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

2Performance Mixed Results: –Flat revenue growth –Non interest income up 28.3% –Investments and operating costs increased by 26.1% Key financial ratios impacted

3 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

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 POSITIVE (+) NEGATIVE (-)

5 Two key areas: -Staff -Technology related Completion of major investments Operating Costs

6 Building our Competitive Capabilities Investing in People & Infrastructure Enhancing our External Capabilities Building an Asian Franchise

7 Mixed results in 1 st 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

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