Trading Statement

Standard Chartered PLC
25 June 2003

Pre-Close Trading Update

Standard Chartered PLC will be holding discussions with analysts ahead of its
close period for the half year ending 30 June 2003. This statement details the
information that will be covered in those discussions.

Overall

Standard Chartered has continued to make positive progress in the first few
months of 2003, notwithstanding the uncertainty of the global economies, the
impact of the Iraq war and the outbreak of SARS. Overall trading performance to
date has been robust. We are comfortable with the current consensus forecast for
the year.

Consumer Banking is achieving good revenue and earnings growth outside Hong
Kong, and we continue to make progress in addressing the challenges posed by the
personal bankruptcy situation in Hong Kong. Wholesale Banking is making
significant progress on our strategy of improving returns.

SARS has had some impact on Consumer Banking, primarily in Hong Kong, and to a
lesser extent in Singapore. Whilst SARS itself now seems under control, we
anticipate that the impact on the Hong Kong economy will probably lead to some
deterioration in the banking industry's overall consumer credit quality in Q2
and Q3.

Mervyn Davies, Group Chief Executive, commented, 'Although the trading
environment remains challenging, we are very pleased with the positive progress
in our financial performance. We will continue to be focused on delivering our
management agenda and sustaining investments in our strategic growth
opportunities.'

Revenue

Consumer Banking

Consumer Banking continues to deliver good revenue growth outside of Hong Kong;
most countries have seen revenue growth at high single digit or low double digit
levels, underpinned by strong asset growth. Markets like Malaysia, Thailand, and
UAE are performing particularly well. Our expansion plans in India are on track.

Revenues in Hong Kong have been affected by lower unsecured lending receivables,
a direct consequence of the actions we took in 2002 to contain the bankruptcy
problem. However, we have seen the benefit of these actions in the improvement
of debt charges.

Margins, on a product by product basis, have remained at broadly similar levels
as in 2002.

Wholesale Banking

Despite subdued asset demand and strong liquidity in Asia, Wholesale Banking is
achieving good revenue growth.

Major growth contributors are trade finance and global markets products. Within
global markets, strong increases in customer-driven business and in more
sophisticated products are more than offsetting the decline in asset and
liability management (ALM) revenue. We expect continued pressure on ALM revenues
in the second half of 2003 as the yield curve flattens.

We are achieving good growth in cash management balances, but volume gains are
being offset by reduction in interest margins.

Overall, Wholesale Banking is delivering positive operating jaws (the gap
between revenue and cost growth).

Costs

Costs continue to be a key focus as we work to improve the overall cost income
ratio towards our target of 50%. We continue to make good progress in
centralising, standardising and reengineering our back office activities. We
currently have over 2,500 staff working in our Shared Service Centres in Chennai
and Kuala Lumpur.

We are investing in our Consumer Banking business. These investments include
product innovation, expansions in distribution network and improvements in
infrastructure and customer service platforms.

Bad Debts

Consumer Banking

Consumer Banking net bad debts continue to perform according to our predictive
models, with net bad debts growing in line with the business.

First quarter debt charges related to Hong Kong bankruptcy (as announced earlier
at our AGM) were $48M, down from fourth quarter 2002's $64M. Our share of the
industry's charge-off is falling. However, SARS has already led to a rise in the
level of unemployment, which will have a negative impact on overall consumer
credit quality.

We anticipate that the credit bureau in Hong Kong will be operational before the
end of Q3. We see this as the basis of our ability to recommence good asset
growth.

Wholesale Banking

The Wholesale Banking book continues to perform very well. The actions we took
to improve the risk profile of the portfolio in 2002 are paying off. The general
strength of balance sheets of Asian corporates remains strong. We have seen no
other major changes in the shape of our portfolio.

Bryan Sanderson, Chairman, commented, 'The Group continues to make good progress
in a sometimes challenging environment. We are intent on building the track
record required to pursue our strategic objectives with confidence.'

For further information, please contact:

Ben Hung, Head of Investor Relations - (44) 207 280 7245

Paul Marriage, Head of Media Relations - (44) 207 280 7163

Betty Ku, Head of Investor Relations, Asia Pacific - (852) 2821 1310

Lavina Chan, Senior Corporate Affairs Manager - (852) 2820 3075

This document contains forward-looking statements, including such statements
within the meaning of Section 27A of the US Securities Act of 1993 and section
21E of the Securities Exchange Act of 1934. These statements concern or may
affect future matters. These may include Standard Chartered's future strategies,
business plans, and results and are based on the current expectations of the
directors of Standard Chartered. They are subject to a number of risks and
uncertainties that might cause actual results and outcomes to differ materially
from expectations outlined in these forward-looking statements. These factors
are not limited to regulatory developments but include stock markets, IT,
developments, competitive and general operating conditions.


                      This information is provided by RNS
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