Presentation: Building the Best Bank in Asia

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BUILDING THE

BEST BANK IN ASIA

First Half 2001 Results Briefing

July 23, 2001

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2

Performance

 Mixed Results:

– Flat revenue growth

– Non interest income up 28.3%

– Investments and operating costs increased by 26.1%

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3

Our Achievements

 Acquisition

– Vickers Ballas

 Alliances

– TD Waterhouse – CGNU Plc

 Transformational Acquisition

– Dao Heng Bank

 Internal Capabilities

– Re-engineering of Processing & Services

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4

 Weak loan growth - Housing

- Corporate  Increase in

non-interest income - Treasury

- Funds management

- Capital Markets

What Contributed To These Mixed

Results?

Transitioning to Build New Income Streams_{Transitioning to Build New Income Streams}

POSITIVE (+)

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5

 Two key areas:

- Staf

- Technology related

 Completion of major investments

Operating Costs

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6

Building our Competitive

Capabilities

Investing in People

& Infrastructure

Investing in People

& Infrastructure

Enhancing our External

Capabilities

Enhancing our External

Capabilities

Building an Asian

Franchise

Building an Asian

Franchise

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7

 Mixed results in 1st Half

 Reflecting a Bank in transition

 Implementing our pan-Asian strategy

 Vision remains to create a strong

regional Franchise

Building the Best Bank In Asia

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