Chairman's Statement-Excerpts

Standard Chartered PLC
11 May 2000


EXCERPTS FROM THE STATEMENT BY SIR PATRICK GILLAM, CHAIRMAN, STANDARD
CHARTERED PLC TO SHAREHOLDERS AT THE ANNUAL GENERAL MEETING HELD TODAY,
THURSDAY 11TH MAY 2000

'At this meeting two years ago I reported to you that profits before
provisions had topped the £1 billion mark for the first time.  Since then the
Bank has been affected by difficult economic conditions in many of our Asian
markets.  It is therefore remarkable that in 1999 our profit, before
provisions, still held above £1 billion.  

Pre tax profits in 1999 were £507 million after provisions of £495 million. 
This result was disappointing but expected given the state of the economies in
East Asia.  Evidence of the effort made by management to mitigate the crisis
shows in our 9 per cent rise in revenues, excluding foreign exchange dealing.

Our belief in the prospects of this company enabled the Board to recommend a
final dividend of 16.1 pence per ordinary share, making a total for the year
of 22.85 pence.  This is an increase of 10.1 per cent over 1998. 

Eighteen months ago, when Rana Talwar was appointed Group Chief Executive,
Standard Chartered was faced with a simple decision - either batten down the
hatches and ride out the turmoil or take the opportunity to build the
business.  We decided we had a duty to our shareholders to take advantage of
opportunities we saw in our key markets.  Our objective was to emerge from the
downturn in a stronger competitive position.  

In the annual report I outlined the four components of our strategy for
growth.  

- The first was to grow our position in our three core markets in Hong Kong,
Singapore and Malaysia.
- Second, we wanted to develop three other markets in Asia.  We identified
Taiwan, Indonesia and Thailand as having the potential to rival our operations
in Singapore and Malaysia.  
- Third was to build on our successful businesses in the Middle East, South
Asia and Africa.  
- The final component was to expand our business with multinational companies
and institutions.
 
In line with this strategy, we acquired 75 per cent and management control of
Nakornthon Bank in Thailand.  This significantly strengthened our position in
a market which is showing excellent growth.  The integration of Standard
Chartered Nakornthon is progressing well.
 
Taiwan continues to be attractive.  The Board was there last month and our
view was confirmed that Taiwan is a market in which Standard Chartered should
have a larger presence.  Currently we cannot buy a local bank until the
business changes.  We will therefore continue with our organic growth
strategy.  
 
In Indonesia, we withdrew from discussions to acquire Bank Bali.  It had
become apparent that it would be impossible to manage that company
effectively.  Indonesia is, however, still very much on our agenda.  For the
time being, it is likely that we will grow by adding new branches and ATMs.
 
During 1999 we identified the possibility of making a significant acquisition
in the Middle East and South Asia.  Last month we signed an agreement to
acquire Grindlays from ANZ.  Grindlays is a perfect fit for us.  It positions
Standard Chartered as the leading international bank in the region, with major
operations in India, Pakistan, Bangladesh and the UAE.  These are markets
where there is a rapidly growing middle class, with aspirations for
international products and high quality banking services.  This is a major
opportunity for us as the emerging markets bank.
 
As we invest to strengthen the range of products and services we offer, we are
also progressing over twenty e-commerce initiatives.  
 
We have introduced e-mortgages in Hong Kong.
 
We have introduced on-line treasury dealing.
 
We have introduced systems to improve our regional cash management and trade
finance operations.  
 
Many of the markets in which we operate are some way behind the west with
regard to e-commerce.
 
There is also greater regulation in many of our markets, which inhibits new
entrants.  This, combined with our powerful franchise, is a benefit for us and
makes us an attractive partner to third parties who wish to penetrate these
markets.  There is therefore, potentially, a huge prize out there.
 
In the current year, positive growth is forecast in every Asian market in
which we operate and bad debts are receding.  This confirms your Board's
belief that these markets continue to offer great opportunity for the Group. 
As these markets recover we are better positioned now than we were two years
ago to grow our business and to increase profitability.  Trading so far this
year is as planned.'

For further information please contact:

Pamela McGann  Group Head, External Affairs  44 (0)20 7280 7245
Tim Halford  Director, Corporate Affairs  44 (0)20 7280 7159


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