Standard Chartered PLC

Good morning and good afternoon, everybody, and welcome to our full year 2023 results presentation. Today we have two firsts. For the first time in my career at Standard Chartered, I'm joined by a new CFO, Diego DiGiorgi, who succeeded Andy Halford at the start of the year. And for the first time since I became CEO in 2015, I'm pleased to say that we've hit our double-digit return on tangible equity target. So, first order of business, a very warm welcome to Diego. With over 30 years' experience in the global financial services sector, Diego brings with him a broad and unique skill set, and I very much look forward to working with him in the years ahead as we deliver the next phase of the group strategy. As we pass the double-digit ROTE milestone, I also want to recognize the immense contribution that Andy Halford made to that achievement. Andy joined the bank a year before I did and expertly navigated the group's course through some very, very difficult waters early in our partnership. Andy has been an invaluable member of the management team and a great partner for me and has been pivotal in getting the group to where it is today. I wish him the very best for his future. As usual, I'll make some opening remarks and Diego will take you through the numbers before we set out our plans for the next three years. And as usual, We will then both take your questions. I'll talk more about this later, but wanted to highlight a few specifics where delivery has been impactful in getting us to where we are today. We took a deliberate decision to invest in financial markets and wealth management over the past several years, leveraging what we saw as distinct advantages for us. These investments leave us extremely well positioned. We'll drive income growth for years to come, and that growth is also somewhat less dependent on the interest rate environment. Whilst overall FM results were slightly down following a very strong 2022, flow income was up 7% last year, despite lower market volatility. This income is supported by our investment in rates and credit products, digital platforms, and cross-selling solutions. In wealth management, we've invested in relationship managers, products, and platforms, building a wealth business of scale, which is the third largest wealth manager in Asia. With full reopening of some of our main wealth markets at the beginning of 2023, we have seen over a quarter of a million of new to bank affluent clients. We're monetizing these new relationships at pace with affluent net new money up $29 billion, which is equivalent to around 11% annualized growth in affluent assets under management. We remain fully focused on disciplined capital management. CCIB has delivered on its RWA returns and optimization targets a year ahead of plan, and we have successfully embedded this discipline into BAU. Efficient capital management has given us the optionality and capacity to flex the balance sheet in support of an expected acceleration in client assets in a lower-rate environment. Our focus on capital-light business has in part led to a loan loss rate below our through-the-cycle expectation in recent years. Now, in doing all this, we've created a powerful equity generation engine. A full-year dividend of 27 cents per share and a further $1 billion share buyback we're announcing today brings total capital distributions to over $5 billion since the 1st of January 2022, achieving our target almost a year ahead of schedule. Lastly, after the usual seasonality in December, we've seen an encouraging start to 2024, particularly in wealth and financial markets, supported by the investments we've made. Looking at the strategic scorecard in more detail, in 2022, we set out five actions that would help accelerate the delivery of double-digit ROTE. We've achieved several of these targets a year ahead of plan, and most others are well on track. In 2023, CCIB delivered an income return on risk-weighted assets of 7.8%, having removed $24 billion of low-returning RWA ahead of target end time. We also grew financial institutions income to just short of our 50% target. In CPBB, we achieved a 60% cost-to-income target one year ahead of plan as we progressed towards the target $500 million of structural expense savings. Around 85% of retail transactions are now digitized end-to-end. We've done less well in growing the mass retail client base. In large part, this reflects the slower rollout of our Nexus platform in Indonesia. That said, in Nexus, we have created an innovative digital platform, which gives us greater optionality as we explore how best to use this technology to grow our mass market business. Our other digital partnerships, for example, with Ant and JD in China and Atomi in Singapore, are going from strength to strength. The mass retail business continues to act as a significant feeder for the affluent segment, with around 224,000 clients being upgraded this year. Nearly ahead of plan, China franchise operating profit is under $100 million, short of the target of $1.4 billion. This is no mean feat, given the material profitability drag in the last two years of higher impairments in the China CRE sector, and speaks to the robust health of our China business. Thank you very much. And this offshore income component is growing at a faster pace and is significantly higher returning compared to the domestic China income. Having spent time in China over the past year, it is clear that in our focus areas, cross-border activity and new economy industries, activity levels are very robust and certainly much higher than the headlines in the West would suggest. We continue to invest in our China franchise, but moderate the pace given COVID impacts and levels of economic activity in some sectors. The group has achieved 4% positive jobs in 2023 despite inflationary pressures and while maintaining our investment program. We've achieved over two-thirds of our $1.3 billion cost efficiencies target with one year to go. Our 60% cost-income ratio target is within reach, having achieved 63% in 2023. Generating enduring operating leverage is a central pillar of our strategy, and at the heart of the productivity program we will discuss shortly. As with all milestones, 10% ROTE is not the limit of our ambitions, but just the most recent point on our progression to returns in excess of our cost of capital. In my time at the bank... We've been increasing our ROTE on average by over 100 basis points per year, and we are as well positioned as we have ever been to increase ROTE, targeting 12% in 2026. As in past years, we will do this through income growth, expense discipline, ongoing transformation, and active capital management. We have the right strategy in the right markets, and we have momentum. We will now build on that momentum to deliver sustainably higher returns. The financial framework we're presenting today is designed to do that. Through our hard work, focus, and investment, we believe we've arrived at what we see as a virtuous circle. We generate consistent income growth across our markets and products, generating operational leverage, which allows us to further invest in growth. We will grow net interest income in 2024 and beyond as hedging, client asset growth, and asset and liability mixed benefits offset the expected reduction in interest rates. Non-NAI growth will be powered by the significant investments we've made in wealth and financial markets, which I mentioned earlier. We will accelerate our focus to simplify, standardize, and digitize the group through our $1.5 billion three-year Fit for Growth program, which, combined with a commitment to hold our cost below $12 billion in 2026, will drive further operational leverage. As Diego will elaborate, this is all about streamlining our processes, improving outcomes for our clients, colleagues, and shareholders. We expect this to be transformational for the group, building on substantial foundations established in recent years. Taken together, these actions will generate higher returns and accrete capital. We will deliver substantial shareholder distributions over the period, targeting at least $5 billion of capital returns by 2026. Consequently, we expect ROTE to increase steadily from 10%, targeting 12% in 2026, and to progress thereafter. Now over to Diego to take you through the numbers.

Hello, everyone. Thank you for joining today. I have already met some of you, and I'm looking forward to meeting more of you in the weeks ahead. Turning to the financials last year. In my remarks, I will be comparing year on year and speaking to constant currency unless stated otherwise. The fourth quarter was robust, with income up 7%. Net interest income was up 6% on further rate rises, and we achieved a net interest margin of 170 basis points. Non-NII grew 8%, but was down 19% quarter-on-quarter, as we saw the usual seasonality in financial markets and wealth management. We managed costs well in the fourth quarter, with operating expenses up 2% year-on-year, but lower quarter-on-quarter, delivering 5% positive jobs in the period. Credit impairment was materially lower, with a charge of just over $60 million, reflecting much lower provisions in China commercial real estate relative to both the prior period and quarter. We took a further $153 million write-down in restructuring relating to our associate investment in China Bohai Bank. All in? A resilient fourth quarter, with profits of $1.1 billion, up 74%, which supported the delivery of our full-year 2023 targets. Turning to the full year, the headline is that we hit our double-digit return on tangible equity target, delivering 10.1% ROTE in 2023. Total income was up 13%. Adjusted net interest income grew 23%, and non-NII was up 2% as the continued recovery in wealth management was part of set by lower financial markets. Expenses were up 8%, including further inflationary pressure and ongoing business investments. These were partly funded by cost saves, and overall we delivered 4% positive jobs for the year. credit impairments were more than $300 million lower, reflecting reduced charges on our China CRE portfolio. Together, this generated underlying operating profit before tax of $5.7 billion, up 27%. Our strong levels of profitability support a further $1 billion share buyback, which we will take the pro forma CET1 ratio to 13.6%, back within our 13% to 14% target range. Looking at trading momentum, as Bill mentioned, we are having an encouraging start to the year, especially in wealth management and financial markets. Looking at product income more closely, we see a similar story to recent quarters. Cash management and retail deposits were the standouts, up 83% and 74% respectively, both benefiting from rising interest rates. In cash management... we maintained pricing discipline and managed pass-through rates well to support margin expansion, notwithstanding lower average balances. In retail deposits, we saw both margin expansion and higher balances in part due to deposit campaigns across our major markets. Mortgage income was down 62%, reflecting our deliberate step back from new origination given currently unattractive pricing dynamics, with volumes falling by around $6 billion. trade and working capital income was resilient, down just 1% despite headwinds from lower balances. This reflected subdued momentum in trade activity in some markets and customer preference for local currency financing in some products. This was partly offset by margin improvement as we focused on higher return in products. The Treasury loss of around $900 million was mainly due to the impact of our hedging positions in a higher interest rates environment. This negative carry is more than offset by a corresponding increase in the net interest margin. Treasury also saw a drag from the cost of holding surplus liquidity during part of the year rather than it being deployed into client assets. Adjusted net interest income increased 23%, driven by higher rates, with the net interest margin expanding 26 basis points to 167 basis points. Strong pricing discipline and pass-through rate management ensured the group captured the benefit of rising rates. This was partly offset by headwinds from ongoing CASA to TD migration and an adverse change in the mix between treasury and customer assets. Average interest earning assets of $573 billion were up 1% or 7% excluding the impact of currency translation in our RWA optimization initiatives. financial markets income of $5.1 billion was down 2%. However, adjusting for the non-repeat of $244 million of gains on structured notes in 2022 income was up 3%. Product-wise, macro trading was down 1%, as lower FX and commodities income was partly offset by a strong performance in rates, where an expanded product offering allowed us to capture greater client wallet share. credit markets was up 5% due to strong momentum in structured and project finance. Encouragingly, flow income, which is over two-thirds of FM, was resilient even in less volatile markets, growing 7% in the year. This growth in flow income was partially offset by lower episodic income due to subdued market volatility and lower issuance levels. We saw similar trends in the fourth quarter, with continued growth in flow income up similar levels, whilst episodic income halved. Despite challenging conditions, we are now ranked number one in footprint G3 syndicated loan and bond issuance, and we gained significant wallet share in global FIC for financial institutions. Wealth momentum was strong, with income of $1.9 billion up 10%. Treasury products and bank assurance were up 16% and 17% respectively, while managed investments and secured wealth lending were impacted by client deleveraging and margin compression. Performance was broad-based, as three of our five largest wealth markets, Hong Kong, China, and Taiwan, all grew income at double-digit rates. Two key leading indicators for future wealth momentum deserve special mention. First, we onboarded over a quarter of a million new-to-bank affluent clients in 2023, which equates to around 10% of our affluent client base. New affluent clients doubled in Hong Kong and Korea and grew well in China and Singapore. Second, we have had real success in monetizing these new relationships and can do more as we look ahead. Affluent net new money was up 50% to $29 billion, which is equivalent to around an 11% annual growth in affluent assets under management. Importantly, around half of net new money was in wealth products as opposed to deposits. As rates fall, we would expect our customers old and new to continue to shift assets from deposits into the broader wealth products set. The very high levels of new-to-bank affluent customers and our success in monetizing these new relationships was a strong tailwind in 2023, and we expect it to continue to accelerate. Client experience remains at the center of our affluent proposition and is evident in our net promoter scores, where we are ranked best in class in priority banking across nine key markets. Turning to our cross-border business, we see our client supply chains and investment flows shifting and changing complexion. Cross-border income of nearly $7 billion was up 31% and earns a return on risk-weighted assets of around 13%, which is at a meaningful premium to domestic business. Some corridors deserve special mention. First, west-to-east flows, where we connect western multinational corporations and financial institutions to our footprint markets in Asia and AME. This generated $1 billion in income, up 31%. 32% in the ASEAN corridor and up 42% in the AME corridor. We are also well positioned to capture opportunities from supply chain reconfiguration in Asia, which is our biggest network engine overall, with intra-Asia income of $2.2 billion, up 24%. Last but not least, AME was our fastest-growing network region, with income up 39% to $0.9 billion, reflecting strong activity levels in the Middle East. We continue to invest across the corridors and are well positioned at both ends of the growing trade flows between our markets. Expenses were broadly flat quarter-on-quarter as we maintained cost discipline into the end of the year. Annual expenses of $11 billion increased 8% reflecting inflationary effects, ongoing investment, and supporting business growth initiatives such as new frontline staff and market expansion. We continued investing at pace in FM and wealth management. These are the two big engines of non-NII income and will deliver sustainable growth in a lower interest rate environment. Investments were part funded by $400 million of gross cost saves under the ongoing $1.3 billion cost program. Overall, we delivered 4% positive jobs in the year. Full year impairments of $528 million were over $300 million lower. This represented a 17 basis points loan loss rate, well below our through the cycle expectation of between 30 and 35 basis points. China commercial real estate impairments of $282 million were $300 million lower and mostly related to top-ups on defaulted accounts, overlay movements, and a very small number of new downgrades. we have reduced our exposure to China commercial real estate by around 40% since the end of 2021. The cover levels on defaulted accounts are high, at 88%, and we retain a management overlay of just over $140 million against further downside risk, given a sustainable recovery in prices and sales is yet to occur. Our sovereign portfolio proved resilient, with a net release of $45 million in the year, reflecting recoveries of prior charges, and we continue to monitor this portfolio closely. Retail impairments of $354 million reflects normal flows into default and a slight uptick in delinquency trends across the year. An $85 million charge in ventures was primarily from portfolio growth and increased provisions in MOCs, where we have, as a consequence, tightened credit criteria and controls. High-risk assets were up $1.2 billion in the quarter. The $1 billion increase in credit-grade 12 accounts was substantially from a change in instrument on an existing sovereign exposure with no increase in risk. Early alerts were broadly stable in the quarter. Touching briefly on the balance sheet, on an underlying basis, customer loans of $287 billion were down 2% in the quarter and 1% in the year. we deliberately pulled back on new mortgage origination due to unfavorable pricing dynamics. Client demand for borrowing in a high interest rate environment was muted, but we expect asset demand to pick up as rates drift lower. So far this year, for example, the CCIB book has started to see signs of growth as client activity has picked up. Customer deposits were up $10 billion in the quarter following the success of deposit campaigns in CPBB. We were able to run off some more expensive treasury balances as we managed the LCR down to 145%, more in line with our historical average. Lastly, turning to capital. Risk-weighted assets of $244 billion were broadly flat in the year. Asset growth and mixed changes of $12 billion were offset by optimization actions, of which $10 billion were in CCIB. Negative credit migration, principally related to sovereign downgrades, led to nearly $3 billion of additional RWA. Market RWA increased by just over $4 billion due to portfolio growth and an increase in market volatility. The CET1 ratio increased 10 basis points to 14.1% as we more than funded $2.7 billion of ordinary shareholder distributions from accrued profits. The 20 basis points benefit on completion of the aviation sale was broadly offset by the 23 basis point impact of the Buhai impairments we took in the second half. We also saw 20 basis points gain from reserve movements as the rallying rates reduced losses on the fair-valued securities portfolio. The new $1 billion share buyback will take the pro forma CET1 ratio to 13.6% in the first quarter of 2024. So, leaving a successful 2023 behind, let's now turn to the future. Our focus is on building on our double-digit ROTE and accelerating from here to deliver sustainably higher returns over the next three years. Let me take you through the financial framework that will guide the delivery of that outcome. Income will increase in a 5% to 7% range over the next three years, with 2024 income expected to be around the top of that range. In 2024, NII will grow to between $10 and $10.25 billion. Lower interest rates will be mainly offset by an expected low single-digit percentage increase in volumes and tailwinds from our hedging positions. We are stepping up our focus on improving operational leverage and are committed to delivering positive income-to-cost jobs in each year. As Bill mentioned before, we are launching a new $1.5 billion productivity and simplification program we are calling Fit for Growth. This program is designed to simplify, standardize, and digitize the group to ensure we maximize the growth opportunity that is ahead of us. Our loan loss rate guidance is unchanged. We will maintain our disciplined approach to capital deployment with low single-digit percentage growth in our WA. We currently expect the day one impact of Basel 3.1 to be no more than 5% of RWA, post-management actions and pending clarification of the rules. This financial framework will generate sufficient equity to support our plans to return at least $5 billion of capital to shareholders. In terms of returns, as Bill mentioned, our target is to steadily increase our OTE from 10%, targeting 12% in 2026 and to progress thereafter. Now to look at some aspects of the new financial framework in a little more detail, beginning with net interest income. We expect net interest income to grow to between $10 and $10.25 billion in 2024 and continue to grow thereafter. This because of four reasons. First, the impact of lower rates. The slide shows the impact of rate movements implied by market forward curves weighted across our key footprint currencies. This reflects market expectations that not all currencies will follow the same path in terms of the magnitude or timing of rate cuts. The IRBB disclosures are not the best way to estimate the impact of interest rate movements on our NII, as they assume an instant parallel shift across all currencies and a static balance sheet, neither of which are realistic assumptions. Instead, the rate we have provided you is more appropriate for our balance sheet and currency mix. On this basis, we expect a 51 basis point cut in currency-weighted forward rates in 2024, based on forward curves from earlier this year. Second, moving to our hedges. In February 2024, the last $12.5 billion of our short-term income hedges expire and will be reinvested at higher yields. This delivers a mechanical benefit of around $400 million in 2024, with a smaller benefit of $100 million in 2025. Looking further out, our structural hedges continue to provide long-term protection to net interest income, particularly if rates fall further than the market expects. On these first two points, we have included slides in the appendix that cover structural hedging, rate curve assumptions, and the usual IRBB sensitivities disclosures. Thirdly, as client asset demand picks up in a lower-rate environment, we expect to deliver low single-digit asset growth across our businesses. Near-term, we expect this mainly in trade and credit markets, with CCPL increasing over time and mortgages growing later in the three-year period. Fourth, there will be benefits deriving from our assets and liability mix. We expect higher-yielding client assets to grow at a faster rate than Treasury assets and to be a larger part of the overall mix. On the liability side, in 2025 and 2026, lower rates should drive benefits from TD to Casa migration, as the migration trend we have experienced in the recent past reverses. We have built two strong engines of growth of non-NII that will support our 5% to 7% total income target. This year, non-NII accounted for almost half of the group's income. Financial markets and wealth management represent around 70% of non-NII. Both these businesses have achieved a long-term growth rate of around 8%, and we have invested at pace in recent years in both, transforming their complexion, and these investments are paying off. We have scaled these businesses, expanded our product offering, and diversified our client base, making income more resilient through the cycle. In FM, we now have a diverse business with unrivaled access to and expertise in emerging markets and a very credible G10 capability. Over two-thirds of FM income is flow, which has continued to grow even in less volatile markets. We have increased the velocity of our FM balance sheet through our originate-to-distribute model and the build-out of digital platforms to support an expanded macro-trading product set. Our expanded product capability, including carbon trading and structured finance, makes us more relevant to our clients as they search for yield in a lower-rate environment. In wealth management, we are now top three in Asia, where growth in affluent assets are expected to outpace the rest of the world. We now have a significant opportunity to monetize over a quarter of a million new-to-bank affluent clients onboarded last year. Net new money flows of $29 billion in 2023 were broadly split between wealth products and deposits, and the mix will continue to shift towards wealth products as rates come down. To improve our operational leverage, we are going to address the complexity that slows us down at times to make better, quicker decisions and create capacity to reinvest in our business. We are embarking on a Fit for Growth program to simplify, standardize, and digitize our business and improve our organizational effectiveness to deliver $1.5 billion in savings. Fit for Growth builds on the foundations of all the work we have done over the years. It will improve productivity and our client and employee experiences while creating future capacity to reinvest and grow in a sustainably profitable way. we will back our ambition with a commitment to keep costs below $12 billion in 2026, implying a cost growth CAGR of 3% over the three years. The costs to achieve such saves will be no more than $1.5 billion, with the largest impact being in 2025. To further bolster growth, we will reinvest some of the saves into return accretive opportunities in the later years of the program, but only once the larger part of the saves has been delivered. Lastly, we will assertively manage the cost base, whatever the income outcome. We will maintain cost discipline and are targeting positive jobs in each year through 2026. As we deliver strong income growth and improved operational leverage, we expect to generate levels of equity that will support substantial capital distributions. We have a demonstrable track record of delivering shareholder returns, including today's new $1 billion share buyback and the 2023 dividend of $0.27 per share. We have returned $5.5 billion to shareholders since January 2022, exceeding our three-year shareholder distribution target in just two years. We are confident we will experience no more than 5% RWA inflation from absorbing the day-one impact of Basel 3.1 in July 2025. The rules here still need to be clarified and we will increase our mitigating actions as we know more. Looking ahead, we intend to return at least a further $5 billion to shareholders between 2024 and 2026 and continue to increase the full-year dividend per share over time. So, to recap... We expect to deliver total income growth over the next three years of between 5% and 7%, with this year around the top of that range. Our new $1.5 billion Fit for Growth program will help ensure we deliver increased operational leverage, positive jobs, and costs below $12 billion in 2026. We expect credit impairments to continue to normalize to a through-the-cycle expectation of 30 to 35 basis points. and RWAs will grow at a low single-digit percentage with a continued focus on returns discipline. This will result in ROTE increasing steadily from 10%, and we are targeting 12% in 2026, and for it to progress thereafter. With that, back to Bill.

Thanks, Diego. Looking ahead, the structural growth opportunities in our markets are compelling, and our strategy is increasingly aligned to these. Capturing them will deliver value for both our clients and the communities in which we operate. Our footprint is home to some of the fastest-growing markets in the world. GDP growth of around 5% in Asia for the next three years is around double the rate of growth in the U.S. and five times the rate in the Euro area, contributing two-thirds of global growth. We're seeing a shifting of investment flows and global supply chains across our footprint, driven by geopolitical tensions, the search for post-pandemic resilience, and changing patterns of economic production and consumption. These trends will support our business for years to come, as our unique global network allows us to capture many of them. We're present in 21 Asian markets and are the only bank with a presence in all ASEAN markets. As one of the largest international banks, we have a significant presence in Africa and across six markets in the Middle East. Having recently launched operations in Egypt, we've reinforced our commitment to the AME region, which is a unique calling card for our global client base. The scale of wealth creation in Asia and the Middle East is compelling, and our Asia wealth franchise is the third largest by AUM. Our three financial hubs in Hong Kong, UAE, and Singapore are well positioned as super connectors, capturing growth and cross-border wealth flows. And lastly, as climate risks continue to rise, by 2030, there is a $2.5 to $3 trillion per year financing gap, and we are in a position to profitably address those needs. So, with multiple opportunities for growth in our footprint, which our strategy has successfully captured, we're now focused on turbocharging our business to deliver sustainably higher returns. Turning to CCID's plans in more detail, we will continue to increase our focus on two distinct client segments. First, global multinational clients and their subsidiaries who have significant and expanding operations in our footprint. And second, our financial institutions clients who are looking to invest more in our markets or provide banking and other financial services there. Growth in business and wallet share in these client segments, which are more intensive users of our cross-border and financial markets capabilities, will support 8% to 10% growth in both cross-border and financial institutions income. It's also worth remembering that cross-border income and financial institution clients generate higher returns compared to domestic and corporate clients, respectively. In terms of products, we'll target growing our financing income by 8% to 10% through our originate to distribute model, targeting our sponsor and financial institutions clients with a broader product set. As part of that, we've entered an initial partnership with a major asset manager to jointly underwrite global credit product for subsequent distribution. We hope to enter further arrangements to leverage our own origination and that of others across key credit market segments around the world. Following the tough market conditions in 2023, we expect to be able to grow trade and working capital financing income between 6 to 8 percent by capturing market share through strategic partnerships and digital channels. As we deliver on our $300 billion of sustainable financing commitment, building on our strengths in carbon markets, adaptation finance, biodiversity, and blended finance, we now expect to grow sustainable finance income to over $1 billion by 2025. The CPBB team will build on the exceptional levels of new-to-bank affluent clients and net new money that we saw last year, with a target of growing affluent net new money flows by more than $80 billion over the next three years. We have particular expertise in international wealth clients, including fast growing examples, such as Chinese clients looking to diversify away from domestic property or equity markets. We aim to add over 100,000 international affluent clients, taking this cohort to over 375,000 by 2026. We also expect our mass retail business to continue to provide a robust pipeline of new affluent clients, targeting the up-tearing of a further 800,000 to 1 million clients across the continuum over the next three years. And lastly, we'll continue to grow customer numbers and scale through our partnerships, with partnership assets growing to over $3 billion by 2026. In ventures, We aim to convert the exceptional momentum in our two main digital banks, Mox and Trust, into sustainable profitability. Mox has grown to over 500,000 customers and is the leading Hong Kong digital bank for digital lending and digital wealth. Trust in Singapore now has around 700,000 customers just over a year after launch, making it one of the fastest growing digital banks globally. It has 12% market penetration today, and we aim to become the fourth largest retail bank in Singapore by customer numbers this year. In the rest of the venture's portfolio, we're making progress. We've launched five new ventures, including a digital assets base in UAE and Japan, and profitably exited two investments. We're now serving nearly 600,000 new customers. We're targeting for the overall segment to be ROTE accretive by 2026. Turning to the fourth pillar of the strategy we set out in 2021, sustainability. The world will not achieve its net zero ambition without a significant investment into emerging markets, which represent one of the biggest opportunities to move at pace to low-carbon technologies. However, that transition needs to be just, allowing those markets to meet global climate objectives without depriving them of their right to grow and prosper. Recognizing that, we will mobilize $300 billion of sustainable finance by 2030 and to date have delivered $87 billion against this commitment. In doing so, we've grown our sustainability asset pool by 16%, with 85% of our use of proceeds assets located in Asia, Middle East, and Africa. We continue to progress our broader sustainability agenda, including against our net zero roadmap, having announced absolute emissions reductions targets for the oil and gas sector earlier this year. We've now set out emissions baselines and production targets in 11 of 12 high-carbon emitting sectors defined by the Net Zero Banking Alliance. As a result, our sustainable finance business has gone from strength to strength with income of $720 million, up 42% this year, well on our way to deliver our 2025 target of above $1 billion. So in summary, whilst pleased to have hit our double-digit ROTE target in 2023, we will now redouble our focus on the relentless march towards returns in excess of our cost of capital. Our unique franchise in the world's most dynamic markets gives us a strategic advantage and confidence that we can continue to grow, even in a lower-rate environment. Thank you very much. Thank you. As a result of all this, we expect ROTE to increase steadily from 10% to our target of 12% in 2026 and for it to continue to progress thereafter. With that, I'll hand back to the operator for some questions.