Pre-Close Trading Update

Standard Chartered PLC
20 June 2007


Standard Chartered PLC

Pre-close Trading Update


20 June 2007


Standard Chartered PLC will be holding discussions with analysts and investors
ahead of its close period for the half year ending 30 June 2007.  This statement
details the information that will be covered in those discussions.


The following sections outline Standard Chartered's progress in the first half
of 2007, including a review of the overall business, an update on the
performance of Consumer Banking and Wholesale Banking, and an update on the most
recent acquisitions. Unless otherwise stated, references to 2006 are made in
relation to the first half of the year.


Overall


Standard Chartered has continued to perform very strongly, building on the
excellent start to 2007. The Group has very strong income momentum, especially
in Wholesale Banking.  We have accelerated investment, whilst still producing
very good double digit working profit and operating profit growth.


The Group has very good double digit income growth in both Consumer Banking and
Wholesale Banking and across almost all geographies.


The Group continues to deliver a strong performance across a wide range of
products and customer segments.


Net interest margins have remained broadly stable.


The Group continues to take a dynamic approach to managing expense growth. In
line with guidance previously given on 27 February and 3 May, we have stepped up
the pace of investment, particularly in Consumer Banking, and we expect that
expense growth will exceed income growth for the first half of 2007.  For the
full year, we anticipate that expense growth will be broadly in line with income
growth.


We are comfortable with the asset quality for both businesses.


The integrations of Union Bank and of Hsinchu International Bank are progressing
well with contribution to Group performance in line with expectations.


Business Performance


Consumer Banking


Consumer Banking has delivered strong income growth.  On an underlying basis
(excluding the impact of the recent 2006 acquisitions), Consumer Banking has
maintained good income momentum.


Markets such as Other APR, MESA, and Singapore have performed particularly well
with India, Malaysia and Korea also generating double digit income growth.


In Hong Kong, the rate of income growth has accelerated despite competitive
pressures.


Wealth Management and SME are both achieving excellent growth across many
geographies, with particularly strong performances in MESA, India, Korea, Hong
Kong, Malaysia and Singapore.



Mortgage income, however, has continued to be affected by rising interest rates,
regulatory constraints and strong competition in a number of key markets.


We have accelerated investment across the franchise, especially in: distribution
(where we have upgraded and added outlets and ATMs); the Private Bank (which has
now been launched in 7 countries); China, where we launched RMB Consumer Banking
following the incorporation of the business in April; and in India.  In line
with previous guidance, growth in expenses will therefore significantly exceed
the growth in income in the first half of the year.


Consumer Banking loan impairment has improved slightly on the first half of
2006, in line with expectations.  This reflects: the improving situation in
Taiwan, where impairment is moving to more normalised levels; inclusion of the
two most recent acquisitions; and the change in volume, mix and maturity.


The Consumer Banking asset position reflects strong growth in unsecured
products, inclusion of the most recent acquisitions but also pressure on secured
products in some key markets.



Wholesale Banking


Wholesale Banking continues to demonstrate very strong income momentum, both
overall and on an underlying basis (excluding the impact of the recent 2006
acquisitions), delivering broad based growth in all key client segments and
across multiple products.


Client driven income has performed very strongly, showing high double digit
growth as a result of our successful client centric strategy and an increase in
cross-sell ratios.


The investments made in enhancing Global Markets capabilities have contributed
to strong growth in the Rates and FX client business, Capital Markets and
Corporate Finance businesses. Transaction Banking, especially Cash Management,
continues to benefit from both volume growth and the rising interest rate
environment in many markets.


Investment has been accelerated as Wholesale Banking has: expanded client
coverage and product capabilities (investing in commodity derivative capability
and Transaction Banking); invested in systems infrastructure and premises as the
business continues its rapid expansion; and invested in its control environment
and regulatory reporting infrastructure (improving anti money laundering
processes and continuing investment for Basel). Notwithstanding this investment
programme, Wholesale Banking will deliver positive jaws for the first half of
the year.


Wholesale Banking continues to benefit from the benign credit environment.  The
quality of the Wholesale Banking loan book remains excellent.  New impairments
remain low, and recoveries and releases continue to be achieved, albeit at lower
levels than in 2006.


Growth in Risk Weighted Assets has strong momentum but is growing more slowly
than client income.



Korea


In Korea, overall income growth has been moderate.  Good performance in Consumer
Banking income reflects strength in SME and Wealth Management. Income
performance in Wholesale Banking has been weaker, remaining broadly flat on the
second half of 2006.  Growth in expenses has exceeded income growth, in part
reflecting a full allocation of Group expenses as well as continued investment
in new products and infrastructure.


Pakistan and Taiwan


The integration of Union Bank and Standard Chartered operations in Pakistan is
proceeding smoothly, with significant investment in rebranding and enhancing the
branch network. Progress has been particularly strong in Capital Markets,
Lending and SME.



The integration process in Taiwan is at a much earlier stage, but progress is
good and the amalgamation of Hsinchu and Standard Chartered's existing business
is expected imminently. We remain confident that Hsinchu will be EPS accretive
and deliver double digit ROI in 2008.



Conclusion


In summary, the Group is performing very strongly.  Income momentum is very
strong and expense growth remains at high levels as we continue to make further
investment in the franchise.  The approach to risk management remains highly
disciplined.


Peter Sands, Group Chief Executive, commented, 'It's been another period of
excellent delivery.  We have incorporated our business in China, launched the
Private Bank, and the integration of our acquisitions is going very well.  The
pace of growth in both businesses is strong and the credit quality of our loan
portfolios remains robust.  The Group is in great shape.'


The pre-close conference call, hosted by Richard Meddings, Group Finance
Director, will be webcast live on Standard Chartered's website.  To access the
webcast follow this link http://investors.standardchartered.com from 10:30 BST
onwards.  A recording of the webcast and a podcast will also be available
shortly after the event.


For further information, please contact:


Stephen Atkinson, Head of Investor Relations             [phone]

Tim Baxter, Head of External Communications              [phone]

Ruth Naderer, Head of Investor Relations, Asia Pacific   [phone]


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, and include matters which are not facts.  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 contained in this
document based on past or current trends and activities of Standard Chartered
should not be taken as a representation that such trends or activities will
continue in the future. 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.



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

TSTSEISUSSWSEFM