Presentation: Building the Best Bank in Asia

BUILDING THE
BEST BANK IN ASIA
First Half 2001 Results Briefing
July 23, 2001

Performance


Mixed Results:
– Flat revenue growth
– Non interest income up 28.3%
– Investments and operating costs increased by 26.1%



Key financial ratios impacted

Our Achievements


Acquisition

– Vickers Ballas



Alliances
– TD Waterhouse
– CGNU Plc



Transformational Acquisition
– Dao Heng Bank



Internal Capabilities
–
–
–
–

Re-engineering of Processing & Services
Installation of our risk management platform
Introduction of sophisticated data analysis
Credit card operations

What Contributed To These Mixed
Results?
POSITIVE
POSITIVE (+)
(+)


Increase in noninterest income
Treasury
Funds
management
Capital Markets

NEGATIVE

NEGATIVE (-)
(-)


Weak loan growth
Housing
Corporate

Transitioning
Transitioning to
to Build
Build New
New Income
Income Streams
Streams

Operating Costs


Two key areas:

- Staf
- Technology related



Completion of major investments

Building our Competitive
Capabilities
Investing
Investing in
in People
People
&
& Infrastructure
Infrastructure

Enhancing
Enhancing our
our External

External
Capabilities
Capabilities

Building
Building an
an Asian
Asian
Franchise
Franchise

Building the Best Bank In Asia


Mixed results in 1st Half



Reflecting a Bank in transition



Implementing our pan-Asian strategy



Vision remains to
regional Franchise

create

a

strong

BUILDING THE
BEST BANK IN ASIA
First Half 2001 Results Briefing
July 23, 2001