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A project of “Commercial Bank Management”

By
Syed Muhammad Abdul Rehman Shah

25-SE/MS-IBF2/FO9
MS Islamic banking and finance, IIIE
INTERNATIONAL ISLAMIC UNIVERSITY ISLAMABAD
A project of
“Commercial Bank Management”

A project of “Commercial Bank Management”

By
Syed Muhammad Abdul Rehman Shah
25-SE/MS-IBF2/FO9
MS Islamic banking and finance, IIIE
INTERNATIONAL ISLAMIC UNIVERSITY ISLAMABAD
 Emergence
Chartered
Bank(1858)

Standard Standard
Bank(18 Chartered
Bank(1969)
53)
A project of
“Commercial Bank Management”
By
Syed Muhammad Abdul Rehman Shah

25-SE/MS-IBF2/FO9
MS Islamic banking and finance, IIIE
INTERNATIONAL ISLAMIC UNIVERSITY ISLAMABAD
An International Bank
Head Quarter : London Historical
Standred Ch =Bank of Review
British South Africa + the
Chartered Bank of India,
Australia and China. Of the
two banks,(1969)
Chartered Bank is the older having
been founded in 1853 following the
grant of a Royal Charter from Queen Historical Review
Victoria.
The Chartered Bank opened its first
branches in 1858 in Chennai and
Mumbai.
Singapore
Hong Kong
 Achievement
Bank Notes
•Over the following decades both the
Standard Bank and the Chartered Bank
printed bank notes in a variety of countries
including China, South Africa, Zimbabwe,
Malaysia and even during the siege of
Makeking in South Africa. Today Standard
Chartered is still one of the three banks which
prints Hong Kong's bank notes.
In 1999, Standard Chartered acquired the
global trade finance business of Union
Bank of Switzerland. This acquisition
makes Standard Chartered one of the
leading clearers of dollar payments in the
USA. Standard Chartered also opened a
new subsidiary, Standard Chartered Nigeria
Limited in Lagos, acquired 75 per cent of
the equity of Nakornthon Bank, Thailand;
and agreed terms to acquire 89 per cent of
the share capital of Metropolitan Bank of
the Lebanon.
• Standard Chartered expanded its network, re-
opening in
Vietnam in 1990,
Cambodia and Iran in 1992,
Tanzania in 1993 and
Myanmar in 1995.
With the opening of branches in Macau and
Taiwan in 1983 and
1985 plus a representative office in Laos (1996),
>Standard Chartered now has an office in
every country in the Asia Pacific Region with
the exception of North Korea.
Standard Bank opened for
business
In 1892 the in Zimbabwe,
Mozambique in 1894,
Botswana in 1897,
Malawi in 1901
Zambia in 1906
Kenya, Zanzibar and the Democratic Republic of Congo (D.R.C.),
in 191
In Asia the Chartered Bank expanded opening offices
Myanmar in 1862
Pakistan and Indonesia in 1863,
the Philippines in 1872,
Malaysia in 1875,
Japan in 1880
Thailand in 1894.
Recent alliances and developments
In 2000, Standard Chartered acquired Grindlays Bank from ANZ Bank, increasing its
presence in private banking and further expanding its operations in India and Pakistan.
On 15 April 2005, the bank acquired Korea First Bank, beating HSBC in the bid. Since
then the bank has rebranded the branches as SC First Bank.

Standard Chartered completed the integration of its Bangkok branch and Standard
Chartered Nakornthon Bank in October, renaming the new entity
Standard Chartered Bank (Thailand).
Standard Chartered also formed strategic alliances with Fleming Family & Partners to
expand private wealth management in Asia and the Middle East,
Standard Chartered completed the
integration of its Bangkok branch and
Standard Chartered Nakornthon Bank
in October, renaming the new entity
Standard Chartered Bank (Thailand).
Standard Chartered also formed
strategic alliances with Fleming
Family & Partners to expand private
wealth management in Asia and the
Middle East,
Mission Statement & Brand
Values
Mission Statement:
“To offer outstanding value to
our customers by providing
knowledgeable, efficient and
reliable services in a personal,
helpful and responsive manner.”
Brand Values:
From the above mentioned mission statement
the bank has developed some very deep-rooted
brand values.
Employees are Well Known about Customer
Behaviour….Major value spreaded over 150
years….
Courageous
International
Creative
Trustworthy
 Departments of Standard
Chartered Bank
　
There are various departments in
this bank due to the wide range of
services that it offers to its
customers. The major departments
that I was able to learn about are:
 Personal Financial Services
Department:
 This department basically consists of 4 Personal
Financial Consultants (PFC’s).
 They have the task giving all sorts of financial
services to the client.
 Customer can be asked for information about any
product.
 It is basically there job to assist the customer in
any way possible.
 Their task also includes opening all types of
accounts and letting customers know of the best-
suited option for them.
 Corporate Department

 Dealt with all matters related to corporate

accounts.
 By corporate accounts refer to all the
companies that have opened accounts of their
entire staff.
 This department also has to achieve a certain
target of getting a certain number of corporate
customer.
 SCB has corporate accounts of US Embassy,
Australian High Commission etc.
Cash Management and Remittances
 This department is mainly concerned with the most
critical and nerve wracking work in the entire
bank.
 This department includes the management of all
cash related activities.
 The management of funds and the transfer of
money within the bank is also managed by this
dept.
 The additional services that this dept performs are
money transfers, issuing new check books, making
drafts etc.
 Credit Card Department

 This dept is basically related to the credit

cards.
 There is a Visa card and a Gold card that
is being offered.
 This dept also manages its own
collections of bad debts or people who
pay late.
 So it is a relatively self-sufficient dept.
 Priority Banking:

 Customers who can open a minimum current

account for RS. 1 million or who open accounts
of at least 2 million rupees in case of savings
account.
 Priority banking solely deals with customers who
fit the above-mentioned criteria.
 Separate teller that is only for Priority Customers.
 Finding such clients and making them open
accounts with SCB is also the task of this
department’s staff
 Telemarketing

 Deals mainly with all telemarketing activities.

 They provide information regarding the
banks products ,account balances , credit card
limits etc.
 This department provides further facilitation
by helping get clients for Credit cards,
Personal loans and Auto Loans.
 Customer complaints are also made to this
department if they are via telephone.
 Auto Loans
 This dept basically deals with all Car
financing loans.
 This dept. also has a fully equipped sales
team like the Personal loan dept.
 It is their job to get customers to finance
their cars.
 Standard Chartered Offering
Different Products

 Finance Lease

 Operating Lease

 Auto Leasing

 Bemisaal Investment Certificates

Finance Lease

They tailor lease financing facilities to suit customer's

individual needs.
Lease periods vary from 3 years to 5 years.
Operating Lease

Standard Chartered Leasing provides

operating leases for generators and
vehicles especially for their customers.

Under an operating lease, Standard

Chartered Leasing insures and
maintains the leased assets, while the
customer uses it on a rental basis.
Auto lease

Standard Chartered Leasing Auto

Lease offers flexible product range
personalized to suit the specific
requirements and financial needs of
individual customers..
Bemisaal Investment Certificates

Standard Chartered Leasing offers

a perfect investment opportunity of
Bemisaal Investment Certificates.

These certificates offers security,

amazing returns as well as
liquidity to both individual and
corporate customers.
MAIN SERVICES
 
Consumer Banking:
 
Standard Chartered provide Mortgages, Credit Cards,
Personal Loans, Auto Loans.
They offer 24-hour Phone Banking, eStatements, SMS
Banking, ATM Cards and VISA Debit Cards, as well as
Online Banking .  

Wholesale Banking:
This banks also provide services to large corporate clients,
mid-sized companies, real estate developers and investors,
international trade finance businesses 
Islamic Banking
 
Standard Chartered dedicated
Islamic Banking team provides
comprehensive Islamic banking
services and a wide range of
Shariah compliant financial
products that are based on Islamic
values.
 Private Banker Award
PrivateBanker
International Awards
2008
Outstanding Private
Bank in Asia Pacific
 Global Finance
Global Finance
Stars of China
Awards 2008

Best SME Lending,
Foreign Bank in
China
 
 Financial Advisor Award
CNBC Financial
Advisors Award
2008.
Best Financial
Advisors Award
amongst Banks in
India
Wholesale Banking awards
 
The Asset Triple A Asian
Awards 2008
Best Transaction Bank in
Korea - SC First Bank
Best Cash Management
Bank in South Asia
Best Trade Finance Bank
in Korea
Best Sub-Custodian in
Korea
Best Domestic Custodian
in Korea
Trade Finance Awards for Excellence
Best Trade Finance Bank
in Sub-Saharan Africa -
Global
Best Trade Finance Bank
in Middle East and North
Africa - Global (with
HSBC)
Best Soft Commodity
Finance Bank - Global
Best Trade Finance Bank
in Singapore
Best International Trade
Finance Bank in India
ASSET ASIAN AWARD
 Financial results
(Five years)
Amounts are in Millions
Years 2005    2006    2007    2008    2009
 
Profit after Tax            4,507  5,709  2,767   630   669

Net Interest income           5,276   10,336   16,192  1,419   16,284

Non Interest Income        2,450  3,687  6,147  6,566  6,883

Total Assets            111,668 246,318 255,545 264,617 312,874

Total Equity            8,406   40,230   43,066   42,757 47,74

Total Debt             103,262 206,088 212,479 221,860 265,128

 Total Assets   
350000

300000

250000

200000

150000
Total Assets   

100000

50000

0
2005 2006 2007 2008 2009
 Total Equity Total debt
300000
60000

250000
50000

200000
40000

Total Equity 150000

30000

100000 Total debt

20000

50000
10000

0
0 2005 2006 2007 2008 2009
2005 2006 2007 2008 2009
Non-mark-up income of the
bank has shown a growth
over the last 5 years.

Non Interest Income

8000

7000

6000
Growth of 4.8%----in----
FY09. 5000
Non Interest Income
4000

3000

2000

1000

0
2005 2006 2007 2008 2009
 Net Interest income
Net Interest income  18000
         
2005 5,276 16000
 
2006 10,336 14000
 
12000
2007 16,192 
10000 Net Interest income
2008 1,419  
8000
2009 16,284
6000

4000

2000

0
2005 2006 2007 2008 2009
The overall profitability of the
Profit After Tax
bank has shown a declining
6000
trend over the last 4 year. There
was a major decline in the profits 5000
of the bank in FY07. They
declined from Rs 5,709 million in 4000
FY06 to Rs 2,767 million in
Profit After Tax
FY07. They further declined in 3000

FY08 to Rs 630 million, and have

shown a slight improvement in 2000

FY09 to Rs 669 million. All this

has contributed to declining EPS 1000

of the company to Rs 0.17 in

0
FY09 from Rs 3.06 in FY05. 2005 2006 2007 2008 2009
 EARNING RATIOS:
ON THE EARNINGS SIDE, THE DIFFERENT EARNINGS RATIOS HAVE SHOWN A DECLINING TREND OVER THE LAST 5 YEARS.
THE MAJOR REASON FOR THIS HAS BEEN THE DECLINING PROFITS AFTER TAX OF THE BANK.

RETURN ON EQUITY

2070

2060

The ROE declined from levels 2050

2040
of 53% in FY05 to 17.8% in
2030
FY07 and then further declined
2020 Return on Equity (%)
to 3.5% in FY09. Also the year
2010
return on deposits has declined
2000
from 5.39% in FY05 to 0.32%
1990
in FY09 1980

1970
1 2 3 4 5
EARNING RATIOS: Return on Deposit

2011
2010
2009
2008
2007
Return on Deposits (%)
2006 year
2005
2004
2003
2002
1 2 3 4 5
 ROA

2010

2009

ROA has similar trend to 2008

ROE.
2007

It has declined from 3.9% in

2006 Return on Assets (%)
year

FY05 to 0.25% in FY09. 2005

2004

2003

2002
1 2 3 4 5
Risk management in Standard Chartered bank.

Operational risk is the risk of direct or

indirect loss due to an event or action resulting from the
failure of internal processes, people and systems, or
from external events. The Bank seeks to ensure that key
operational risks are managed in a timely and effective
manner through a framework of policies, procedures and
tools to identify, assess, monitor, control and report such
risks.
Risk management in Standard Chartered bank

ORC (Operational Risk Committee) is

also responsible for ensuring adequate and
appropriate policies and procedures are in
place for the identification, assessment,
monitoring, control and reporting of
operational risks.
Risk management in Standard Chartered bank

Compliance and Regulatory risk includes the

risk of non-compliance with regulatory
requirements. The Compliance and Regulatory
risk function is responsible for establishing and
maintaining an appropriate framework of
compliance policies and procedures.
Compliance with such policies and procedures is
the responsibility of all managers.
Risk management in Standard Chartered bank

Legal risk is the risk of unexpected loss,

including reputational loss, arising from
defective transaction or contracts, claims being
made or some other event resulting in a liability
or other loss for the Bank, failure to protect the
title to and ability to control the rights to assets
of the Bank (including intellectual property
rights), changes in the law or jurisdiction risk.
Risk management in Standard Chartered bank

The Bank manages legal risk through Legal &

Compliance function, Legal risk policies and
procedures and effective use of its internal and
external lawyers.
Risk management in Standard Chartered bank

Reputational risk is any material adverse

effect on the relations between the Bank and any
one of its significant stakeholders.

It is Bank policy that the protection of the

Bank's reputation should take priority over all
activities including revenue generation at all
times