Standard Chartered releases 2003 interim results

Pre-tax profits of USD741 million on revenues of USD2,347 million showed a strong growth in both consumer and wholesale banking businesses. Compared with the same period last year, the Group's net revenues rose 3 per cent, with pre-tax profits rising 17 per cent, while costs were firmly controlled at USD1,292 million.

Mervyn Davies, Group Chief Executive Officer, highlighted the strong performance of the Middle East and South Asia region during his presentation of the results. In the first half of 2003, the region contributed over 23 per cent to the Group's pre-tax profits, on revenues of USD271 million.

In noting the established importance of the region to Standard Chartered, Mervyn Davies stated, "The MESA region is now a significant part of our Group and has huge potential. In the last six months revenues were up 12 per cent and profit before tax up 17 per cent over the equivalent period last year.

"Our MESA business will continue to grow. It is a priority area for us."

David Edwards, Regional General Manager for Standard Chartered in the Middle East and South Asia, noted: "The growth of the Middle East and South Asia business is a clear validation of our commitment to these markets. We have continued our investment in our markets, and our partnership with our customers is reflected in our growing businesses."

The Bank has recently renovated banking halls across the region with the advent of its refreshed brand at the beginning of the year. The first revitalising of the brand in the Bank's 150-year history, the new look is younger and more vibrant, and reflects the Bank's confident view of its future.

Commenting on future plans, Mr. Edwards confirmed, "The Bank is dedicated to continuing to grow our business here. We have a strong portfolio of both consumer and corporate banking products in all our markets, and are leaders in many market segments across the region. We will continue to build on these, and to provide the best quality of service and product to our customers."

The Bank announced in late June that it has applied for a banking licence in Afghanistan. It has also appointed a senior member of the Bank as general manager for Iraq. Initially based in Dubai, Stuart Horsewood will be exploring opportunities where the Bank can contribute to the rebuilding efforts in Iraq.

"With our expertise and extensive network, Standard Chartered is uniquely placed to help provide assistance for ensuring efficient flow of donor and aid funding and for progressing rebuilding efforts in Afghanistan and Iraq," noted Mr. Edwards, "We are probably one of the best-qualified banks to meet these needs and we are excited by the opportunity to play a role in these rehabilitation processes."

Headquartered in London and listed on the FTSE 100 in the United Kingdom and the Hang Seng Index in Hong Kong, the Bank has an unparalleled and unique franchise, including two of Asia's most promising large markets: China and India. In India, Standard Chartered expects to open 23 new branches in 2003, expanding its network to 81 branches and 156 ATM's in 25 of India's major cities.

Other highlights were the Bank's great revenue performance in Consumer Banking markets beyond its traditional base of Hong Kong, with growth in consumer assets outside Hong Kong of 15 per cent.

In the United Arab Emirates, Chief Executive Ray Ferguson added, "We are extremely proud of our team and our performance to date this year. Standard Chartered Bank UAE has a great portfolio of products and services that have been warmly received in the market. We provide a range of high quality retail banking products, including auto loans, personal loans, and credit cards, with competitive rates and benefits. On the wholesale banking side, we have leading cash management, treasury and trade finance products for our corporate clients.

"We continue to focus our priorities on partnering our customers to meet their financial needs."