companies that focus on generating income from investments, such as those in the financial
sector or those with a large portfolio of dividend-paying stocks and bonds, income from
investments can be a significant source of revenue. These companies may invest in securities that
pay high dividends or interest rates, with the goal of generating a steady stream of income.
Other investments, on the other hand, may be made with the goal of generating capital gains or
long-term growth. These investments may be riskier and less predictable than traditional income-
generating investments, but they can offer the potential for higher returns. Companies may invest
in other investments to diversify their investment portfolio, reduce risk, or take advantage of
emerging market opportunities.

As a financial institution, Standard Chartered's total income and total expenditure are
interrelated. Total income refers to the amount of money the bank earns from its operations, such
as interest income from loans, fees from banking services, and other sources of revenue. Total
expenditure, on the other hand, refers to the amount of money the bank spends on operating
expenses, such as salaries and wages, rent, utilities, and other costs of doing business.
In general, if Standard Chartered's total income increases, it would have more money available to
cover its total expenditures, potentially leading to higher profits. Conversely, if the bank's total
income decreases, it may have to cut back on its total expenditures to remain financially stable.

The total income and total expenditure have simultaneous movements that state the highest
expenditures was in 2021 and stated to be round 11006 Cr. The total income stated to around
13424 Cr in the year 2020.
It's worth noting that Standard Chartered's total income and total expenditure can also be affected
by external factors, such as changes in the economic environment, regulatory changes, and
market conditions. Therefore, it's essential for the bank to maintain a balance between its income
and expenditure to ensure its long-term financial sustainability.

Standard Chartered's total expenditure and income from investments are also closely related.
Income from investments refers to the amount of money the bank earns from its investments in
various financial instruments, such as stocks, bonds, and other securities. Total expenditure, as
previously mentioned, refers to the amount of money the bank spends on operating expenses,
such as salaries, rent, utilities, and other costs of doing business.

The total income from investment stated to about 2665 Cr in the year 2023. The highest total
expenditure stated to about 11006 Cr in the year 2021.
If Standard Chartered earns more income from its investments, it may have more funds available
to cover its total expenditures, potentially leading to higher profits. On the other hand, if the
bank's income from investments decreases, it may have to cut back on its total expenditures to
maintain its financial stability. It's important to note that the relationship between total
expenditure and income from investments is not always straightforward. While income from
investments can boost the bank's overall earnings, it can also be affected by market fluctuations
and other external factors. Additionally, investment income is typically subject to higher levels
of risk than income from traditional banking activities, such as interest income and fees.
Overall, Standard Chartered must strike a balance between its income from investments and total
expenditures to ensure its long-term financial sustainability. The bank must carefully manage its
investment portfolio to generate income while also maintaining a prudent level of risk
management.
Source of Data - Standard Chartered PLC Balance Sheet, Standard Chartered PLC Financial Statement &
Accounts (moneycontrol.com)