Slide 1: Final Results 2006
Final Results 2006 27 February 2007
Slide 2: Leading the way in Asia, Africa and the Middle East
Leading the way in Asia, Africa and the Middle East Mervyn Davies Chairman 2
Slide 3: Performance highlights
Performance highlights Income US$8.62bn 26% Profit before tax US$3.18bn 19% Normalised EPS 170.7c 11% Dividend per share 71.04c 11% 3
Slide 4: Global economy
f : Global economy Gtandard & Middle East | : J Largest trade surplus $2 word Asia Pacific (2005 figures) . - 7 = =, - Africa Hong Kong 17% of global IPO activity in 2006 Africa-China trade has soared tenfold in six years to $55.5bn South Asia hokis 1/5" of the world's population Global =% — trade f
Slide 5: Summary
Summary Consistent delivery Continuity of leadership Strong global economy Positive outlook 5
Slide 6: Leading the way in Asia, Africa and the Middle East
Leading the way in Asia, Africa and the Middle East Richard Meddings Group Finance Director 6
Slide 7: Group performance
Group performance US$m 2005 2006 YOY% Income 6,861 8,620 26 Expenses (3,811) (4,796) 26 Operating profit before provisions 3,050 3,824 25 Loan impairment (319) (629) 97 Other impairment and loss from associates (50) (17) (66) Profit before tax 2,681 3,178 19 Profit attributable to ordinary sharehold
Slide 8: Performance highlights
Performance highlights Normalised metrics 2005 2006 Earnings per share 153.7c 170.7c Return on ordinary shareholders equity 18.0% 16.9% Cost income ratio 54.5% 55.2% 8
Slide 9: Sources of income growth
Sources of income growth US$m 1,047 8,620 864 8,620 565 147 882 6,861 6,861 Includes US$140m of organic growth in H2 2006 2005 Korea Union/ Rest of 2006 2005 Consumer Wholesale 2006 Hsinchu* world Banking** Banking** *Includes additional 12.96% purchase in Permata **US$13m of corporate items not all
Slide 10: Performance by geography
Performance by geography Profit before tax US$m 2005 2006 YOY % Hong Kong 717 888 24 Singapore 225 289 28 Malaysia 155 178 15 Korea 264 454 72 Other APR 398 208 -48 India 238 403 69 MESA 482 503 4 Africa 64 192 200 Americas, UK & Group 138 63 -54 Total 2,681 3,178 19 10
Slide 11: Underlying Group performance
Underlying Group performance (excluding Korea and acquisitions*) US$m 2005 2006 YOY % Income 5,904 6,951 18 Expenses (3,179) (3,733) 17 Operating profit before provisions 2,725 3,218 18 Loan impairment (258) (515) 100 Other impairment and loss from associates (50) (17) (66) Profit before tax 2,417 2
Slide 12: Consumer Banking performance
Consumer Banking performance Underlying US$m 2005 2006 YOY % YOY %* Income 3,802 4,684 23 10 Expenses (2,101) (2,641) 26 10 Operating profit before provisions 1,701 2,043 20 10 Loan impairment (425) (721) 70 67 Other impairment (3) (0) Operating profit 1,273 1,322 4 (9) * Underlying numbers are ex K
Slide 13: Consumer Banking income
Consumer Banking income US$m 2005 2006 YOY % Hong Kong 976 1,019 4 Singapore 324 367 13 Malaysia 210 221 5 Korea 697 1,146 64 Other APR 611 729 19 India 286 323 13 MESA 379 545 44 Africa 258 257 0 Americas, UK & Group 61 77 26 Total 3,802 4,684 23 13
Slide 14: Consumer Banking expenses
Consumer Banking expenses US$m 2005 2006 YOY % Hong Kong 415 428 3 Singapore 126 142 13 Malaysia 95 101 6 Korea 505 799 58 Other APR 342 445 30 India 179 201 12 MESA 182 280 54 Africa 205 194 -5 Components of expense growth (%) Americas, UK & Group 52 51 -2 5 Investment for future growth Total 2,101
Slide 15: Consumer Banking loan impairment
Consumer Banking loan impairment US$m 2005 2006 YOY % Total loan impairment (425) (721) 70 Individual impairment provision (59) (248) 320 Portfolio impairment provision (39) 0 NA SCB Taiwan branch* (98) (248) 153 Individual impairment provision (301) (441) 47 Portfolio impairment provision (26) (32)
Slide 16: Wholesale Banking performance
Wholesale Banking performance Underlying US$m 2005 2006 YOY % YOY %* Income 3,059 3,923 28 26 Expenses (1,710) (2,151) 26 24 Operating profit before provisions 1,349 1,772 31 27 Loan impairment 106 92 (13) (9) Other asset impairment (11) (15) 36 36 Operating profit 1,444 1,849 28 24 Risk weighted as
Slide 17: Wholesale Banking income
Wholesale Banking income Client income growth Income growth by segment (%) by product (%) Commodity 19 Corporates Trade & Lending 14 Global 22 Corporates Cash Management 38 Financial & Custody 27 Institutions Global Markets 32 Local 24 Corporates 17
Slide 18: Wholesale Banking expenses
Wholesale Banking expenses US$m Korea and acquisitions 2,151 Up 26% Underlying 182 Up 24% 1,710 Components of underlying expense growth (%) 127 7 Investment for future growth 1,969 3 Regulatory/Control 1,583 14 BAU/Volume 24 2005 2006 18
Slide 19: Wholesale Banking loan impairment
Wholesale Banking loan impairment US$m 2005 2006 YOY % Specific impairment provisions (169) (80) (53) Recoveries 287 170 (41) Net impairment 118 90 (24) Portfolio impairment provisions (12) 2 NA Total net release 106 92 (13) Loans and advances to customers (US$bn) 44.4 61.7 39 19
Slide 20: Korea performance
Korea performance H2 06 v H2 05 US$m H2 2005 H2 2006 % Income 648 788 22 Expenses (465) (512) 10 Loan impairment (27) (56) 107 Profit before tax 156 220 41 20
Slide 21: Hsinchu and Union performance
Hsinchu and Union performance 2006 US$m Hsinchu Union Income 80 51 Expenses (47) (34) Loan impairment (6) (10) Profit before tax 27 7 NOTE: Ownership of Hsinchu from 19 October 2006 and Union from 5 September 2006 21
Slide 22: Group balance sheet – liabilities
Group balance sheet – liabilities Deposits US$bn 2005 2006 YOY % Current & demand accounts 53.3 65.9 24 Deposits 87.9 111.5 27 Total 141.2 177.4 26 22
Slide 23: Group balance sheet – assets
Group balance sheet – assets Loans to customers US$bn 2005 2006 YOY % Consumer Banking Mortgages 44.1 49.8 13 Other 14.6 17.4 19 SME 9.5 12.3 29 Total Consumer Banking 68.2 79.5 17 Wholesale Banking 44.4 61.7 39 Total Loans to customers* 112.6 141.2 25 * Before portfolio impairment provision 23
Slide 24: Capital management
Capital management 15.0 % 15 14.3 13.6 6.4 5.9 5.9 10 5 7.7 8.4 8.6 2004 2005 2006 Tier 1 Tier 2 24
Slide 25: Outlook for 2007
Outlook for 2007 Good income momentum Accelerated investment, improved productivity Tight management of risk 25
Slide 26: Leading the way in Asia, Africa and the Middle East
Leading the way in Asia, Africa and the Middle East Peter Sands Group Chief Executive 26
Slide 27: Five year performance
Five year performance 1,400 60,000 CAGR 21% CAGR 16% 540 28,900 2001 2006 2001 2006 Branches Employees US$ 8.6 bn 170.7 CAGR 14% CAGR 21% US$ 4.4 bn 66.3 2001 2006 2001 2006 Income EPS (US$ c) 27
Slide 28: 2006 highlights
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Slide 29: Leading the way
Leading the way Strategic The world’s best international bank intent 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 Managem
Slide 30: 2007 agenda
2007 agenda Accelerate organic growth Deliver on acquisitions Continuous improvement Building leadership Reinforce the brand 30
Slide 31: China
China 31
Slide 32: India
India 32
Slide 33: Middle East
Mi ddle East standard Chartered R Standard © | BY} DUBAINA
Slide 34: The Standard Chartered Private Bank
The Standard Chartered Private Bank |
Slide 35: Corporate finance
Corporate finance INDIA SINGAPORE /AUSTRALIA MALAYSIA/ INDIA TATA Steel Limited Toll Holdings Maxis Communications Berhad US$2.5 Billion SGD1,357 Million US$1.08 Billion Acquisition of Corus Group Acquisition of and General Offer for Acquisition of Aircel Limited, India Sembcorp Logistics Limited Le
Slide 36: Acquisitions
Vy, (* 7 I NS Ctivestad 30 billion | in Pakistan at reon ‘the path to a bright future Standard Chartered Bank invested Rs 30 billion in Pakistan's economy for the acquisition of Union Bank; the largest ever investment in Pakistan's Banking industry. Together, we will be the leading achat JiaVo hi Ba
Slide 37: Continuous improvement
ox ‘© Continuous improvement Giandare
Slide 38: Building leadership
Building leadership 38
Slide 39: Reinforce the brand
Reinforce the brand 39
Slide 40: Summary
KS x Standard don Summary Chartered &
Slide 41: 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