Trading Statement

Standard Chartered PLC
07 December 2005


Standard Chartered PLC

Pre-close trading update


7 December 2005


Standard Chartered PLC will be holding discussions with analysts ahead of its
close period for the full year ending 31 December 2005. This statement details
the information that will be covered in those discussions.


The full year results for 2005 will be presented in compliance with
International Financial Reporting Standards ('IFRS').  References to 2004 are
made in relation to the full year results under IFRS excluding one-off items
identified in our 2004 Annual Report (amounting to USD 85 million) and the
goodwill impairment charge under IFRS identified on 12 May (amounting to USD 67
million).  Operating profit before tax ('OPBT') for 2004 on this basis was USD
2,233 million (and including one-off items and goodwill impairment, it was USD
2,251 million).


The following sections will outline Standard Chartered's progress in 2005,
starting with a review of how Consumer Banking and Wholesale Banking have
performed on an underlying basis excluding SC First Bank (previously known as
Korea First Bank ('KFB')), followed by an update on SC First Bank's progress and
comments on other relevant areas.


All comments are made on a full year comparison basis unless otherwise stated.



1.      Introduction


Overview


Standard Chartered has continued to make progress into the second half of 2005
and we expect to deliver a strong performance for the full year. Based on our
performance to date, we are broadly in line with the OPBT consensus figure for
2005.


Overall, Standard Chartered continues to achieve strong growth in client income
in both businesses across multiple markets, client segments and products.


Underlying performance excluding SC First Bank


On an underlying basis excluding SC First Bank, income for the second half is
anticipated to be broadly in line with the first half. Net interest margins have
remained broadly stable.


Looking at the year as a whole, expense growth is expected to be broadly in line
with income growth, as indicated in guidance provided earlier.  We take a
dynamic approach to managing expense growth, pacing investments to reflect
income growth and the overall performance of the business.  We continue to
pursue multiple process redesign, restructuring and hubbing activities across
the Group to improve efficiency; and we are disciplined and focused in our
investments for future growth.


2. Consumer Banking (excluding SC First Bank)


Overall, organic income growth year on year in the Consumer Banking business
remains strong. Markets such as Malaysia, Other APR, MESA and Africa are
performing particularly well with double-digit income and asset growth.


The balance of income growth has changed as a result of the rising interest rate
environment. Whilst Wealth Management and SME are achieving excellent income
growth, Mortgage margins and volume growth have been affected by rising interest
rates in key markets.  We are achieving good growth in income and assets in
Cards and Loans. Following the acquisition of Prime Credit in 2004, we have
continued to make good progress with our Consumer Finance business.


In Hong Kong, though asset levels have remained broadly flat, we are seeing
encouraging signs of income growth.


Income in Singapore is slightly down due to continued margin pressures in the
mortgage business. We are changing the shape of the business and are seeing good
asset growth in SME.


India is also experiencing margin pressures, particularly in mortgages, but is
still benefiting from good levels of asset growth.  We consider India to be a
very attractive market in the medium term, and therefore, are continuing to
invest significantly in growing the business.  This will have a negative impact
on the near term profitability.


Other APR is seeing strong income growth particularly in markets such as
Thailand, China and Indonesia on a year on year basis.


In order to maximise the growth opportunities in our markets, we are
implementing a wide range of efficiency measures to create room for continued
investment in people, products and services.  In the second half, we have
expanded our branch network in countries such as China, Pakistan and Japan and
launched the Consumer Finance business in India.


The Consumer Banking loan impairment charge is increasing in line with overall
customer assets and asset mix, and also as a result of the changes required
under IAS 32 and 39.


We see continued deterioration in the unsecured market in Taiwan.  We identified
the issue at an early stage and have taken measures to manage our exposure.


3. Wholesale Banking (excluding SC First Bank)


On a year on year basis, Wholesale Banking continues to demonstrate good income
momentum delivering broad based growth in all our key client segments and across
multiple products and geographies.


Client driven income continues to perform strongly with Financial Institutions,
Global Corporates, and Local Corporates client segments showing high
double-digit growth.   Own account income is broadly flat on a year on year
basis, with the second half unlikely to match the first half.


Our investments in enhancing our Global Markets' capabilities have contributed
to strong growth in our Rates and FX and Corporate Finance businesses. Our Cash
Management business has benefited from the rising interest rate environment in
many of our markets.


Markets such as Hong Kong, Malaysia, Other APR, India and MESA are seeing high
double-digit income growth. The worsening economic situation in Zimbabwe has
impacted the performance of our business in Africa.


Whilst we continue to reengineer to improve efficiencies in Wholesale Banking,
we are investing to expand our client coverage and product capabilities,
especially in India and Greater China.


The quality of the Wholesale Banking loan book is good. Our robust risk
management practices enable us to continue to benefit from the benign credit
environment in our geographies and good success in recoveries.


4. SC First Bank


On 12 September, KFB began operating under its new name, 'SC First Bank'
following a country-wide rebranding exercise, which was completed within a
single weekend. All of SC First's 407 branches, 2,100 ATM machines,
approximately 16,000 web pages and countless documents, were rebranded during
this exercise.  On 28 November, we merged Standard Chartered Korea's branch into
SC First Bank.  Overall, integration is ahead of schedule.


As expected, the income run rate in the second half to date is broadly
comparable to the underlying run rate seen in the first two and a half months.
As highlighted at the 2005 Interims, we have been making significant investments
in rebranding, new products and services, alignment of processes and systems,
and training and recruitment of our people in the second half.


We are maintaining our leading position in the Korea mortgage market. We are
also making good progress with new product launches in Cards and Loans, Wealth
Management and SME Banking.


We are moving rapidly to build SC First Bank's Wholesale Banking capabilities.
We have established the largest dealing room in Korea and have built new sales
teams for specific client segments and products and have set up offshore Korean
sales desks in key locations.  Early indications of business momentum are
encouraging.


We are very pleased with the acquisition and the progress of the integration to
date.


5. Zimbabwe


The economic situation in Zimbabwe has continued to worsen, with the official
currency rate depreciating from 9,900 at June 2005 to 69,000 and with inflation
levels in excess of 400% at the end of November.


Our primary concern in Zimbabwe continues to be the well-being of our staff and
the protection of our franchise.



We took a further hyperinflation charge during the third quarter and, given the
extent to which the situation has deteriorated, we will recognise an impairment
charge, which has the consequence of negating our net exposure in Zimbabwe.



The total hyperinflation charge for the first three quarters of 2005 is
approximately USD 60 million. Based on the current situation, we anticipate that
the impairment charge will be of the order of USD 40 million. The impairment
charge will be normalised.



6. Other items



As outlined in the 2005 Interims, under IFRS, we reclassified £500 million debt
instruments to equity and £200 million of equity to debt. Whilst the Group is
economically hedged at the level of EPS and Return on Equity ('ROE'), this
re-classification has increased the volatility of reported income and OPBT, with
respect to movements in the USD/£ exchange rates.



7. Conclusion



In summary, the Group is performing well. Income momentum is robust, and we are
tightly managing expenses and risks. Our acquisitions are delivering; the
integration of SC First Bank is ahead of schedule. Overall, the Group's
businesses are well-balanced and are delivering broad based growth.


Bryan Sanderson, Chairman, commented,  ' Standard Chartered's performance
continues to be robust. We are making good progress towards our strategic 
goals.'



Mervyn Davies, Group Chief Executive, commented, ' We have good momentum in both
businesses. The integration of SC First Bank is progressing very well. We are
driving performance through client focus, geographic diversity and innovation in
products. '


The pre-close conference call, hosted by Peter Sands, Group Finance Director,
will be webcast live on the Standard Chartered's website by following this link
http://investors.standardchartered.com from 0930 GMT onwards. A recording of the
conference call will also be available shortly after the event.


For further information, please contact:


Romy Murray, Head of Investor Relations                 (44) 207 280 7245

Sean Farrell, Head of Media Relations
(44) 207 280 7163

Ruth Naderer, Head of Investor Relations, Asia Pacific  (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. Forward-looking statements can be identified by the fact
that they do not relate to historical or current events. Forward-looking
statements often use words such as anticipate, target, expect, estimate, intend,
plan, goal, believe, will, may, should, would, could or other words of similar
meaning. These statements 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, and general economic, competitive and general operating
conditions.


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