Standard Chartered Bank

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Standard Chartered
Standard Chartered Bank is a multinational financial services company which is headquartered in London, United Kingdom with operations across the world. It is a universal bank successively having operations in consumer, corporate and institutional banking and treasury services.

History
The name Standard Chartered comes from the two original banks from which it was formed and which merged in 1969 The Standard Bank of British South Africa founded in 1863 and The Chartered Bank of India, Australia and China founded in 1853.

The standard bank of British South Africa

The Standard Bank was a British bank founded in the Cape Province of South Africa in 1862 by another Scotsman, John Paterson. Having established a considerable number of branches, Standard 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. Half the output of the second largest gold field in the world passed through The Standard Bank on its way to London. Standard expanded widely in Africa over the years, but from 1883 to 1962 was formally known as the Standard Bank of South Africa. In 1962 the bank changed its name to Standard Bank Limited, and the South African operations were formed into a separate subsidiary which took the parent bank's previous name, Standard Bank of South Africa Ltd.

The Chartered Bank of India, Australia and China

The Chartered Bank was founded by Scotsman James Wilson following the grant of a Royal Charter by Queen Victoria in 1853. Chartered opened its first branches in Mumbai, Kolkata and Shanghai in 1858, followed by Hong Kong and Singapore in 1859. The Bank started issuing banknotes of the Hong Kong dollar in 1862. With the opening of the Suez Canal in 1869 and the extension of the telegraph to China in 1871, Chartered was well placed to expand and develop its business.

Collaboration
In 1969 boththe banks had acquired other smaller banks along the way and spread their networks further. In 1969, the banks decided to merge giving rise to

Standard Chartered Bank, to counterbalance their existing network by expanding

in Europe and the United States, while continuing their expansion in their traditional markets in Asia and Africa.

Global Network
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. Since 2000 the Bank has achieved several milestones with a number of strategic alliances and acquisitions, which have extended the customer and geographic reach and broadened the product range that Standard Chartered offers. Despite its British base, it has only one branch in United Kingdom and around 90% of its profits come from Asia, Africa, and the Middle East. The extraordinary growth of its markets and businesses creates exciting and challenging international career opportunities. Standard Chartered has a network of over 1,700 branches and outlets and 5,600 ATMs in more than 70 countries and territories across the globe, making it one of the world's most international banks.

Board of directors
Chairman
Mervyn Davies

Executive Directors

Peter Sands

Richard Meddings

Steve Bertamini

Mike Rees

Jasper Singh Bindra

Non Executive Directors:

Richard Delbridge

James Dundas

Val Gooding

Rudy Markham

John daynter

Dr. Han Seung-soo

Paul Skinner

Oliver Stocken

Ruth Markland

Principles & Values

SCBs Principles
Leading by example to be the right partner for its stakeholders, the Bank is committed to building a sustainable business over the long term that is trusted worldwide for upholding high standards of corporate governance, social responsibility, environmental protection and employee diversity. It employs over 75,000 people, nearly half of whom are women. The Group's employees are of 125 nationalities, of which about 70 are represented among senior management.

What SCB stands for?

Strategic intent
To be the world's best international bank Leading the way in Asia, Africa and the Middle East

Brand Value
y y y y y

Courageous Responsive International Creative Trustworthy

Brand Promise
HERE FOR GOOD
It's the brand promise that reflects SCBs oldest belief. It's what it has been doing for 150 years and it attests to banks commitment to be here for the people. Here for progress. Here for the long run. Here for good.

Approaches
y

Participation
Focusing on attractive, growing markets where the bank can leverage its relationships and expertise

Competitive positioning
Combining global capability, deep creativity to outperform its competitors local knowledge and

Management Discipline
Continuously improving the way bank works, balancing the pursuit of growth with firm control of costs and risks

Commitment to stakeholders
y

Customers
Passionate about its customers' success, delighting them with the quality of its service

Our People
Helping its people to grow, enabling individuals to make a difference and teams to win

Communities
Trusted and caring, dedicated to making a difference

Investors
A distinctive investment delivering outstanding performance and superior returns

Regulators
Exemplary governance wherever the Bank is and ethics

Banks People
With 125 nationalities represented among over 80,000 employees, nearly half of whom are women, SCB has an international, diverse workforce. The bank believes this enables it to better serve its customers and maintain competitive advantage. Its leaders reflect the diversity that drives Standard Chartered's success and makes it one of the world's most international banks. Its employees have more than doubled in number over the past five years. Nearly half the number of employees are women and 70 nationalities are represented among its senior management, reflecting the Bank's policy towards providing equal opportunity for all. SCB is committed to creating an engaging, inclusive work environment, where people can make a difference, as individuals and as part of a team. The Bank places great emphasis on continuous improvement to increase productivity, enhance customer service and reduce administrative tasks, so that employees can spend more time in rewarding activities that add value to the Group.

BANKING SERVICES
SCB has world-class banking products and services to support its customers according to their financial needs and priorities change.

Personal Banking
Saving Accounts
The customers have the added convenience of SCBs international network, giving them easy access to their money when they're abroad. Scbs saving accounts include:

My Dream Account
Saving its customers children's future with a special account that's easier for parents to manage.

Payroll Account
A one-stop banking solution for companies and their employees that improves the way salary payments are managed. The account offers bank-wide range of benefits to employees and salary process convenience to the employer.

Women's Account
A bank account designed specifically to meet the financial needs of women.

e$aver
Managing customers money anytime, anywhere - and helping them watch their savings grow faster with SCB most competitive interest rate.

Marathon Saving Account

Bank is offering an interest rate that is as attractive as that of time deposits while enjoying the transaction convenience to customers account, money can be withdrawn at anytime.

Foreign Currency Account

Customers are offered to start saving money in multiple foreign currencies! It's easy with Standard Chartered Bank and it comes with a high interest rate as well.

Loans And Mortgages

Personal Loans
Whether planning a vacation, redecorating home or supporting child through college, a personal loan from Standard Chartered will give its customers the extra funds they need. Customers can even use it as a standby line of credit for unforeseen expenses. Depending on their specific credit needs, customers can take out an Installment Loan or a Revolving Loan without any guarantee or collateral. Whichever option they choose, SCB will help them stay in control of their finances and make the most of life's opportunities and experiences.

Mortgages
Whether buying first home or moving to a new place? Maybe investing in property or looking to switch to a better deal. Wherever its customers are on the property ladder, SCB can help them choose the right mortgage. By combining award-winning mortgages with its local and international experience, Standard Chartered is in a strong position to help homebuyers and property investors across the world. In fact, it has won awards as a leading Mortgage Bank in most of the countries in which it does business.

Credit Cards
Whether looking for extended repayment terms, special cardholder privileges or an attractive rewards programme, SCB has the ideal credit card to suit its customers lifestyle, designed to give them greater flexibility and round-the-clock convenience, Standard Chartered credit cards are accepted at outlets across the world.

Insurance
Standard Chartered partners with leading insurance providers to help protect its customers and the people they love so they can enjoy life without worrying. SCB understands that its customers have worked hard to get where they are today and it's important to safeguard their assets - now and for the future. Standard Chartered Insurance solutions include:
y y

Life Insurance Savings and Retirement Planning Insurance Health and Medical Insurance Home Insurance Motor Insurance

y y y

Priority Banking
SCB has introduced a new way of banking that puts a priority to whats important to the customer. The Perfect blend of unique benefits, expert solutions and exceptional services SCB help the customers to achieve their priorities. Priority Banking customers have the advantage of enjoying customised benefits that recognise their total relationship with SCB and have been tailored to suit their individual needs.

Priority benefits
Privileged Pricing
y

y y y

Special fee waivers and/or discounts on routine banking transactions Special pricing for deposits and loans Free international funds transfers between accounts Charge free overseas ATM cash withdrawals

Household Recognition
y

y y

Complimentary Priority Banking membership for spouse and children Family access to Priority Banking Centers, teller counters and hotlines Privileged pricing on routine banking transactions and services Invitations to specially designed lifestyle events

Priority Solutions
Customers can enjoy the benefits of banking accounts and solutions in both local and foreign currency that provide them with full transactional capabilities, special pricing privileges and higher returns. SCBs solutions include:
y y y y

Current and Checking Accounts Savings Accounts with highly competitive interest rates Time Deposit Accounts and A range of banking services from demand drafts to foreign exchange services, safe deposit boxes and telegraphic transfers

Priority Services
SCB offers a total banking relationship to its priority banking customers.

Dedicated Relationship Team

SCB provide its customers world class personalized service. By placing a Dedicated Relationship Team at their service SCB will ensure that its customers get the attention and expertise that they deserve. Relationship Team comprises of:
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A skilled and dedicated Relationship Manager who is assigned to manage and oversee the customers total relationship with the bank A qualified team of product experts who can help the customer on a wide range of financial requirements such as investments, foreign exchange, insurance, mortgages and business account services Designated service support at the Priority Banking Centers and branches

Private Banking
Standard Chartered Bank has deep roots and a long heritage in international banking. It has an extensive history in some of the world's most dynamic and fast-growing markets, such as Asia and the Middle East. No one has a better understanding of the wealth management needs of clients across these markets. Standard Chartered a financial services giant has top credit ratings and a 150-year history in banking, with a long-term commitment and financial investment in the Private Bank. Standard Chartered Private Bank offers a full range of customized wealth management products and services, including those offered by SCBs award-winning commercial bank. SCB use a broad architecture approach to investment management to bring its customers some of the worlds leading money managers and financial products.

Managing wealth
SCBs aim in managing its customers investments is to bring them some of the best money managers in the industry. SCB has full flexibility to look externally for talented investment managers, and using a structured due diligence policy to select those it consider having a robust investment process with strong track records and consistent performance. SCB also continually evaluate asset managers, markets and products to help ensure portfolio delivers consistently strong results.

SME Banking
At Standard Chartered SME Banking, SCB understands that customers business is unique. So it has made it a point to offer solutions that address its customers specific business needs. From managing the working capital, aiding business expansion, business protection or increasing the yield. SCB offers what people need for their business.

Working Capital
Manage cashflow efficiently. SCBs full suit of transactional services are available to assist in managing the business cashflow with greater ease and convenience.

Business Expansion
SCB is ready to provide the business expansion opportunities that come its customers way with its host of speedy services and lending solutions that fund the growth.

Business Protection
Protecting business from the unpredictable. SCBs comprehensive range of risk management strategies can protect the bottom line from the unexpected

Yield Enhancement
Help in Growing surplus cash and maximize potential returns through various investment services such as structured deposit, foreign currency or yield-enhancing products.

WholeSale Banking
Transaction banking
SCBs cash management services include local and cross border payments, collections, information management, account services, liquidity management and investment services for both corporate and institutional clients. SCB can help saving time and money by reducing processing costs while providing a value-added service to its customers suppliers. SCB has a comprehensive branch network and the local knowledge to help the customers with lower costs and greater efficiency.

Financial markets
Leading the way in financial markets, Standard Chartered delivers award-winning and innovative solutions to meet clients risk management, financing and investment needs. SCB provides equity solutions to a wide range of financial institutions and corporate clients including private and retail banks, long-only funds, hedge funds, broker-dealers and global, middle market and local companies. Over 150 years experience in facilitating commodities trading for clients in Asia, Africa and the Middle East has provided Standard Chartered Bank with the platform to become a leading provider of commodity-linked risk management and investor product strategies.

Corporate Finance
Standard Chartereds Corporate Finance group provides customized and innovative corporate finance solutions to help clients meet their strategic objectives. SCB has the expertise, experience and local knowledge to deliver high quality advice and execution on strategic cross-border advisory and leveraged financing transactions. SCB also assist clients to raise funds through initial public offerings, placings and other equity capital raisings. SCB can create and tailor the right structured solutions for its clients business needs, in order to enhance shareholders wealth and clients market competitiveness.

Saadiq Islamic Banking

At Standard Chartered Saadiq SCBs dedicated Islamic Banking team combines Shariah expertise with strong business acumen to offer customers the best of both worlds - comprehensive international banking services and a wide range of Shariah compliant financial products based on Islamic values. With over 1.5 billion Muslims in the world, the global Islamic funds market is currently valued at USD750 billion and is expected to grow exponentially every year. As a major international bank with a heritage of more than 150 years and a global network that covers 50% of the Muslim world, Standard Chartered is ideally placed to play a prominent role in this ever-expanding market. SCB has been providing Islamic Banking products and services in Malaysia since 1993 and in the UAE, Pakistan and Bangladesh since 2003. SCBs Islamic Banking business continues to grow rapidly and customers welcome the solutions it structures based on Shariah principles.

OPERATIONS & IMPACTS:

Listed on the London Stock Exchange, The Hong Kong Stock Exchange, the Bombay Stock Exchange and the National Stock Exchange of India, Standard Chartered ranks among the top 20 companies in the FTSE-100 by market capitalization. It has operated for over 150 years in some of the worlds most dynamic markets, leading the way in Asia, Africa and the Middle East. With over 85,000 employees and 1,700 offices in 71 markets, Standard Chartered operates both a Wholesale Banking and a Consumer Banking business. The Wholesale Banking business spans its entire footprint, serving corporate and institutional clients. The Consumer Banking business is present in 45 markets, serves over 13 million customers and runs more than 1,500 retail branches.

TARGETS AND PROGRESS

y To grow the total number of relationships which deliver revenues y To increase customer satisfaction with the products and services provided by Consumer Banking y To ensure Its banking systems are not being used to facilitate money-laundering, terrorist financing, corruption and fraud y To provide basic banking services to those who lack it; in effect allowing them to raise finance for themselves y To fully represent the diversity in gender and nationalities across the bank; especially those in senior management. This adds value to the global image of the bank to potential investors and recruits

y Personal and professional development y To foster a culture of high employee engagement as SCB continue to grow and change

RISK MANAGEMENT
The management of risk lies at the heart of Standard Chartereds business. One of the main risks SCB incur arises from extending credit to customers through its trading and lending operations. Beyond credit risk, SCB is also exposed to a range of other risk types such as country cross-border, market, liquidity, operational, pension, reputational and other risks that are inherent to its strategy, product range and geographical coverage.

RISK MANAGEMENT FRAMEWORK

Effective risk management is fundamental to being able to generate profits consistently and sustainably, and is thus a central part of the financial and operational management of the Group. Through its risk management framework SCB manage enterprisewide risks, with the objective of maximizing risk-adjusted returns while remaining within its risk appetite. As part of this framework, SCB uses a set of principles that describe the risk management culture its wish to sustain:
y

Balancing risk and return: risk is taken in support of the requirements of its stakeholders, in line with its strategy and within its risk appetite

Responsibility: it is the responsibility of all employees to ensure that risk-taking is disciplined and focused. SCB take account of its social responsibilities and its commitments to customers in taking risk to produce a return Accountability: risk is taken only within agreed authorities and where there is appropriate infrastructure and resource. All risktaking must be transparent, controlled and reported Anticipation: SCB seek to anticipate future risks and ensure awareness of all known risks Competitive advantage: SCB seek to achieve competitive advantage through efficient and effective risk management and control

REPUTATIONAL RISK
It is the potential for damage to SCBs franchise, resulting in loss of earnings or adverse impact on market capitalization as a result of stakeholders taking a negative view of the organization or its actions. Reputational risk will arise from the failure to effectively mitigate one or more of country, credit, liquidity, market, regulatory, operational, environmental or social risk. All employees are responsible for day-today identification and management of reputational risk. At country level, the Head of Corporate Affairs is the risk owner and it is their responsibility to protect SCBs reputation in that market with the support of the country management team. To achieve this, the Head of Corporate Affairs and Country Chief Executive officer must actively:
y

Promote awareness and application of our policy and procedures regarding reputational risk

SWOT ANALYSIS
The SWOT analysis comprises of the Organizations internal strength and weakness and external opportunities and threats. SWOT analysis gives an organization an insight of what they can do in future and how they can compete with their existing competitors. This tool is very important to identify the current position of the organization relative to others, who are playing in the same field and also used in the strategic analysis of the organization.

Strengths
y Dominant market position in chosen markets y Customer franchise y Strong regional focus y Product diversity y Experienced and efficient management team. y Better infrastructure facilities. y Company reputation and goodwill. y Sound profitability and growth with good internal capital generation. y Larger corporate client base.

Weaknesses
y Limited headroom for growth in top names y SQ: not at par with customer expectation y Lack of up-country reach y Perceived lack of flexibility vis-a-vis local banks y Turnover and long term people issues y Small market share. y High concentration of fixed deposit and large scale of loans. y Lack of full-scale automation.

Opportunities
y y y y y y y y y y y y Untapped Middle Market Acquisition of PCB clients State-owned Enterprises (SOE) Sector Acquisition of Banks/NBFI Islamic Banking Structured Products Scope of market penetration through diversified products. Automation of transaction processes and online branch banking. Governments policy of encouraging heavy inflow of foreign investment. Regulatory environment favouring privet sector development. Increasing purchasing power of people. Increasing trend in international business.

Threats
y y y y y y y y y Aggressive competition from Int. & local banks Political volatility & regulatory impediments Loss of people to competition Privatised/re-structured NCBs Increasing competition for market share in the industry. Frequent changes of banking rules by central bank. Market pressure of lowering of lending rate. National and global political unrest. Default culture of credit.

Pest Analysis
A PEST analysis is an analysis of the external macro-environment that affects all firms including banking industry. P.E.S.T. is an acronym for the Political, Economic, Social, and Technological factors of the external macro-environment. Such external factors usually are beyond the firm's control and sometimes present themselves as threats. For this reason, some say that "pest" is an appropriate term for these factors. However, changes in the external environment also create new opportunities and the letters sometimes are rearranged to construct the more optimistic term of STEP analysis. Many macro-environmental factors are country-specific and a PEST analysis will need to be performed for all countries of interest. A scan of the external macro-environment in which the firm operates can be expressed in terms of the following factors:     Political Economic Social Technological

Political Factors
In case of Bangladesh, political instability like makes difficulties in both domestic and international trade. As a result banking transactions are also stuck. Beside this corruption is another factors which hampers business environment. Growing US influence though ambiguous, relations with the US remain all important, strategically and economically. The US remains a guarantor of the balance of power in several parts of the region. Political factors include government regulations and legal issues and define both formal and informal rules under which the firm must operate. Some examples include; Political stability, Legal framework for contract enforcement, Trade regulations & tariffs, Pricing regulations, Taxation - tax rates and incentives, Wage legislation minimum wage and overtime, Mandatory employee benefits and Industrial safety regulations all these affects banking industry.

Economic Factors
Economic factors affect the purchasing power of potential customers and the firm's cost of capital. Banking industry is not an exception too. The examples of factors in the macro economy are Type of economic system in countries of operation, Government intervention in the free market, Comparative advantages of host country, Exchange rates & stability of host country currency, Efficiency of financial markets, Infrastructure quality, Skill level of workforce, Economic growth rate, Unemployment rate, Inflation rate, Interest rates.

 Globalization and the increase in free trade zones will impact on the autonomy of the state. International cooperation and others financial economic actors will play an increasingly important role.  Increasing impact of globalization on a wide range of social and economic rights of millions of poor peoples across the region including their right to water, health and housing.  Economic restructuring and the transition to a market economy is likely to continue to impact on rule of law issues with a growth in corruption, organized-crime and social unrest (e.g. China, India). There is growing economic rivalry and increasing fears of Chinese domination.  Feminization of labor: growing presence of free trade zones and export processing zones employing women in often extremely poor working conditions.

Social Factors
Social factors include the demographic and cultural aspects of the external macro environment. These factors affect customer needs and the size of potential markets. Some social factors include health consciousness, population growth rate, age distribution, career attitudes, emphasize on safety, class structure, Education, Culture, Attitudes and Leisure interests.  Poverty affects hundred of millions of people across the region, and there is a growing anti-globalization movement (partly linked to anti-American sentiments) especially in Bangladesh (South-Asia).  Access to medical care food, housing and social welfare will remain restricted in Bangladesh with the state failing to provide basic provisions. This is especially true in the situation of armed conflict.

Technological Factors
Technological factors can lower barriers to entry, reduce minimum efficient production levels, and influence outsourcing decisions. Some technological factors include R&D activity, automation, technology incentives, rate of technological change, Recent technological developments, Technology's impact on product offering and Impact on cost structure.New technologies including the internet, email and mobile phones will continue to open possibilities for communication, information sharing and cooperation but this resource remains inaccessible to the many people in the region who are poor or illiterate or in other states due to state attempts to control freedom of expression.

Financial Statements of 2010

As at 31 December 2010

2009 2010 Notes $million $million Assets Cash and balances at central banks 15, 40 32,724 18,131

Financial assets held at fair value through profit or loss 15, 16 Derivative financial instruments Loans and advances to banks Loans and advances to customers Investment securities Other assets Current tax assets Prepayments and accrued income Interests in associates Goodwill and intangible assets 23 25 15, 17 15, 18

27,021 22,446 47,859 38,193 52,058 50,885

15, 19 240,358 198,292 15, 21 15, 22 75,796 75,728 25,356 17,201 179 2,127 631 6,980 203 3,241 514 6,620

2009 2010 Notes $million $million Property, plant and equipment Deferred tax assets Total assets 26 27 4,507 946 4,103 1,096

516,542 436,653

Liabilities Deposits by banks Customer accounts Financial liabilities held at fair value through profit or loss Derivative financial instruments Debt securities in issue Other liabilities Current tax liabilities Accruals and deferred income Subordinated liabilities and other borrowed 15, 33 15, 28 28,551 38,461

15, 29 306,992 251,244

15, 16 15, 17 15, 30 15, 32

20,288 14,505 47,133 36,584 31,381 29,272 21,094 16,139 981 4,528 802 4,113

15,939 16,730

2009 2010 Notes $million $million funds Deferred tax liabilities Provisions for liabilities and charges Retirement benefit obligations Total liabilities 27 34 35 165 315 310 193 184 506

477,677 408,733

Equity Share capital Reserves Total parent company shareholders equity Non-controlling interests Total equity Total equity and liabilities 37 36 1,174 1,013

37,038 26,327 38,212 27,340 653 580

38,865 27,920 516,542 436,653

The one who gets farthest is generally the one who is willing to do and dare SCB dares to do and is always HERE FOR GOOD