Corporate Briefing

Agenda

Agenda Time

Welcome note and introduction 4:30 PM - 4:35 PM

Recitation of Holy Quran 4:35 PM - 4:40 PM

Company Briefing / Strategy 4:40 PM – 5:00 PM

Financial Performance 5:00 PM – 5:15 PM

Community Investments 5:15 PM – 5:30 PM

Q&A 5:30 PM – 5:45 PM

Refreshments 5:45 PM onwards

Disclaimer

Important Notice

This document contains or incorporates by reference “forward-looking statements” regarding the belief or current expectations of Standard Chartered Bank

(Pakistan) Limited, the board of the Company (the “Directors”) and other members of its senior management about the strategy, businesses and

performance of the Company and its subsidiaries (the “Group”) and the other matters described in this document. Generally, words such as ‘‘may’’, ‘‘could’’,

‘‘will’’, ‘‘expect’’, ‘‘intend’’, ‘‘estimate’’, ‘‘anticipate’’, ‘‘believe’’, ‘‘plan’’, ‘‘seek’’, ‘‘continue’’ or similar expressions are intended to identify forward-looking

statements.

Forward-looking statements involve inherent risks and uncertainties. They are not guarantees of future performance and actual results could differ materially

from those contained in the forward-looking statements. Recipients should not place reliance on, and are cautioned about relying on, any forward-looking

statements. Forward-looking statements are based on current views, estimates and assumptions and involve known and unknown risks, uncertainties and

other factors, many of which are outside the control of the Group and are difficult to predict. Such risks, factors and uncertainties may cause actual results to

differ materially from any future results or developments expressed or implied from the forward-looking statements. Such risks, factors and uncertainties

include but are not limited to: changes in the credit quality and the recoverability of loans and amounts due from counterparties; changes in the Group’s

financial models incorporating assumptions, judgments and estimates which may change over time; risks relating to capital, capital management and

liquidity; risks associated with implementation of Basel III and uncertainty over the timing and scope of regulatory changes in various jurisdictions in which

the Group operates; risks arising out of legal and regulatory matters, investigations and proceedings; operational risks inherent in the Group’s business; risks

arising out of the Group’s holding company structure; risks associated with the recruitment, retention and development of senior management and other

skilled personnel; risks associated with business expansion and engaging in acquisitions; reputational, compliance, conduct, information and cyber security

and financial crime risks; global macroeconomic and geopolitical risks; risks arising out of the dispersion of the Group’s operations, the locations of its

businesses and the legal, political and economic environment in such jurisdictions; competition; and other similar legislation or regulations; changes in the

credit ratings or outlook for the Group; market, interest rate, commodity prices, equity price and other market risk; foreign exchange risk; financial market

volatility; systemic risk in the banking industry and among other financial institutions or corporate borrowers; country risk; risks arising from operating in

markets with less developed judicial and dispute resolution systems; risks arising out of regional hostilities, terrorist attacks, social unrest or natural disasters;

climate related transition and physical risks; business model disruption risks; and failure to generate sufficient level of profits and cash flows to pay future

dividends.

Any forward-looking statement contained in this document is based on past or current trends and/or activities of the Company and should not be taken as a

representation that such trends or activities will continue in the future. No statement in this document is intended to be a profit forecast or to imply that the

earnings of the Company and/or the Group for the current year or future years will necessarily match or exceed the historical or published earnings of the

Company and/or the Group. Each forward-looking statement speaks only as of the date of the particular statement. Except as required by any applicable law

or regulations, the Company expressly disclaims any obligation or undertaking to release publicly or make any updates or revisions to any forward-looking

statement contained herein whether as a result of new information, future events or otherwise.

Nothing in this document shall constitute, in any jurisdiction, an offer or solicitation to sell or purchase any securities or other financial instruments, nor shall it

constitute a recommendation or advice in respect of any securities or other financial instruments or any other matter.

Standard Chartered FranchiseAn Introduction

Key messages

We are a global bank with deep local expertise in many of the world’s most dynamic markets

our focus is on to …

Accelerate in areas where we have distinctive competitive advantage

Maintain discipline on costs and improve our productivity

Continue to strengthen our controls environment

Disrupt through digital: we are big enough to be relevant to clients and

partners yet nimble enough to innovate

…which we expect will deliver incremental profitable growth and substantial value for our

shareholders

Leverage the global network and international expertise

Over 150 years in Pakistan

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

-

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019(Interim)

Dividend PKR - Bn Divdend %

Strong fundamentals

79%21%

2011

2019

220236

267297

304327

366378

425 439

20

70

12 0

17 0

22 0

27 0

32 0

37 0

42 0

47 0

25

(YTD)

H1’19 Div

Segments

CIB 30%

CB 9%RB 43%

COI 18%

2

3

1

4

• Serving over 1,000 global corporates, financial

institutions and government

• Contributes 30% to bank’s revenue

• YoY income growth of 51%

• Leverages on global footprint to offer unique

products and services to our clients

Corporate and

Institutional Banking

• Serving over 700 local corporates and small &

medium enterprises

• Contributes 9% to bank’s revenue

• YoY income growth of 20%

• Small base, but strong business momentum

Commercial Banking

Retail Banking

• Serving over 700K customers

• Contributes 43% to bank’s revenue

• YoY income growth of 13%

• Market leading digital platforms

• Efficient and productive network of 68 branches

Central & Other Items

• Comprising non client activities such as Treasury

Markets and some central functions

• Contributes 18% to bank’s revenue

• Treasury Markets income grew by 126% on

account of re-pricing of government securities

Largest foreign bank serving all segments

• Serving over 100k customers

• Contributes 18% to bank’s revenue

• YoY income growth of 32%

• Islamic business cuts across the four segments

• Bank leverages on Islamic Window model

• Operates under the global SC Islamic brand of “Saadiq”

Anchored on state of

the art and award

wining digital

solutions including:

✓ Digital branches

✓ SC Mobile

✓ Online Banking

✓ Straight2Bank

✓ Straight2Banks FX

✓ CDMs/ CDKs

✓ QR Code Payments

✓ Block-chain based

remittance solutions

✓ Retail workbench

✓ Advanced Data

Analytics

✓ Robotic Process

Automation

Focus on building profitable, efficient

and sustainable advances portfolio

across all segments

Leverage the network and differentiate

through innovative solutions, product

specialization & structured offshore

capabilities

Strong cost discipline; create

space for investments

through saves returns

Continue deposit growth; through mobilizing low cost deposits

Continue to enhance Digital

‘main bank’ capabilities and maintain market leadership target

areas

✓ Net advances increased 12% in H1 2019

✓ Total assets crossed PKR 600B

✓ High provision coverage of 101%

✓ Digital trxn mix 79%

✓ Active online

customers 59%

✓ Active SC Mobile app

customers 38%

✓ Marquee deals leveraging

global network strength

✓ capitalizing on CPEC

opportunities

✓ Developing strategic

alliances such as Emirates

Co-brand cards

✓ Strong deposit momentum;

16% growth in last 20 months

✓ Industry leading CASA mix 95%

✓ One of the lowest CoF in the

industry

✓ Well managed cost;

keeping it flat y/y

✓ Lowest CI ratio of 31% in

the industry

Deliver our network

Grow our affluent business

Optimize returns

Improve Productivity

Transform and disrupt with digital

Improve Productivity

✓ Re-align ourselves around client journeys

✓ Deliver on #simplefasterbetter agenda

✓ Drive positive JAWS

Deliver our network

✓ Leverage the network as a key differentiator

✓ Monetize on opportunities arising out of CPEC (B&R)

✓ Capitalize on Client Eco-system opportunities

Grow our affluent business

✓ Deepen opportunity and cross-sell in affluent and

emerging affluent segments

✓ Grow the Wealth Management business with

superior propositions

Transform and disrupt with digital

✓ Invest in technology infrastructure

✓ Pursue tailored digitization on existing tech stack

✓ Partnerships with fin-techs and tech-start-ups

Optimize returns

✓ Invest in areas with high marginal ROI

✓ Continued focus on risk adjusted returns

✓ Strong cost discipline

Our Priorities

Recent AchievementsAwards & Accolades

16TH Annual Excellence Awards by CFA Society Awards 2019

Runners up for Islamic Banking Window

Best medium sized Bank

Best D&I Bank

Management Association of Pakistan Awards 2019

Best Commercial Bank

Global Diversity and Inclusion Benchmark Awards 2019

Best Practice Award in Vision category

Progressive award in Benefits category

Progressive award in Communications category

Progressive award in Social Responsibility category

The Banker Magazine 2019

Best Islamic Bank

Asset Triple A - Islamic Finance Awards 2019

Best Loan Advisor

Best Deal in Pakistan

Asia Money 2019

Best International Bank

Best Bank for Premium Services

Finance Asia 2018/2019

Best Foreign Bank in Pakistan

Pakistan Digital Awards 2018Best Digital Marketing Campaign

Global Finance 2019

Best Digital Islamic Bank

HERoes Women Role Model supported by Yahoo Finance 2019

Shazad Dada (CEO) awarded global top 6th Advocate Executive for Women in Business

Our Financials

H1 2019 ResultsRaising the bar

Highest ever half

yearly profit

before tax of PKR

12.9bn (up 52%)

Capital Adequacy

Ratio of 16.6%

Highest ever

interim dividend

of PKR 4.8bn(12.5% per share)

With cost growth

flat and robust

income growth,

the Bank achieved

36% positive jaws

Credit impairment

well managed;

reversal of PKR

129mn

Total income

of PKR 18.7bn (up 36%)

PKR Million

Net Interest Income 13,239 8,744 51%

Non Interest Income 5,434 4,977 9%

Revenue 18,673 13,721 36%

Total expenses (5,788) (5,800) 0%

Profit before tax and provisions 12,885 7,921 63%

(Provisions)/ recoveries against advances 129 558 -77%

Other Provisions (116) (12) 867%

Profit before tax 12,898 8,467 52%

Taxation (5,667) (3,278) 73%

Profit after tax 7,231 5,189 39%

EPS - Rupees 1.87 1.34

ROA 2.4% 2.0%

ROE 21.4% 16.3%

CI Ratio 31.0% 42.3%

H1 2019 H1 2018 Var %

Income StatementRecord delivery

▪ Double digit revenue growth; up 36% y/y to

PKR 18.7bn

▪ Revenue growth in all segments; led by CIB

(51% y/y) & Treasury Markets (126% y/y)

▪ Total expenses flat y/y and operating cost

down 4%

▪ Recovery momentum continues. Net

release of PKR 129mn in H1’19. No

material NPLs added during the period

▪ Resultantly highest ever PBT of PKR

12.9bn (up 52%) and PAT of PKR 7.2 (up

39%) y/y

▪ Double digit RoE, one of the highest in the

industry

▪ Lowest CI ratio in the industry; reflective of

bank’s productivity and efficient delivery

model

Balance SheetWell capitalized and liquid

▪ Growth momentum in underlying balance sheet

continues; Total assets at PKR 615bn, up by PKR

39bn or 7% from Dec 18

▪ Advances (net) increased by PKR 20bn or 12% in

H1’19 mainly contributed by CIB

▪ Advances book remains short-term ~ 70% under

one year focusing on trade and working capital

lines at improved returns

▪ Current investment profile largely short term

▪ Total loss coverage ratio 101% (specific provision

96%)

▪ Deposit growth of PKR 14bn or 3% in H1’19.

Focus on low cost and sticky CASA

▪ Strong and liquid balance sheet with LCY and Total

AD ratio of 52.3% and 43.2%

▪ Bank remains adequately capitalized with CAR of

16.62%

PKR Million

ASSETS

Cash and balances with banks 62,965 52,638 20%

Lendings to financial institutions 28,151 6,466 335%

Investments – net 251,493 279,066 -10%

Advances – net 189,445 169,544 12%

Intangible assets 26,095 26,095 0%

Other assets 56,605 42,273 34%

TOTAL ASSETS 614,754 576,081 7%

LIABILITIES

Borrowings from financial institutions 34,964 24,024 46%

Deposits and other accounts 438,823 424,899 3%

- Current deposits 206,259 198,140 4%

- Saving deposits 208,637 202,467 3%

- Term deposits 23,927 24,292 -2%

Other liabilities 72,845 59,920 22%

TOTAL LIABILITIES 546,632 508,843 7%

Equity 68,122 67,238 1%

AD Ratio (LCY) 52.3% 47.5%

CAR 16.6% 19.1%

LCR 390.0% 397.6%

Jun-19 Dec-18 Var %

Punching above its weight

2nd

# Rank # Branches # RankMarket

Share# Rank

Market

Share# Rank

Market

Share# Rank

Market

Share# Rank

Market

Share

Branches Loans Deposits IncomeOperating

Profit

Income from

dealing in FX

3% 3%

-10%

2% 5%

-1%

-6%

1%

3%

20%

12%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

0

200

400

600

800

1,000

1,200

HBL NBP UBL MCB BAHL BAFL MEBL ABL FABL HMB SCB

Advances analysis

Net Advances Net Advances Growth

7%

4%

6%

9%

5%

10%

7%

5%

9%

11%

3%

0%

2%

4%

6%

8%

10%

12%

0

500

1000

1500

2000

2500

HBL NBP UBL MCB ABL BAHL MEBL BAFL HMB FABL SCB

Deposits analysis

Deposits Deposits Growth

HBL NBP UBL MCB BAHL BAFL MEBL ABL FABL HMB SCB

NPL Ratio 7% 13% 11% 9% 1% 4% 2% 3% 8% 6% 8%

Loss Coverage 94% 99% 87% 89% 138% 95% 130% 99% 91% 98% 101%

Potential

headwinds

▪ Economic slow-down - likely to impact different segments that we cater to

▪ External challenges including global trade tensions, oil price volatility, currency

pressures, FATF negotiations, inflation etc.

▪ Geo-political risk - situation remains fluid for the country from geo-political perspective

Potential

tailwinds

▪ More documented economy will result in more bankable clients

▪ High interest-rate regime

▪ Recovering investor confidence

▪ Increase in exports & continued expansion of CPEC project

Community

Investments

Here for Good

Embedded in the community

EDUCATION

EMPLOYABILITY

ENTREPRENEURSHIP

We will empower the next generation to learn, earn and grow through

programmes focused on education, employability and entrepreneurship

Empowering adolescent girls with life skills

Employability work readiness and vocational

training schemes for youth

Provide training, capacity building and financing

Who will benefit

EDUCATION

EMPLOYABILITY

ENTREPRENEURSHIP

Globally, we will support disadvantaged young people from low-income

households, particularly girls and people with visual impairments

Empowering adolescent girls with life skills

Employability work readiness and vocational training

schemes for youth

Provide training, capacity building and financing

500,000

adolescent girls

100,000

youth for work

50,000

micro & small

businesses

Adolescent girls aged 12 to 19 from low-income backgrounds

Youth aged 16 to 30, prioritising women and people with visual impairments

Micro and small business owners, prioritising women

Reach between 2019 – 2023

What are we doing in Pakistan

EDUCATION EMPLOYABILITY

ENTREPRENEURSHIP

SC-KU YOUTH FOOTBALL LEAGUE