09:34     STANCHART<02888> - Announcement & Resumption of Trading (2)         

    and over 3 million retail customers. Korea First Bank has a strong        
    track record of credit quality with one of the lowest ratios              
    of non performing loans in Korea (1.4%: September 2004).                  
                                                                              
    The purchase price represents approximately 1.87x the net asset           
    value of Korea First Bank as at 30 September 2004.                        
                                                                              
    The acquisition of Korea First Bank is expected to be earnings            
    accretive in 2006.                                                        
                                                                              
    Standard Chartered intends to finance the acquisition with the            
    proceeds from a placing of Standard Chartered ordinary shares             
    for approximately GBP1 billion together with other funding                
    resources.                                                                
                                                                              
    The acquisition constitutes a discloseable transaction of the             
    Company under the Listing Rules and a circular containing further         
    details of the acquisition will be despatched to the shareholders         
    of the Company as soon as practicable in compliance with the              
    Listing Rules.                                                            
                                                                              
    DESCRIPTION OF KOREA FIRST BANK                                           
                                                                              
    Korea First Bank is a Korean retail and wholesale bank with a             
    national network of branches. It is the seventh largest                   
    nationwide commercial bank in Korea, as measured by assets, and           
    the fifth largest as measured by branches.                                
                                                                              
    Historically Korea First Bank was a wholesale-based bank but,             
    following a change of control in December 1999, the bank was              
    substantially restructured and refocused as a mortgage-led                
    consumer business. As at 30 September 2004, mortgages made up             
    45% of total loans. The bank has been restructured through a              
    number of initiatives including implementing a new operating              
    platform, setting up shared service centres, centralising risk            
    management and creating a focus on profitability rather than              
    volume.                                                                   
                                                                              
    Korea First Bank is a nationally networked bank with:                     
                                                                              
    .      A Korean nationwide commercial banking market share of around      
    6%                                                                        
    .      404 branches                                                       
    .      Approximately 2,100 ATMs and cash deposit machines                 
    .      68,000 corporate and public customers                              
    .      3.3 million retail customers                                       
    .     Over 1.1 million credit cards in circulation                        
    .      2.6 million e-banking clients                                      
    .      5,169 employees                                                    
                                                                              
    As at 30 September 2004, using unaudited data, Korea First Bank           
    had:                                                                      
                                                                              
    .      Total assets of KRW44.1 trillion (US$41.9 billion)                 
    .      Total loans of KRW31.5 trillion (US$30.0 billion)                  
    .      Shareholders' funds of KRW1.8 trillion (US$1.6 billion)            
    .      A total capital adequacy ratio of 12.1% and a tier 1 ratio of 7.0% 
                                                                              
    For the nine months ending 30 September 2004, unaudited revenues          
    were KRW785 billion (US$747 million) and profits before tax               
    KRW134 billion (US$127 million). Audited profits before tax were          
    KRW95 billion (US$90 million) in 2002 and KRW93 billion (US$88            
    million) in 2003. Korea First Bank recorded audited profits after         
    tax and extraordinary items of KRW102 billion (US$97 million)             
    in 2002 and loss after tax and extraordinary items of KRW13               
    billion (US$12 million) in 2003. Unaudited shareholders' funds            
    of Korea First Bank were KRW1,733 billion (US$1,649 million)              
    at 30 June 2004 and KRW1,803 billion (US$1,716 million) at 30             
    September 2004.                                                           
                                                                              
    DESCRIPTION OF STANDARD CHARTERED