Pre-close Trading Update

Standard Chartered PLC
12 December 2006



Standard Chartered PLC

Pre-close trading update


12 December 2006


Standard Chartered PLC will be holding discussions with analysts ahead of its
close period for the full year ending 31 December 2006. This statement details
the information that will be covered in those discussions.


The following sections outline Standard Chartered's progress in the second half
of 2006, including a review of the overall business and an update on the
performance of Consumer Banking and Wholesale Banking.


All comparisons will be made on a full year basis unless otherwise stated.



1.      Overall


Standard Chartered has continued to make progress in the second half of 2006 and
on a full year basis, income and working profit growth are expected to be
strong.  We expect to deliver a good performance for the full year.


Based on our performance year to date, we expect to be broadly in line with the
current market consensus for operating profit before tax for 2006.


In line with guidance previously given on 8 August, 29 September and 20
November, we continue to see strong income momentum in both businesses with good
performances across a wide range of products, customer segments and geographies.


Net interest margins have remained broadly stable.


Given the momentum of our business, we have taken the opportunity to accelerate
the rate of investment in our franchise and as a result, expense growth is
currently expected to be broadly in line with income growth.


We take a dynamic approach to managing expense growth, pacing investments to
reflect income growth and the overall performance of the business.  We continue
to pursue multiple process redesign, restructuring and hubbing activities across
the Group to improve efficiency, and we are disciplined and focused in our
investments for future growth.


We are comfortable with asset quality for both businesses.  In Consumer Banking
excluding Taiwan, the loan impairment charge continues to reflect the asset mix
and maturity profile.  The Taiwan credit environment continues to improve, and
the asset quality of the Wholesale Banking book remains good.


The integrations of Union Bank of Pakistan and of Hsinchu International Bank are
progressing well with contribution to overall performance in line with
expectations developed at the time of acquisition.  The impact on the Group will
not be material in 2006.


On an underlying organic basis (excluding Korea, Hsinchu and Union) the rate of
income growth for the full year remains in line with that reported for the first
six months of the year.


We continue to make progress in Korea as we develop the business, introduce new
products and roll out new practices from the Group.



2.      Consumer Banking


In Consumer Banking, we continue to make good progress with strong overall
income growth, and on an underlying organic basis (excluding Korea, Hsinchu and
Union), we continue to see good income growth.


Markets such as Korea, India, Other APR and MESA are achieving good double-digit
income growth, and in Singapore and Malaysia we continue to make progress.  In
Hong Kong, we continue to deliver income growth despite strong competitive
pressures.


Wealth Management and SME are achieving excellent income growth across many of
our markets, and especially in Hong Kong, Singapore, India, MESA and Other APR
in particular China and Indonesia.


Mortgage income has been affected by rising interest rates and strong
competition in some key markets as we have pursued disciplined pricing to
protect margins.


We are achieving income growth in credit cards and personal loans in some
selective markets such as MESA, especially UAE and Pakistan, and Africa as we
grow the unsecured business.


Our balance sheet continues to broaden, diversify and strengthen as a result of
this changing mix of products.  Customer assets remain in line with the first
half as growth in cards, loans and SME have balanced the decrease in mortgage
assets.  We continue to see double-digit growth in liabilities.


In the second half of 2006, we have accelerated investment in Consumer Banking
with particular focus in three areas: distribution in China, Consumer Finance in
India and Korea, and the Private Banking business.


Loan impairment continues to reflect the asset mix and maturity profile.  As
expected, in the second half of 2006, there has been a sharp half on half
decrease in the loan impairment charge in Taiwan as the situation trends to more
normalised levels and the emerging levels of stress seen in the first half of
this year in Indonesia and Thailand have reduced.


3.      Wholesale Banking


On a full year basis, Wholesale Banking is delivering very strong income
momentum, both overall and on an underlying organic basis (excluding Korea,
Hsinchu and Union), with broad based growth across multiple products and
geographies.  Second half income is broadly in line with the first half.


Client driven income continues to perform strongly across all client segments.
Reflecting our client focused strategy, the mix of client to own account income
remains consistent with guidance previously given.


The client centric strategy and resultant increase in cross-sell ratios, as
presented during the Wholesale Banking Investor Day, has been instrumental in
driving client income.


All regions are contributing to the double-digit income growth illustrating the
geographic diversity of Wholesale Banking income. Markets such as Singapore,
Malaysia, Other APR, India, MESA and Africa are performing particularly well
with high double-digit income growth.


We continue to manage expense growth in line with income growth on a full year
basis, as we expand product capability and client coverage, especially in India
and Greater China. Our investments in enhancing our Global Markets capabilities
have contributed to strong growth in our Rates and FX and Corporate Finance
businesses. Cash Management has benefited from both volume growth and the rising
interest rate environment in many of our markets.


The quality of the Wholesale Banking loan book is good. Our risk management
practices enable us to continue to benefit from the benign credit environment in
our geographies and we have had continued success in recoveries.


As a result of our disciplined management of risk and capital, Risk Weighted
Assets have grown at a slower rate than client income growth.



4.      Conclusion


In summary, the Group's businesses are performing well.  We are in rapidly
growing markets and we have the competitive strengths to pursue profitable
growth.  Income momentum is strong, and we continue to dynamically manage
expenses and risks. Our acquisitions are delivering.  We have a well-balanced
business.


Peter Sands, Group Chief Executive, commented, 'We have good momentum in both
businesses. The integrations of Union Bank and Hsinchu International Bank are
progressing very well. We are delivering good performance through client focus,
geographic diversity and innovation in products.'


The pre-close conference call, hosted by Richard Meddings, Group Finance
Director, will be webcast live on Standard Chartered's website 
http://investors.standardchartered.com from 0930 GMT onwards. A recording of the
webcast and a podcast will also be available shortly after the event.



For further information, please contact:


Steve Atkinson, Head of Investor Relations                  + (44) 207 280 7245

Sean Farrell, Head of Media Relations                       + (44) 207 280 7163

Ruth Naderer, Head of Investor Relations, Asia Pacific      + (852) 2820 3075



It is possible that this document could or may contain 'forward-looking
statements' that are based on current expectations or beliefs, as well as
assumptions about future events.  These forward-looking statements can be
identified by the fact that they do not relate only to historical or current
facts.  Forward-looking statements often use words such as anticipate, target,
expect, estimate, intend, plan, goal, believe, will, may, should, would, could
or other words of similar meaning.  Undue reliance should not be placed on any
such statements because, by their very nature, they are subject to known and
unknown risks and uncertainties and can be affected by other factors that could
cause actual results, and Standard Chartered's plans and objectives, to differ
materially from those expressed or implied in the forward-looking statements.
Any forward-looking statements speak only as of the date of this document.

Standard Chartered undertakes no obligation to revise or update any forward-
looking statement contained within this document, regardless of whether those
statements are affected as a result of new information, future events or
otherwise.




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