AGM Statement

Standard Chartered PLC
2 May 2002



Excerpts from the speech made to shareholders by Sir Patrick Gillam, Chairman,
Standard Chartered PLC, at the Annual General Meeting held today at 12:00 noon
in London

'When I spoke to you last May we knew that the slowdown in the US economy would
have an effect on many of our markets. What we could not have known about was
September 11th. This would prove to be a catalyst for a more dramatic impact on
the global economy, severely reducing GDP growth.

In the circumstances, we can be pleased with many aspects of our results in
2001. We increased revenues by 9 per cent and maintained cost growth at 5 per
cent including the impact of acquisitions.

Although the pre-tax profit figure was affected by a significant increase in the
bad debt charge, our progress and our confidence in our future has enabled your
Board to recommend a final dividend of 29.1 cents. This gives a total dividend
of 41.92 cents for 2001, an increase of 10 per cent over 2000.

I am sure you have noticed from the Annual Report and the displays outside that
we have changed our branding. This is to meet a need to be more contemporary and
dynamic in our markets. Unlike several other companies we have not changed our
name. We believe this change in branding will have a significant and very
positive effect on our business.

In 2001, great effort was made to integrate the acquisitions made in 2000 of
Grindlays and Chase Hong Kong and also to ensure that the cost savings that we
had identified from our wider efficiency programme were achieved. We are ahead
of schedule in these programmes.

In the Annual Report we commented on two particular areas which adversely
affected our performance - Malaysia and Hong Kong bankruptcies.

Malaysia bore the brunt of the US downturn and the Bank's profitability there
was significantly affected. We have taken action. Management changes have been
made and underwriting and credit standards tightened. With slow recovery in the
United States, Malaysia too is improving. This year, growth is forecast at three
per cent and over five per cent next year. This change in economic outlook is
already being reflected in our trading.

In Hong Kong, the banking sector has been affected by the growth in personal
bankruptcies. As the market leader in credit cards, this has directly affected
us. When we announced our results, we said that personal bankruptcies in Hong
Kong would continue to be an important issue this year. This has been the case.
In the first quarter bankruptcy related provisions totalled US$66 million.

Notwithstanding the problems caused by this situation in Hong Kong, the Group
overall performed solidly in the first quarter. I am confident that when we
announce our interim results on August 7th, we will continue to demonstrate
steady progress.

I am delighted to welcome Mervyn Davies as Group Chief Executive. Mervyn became
a member of the Board in 1997, having joined Standard Chartered in 1993. He has
wide experience of all aspects of banking. He worked in Asia for several years,
and latterly was based in Hong Kong with responsibility for North East Asia and
for Technology and Operations. He has an enormous knowledge and understanding of
the Bank and our markets.

He takes over an institution that:

-     Has a clear strategy

-     Is in the right markets and businesses

-     Offers the right products.

But the performance had slipped. We have made changes hence the enormous
importance of the agenda that Mervyn set out in the Report and Accounts.

Let me remind you. We must improve return on equity and our performance by:

-     Better capital efficiency

-     Building market share in Consumer Banking

-     Increasing returns in the Wholesale Bank

-     Controlling risk more effectively

-     Positioning ourselves to capture the potential of China

-     Continuing to reduce costs and increase efficiency

We are already making real progress:

For example, we recently set out our plans for deploying capital into our high
returning consumer businesses. These plans are vital to our achieving the target
of a 20 per cent return on equity over time.

We are also seeing real benefit from major investment in technology and
operations. This modernisation of the Bank will have a significant impact on our
profitability in the future.

Turning to the global economy there are signs that the US is recovering and this
is positive for Asia. We expect moderate growth in Hong Kong and Singapore in
2002, accelerating in 2003.

Other markets, such as India and the UAE, continue to show resilience, supported
by steady domestic demand. We also expect low global inflation in 2002, which
should prevent a rapid rise in interest rates.

China too continues to develop and grow. Accession by China to WTO is a
tremendous opportunity for Standard Chartered - we are one of a very small
number of foreign banks positioned to benefit as the Chinese banking market
opens.

However, we need to exercise some caution when assessing the economic outlook.
The continuing conflict in the Middle East creates worldwide uncertainty and
banks around the world are troubled also by events in Argentina and the collapse
of companies like Enron.

Looking forward, we will continue to serve the banking needs of the emerging
middle class in many of our markets in Asia and Africa. This fuels the demand
for our products and services. It is our real opportunity and why our focus
continues to be on increasing market share.

We remain committed to listing in Hong Kong and there is a possibility that we
will seek to do so in the second half of this year. Any decision on structure
and timing will take account of our desire to maximise return on equity.'

- Ends -

For further information please contact:

Steve Seagrove     Group Head of Corporate Affairs     [phone]

Paul Marriage      Head of Media Relations             [phone]

www.standardchartered.com

Note to Editors:

Standard Chartered - the world's leading emerging markets bank

Standard Chartered is the world's leading emerging markets bank. It employs
30,000 people in over 500 offices in more than 50 countries in the Asia Pacific
Region, South Asia, the Middle East, Africa, United Kingdom and the Americas.

The Bank serves both Consumer and Wholesale banking customers. Consumer Banking
provides credit cards, personal loans, mortgages, deposit taking and wealth
management services to individuals and small/medium sized businesses. The
Wholesale Bank provides services to multinational, regional and domestic
corporate and institutional clients in trade finance, cash management, custody,
lending, foreign exchange, interest rate management and debt capital markets.

With nearly 150 years in the emerging markets the Bank has unmatched knowledge
and understanding of its customers in its markets.

Standard Chartered recognises its responsibilities to its staff and to the
communities in which it operates.


                      This information is provided by RNS
            The company news service from the London Stock Exchange