Trading Statement

Standard Chartered PLC
22 June 2005



Standard Chartered PLC

Pre-close trading update


22 June 2005


Standard Chartered PLC will be holding discussions with analysts ahead of its
close period for the half year ending 30 June 2005. This statement details the
information that will be covered in those discussions.


On 8 August 2005 we will present our first half 2005 numbers in compliance with
IFRS as endorsed by the EU or expected to be applicable at 31 December 2005.
Unless otherwise stated, comments that are made with reference to 2004 are made
in relation to the first half results under IFRS excluding IAS 32 & 39 (as
announced on 12 May 2005) and excluding the one-off items identified in our 2004
Interim Report (amounting to USD92 million) and the goodwill impairment charge
under IFRS identified on 12 May (amounting to USD67 million). Operating Profit
before Tax for the first half of 2004 on this basis was USD1,082 million (and
including one-off items and goodwill impairment was USD1,107 million).


Comments made in sections 1-4 refer to Standard Chartered including acquisitions
completed in 2004 but exclude the acquisition of Korea First Bank ('KFB')
completed on 15 April 2005. In section 5 we give an update on KFB specifically.




1. Overall


Standard Chartered has continued to make strong progress in the first few months
of 2005.


Performance is in line with guidance given to the market in February 2005, in
particular:


  • Continued strong growth in customer income across both businesses

  • Growth in expenses broadly in line with income

  • Consumer Banking loan impairment charges growing with assets; Wholesale
    Banking charges still benefiting from a benign credit environment.


The Group has good organic income momentum in both Wholesale Banking and
Consumer Banking across a wide range of products, customers and geographies,
with excellent growth in a number of markets.


Overall asset growth has continued. Consumer Banking is achieving good asset
increases across a number of markets and has benefited from the impact of PT
Bank Permata ('Permata'). Wholesale Banking has also shown good asset growth
whilst maintaining its disciplined approach.


Net interest margins in most markets have remained broadly stable, despite
significant margin pressure in India and Singapore.


We are achieving good productivity improvements, but are also continuing to
invest to capture the many opportunities across our markets. Expenses have
increased broadly in line with income.


2. Income


Consumer Banking


Consumer Banking continues to deliver good income growth.


Most geographies have seen double digit income increases; with markets such as
UAE, Other MESA, Africa and Other APR maintaining strong double digit growth
trajectories. The UAE, Other MESA and Africa have benefited from good asset
momentum. Other APR income growth has accelerated significantly, driven by
Thailand, Taiwan and Indonesia (including Permata).

In Hong Kong we are seeing signs of modest consumer asset growth. Income is
broadly stable. Our focus on operational efficiencies has enabled us to invest
in product development, marketing and distribution channels to capture
opportunities in the improved economic environment, while keeping tight control
on expenses.


In Singapore margin pressures have impacted income. We are taking steps to
improve operational efficiency and to grow through innovation.


India continues to see strong asset and liability growth, but competitive
pressures have affected margins, resulting in income growing more slowly than
the balance sheet. We are continuing to invest in building capability and
presence in India, which will impact operating profits in the near-term.


Wholesale Banking


Wholesale Banking continues to demonstrate good income momentum. Income growth
is broad based across both Commercial Banking and Global Markets products. Our
investments in more sophisticated Global Markets and transactional products are
generating good returns. Growth is also broad-based from a customer segment
perspective. We are achieving good growth with Multinational Corporates,
Financial Institutions and Local Corporates. There is particularly good growth
in Hong Kong, Other APR, UAE and Other MESA. Income in Singapore and Africa has
been broadly flat in part reflecting increasing pressure in Zimbabwe.


We are maintaining our disciplined approach to deployment of capital to ensure
we sustain attractive returns.


3. Expenses


We continue to place great emphasis on the tight management of expenses. We are
focused on improving the efficiency of the businesses to enable us to invest for
future growth.


We continue to invest in both our Consumer and Wholesale Banking businesses,
pacing our investments in response to the overall performance of the businesses
and the emergence and nature of the opportunities. We accelerated the pace of
investment in 2004 and are seeing the benefits in our income momentum in 2005.


In Consumer Banking we continue to invest to take advantage of growth
opportunities in markets such as China, India, Thailand, Pakistan, Indonesia
(both organically and through the acquisition of a stake in Permata) and Japan.


In Wholesale Banking, we have maintained our approach of building our product
capabilities and expanding our geographic coverage through investments in
Corporate Finance, Transaction Banking and Global Markets. Investments include
the integration of ANZ's Project Finance business.


4. Loan Impairments


Consumer Banking


Overall, the Consumer Banking loan impairment charge is increasing in line with
assets, the asset mix and as a result of the changes required under IAS 32 and
39.

In Hong Kong, impairments stabilised in the second half of 2004, reflecting the
improvement in the bankruptcy situation and are expected to increase in line
with assets and the addition of Prime Credit.


Wholesale Banking


The Wholesale Banking loan impairment charge is still benefiting from a benign
environment in our markets as well as from our strengthened risk management
practices and continued good progress in recoveries.

5. Korea First Bank

We have completed the acquisition of KFB and have made good progress in a number
of key areas. These include the formation of a strong and experienced Board, the
appointment of the senior management team and agreement with the union who are
supportive of our aim to make KFB a leading financial services company in Korea.
The integration is proceeding smoothly and is ahead of schedule. With Standard
Chartered's deep experience in Asia and strong product range, the KFB
acquisition provides a strong platform for value creation and rapid sustained
profit growth.


Since completion, trading has been in line with our expectations and is on track
to meet the targets we stated on 10 January 2005. At our interim results we will
separately disclose the impact of the acquisition of KFB on the Group's
earnings.


Bryan Sanderson, Chairman, commented, 'We are continuing to build on our track
record of financial performance coupled with prudent governance. The benefits of
our focused strategic drive to grow within our markets are becoming ever
clearer.'

Mervyn Davies, Group Chief Executive, commented, 'We are demonstrating, once
again, good income momentum aided by the investments we have made in our high
growth markets. We have shown we can deliver sustainable performance, while
achieving ambitious goals. We are continuing to drive performance and our
momentum reflects the success of our business strategy and the disciplined way
it is being implemented.


'The integration of Korea First Bank is one of our highest priorities and, I am
pleased to report, it is progressing very well.'




For further information, please contact:


Romy Murray, Head of Investor Relations  (44) 207 280 7245

Cindy Tang, Head of Media Relations  (44) 207 280 7163

Betty Ku, Head of Corporate Affairs, Hong Kong  (852) 2821 1310






This document contains forward-looking statements, including such statements
within the meaning of Section 27A of the US Securities Act of 1993 and section
21E of the Securities Exchange Act of 1934. These statements concern or may
affect future matters. Forward-looking statements can be identified by the fact
that they do not relate to historical or current events. Forward-looking
statements often use words such as 'expect', 'estimate', 'intend', 'plan',
'goal', or 'believe' or similar words. These statements may include Standard
Chartered's future strategies, business plans, and results and are based on the
current expectations of the directors of Standard Chartered. They are subject to
a number of risks and uncertainties that might cause actual results and outcomes
to differ materially from expectations outlined in these forward-looking
statements. These factors are not limited to regulatory developments but include
stock markets, IT, developments, and general economic, competitive and general
operating conditions.


                      This information is provided by RNS
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