STANDARD CHARTERED UNVEILS 2002 ANNUAL RESULTS

A leading consumer and corporate banking business in Middle East and South Asia

Mar 03 - 09, 2003

Standard Chartered PLC announced in London its annual results for 2002, unveiling pre-tax profits of USD1,262 million, ahead of most analysts' forecasts, on revenues of USD4,539 million. The Group's net revenues rose 3 per cent, with pre-tax profits rising 16 per cent, while costs were reduced by USD28 million over 2001.

During the presentation, Mervyn Davies, Group Chief Executive, made special mention of the strong performance of the Middle East and South Asia region, which contributed over 20% to the Group's pre-tax profits, on revenues of USD501 million. The region, which includes the United Arab Emirates where the Bank's regional headquarters are based, showed increased revenues of 53.7% on 2001.

Highlighting the increasing importance of the region to Standard Chartered, Mervyn Davies stated, "In the Middle East and South Asia (MESA) region we completed the Grindlays integration and we are seeing strong growth. The United Arab Emirates is one of our top five markets, and Bangladesh, Pakistan, Bahrain, Sri Lanka and Qatar are all well-established businesses with good potential."

David Edwards, Regional General Manager for Standard Chartered in the Middle East and South Asia, noted: "We have been a part of the fabric of the communities in this region, in many cases, for over 50 years' and the growth of the Middle East and South Asia business is a clear validation of our commitment to these markets."

The Bank has recently renovated banking halls across the region with the advent of its refreshed brand. The first revitalising of the brand in all the Bank's 150-year history, the new look is younger and more vibrant, and reflects the Bank's confident view of their future.

When asked about future plans, Mr. Edwards confirmed, "The Bank is dedicated to continuing to grow our business here. We have a strong portfolio of both consumer and corporate banking products in all our markets, and are leaders in many market segments across the region. We will continue to build on these, and to provide the best quality of service and product to our customers."

Other highlights were the Bank's great revenue performance in Consumer Banking markets beyond its traditional base of Hong Kong, and outstanding cost and risk management across the Bank.

Headquartered in London and listed on the FTSE 100 in the United Kingdom and the Hang Seng Index in Hong Kong, the Bank has an unparalleled and unique franchise, including two of Asia's most promising large markets: China and India. In India, Standard Chartered expects to open 23 new branches in 2003, expanding its network to 81 branches and 156 ATM's in 25 of India's major cities.

In Pakistan, Chief Executive Azhar Hamid added, "We are extremely proud of the Group's performance in 2002. Results indicate the significance of the Standard Chartered Pakistan franchise to the Group. In 2002 Pakistan successfully completed the amalgamation of Standard Chartered and Grindlays which has further enabled us to deliver world class products and services through our enhanced branch and ATM network. Our priorities in 2003 and beyond continue to focus on meeting the financial services needs of our customers."

HIGHLIGHTS

RESULTS
•Net revenue up 3 per cent to $4,539 million from $4,405 million.
•Costs down by $28 million over 2001.
•Debt charge down by $19 million at $712 million, despite bankruptcy issue in Hong Kong and Argentina.
•Pre-tax profit rose 16 per cent to $1,262 million compared with $1,089 million in 2001.
•Normalised earnings per share at 74.9 cents (2001: 66.3 cents).
•Normalised return on equity at 13.4 per cent (2001: 12.0 per cent).
•Annual dividend per share increased by 12.1 per cent to 47.0 cents.
Significant achievements
•Cost income ratio (normalised basis) reduced from 55.8 per cent to 53.6 per cent.
•Good growth in Consumer Banking across a wide range of dynamic markets.
•Wholesale Banking profit up 35 per cent.
•Launched dual listing in Hong Kong.
•Generated strong growth in India and Middle East.
•Established a strategic partnership with Bank of China.
- Made $50 million investment in BOC Hong Kong (Holdings) Limited.
- Signed Memorandum of Understanding for alliances on product and distribution.
Significant expansion of shared service centres in Chennai and Kuala Lumpur leading to efficiency gains.

Commenting on these results, the Chairman of Standard Chartered PLC, Sir Patrick Gillam, said: "We have delivered a strong performance with a good increase in trading profit, despite turbulent economic conditions. We have reduced our costs and brought down our bad debt charge.

In 2003, we celebrate our 150th year as a company. This longevity says a lot about our strengths and the market positions we hold. However, the anniversary is a time to look forward, not back. There is an opportunity to deliver a step change in performance by continuing to be innovative and aggressive in our markets and remaining focused on moves that will improve shareholder returns."