Strictly Confidential

Indicative Balance Sheet Transaction Investor Presentation

October 2011

Global Disclaimer
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Table of Contents

1.Executive Summary 2.Indicative Portfolio and Transaction Structure

Appendices 1.Standard Chartered Bank 2.Investment Opportunity 3.Client & Risk Management 4.Portfolio Management

1. Executive Summary

Executive Summary

Opportunity to gain exposure to Standard Chartered Banks (SCB) core markets, with its focus in the fastInvestment Opportunity
growing markets in Asia and the Middle East SCB has been in many of these markets for over 150 years, including China, India, Hong Kong and Singapore This transaction could provide diversification away from holdings in Europe and the US Investors can access SCBs extensive local market knowledge and comprehensive credit standards SCBs prior transactions have experienced very low default rates to date (see following page)

Transaction Objective

SCB is seeking to support the business growth of its core clients. SCB is not seeking to exit existing client relationships through this transaction

Strong Alignment of Interest

Portfolio of loans originated by SCB in its ordinary course of business, abiding by SCBs thorough and seasoned
credit process

SCB retains the first loss ([1]%) and the senior tranche (top [92]%) of the capital structure

Executive Summary (contd)

Synthetic Balance Sheet Programme

Initial outstanding amounts under the public Start platforms comprise a notional balance of $8.85 billion Regular public issuance and private issuance, even throughout the financial crisis, have been well received by investors

Initial Characteristics
Issue Date Scheduled Maturity Legal Final Maturity Portfolio Notional (US$B) Reference Obligations Reference Entities Weighted Average Life (years) Average Underlying Rating1

Start VI CLO
Nov 2010 Apr 2014 Apr 2015 1.25 1099 488 1.3 BB+

Start V CLO
Jul 2008 Jan 2012 Jan 2013 1.0 925 495 1.0 BB

Start IV CLO
Jun 2007 Matured in Dec 2010 Dec 2011 1.5 379 325 1.0 BB

Start III CLO

Dec 2006 Matured in Jun 2010 Jun 2011 1.5 520 428 1.0 BB-

Start II CLO
Jun 2006 Matured in Jun 2011 Jun 2012 1.6 171 160 2.7 BBB-

Start CLO
Nov 2005 Called in Feb 2008 Nov 2014 2.0 166 160 2.8 BBB+

Current Performance
Credit Events to date2 First Loss Tranche Retained by SCB None 1.00% 0.149% 1.25% 0.071% 1.25% 0.075% 1.25% 0.567% 0.00%3 None 2.10%

1. Initial portfolio weighted-average rating as indicated in rating reports by S&P, if available, or the S&P equivalent rating as per rating agency mapping. 2. Cumulative credit event amounts as of month end of July 2011 (or the relevant scheduled maturity date) proportional to initial portfolio notional 3. SCB retained a portion of the equity notes pari passu to the equity notes investors

2. Indicative Portfolio and Transaction Structure

START CLO Programme

[] CLO Issue Date Total Amount Portfolio Type Reference Obligations Reference Entities Reference Entity Groups Weighted Average Life Replenishment Period SCB Credit Grades (CG)* Average Underlying Rating % Bilateral (by Notional) % Publicly Rated (by Notional) % Listed (by Notional) % Asia (by Notional) [ ] 2011 US$ [ 1,000 ] mm Senior Unsecured Loans [ 1,220 ] [ 608 ] [ 491] [ 1.0 year] [ 3.25 years] [ 4A 9B ] [BB+] [95.3%] [5.7%] [23.9%] [72.6%]

Start VI CLO November 2010 US$ 1,250 mm Senior Unsecured Loans 1,099 488 441 1.3 year 3.2 years 4A 9B BB+ 96.7% 9.2% 25.4% 80.7%

Start V CLO July 2008 US$ 1,000 mm Senior Unsecured Loans 925 495 430 1.0 year 2.5 years 4A - 9B BB 98.7% 6.8% 30.7% 63.6%

Start IV CLO June 2007 US$ 1,500 mm Senior Unsecured Loans 379 325 282 1.0 year 2.5 years 5A 10B BB 80.4% 9.4% 29.4% 70.2%

Start III CLO December 2006 US$ 1,500 mm Senior Unsecured Loans 520 428 374 1.0 year 2.5 years 4A 10B BB94.5% 1.5% 35.5% 79.3%

* CGs are SCBs internal credit grades. Note: Figures for Start III, Start IV, Start V and Start VI CLOs are based on the initial portfolios at closing. Figures for [] CLO is based on the indicative portfolio.

Indicative Capital Structure

Initial Principal Amount (USD mm) [920] [70] [10] Coupon (USD Libor + ) N/A [ ]% N/A

Tranche

Width

Credit Enhancement

Placement

Senior * Mezzanine First Loss

[92]% [7]% [1]%

[8]% [1]% [0]%

Retained Funded CLN Retained

Sole Arranger & Bookrunner: Account Bank: Issuer: Listing: Reference Obligations: Portfolio Notional: Governing Law: Form: Replenishment Period : Scheduled Maturity: Final Maturity: Credit Events: Options:
* Part of the senior tranche will be rated.

Standard Chartered Bank Standard Chartered Bank A Cayman Island registered Special Purpose Vehicle* * Irish Stock Exchange Senior unsecured loans USD [1] billion English Reg. S / 144a [ 2015] ([3.25] years) [ 2015] ([3.5] years) [ 2016] ([4.5 ] years) Bankruptcy, Failure to Pay and Restructuring 10% Clean-up Call, Regulatory Event Call

** Funded swaps and other structures without the need of special purpose vehicles may be considered

Indicative Portfolio
Tenor Distribution (WAL: 1.0 yr) (by Notional) SCB Credit Grade (CG) Distribution (by Notional)

35% 30% 25% 20% 15% 10% 5% 0% < 3 mths 3 - 6 mths 6 - 12 mths 1 - 2 years 2 - 3 years 3 - 4 years

25%
Weighted Average CG

20% 15% 10% 5% 0% 4A

Portfolio Granularity Total Initial Portfolio

6B (BB+/BB Equivalent)

4B

5A

5B

6A

6B

7A

7B

8A

8B

9A

9B

Total for 8A or below Notional (%) 5.0% 5.4% 2.6% 5.7% Number of Entities 226 36 7 10

Reference Entity Balance Less than $1.0 mm $1.0 to $2.5 mm $2.5 to $5.0 mm $5.0 to $7.5 mm $7.5 to $10.0 mm Total Average Notional

Notional (%) 10.4% 15.1% 17.0% 20.7% 36.9% 100.0% USD 1,644,737

Number of Entities 385 99 51 34 39 608

18.8% USD 672,815

279

10

Industry / Geography Composition

Highly diverse portfolio from both regional and industry perspective
S&P Industry Northeast Asia Hong Kong South Korea 0.59% 0.00% 0.06% 0.00% 0.88% 0.52% Southeast Asia South Asia Middle East United Arab Emirates UK/Europe United Kingdom 0.32% 0.11% 0.02% 0.01% 0.05% 0.32% 0.13% 0.01% 0.00% 0.01% 0.21% 0.00% 0.01% 0.22% 0.06% 0.13% 1.01% 0.97% 0.08% 0.02% 1.15% 0.08% 0.03% 0.07% 0.00% 0.03% 0.01% 0.05% 0.07% 0.07% 0.29% 0.21% 1.07% 0.15% 1.97% 0.33% 0.05% 0.09% 0.14% 0.08% 1.29% 0.20% 0.97% 0.06% 0.97% 0.14% 0.01% 0.97% 0.02% 0.04% 1.04% 0.25% 0.58% 0.03% 0.09% 0.04% 0.08% 0.04% 0.36% 0.12% 0.02% 0.75% 0.00% 0.86% 0.66% 0.04% Americas South Africa Africa Australia Grand Total

China Air transport Automotive Beverage & Tobacco Building & Development Business equipment & services Chemicals & plastics Clothing/textiles Conglomerates Containers & glass products Cosmetics/toiletries Drugs Ecological services & equipment Electronics/electrical Equipment leasing Farming/agriculture Financial intermediaries Food products Food service Food/drug retailers Forest products Health care Home furnishings Industrial equipment Leisure goods/activities/movies Lodging & casinos Nonferrous metals/minerals Oil & gas Publishing Radio & Television Retailers (except food & drug) Steel Surface transport Telecommunications Utilities Grand Total 0.52% 0.16% 0.97% 0.01% 1.41% 0.14% 0.27% 0.08% 0.54% 0.79% 1.48% 1.50% 0.91% 1.05%

Others Singapore Indonesia Others 0.07% 0.18% 0.47% 0.04% 0.29% 2.15% 0.08%

India 0.59% 0.23% 1.56% 0.56% 0.84% 0.00% 0.01% 0.17%

Others 0.00%

Others

Others

USA

Others

Nigeria

Others

Australia 0.25% 2.01% 1.76% 10.32% 3.41% 10.27% 2.85% 5.79% 0.17% 0.10% 2.78% 0.15% 4.67% 3.57% 4.52% 9.41% 4.99% 0.12% 0.35% 0.18% 0.16% 0.02% 2.55% 1.76% 0.59% 4.97% 3.73% 0.33% 0.01% 4.49% 3.70% 4.29% 3.46% 2.29% 100.00%

0.24% 3.46% 1.02% 0.17% 1.47% 2.87%

0.06% 0.05% 0.97% 0.10% 0.12%

0.40%

0.65% 0.10% 0.01% 0.05%

0.48%

0.22%

0.97% 1.10%

0.76% 0.15% 0.21% 0.30% 1.15% 0.38% 0.05% 0.07% 0.31% 2.11% 0.05% 0.03% 0.03% 0.05% 0.02% 0.06% 0.84% 0.97%

0.15% 0.07% 0.46% 0.42% 0.13% 0.32%

0.02%

0.01%

0.07% 1.56% 2.19% 0.06% 0.13% 0.01%

0.43% 0.04% 0.00% 0.06% 0.10% 0.07% 0.03%

2.38% 0.08%

0.30% 0.01% 0.22%

0.01%

0.02% 0.03% 0.05% 0.59% 0.32% 1.33% 0.26% 1.14% 0.23% 0.57% 1.58% 0.73% 0.26% 0.00% 0.57% 0.37% 1.19% 1.29% 14.34% 17.90% 3.94% 3.77% 7.72% 4.09% 5.24% 13.83% 0.58% 0.23% 0.56% 0.26% 0.60% 0.06% 0.01% 0.01% 1.93% 0.01% 2.04% 0.58% 0.02% 0.06% 0.01% 0.04% 0.00% 0.01% 0.97% 0.58% 0.77% 0.04% 0.07% 0.11% 0.09% 0.29% 1.77% 1.48% 1.09% 0.07% 7.49% 0.02% 0.30% 0.13% 1.37% 1.46% 5.61% 1.70% 1.10% 1.26% 0.01% 0.10% 1.78% 0.01% 0.03% 0.97% 0.00% 0.59% 0.07% 0.03% 0.02% 0.00% 0.36% 0.61% 0.58% 4.18% 0.12% 0.17%

0.02% 0.25% 0.09%

0.16%

0.26%

0.41% 0.00%

0.08%

1.01%

2.22%

Greater than 3%

Between 1% and 3%

11

Geographical Distribution
The Indicative Portfolio has been selected to be representative of SCBs Loan portfolio as of 30 June 2011
S&P FC Rating AAA AAA Moody's FC Rating Aaa Aa3 Aa2 SCB Loan Portfolio (% by Notional) 34.01% 13.93% 11.23% 7.81% 1.04% 13.61% AAA BB+ BBAaa Baa3 B1 5.87% 2.07% 1.06% 4.61% 14.33% BBBB+ Baa2 B3 11.43% 0.65% 2.26% 11.79% Aa2 AA Aa2 7.31% 2.52% 1.96% 9.24% AAA Aaa 2.75% 6.49% 8.00% 8.01% AAA Aaa 1.01% Indicative Portfolio (% by Notional) 39.95% 17.90% 14.34% 3.94% 3.77%1 17.05% 7.72% 4.09% 3.47% 1.77%2 15.60% 13.83% 1.51% 0.26%3 8.86% 7.49% 0.56% 0.81%4 7.07% 1.46% 5.61%5 2.80%6 6.46%7 2.22%
Notes: 1. 2. 3. 4. 5. Refers to Taiwan and Japan Refers to Malaysia, Philippines, Thailand and Cambodia Refers to Bangladesh Refers to Jordan, Oman and Saudi Arabia Refers to Finland, Russia, Germany, Turkey, Switzerland and Netherlands Refers to United States of America, Brazil and Argentina Refers to South Africa, Nigeria, Kenya, Uganda, Botswana, Cameroon, Ghana, Mauritius and Morocco.

Country / Region Northeast Asia Hong Kong China South Korea Others Southeast Asia Singapore Indonesia Vietnam Others South Asia India Sri Lanka Others Middle East United Arab Emirates Qatar Others UK/Europe UK Europe Americas
Africa

Reference Entity Geographical Distribution (by Notional)

WB Loan Portfolio 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

Indicative Portfolio

6. 7.

Australia

12

Alignment of Interest
Amount referenced in [] CLO Indicative Portfolio US$ [1.0] billion Total credit exposure in obligations referenced (i.e. including remaining obligation exposures not referenced) US$ [6.5] billion Total credit exposure to borrowers referenced (i.e. including other exposures to the same borrowers) US$ [9.2] billion US$ [21.0] billion Total credit exposure to groups referenced (i.e. including exposures to the other borrowers in the same client groups)

SCB continues to have significant credit exposure to the obligations and borrowers referenced in [] CLO

SCB retains approximately: [85%] of the remaining exposures in obligations referenced [89%] of all exposures extended by SCB to the borrowers referenced [95%] of all exposures extended by SCB to other borrowers under the same client groups

13

Indicative Replenishment Conditions

Eligibility Criteria / Replenishment Conditions Maximum Portfolio Notional Amount: Max Portfolio Weighted Average Life (WAL) (years): WAL for Reference Entities rated CG 9A or lower (years): Max Aggregate Reference Entity Exposure: USD [1.0] billion [1.5] [0.75] [40.0]% (CG 7A or lower) [20.0]% (CG 8A or lower) [6.0]% (CG 9A or lower) Latest Reference Obligation Due Date: Max S&P Industry Groups: Max 3 largest S&P Industry Exposure: Max Single Country Exposure (by notional)*: [ 2015] [15.0]% [35.0]% [35.0]% (A+/A1 or higher) [20.0]% (A/A2 to A-/A3) [10.0]% (BBB+/Baa1 to BB/Ba2) [5.0]% (BB-/Ba3 or lower) Except for - India [15.0]% Replenishment Stop Trigger Cumulative defaulted notional amount** exceeds [5]% of the Initial Portfolio Notional Amount Indicative Portfolio USD [1.0] billion [1.0] [0.72] [34.6]% [18.8]% [5.0]% [31 Dec 2014] [10.3]% (Building & Development) [30.0]% [17.9]% (Hong Kong) [3.9]% (South Korea) [4.1]% (Indonesia) [3.5]% (Vietnam) [13.8]% (India)

For Initial Portfolio and on each Replenishment:

Concentration caps for each Reference Entity Group are placed at 1.0% of Initial Portfolio Notional Amount and 0.6% for assets rated CG8A or below Each Reference Entity has a credit grade of [9B] or higher No defaulted entities or entities on Early Alert are eligible for reference Reference Obligation Due Date should not be later than the Scheduled Termination Date Country of domicile must be a Qualifying Country which has a minimum Moodys foreign currency rating of [B3] or a minimum S&P foreign currency Rating of [B-]

* Based on S&P and Moodys foreign currency ratings ** Including notional amounts of all Defaulted and Liquidated Reference Obligations

14

Potential Returns - 3mLibor* + [14%] Margin

Internal Rate of Return based on hypothetical scenario
18%
Main Assumptions

IRR 15.4 %

Typical pool with average CG [6B] Scheduled Maturity [3.5] years Replenishment Stop Trigger [5]% (Cumulative Default)

12%

Margin [14]% based on Outstanding Principal Balance

of the Mezzanine tranche **

IRR

Annualised Start V default rate Assumed recovery rate 40%

6%

Attachment point [1]% Detachment point [8]%

Recovery Rate 0% 0.0%

30.00%

40.00%

50.00%

0.5%

1.0%

1.5%

2.0%

Constant Annual Default Rate (CADR)

Constant Annual Default Rate (CADR)

Start Transactions Default Experience
2008 Start III Start IV Start V Start VI 0.005% 0.000% 0.025% N/A 2009 0.020% 0.071% 0.124% N/A 2010 0.050% 0.000% 0.000% 0.000% 2011 (YTD) N/A N/A 0.000% 0.000% Issuance Date Dec-06 Jun-07 Jul-08 Nov-10 Maturity Date Jun-10 Dec-10 Jun-12 Apr-14 Annualised Default Rate 0.0214% 0.0203% 0.0484% 0.0000% 15

* Used 3.5yr USD mid swap rate 0.8% as of 15 Sep 2011 ** Outstanding Principal Balance of the Mezzanine tranche will be reduced upon defaults and principal repayments.

Appendices: 1. Standard Chartered Bank

16

Standard Chartered Bank

Standard Chartered Bank Here for Good Leading the Way in Asia, Africa and the Middle East

With a banking heritage spanning more than 150 years, SCB has an
extensive global reach and a well-established position in some of the worlds most dynamic markets

Bahrain 1920 Mumbai 1858 Singapore 1859

Shanghai 1858 Hong Kong 1859

Over two-thirds of operating income and profits are derived from

Asia, Africa and the Middle East
South Africa 1862

Over 80,000 employees representing over 125 nationalities located

in more than 1,700 branches and outlets across 70 countries

Consistently ranked in the top 25 FTSE-100 companies and one of

the 25 largest banks globally by market capitalisation US$51 billion (as at 5 Sep 2011).

SCB Public Ratings Long Term Short Term

Standard & Poors A+ A-1 Stable

Moody's A1 P-1 Stable

Fitch AAF1+ Stable

Regulated by the Financial Services Authority (FSA) in the United

Kingdom

Outlook

17

Standard Chartered Bank

Strong Positioning in Market Turmoil Consistent Profit Growth H1 2011 Performance Highlights

Delivered strong broad based performance during the first six months of
2011:
Profit before taxation was up 17% to $3.64 billion on 1H 2010; Income increased 11% to $8.76 billion; Normalised earnings per share were up 4.1% to 105.2 cents.

9th consecutive year of record income and profits (based on H1 2011

results)
Profit before Tax (US$ million)
5,000
H1 H2

Continued low levels of impairment, driven by a disciplined and proactive

approach to risk

4,000

US$ Millions

A highly liquid and a well diversified balance sheet with limited exposure
3,000 2,000 1,000 2003 2004 2005 2006 2007 2008 2009 2010 2011

to problem asset classes and continued momentum

Capital ratios continue to position the Group well to meet evolving

regulatory requirements whilst leveraging the growth opportunities in our markets
SCB vs. FTSE 350 Banks Index

Share Price change from Aug 2007 to Aug 2011

Balance Sheet Discipline

30%

Strong capital position and robust loan-to-deposit ratios Reinforced a liquid and prudently managed balance sheet
Balance Sheet Ratios Tier 1 capital Total capital Customer LTD% Liquid Assets% 2008 year end 2009 year end 2010 year end 2011 half year 9.9% 15.6% 74.8% 23.1% 11.5% 16.5% 78.6% 26.2% 14.0% 18.4% 77.9% 26.6% 13.9% 17.9% 78.1% 26.5%

0%
Aug-07 Feb-08 Aug-08 Feb-09 Aug-09 Feb-10 Aug-10 Feb-11 Aug-11

-30%

-60%

-90%
Standard Chartered London Share Price FTSE 350 Bank Index

18

Appendices: 2. Investment Opportunity

19

Investment Opportunity
Transaction Objectives

Risk sharing on a loan portfolio from SCBs balance sheet Assist in providing capacity to facilitate SCBs client-focused growth strategy globally, with focus on Asia Meet regulatory conditions applied under Basel II regime (e.g. Significant Risk Transfer)

Typical Transaction Structure

Reference Portfolio Standard Chartered Bank Synthetic Swap

Credit Protection

Retained

Issuance Special Purpose Vehicle*

Proceeds

Senior Tranche ([92]%)

Fixed Rate Payment

Proceeds

Interest

Coupon

Notes

Investor ([1% 8%])

Collateral Account (SCB)

Retained 1st Loss Tranche ([1]%)

* Funded swaps and other structures without the need of special purpose vehicles may be considered

20

Investment Opportunity (contd)

Overview of Key Structural Features

Features

Rationale

Synthetic risk transfer Diversified portfolio of senior obligations originated by SCB

Loans and obligations are not originated for inclusion No bonds, subordinated debt, CDS or short positions

Underlying assets retained by SCB to bypass issues caused by multiple legal

jurisdictions and currency denominations

Transactions not meant for revenue generation or arbitrage

Replenishable portfolio

Short tenor of underlying assets necessitates replenishment within strict,

agreed criteria

Actual losses determined after completion of workout process and loss Loss allocation is based on actual loss / recovery Investors benefit from SCBs workout groups experience
calculations are verified externally

3 Credit Events: Bankruptcy, Failure to Pay and Restructuring Replenishment Stop Trigger forces early amortisation on reference portfolio if
loss/default level is breached

Required for Basel II compliance To protect the investor by preventing the addition of new exposures if
losses/defaults exceed trigger threshold

Periodical FX resets for non-US$ obligations

FX risk not transferred to investors; retained by SCB

21

Appendices: 3. Client & Risk Management

22

Client & Risk Management

Wholesale Banking Client-Centric Strategy Levels of Client Needs Deepening Relationship with Clients

Deep core bank client relationships

Provide value-added and strategic products to our key clients

Strategic
Corp. finance & advisory

Local scale and cross-border capabilities

Have superior international product capability seamlessly delivered to our clients across our network

Value Added
Capital markets FX & rates

Balance sheet management

Remain open for business, support our clients and seize business opportunities

Transactional
Trade finance & transaction banking

Basic Lending
Term loans, overdrafts & revolving facilities

23

Client & Risk Management

Strong Risk Management with Local Presence In-Country Headcount Relationship Management (RM)

Client facing function for information collection by RMs Multiple relationship touch-points across different products and geography Early identification and proactive handling of deteriorating credits
Credit Management (Credit)

Americas RM 98 Credit 40 GSAM 2

Europe RM 135 Credit 38 GSAM 23 Middle East RM 326 Credit 42 GSAM 21

NE Asia RM 937 Credit 183 GSAM 45 SE Asia RM 485 Credit 180 GSAM 16 South Asia RM 345 Credit 154 GSAM 12

Credit approval authorities are determined by borrower credit grade (CG)

and maximum exposure2 contemplated

Global RM 2,583 Credit 676 GSAM 136

Africa RM Credit

257 39

Robust credit culture supported by specialist Credit Analysts All customers and facilities are reviewed annually at a minimum

GSAM 17

Group Special Asset Management (GSAM)

GSAM manages and works out non-performing accounts (see page 27 for details)

1. Approximate Jan 2011 headcount numbers 2. Exposure is calculated based on potential Exposure at Default (EaD) x Loss Given Default (LGD) (see page 25)

24

Client & Risk Management

Credit Decision Making

Credit Grade (CG) is used by SCB as a primary tool, in conjunction with the judgment of independent risk officer, for evaluating the credit risk of
counterparties

Each customer is assigned a CG (mapped to a default probability) using a scorecard developed for the respective segment which takes into consideration
company specific characteristics such as:

Quantitative / financial factors (e.g. financial ratios, profitability) Qualitative factors (e.g. management, industry, country risks) Transaction specific factors such as amount, structuring, risk mitigants are evaluated in the deal pricing calculator to determine the Dollar Loss Given
Default ($LGD) for each facility

Credit Approval Process

Business Proposition Credit Approval and Oversight Layered Approval Authorities

Business team submits business proposal

with key credit evaluation related information

Credit Approval by Credit Officers based on

authority levels of $LGD, which is calculated based on exposure at default and loss given default rates

Senior Credit Officer Regional Credit Officer Senior Regional Credit Officer WB Chief Risk Officer (WBCRO) Senior Group Sanction Group Credit Committee if the $LGD is over
US$2 billion

Credit Grading and Appropriateness

Scorecards

Know Your Customer

Stringent oversight process on the credit

approval quality

25

Client & Risk Management

Early Alert Reporting (EA)

Process to proactively detect and solve any issues at a nascent stage to prevent or minimise losses Policy in place to trigger early identification and reporting of accounts with warning signs including: Business risk arising from industry, supplier, buyer or competition changes Ownership of management changes Rapidly deteriorating financial performance including liquidity strain Delayed submission of financials or sudden/repeated changes in auditor or banks Poor account conduct delayed interest servicing or overdue principal repayment Identification, reporting and proactive management of EA Accounts are prime responsibilities of all Relationship Managers and are undertaken on a
continuous basis.

Effective oversight on EA Accounts is carried out by Early Alert Committee comprising Origination & Client Coverage Credit penultimate line Group Special Assets Management (GSAM)

26

Client & Risk Management

Group Special Assets Management Historical Default and Loss Rates

Group Special Assets Management (GSAM) manages non-performing

accounts

Historical default and published loss rates demonstrate strength in our risk
management

Independent division with separate reporting lines into Group Risk

without influence from origination or credit risk department

During the Asian Financial Crisis, SCB's loan portfolio (despite its Asian
focus) continued to perform reasonably well

Shadows accounts with early warning signs of deterioration Objectives of rehabilitating clients and minimising losses by: restructure and return the management of assets to RM and CRM if
rehabilitated

Wholesale Banking Loan Impairment %

(Net Charge* / Loans and advances to customers) Year 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 % 0.35% 2.16% 2.81% 1.06% 1.54% 0.39% 0.20% ( 0.08%) ( 0.24%) ( 0.15%) 0.03% 0.39% 0.88% 0.23%

orderly exit which may include sale in secondary market debt/equity swap realisation of collateral receivership and/or liquidation litigation

Note: Please refer to graphic on page 24 for GSAM headcounts * Net Charge is equivalent to the sum of Specific Impairment Provisions, Recoveries and Portfolio Impairment Provisions

27

Default Experience
SCB Wholesale Banking Default Experience
13-year Average
1

CG
1 2 3 4 5 6 7 8 9 10 11 12

1998
0.54% 0.30% 0.00% 1.33% 0.48% 0.98% 1.45% 2.33% 4.21% 5.07% 5.60% 46.05%

1999
0.39% 0.00% 0.09% 0.13% 1.73% 1.56% 2.28% 1.45% 2.66% 4.71% 9.30% 57.84%

2000
0.00% 0.00% 0.08% 0.10% 1.48% 0.68% 0.34% 0.15% 4.67% 3.77% 3.83% 38.27%

2001
0.00% 0.00% 0.00% 0.05% 0.30% 0.31% 1.92% 1.16% 2.75% 4.97% 6.04% 40.48%

2002
0.00% 0.00% 0.11% 0.13% 0.00% 0.17% 0.34% 0.52% 1.03% 1.40% 2.38% 27.31%

2003
0.00% 0.00% 0.00% 0.00% 0.19% 0.15% 1.39% 0.60% 1.97% 0.82% 1.31% 16.95%

2004
0.00% 0.30% 0.00% 0.11% 0.15% 0.00% 0.18% 0.06% 0.80% 0.96% 0.91% 13.91%

2005
0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.41% 0.45% 0.63% 0.92% 2.42% 18.42%

2006
0.00% 0.00% 0.00% 0.00% 0.00% 0.15% 0.00% 0.23% 0.99% 2.09% 2.43% 18.50%

2007
0.00% 0.00% 0.00% 0.00% 0.00% 0.45% 0.00% 0.15% 1.03% 1.34% 1.24% 11.27%

2008
0.00% 0.00% 2.05% 0.00% 0.06% 0.13% 0.32% 0.71% 1.42% 2.50% 0.91% 17.44%

2009
0.00% 0.00% 0.00% 0.00% 0.27% 0.24% 0.31% 0.60% 2.27% 2.80% 1.76% 20.55%

2010
0.00% 0.00% 0.28% 0.14% 0.04% 0.28% 0.25% 0.43% 1.66% 0.61% 0.63% 18.69%

2011 (H1)2
0.00% 0.00% 0.13% 0.00% 0.00% 0.00% 0.18% 0.17% 0.81% 0.40% 0.39% 8.76%

0.07% 0.05% 0.20% 0.15% 0.36% 0.39% 0.71% 0.68% 2.01% 2.46% 2.98% 26.59%

CGs are set on an entity basis as a probability of default and do not discriminate by product
Global Corporate Default Summary3 S&P Non-Investment Grade (Non IG)
S&P
Non IG

13-year Average1
4.65%

1998
3.72%

1999
5.48%

2000
6.08%

2001
9.65%

2002
9.27%

2003
4.95%

2004
2.04%

2005
1.43%

2006
1.12%

2007
0.89%

2008
3.54%

2009
9.45%

2010
2.80%

1. Average is a simple average over the previous 13 years from 1998 to 2010 2. SCB wholesale Banking default experience for the first half of 2011. 3. Source: S&P 2010 Annual Global Corporate Default Study and Rating Transitions, 30 March 2011 Notes: SCB default data is based on % of individual borrowers in each CG grouping (e.g. 3 borrowers in the same reference entity group would constitute 3 defaults) and are unaudited

28

Recovery Experience
Wholesale Banking Recovery Experience

Recovery History by Region Country / Region Hong Kong China India UAE Singapore Thailand Malaysia Indonesia UK / Europe US / Americas Period of Default 1995 2008 1995 2008 1995 2008 1995 2008 1995 2008 1995 2008 1995 2008 1995 2008 1995 2008 1995 2008 Total Defaulted Amount US$ million 895.3 195.7 109.1 86.7 396.6 313.1 390.4 261.0 664.6 382.5 Default Weighted Average Recovery Rate 59% 55% 55% 44% 62% 61% 64% 52% 71% 77%

SCBs recovery history shows a weighted average time to recovery of 3.5 years and a median time to recovery of 3.0 years Recovery includes all exposures of different products from Wholesale Banking clientele

Note: Figures include resolved defaults only and have not been audited

29

CG Rating Agency Equivalent Mapping

SCB Idealised PD 0.01% 0.02% 0.03% 0.04% 0.05% 0.07% 0.09% 0.13% 0.22% 0.39% 0.51% 0.67% 0.89% 1.17% 1.54% 2.03% 2.67% 3.51% 4.62% 6.08% 8.01% 10.54% 13.77% 18.00% 24.55% 33.00% 100.00% 100.00% S&P Equivalent Rating AAA AA+ AA AAA+ A ABBB+ BBB BBBBB+ BB+ BB BB BBBBB+ B+ B B BBBGSAM CG12+ GSAM CG12+ GSAM CG12+ GSAM CG12+ GSAM CG12+

Internal CG 1A 1B 2A 2B 3A 3B 4A 4B 5A 5B 6A 6B 7A 7B 8A 8B 9A 9B 10A 10B 11A 11B 11C 12A 12B 12C 13 14

Using the one-year Probability of Default (PD) of SCBs credit rating scale
(Credit Grade CG) which is approved for AIRB under Basel II, SCB has determined an equivalent S&P rating for each of its internal Credit Grades

30

Appendices: 4. Portfolio Management

31

Portfolio Management Team

Portfolio Management (PM)

Assist in providing capacity to facilitate client growth strategy Develop and implement global credit treasury disciplines Non-revenue generation centre, reflecting the Banks philosophy that PM is to support core client business growth

Risk Distribution

Sits on private side and utilises both public and private debt capital markets Distributes on a single-name through to highly diversified portfolio basis Diversified transactions have referenced both loan and trade finance assets

Operations

24 personnel across major global business hubs: Singapore 17, London 3, Hong Kong 3, Mumbai 2 6 dedicated Transaction Management and Reporting personnel

32

Award Winning Balance Sheet CLO Transactions

Start CLO and Sealane (Trade Finance) Programs from Wholesale Banking Portfolio Management

These transactions have received numerous accolades in recognition of the robust structure and unique opportunity offered to investors

Start IV

The Asset Triple A Asian Awards 2008 Highly commended Deal

The Asset Triple A Asian Awards 2007 Best Cross-Border Securitization Deal

The Banker Magazine Deal of the Year 2007 (Singapore)

FinanceAsia Achievement Award 2007

Sealane (Trade Finance)

Best Securitisation Deal of the Year Asiamoney Best Securitisation Deal of the Year Global Trade Review Deal of the Year 2007 (Asia Pacific)

Start III

FinanceAsia Achievement Award 2006 Best Securitisation, Best Structured Product Deal The Asset Triple A Asian Awards 2007 Best Structured deal, Best Synthetic CLO

Trade Finance Magazine Deal of the Year 2007

Start II

AsiaRisk Award 2006 Deal of the Year The Asset Triple A Asian Awards 2007 Best Structured Deal, Best Synthetic CLO

The Banker Magazine Singapore Deal of the Year for 2008

Start

FinanceAsia Achievement Award 2005 Best Structured Product Deal

33