Interim Results-Part 3

Standard Chartered PLC
2 August 2000

PART 3

 12. Non-performing loans and advances


                                   30.6.00                   30.6.99
                            SCNB      Other   Total   SCNB      Other   Total
                              £m         £m      £m     £m         £m      £m
                                                                             
    Loans and advances on                                               
    which interest is        579      2,004   2,583      -      1,893   1,893
    suspended
                                                                             
    Specific provisions                                                      
    for bad and doubtful    (69)      (819)   (888)      -      (698)   (698)
    debts
                                                                             
    Interest in suspense       -      (227)   (227)      -      (197)   (197)
                             510        958   1,468      -        998     998

                                  31.12.99
                            SCNB      Other   Total
                              £m         £m      £m
                                                   
    Loans and advances on                          
    which interest is        596      2,002   2,598
    suspended
                                                   
    Specific provisions                            
    for bad and doubtful    (63)      (801)   (864)
    debts
                                                   
    Interest in suspense       -      (208)   (208)
                             533        993   1,526

     The  Group  acquired Standard Chartered Nakornthon Bank (SCNB)  (formerly
     Nakornthon Bank) in September 1999.  At 30 June 2000, under the terms  of
     the  acquisition,  net non-performing loans (NPLs) of  £510  million  are
     subject   to  a  Loan  Management  Agreement  (LMA)  with  the  Financial
     Institutions  Development Fund (FIDF), a Thai Government  agency.   Under
     the  LMA,  the FIDF has guaranteed the recovery of a principal amount  of
     the  NPLs  of £387 million.  The LMA also provides, inter alia, for  loss
     sharing  arrangements whereby the FIDF will bear up to  85  per  cent  of
     losses in excess of the guaranteed amount.  The carrying cost of the NPLs
     is  reimbursable by the FIDF to SCNB for a period of five years from  the
     date of acquisition.

     Excluding the SCNB non-performing loan portfolio, specific provisions and
     interest  in  suspense, including provisions held  against  enhanced  and
     other  performing emerging markets debt (see note 11), together cover  56
     per  cent  (30 June 1999: 52 per cent; 31 December 1999: 54 per cent)  of
     total non-performing lending to customers.  If lending and provisions are
     adjusted  for the cumulative amounts written off, the effective cover  is
     63 per cent (30 June 1999: 57 per cent; 31 December 1999: 60 per cent).
     

13.  Accounting policies

     With  the  following  exception, accounting policies are  unchanged  from
     those  set  out  in  the  1999 Annual Report: the Group  has  implemented
     Financial  Reporting  Standard  15 and, as  a  result,  has  revised  its
     accounting policy in relation to depreciation of premises.  The effect of
     the  change is not material and, therefore, prior period results have not
     been restated.


 14. Consolidated cash flow statement

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

                                                 6 months  6 months  6 months
                                                    ended     ended     ended
                                                  30.6.00   30.6.99  31.12.99
                                                       £m        £m        £m
                                                                             
    Operating profit before taxation                  356       271       236
    Items not involving cash flow:                                           
    Depreciation and amortisation of premises          55        37        58
    and equipment
    Amortisation of goodwill                           16         8        14
    Amortisation of investments                      (19)      (19)      (11)
    Charge for bad and doubtful debts and                                     
    contingent liabilities                            164       240       255
                                                                             
    Debts written off, net of recoveries            (182)     (117)     (133)
    (Decrease)/increase in accruals and              (68)     (296)        75
    deferred income
    Decrease/(increase) in prepayments and             85       251     (129)
    accrued income
    Adjustments for items shown separately:                                  
    Interest paid on subordinated loan capital         59        42        60
    Net cash inflow from trading activities           466       417       425
    Net (increase)/decrease in cheques in the                                
    course of collection                             (15)      (10)        13
                                                                             
    Net (increase)/decrease in treasury bills                                
    and other eligible bills                         (51)      (14)      (17)
                                                                             
    Net increase in loans and advances to banks   (2,819)   (3,855)       510
    and customers
    Net increase in deposits from banks,                                     
    customer accounts and debt securities in        3,237     3,432        67
    issue
                                                                             
    Net (increase)/decrease in dealing               (95)     (189)      (42)
    securities
    Net (increase)/decrease in mark-to-market       (129)       149     (214)
    adjustment
    Net decrease/(increase) in other accounts         232       491     (182)
    Net cash inflow from operating activities         826       421       560

     Analysis of changes in cash

                                                 6 months  6 months  6 months
                                                    ended     ended     ended
                                                  30.6.00   30.6.99  31.12.99
                                                       £m        £m        £m
                                                                             
    Balance at beginning of period                  1,389     1,275     1,412
    Exchange translation differences                   50        30         5
    Net cash inflow/(outflow)                         902       107      (28)
    Balance at end of period                        2,341     1,412     1,389


 15. Cross border assets

     The  following  table  shows the Group s cross border  assets,  including
     acceptances,  where they exceed 1 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.

                                                     30.6.00
                                       Public                                
                                       sector      Banks     Other      Total
                                           £m         £m        £m         £m
                                                                             
    USA                                   957        479       602      2,038
    Germany                                32      1,470        15      1,517
    Hong Kong                              13         64     1,310      1,387
    Italy                                  91        921        29      1,041
    Singapore                               3        298       706      1,007
    Korea                                   -        750       198        948
    Japan                                   7        728        42        777
    France                                 26        674        21        721
    Brazil                                 10        557        81        648


                                                    31.12.99
                                       Public                                
                                       sector      Banks     Other      Total
                                           £m         £m        £m         £m
                                                                             
    USA                                   764        282       424      1,470
    Hong Kong                               8         95     1,188      1,291
    Germany                                32      1,187         7      1,226
    Singapore                              18        364       523        905
    Korea                                   3        684       101        788
    France                                 53        676        32        761
    Japan                                   2        637        19        658
    Brazil                                  8        559        69        636


 16. Net interest margin and interest spread

                                                 6 months  6 months  6 months
                                                    ended     ended     ended
                                                  30.6.00   30.6.99  31.12.99
                                                        %         %         %
                                                                             
    Net interest margin                               3.3       3.5       3.3
                                                                             
    Interest spread                                   2.6       2.9       2.7
                                                                             
                                                       £m        £m        £m
                                                                             
    Average interest earning assets                52,198    46,444    49,510
                                                                             
    Average interest bearing liabilities           45,179    40,535    43,461


17.  Capital ratios

                                                  30.6.00   30.6.99  31.12.99
                                                       £m        £m        £m
                                                                             
    Tier 1 capital                                  3,623     3,174     3,026
    Tier 2 capital                                  2,639     2,260     2,195
                                                    6,262     5,434     5,221
    Less supervisory adjustments                     (30)      (20)      (24)
    Adjusted capital base                           6,232     5,414     5,197
                                                                             
    Risk weighted assets                           31,205    28,321    28,082
    Risk weighted contingents                       7,931     7,177     7,121
    Total risk weighted assets and contingents     39,136    35,498    35,203
                                                                             
    Capital ratios                                      %         %         %
                                                                             
    Tier 1 capital                                    9.3       8.9       8.6
                                                                             
    Total capital                                    15.9      15.3      14.8

     On  17  March  2000, the  Group issued EUR 575 million of  4.5  per  cent
     Subordinated  Guaranteed  Convertible Bonds  via  a  Jersey  incorporated
     subsidiary,  Standard  Chartered Finance (Jersey) Ltd.   The  bondholders
     have  the  right to  convert each bond (denominated in units of EUR 1,000
     face value) into one fully paid EUR 1,000 preference  share  in  Standard
     Chartered Finance  (Jersey) Ltd.  These will be exchanged immediately for
     ordinary shares in Standard Chartered PLC.  The bonds will be redeemed on
     30 March 2010,  although  they  may  be  redeemed at Standard Chartered s
     option  after  15 April 2005. They may be redeemed earlier if 85 per cent
     of the bonds have been converted.


 17. Capital ratios (continued)

     On  22 March 2000, the Group issued innovative tier 1 capital of  EUR 500
     million  of  8.16  per cent Noncumulative Trust Preferred  Securities  in
     Standard  Chartered  Capital  Trust 1 LP, a Delaware  statutory  business
     trust, representing a corresponding amount of 8.16 per cent Noncumulative
     Partnership Preferred Securities of Standard Chartered Capital  1  LP,  a
     Delaware  limited  partnership  in which Standard  Chartered  Bank  ('the
     Bank')  is  the general partner.  The securities may be redeemed  at  the
     option  of the Bank in its capacity as general partner of the Partnership
     in  whole  or (in certain circumstances) in part on 23 March 2010  or  in
     whole or in part on any dividend payment date thereafter.   Dividends are
     fixed  at  8.16 per cent for 10 years and at Euribor plus  3.8  per  cent
     thereafter.   The securities will be exchanged for preference  shares  in
     Standard  Chartered PLC in the event that they have not been redeemed  by
     2045,  the  Bank  s  or  Group s total capital ratio  is  less  than  the
     regulatory minimum or the Partnership is liquidated.  The holders of  the
     securities  will have the right, subject to the Partnership  s  right  of
     redemption, to exchange their securities for the cash proceeds of a  sale
     of ordinary shares of Standard Chartered PLC on the 23 March 2010.


 18. Supplementary information on Hong Kong

     The following table includes the results of all the Group s activities in
     Hong  Kong.  It has been prepared using the same principles as those used
     to  prepare the geographical segmental information included in note 1  on
     page 15.

                                                 6 months  6 months  6 months
                                                    ended     ended     ended
                                                  30.6.00   30.6.99  31.12.99
                                                     HKDm      HKDm      HKDm
                                                                             
    Net revenue                                     4,416     4,394     4,267
    Total operating expenses                      (2,029)   (2,021)   (1,945)
    Profit before provisions                        2,387     2,373     2,322
    Provisions for bad and doubtful debts           (403)   (1,356)     (884)
    Profit before taxation                          1,984     1,017     1,438

     The  information  below  is  extracted  from  the  financial  information
     required  by  the  Hong  Kong  Monetary  Authority  to  be  disclosed  by
     authorised  institutions  incorporated outside  Hong  Kong.  It  excludes
     subsidiaries of Standard Chartered Bank in Hong Kong. It should be  noted
     that  definitions  used by the Hong Kong Monetary Authority  differ  from
     those used by the Group.

                                                  30.6.00   30.6.99  31.12.99
                                                     HKDm      HKDm      HKDm
                                                                             
    Advances to customers (including trade        142,334   135,209   134,138
    bills)
    Other assets                                  102,602    91,133   105,335
    Total assets                                  244,936   226,342   239,473
                                                                             
    Analysis of advances to customers                                        
    Mortgages                                      79,776    74,892    76,139
    Other consumer                                 11,773    10,905    11,181
    Trade finance                                  10,962    13,024    10,728
    Trade bills                                     2,533     2,364     2,100
    Financial concerns                             11,809     9,894    11,787
    Other*                                         25,481    24,130    22,203
    Provisions                                    (2,868)   (2,211)   (2,853)
    Net advances to customers                     139,466   132,998   131,285

   *Includes  HKD4,830 million (30 June 1999: HKD4,071 million;  31  December
    1999: HKD4,323 million) reported as mortgages in note 1
                                                                             
    Gross non-performing advances to customers      7,140     5,717     7,397
    Suspended interest                            (1,063)     (485)     (805)
    Specific provisions                           (2,868)   (2,211)   (2,853)
                                                    3,209     3,021     3,739
                                                                             
    Gross non-performing advances as a                                       
    percentage of gross advances to customers        5.0%      4.2%      5.5%


 19. Supplementary information on Singapore

     The following table includes the results of all the Group s activities in
     Singapore.  It has been prepared using the same principles as those  used
     to  prepare the geographical segmental information included in note 1  on
     page 15.

                                                 6 months  6 months  6 months
                                                    ended     ended     ended
                                                  30.6.00   30.6.99  31.12.99
                                                     SGDm      SGDm      SGDm
                                                                             
    Net revenue                                       368       368       361
    Total operating expenses                        (156)     (129)     (151)
    Profit before provisions                          212       239       210
    Provisions for bad and doubtful debts            (14)      (86)      (60)
    Profit before taxation                            198       153       150
     
     The  information  below is provided in the same format as  the  financial
     information  given for Hong Kong, but has been prepared  using  the  same
     definitions as those used for the Group.

                                                  30.6.00   30.6.99  31.12.99
                                                     SGDm      SGDm      SGDm
                                                                             
    Advances to customers (net)                    11,504    10,493    10,089
    Other assets                                   10,885    14,835    10,711
    Total assets                                   22,389    25,328    20,800
                                                                             
    Analysis of advances to customers                                        
    Mortgages                                       4,643     4,464     4,373
    Other consumer                                  1,439     1,596     1,566
    Trade finance                                     915       629       741
    Other                                           4,811     4,032     3,709
    Provisions                                      (304)     (228)     (300)
    Net advances to customers                      11,504    10,493    10,089
                                                                             
    Gross non-performing advances to customers        584       496       614
    Suspended interest                               (75)      (46)      (63)
    Specific provisions                             (229)     (182)     (237)
                                                      280       268       314
                                                                             
    Gross non-performing advances as a                                       
    percentage of gross advances to customers        4.9%      4.6%      5.9%


 20. Supplementary information on Malaysia

     The  information below is derived from the 1999 Half Year and 1999 Annual
     Report  of Standard Chartered Bank Malaysia Berhad which were filed  with
     Bank  Negara  Malaysia and from the 2000 Half Year Report which  will  be
     filed with Bank Negara Malaysia.

                                                 6 months  6 months  6 months
                                                    ended     ended     ended
                                                  30.6.00   30.6.99  31.12.99
                                                     MYRm      MYRm      MYRm
                                                                             
    Net revenue                                       478       448       452
    Total operating expenses                        (171)     (171)     (198)
    Profit before provisions                          307       277       254
    Provisions for bad and doubtful debts            (12)     (163)      (30)
    Profit before taxation                            295       114       224
                                                                             
                                                  30.6.00   30.6.99  31.12.99
                                                     MYRm      MYRm      MYRm
                                                                             
    Advances and financing (net)                   11,757    11,780    11,975
    Other assets                                    8,329     5,223     5,986
    Total assets                                   20,086    17,003    17,961
                                                                             
    Analysis of loans and advances and                                       
    financing
    Mortgages (excluding MYR796 million of                                   
    loans sold to Cagamas (30 June 1999: MYR888                              
    million; 31 December 1999: MYR834 million))     5,104     4,743     4,952
                                                                             
    Other consumer                                  1,104       885       995
    Trade finance                                   1,604     1,443     1,503
    Other                                           4,931     5,592     5,470
    Provisions                                      (986)     (883)     (945)
    Net advances to customers                      11,757    11,780    11,975
                                                                             
    Gross non-performing advances to customers      1,549     1,554     1,513
    Suspended interest                              (268)     (198)     (233)
    Specific provisions                             (498)     (471)     (492)
                                                      783       885       788
                                                                             
    Gross non-performing loans and advances as                               
    a percentage of gross loans and advances        11.4%     11.5%     11.0%


 Independent review report by KPMG Audit Plc to Standard Chartered PLC

Introduction

We have been instructed by the company to review the financial information set
out  on pages 11 to 28 and we have read the other information contained in the
press release and considered whether it contains any apparent misstatements or
material inconsistencies with the financial information.

Directors  responsibilities

The  press release, including the financial information contained therein,  is
the  responsibility of, and has been approved by, the directors.  The  Listing
Rules of the Financial Services Authority 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.  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 2000.

KPMG Audit Plc
Chartered Accountants                             2 August 2000


The  financial information included herein has been derived from  the  audited
and unaudited information contained in the Group s Report and Accounts for the
year  ended 31 December 1999.  Statutory accounts for 1999 have been delivered
to  the Registrar of Companies.  The auditors have reported on these accounts;
their  report  was unqualified and did not contain a statement  under  Section
237(2) (accounting records or returns inadequate or accounts not agreeing with
records  and  returns) or 237(3) (failure to obtain necessary information  and
explanation) of the Companies Act 1985.

Copies  of  this  statement  are available from Investor  Relations,  Standard
Chartered PLC, 1 Aldermanbury Square, London, EC2V 7SB or from our website  on
www.standardchartered.com.

For further information please contact:

Pamela McGann, Group Head of External Affairs
on [phone]; or

Tim Halford, Director of Corporate Affairs
on [phone]; or

Stephen Seagrove, Group Investor Relations Manager
on [phone]