Pakistan

INTERNATIONAL BANK

SCB

STANDARD CHARTERED BANK (PAKISTAN) LIMITED - A LOCALLY EMBEDDED INTERNATIONAL BANK

OVERVIEW

Standard Chartered was formed in 1969 through a merger of two banks: The Standard Bank of British South Africa, founded in 1863, and the Chartered Bank of India, Australia and China, founded in 1853.

Both companies were keen to capitalize on the huge expansion of trade and to earn the handsome profits to be made from financing the movement of goods between Europe, Asia and Africa.

The Chartered bank was founded by James Wilson following the grant of a Royal Charter by Queen Victoria in 1853. Chartered opened its first branches in Mumbai (Bombay), Kolkata and Shanghai in 1858, followed by Hong Kong and Singapore in 1859.

The Standard Bank was founded in the Cape Province of South Africa in 1862 by John Paterson. It was a

commenced business in Port Elizabeth, in January 1863. It was prominent in financing the development of the diamond fields of Kimberley from 1867 and later extended its network further north to the new town of Johannesburg when gold was discovered there in 1885. It expanded in Southern, Central and Eastern Africa and, by 1953, had 600 offices. In 1965, it merged with the Bank of West Africa, expanding its operations into Cameroon, Gambia, Ghana, Nigeria and Sierra Leone.

From the early 1990s, Standard Chartered has focused on developing its strong franchises in Asia, Africa and the Middle East. It has concentrated on consumer, corporate and institutional banking and on the provision of treasury services - areas in which the Group had particular strength and expertise.

STANDARD CHARTERED BANK IN PAKISTAN:

YEAR OF SETUP

Standard Chartered is the largest international Bank in Pakistan. In Pakistan it established operations in Karachi in year 1863. In 2006 Standard Chartered Bank acquired Pakistan's Union Bank. On 30 December 2006, Standard Chartered merged Union Bank with its own subsidiary. After the acquisition of Union Bank the new entity Standard Chartered Bank (Pakistan) Limited was incorporated as a subsidiary of Standard Chartered PLC. Standard Chartered Bank (Pakistan), to create Pakistan's sixth largest bank.

NUMBER OF BRANCHES

The bank has a network of over 174* branches in 41 cities in Pakistan adding 154 branches and 33 cities over last four years. Standard Chartered employs a workforce of over 9,000 employees in its Pakistan operations. Standard Chartered Bank has a network of over 200 ATMs across Pakistan. Standard Chartered

has a network of over 1,600 branches and outlets and 5,500 ATMs in more than 70 countries and territories across the globe, making it one of the world's most international banks.

PERFORMANCE

As one of the world's most international banks, Standard Chartered employs 70,000 people, representing with 125 nationalities, worldwide. This diversity lies at the heart of the Bank's values and supports the Bank's growth as the world increasingly becomes one market.

With strong organic growth supported by strategic alliances and acquisitions and driven by its strengths in the balance and diversity of its business, products, geography and people, Standard Chartered is well positioned in the emerging trade corridors of Asia, Africa and the Middle East.

Standard Chartered derives over 90 per cent of profits from Asia, Africa and the Middle East. Serving both Consumer and Wholesale Banking customers worldwide, the Bank combines deep local knowledge with global capability to offer a wide range of innovative products and services as well as award-winning solutions.

Trusted across its network for its standard of governance and corporate responsibility, Standard Chartered takes a long term view of the consequences of its actions to ensure that the Bank builds a sustainable business through social inclusion, environmental protection and good governance.

Standard Chartered is also committed to all its stakeholders by living its values in its approach towards managing its people, exceeding expectations of its customers, making a difference in communities and working with regulators. Standard chartered bank is the first international bank to get an Islamic banking license and to open the first Islamic banking branch in Pakistan.

CREDIT RATING

Pakistan Credit Rating Agency (PACRA) has maintained the Bank’s long-term and short-term ratings “AAA” (Triple A) “A1+” (A One Plus) respectively in 2008. The Bank’s outstanding two listed, subordinated TFCs are also assigned “AAA” rating. These ratings denote the lowest expectation of credit risk emanating from an exceptionally strong capacity for timely payment of financial commitments.

GROUP BUSINESS

STANDARD CHARTERED PLC

CONSUMER BANKING

WHOLESALE BANKING

EXTERNAL AUDITORS

The audit committee has suggested the name of M/s KPMG Taseer Hadi & Company, Chartered Accountants as external auditors of the bank for the next term. The retiring auditors, being eligible, offer themselves for re-appointment till the conclusion of next Annual General Meeting.

Wholesale Banking

Headquartered in Singapore and London, with a delivery footprint that spans its network, Standard Chartered’s Wholesale Banking business provides corporate and institutional clients with trade finance, cash management, securities services, foreign exchange, risk management, capital raising and corporate finance solutions. The Wholesale Banking team is noted in the industry for its unmatched on-the-ground expertise, its relationship-focused approach to business and a solid track record of innovative, award- winning and client-centric solutions.

BUSINESS STRUCTURE

Origination and Client Coverage (client segments) 15,000+ employees25,000+ client relationships

Global Corporates I Local Corporates I Financial Institutions |Commodity Traders

Products (businesses) Performance highlights

4 product streams4 client segments

Key Business Advantages

Corporate Finance: Corporate Advisory, Equity Corporate Finance, Project and Export Finance, Structured Finance, Structured Trade Finance

Principal Finance: Corporate Private Equity, Infrastructure, Alternative Investments, Real Estate

Financial Markets: FX, Rates, Credit, Commodities, Equities, Fixed Income Trading and Sales, Capital Markets, Structured Products, Regional Markets, Asset and Liability Management

Transaction Banking: Cash Management, TradeFinance Services, Securities Services

2011Operating income

$10,846m

2011Operating profit

$5,216m

Focused business footprint – Asia, Africa, Middle EastUnwavering focus on depth of client relationships across the full range of product hierarchyStrong local bank franchise with pre-eminent cross border capabilityInternational product quality capabilityConsistency and longevity of presence in markets

Consumer Banking

Standard Chartered’s Consumer Banking business serves the needs of Personal, Premium, SME, Islamic and Private Banking customers, offering a full suite of innovative products and services to meet their borrowing, wealth management and transacting needs. A customer focused approach enables deeper understanding of customers’ evolving needs and the provision of customised financial solutions. ww w .standa r dcharte r ed.com/personal-banking

Business Structure Key Facts

Customer Segments Over 13 million customersPresence in 44 countries

Private Banking I SME Banking I Premium Banking IPersonal Banking I Consumer Finance | Islamic Banking

Customer Products Performance highlights

More than 1,500 retail branches30 online banking countries

6,000 ATMs

Consumer Transaction Banking: Employee Banking (payroll), current and savings accounts, debit cards, term deposits

Lending: Mortgages, personal loans, overdrafts, lines of credit, credit cards, auto loans

Wealth Management: Investment and treasury products

Bancassurance

Islamic Banking

SME Banking products: Business loans, trade finance, cash management and foreign exchange (FX)

2011Operating income

$6,791m

2011Operating profit

$1,650m

Key Business Advantages

Deep local knowledge with over150 years presence in key markets primarily in Asia, Africa and the Middle EastCustomer-focused approach enables solving customers’ different

Recognising and rewarding customers’ total banking relationship

products with need based product bundles and advantaged pricing

ORGANISATION STRUCTURE OF STANDARD CHARTERED BANK

ORGANIZATIONAL STRUCTURE

Auditors

M/s KPMG Taseer Hadi & Co

Chartered Accountants

Legal Advisors

Haidermota & Co

Barristers at law & Corporate Counsellors

ORGANOGRAM OF STANDARD CHARTERED BANK

Board of Directors

Mr. Shayne Nelson

(Chairman)

Mr. Badar Kazmi (Chief Executive

officer)

Mr. John Brian Small

Mr. Naimul Islam Chaudri

Mr. Andrew James Hardrace

Mr. Najam I Chaudri

Mr. Shahid Zaki

Mr. Parvez wGhias

Company Secretary

Mr. Rahim Panjwani

Audit Commitee of the board

Mr. Najam I Chaudry

(Chairman)

Mr. Shahid Zaki (Member)

Mr. Andrew James (Member)

PRODUCTS

PERSONAL BANKING ACCOUNTS &

DEPOSITS

Savings Accounts

Saving Account Supersave

Account High Yield

Account Easy Saver

Account Bonus Saver

Account Flex Account Mahana Izaafa

Current Accounts

Basic Banking Account

Rupee Current Account

Xtra Mile Account

Foreign Currency Accounts

Business Account

Sahulat Online Account

Corporate Salary Account

Rupee Term Deposits

Interest Rates Mahana

Amdani Certificates

Overdrafts Lockers

CREDIT & DEBIT CARDS

Credit Cards

Master Cashback Credit Cards

Saadiq VISA Credit Cards

MasterCard VISA Card Easy Credit Card American

Express Credit Cards

American Express Charge Card

PIA Co-branded Credit Card

Debit Cards

VISA Shopping Card Plus

Treasures Catalogue

PRIORITY BANKING

The Right Partner

Product Proposition

Visa Platinum Debit Card

Other Financial Services

Banking Convenience

Rewards and Privileges

Priority Center Locations

LOANS & MORTGAGES

Mortgages

Home Purchase Home Credit

Loans

Ready Cash Swift Finance

INSURANCE

For Branch Banking Customers

Secure Life Plan

Mustaqbil Taleem Rishtey

Tahaffuz Invest 'n' Assure Iqra Education Plan Family Care Cash Cover Plus

For Credit Card Customers

Smart Wallet Cover for Life Credit Cover Plus

INVESTMENTS

Mutual Funds Basics

Mutual Funds Offered

JS ABAMCO Limited

National Investments Trust Limited

Atlas Asset Management Limited

Arif Habib Investments Management Limited

BMA Asset Management Limited

KASB Asset Management Limited

ISLAMIC BANKING

Accounts & Deposits

Saadiq Current Account Saadiq Sahulat Online

Account Saadiq Saver Saadiq Term Account

Loans and Mortgages

Saadiq Home Financing

Credit & Debit Cards

Saadiq VISA Credit Cards Saadiq VISA Shopping Card

Modaraba

Modaraba

WHOLESALE BANKING

Transaction banking

Financial Markets

Corporate Finance

Principal Finance

SME BANKING

Business Accounts

Tijarat Classic Account

Tijarat Plus Account

Trade and Working Capital

Business Power

Cash Today

Loans

Business Installment Loan

Industry Specific Solutions

Kissan Card

Rang Hi Rang

Tana Bana

Pharma Line

Agri Deal

EXPLANATION OF CERTAIN IMPORTANT ACCOUNTS SAVING ACCOUNT:

Saving Account is the latest addition to Standard Chartered Bank Pakistan Limited’s ever increasing portfolio of products. This product combines a good rate of return, profit paid out on a six-monthly basis, and outstanding services offered by Standard Chartered Bank Pakistan Limited all-in-one.

Special Features

Exclusive benefits of a Saving Account: Profit tier rate 5% p.a APY Minimum average balance requirement is Rs. 100,000 Inter-branch transaction facility among 162 branches across Pakistan Customer Contact Center Profit calculated on a minimum balance basis

BASIC BANKING ACCOUNT

Enjoy an unmatched combination of high returns and liquidity. In addition, SCB nationwide network of ATMs offers customer 24-hour convenience in withdrawing your funds, ensuring that money works for them, as they would like it.

Special Features

Current account, mandatory introduced by State Bank of Pakistan Non-profit bearing Minimum Balance Required: None Account Statements: Issued on annual basis Account closure: If balance is Nil for 180 days Fees: Maximum 2 free deposits & 2 free withdrawals allowed per month. (Rs 100 will be charged

after second transaction)

RUPEE CURRENT ACCOUNTS

For all customer day to day transactions, open a Current Account which offer via 162 online branches and a reliable country wide ATM network. Get easy access to funds as well as enjoy the privileges of having a Rupee Current Account.

Special Features

Local Currency Transaction account Non-profit bearing Minimum Balance Required: PKR 5000 Features: Unlimited withdrawals and deposits Offerings: (1) Chequebook (2) VISA debit card for local currency accounts Following Self Service banking facilities provided at time of account opening: Internet Banking SMS Banking Phone Banking Services

XTRA MILE CURRENT ACCOUNT

An Ideal solution for people who want a Transactional Account with cash reward on fuel spend

Special Features

Minimum Monthly Average Balance Requirement PKR 15,000 Fuel Cash Back up to 30% Debit Card with no issuance fee Transactional convenience through the use of wide branch network and self service channels

BUSINESS ACCOUNT

Take customer business to soaring new heights with this account. Business Account provides efficient, accessible and convenient transactional capabilities of a world-class bank with highly competitive charges.

Avail of the best transactional convenience on Business Account:

Highly transaction current account aimed at rewarding the customer for their higher average balance maintained

Non-profit bearing Minimum Balance Required: Rs. 100,000 Features: Unlimited withdrawals and deposits Offerings: (1) Chequebook (2) VISA debit card for Local Currency accounts

STANDARD CHARTERED SAADIQ PAKISTAN

Standard Chartered Saadiq, was established as a dedicated Islamic Banking Division within Standard Chartered Bank (Pakistan) Limited with an aim to meet the unique needs of its customers

Standard Chartered Saadiq comprises a team of qualified professionals who design and structure Islamic financial solutions and ensure that they are in line with Shariah principles on Islamic banking and finance

At Standard Chartered it is realized that customers want products that are Shariah compliant, and by introducing these Islamic financial solutions, we are fulfilling our promise of being responsive to our customer needs. These products have been developed under the guidance of a dedicated Shariah Advisor

TIJARAT CLASSIC ACCOUNT

Tijarat Classic Account is a business account designed for small businesses with high number of transactions. Its low costs of transactions enable small businesses to conduct their transactions without worrying about the costs. With a minimum account balance of just Rs. 25,000/- avail free online banking facility up to a maximum of Rs. 1.5 Million a day, Tijarat Classic Account offers low cost, convenient and countrywide transaction capability.

SUHALUT ONLINE ACCOUNT

Sahulat Online Account has been designed to provide efficient, accessible and convenient transactional capabilities of a world-class bank with highly competitive charges.

Special features

Non-profit bearing/Local Currency Account Minimum Balance Required: Rs 50,000 Charges: PKR 50 will be charged if Monthly Average Balance not Maintained

AVERAGE LENDING RATE OF STANDARD CHARTERED BANK OF PAKISTAN IS 16.33%

DEPOSITS & ADVANCES:

DEPOSITS

Deposits from notes to the consolidated financial statements shows that fixed deposits increased as of saving deposits increased similarly, Current account decreased but as we make conclusion out of it, deposits of 2007 was greater as compared to deposits of year 2008.

Deposits of group companies increased but subsidiaries companies’ decreases in year 2008 as you see above in balance sheet for both years.

ADVANCES

Advances are stated net of provision against non-performing advances. Specific and general provisions are made based on an appraisal of the loan portfolio that takes into account Prudential Regulations issued by SBP from time to time. Specific provisions are made where the repayment of identified loans is in doubt and reflect an estimate of the amount of loss expected. The general provision is for the inherent risk of losses which, although they have not been separately identified, are known from experience to be present in any loan portfolio. Provision made / reversed during the year is charged to the profit and loss account

and accumulated provision is netted off against advances. Advances are written-off when there is no realistic prospect of recovery. When the Bank is the lessor in a lease agreement that transfers substantially all of the risks and rewards incidental to ownership of an asset to the lessee, the agreement is presented within loss and advances.

Total net loans and advances increased by approximately 5% to PKR 125.60 billion from PKR 119.54 billion while deposit base was marginally reduced by 1.5% to PKR 174.5 billion compared to PKR 177.2 billion last year. The bank continues to maintain adequate liquidity. The advances to deposit ratio as at December 31, 2008 was 72%.

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INVESTMENTOne of the greatest myths about investing is that it’s only for the very wealthy. The fact is that Mutual Funds have made it possible for anyone to invest, even if it is a small amount. It is not how much you invest, but how you invest that matters. The first step towards developing an investment plan is to understand your needs. How long can you afford to stay invested, how much money you need, how much risk you are comfortable with and what are your goals, are some questions that need to be addressed at the onset. With limited investment options and a booming but volatile stock market, what is good for customer hard earned income is an important decision. Standard Chartered Investment Services help with the decision, once again, a first such service to be offered by any Bank in Pakistan.

Since 2004, Standard Chartered bank is the first bank to offer a diverse portfolio of investment options to its valued customers. Offerings are designed to provide customer with an opportunity to diversify his/her investments, minimize risk and maximize returns!

Standard Chartered PLC

Building a global brand

Here for goodHere for good is Standard Chartered’s brand promise – a promise of commitment to our people, our markets, our customers and clients, and our communities. It’s what we’ve been doing for the past 150 years, and our aim for the next. To be here for people, here for progress and here for the long run. ww w .standa r dcharte r ed.com/he r e-fo r -good/brand-belief/en

Liverpool FCWe kicked off our four year sponsorship of Liverpool Football Club in July 2010. The partnership is building global brand awareness and providing promotional opportunities to help build our business.ww w .standa r dcharte r ed.com/about-us/sponsorship

Sustainability

We believe that our long-term profit is dependent on healthy economies, where societies flourish. Our sustainability strategy is centered on contributing to the economic development of the countries in which we operate, benefiting society, protecting the environment and upholding high standards of governance. ww w .standa r dcharte r ed.com/sustainability Economic

contribution

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b

f

Global network

Asia Australia Bangladesh Brunei Cambodia ChinaHong Kong India Indonesia JapanLaosMacau

Malaysia Mauritius Nepal Pakistan Philippines Singapore South Korea Sri Lanka Taiwan Thailand Vietnam

Africa Angola Botswana Cameroon Côte d’Ivoire GhanaKenyaNigeriaSierra Leone South Africa TanzaniaThe Gambia

Uganda Zambia Zimbabwe

Middle EastBahrain Egypt Jordan Lebanon Oman Qatar UAE

Europe Austria France Germany Guernsey Ireland Italy Jersey Russia SwedenSwitzerlandTurkey

UK Ukraine

The Americas Argentina BahamasBrazil Canada Cayman Islands Chile Colombia

Falkland Islands Mexico Peru Uruguay US Venezuela

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Standard Chartered Bank [ ]