Standard Chartered Bank Chartered Standard Pakistan

SCB

A LOCALLY EMBEDDED INTERNATIONAL BANK

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+ employees 25,000+ client relationships Global Corporates I Local Corporates I Financial Institutions | 4 product streams Commodity Traders 4 client segments

Products (businesses) Performance highlights Key Business Advantages

Corporate Finance: Corporate Advisory, Equity 2011 Focused business footprint – Asia, Corporate Finance, Project and Export Finance, Operating income Africa, Middle East Structured Finance, Structured Trade Finance Unwavering focus on depth of $10,846m client relationships across the full Principal Finance: Corporate Private Equity, range of product hierarchy Infrastructure, Alternative Investments, Real Strong local bank franchise Estate 2011 with pre-eminent cross border Operating profit capability Financial Markets: FX, Rates, Credit, Commodities, International product quality Equities, Fixed Income Trading and Sales, Capital $5,216m capability Markets, Structured Products, Regional Markets, Consistency and longevity of Asset and Liability Management presence in markets

Transaction Banking: Cash Management, Trade Finance Services, Securities Services

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. www.standardchartered.com/personal-banking

Business Structure Key Facts

Customer Segments Over 13 million customers Presence in 44 countries Private Banking I SME Banking I Premium Banking I More than 1,500 retail branches Personal Banking I Consumer Finance | Islamic Banking 30 online banking countries

Customer Products Performance highlights 6,000 ATMs

Consumer Transaction Banking: Employee 2011 Key Business Advantages Banking (payroll), current and savings accounts, debit Operating income cards, term deposits Deep local knowledge with over $6,791m 150 years presence in key markets Lending: Mortgages, personal loans, overdrafts, lines primarily in Asia, Africa and the of credit, credit cards, auto loans Middle East Wealth Management: Investment and treasury 2011 Customer-focused approach products Operating profit enables solving customers’ different

Bancassurance $1,650m Recognising and rewarding Islamic Banking customers’ total banking relationship SME Banking products: Business loans, trade finance, cash management and foreign exchange products with need based product (FX) bundles and advantaged pricing ORGANISATION STRUCTURE OF STANDARD CHARTERED BANK ORGANIZATIONAL STRUCTURE ORGANOGRAM OF STANDARD CHARTERED BANK

Audit Company Board of Directors Commitee of Secretary the board

Mr. Shayne Nelson Mr. Najam I (Chairman) Mr. Rahim Chaudry Panjwani (Chairman)

Mr. Badar Kazmi (Chief Executive officer) Mr. Shahid Zaki (Member)

Mr. John Brian Small Mr. Andrew James (Member)

Mr. Naimul Islam Chaudri PRODUCTS

Mr. Andrew Legal James Hardrace Auditors Advisors

Mr. Najam I M/s KPMG Chaudri Taseer Hadi & Haidermota & Co Co

Mr. Shahid Zaki Barristers at law Chartered & Corporate Accountants Counsellors Mr. Parvez wGhias  CREDIT & DEBIT PERSONAL CARDS  Other Financial  Tahaffuz ANKING Services  Invest 'n' Assure B . Credit Cards  Banking  Iqra Education Plan  ACCOUNTS & Convenience  Family Care DEPOSITS  Master  Rewards and  Cash Cover Plus Cashback Credit Privileges Cards  Priority Center . For Credit Card . Savings Accounts  Saadiq VISA Locations Customers Credit Cards  Saving Account  MasterCard  LOANS &  Smart Wallet  Supersave  VISA Card  Cover for Life Account MORTGAGES  Easy Credit Card  Credit Cover Plus  High Yield  American Account Express Credit . Mortgages  Easy Saver Cards  INVESTMENTS Account  American  Home Purchase   Bonus Saver Express Charge  Home Credit Mutual Funds Basics Account Card  Flex Account  PIA Co-branded . Loans . Mutual Funds Offered  Mahana Izaafa Credit Card  JS ABAMCO  Current Accounts  Ready Cash . Debit Cards  Swift Finance Limited  National Investments  Basic Banking  VISA Shopping Trust Limited Account Card Plus  INSURANCE  Atlas Asset  Rupee Current  Treasures Management Account Catalogue . For Branch Limited  Xtra Mile Banking  Arif Habib Account Investments  RIORITY Customers  Foreign P Management Currency BANKING Limited  Secure Life Accounts  BMA Asset Plan  Business  The Right Management  Mustaqbil Account Partner Limited  Taleem  Sahulat Online  Product  KASB Asset  Rishtey Account Proposition Management  Corporate  Visa Platinum Limited Salary Account Debit Card  Rupee Term Deposits  Interest Rates  Mahana Amdani Certificates  Overdrafts  Lockers

ISLAMIC BANKING WHOLESALE SME BANKING BANKING

Business Accounts . Accounts & Deposits  Transaction banking  Tijarat Classic Account  Saadiq Current Account  Saadiq Sahulat Online  Financial Markets  Tijarat Plus Account Account

 Saadiq Saver Trade and Working Capital  Saadiq Term Account  Corporate Finance  Business Power

 Principal Finance  Cash Today . Loans and Mortgages Loans  Saadiq Home Financing  Business Installment Loan . Credit & Debit Cards Industry Specific Solutions  Saadiq VISA Credit Cards  Saadiq VISA Shopping Card  Kissan Card

. Modaraba  Rang Hi Rang

 Modaraba  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%.

INVESTMENT One 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 good Liverpool FC Here for good is Standard Chartered’s brand promise – a We kicked off our four year sponsorship of Liverpool Football promise of commitment to our people, our markets, our Club in July 2010. The partnership is building global brand customers and clients, and our communities. It’s what we’ve awareness and providing promotional opportunities to help build been doing for the past 150 years, and our aim for the next. To our business. be here for people, here for progress and here for the long run. www.standardchartered.com/about-us/sponsorship www.standardchartered.com/here-for-good/brand-belief/en

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.

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Global network

Asia Malaysia Africa Uganda Europe UK Falkland Australia Mauritius Angola Zambia Austria Ukraine Islands Bangladesh Nepal Botswana Zimbabwe France Mexico Brunei Pakistan Cameroon Germany The Americas Peru Cambodia Philippines Côte d’Ivoire Middle East Guernsey Argentina Uruguay China Singapore Ghana Bahrain Ireland Bahamas US Hong Kong South Korea Kenya Egypt Italy Brazil Venezuela India Sri Lanka Nigeria Jordan Jersey Canada Indonesia Taiwan Sierra Leone Lebanon Russia Cayman Japan Thailand South Africa Oman Sweden Islands Laos Vietnam Tanzania Qatar Switzerland Chile Macau The UAE Turkey Colombia Gambia