SCB Yearend Results (1 of 3)

Standard Chartered PLC
21 February 2001


SCB Yearend Results (1 of 3)


Standard Chartered s results

-    Profit after provisions and before restructuring charge, of £811 million,
     up 60 per cent from £507 million.

-    Profit before taxation of £949 million, up 87 per cent from £507 million.

-    Net revenue of £2,698 million, up 13.5 per cent from £2,378 million;  up
     11.4 per cent excluding acquisitions and disposals.

-    Net fees and commissions receivable of £586 million, up 34 per cent from
     £438 million.

-    Cost growth, excluding acquisitions, disposals and restructuring charge,
     held under 10 per cent.

-    Net provisions of £310 million, down 37 per cent from £495 million.

-    Normalised earnings per share up 41 per cent to 46.9 pence.

-    Annual dividend per share 25.135 pence, up 10 per cent from 22.85 pence.


Commenting  on  these  results,  the  Chairman  of  Standard  Chartered   PLC,
Sir Patrick Gillam, said:

'Our roots are in the emerging markets and over the years we have demonstrated
our ability to manage in difficult conditions.  Many of these markets now have
potential for real growth unmatched by those of the developed world.  We  must
ensure  that we build on our knowledge and unique position by taking advantage
of  opportunities we identify.  The progress made in 2000 is evidence  of  our
commitment'.


STANDARD CHARTERED PLC
SUMMARY OF RESULTS FOR 2000
                                                             2000       1999
                                                               £m         £m
                                                                            
RESULTS                                                                     
                                                                            
Net revenue                                                 2,698      2,378
Provisions for bad and doubtful debts and contingent        (310)      (495)
liabilities
Operating profit after provisions and before                  811        507
restructuring
Restructuring charge                                        (213)          -
Profit on disposal of subsidiary undertakings                 351          -
Profit before taxation                                        949        507
Profit attributable to shareholders                           677        344
                                                                            
                                                                            
BALANCE SHEET                                                               
                                                                            
Total assets                                               68,599     54,132
Shareholders  funds                                         4,261      3,366
Capital resources                                           7,371      5,334
                                                                            
                                                                            
INFORMATION PER ORDINARY SHARE                              Pence      Pence
                                                                            
Normalised earnings per share                                46.9       33.2
Dividends per share                                        25.135      22.85
Net asset value per share                                   360.4      298.4
                                                                            
                                                                            
RATIOS                                                          %          %
                                                                            
Post-tax return on ordinary shareholders  funds -            14.1       12.0
normalised basis
                                                                            
Cost to income ratio - normalised basis                      56.9       57.0
                                                                            
Capital ratios:                                                             
  Tier 1 capital                                              7.0        8.6
  Total capital                                              14.1       14.8
                                                                            


Results on a normalised basis reflect the Group s results excluding profits on
disposal  of  subsidiary undertakings and the charges for  restructuring  (See
note 9).

CHAIRMAN S STATEMENT

The  past  year has been one of transformation.  We have made the two  largest
acquisitions  in  our  history; sold Chartered Trust  and  initiated  a  major
productivity programme.  These all position the Group well for further  growth
in the future.

2000 Results

Our  operating profit before the restructuring charge is £811 million compared
with £507 million in 1999.

Pre-tax  profit stands at £949 million after taking a restructuring charge  of
£213 million and realising a gain of £351 million on the disposal of Chartered
Trust.  This compares with a profit before tax of £507 million in 1999.

Normalised earnings per share are 46.9 pence, an increase of 41 per cent.

Net  revenues  were  up 13 per cent at £2,698 million and up  11.4  per  cent,
excluding acquisitions and disposals.

The  increase  in  costs  was held to 9.6 per cent, before  the  restructuring
charge of £213 million and excluding the acquisitions and disposals.

Our  Tier One capital ratio stands at 7.0 per cent.  Although at the lower end
of  our  7-9  per  cent range, this reflects the high level of investment  and
growth during the year.

Even though there is still economic uncertainty in some of our markets we  are
recommending  a  final dividend of 17.71 pence per share  compared  with  16.1
pence  per  share last year.  This is an increase of 10 per cent and  reflects
our  greatly  improved performance in 2000, our confidence in our  ability  to
continue to generate good returns and our desire to maintain investment in our
franchise.   This  gives a total dividend for the year  of  25.135  pence,  an
increase  of  10  per cent over 1999.  The proposed dividend  is  covered  2.4
times.

As approved at the AGM last May, we will in future be reporting in US Dollars.
Since  most of the Group s business is in US Dollars, or currencies linked  to
the  US Dollar, we believe this is the most appropriate currency for us to use
for our accounts.

The nominal value of the company s shares was changed from £0.25 to US$0.50 in
January  2001.   This  change does not alter the  number  of  shares  held  by
shareholders  and  the price is still quoted in Sterling on the  London  Stock
Exchange.   Dividends  will be paid in Sterling unless  shareholders  opt  for
payment in US Dollars or shares.

Group Strategy and the Economic Environment

Over the last three years we have pursued a growth strategy to emerge stronger
from the turmoil in Asia.

In  2000  we  made significant advances.  We acquired Grindlays from  ANZ  for
US$1.34  billion.   This  makes us the largest international  bank  in  India,
Pakistan, Bangladesh and Sri Lanka and greatly strengthens our position in the
Middle East.  We also acquired Chase Manhattan s consumer banking interests in
Hong  Kong  for US$1.32 billion, making us the largest credit card  issuer  in
Hong  Kong  with 25 per cent of the market.  We sold Chartered Trust,  our  UK
consumer finance and contract hire business, to Lloyds TSB for £627 million in
cash.   This  was  a good business but did not fit our focus on  the  emerging
markets.   Around  £1.5 billion was raised in the market during  the  year  to
support these acquisitions and the growth in our business.

These are all major strategic moves.

Although  there  is  still  some  economic  uncertainty  ahead,  the  economic
prospects for most of our Asian markets in 2001 are generally good with growth
forecast to be well ahead of most OECD countries.

Inevitably, there would be some effect from a US slowdown, but our markets are
diverse  and  would  not  be affected in a uniform way.   In  fact,  lower  US
interest rates will directly benefit Hong Kong and those markets with  a  link
to  the  dollar.   In  other markets, like India, there is  a  large  domestic
economy  which  means  it  is largely insulated from the  impact  of  external
economic factors.  It is also important to remember that the United States  is
not  the only export location of significance to Asia.  Trade with Europe  and
within  the region is also important and would offset the effect of US  growth
slowing to around two or three per cent.

Overall,  the signs are positive, although we are not expecting  the  pace  of
economic growth in our Asian markets to be comparable to the levels prevailing
before the crisis of the late 1990s.

Our  roots are in the emerging markets and over the years we have demonstrated
our ability to manage in difficult conditions.  Many of these markets now have
potential for real growth unmatched by those of the developed world.  We  must
ensure  that we build on our knowledge and unique position by taking advantage
of  opportunities we identify.  The progress made in 2000 is evidence  of  our
commitment.

Sir Patrick Gillam            
Chairman                                                    21 February 2001


GROUP CHIEF EXECUTIVE S REVIEW

Over  the past year we have transformed the shape of our business and  created
exciting opportunities for growth.  We have gained market share and in several
countries and a number of product areas we now hold a leading position for the
first time.  The rebranding has been completed and we are on course to achieve
the synergies we projected at the time of the acquisitions.

We  acquired  Grindlays in the Middle East and South Asia and  the  associated
private banking business and Chase s Consumer Banking operations in Hong Kong.
These are the two largest deals in Standard Chartered s history.

We  have  integrated UBS and the Nakornthon integration is on track.  We  have
also commenced a major re-engineering of our business.

It  has been a very significant year for the Group.  Our progress demonstrates
that we have the management team to successfully build and grow our businesses
in the emerging markets.

2000 Results

At  the beginning of last year we set out our financial objectives.  They were
to accelerate revenue growth; to ensure cost growth was less than ten per cent
in  the  year and would not exceed revenue growth; and for bad debts to abate.
We have delivered against all these objectives.

Excluding  the effect of acquisitions and disposals, we grew revenue  by  11.4
per  cent.   Including acquisitions and disposals, the increase was  13.5  per
cent.

Costs   in   our  underlying  business,  including  amortisation  of  goodwill
associated with the underlying business, grew by 9.6 per cent.  This is within
our  target  range.  Much of this represents investment in our  future  growth
through new products, systems and markets.

Bad debts showed a significant decrease, particularly in Asia.

As  a  result,  operating profit after provisions and before the restructuring
charge  was up 60 per cent at £811 million.  After a restructuring  charge  of
£213 million and a profit on the sale of Chartered Trust of £351 million, pre-
tax profit for the year stood at £949 million, an increase of 87 per cent.

Total assets grew to £69 billion from £54 billion reflecting the impact of our
acquisitions and organic growth.

Business Performance

In  Consumer  Banking  we  increased revenues by  19  per  cent.   Hong  Kong,
Singapore  and Malaysia all performed well.  Both the Hong Kong and  Singapore
mortgage businesses suffered from competitive margin pressure.  However,  this
was  largely  offset  by strong growth in mortgage outstandings.  Overall  our
mortgage  portfolio  in Hong Kong grew as we wrote 18  per  cent  of  all  new
mortgage business.

In  line  with our strategy, we have diversified our Consumer Banking revenues
with  strong  growth  in  cards,  wealth  management  and  deposits.   In  the
underlying card business outstandings are up some 40 per cent.  It  is  now  a
bigger  generator  of  revenues than the mortgage business.   Market  research
showed  that  personal loans could represent an even greater  opportunity  for
generating  revenues than cards.  We therefore launched packaged  products  in
Singapore,  Indonesia  and Thailand with good results.  With  an  increasingly
affluent  customer  base in many of our markets, we believe wealth  management
has  great  potential.  We have already established ourselves as  the  leading
independent  distributor of third party unit trusts in Asia.  Our  positioning
as  an  independent  distributor is proving to be  a  significant  competitive
advantage, giving us the chance to cross-sell insurance, foreign exchange  and
other products.

In  Wholesale  Banking,  which now includes our corporate  and  institutional,
treasury and debt capital market activities, we achieved 8 per cent growth  in
trade and lending with strong development in structured trade products.  Trade
fees  grew 13 per cent.  Our cash management business had a great year  as  we
continued  to win mandates from large customers.  This drove both  liabilities
and  fee  income.   An  increase in stock market  activity  and  new  customer
acquisition  also  led  to a strong performance from custody,  which  saw  the
benefit of market share gains during the Asian crisis.

Global  markets  now  comprises treasury and debt capital  market  activities.
Treasury revenues were affected by the lack of volatility in Asian currencies,
but  were  held at last year s levels as we attracted a number  of  major  new
customers  and increased the level of customer transactions.  Our syndications
team  had  an  excellent year and we were actively involved in developing  the
Asian  fixed  income market.  We have won a large number of mandates  and  now
have  top  ranking  positions in India, Thailand and  Singapore.   In  network
banking, a focus of our growth strategy, revenues grew by 20 per cent.

In a year when we were faced with tough competition in some of our markets and
political  upheaval  in  others, we have made great  progress  in  building  a
broader,  more  sustainable revenue base.  In 1998 we were dependent  on  Hong
Kong  mortgages and foreign exchange for 21 per cent of total revenues.  These
are  both  profitable  products with very attractive  returns  but  Hong  Kong
mortgages were affected by competitive pressures and foreign exchange  profits
by  the  absence  of  volatility.  By growing income from other  products  our
dependence  on these two products has been greatly reduced.  They now  account
for only 14 per cent of annualised revenues.

Geographical Performance

Overall  Hong  Kong  had an excellent year, bolstered  by  a  strong  Consumer
Banking performance.  In Singapore the fall in mortgage revenues was offset by
good performance in cards, deposits and unit trusts.  The good profit increase
in  Malaysia  was largely due to lower bad debts and an increase  in  Treasury
revenues.   In Taiwan revenues were up nearly 50 per cent and in Thailand  and
Korea revenues also increased strongly.

India witnessed a transformation in profitability and the United Arab Emirates
contributed  profits of over £50 million for the first time.   Bangladesh  and
Bahrain  also performed well.  India, the Middle East and South Asia  are  now
significant contributors to profits.

Taking into account the difficult economic and political conditions in some of
our  markets in Africa, such as Zimbabwe and Ghana, the profit of £70  million
reported  by that region reflects the resilience of our business.  Kenya,  the
Gambia, Tanzania, Uganda and Zambia all performed well.

A Year of Transformation

In  1998,  we announced a strategy to emerge stronger from the Asian  turmoil.
Our  growth strategy was focused on defending and growing our position in  our
main  markets  of  Hong  Kong, Singapore and Malaysia;  developing  new  major
markets;  building  on  the strength of our non Asia Pacific  businesses;  and
strengthening our network business.  At the same time we launched a  'Fit  for
Growth'  programme to drive major improvements in our productivity  and  build
operational  capacity.  Everything we have done since is  entirely  consistent
with  this strategy, and we have delivered on each element.  By being fast  on
our  feet and by using our great knowledge of the markets in which we operate,
we have been able to take advantage of some major opportunities.

Growing Core Markets

We  have shown significant growth in our core markets and increased our market
share.  We have maintained an emphasis on Hong Kong, which is by far the  most
important  consumer  market.  The acquisition  of  Chase  s  consumer  banking
business  in Hong Kong transformed our market position, making us the  leading
credit card company in Hong Kong, well above our nearest competitor.

Building New Major Markets

With the acquisition of Grindlays, India is a new major country for us.

In  1999 we acquired management control and 75 per cent of Nakornthon Bank  in
Thailand.   This  year  we have undertaken a major rebranding  project  and  a
restructuring programme, which included a voluntary redundancy scheme.  We are
delighted with the progress being made.

We are also seeing strong growth in our consumer banking business in Taiwan.

Building On The Strength of Non Asia Pacific Businesses

The Grindlays deal has propelled us into a different league in the Middle East
and South Asia.  We are now the leading international bank in India, Pakistan,
Bangladesh and Sri Lanka, and a strong number two in the United Arab Emirates.
Rebranding  has  been  completed, the integration  is  on  track  and  we  are
confident of achieving the expected synergies.

Despite  a difficult economic and political environment, we have continued  to
develop  our  business in Africa.  We expanded into Nigeria  and,  in  January
2001, opened in the Ivory Coast.

Growing Network Business

The  UBS  acquisition,  which  we completed  in  1999,  is  already  making  a
contribution to profits and has significantly strengthened our trade  finance,
cash  management and foreign exchange business, particularly in Latin America.
We continue to be the leading foreign US Dollar clearer in New York.

At  the  start  of  the  year we acquired a structured  trade  export  finance
portfolio  from  Canadian Imperial Bank of Commerce.   This  strengthened  our
structured trade finance capability, and complemented our core trade business.
It  has  made  us a leading player in the export finance market  and  we  have
already  led several landmark transactions.  These include the arrangement  of
the Sementes Maggi US$70 million pre-export financing for their Brazilian soya
crop, which won a 'Deal of the Year' award from Trade Finance magazine.

Over  the  past  year,  we  have  renewed our focus  on  major  corporate  and
institutional  customers where we can cross-sell a number of products,  across
many  countries.  The results have been very successful with  a  20  per  cent
increase in revenues from this customer base.

The past year has been one of real transformation for your company as we build
on our remarkable heritage and franchise.

e-Commerce

Last  year  I  told you that we were working on twenty e-commerce initiatives.
While we have been cautious about entering into partnerships and building  new
e-commerce  business  models, we have made real progress in  building  on-line
distribution  of  many  of  our products.  We have  launched  on-line  foreign
exchange  and are piloting on-line trade finance.  Internet banking  has  been
introduced  in Hong Kong and Singapore as well as e-mortgage, on-line  broking
and  portals for wealth management.  We also launched offshore banking on  the
internet.   We remain determined to be a leading provider of internet  banking
in the emerging markets and we are well positioned to achieve this aim.

Productivity Programme

At the half year we announced a restructuring charge and investment project to
support  a  major programme to reshape the business and significantly  improve
productivity  and  operational efficiency.  This is an integral  part  of  our
growth  strategy.   The focus of this programme is to give  us  a  competitive
advantage  in terms of product delivery, customer service and cost efficiency.
It  will maximise the benefits of our scale, reduce our cost-income ratio  and
give us an operational platform to support our future growth.

There are three elements to this programme - to centralise our processing  and
support functions into two global hubs which will be located in Chennai, South
India, and Kuala Lumpur, Malaysia; to drive efficiencies in our organisational
structure,  outsourcing where appropriate; and to deliver the  cost  synergies
from our acquisitions.  We have already made good progress.

The Year Ahead

Our  prime task in 2001 is to integrate the acquisitions of the past year  and
to  build  on  the growth we achieved last year.  We will continue  to  pursue
acquisition  opportunities which we believe will support our long term  growth
and benefit our shareholders.  Countries where there may be such opportunities
include  Taiwan  and  Korea,  where some business  streams  look  increasingly
attractive.

The leading position we now hold in several markets and product areas provides
us  with a broader and stronger base to leverage and expand our business.   As
the  world s leading emerging markets bank, the countries in which we  operate
offer great opportunities for growth as living standards improve and literally
millions  of people every year join our potential customer base.   We  have  a
strong and proven management team and in 2001 our aim is to continue to unlock
the  potential of this unique franchise to produce superior growth and returns
for our shareholders.

A more detailed review of our major businesses follows.

Rana Talwar                   
Group Chief Executive                                       21 February 2001


BUSINESS REVIEW

CONSUMER BANKING

Consumer  Banking  services  are  provided to  personal  customers  and  small
businesses in many African, Asian and Middle Eastern countries.  Major markets
include  Hong  Kong, India, Malaysia, Singapore, the United Arab Emirates  and
Zimbabwe.   Standard  Chartered Grindlays Private Banking supplies  trust  and
investment services to high net worth individuals.

New branches were opened in a number of countries and investment continued  in
the  upgrading  of  our branches throughout the network.  This  included,  for
example, an award winning new branch at Sugar Street in Hong Kong and what  is
believed to be the first ever drive-by ATM in Harare, Zimbabwe.

A  critical  element  of the Consumer Banking strategy  is  to  build  a  more
diversified  revenue base.  In 2000, great progress has been made in  building
new revenue streams.

Cards and Personal Loans

The number of cards issued by Standard Chartered is now nearly five million, a
significant  increase on the three million of a year ago.  Both the  Grindlays
acquisition  and,  more directly, the addition of the  Chase  Hong  Kong  card
portfolio,  including the Manhattan Card business, have been major factors  in
this  increase.   In Hong Kong the Group is now the leading card  issuer  with
around 25 per cent of the market.  Standard Chartered is also the leading card
issuer  in India, with over 1 million cards in issue, and in 2000 grew  market
share  in eight of the nine Asian markets in which it operates.  This business
continues to develop rapidly.  Outstanding card balances grew by some  40  per
cent excluding the impact of acquisitions, supporting revenue growth.

The  provision of packaged personal loan products is a new area of  focus  for
the  Group.  A range of new innovative packaged loan products was launched  in
Singapore,  Thailand  and Indonesia.  In Thailand alone over  10,000  personal
loans are being sold each month.

Mortgages and Banking Services

In  Hong  Kong the Group s mortgage volume growth continued to be very strong,
attracting  18  per cent of all new mortgage business in 2000.  Good  mortgage
growth  was  also recorded in Malaysia and Singapore.  Although  market  share
gains  were  achieved  there was a fall in revenues as  a  result  of  intense
pricing  competition,  particularly  in Hong  Kong  and  Singapore.   Returns,
however, remain attractive and this will continue to be a very important  part
of the business.

Wealth Management

A new focus on wealth management has been a hallmark of the development of the
Group   s  Consumer  Banking  business.   In  Asia,  Standard  Chartered   has
consolidated its position as the largest independent distributor and  supplier
of  third party investment funds.  The relationships with insurance companies,
Prudential  and  CGNU, continue to be developed, enabling a broader  range  of
products  to  be  provided to customers.  As part of the strategy  to  develop
retail  foreign  exchange,  on-line treasury  services  are  now  supplied  to
personal customers.

The  addition  of  Grindlays Private Banking to the Group s  Priority  Banking
operations establishes a broader product capability.  During the year offshore
internet banking services were launched.

Small Business Segment

Revenue  growth of 17 per cent was achieved from the provision of services  to
small  and medium sized companies in 2000.  These businesses and their  owners
represent  a  significant opportunity.  This is a natural  business  area  for
Standard Chartered in the larger markets in Asia.

e-Projects

Internet banking, 'Me Standard Chartered On-line', has been launched  in  Hong
Kong and Singapore, both in English and Chinese.  This provides customers with
personalised  on-line banking.  In Hong Kong, on-line securities  trading  was
also launched simultaneously with internet banking.  This gives customers  the
ability  to  trade  Hong Kong equities on-line, and access realtime  financial
news.

In   nearly  all  the  countries  in  which  the  Group  operates,  e-commerce
developments  are  taking  place.  In Malaysia,  Standard  Chartered  sponsors
'MeMyLife.com' a home and life products and services portal.

WHOLESALE BANKING

During  the  year the Group s commercial banking activities were  rationalised
into  a cohesive Wholesale Banking business.  This will provide customers with
a  more  efficient  and  effective level of service and  a  broader  range  of
products.

The focus of Wholesale Banking is to deliver the Group s products and services
to  customers through its emerging market network in Asia, Africa, the  Middle
East  and Latin America.  This is complemented by sales and support operations
in Europe, the United States and Australia.

Global Markets

The  range  of products has been extended.  A key area of development  is  the
Group  s  expertise and capabilities in the Asian debt capital  markets.   The
Group  exploited  the  growing fixed income market and  now  has  top  ranking
positions  in  India, Thailand and Singapore, and a growing business  in  Hong
Kong  and Malaysia.  The Group s floating rate syndications business also  had
another strong year.

Although  a lack of volatility in Asian currencies depressed foreign  exchange
trading  business, strong growth was achieved in Treasury sales.  This  augurs
well for the future.

Trade and Lending

In  the  year, there was renewed emphasis on broadening the range of  products
offered to customers.  Following the successful acquisitions of the UBS  trade
finance  business and the CIBC portfolio the Group now has a leading  position
in structured trade finance.

Cash Management and Custody

Both had an excellent year with improved revenues and increased market shares.
In  cash  management the business of leading multinationals  continued  to  be
attracted.   As  a  result  good  growth in customer  balances  and  fees  was
achieved.   Investment continues to be made in developing the next  generation
of cross border cash management products.

Over the past few years around £20 million has been invested in establishing a
world  class custody system in fifteen Asian markets.  This positions Standard
Chartered  at  the forefront of technology in Asian custody and  clearing  and
provides  clients with customised solutions using a uniform processing  system
across  the Group s Asian network.  The custody business is seeing the results
of the market share gains which it achieved during the Asian turmoil.

Revenues  from currency clearing dramatically increased during the  year,  and
the  Group s position was consolidated as a leading US Dollar clearer  in  New
York.

Standard  Chartered s capabilities have been recognised with numerous customer
and magazine awards during the year.

e-Projects

A  number  of internet delivery channels have been launched in corporate  cash
management  and  custody.   These include payments  initiation  and  reporting
capability over the internet, and a special secured internet messaging channel
for  Custody clients.  A service to provide trade finance services on-line  is
also being piloted.

On-line  Treasury  was  launched  in Hong  Kong,  having  been  introduced  in
Singapore  in 1999.  Around 15 - 20 per cent of all trades are now  transacted
on-line  in these markets.  Standard Chartered has also joined the Atriax  on-
line  foreign exchange marketplace which will deliver a highly liquid and open
marketplace for all wholesale foreign exchange professionals.  The aim  is  to
offer  the  best  pricing, transparency and liquidity in the widest  range  of
currencies available anywhere.

PRODUCTIVITY PROGRAMME

The  purpose of this programme, which was announced in August, is  to  improve
productivity  and to build an operational platform to support  future  growth.
It  is  an  integral  part of the Group s growth strategy.   There  are  three
elements to this programme.

First,  operational and support functions around the Group will be centralised
into  two global hubs, in Chennai and Kuala Lumpur.  These locations  offer  a
competitive cost structure, as well as good technological infrastructure.

Second,  a major review has been undertaken of all our businesses to look  for
efficiency  improvements.  As a result, a number of  opportunities  have  been
identified  and voluntary redundancy schemes implemented in most markets.   As
part  of this review, two of our three businesses have been combined to create
a  new  Wholesale  Banking  division.  Through  outsourcing,  there  are  also
efficiencies to be gained in technology.

Third, following the acquisition of Grindlays and Chase Hong Kong, there is  a
substantial  overlap in terms of headcount, premises and  IT  support.   Major
savings  can  be achieved from integrating these businesses into our  existing
operations and this is on track with expectations.

In  all there are 14 separate projects under the centralisation programme  and
another 11 initiatives which are driving other operational efficiencies.

Intranet  technology and e-procurement will be used to drive cost  savings  in
human resources and other support functions.

This  programme will reduce the Group s cost-income ratio and support  revenue
growth opportunities.

Table 1:  Productivity Drive

                            Headcount         Headcount   2000 Restructuring
                            Reduction          Addition          Charge (£m)
Centralising of                                                             
processing and                  2,000             1,000                   68
support operations

Operational                     2,100                 -                   74
efficiencies

Integration of                                                              
acquisitions                    2,100                 -                   71
(including Chase
Hong Kong)

TOTAL                           6,200             1,000                  213

The  overall impact of this productivity programme will be to reduce headcount
by 6,200 by end 2003.  This equates to around 20 per cent of the workforce.  A
reduction of 2,000 has already been achieved.  Around 1,000 new staff will  be
added at the global hubs in India and Malaysia.

Significant  cost synergies will arise from each category of the  productivity
programme.

Table 2:  Productivity Drive - Cost Synergies

£ million                       2001         2002         2003          2004
Centralising of                                                             
processing and support            20           45           65            65
operations

Operational                       20           45           55            55
efficiencies

Integration of                    35           60           72            72
acquisitions

TOTAL                             75          150          192           192

Investment Spend               (117)         (92)         (81)             -
Net Cost Benefit                (42)           58          111           192

Note.      These  numbers include costs relating to the integration  of  Chase
Hong Kong.

Over  the  next three years, there will be significant investment in upgrading
systems  and  platforms  to provide a flexible operating  platform  which  can
support the Group s growth.

This investment spend will be managed within the Group s normal cost line.  In
2001  it is expected that total cost growth, excluding goodwill and the impact
of any future acquisitions, will be managed within the growth in revenues.

OPERATING AND FINANCIAL REVIEW

Summary of performance in 2000

The  Group  s profit before taxation for the year ended 31 December  2000  was
£949 million, compared with £507 million in 1999.  This included a gain on the
disposal  of  the  Chartered Trust business of £351 million and  restructuring
costs  of  £213  million. The profit after provisions and before restructuring
was £811 million, an increase of 60 per cent compared to 1999.

During the year the Group s business was reshaped:
-    Grindlays was acquired on 1 August 2000
-    The Chase Hong Kong consumer banking business was acquired on 1 November
     2000
-    Chartered Trust was sold on 31 August 2000
To  assist  an  understanding of performance this review also provides  growth
rates  for  the  Group s 'underlying business' defined as the Group  excluding
Chartered Trust, the acquisitions and the restructuring charge.

Net  revenue  grew  strongly to £2,698 million up 13.5  per  cent  over  1999.
Revenue  from the underlying business grew by 11.4 per cent. The  increase  in
total  net interest income of 9 per cent from £1,636 million to £1,787 million
follows  a 19 per cent increase in average interest earning assets from  £48.0
billion  to £57.1 billion. The overall net interest margin narrowed  from  3.4
per  cent in 1999 to 3.1 per cent in 2000. Margins have fallen across most  of
the  Asian  territories  and have been particularly affected  by  pressure  on
mortgage  pricing.  The  reshaping  of the Group  has  also  diluted  margins.
Interest  spread  reduced from 2.8 per cent in1999 to 2.5 per  cent  in  2000.
Strong performances in Cards, Wealth Management, Trade and Custody led to a 17
per  cent growth in the underlying business non funded income; overall  growth
was 23 per cent.

At  the beginning of the year the Group said that cost growth would be no more
than  the  growth  in  revenue  and this has been  achieved.  Total  operating
expenses  at  £1,790 million  included  £213 million  of  restructuring  costs
associated   with   the    Group s  productivity  programme.  The increase  in
underlying business costs was 9.6 per cent.

The Group announced in August that it had embarked on a productivity programme
involving   significant  restructuring  and  transformation   of   operational
processes  to improve efficiency and operational capacity. The total  cost  of
the  investment programme over three years will be £290 million.  In addition,
£213 million has been taken in 2000 as a restructuring charge.
The  programme  involves centralisation of operational and  support  platforms
covering both businesses and countries; simplification of the organisation and
identification   of   outsourcing  efficiencies;  and   integration   of   the
acquisitions. The overall impact of the programme will be to reduce  headcount
by over 6,200 and to achieve ongoing cost synergies of £192 million by the end
of 2003.

As  expected,  there was a significant decline in bad debts,  particularly  in
Asia.  Net  provisions for bad and doubtful debts and contingents in  2000  of
£310  million  was £185 million lower than the £495 million  in  the  previous
year.  In  Consumer Banking net provisions for bad debts fell by £20  million.
The  net  charge in Wholesale Banking fell from £354 million in 1999  to  £189
million in 2000.  This charge was after recoveries of £95 million compared  to
£70  million  in  1999.  At the end of 2000 total non-performing  loans  after
provisions  and  suspended  interest amounted to £1,264  million  compared  to
£1,526  million in 1999.  This included £477 million (1999: £533  million)  of
net  non-performing loans in Standard Chartered Nakornthon Bank  (SCNB)  which
are  subject  to  a  guarantee  and  loss sharing  arrangement  under  a  Loan
Management Agreement with the Financial Institutions Development Fund, a  Thai
Government  agency.   The  provisions cover ratio on the  non-performing  loan
portfolio, excluding SCNB, was 55 per cent compared to 54 per cent in 1999.

The  balance sheet grew by 27 per cent to £68.6 billion of which 11  per  cent
came  from  the acquisitions. The Group raised £0.7 billion of Tier 1  capital
and  £0.8 billion of Tier 2 capital during 2000 which was used to finance  the
acquisitions and fund underlying growth. The Tier 1 ratio at the  end  of  the
year was 7.0 per cent.

Business performance

Consumer  Banking continues to be the major profit driver in  the  Group  with
revenues  up  from  £1,152 million to £1,366 million. Revenue  growth  in  the
underlying  business  was  20  per cent. Although underlying  mortgage  assets
increased  by  21 per cent, revenues declined by 5 per cent  as  a  result  of
intense  margin pressure, particularly in the Hong Kong market. The underlying
cards  business performed exceptionally well with outstandings up by  some  40
per  cent. The acquisitions greatly enhanced market share in cards and in Hong
Kong  the Group is now the leading card issuer with 25 per cent of the market.
The  total  number  of  cards in issue increased from 3 million  to  nearly  5
million.  Wealth Management is seen as a major driver of growth in the  future
and  there  was strong progress in developing this business in 2000.  Revenues
were  up  by over 50 per cent, driven by wider deposits margins and growth  in
distribution of mutual funds.

Operating  expenses  in Consumer Banking increased by 21 per  cent  from  £612
million  to  £741 million in 2000.  This was predominantly in  the  underlying
business  and  reflected the significant investment  that  has  been  made  in
upgrading  the  branch  network,  growing the  cards  business  and  marketing
initiatives  during  the period. The net provisions  for  bad  debts  at  £121
million was £20 million lower than 1999, partly as a result of the disposal of
Chartered Trust. Delinquency ratios in the Group s major markets remain low in
comparison to market averages. Operating profit increased by 26 per cent  from
£399 million in 1999 to £504 million in 2000.

Corporate  and  Institutional Banking has been merged with  Treasury  to  form
Wholesale  Banking to provide greater operational efficiency  and  to  improve
cross-selling of products.  Revenues from the combined business increased by 9
per  cent  from £1,226 million to £1,332 million. Half of this  arose  in  the
underlying business. Trade and Lending performed well during the year and  the
product range has been enhanced, particularly the structured trade capability.
Trade  and Lending revenue grew by 8 per cent to £560 million. Dealing profits
and  exchange  in  the underlying business fell marginally  in  1999  to  £241
million  in  2000.  Lack  of volatility and lower spreads  continued  to  make
foreign  exchange  trading  difficult  in  the  period.  This  was  offset  by
successful growth in revenue generated from foreign exchange sales commissions
received from customers. Cash Management revenues grew by 32 per cent  through
increased  balances  and  wider margins. Custody had  an  improved  year  with
revenue  up  by 37 per cent as stock market activity increased in  South  East
Asia.

Operating  expenses in Wholesale Banking increased by 13 per  cent  from  £682
million  to £774 million of which 8 per cent was in the underlying businesses.
The Group has invested in developing regional cash management services and  an
on-line  trade  finance capability. The net provision for bad  debts  of  £189
million was nearly 50 per cent lower than 1999.  New provisions in North  East
Asia  fell substantially. Overall recoveries increased by £25 million  to  £95
million as a number of Asian economies continued to recover. Operating  profit
almost doubled from £190 million in 1999 to £369 million in 2000.

Geographical performance

Hong  Kong s profit before taxation was £341 million, 74 per cent above  1999.
Total revenue grew by 14 per cent of which 12 per cent was from the underlying
business.  Net interest income grew by 13 per cent to £598 million  driven  by
the  credit card business.  Average Prime/HIBOR spreads widened from  2.9  per
cent  to  3.2 per cent but the overall net interest margin fell from  3.0  per
cent  in 1999 to 2.9 per cent in 2000.  This was largely a consequence of  the
intense price pressure on the mortgage book. The effect of falling margins has
been offset by 16 per cent growth in average outstandings, of which 1 per cent
arose  from  the Chase Hong Kong consumer banking acquisition. Growth  in  non
funded income was encouraging with a 19 per cent increase over 1999. Cards and
unit  trust  distribution were the main contributors to this  growth.  Overall
costs  increased by 16 per cent with underlying business cost at 11 per  cent.
The  net provisions for bad debts fell significantly from £178 million to  £83
million as the quality of the portfolio in Hong Kong improved as expected. New
provisions were down 43 per cent and recoveries up 90 per cent.

Profit  before taxation in Other Asia Pacific countries was £245  million,  70
per  cent  higher than in 1999. Revenues grew by 12 per cent to  £802  million
with good growth in Taiwan, Korea and the benefit of SCNB in Thailand for  the
full  year.  Costs increased by £107 million to £488 million.  The  full  year
effect  of  SCNB, together with a voluntary redundancy programme in  Thailand,
and  business  expansion in Taiwan and Korea have been the main cost  drivers.
The fall in net provisions for bad debts fell from £188 million to £69 million
clearly demonstrated the generally improved economic situation in Asia.

The Middle East and South Asia had an exceptional year and the acquisition  of
Grindlays was an excellent strategic fit with the existing expanding business.
It has transformed the shape and scale of the operations in the region. Profit
before  taxation  was  £152  million compared to  £11  million  in  1999.  The
underlying  results in India, the United Arab Emirates, Bahrain and Bangladesh
were all very strong with good growth in all areas of the business.

It  was  a difficult year in Africa as the economies in the Group s two larger
markets,  Ghana  and  Zimbabwe  suffered severe  problems  and  profit  before
taxation  was  down  by 33 per cent from £105 million  to  £70  million.   Net
revenue  grew  by 4 per cent. Strong volume growth and increased  dealing  and
foreign  exchange  revenues has been offset by the devaluation  of  currencies
against  sterling. Operating expenses rose by 15 per cent reflecting the  high
inflationary  pressures  in most territories and expansion  into  Nigeria  and
Ivory Coast. The economic difficulties in the largest markets have resulted in
an increase of £27 million in provisions for bad debts.

Since  the sale of Chartered Trust the Group s business in the United  Kingdom
is  now,  like  the  Americas, primarily focused on supporting  the  needs  of
multinational  corporates  and institutions in the  emerging  markets.  It  is
therefore  more appropriate to report the results of these two  regions  as  a
single  segment.  Profit  before  taxation was  £141  million.  This  included
restructuring costs of £213 million and a gain on the sale of Chartered  Trust
of  £351  million.  Net revenues at £484 million were 7 per cent  lower  as  a
result of the sale of Chartered Trust; underlying business revenues were flat.
Revenue  from dealing profits and foreign exchange decreased by 9 per cent  as
spreads  reduced  and volumes continued to fall. Operating expenses  excluding
restructuring, Year 2000 costs and amortisation of goodwill were flat. The net
provision  for debts at £86 million was 62 per cent higher than  in  1999  and
reflects  continuing  difficulties in the Latin  American  economies  and  the
impact of the downturn in the United States on these economies. This, combined
with  lower  recoveries in the United States, led to the overall  higher  debt
charge.

Summary

The  shape  of the Group has been transformed through growth in the underlying
business   and  through  the  acquisitions.   Integration  of  these  acquired
businesses  is  progressing  well.   Bold  steps  are  being  been  taken   to
restructure  the  Group  s operations to give future  cost  benefits  and  the
operational flexibility to support growth opportunities. The results in the 12
months to 31 December 2000 with revenue growth of 13 per cent demonstrate that
the Group is on track to deliver its growth strategy.



STANDARD CHARTERED PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the year ended 31 December 2000
                                                                        2000
                                                                            
                                        Continuing operations   Discontinued
                                     Underlying  Acquisitions     operations
                             Notes           £m            £m             £m
                                                                            
Interest receivable                       4,099           237            219
Interest payable                        (2,522)         (149)           (97)
Net interest income                       1,577            88            122
Fees and commissions                        575            27           (16)
receivable, net
Dealing profits and            4            241             8              -
exchange
Other operating income         5             56             3             17
                                            872            38              1
Net revenue                               2,449           126            123
Administrative expenses:                                                    
  Staff                                   (801)          (74)           (40)
  Premises                                (181)          (12)            (6)
  Other                                   (406)          (57)           (17)
Depreciation and                          (164)          (21)           (11)
amortisation
                                                                            
Total expenses:  - ongoing              (1,391)         (115)           (71)
    - restructuring            3          (161)          (49)            (3)
Total operating expenses                (1,552)         (164)           (74)
Operating profit before                     897          (38)             49
provisions
Provisions for bad and       1,2,12       (270)          (11)           (24)
doubtful debts
Provisions for liabilities                                                  
and commitments                             (5)             -              -
Operating profit                            622          (49)             25
Profit on disposal of                                                       
subsidiary undertakings                     351             -              -
Profit before taxation        1,2           973          (49)             25
Taxation                       6          (231)           (8)           (10)
Profit after taxation                       742          (57)             15
Minority interests (equity)                                                 
Minority interests (non-                                                    
equity)
Profit for the period                                                       
attributable to
shareholders
Dividends on non-equity        7                                            
preference shares
Dividends on ordinary          8                                            
equity shares
Retained profit                                                             

                                                           2000         1999
                                                                            
                                                          Total        Total
                                          Notes              £m           £m
                                                                            
Interest receivable                                       4,555        3,730
Interest payable                                        (2,768)      (2,094)
Net interest income                                       1,787        1,636
Fees and commissions receivable, net                        586          438
Dealing profits and exchange                4               249          246
Other operating income                      5                76           58
                                                            911          742
Net revenue                                               2,698        2,378
Administrative expenses:                                                    
  Staff                                                   (915)        (713)
  Premises                                                (199)        (172)
  Other                                                   (480)        (374)
Depreciation and amortisation                             (196)        (117)
                                                                            
Total expenses:  - ongoing                              (1,577)      (1,376)
    - restructuring                         3             (213)            -
Total operating expenses                                (1,790)      (1,376)
Operating profit before provisions                          908        1,002
Provisions for bad and doubtful debts    1,2,12           (305)        (495)
Provisions for liabilities and                                              
commitments                                                 (5)            -
Operating profit                                            598          507
Profit on disposal of subsidiary                                            
undertakings                                                351            -
Profit before taxation                     1,2              949          507
Taxation                                    6             (249)        (149)
Profit after taxation                                       700          358
Minority interests (equity)                                 (4)         (14)
Minority interests (non-equity)                            (19)            -
Profit for the period attributable to                       677          344
shareholders
Dividends on non-equity preference          7              (16)         (16)
shares
Dividends on ordinary equity shares         8             (280)        (242)
Retained profit                                             381           86


Acquisitions:
Standard  Chartered  Grindlays  Bank and the  associated  Grindlays  Private
Banking business were acquired on 1 August 2000.  Manhattan Card Company and
Chase  Manhattan s retail banking business in Hong Kong were acquired  on  1
November 2000.  Metropolitan Bank of the Lebanon was acquired on 28 February
2000.

Discontinued operations:
The Group disposed of the Chartered Trust businesses on 31 August 2000.  The
1999 results of discontinued operations are shown on page 23.


STANDARD CHARTERED PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the year ended 31 December 1999
                                                                        1999
                                          Continuing  Discontinued          
                                          operations    operations     Total
                                                  £m            £m        £m
                                                                            
Interest receivable                            3,399           331     3,730
Interest payable                             (1,947)         (147)   (2,094)
Net interest income                            1,452           184     1,636
Fees and commissions receivable, net             467          (29)       438
Dealing profits and exchange                     246             -       246
Other operating income                            33            25        58
                                                 746           (4)       742
Net revenue                                    2,198           180     2,378
Administrative expenses:                                                    
  Staff                                        (655)          (58)     (713)
  Premises                                     (163)           (9)     (172)
  Other                                        (350)          (24)     (374)
Depreciation and amortisation                  (101)          (16)     (117)
Total operating expenses                     (1,269)         (107)   (1,376)
Operating profit before provisions               929            73     1,002
Provisions for bad and doubtful debts          (463)          (32)     (495)
Operating profit                                 466            41       507
Taxation                                       (134)          (15)     (149)
Profit after taxation                            332            26       358
Minority interests (equity)                                             (14)
Minority interests (non-equity)                                            -
Profit  for  the period attributable  to                                 344
shareholders
Dividends   on   non-equity   preference                                (16)
shares
Dividends on ordinary equity shares                                    (242)
Retained profit                                                           86


MORE TO FOLLOW