Slide 1: Final Results 2005
Final Results 2005 2 March 2006 Leading the way in Asia, Africa and the Middle East
Slide 2: Forward looking statements
Forward looking statements It is possible that this presentation could or may contain forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only
Slide 3: Leading the way – Bryan Sanderson, Chairman
Leading the way in Asia, Africa and the Middle East Bryan Sanderson Chairman
Slide 4: Performance highlights
Performance highlights Income US$6.86bn 27% Operating profit before tax US$2.68bn 19% Normalised EPS 153.7c 23% Dividend (per share) 64.0c 11%
Slide 5: Global trends
Global trends GDP growth % 2005 2006F* 2007F* China 9.9 9.4 8.5 India 7.8 7.0 6.5 South Korea 4.0 4.6 3.7 Hong Kong 7.3 6.0 4.5 Singapore 6.0 5.0 5.5 Malaysia 5.3 5.0 6.0 UAE 12.0 7.0 5.0 Nigeria 6.0 7.0 5.2 Indonesia 5.6 5.5 5.8 *Standard Chartered forecasts
Slide 6: Strategic progress
Strategic progress Thailand Indonesia India China Korea
Slide 7: Well positioned
Well positioned Dynamic markets Growth opportunities International standards, local expertise
Slide 8: Summary
Summary Performance track record Well positioned in growing markets Strategic progress
Slide 9: Leading the way – Peter Sands, Group Finance Director
Leading the way in Asia, Africa and the Middle East Peter Sands Group Finance Director
Slide 10: Group performance
Group performance US$m 2004 2005 YOY% Income 5,382 6,861 27 Expenses (2,849) (3,811) 34 Operating profit before provisions 2,533 3,050 20 Loan impairment (214) (319) 49 Other impairment (68) (50) (26) Profit before tax 2,251 2,681 19 Profit attributable to ordinary shareholders 1,520 1,917 26
Slide 11: Performance highlights
Performance highlights Normalised metrics 2004 2005 Earnings per share 124.6c 153.7c Return on ordinary shareholders equity 18.6% 18.0% Cost income ratio 54.0% 54.5%
Slide 12: Group balance sheet
Group balance sheet Loans to customers US$bn 2004 2005 YOY % Consumer Banking Mortgages 22.0 44.1 100 Other 10.0 14.6 46 SME 3.5 9.5 171 Total 35.5 68.2 92 Wholesale Banking Total 37.0 44.4 20
Slide 13: Performance by geography
Performance by geography Profit before tax US$m 2004 2005 YOY % Hong Kong 621 745 20 Singapore 252 221 -12 Malaysia 123 153 24 Korea 32 261 716 Other APR 235 395 68 India 194 235 21 MESA 376 478 27 Africa 212 62 -71 Americas, UK & Group 206 131 -36 Total 2,251 2,681 19
Slide 14: Korea performance
Korea performance 2005 SCB US$m SCFB Korea Total Income 859 95 954 Expenses (579) (53) (632) Loan impairment (53) (8) (61) Other impairment 0 0 0 Operating profit before tax 227 34 261
Slide 15: SCFB performance
SCFB performance 2005 Consumer Wholesale US$m Banking Banking Total Income 671 188 859 Expenses (486) (93) (579) Loan impairment (48) (5) (53) Other impairment 0 0 0 Operating profit before tax 137 90 227
Slide 16: Impact of SCFB on normalised EPS
Impact of SCFB on normalised EPS US$ H1 05 H2 05 FY 05 Including SCFB 75.2c 78.5c 153.7c Excluding SCFB 76.9c 78.3c 155.2c % impact on normalised EPS (2.1) 0.4 (0.9)
Slide 17: Group performance (excluding SCFB)
Group performance (excluding SCFB) US$m 2004* 2005 YOY % Income 5,274 6,002 14 Expenses (2,826) (3,232) 14 Operating profit before provisions 2,448 2,770 13 Loan impairment (214) (266) 24 Other impairment (1) (50) Operating profit before tax 2,233 2,454 10 Normalised cost income ratio (%) 54.0 53.0
Slide 18: Consumer Banking performance
Consumer Banking performance (excluding SCFB) US$m 2004* 2005 YOY % Income 2,700 3,136 16 Expenses (1,400) (1,615) 15 Operating profit before provisions 1,300 1,521 17 Loan impairment (242) (377) 56 Other impairment (3) Operating profit before tax 1,058 1,141 8 * 2004 reported on an IFRS basis exclu
Slide 19: Consumer Banking income
Consumer Banking income (excluding SCFB) US$m 2004* 2005 YOY % Hong Kong 954 989 4 Singapore 330 322 -2 Malaysia 175 209 19 Korea 7 24 NA Other APR 393 611 4 55 India 258 285 10 MESA 296 378 28 Africa 218 257 18 Americas, UK & Group 69 61 -12 Total 2,700 3,136 16 * 2004 reported on an IFRS basis exc
Slide 20: Consumer Banking expenses
Consumer Banking expenses (excluding SCFB) US$m New markets New product launches Up 15% 1,615 Expansion of sales and distribution channels 1,400 Components of expense growth (%) 7 Investment for future growth 1 Regulatory/Control 7 BAU/Volume 15 2004* 2005 * 2004 reported on an IFRS basis excl
Slide 21: Consumer Banking expense growth
Consumer Banking expense growth (excluding SCFB) US$m 2004 Total 1,400 Hong Kong -1 Singapore 9 Malaysia 9 Korea 7 Other APR 117 India 26 MESA 38 Africa 9 Americas, UK & Group 1 2005 Total 1,615
Slide 22: Consumer Banking loan impairment
Consumer Banking loan impairment (excluding SCFB) US$m 2004* 2005 YOY % Specific impairment provisions (271) (315) 16 General provision release 29 Portfolio impairment provisions (62) Total (242) (377) 56 Other impairment 0 (3) Loans and advances to customers (US$bn) 35 37 4 * 2004 reported on an IF
Slide 23: Wholesale Banking performance
Wholesale Banking performance (excluding SCFB) US$m 2004* 2005 YOY % Income 2,574 2,866 11 Expenses (1,426) (1,617) 13 Operating profit before provisions 1,148 1,249 9 Loan impairment 28 111 Other asset impairment (1) (11) Operating profit before tax 1,175 1,349 15 Risk weighted assets (US$bn) 64 65
Slide 24: Wholesale Banking income
Wholesale Banking income (excluding SCFB) Client income growth Income growth by segment (%) by products (%) Local 19 Trade & Lending -7 corporates Large local 13 Global Markets 12 corporates Financial Cash Management 19 43 Institutions & Custody Multinationals 22
Slide 25: Wholesale Banking expenses
Wholesale Banking expenses (excluding SCFB) Expanded geographic US$m and client coverage 1,617 Up 13% New products Enhanced systems 1,426 Components of expense growth (%) 5 Investment for future growth 2 Regulatory/Control 6 BAU/Volume 13 2004* 2005 * 2004 reported on an IFRS basis excluding I
Slide 26: Wholesale Banking loan impairment
Wholesale Banking loan impairment (excluding SCFB) US$m 2004* 2005 YOY % Specific impairment provisions (157) (169) 8 Recoveries 159 287 81 Net impairments 2 118 General provision release 26 Portfolio impairment provisions (7) Total 28 111 Other impairment 1 (11) Loans and advances to customers (US$
Slide 27: Group expenses
Group expenses (including SCFB) US$m SCFB Up 34% Business and Support 3,811 Technology production 579** and operations 2,849 Expense growth by type YOY (%) 2,548 2,184* 17 Business and Support Technology production 3 665 684 and operations 2004 2005 *Business and support expenses include one-offs ar
Slide 28: Risk management
Risk management (including SCFB) NPL US$m 1000 LMA (Thailand) 940 904 1.0 Underlying 800 0.93 SCFB 0.8 0.84 600 0.6 Net NPL ex LMA as % of Loans to customers 400 Loan impairment 0.4 charge as % of Loans to customers 200 0.2 0.30 0.28 0 0 2004 2005
Slide 29: Capital management
Capital management (including SCFB) % 16 Total 15.0 14 Total 13.6 12 10 8 6 8.6 7.7 4 2 0 2004 2005 Tier 1 Tier 2
Slide 30: Outlook for 2006
Outlook for 2006 Good income momentum Disciplined expenses management Tight management of risk
Slide 31: Leading the way – Mervyn Davies, Group Chief Executive
Leading the way in Asia, Africa and the Middle East Mervyn Davies Group Chief Executive
Slide 32: Our business
Our business Strong financial performance Market opportunities Diversity — product, markets, people
Slide 33: Normalised EPS (cents)
Performance US$m 180 3,000 2,681 2,500 2,251 Normalised EPS (cents) 140 2,000 Profit before tax 1,550 1,500 1,409 1,262 1,089 100 1,000 500 0 60 2000 2001 2002 2003 2004 2005 Chartered Trust sale *2004 reported on an IFRS basis excluding IAS 32/39, †2005 reported on a full IFRS basis
Slide 34: Strategic intent
Strategic intent Strategic intent The world’s best international bank Leading the way in Asia, Africa and the Middle East brand promise The Right Partner – Leading By Example values Responsive Trustworthy Creative International Courageous approach Participation Competitive Positioning Manage
Slide 35: India and China
India and China Chartered © Jinzhoy” y Y Gye vorend (Dalian@ °°” 19 — Weihai eTianjin awe oS Yantai” YELLOW Beijing e > 4 d SEA Taken ad Qingdao co e aa } ae 7 1 Cc H I N A § (Jodhpure . Naatong emn_ ne Zhen a > Shs tile "hou 7S Shanghai X ae: Maer wo \ SS é 1 ts \—~ Surat 2! hs y IN DIA Kolbe ¢ Mum
Slide 36: SC First Bank
SC First Bank Completed rebranding Established strong management team Strong staff engagement Good progress to date, more to do
Slide 37: 2006 management agenda
2006 management agenda Accelerate growth in both businesses, focusing on priority markets Deepen client relationships in Wholesale Banking Enter new customer segments in Consumer Banking Drive growth and performance in Korea Excel in service and innovation Lead by example in corporate re
Slide 38: Looking forward
Looking forward Demographic change Environmental issues Information needs
Slide 39: Customers and innovation
Customers and innovation Customer understanding Outserve Product innovation
Slide 40: Our talent
Our talent
Slide 41: Outlook
Outlook Good momentum in both businesses Well positioned in dynamic markets Investing for future growth Focused on performance