Standard Chartered PLC

Standard Chartered

STANDARD CHARTERED PLC

(Incorporated in England and Wales and registered as a public limited company)

INTERIM RESULTS FOR 2003

HIGHLIGHTS

STANDARD CHARTERED PLC RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2003

Results

Profit before tax rose 17 per cent to $741 million compared with $634 million in H1 2002 (H2 2002: $628 million).
Net revenue up three per cent to $2,347 million from $2,285 million (H2 2002: $2,254 million).
Costs firmly controlled at $1,292 million (H1 2002: $1,244 million; H2 2002: $1,313 million) with significant investment made in the business.
Debt charge down to $308 million (H1 2002: $407 million) due to proactive management of personal bankruptcies in Hong Kong.
Normalised earnings per share at 41.7 cents (H1 2002: 36.1 cents; H2 2002: 38.8 cents).
Normalised return on equity at 14.2 per cent (H1 2002: 12.8 per cent; H2 2002: 13.9 per cent).
Interim dividend per share increased by ten per cent to 15.51 cents.

Significant achievements

Normalised earnings per share up 16 per cent.
Strong performance in many markets, including India, United Arab Emirates, Thailand, Taiwan, the Philippines, Bangladesh, Pakistan and Kenya.
Expanded network, including opening branches in eight new cities in India.
Good progress in Consumer Banking.
Strong performance in Wholesale Banking.
Re-entered South Africa.

Commenting on these results, the Chairman of Standard Chartered PLC, Bryan Sanderson, said:

"I am pleased to be able to report strong performance despite the economic uncertainty that dominated the first half of 2003. These results demonstrate that we have developed the strength and flexibility to withstand the tough conditions that prevailed in some markets and to thrive where conditions were more favourable."

Unless another currency is specified, the word "dollar" or symbol "$" in this document means United States dollar.

Standard Chartered PLC

7-8-2003

Standard Chartered PLC

STANDARD CHARTERED PLC – SUMMARY OF RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2003

	6 months ended 30.06.03 $m	6 months ended 30.06.02 $m	6 months ended 31.12.02 $m
RESULTS
Net revenue	2,347	2,285	2,254
Provisions for bad and doubtful debts and contingent liabilities	(308)	(407)	(305)
Profit before taxation	741	634	628
Profit attributable to shareholders	489	416	428
BALANCE SHEET
Total assets	119,915	112,817	113,010
Shareholders' funds:
Equity	7,023	6,470	6,695
Non-equity	625	1,273	632
Capital resources	13,537	13,507	13,031
INFORMATION PER ORDINARY SHARE	Cents	Cents	Cents
Earnings per share – normalised basis	41.7	36.1	38.8
basic	39.4	31.8	25.8
Dividends per share	15.51	14.10	32.90
Net asset value per share	599.0	570.7	572.1
RATIOS	%	%	%
Post-tax return on equity – normalised basis	14.2	12.8	13.9
Cost to income ratio – normalised basis	53.4	51.9	55.3
Capital ratios:
Tier 1 capital	8.8	9.0	8.6
Total capital	14.5	15.9	14.5

Results on a normalised basis reflect the Group's results excluding amortisation of goodwill, profits/losses of a capital nature and profits/losses on repurchase of share capital.

STANDARD CHARTERED PLC – CHAIRMAN'S STATEMENT

I am pleased to be able to report strong performance despite the economic uncertainty that dominated the first half of 2003. These results demonstrate that we have developed the strength and flexibility to withstand the tough conditions that prevailed in some markets and to thrive where conditions were more favourable.

Our profit before tax was $741 million, 17 per cent higher than the same period in 2002. Normalised earnings per share was up 16 per cent at 41.7 cents.

We are declaring an interim dividend of 15.51 cents per share, an increase of ten per cent.

Economic Commentary

In recent years the world economy has had to contend with a succession of shocks and the first half of 2003 was no different.

SARS reduced discretionary spending across Asia, where tourism, business travel and retail spending all suffered. It also dented business and consumer confidence and led to a cooling of investor sentiment towards Asia.

Hong Kong's economic recovery has been temporarily stalled by SARS. Despite high unemployment, recovery is starting to take hold in Hong Kong once again, led by the growth of exports and other areas of the economy linked to China. However, the environment remains challenging in the short term.

China's sustained growth is stimulating intra-regional trade in Asia which grew by 21 per cent in the first half of 2003. The emergence of Asia as an increasingly influential trading bloc bodes well for the economies of our key markets in the region.

Singapore's economy is having to move further up the value chain in the face of tougher regional competition. However, we expect GDP to grow at 1.5 per cent this year, rising to 4.5 per cent in 2004.

India's economy continues to enjoy strong growth, with GDP growth forecast to exceed five per cent once again this year.

The war in Iraq created uncertainty, not least in the Middle East but the negative economic effects of the conflict were short-lived. Higher oil prices and diversification will sustain economic growth in the Gulf. There are challenges ahead, but there are also many exciting opportunities for us in the region.

Most African economies gained from the weakness of the US dollar, stable commodity prices, continuing inflows of aid and stable macro-economic policies that have helped keep inflation low. Africa remains a region of strong potential for those, like us, who know it well.

Standard Chartered PLC
7-8-2003

Standard Chartered PLC

Business Progress

The Group is building a reputation for delivery. This has continued in the first six months.

We have balanced the pursuit of growth with firm control of risks.

We have continued to control costs. This will be the first year we see net savings from our global shared service centres in Kuala Lumpur and Chennai, as more services are centralised.

Consumer Banking has performed well, outside of Hong Kong. It is on track and we are building an advantaged business model. Wholesale Banking is showing strong growth.

As the world changes, there is a need for us to reconsider our branch footprint. Consequently, I am delighted that we are re-entering South Africa.

This month we announced that we had been granted a banking licence to open a branch in Johannesburg. At the same time we acquired 20twenty, an internet financial services firm, as a starting point for Consumer Banking in South Africa.

We have applied for a banking licence in Afghanistan and expect to be the first major international bank to open for commercial business there. We expect to open a representative office in Turkey in the fourth quarter.

Meanwhile, in India, we have embarked on a major branch expansion programme and opened in eight new cities during the first half of 2003.

Community Achievements

One of the things that has struck me about this organisation is the enormous amount of work and commitment for the community. I'm proud that our efforts to make a difference to the communities in which we operate have been recognised through two awards.

Our "Living with HIV" campaign received the Global Business Coalition Award 2003 for Business Excellence in the Workplace. We have also been awarded the Business in the Community International Award for our Community Partnership for Africa.

In February we launched a major fund-raising initiative called "Seeing is Believing". This is a joint venture with Sight Savers International. We aim to raise sufficient funds to restore the sight of 28,000 people around the world.

The Board

This is my first statement to you as Chairman, having taken over the role in May 2003 following the retirement of Sir Patrick Gillam. Under his guidance Standard Chartered grew total shareholder return seven fold over ten years and the Group is now well positioned for further growth.

Three directors have retired from the Board. Cob Stenham and Ronnie Chan stepped down in May while Barry Clare stepped down in July.

I would like to thank them for their valued contributions to the Board.

I am delighted to be working with such a strong and dynamic management team towards the continued growth of this impressive company.

Summary

As I have travelled around the Bank I have been impressed by our local talent and by the many opportunities we have. The Group's long term strategy to focus on the world's leading growth markets and the proven ability of the management team to consistently deliver against performance targets will ensure that we continue to lead the way in Asia, Africa and the Middle East.

Bryan Sanderson
Chairman
6 August 2003

STANDARD CHARTERED PLC – GROUP CHIEF EXECUTIVE'S REVIEW

We have had a strong first half. We achieved a 17 per cent increase in pre-tax profit and, despite the economic impact of the Iraq war and the SARS virus, we have stayed on track and continued to deliver good growth. We have consistently met our targets, we have a strong management team, motivated employees, and we see excellent opportunities for growth.

Progress on Management Agenda

At our Annual Results presentation in February we outlined the five key points of our Management Agenda for 2003. These were:

Drive returns in Wholesale Banking
Grow Consumer Banking revenue
Accelerate India growth
Leverage the China opportunity
Drive technology improvements

We have made substantial progress on this agenda in the first half of the year.

Wholesale Banking

The performance of Wholesale Banking has been strong. We set out, a year ago, to reposition this business to generate greater returns from a tightly controlled capital base. This strategy is delivering. We have reduced the risk in this business. We have focused on which customers we should serve and we have developed a broader and more balanced range of products.

While we have seen six per cent revenue growth overall, customer revenues are up seven per cent with local corporates being the main source of growth.

An example of an innovative new product is B2BeX, an internet platform for trade sourcing, payments and financing. We already have 250 corporations using B2BeX for trade facilitation.

Standard Chartered PLC
7-8-2003

Standard Chartered PLC

In a climate of low asset demand and low interest rates, growth in our cash and lending products remains slow. However, we are winning mandates and improving our position in areas such as structured finance and debt capital markets.

In an interest rate environment where it has been difficult to sustain earnings from asset and liability management, the diversification of our earnings mix has strengthened our Wholesale Banking business.

Consumer Banking

Consumer Banking is ahead of plan and on track to building an advantaged Consumer Banking business in our markets. We have de-risked the Hong Kong business and the revenue impact is as expected.

We have achieved double-digit revenue growth in many markets, including Thailand, Indonesia and the Philippines and across the Middle East and South Asia region.

We have grown Consumer Banking assets outside of Hong Kong by 15 per cent. We continued to win market share in mortgages in places like Hong Kong, Singapore and India.

We continue to invest in the consumer business. Initiatives in the first half included:

the branch expansion programme in India,
upgrading branches in the United Arab Emirates and Africa,
increasing the size of our direct sales teams, in countries such as Thailand and Taiwan.

We believe that customer service can continue to be a differentiator for us and we have commenced a major drive to improve service levels to customers in all our markets.

Hong Kong and Greater China

The market environment in Hong Kong remains tough, having been set back in recent months by SARS. In the first half of the year, the rate of revenue decline has flattened while profit before tax rose seven per cent over the second half of last year. However, we achieved 22 per cent growth in trade finance, and reduced bad debts from personal bankruptcies by 30 per cent.

However, Hong Kong is a maturing market and, consequently, we will continue to reshape our business to improve our scale and efficiency. We are well placed for renewed growth in credit card revenues on the back of the positive credit bureau and are relaunching our Manhattan Card this month.

Hong Kong continues to be our most important market. It is an integral part of the Pearl River Delta, China's most dynamic economic region.

In China we continue to make progress and it is a market that will remain high on our agenda in the coming years. We are a leader in Renminbi business among foreign banks and were among the first foreign financial institutions to be awarded custody licences in Shanghai.

India

India is an important market for Standard Chartered. Two years ago it accounted for around ten per cent of the Group, now it contributes over 15 per cent of Group profit. With strong management, good execution of growth plans and the transformation of our branch offices, we are building on the platform created by the Grindlays acquisition.

The Bank has strong market positions across a number of businesses including global markets and cash management.

Mortgages are a relatively new industry in India. However, we have identified this area as a major opportunity and have expanded this business substantially in the first half.

There remains strong growth potential for our Bank in India. We have 26 per cent market share among the foreign banks but only two per cent of the total market. We will be opening more new branches, expanding into additional cities and accelerating the growth of our mortgages and personal loan business.

MESA

The MESA region is now a significant part of our Group and has huge potential. In the last six months revenues were up 12 per cent and profit before tax up 17 per cent over the equivalent period last year. We are now the most profitable foreign bank in the United Arab Emirates. We retain our position as the number one foreign bank in Pakistan and Bangladesh and we are the leading issuer of Visa cards in South Asia and the UAE. Revenues have also been driven by Wholesale Banking, through growth in trade products and structured and fixed income products.

Following the Iraq War, cross-border trade flows with markets like Turkey, Afghanistan, Iraq and Iran appear to be growing and offer potential to us.

Our MESA business will continue to grow – it is a priority area for us. We have a strong track record and we are well positioned in the region.

Africa

Our business in sub-Saharan Africa has consistently produced good returns and we have strong market shares.

Our Wholesale Banking business already has a dominant position and, as a result of investment in branch refurbishment, training and new products, we have grown our Consumer Banking revenues by over 20 per cent.

We see opportunities to grow our business in the two biggest economies in the region, South Africa and Nigeria.

There are major challenges in Africa, such as the economic situation in Zimbabwe and the impact of AIDS across the region. However, we have seen strong performances in markets like Kenya, Botswana and Ghana. In a number of economies the improving political situation and a new international recognition of the role of Africa is leading to reward and investment.

Market Growth

We focus on attractive growing markets where we can leverage our customer relationships and our expertise. These markets present a range of opportunities for us. We must prioritise and balance growth in order to ensure that we deliver for today as well as investing for the future.

Standard Chartered PLC
7-8-2003

Standard Chartered PLC

Within more mature markets, like Singapore and Hong Kong we want to gain scale and improve efficiency.

Some of the faster growing economies including India, Thailand and the UAE present immediate growth opportunities. We intend to use our competitive edge to grow faster than GDP in these countries.

There are also markets where we currently have a small presence that we believe represent significant potential future growth opportunities; South Africa and South Korea are good examples. We have taken steps in both these markets.

In South Africa we have been granted a banking licence and acquired 20twenty, an internet financial services company, for less than $10 million. In South Korea we are planning to launch our Consumer Banking business in the third quarter and we have also taken a 3.7 per cent stake in KorAm Bank, one of the leading banks in South Korea, for a consideration of $56 million.

In other markets, like China, the growth of market opportunities is dependent on regulatory change. We will introduce our brand and services as the markets develop.

In realising these opportunities we will combine global capability with deep local knowledge.

Management Strength

Management strength is what sets the best companies apart. We have made considerable efforts to strengthen our team. We have moved 60 of our top 250 executives during the past year to broaden their international managerial capability and experience. Forty of these moves have been across geographies.

We are bringing in more retailers and marketers, as we recognise the importance of our brand and service levels.

We also have a rich diversity of people. Forty-eight per cent of our employees are women and 35 per cent of our managers are Asian. We still have progress to make. However, I am proud of our employees and am pleased that we are increasingly seen as an employer of choice – a place where people want to work.

Brand and Values

We are an international bank with a strong brand and a strong set of internal values. Recent research into how we are perceived by our customers and our stakeholders has shown that our brand awareness has increased significantly in markets like Thailand, India and Singapore.

We have also modernised our image and reshaped our brand and values.

Our brand promise is to be the right partner for our customers, communities and employees.

The Outlook

In a challenging environment we have delivered in the first half and we are making progress against key performance metrics.

In Consumer Banking, we have good revenue growth opportunities and we are investing further in key growth markets, like India and MESA. However the challenges remain in Hong Kong where short term pressures are considerable. In Wholesale Banking, we are confident that our momentum will continue.

Although economic confidence is improving in the short term, it does remain fragile worldwide. We remain confident that we will continue to deliver on our management agenda and financial targets and we intend to deliver again in the second half.

Mervyn Davies
Group Chief Executive
6 August 2003

STANDARD CHARTERED PLC – FINANCIAL REVIEW

GROUP SUMMARY

The results for the six months ended 30 June 2003, reflect a strong performance with profit before taxation 17 per cent higher than the equivalent period last year, at $741 million. Normalised earnings per share has grown by 16 per cent to 41.7 cents. This is a particularly good performance given the economic uncertainty, with war in Iraq and the outbreak of the SARS virus. SARS led to lower consumer spending and higher unemployment in Hong Kong and Singapore.

Despite this difficult environment, net revenue has grown three per cent from $2,285 million in the first half of 2002 to $2,347 million in this period. This is due to strong asset growth in our growing markets, particularly India, MESA and Africa, and increasing sales of investment products.

Net interest income fell by five per cent to $1,458 million. This was driven by bankruptcy containment actions in Hong Kong, margin pressure on mortgages in Singapore and lower yields on asset and liability management, particularly in Hong Kong and the Americas, UK and Group Head Office. Growth was seen in all other areas. The net interest margin fell from 3.1 per cent in the first half of 2002 to 2.8 per cent this period. The generally low interest rate environment and, in Hong Kong, a change in product mix was behind this fall.

Net fees and commissions increased by 13 per cent from $476 million to $536 million. Most regions contributed to this increase, but an excellent performance was seen in MESA, where fee income increased $16 million, or 30 per cent, over the first half of 2002. Singapore's results improved by 23 per cent, or $10 million and in Africa there was a $9 million increase.

The revenue from dealing profits increased 20 per cent from $229 million to $274 million. India, Singapore and Africa all made significant contributions with strong growth in customer driven revenue.

Other operating income more than doubled from $38 million to $79 million, largely from profit on sale of investment securities as part of a programme to de-risk the book.

Costs have grown by four per cent to $1,292 million but fell two per cent over the second half of 2002. Tight control over costs while continuing to invest in the business remains a priority. Centralising to global hubs, standardisation and re-engineering underpin the drive for cost efficiency. In the first half of 2003 investment has been focused on infrastructure, product innovation

Standard Chartered PLC
7-8-2003

Standard Chartered PLC

and improvement of service platforms and distribution. The cost income ratio (on a normalised basis) at 53.4 per cent is higher than the equivalent period last year but is lower than the full year 2002 ratio of 53.6 per cent.

Effective risk management led to a reduction in the debt charge of $99 million or 24 per cent from $407 million to $308 million. Provision for bankruptcies in Hong Kong fell from $149 million to $104 million. The corporate portfolio performed well.

CONSUMER BANKING

Consumer Banking continues to be a key business for Standard Chartered. Operating profit has increased ten per cent from $326 million in the first half of 2002 to $357 million in the six months to June 2003, despite the impact of SARS. Consumer Banking revenues have been flat, with nine per cent revenue growth outside Hong Kong offset by a 13 per cent decline in Hong Kong.

The following table provides an analysis of operating profit by geographic segment for Consumer Banking:

	Asia Pacific				Middle East & Other S Asia $m	Americas UK & Group Head Office $m	Consumer Banking Total $m
	Hong Kong $m	Singapore $m	Malaysia $m	Other Asia Pacific $m
Net revenue	465	162	78	157	107	116	86
Costs	(192)	(53)	(40)	(86)	(58)	(57)	(73)
Charge for debts	(164)	(19)	(9)	(32)	(23)	(8)	(2)
Operating profit	109	90	29	39	26	51	11
	6 months ended 30.06.02
	Hong Kong $m	Singapore $m	Malaysia $m	Other Asia Pacific $m	India $m	Middle East & Other S Asia $m	Americas UK & Group Head Office $m
Net revenue	533	149	75	135	101	102	70
Costs	(200)	(49)	(38)	(80)	(62)	(49)	(60)
Charge for debts	(238)	(16)	(10)	(30)	(18)	(7)	(1)
Operating profit	95	84	27	25	21	46	9
	6 months ended 31.12.02
	Hong Kong $m	Singapore $m	Malaysia $m	Other Asia Pacific $m	India $m	Middle East & Other S Asia $m	Americas UK & Group Head Office $m
Net revenue	480	164	81	150	103	111	67
Costs	(222)	(57)	(41)	(97)	(52)	(55)	(64)
Charge for debts	(196)	(19)	(12)	(28)	(20)	(9)	(2)
Operating profit	62	88	28	25	31	47	1

In Hong Kong, revenue dropped from $533 million to $465 million as a direct result of bankruptcy containment actions. Revenue attrition has been partially offset by growth in mortgages and Wealth Management. This coupled with an $8 million reduction in costs and a $74 million reduction in debts generated a $109 million operating profit, reflecting the success of the action taken to contain bankruptcy losses.

In Singapore, revenue rose by $13 million to $162 million despite acute margin pressure. Mortgage revenue grew as a result of increased lending to smaller corporates in Business Financial Services and as a result of the low interest rate environment.

In Malaysia, operating profit grew by seven per cent to $29 million. Revenue increased by four per cent. There was strong growth in mortgages and good performance in Business Financial Services.

The Other Asia Pacific region had good results, with a 56 per cent increase in operating profit from $25 million to $39 million. This was largely due to Indonesia, Taiwan and Thailand, where there has been excellent growth in mortgages and Wealth Management. This growth was despite interest rate caps on credit card lending.

In India revenue increased by $6 million from $101 million to $107 million. This understates the underlying momentum of the business. The distribution network has been expanded with branches in eight new cities.

Although private sector competition is driving down margins, MortgageOne has been successfully launched and has great potential as mortgages are a relatively new business in India. Costs have been reduced by six per cent to $58 million.

In MESA revenue grew by 14 per cent to $116 million. Unsecured loans and Wealth Management are key business drivers in the region. Internet banking has been launched and there has been good growth in the card market, especially in UAE, Pakistan, Bangladesh and Jordan.

Revenue in Africa increased by $16 million, or 23 per cent, to $86 million with strong growth in lending volumes.

The Americas, UK and Group Head Office has seen a reduction in operating profit from $19 million to $2 million. This is due to the restructuring of the Offshore Banking Business based in Jersey. Revenue has decreased by $10 million as the business is reconfigured and refocused. Costs have increased by $7 million to prepare for a new integrated sales and technology platform.

Standard Chartered PLC

7-8-2003

Standard Chartered PLC

An analysis of Consumer Banking revenue by product is set out below:

Revenue by product	6 months ended 30.06.03 $m	6 months ended 30.06.02 $m	6 months ended 31.12.02 $m
Cards and Personal Loans	508	557	525
Wealth Management / Deposits	403	412	403
Mortgages and Auto Finance	283	232	260
Other	17	14	13
	1,211	1,215	1,201

Credit Cards and Personal Loans has grown steadily and performed well outside Hong Kong. However in Hong Kong the bankruptcy situation and SARS has affected performance. Elsewhere regulatory intervention and interest caps limited margin growth in some markets.

Wealth Management revenue has fallen by $9 million to $403 million, due to margin pressure. The impact of this however has been partially offset by strong sales of investment service products.

The volume of Mortgages and Auto Finance has grown, and with it revenue has increased 22 per cent from $232 million to $283 million. This business benefited from stable margins and product innovation.

Costs have increased from $568 million to $596 million, reflecting continued investment in infrastructure, product innovation, service platform and distribution. The cost income ratio at 30 June 2003 is 49.2 per cent compared with 46.7 per cent in June 2002 and 51.8 per cent in December 2002.

The charge for bad debts is $258 million compared to $321 million for the period ended June 2002 and $282 million for the period ended 31 December 2002. The Hong Kong bankruptcy situation is gradually improving.

WHOLESALE BANKING

Wholesale Banking has performed well in the first six months of 2003. The repositioning of the business towards higher returns that was undertaken through 2002 has led to improved profitability. Revenue has increased by six per cent to $1,136 million and costs have increased three per cent from $608 million to $629 million resulting in a positive cost-income "jaws" of three per cent. Risk management has been effective with the debt charge reduced from $86 million in the six months to 30 June 2002 to $50 million in this period.

Standard Chartered PLC
7-8-2003

Standard Chartered PLC

The following table provides an analysis of operating profit by geographic segment for Wholesale Banking:

	6 months ended 30.06.03
	Hong Kong $m	Singapore $m	Malaysia $m	Other Asia Pacific $m	India $m	Middle East & Other S Asia $m	AFrica $m	Americas UK & Group Head Office $m	Wholesale Banking Total $m
Net revenue	186	89	42	163	143	155	126	232	1,136
Costs	(108)	(51)	(31)	(129)	(40)	(49)	(60)	(161)	(629)
Charge for debts	(17)	-	5	(31)	1	18	(8)	(18)	(50)
Amounts written off fixed asset investments	-	-	-	-	(1)	-	-	(5)	(6)
Operating profit	61	38	16	3	103	124	58	48	451
	6 months ended 30.06.02
---	---	---	---	---	---	---	---	---	---
	Hong Kong $m	Singapore $m	Malaysia $m	Other Asia Pacific $m	India $m	Middle East & Other S Asia $m	AFrica $m	Americas UK & Group Head Office $m	Wholesale Banking Total $m
Net revenue	201	86	40	148	97	140	106	252	1,070
Costs	(96)	(48)	(35)	(115)	(41)	(43)	(51)	(179)	(608)
Charge for debts	7	(1)	-	(4)	(1)	7	4	(98)	(86)
Operating profit/(loss)	112	37	5	29	55	104	59	(25)	376
	6 months ended 31.12.02
---	---	---	---	---	---	---	---	---	---
	Hong Kong $m	Singapore $m	Malaysia $m	Other Asia Pacific $m	India $m	Middle East & Other S Asia $m	AFrica $m	Americas UK & Group Head Office $m	Wholesale Banking Total $m
Net revenue	202	86	38	139	93	148	89	258	1,053
Costs	(104)	(55)	(29)	(114)	(35)	(49)	(53)	(164)	(603)
Charge for debts	(1)	(5)	9	1	1	(4)	(4)	(20)	(23)
Amounts written off fixed asset investments	-	-	-	-	-	-	-	(8)	(8)
Operating profit	97	26	18	26	59	95	32	66	419

In Hong Kong net revenue fell by $15 million. A decline in asset and liability management was partially offset by growth in trade, customer driven foreign exchange on the back of steady growth in exports, and cash management. The debt charge increased by $24 million. This was due to the first half of 2002 benefiting from strong recoveries.

Singapore increased revenue by $3 million to $89 million, due to asset growth. However this was offset by a $3 million increase in costs.

In Malaysia, revenues grew by five per cent. This, together with tight cost and credit control has led to an increase in operating profit from $5 million to $16 million.

In the Other Asia Pacific region, revenue grew by ten per cent or $15 million to $163 million reflecting the benefit of the restructuring that took place in 2002, together with an improved performance in Global Markets.

India operating profit increased by 87 per cent to $103 million. This is largely due to repositioning and de-risking the investment portfolio, together with strong growth in commercial banking.

The operating profit for MESA has increased from $104 million to $124 million due to improved margins in commercial banking and asset and liability management, increased customer sales activity in Global Markets, the repositioning of the risk profile, and enhanced Global Market product offering.

In Africa revenue increased by $20 million to $126 million. This was offset by a $9 million increase in costs and a $12 million increase in the debt charge (30 June 2002 was a net $4 million recovery).

In the Americas, UK and Group Head Office the restructuring of Latin America that took place in 2002 is reflected in the $73 million increase in operating profit. Although revenue fell by $20 million, this was more than offset by an $18 million reduction in costs and an $80 million reduction in the debt charge.

Standard Chartered PLC
7-8-2003

Standard Chartered PLC

An analysis of Wholesale Banking revenue by product is set out below:

Revenue by product	6 months ended 30.06.03 $m	6 months ended 30.06.02 $m	6 months ended 31.12.02 $m
Trade and Lending	395	393	382
Global Markets	556	488	485
Cash Management	158	158	157
Custody	27	31	29
	1,136	1,070	1,053

Trade and Lending revenue grew one per cent to $395 million. Trade finance grew well underpinned by the integrated trade platform B2BeX, which was launched in October 2002, while lending fell. Growth in India, MESA and Africa was offset by Other Asia Pacific where there was subdued demand, strong liquidity and falling loan prices.

Revenue in Global Markets increased by $68 million, or 14 per cent to $556 million. This performance reflects growth in derivatives, fixed income, and structured products. Customer revenues have increased faster than trading revenues. Revenues from asset and liability management fell due to low interest rates and the flat dollar yield curve. This however was partially offset by gains on investment securities.

Cash Management revenue was flat in a low interest rate environment but volumes increased by ten per cent. Revenue growth was reported in MESA, Africa, UK and Americas, and was particularly driven by multi-national corporations.

Custody revenue fell $4 million to $27 million despite higher business volumes. This was mainly due to the subdued Asian stockmarkets.

Costs have risen by three per cent for the half year due mainly to increased investment in technology and infrastructure. There was continued investment in B2BeX and a $6 million write down of investments.

The debt charge has fallen $36 million or 42 per cent. This reflects the continued effectiveness of risk management strategies undertaken since 2001 to de-risk the Wholesale Bank portfolio, together with strong recoveries.

RISK

Risk is inherent in the Group's business and the effective management of that risk is seen as a core competence within Standard Chartered. Through its risk management structure the Group seeks to manage efficiently the eight core risks: Credit, Market, Country and Liquidity risk, which arise directly through the Group's commercial activities, whilst Business, Regulatory, Operational and Reputational risk are a normal consequence of any business undertaking. The key element of risk management philosophy is for the risk functions to operate as an independent control function working in partnership with the business units to provide a competitive advantage to the Group.

Credit Risk

Credit risk is the risk that a counterparty will not settle its obligations in accordance with agreed terms.

Credit exposures include individual borrowers, connected groups of counterparties, and portfolios, on the banking and trading books.

Standard Chartered PLC
7-8-2003

Standard Chartered PLC

Loan Portfolio

The following table sets out by maturity the amount of customer loans net of provisions:

	30.06.03				30.06.02
	One year or less $m	One to five years $m	Over five years $m	Total $m	One year or less $m	One to five years $m	Over five years $m	Total $m
Consumer Banking
Mortgages	2,144	4,372	14,055	20,571	2,914	3,989	13,156	20,059
Other	4,832	3,175	1,512	9,519	4,727	2,780	1,140	8,647
Total	6,976	7,547	15,567	30,090	7,641	6,769	14,296	28,706
Wholesale Banking	21,565	4,234	2,582	28,381	20,821	3,497	2,327	26,645
General Provisions				(458)				(468)
Net loans and advances to customers	28,541	11,781	18,149	58,013	28,462	10,266	16,623	54,883
					31.12.02
					One year or less $m	One to five years $m	Over five years $m	Total $m
Consumer Banking
Mortgages					1,977	4,399	14,012	20,388
Other					4,798	3,197	1,218	9,213
Total					6,775	7,596	15,230	29,601
Wholesale Banking					22,035	4,077	1,764	27,876
General Provisions								(468)
Net loans and advances to customers					28,810	11,673	16,994	57,009

The Group's loans and advances to customers are predominantly short term with approximately half the portfolio having a maturity of one year or less. The longer term portfolio, with a maturity of over five years, mainly relates to Consumer Banking personal residential mortgages.

Standard Chartered PLC

7-8-2003

Standard Chartered PLC

The following table sets out an analysis of the Group's net loans and advances as at 30 June 2003, 30 June 2002 and 31 December 2002 by the principal category of borrowers, business or industry and/or geographical distribution:

	Asia Pacific					Middle East & Other S Asia $m	Americas UK & Group Head Office $m	Total $m
	Hong Kong $m	Singapore $m	Malaysia $m	Other Asia Pacific $m	India $m
Loans to Individuals
Mortgages	12,833	3,925	2,153	818	418	62	24	338
Other	2,285	1,726	598	1,781	980	1,707	282	160
Consumer Banking	15,118	5,651	2,751	2,599	1,398	1,769	306	498
Agriculture, Forestry and Fishing	4	6	74	36	20	25	81	267
Construction	60	33	28	32	6	103	30	4
Commerce	1,513	879	167	599	58	960	312	949
Electricity, Gas and Water	118	66	10	157	102	126	29	114
Financing, Insurance and Business services	1,578	773	365	643	112	645	167	1,268
Loans to Governments	-	162	414	8	-	13	-	352
Mining and Quarrying	-	8	37	26	5	91	43	569
Manufacturing	1,231	595	251	2,111	1,102	1,098	227	1,731
Commercial real estate	896	712	15	151	-	-	3	5
Transport, Storage and Communication	406	149	146	159	188	245	115	1,647
Other	17	35	59	181	-	204	37	418
Wholesale Banking	5,823	3,418	1,566	4,103	1,593	3,510	1,044	7,324
General provisions								(458)
Total loans and advances to customers	20,941	9,069	4,317	6,702	2,991	5,279	1,350	7,364
Total loans and advances to banks	4,145	2,015	414	2,796	224	1,692	228	6,452

Under "Loans to individuals - other", $1,360 million (30 June 2002: $1,804 million; 31 December 2002: $1,487 million) relates to the cards portfolio in Hong Kong. The total cards portfolio is $3,249 million (30 June 2002: $3,578 million; 31 December 2002: $3,378 million).

Approximately 52 per cent (30 June 2002: 52 per cent; 31 December 2002: 52 per cent) of total Loans and Advances to Customers relates to the Consumer Banking portfolio, predominantly personal residential mortgages.

Standard Chartered PLC

7-8-2003

Standard Chartered PLC

The Wholesale Banking portfolio is well diversified across both geography and industry. The Group does not have any significant concentrations in special interest industries such as Aviation, Telecoms and Tourism. Exposure to each industry is less than five per cent of Wholesale Banking Loans and Advances to Customers.

30.06.02

	Asia Pacific				Other Asia Pacific $m	Middle East & Other S Asia $m	African $m	Americas UK & Group Head Office $m	Total $m
	Hong Kong $m	Singapore $m	Malaysia $m
Loans to Individuals
Mortgages	12,764	3,447	1,970	1,104	192	26	36	520	20,059
Other	2,952	1,324	541	1,159	812	1,467	188	204	8,647
Consumer Banking	15,716	4,771	2,511	2,263	1,004	1,493	224	724	28,706
Agriculture, Forestry and Fishing	2	2	68	42	13	16	91	182	416
Construction	53	47	28	108	6	138	17	7	404
Commerce	1,048	536	236	664	61	799	253	864	4,461
Electricity, Gas and Water	330	44	24	285	31	99	22	124	959
Financing, Insurance and Business services	1,643	641	208	621	101	318	49	1,822	5,403
Loans to Governments	-	40	338	67	2	13	-	446	906
Mining and Quarrying	-	1	27	20	9	126	33	744	960
Manufacturing	1,129	500	203	1,999	792	940	302	2,510	8,375
Commercial real estate	877	979	20	121	-	81	6	7	2,091
Transport, Storage and Communication	304	196	68	202	45	157	89	1,162	2,223
Other	53	18	29	164	-	54	16	113	447
Wholesale Banking	5,439	3,004	1,249	4,293	1,060	2,741	878	7,981	26,645
General provisions								(468)	(468)
Total loans and advances to customers	21,155	7,775	3,760	6,556	2,064	4,234	1,102	8,237	54,883
Total loans and advances to banks	4,053	2,644	725	2,771	335	1,731	279	7,565	20,103
	31.12.02
	Asia Pacific				Other Asia Pacific $m	Middle East & Other S Asia $m	African $m	Americas UK & Group Head Office $m	Total $m
	Hong Kong $m	Singapore $m	Malaysia $m
Loans to Individuals
Mortgages	13,045	3,813	2,031	779	283	20	35	382	20,388
Other	2,573	1,524	575	1,684	882	1,537	231	207	9,213
Consumer Banking	15,618	5,337	2,606	2,463	1,165	1,557	266	589	29,601
Agriculture, Forestry and Fishing	5	7	59	35	15	14	62	365	562
Construction	58	38	37	18	4	157	25	7	344
Commerce	1,251	777	147	572	19	784	283	1,151	4,984
Electricity, Gas and Water	269	40	12	178	23	50	35	109	716
Financing, Insurance and Business services	1,645	586	404	489	209	638	47	1,921	5,939
Loans to Governments	-	41	552	66	-	13	-	273	945
Mining and Quarrying	-	19	51	26	23	134	20	536	809
Manufacturing	1,019	399	201	2,020	887	1,242	299	2,256	8,323
Commercial real estate	1,012	665	18	112	-	-	6	6	1,819
Transport, Storage and Communication	405	112	77	217	113	178	107	1,577	2,786
Other	31	39	37	194	-	116	18	214	649
Wholesale Banking	5,695	2,723	1,595	3,927	1,293	3,326	902	8,415	27,876
General provisions								(468)	(468)
Total loans and advances to customers	21,313	8,060	4,201	6,390	2,458	4,883	1,168	8,536	57,009
Total loans and advances to banks	2,507	2,027	394	2,703	212	1,792	218	6,148	16,001

Standard Chartered PLC

7-8-2003

Standard Chartered PLC

Problem Credits

The Group employs a variety of tools to monitor the portfolio and to ensure the timely recognition of problem credits.

In Wholesale Banking, accounts are placed on Early Alert when they display signs of weakness. Such accounts are subject to a dedicated process involving senior risk officers and representatives from a specialist recovery unit, which is independent of the business units. Account plans are re-evaluated and remedial actions are agreed and monitored until complete. Remedial actions include, but are not limited to, exposure reduction, security enhancement, exit of the account or immediate movement of the account into the control of the specialist recovery unit.

In Consumer Banking, an account is considered to be in default when payment is not received on the due date. Accounts that are overdue by more than 30 days (60 days for mortgages) are considered delinquent. These are closely monitored and subject to a special collections process.

In general, loans are treated as non-performing when interest or principal is 90 days or more past due.

Consumer Banking

Provisions are derived on a formulaic basis depending on the product:

Mortgages: a provision is raised where accounts are 150 days past due based on the difference between the outstanding value of the loan and the forced sale value of the underlying asset.

Credit cards: a charge off is made for all balances which are 150 days past due or earlier as circumstances dictate. In Hong Kong charge off is currently at 120 days.

Other unsecured Consumer Banking products: a charge off is made at 150 days past due.

Other secured Consumer Banking products: a provision is raised at 90 days past due for the difference between the outstanding value and the forced sale value of the underlying asset. The underlying asset is then re-valued periodically until disposal.

It is current practice to provision and write-off exposure in respect of Hong Kong bankruptcies at the time the customer petitions for bankruptcy.

The Small and Medium Enterprises (SME) portfolio is provisioned on a case by case basis.

Standard Chartered PLC
7-8-2003
13

Standard Chartered PLC

The following table sets out the non-performing portfolio in Consumer Banking:

	30.06.03				30.06.02*
	Hong Kong $m	Singapore $m	Malaysia $m	Other Asia Pacific $m	India $m	Middle East & Other S Asia $m	African American $m	Americas UK & Group Head Office $m	Total $m
Loans and advances – Gross non-performing	144	109	192	72	46	40	15	26	644
Specific provisions for bad and doubtful debts	(55)	(16)	(25)	(17)	(6)	(18)	(5)	(5)	(147)
Interest in suspense	(1)	(3)	(23)	(10)	(8)	(10)	(7)	(2)	(64)
Net non-performing loans and advances	88	90	144	45	32	12	3	19	433
Cover ratio									33%
	30.06.02*				30.06.02*
	Hong Kong $m	Singapore $m	Malaysia $m	Other Asia Pacific $m	India $m	Middle East & Other S Asia $m	African American $m	Americas UK & Group Head Office $m	Total $m
Loans and advances – Gross non-performing	200	115	172	78	40	85	17	11	718
Specific provisions for bad and doubtful debts	(121)	(18)	(21)	(27)	(9)	(54)	(6)	(3)	(259)
Interest in suspense	-	(3)	(21)	(9)	(5)	(20)	(8)	(1)	(67)
Net non-performing loans and advances	79	94	130	42	26	11	3	7	392
Cover ratio									45%
	31.12.02*				31.12.02*
	Hong Kong $m	Singapore $m	Malaysia $m	Other Asia Pacific $m	India $m	Middle East & Other S Asia $m	African American $m	Americas UK & Group Head Office $m	Total $m
Loans and advances – Gross non-performing	118	111	176	68	41	27	15	18	574
Specific provisions for bad and doubtful debts	(45)	(18)	(24)	(16)	(8)	(7)	(8)	(1)	(127)
Interest in suspense	(1)	(3)	(22)	(10)	(7)	(7)	(7)	(1)	(58)
Net non-performing loans and advances	72	90	130	42	26	13	-	16	389
Cover ratio									32%

In 2002, gross non-performing loans for Other Asia Pacific have been restated. $58 million of gross non-performing loans in Standard Chartered Nakornthon Bank (SCNB) subject to a Loan Management Agreement (LMA) are now reported in Wholesale Banking.

The relatively low Consumer Banking cover ratio reflects the fact that Standard Chartered classifies all exposure which is more than 90 days past due as non-performing, whilst provisions on unsecured lending are only raised at the time of charge-off. For secured products, provisions reflect the difference between the underlying assets, and the outstanding loan (see details relating to the raising of provisions above).

Wholesale Banking

Loans are designated as non-performing as soon as payment of interest or principal is 90 days or more overdue or where sufficient weakness is recognised that full payment of either interest or principal becomes questionable. Where customer accounts are recognised as non-performing or display weakness that may result in non-performing status being assigned, they are passed to the management of a specialist unit which is independent of the main businesses of the Group.

For loans and advances designated non-performing, interest continues to accrue on the customer's account but is not included in income.

Where the principal, or a portion thereof, is considered uncollectable and of such little realisable value that it can no longer be included at its full nominal amount on the balance sheet, a specific provision is raised. In any decision relating to the raising of provisions, the Group attempts to balance economic conditions, local knowledge and experience and the results of independent asset reviews.

Standard Chartered PLC

7-8-2003

Standard Chartered PLC

Where it is considered that there is no realistic prospect of recovering the principal of an account against which a specific provision has been raised, then that amount will be written off.

The following table sets out the non-performing portfolio in Wholesale Banking:

	30.06.03
	Asia Pacific				Other Asia Pacific $m	Middle East & Other S Asia $m	Americas UK & Group Head Office $m	Total $m
	Hong Kong $m	Singapore $m	Malaysia $m	Other
Loans and advances – Gross non-performing	379	274	261	1,195	79	251	125	818	3,382
Specific provisions for bad and doubtful debts	(202)	(127)	(152)	(426)	(50)	(145)	(55)	(420)	(1,577)
Interest in suspense	(95)	(69)	(73)	(89)	(29)	(78)	(43)	(105)	(581)
Net non-performing loans and advances	82	78	36	680	-	28	27	293	1,224
	30.06.02*
	Asia Pacific				Other Asia Pacific $m	Middle East & Other S Asia $m	Americas UK & Group Head Office $m	Total $m
	Hong Kong $m	Singapore $m	Malaysia $m	Other
Loans and advances – Gross non-performing	456	274	408	1,284	89	396	108	991	4,006
Specific provisions for bad and doubtful debts	(235)	(137)	(221)	(384)	(58)	(270)	(49)	(498)	(1,852)
Interest in suspense	(117)	(67)	(78)	(103)	(28)	(94)	(43)	(112)	(642)
Net non-performing loans and advances	104	70	109	797	3	32	16	381	1,512
	31.12.02*
	Asia Pacific				Other Asia Pacific $m	Middle East & Other S Asia $m	Americas UK & Group Head Office $m	Total $m
	Hong Kong $m	Singapore $m	Malaysia $m	Other
Loans and advances – Gross non-performing	400	273	353	1,166	84	384	103	920	3,683
Specific provisions for bad and doubtful debts	(210)	(141)	(211)	(342)	(52)	(245)	(45)	(451)	(1,697)
Interest in suspense	(111)	(73)	(84)	(102)	(31)	(97)	(44)	(121)	(663)
Net non-performing loans and advances	79	59	58	722	1	42	14	348	1,323

Prior periods have been restated. Corporate loans and advances to customers against which provisions have been outstanding for two years or more are no longer written down. $58 million of gross non-performing loans in Standard Chartered Nakornthon Bank (SCNB) subject to a Loan Management Agreement (LMA) previously reported in Consumer Banking have been moved to Wholesale Banking.

Standard Chartered PLC

7-8-2003

Standard Chartered PLC

Wholesale Banking Cover Ratio

The following table shows the cover ratio. The non-performing loans recorded below under Standard Chartered Nakornthon Bank (SCNB) are excluded from the cover ratio calculation as they are the subject of a Loan Management Agreement (LMA) with a Thai Government Agency.

	30.06.03
	Total $m	SCNB (LMA) $m	Total excl LMA $m
Loans and advances – Gross non-performing	3,382	757	2,625
Specific provisions for bad and doubtful debts	(1,577)	(94)	(1,483)
Interest in suspense	(581)	-	(581)
Net non-performing loans and advances	1,224	663	561
Cover ratio			79%
	30.06.02
	Total $m	SCNB (LMA) $m	Total excl LMA $m
Loans and advances – Gross non-performing	4,006	849	3,157
Specific provisions for bad and doubtful debts	(1,852)	(92)	(1,760)
Interest in suspense	(642)	-	(642)
Net non-performing loans and advances	1,512	757	755
Cover ratio			76%
	31.12.02
	Total $m	SCNB (LMA) $m	Total excl LMA $m
Loans and advances – Gross non-performing	3,683	781	2,902
Specific provisions for bad and doubtful debts	(1,697)	(91)	(1,606)
Interest in suspense	(663)	-	(663)
Net non-performing loans and advances	1,323	690	633
Cover ratio			78%

The Wholesale Banking non-performing portfolio is well covered. The balance uncovered by specific provision represents the value of collateral held and/or the Group's estimate of the net value of any work-out strategy.

Standard Chartered PLC

7-8-2003

Standard Chartered PLC

Group

The following table sets out the movements in the Group's total specific provisions against loans and advances.

	6 months ended 30.06.03
	Hong Kong $m	Singapore $m	Malaysia $m	Other Asia Pacific $m	India $m	Middle East & Other S Asia $m	AFrica $m	Americas UK & Group Head Office $m	Total $m
Provisions held at 1 January 2003	255	159	235	358	60	252	53	452	1,824
Exchange translation differences	-	(1)	-	2	2	2	(1)	1	5
Amounts written off	(188)	(37)	(66)	(47)	(37)	(84)	(3)	(69)	(531)
Recoveries of amounts previously written off	9	3	5	8	8	1	1	2	37
Other	-	-	(1)	59	1	2	-	10	71
New provisions	207	30	17	85	62	18	17	38	474
Recoveries/provisions no longer required	(26)	(11)	(13)	(22)	(40)	(28)	(7)	(9)	(156)
Net charge against/ (credit to) profit	181	19	4	63	22	(10)	10	29	318
Provisions held at 30 June 2003	257	143	177	443	56	163	60	425	1,724
	6 months ended 30.06.02*
---	---	---	---	---	---	---	---	---	---
	Hong Kong $m	Singapore $m	Malaysia $m	Other Asia Pacific $m	India $m	Middle East & Other S Asia $m	AFrica $m	Americas UK & Group Head Office $m	Total $m
Provisions held at 1 January 2002	335	151	240	428	85	333	63	424	2,059
Exchange translation differences	2	5	-	9	(1)	(1)	(3)	-	11
Amounts written off	(217)	(20)	(14)	(66)	(41)	(9)	(2)	(22)	(391)
Recoveries of amounts previously written off	5	2	6	6	6	1	-	-	26
New provisions	269	25	21	62	45	17	3	108	550
Recoveries/provisions no longer required	(38)	(8)	(11)	(28)	(27)	(17)	(6)	(9)	(144)
Net charge against/ (credit to) profit	231	17	10	34	18	-	(3)	99	406
Provisions held at 30 June 2002	356	155	242	411	67	324	55	501	2,111
	6 months ended 31.12.02*
---	---	---	---	---	---	---	---	---	---
	Hong Kong $m	Singapore $m	Malaysia $m	Other Asia Pacific $m	India $m	Middle East & Other S Asia $m	AFrica $m	Americas UK & Group Head Office $m	Total $m
Provisions held at 1 July 2002	356	155	242	411	67	324	55	501	2,111
Exchange translation differences	-	1	-	(3)	1	-	(1)	6	4
Amounts written off	(307)	(24)	(14)	(78)	(34)	(82)	(7)	(69)	(615)
Recoveries of amounts previously written off	9	3	4	7	7	-	-	9	39
Other	-	-	-	(6)	-	3	-	(11)	(14)
New provisions	233	34	24	53	59	23	6	30	462
Recoveries/provisions no longer required	(36)	(10)	(21)	(26)	(40)	(16)	-	(14)	(163)
Net charge against profit	197	24	3	27	19	7	6	16	299
Provisions held at 31 December 2002	255	159	235	358	60	252	53	452	1,824

Corporate loans and advances to customers against which provisions have been outstanding for two years or more are no longer written down. Prior periods have been restated.

Standard Chartered PLC

7-8-2003

Standard Chartered PLC

Country Risk

Country Risk is the risk that a counterparty is unable to meet its contractual obligations as a result of adverse economic conditions or actions taken by governments in the relevant country.

The following table based on the Bank of England Cross Border Reporting (C1) guidelines, shows the Group's cross border assets including acceptances, where they exceed one per cent of the Group's total assets.

Cross border assets exclude facilities provided within the Group. They comprise loans and advances, interest bearing deposits with other banks, trade and other bills, acceptances, amounts receivable under finance leases, certificates of deposit and other negotiable paper and investment securities where the counterparty is resident in a country other than that where the cross border asset is recorded. Cross border assets also include exposures to local residents denominated in currencies other than the local currency.

	30.06.03				30.06.02
	Public sector $m	Banks $m	Other $m	Total $m	Public sector $m	Banks $m	Other $m	Total $m
USA	1,071	1,503	2,680	5,254	1,078	1,154	2,078	4,310
Germany	-	2,965	295	3,260	-	3,554	118	3,672
Hong Kong	22	111	2,146	2,279	8	100	1,671	1,779
Korea	20	1,596	606	2,222	164	1,355	128	1,647
France	4	1,537	313	1,854	4	1,316	336	1,656
Italy	502	788	386	1,676	438	1,322	323	2,083
Singapore	-	169	1,334	1,503	10	395	1,420	1,825
India**	103	869	592	1,564
Austria*					-	1,216	-	1,216
Australia*					387	656	94	1,137

Less than one per cent of total assets at 30 June 2003.
** Less than one per cent of total assets at 30 June 2002.

	31.12.02
	Public sector $m	Banks $m	Other $m	Total $m
USA	1,084	1,729	2,462	5,275
Germany	-	2,363	234	2,597
Hong Kong	16	181	1,842	2,039
Korea	12	1,334	407	1,753
France	4	1,202	323	1,529
Italy	488	613	374	1,475
Singapore	1	190	1,361	1,552
Australia	359	988	59	1,406

Argentina

Standard Chartered has net non-performing exposure (net of cash collateral and export credit agency guarantees) of $164 million (30 June 2002: $262 million; 31 December 2002: $211 million) against which provisions of $127 million (30 June 2002: $132 million; 31 December 2002: $136 million) are held. This provides a cover ratio of 77 per cent (30 June 2002: 50 per cent; 31 December 2002: 64 per cent). The following table shows the breakdown of this exposure:

	30.06.03 $m	30.06.02 $m	31.12.02 $m
Banks
Foreign owned banks	66	102	79
Government owned banks	16	24	21
Local banks	37	62	41
Corporates	38	74	63
Government bonds	7	-	7
Total exposure after cash collateral and export credit agency cover	164	262	211
Provisions held	(127)	(132)	(136)
Net at risk	37	130	75
Cover ratio	77%	50%	64%

Other Latin American exposure

In addition to Argentina, the Group has exposure to a number of other Latin American countries. The following table shows cross border assets based on the Bank of England Cross Border Reporting (C1) guidelines (net of specific provisions where appropriate).

	30.06.03			30.06.02			31.12.02
	Banks $m	Non banks $m	Total $m	Banks $m	Non banks $m	Total $m	Banks $m	Non banks $m	Total $m
Brazil	220	92	312	479	156	635	195	78	273
Chile	129	41	170	154	75	229	120	43	163
Colombia	47	41	88	202	92	294	155	45	200
Peru	18	200	218	32	254	286	18	218	236
Venezuela	-	34	34	8	96	104	6	46	52
Others	20	-	20	12	6	18	8	8	16

Local currency exposure to local residents in these countries totals $103 million (30 June 2002: $179 million; 31 December 2002: $165 million).

Standard Chartered PLC

7-8-2003

Standard Chartered PLC
7-8-2003
19

Market Risk

The Group recognises market risk as the exposure created by potential changes in market prices and rates. Market risk arises on financial instruments, which are either valued at current market prices (mark to market) or at cost plus any accrued interest (non-trading basis). The Group is exposed to market risk arising principally from customer driven transactions.

Market risk is supervised by the Group Risk Committee, which agrees policies and levels of risk appetite in terms of Value at Risk (VaR). A Group Market Risk Committee sits as a specialist body to provide business level management, guidance and policy setting. Policies cover the trading book of the Group and also market risks within the non-trading books. Limits by location and portfolio are proposed by the business within the terms of agreed policy. Group Market Risk agrees the limits and monitors exposures against these limits.

Group Market Risk augments the VaR measurement by regularly stress testing aggregate market risk exposures to highlight potential risk that may arise from extreme market events that are rare but plausible. In addition, VaR models are back tested against actual results to ensure pre-determined levels of accuracy are maintained.

Additional limits are placed on specific instrument and currency concentrations where appropriate. Factor sensitivity measures are used in addition to VaR as additional risk management tools. Option risks are controlled through revaluation limits on currency and volatility shifts, limits on volatility risk by currency pair and other underlying variables that determine the option's value.

Value at Risk

The Group measures the potential impact of changes in market prices and rates using VaR models.

In 2002 the Group used a combination of variance-covariance methodology and historical simulation to measure VaR on all market risk related activities. From January 2003, the Group has started to phase out variance-covariance methodology in preference of historical simulation. The change in methodology has been reflected in the comparative numbers.

The total VaR for trading and non-trading books combined as at 30 June 2003 was $14.9 million (30 June 2002: $14.6 million; 31 December 2002: $12.4 million). Of this total, $14.6 million (30 June 2002: $12.6 million; 31 December 2002: $11.3 million) related to interest rate risk and $1.3 million (30 June 2002: $2.0 million; 31 December 2002: $1.1 million) to exchange rate risk.

The average total VaR for trading and non-trading books during the six months to 30 June 2003 was $14.0 million (30 June 2002: $16.3 million; 31 December 2002: $15.2 million) with a maximum exposure of $14.9 million. The total VaR for market risks in the Group's trading book was $4.6 million at 30 June 2003, (30 June 2002: $5.0 million; 31 December 2002: $2.7 million). Of this total, $4.0 million related to interest rate risk (30 June 2002: $2.7 million; 31 December 2002: $1.6 million) and $1.3 million to exchange rate risk (30 June 2002: $2.0 million; 31 December 2002: $1.1 million).

VaR for interest rate risk in the non-trading books of the Group totalled $11.5 million at 30 June 2003 (30 June 2002: $11.1 million; 31 December 2002: $10.6 million).

The Group has no significant trading exposure to equity or commodity price risk.

Foreign Exchange Exposure

The Group's foreign exchange exposures comprise trading and structural foreign currency translation exposures.

Foreign exchange trading exposures are principally derived from customer driven transactions. The average daily foreign exchange trading revenue during the six months ended 30 June 2003 was $1.2 million.

Interest Rate Exposure

The Group's interest rate exposures comprise trading exposures and structural interest rate exposures. Interest rate risk arises on both trading positions and non-trading books.

Structural interest rate risk arises from the differing repricing characteristics of commercial banking assets and liabilities, including non-interest bearing liabilities such as shareholders' funds and some current accounts.

The average daily interest rate revenue from market-risk related activities during the six months ended 30 June 2003 was $2.7 million.

Derivatives

Derivatives are contracts whose characteristics and value derive from underlying financial instruments, interest and exchange rates or indices. They include futures, forwards, swaps and options transactions in the foreign exchange and interest rate markets. Derivatives are an important risk management tool for banks and their customers because they can be used to manage the risk of price, interest rate and exchange rate movements.

The Group's derivative transactions are principally in plain vanilla instruments, where the mark to market values are readily determinable by reference to independent prices and valuation quotes or by using standard industry pricing models.

The Group enters into derivative contracts in the normal course of business to meet customer requirements and to manage its own exposure to fluctuations in interest and exchange rates. Only offices with sufficient product expertise and appropriate control systems are authorised to undertake transactions in derivative products.

The credit risk arising from a derivative contract is calculated by taking the cost of replacing the contract, where its mark-to-market value is positive together with an estimate for the potential change in the future value of the contract, reflecting the volatilities that affect it. The credit risk on contracts with a negative mark-to-market value is restricted to the potential future change in their market value. The credit risk on derivatives is therefore usually small relative to their notional principal values.

The Group applies a potential future exposure methodology to manage counterparty credit exposure associated with derivative transactions.

Liquidity Risk

The Group defines liquidity risk as the risk that funds will not be available to meet liabilities as they fall due. At the local level, in line with policy, the day to day monitoring of future cash flows takes place and suitable levels of easily marketable assets are maintained by the businesses.

A substantial portion of the Group's assets are funded by customer deposits made up of current and savings accounts and other short-term deposits. These customer deposits, which are widely diversified by type and maturity, represent a stable source of funds. Lending is normally funded by liabilities in the same currency and if other currencies are used the foreign exchange risk is usually hedged.

Standard Chartered PLC

Operational and Other Risks

Operational Risk is the risk of direct or indirect loss due to an event or action causing failure of technology, processes, infrastructure, personnel, and other risks having an operational impact. Standard Chartered seeks to minimise actual or potential losses from Operational Risk failures through a framework of policies and procedures to identify, assess, control, manage and report risks.

An independent Group Operational Risk function is responsible for establishing and maintaining the overall Operational Risk framework. They are supported by Wholesale Banking and Consumer Banking Operational Risk units. The Group Operational Risk function provides reports to the Group Risk Committee.

Compliance with Operational Risk policy is the responsibility of all managers. Every country operates a Country Operational Risk Group (CORG). The CORG has in-country governance responsibility for ensuring that an appropriate and robust risk management framework is in place to monitor and manage operational risk, including social, ethical and environmental risk. Significant issues and exceptions must be reported to the CORG. Where appropriate, issues must also be reported to Business Risk Committees. Other risks recognised by the Group include Business, Regulatory and Reputational risks.

Hedging Policies

Standard Chartered does not generally hedge the value of its foreign currency denominated investments in subsidiaries and branches. Hedges may be taken where there is a risk of a significant exchange rate movement but, in general, the management believes that the Group's reserves are sufficient to absorb any foreseeable adverse currency depreciation.

Standard Chartered also seeks to match closely its foreign currency-denominated assets with corresponding liabilities in the same currencies. The effect of exchange rate movements on the capital risk asset ratio is mitigated by the fact that both the value of these investments and the risk weighted value of assets and contingent liabilities follow substantially the same exchange rate movements.

CAPITAL

The Group Asset and Liability Committee targets Tier 1 and Total capital ratios of seven - nine per cent and 12 - 14 per cent respectively. The Group believes that being well capitalised is important.

The Group identified improving the efficiency of capital management as a strategic priority in 2002. A capital plan to achieve this has been developed. This includes several key elements; in particular, to reduce the amount of Tier 2 capital and to improve the overall capital mix within the broad target ratios. Consistent with this strategy the Company has made repurchases from various classes of preference shares during the first half of 2003 amounting to a capital reduction of $17 million.

	30.06.03	30.06.02	31.12.02
	$m	$m	$m
Tier 1 capital:
Shareholders' funds	7,648	7,743	7,327
Minority interests	235	168	249
Innovative tier 1 securities	1,058	939	997
Unconsolidated associated companies	12	27	31
Less: premises revaluation reserves	(1)	(60)	(3)
goodwill capitalised	(2,049)	(2,201)	(2,118)
own shares held (see note 1 below) and other adjustments	(58)	(35)	(57)
Total tier 1 capital	6,845	6,581	6,426
Tier 2 capital:
Premises revaluation reserves	1	60	3
General provisions	458	468	468
Undated subordinated loan capital	1,867	1,829	1,853
Dated subordinated loan capital	2,729	2,828	2,605
Total tier 2 capital	5,055	5,185	4,929
Investments in other banks	(635)	(199)	(558)
Other deductions	(4)	(15)	(4)
Total capital	11,261	11,552	10,793
Risk weighted assets	57,682	55,756	55,931
Risk weighted contingents	20,160	17,096	18,623
Total risk weighted assets and contingents	77,842	72,852	74,554
Capital ratios:
Tier 1 capital	8.8%	9.0%	8.6%
Total capital	14.5%	15.9%	14.5%
	30.06.03	30.06.02	31.12.02
	$m	$m	$m
Shareholders' funds
Equity	7,023	6,470	6,695
Non Equity	625	1,273	632
	7,648	7,743	7,327
Post tax return on equity (normalised)	14.2%	12.8%	13.9%

Note 1: Own shares are held in trust to fulfil the Group's obligations under employee share plans.

Standard Chartered PLC

7-8-2003

Standard Chartered PLC

STANDARD CHARTERED PLC – FINANCIAL STATEMENTS

CONSOLIDATED PROFIT AND LOSS ACCOUNT

For the six months ended 30 June 2003

| | 6 months ended
30.06.03 | 6 months ended
30.06.02 | 6 months ended
31.12.02 |
| --- | --- | --- | --- |
| Notes | $m | $m | $m |
| Interest receivable | 2,330 | 2,553 | 2,735 |
| Interest payable | (872) | (1,011) | (1,214) |
| Net interest income | 1,458 | 1,542 | 1,521 |
| Fees and commissions receivable, net | 536 | 476 | 515 |
| Dealing profits and exchange | 274 | 229 | 191 |
| Other operating income | 79 | 38 | 27 |
| | 889 | 743 | 733 |
| Net revenue | 2,347 | 2,285 | 2,254 |
| Administrative expenses: | | | |
| Staff | (664) | (634) | (636) |
| Premises | (145) | (138) | (131) |
| Other | (308) | (315) | (358) |
| Depreciation and amortisation, of which: | (175) | (157) | (188) |
| Amortisation of goodwill | (67) | (68) | (88) |
| Other | (108) | (89) | (100) |
| Total operating expenses | (1,292) | (1,244) | (1,313) |
| Operating profit before provisions | 1,055 | 1,041 | 941 |
| Provisions for bad and doubtful debts | (308) | (406) | (299) |
| Provisions for contingent liabilities and commitments | - | (1) | (6) |
| Amounts written off fixed asset investments | (6) | - | (8) |
| Operating profit before taxation | 741 | 634 | 628 |
| Taxation | (238) | (201) | (186) |
| Operating profit after taxation | 503 | 433 | 442 |
| Minority interests (equity) | (14) | (17) | (14) |
| Profit for the period attributable to shareholders | 489 | 416 | 428 |
| Dividends on non-equity preference shares | (28) | (56) | (52) |
| Dividends on ordinary equity shares | (182) | (160) | (385) |
| Retained profit | 279 | 200 | (9) |
| Normalised earnings per ordinary share | 41.7c | 36.1c | 38.8c |
| Basic earnings per ordinary share | 39.4c | 31.8c | 25.8c |
| Dividend per ordinary share | 15.51c | 14.10c | 32.90c |

Standard Chartered PLC

7-8-2003

Standard Chartered PLC

SUMMARISED CONSOLIDATED BALANCE SHEET

As at 30 June 2003

| | 30.06.03
$m | 30.06.02
$m | 31.12.02
$m |
| --- | --- | --- | --- |
| Assets | | | |
| Cash, balances at central banks and cheques in course of collection | 1,736 | 1,004 | 1,237 |
| Treasury bills and other eligible bills | 4,873 | 4,501 | 5,050 |
| Loans and advances to banks | 17,966 | 20,103 | 16,001 |
| Loans and advances to customers | 58,013 | 54,883 | 57,009 |
| Debt securities and other fixed income securities | 22,620 | 18,659 | 20,187 |
| Equity shares and other variable yield securities | 250 | 131 | 250 |
| Intangible fixed assets | 2,049 | 2,201 | 2,118 |
| Tangible fixed assets | 888 | 993 | 928 |
| Prepayments, accrued income and other assets | 11,520 | 10,342 | 10,230 |
| Total assets | 119,915 | 112,817 | 113,010 |
| Liabilities | | | |
| Deposits by banks | 14,785 | 13,281 | 10,850 |
| Customer accounts | 71,782 | 70,178 | 71,626 |
| Debt securities in issue | 6,433 | 3,485 | 4,877 |
| Accruals, deferred income and other liabilities | 13,378 | 12,366 | 12,626 |
| Subordinated liabilities: | | | |
| Undated loan capital | 1,867 | 1,829 | 1,853 |
| Dated loan capital | 3,787 | 3,767 | 3,602 |
| Minority interests (equity) | 235 | 168 | 249 |
| Shareholders' funds | 7,648 | 7,743 | 7,327 |
| Total liabilities and shareholders' funds | 119,915 | 112,817 | 113,010 |

CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

For the six months ended 30 June 2003

| | 6 months ended
30.06.03
$m | 6 months ended
30.06.02
$m | 6 months ended
31.12.02
$m |
| --- | --- | --- | --- |
| Profit attributable to shareholders | 489 | 416 | 428 |
| Premises revaluation | - | - | (48) |
| Exchange translation differences | 36 | (39) | 39 |
| Total recognised gains and losses for the period | 525 | 377 | 419 |

NOTE OF CONSOLIDATED HISTORICAL COST PROFITS AND LOSSES

For the six months ended 30 June 2003

There is no material difference between the results as reported and the results that would have been reported on a historical cost basis. Accordingly, no note of the historical cost profits and losses has been included.

Standard Chartered PLC
7-8-2003

Standard Chartered PLC

ACCOUNTING CONVENTION

The accounts of the Group have been prepared under the historical cost convention, modified by the revaluation of certain fixed assets and dealing positions. The accounting policies, as listed in the Annual Report 2002, continue to be consistently applied.

CONSOLIDATED CASH FLOW STATEMENT

For the six months ended 30 June 2003

| | 6 months ended
30.06.03
$m | 6 months ended
30.06.02
$m | 6 months ended
31.12.02
$m |
| --- | --- | --- | --- |
| Net cash inflow from operating activities (see note 1) | 1,672 | 960 | 3,818 |
| Returns on investment and servicing of finance | | | |
| Interest paid on subordinated loan capital | (239) | (208) | (122) |
| Premium and costs on repayment of subordinated liabilities | - | - | (10) |
| Dividends paid to minority shareholders of subsidiary undertakings | (6) | (1) | (17) |
| Dividends paid on preference shares | (27) | (57) | (66) |
| Net cash outflow from returns on investment and servicing of finance | (272) | (266) | (215) |
| Taxation | | | |
| UK taxes paid | (52) | (29) | 4 |
| Overseas taxes paid | (225) | (154) | (149) |
| Total taxes paid | (277) | (183) | (145) |
| Capital expenditure and financial investment | | | |
| Purchases of tangible fixed assets | (68) | (99) | (110) |
| Acquisitions of treasury bills held for investment purposes | (6,073) | (5,449) | (5,004) |
| Acquisitions of debt securities held for investment purposes | (22,232) | (15,044) | (23,270) |
| Acquisitions of equity shares held for investment purposes | (63) | (37) | (138) |
| Disposals of tangible fixed assets | 7 | 13 | 19 |
| Disposals and maturities of treasury bills held for investment purposes | 6,398 | 6,177 | 4,490 |
| Disposals and maturities of debt securities held for investment purposes | 21,394 | 13,622 | 21,908 |
| Disposals of equity shares held for investment purposes | 53 | 9 | 9 |
| Net cash outflow from capital expenditure and financial investment | (584) | (808) | (2,096) |
| Net cash inflow/(outflow) before equity dividends paid and financing | 539 | (297) | 1,362 |
| Equity dividends paid to members of the Company | (364) | (308) | (154) |
| Financing | | | |
| Gross proceeds from issue of ordinary share capital | 2 | 25 | 374 |
| Ordinary share issue expenses | - | - | (31) |
| Redemption of preference share capital | (17) | - | (732) |
| Preference share capital – redemption expenses | - | - | (9) |
| Issue of subordinated loan capital | - | - | 11 |
| Repayment of subordinated liabilities | - | - | (355) |
| Net cash (outflow)/inflow from financing | (15) | 25 | (742) |
| Increase/(decrease) in cash in the period | 160 | (580) | 466 |

Standard Chartered PLC

7-8-2003

Standard Chartered PLC

STANDARD CHARTERED PLC– NOTES

1. Consolidated Cash Flow Statement

Reconciliation between operating profit before taxation and net cash inflow from operating activities:

| | 6 months ended
30.06.03
$m | 6 months ended
30.06.02
$m | 6 months ended
31.12.02
$m |
| --- | --- | --- | --- |
| Operating profit | 741 | 634 | 628 |
| Items not involving cash flow: | | | |
| Amortisation of goodwill | 67 | 68 | 88 |
| Depreciation and amortisation of premises and equipment | 108 | 89 | 100 |
| Loss on disposal of tangible fixed assets | – | 1 | 2 |
| Gain on disposal of investment securities | (48) | (19) | 1 |
| Amortisation of investments | 12 | (16) | (32) |
| Charge for bad and doubtful debts and contingent liabilities | 308 | 407 | 305 |
| Amounts written off fixed asset investments | 6 | – | 8 |
| Debts written off, net of recoveries | (494) | (365) | (576) |
| Increase/(decrease) in accruals and deferred income | 42 | (149) | (107) |
| (Increase)/decrease in prepayments and accrued income | (452) | 109 | (125) |
| Adjustments for items shown separately: | | | |
| Interest paid on subordinated loan capital | 239 | 208 | 122 |
| Premium and costs on repayment of subordinated liabilities | – | – | 10 |
| Net cash inflow from trading activities | 529 | 967 | 424 |
| Net increase in cheques in the course of collection | (73) | (2) | (17) |
| Net increase in treasury bills and other eligible bills | (14) | (47) | (46) |
| Net (increase)/decrease in loans and advances to banks and customers | (2,856) | (2,099) | 2,559 |
| Net increase/(decrease) in deposits from banks, customer accounts and debt securities in issue | 5,320 | 3,043 | (152) |
| Net (increase)/decrease in dealing securities | (972) | (615) | 313 |
| Net (increase)/decrease in mark-to-market adjustment | (104) | 128 | 286 |
| Net (decrease)/increase in other accounts | (158) | (415) | 451 |
| Net cash inflow from operating activities | 1,672 | 960 | 3,818 |
| Analysis of changes in cash | | | |
| Balance at beginning of period | 3,496 | 3,549 | 3,050 |
| Exchange translation differences | 7 | 81 | (20) |
| Net cash inflow/(outflow) | 160 | (580) | 466 |
| Balance at end of period | 3,663 | 3,050 | 3,496 |

2. Taxation

| | 6 months ended
30.06.03
$m | 6 months ended
30.06.02
$m | 6 months ended
31.12.02
$m |
| --- | --- | --- | --- |
| Analysis of taxation charge in the period | | | |
| The charge for taxation based upon the profits for the period comprises: | | | |
| United Kingdom corporation tax at 30%
(30 June 2002: 30%; 31 December 2002: 30%) | | | |
| Current tax on income for the period | 158 | 130 | 136 |
| Adjustments in respect of prior periods | 2 | (1) | 18 |
| Double taxation relief | (139) | (90) | (90) |
| Foreign tax: | | | |
| Current tax on income for the period | 223 | 183 | 199 |
| Adjustments in respect of prior periods | (1) | (1) | (55) |
| Total current tax | 243 | 221 | 208 |
| Deferred tax: | | | |
| Origination/reversal of timing differences | (5) | (20) | (22) |
| Tax on profits on ordinary activities | 238 | 201 | 186 |
| Effective tax rate | 32.1% | 31.7% | 29.6% |

Overseas taxation includes taxation on Hong Kong profits of $25 million (30 June 2002: $21 million; 31 December 2002: $10 million) provided at a rate of 17.5 per cent (30 June 2002: 16 per cent; 31 December 2002: 16 per cent) on the profits assessable in Hong Kong. The Group's net deferred tax asset is $258 million, and is included in other assets (30 June 2002: $208 million; 31 December 2002: $236 million).

Standard Chartered PLC
7-8-2003

Standard Chartered PLC

3. Statutory Accounts

The information in this Interim statement is unaudited and does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. This document was approved by the Board on 6 August 2003. The comparative figures for the financial year ended 31 December 2002 are not the Company's statutory accounts for that financial year. Those accounts have been reported on by the Company's auditors and delivered to the Registrar of Companies. The report of the auditors was unqualified and did not contain a statement under Section 237 (2) or (3) of the Companies Act 1985.

4. Forward Looking Statements

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. These 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, competitive and general operating conditions.

Independent review report by KPMG Audit Plc to Standard Chartered PLC

Introduction

We have been engaged by the Company to review the financial information set out on pages 32 to 37 and we have read the other information contained in the interim report and considered whether it contains any apparent misstatements or material inconsistencies with the financial information.

This report is made solely to the Company in accordance with the terms of our engagement to assist the Company in meeting the requirements of the Listing Rules of the Financial Services Authority. Our review has been undertaken so that we might state to the Company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company for our review work, for this report, or for the conclusions we have reached.

Directors' responsibilities

The interim report, including the financial information contained therein, is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the interim report in accordance with the Listing Rules which require that the accounting policies and presentation applied to the interim figures should be consistent with those applied in preparing the preceding annual accounts except where they are to be changed in the next annual accounts, in which case any changes and the reasons for them are to be disclosed.

Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999/4: Review of interim financial information issued by the Auditing Practices Board for use in the United Kingdom. A review consists principally of making enquiries of Group management and applying analytical procedures to the financial information and underlying financial data and, based thereon, assessing whether the accounting policies and presentation have been consistently applied unless otherwise disclosed. A review is substantially less in scope than an audit performed in accordance with Auditing Standards and therefore provides a lower level of assurance than an audit. Accordingly, we do not express an audit opinion on the financial information.

Review conclusion

On the basis of our review we are not aware of any material modifications that should be made to the financial information as presented for the six months ended 30 June 2003.

KPMG Audit Plc
Chartered Accountants
London
6 August 2003

Financial Calendar

Ex-dividend date	13 August 2003
Record date	15 August 2003*
Posting to shareholders of 2003 Interim Report	22 August 2003
Payment date - interim dividend on ordinary shares	10 October 2003

At 9:00am (Hong Kong time) for shareholders on the Hong Kong Branch Register and at 6:00pm GMT for shareholders on the United Kingdom Share Register.

Standard Chartered PLC
7-8-2003

Standard Chartered PLC

The following information is available on our website www.standardchartered.com/investor

Interviews with Mervyn Davies (Group Chief Executive) and Peter Sands (Group Finance Director)
Interim Report 2003
Press Release 2003 Interim Results
A live webcast of the interim results analyst presentation (available 9:45am GMT)
Slides for the Group's presentations (available 12:00pm GMT)
A pre recorded and Q/A session of analyst presentation in London (available 1:00pm GMT)

Images of Standard Chartered and the logo are available for the media at www.newscast.co.uk

Information regarding the Group's commitment to corporate and social responsibility is available at www.standardchartered.com/ourbeliefs.

The information required by the Stock Exchange of Hong Kong's Listing Rules, Appendix 16, paragraphs 46 (1) to 46 (6) inclusive, is in the Interim Report 2003, which can be found on the website of the Stock Exchange of Hong Kong and on Standard Chartered's website.

Please also refer to the published version of this announcement in South China Morning Post dated on 7-8-2003.

Standard Chartered PLC
7-8-2003
26

AI assistant

Standard Chartered PLC — Interim / Quarterly Report 2003

4648_rns_2003-08-07_98a79a2e-df12-469a-b84e-8fed39d47f26.pdf

STANDARD CHARTERED PLC

INTERIM RESULTS FOR 2003

HIGHLIGHTS

Results

Significant achievements

STANDARD CHARTERED PLC – SUMMARY OF RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2003

STANDARD CHARTERED PLC – CHAIRMAN'S STATEMENT

Economic Commentary

Business Progress

Community Achievements

The Board

Summary

STANDARD CHARTERED PLC – GROUP CHIEF EXECUTIVE'S REVIEW

Progress on Management Agenda

Wholesale Banking

Consumer Banking

Hong Kong and Greater China

India

MESA

Africa

Market Growth

Management Strength

Brand and Values

The Outlook

STANDARD CHARTERED PLC – FINANCIAL REVIEW

GROUP SUMMARY

CONSUMER BANKING

WHOLESALE BANKING

RISK

Credit Risk

Loan Portfolio

Problem Credits

Consumer Banking

Wholesale Banking

Wholesale Banking Cover Ratio

Group

Country Risk

Argentina

Other Latin American exposure

Market Risk

Value at Risk

Foreign Exchange Exposure

Interest Rate Exposure

Derivatives

Liquidity Risk

Operational and Other Risks

Hedging Policies

CAPITAL

STANDARD CHARTERED PLC – FINANCIAL STATEMENTS

CONSOLIDATED PROFIT AND LOSS ACCOUNT

SUMMARISED CONSOLIDATED BALANCE SHEET

CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

NOTE OF CONSOLIDATED HISTORICAL COST PROFITS AND LOSSES

ACCOUNTING CONVENTION

CONSOLIDATED CASH FLOW STATEMENT

STANDARD CHARTERED PLC– NOTES

1. Consolidated Cash Flow Statement

2. Taxation

3. Statutory Accounts

4. Forward Looking Statements

Independent review report by KPMG Audit Plc to Standard Chartered PLC

Introduction

Directors' responsibilities

Review work performed

Review conclusion

Financial Calendar

More from Standard Chartered PLC

Standard Chartered PLC Interim / Quarterly Report 2003