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Wealth Management EAMEReflections December 2017

What’s insideMessage from Gautam Duggal 01 Lorem Ipsum xx Lorem Ipsum xxA year full of achievements 02 Lorem Ipsum xx Lorem Ipsum xxLorem Ipsum xx Lorem Ipsum xxLorem Ipsum xxLorem Ipsum xxFor internal circulation only

Gautam’s MessageI would like to take this advisory set up and last We haveopportunity to thank but not the least is focusing achieved a lot ofeach and everyone of on governance & controls. what we set outyou for your dedication “We have achieved a lot of to do and we asand hard work through what we set out to do and a team believethe year. Your efforts we as a team believe this this will be anhas helped in posting a will be an ongoing journey ongoing journeystrong performance for of constantly improving our of constantlywealth management in the efficiencies & providing improving ourregion. We have shown digital platforms.“ efficiencies &great progress YoY and I providing digitalam sure we will keep this Apart of some key enablers platforms.momentum through 2018. due to come online in early 2018, our focus for 012017 has been an eventful next year should be onyear and there have been execution, communication,crucial wins for the region engagement, ambition &which sets a good platform taking accountability to afor the wealth management next level. While these arefor 2018. Reflecting on our the key areas to focus on,2017 strategy , we had set the most important agendaout our Key strategic pillars which goes in conjunctionthat we would focus: First is with our plans is our strongUAE turnaround, second is governance, conduct andto capitalize opportunities in work ethics, which providesAfrica, third is to enhance the right environment forour proposition and fourth us to do business in ais to capitalize on our sustainable manner.

InvestmentsInnovation inInvestmentDriving investment business by continuously developingwide range of product options that suit our client needs Middle East Pakistan Stellar performance of UAE & Bahrain A smash hit year for Managed investment Investment Products across UAE and Bahrain gave a massive contribution in the overall 10 product launches to date performance of the region. Both markets have contributed to a stunning AUM already achieved their full year budget as increase of 129% from Sep’16 early as H1 and forecasting to end the year in ($48m) to Sep’17 ($110m). a very strong position. Thanks to the frontline in these respective countries who have Launch of Bachat Units significantly stepped up client engagement which has helped in achieving this. Bachat Units were launched in collaboration with MCB Launch of Enhanced Smart Savings Plan Arif Habib Savings and Investments Limited in Access to all funds were provided on platform. response to the changing Now clients enjoy the flexibility to invest industry dynamics and into any SCB approved fund for UAE, thus regulatory tightening where removing the restriction of 30 specific funds distribution model is being allowed in the previous subscription form. This fundamentally challenged with resulted in improved operational efficiency guidelines around commission and simplified processes which ultimately led waiver to ensure maximum to a better client experience. allocation for the client. Launch of Enhanced Portfolio Statements Plan Launches The enhanced statements provide access MI capitalize on the Islamic to all funds on platform resulting in the trend with 7 back to back flexibility to invest and improved readability. limited subscription plan The enhanced statements capture important launches in collaboration with details of the client’s investments and gives various fund houses which them an accurate picture of the gain or have been well received by loss in portfolio along with a clear record of customers. portfolio activity.2

Europe KenyaLaunched of First Basket Fund Cross Currency Lending ActivatedLinked Note Clients now enjoy FCY borrowingFirst basket structure was launched rates at a better rate on the back ofto Private and Priority clients which their KES Bond portfolio.provided incremental participation tothe underlying fund basket’s positive Portfolio Level Monitoring forperformance, along with 100% return Wealth Management Lending wasof capital at maturity. The AUM successfully launched across theinvested since September was $21 Middle East which makes the SCBmillion. proposition the best in the Retail Banking Market. As a first across theManaged Investments Post Healthy SCB Group for Retail Clients, lendingGrowth against India NRE/FCNR deposits was also introduced in the UAE.London and Jersey BC have seengrowth of 68% in Funds AUM, and the Wealth Lendingsuccess is a result of working closelywith Global WM and Fund Managers We increased our disbursed lendingto deliver the right solutions to our limit from an exit of $6 mn in 2016clients, whether Retail or Private to the current projected close of $Banking. 26mn in 2017. This has enhanced our clients’ total return and diversified their investments as 90% of the utilized funds have been reinvested. With this encouraging result, there will be more opportunities for the business in 2018. 3

WMPSElevate clientexperienceRaising the bar in driving client centric initiatives UAE Pakistan Online FX (OFX) goes live in Launch of INSIGHT 1.0 – Today, Tomorrow August & The Future The Online FX (OFX) project WMPS, in partnership with Segments, on Online and Mobile Banking launched Insight 1.0 in February 2017. is off to a great start delivering Designed by WMPS, this tool aims to key enhancement to the current mobilize the FCY Deposit Portfolio into WM I-banking including: Products covering Fixed Income, Banca & Mutual Funds. USD 200k revenue was Real Time 24x7 FX Rates for all generated out of this segment launch. cross currency transfers (Book Transfers, Local Bank Transfers Great collaboration and Cross Border Transfers). The rates are streamed to WMPS continuously carried out different the channels from SCALE activities to penetrate ETB and NTB clients. and margins can be added or This is in strong collaboration with Frontline subtracted to the base rate and Analytics team. All the activities were by country using the margin strongly tracked via CEMS. The ultimate goal maintenance capability on of these exercises is to help us in activating SCALE. over 5800 NTPs/NTBs with a revenue of USD 2mio throughout the fiscal year 2017. FX Order watch launched Unlocking the true potential Foreign Exchange (FX) Order Watch Service for Priority Close coordination and diligent efforts of the Banking was launched. FX WMPS Team along with exemplary support Order helps clients keep a from the frontline resulted in the successful track on foreign currency closure of deals every quarter with the total market movements without volume of USD 12mn FX transaction earning having to monitor the market us over USD 400K in revenue. continuously.  Additionally, there was an effective Pakistan Sukuk on advisory basis for Institutionalization of S2BX Pakistan clients in the branches to drive FX momentum by WMPS. All 11 Pakistan Government bonds and sukuks can branches are active in booking now be showcased to Pakistan nationals deals via branch ops. through the bond platform. Previously these were available on reverse enquiry only.4

NOTE:SHORTAGE OF SPACE. THIS SPREAD MAY NEED ANADDITIONAL PAGE Europe AfricaOTC Plus launched Fixed Income Roadshow makes wavesEurope Wealth Management The Fixed Income roadshow, held in Aprilhave extended their existing 2017, was a great platform for our thoughtproduct offering by launching leadership. Roop Barua (Managing Director,OTC Plus for London booked Head, Credit Products, WM) along withprivate clients. OTC Plus is a Kenny Coulter from the Regional Investmentnew and improved model for Advisory team, visited Ghana, Kenya,booking FX derivatives, suitable Zambia and Nigeria. A total of 57 clients andfor active derivatives user and the frontline team were taken on an excitingdirect access clients. OTC plus Fixed Income journey.will also be used in conjunctionwith Direct Access to the WMPS Kudos to team Ghanadesk for appropriate clients. Ghana received a congratulatory letterBond selector tool from Bank of Ghana for an exceptional performance as a Primary Dealer (PD) onEurope WM launched the the Lcy bond secondary market. What’sbond selector tool for UK and more, the market closed its first ever $7mioDubai PvB frontline. This handy FI deal from one client this year. Well donedesktop tool allows RMs & IAs team Ghana!to select from over 1600 multi-currency bonds across a large Foreign Exchangenumber of global issuers. Our digitization agenda is bearing fruits withNRE leveraged deposit 340 (16%) clients trading on RFQ. Wallet share deepening initiatives has increased FXOne of the most popular volumes, giving an incremental revenue ofproducts in H1 this year has +27% YoY.been the NRE leverageddeposits. There were 3 tranches cFliiexendtsIncome Roadshow: Breakfast withlaunched in H1 a total AUM of$245mio for London bookedclients. Clients used NDFs andInterest rate swapsto hedge the deposits – usingthe full capability of our WMPSUK products.  Interest rateswaps With interest rates risingfor the first time in years clientswere able to hedge using IRSbooked in London. In 2017YTD there have been 45 dealstotalling AUM worth $ 219 miocompared to $4 mio for full year2016. Fixed Income Roadshow: Roop and the RMs 5

InsuranceDriven to exceedexpectationsGrowing Bancassurance businessacross the region UAE Exclusive partnership with Zurich We entered a 10-year Exclusive Partnership with Zurich for savings and protection solutions. A comprehensive 2 week product training was conducted for over 130 staff from the Frontline Team. To officially unveil the partnership an event was organized for the management and Frontline Team. We are pleased to partner with Zurich to introduce best-in- class insurance solutions for our clients across the network in the Middle East Gautam Duggal Press Release Statement6

BSSaCignBncianPgaakncidesrtIaeGnmI’’sosnCCyEEoOOf ,thHeenaedwofSShCarBiaRhBp,roHdeuacdtsoifnSPCaBkiWstaMn, featuring Head of Pakistan AfricaRedefining Regular A winning streakPremium Proposition In April 2017 Standard Chartered InsuranceThe Bancassurance Agency stole the limelight at the AIG. KenyaProduct Team has focused Producer awards by winning several awardson launching higher including the Total Business award for theallocation products with producer that transmitted the highest amount oflower charges for clients business. The bank also walked away with thewhich in turn provides them Most Profitable Business award( the AIG MD’swith an earlier breakeven. special award) as well as the Runner up for NewThe Product Team also Business.launched two new Shariahcompliant products named Sanlam partnership in AfricaAl Mal Takaful and WadiahTakaful to boost the Takaful At the back of the 10-year partnership withportfolio in Pakistan Sanlam Emerging Markets late last year, Kenyaand to serve medium has rolled out its general insurance productsterm financial goals with (phase 1) such as Motor and Home insuranceelements of protection and solutions. In addition, we have also launched newsavings. Life Insurance solutions across Kenya, Ghana and Botswana for HVS. 7

Process EnhancementOur never endingquest for excellenceTo continuously improve internal processes that willpositively impact frontline and client experience Europe We are always seeking new ways to serve our clients better. The Europe Wealth Management team worked hard to streamline the pretrade process and documentation for UK Advised & UK booked professional clients who opted-up for structured products. These changes will help to drastically reduce turnaround time from two weeks to just one day. To make this happen the team conducted two trainings for frontline on roll-out of any new process/checklist, rolled out an enhanced frontline communication by including context to any process change to ensure clear awareness of the background and initiated regular monthly meetings between SAU and frontline teams to Identify challenges and fix issues that were raised.8

Mobile CIP Middle East, Africa & PakistanMarket View on-the-go 24/7 • Mastery Series relevant to new launches on processes. 11 sessions conducted YTD for UAE and Bahrain • Interactive online and mobile CIP (customer investor profile) tool launched to improve frontline and clients experience in UAE and Pakistan CIP/BIP Change Notifications to clients via Email/SMS now offered in Pakistan. The Bank’s suitability procedures require notifying a client of his/her investment risk profile. Now an automated confirmation of new CIP/BIP creation and prior to expiry will be auto-sent to clients via SMS and email. This will enhance client experience and eliminate manual effort and risks associated with manual handling of data. Launch of Market Views on-the- go 24/7 in 7 AME Markets. This exciting new capability provides clients instant access to our extensive array of house views in the form of reports, videos and summaries and offers them a wide range of benefits, around- the-clock: • Timely market insights so our clients can stay in tune with latest market developments • Convenient access to reports and videos through any chosen device – smartphone, tablet or laptop • Easy to view insights on different markets and asset classes such as equities, bonds, FX, commodities and alternatives • At-a-glance summaries with just one click • Downloadable detailed reports and video updates Launch of Vestima for Middle East and Africa Vestima is an electronic web-based order execution platform for Mutual Funds across Middle East and Africa. This enables significant improvement in TATs and is ensuring great Client Experience across the region. 9

Wealth PropositionFrontline engagementEmpowering theFrontlineStrengthening partnerships to get across key internalstakeholders UAE SCB Exclusive Event - Allianz Income & Growth Fund in Enhanced engagement Dubai between the Investment Advisors and Product Teams Africa with frontline including daily market updates and regular • In Kenya SCB WM hosted the annual external speaker events have circle art event auction. This prestigious led to positive momentum for event was attended by 30 ETB and 70 Investment Products in UAE. NTB clients. Also, the weekly roundtables In addition, FX team held in Priority Banking were launched with over Master Classes for RMs in 300 New-to-Wealth clients covered to date. Dubai and Abu Dhabi covering The team had also launched Employee the FX product suite by the Banking Bonus campaign in March 2017 Treasury Specialist. Treasury focusing on 30 EB Companies, with FTE Specialist has also created a list of about 30,000 clients. FX Revenue Calculator to help RMs gain greater independence • In Zambia, a successful Insurance sales in deciding margins. skills programme was conducted which ran for a week in July. Sanlam trainersInvitation for the Circle Art Auction in Kenya from South Africa spent valuable time with our frontline and provided them practical 10 information on selling Insurance products.

Pakistan• WM made a big splash at the Retail Hungama Awards 2017. SCBPL gathered at the CEO House on the August 11 to celebrate Pakistan’s Independence Day. The top performers were recognized for their contribution and a successful H1 was celebrated with great food, fun and festivities. WM won several awards including the award for redefining the Regular Premium proposition along with the top performing Insurance Specialist and Investment Advisor in H1 2017.• WM Role Plays and Banca Eidi Bazaar were successfully organized covering around 50 branches• WM Pakistan held the biggest CR event in Lahore where 80 of 2017 top performers were recognized. Representatives of our top two product providers UBL Funds and IGI Insurance presented views on the market and outlook for 2018 Retail Hungama Awards 2017 in PakistanCR event in Pakistan 11

Wealth Proposition Brand PromotionUnveiling capabilitiesDriving robust initiatives to promote a stronger brandawareness #BeLifeReady campaign launchedThematic Ads according to life’s stages UAE SSP Ad image Marketing campaign for WM products Early this year UAE launched a 2 month pilot campaign to raise awareness about our WM Proposition and maintain space for WM products in the leading print and digital channels. The campaign covered Smart Saving Plan (SSP), Motor Insurance and Travel Insurance products.12

UAE launched the #BeLifeReady D#uBgegLaiflepRreeasednyteinvgenthtefosresstsaifof nin Dubai – Gautamcampaign that ran from September #BeLifeReady event for staff in Dubaito November 2017, with an approachto raise financial awareness, andsubsequently promote wealth solutionsthrough ATL and BTL channels. Theplatform of ‘#BeLifeReady’ is primarilya digital media platform that attracts,engages and encourages clients toopt for our products and services. Aftergarnering a positive response, thecampaign was also expanded to othermedia channel such as print.Two internal staff events wereorganised as part of the campaign. Theevents attracted over 100 attendeeswho were educated on how to startplanning for their children’s education,retirement and other major life events.Almost 50% of the attendees requestedto be called-back by relationshipmanagers to discuss more aboutsolutions suitable for them. Kenya Wealth Management Campaign The “Who backs your bigger picture?” ATL / Digital Campaign was launched to clearly and succinctly communicate the bank’s capabilities in wealth management and value propositions. The multiple channels used to reach the target audience included print, out of home, radio, digital, EDMs as well as events and partnerships. 13

Wealth PropositionBrand PromotionPakistanLFC 125th anniversary celebration CampaignWealth Management Pakistan now offers clients I-Table in Pakistanwith a once in a lifetime trip to Anfield to be a partof LFC’s 125th anniversary celebrations. Clientscan enter the lucky draw by investing 2.5 Millionin a Wealth product (Funds, Single PremiumBancassurance, Fixed Income) or PKR 200,000in Regular Premium Bancassurance.i-TableThe Wealth Management Pakistan (WMPK) team in collaboration with Branding andMarketing Team Pakistan has initiated amarketing campaign in branches to increasevisibility of WM products. The interactive i-Tablewas installed at the Dolmen Mall Clifton Branchto inform clients about WM Investment andInvestment Linked products. The clients werehighly engaged while using the interactive screenof i-Table to navigate and seek information aboutthe product offerings.Airport Branding in KarachiIn March 2017 a highly successful marketing Airport Branding in Pakistancampaign was initiated at the Quaid-e- AzamInternational Airport Karachi. The main ideaof the campaign was to inform travelers aboutthe bank’s product features and offerings. Aspart of the Marketing Campaign, static posterswere placed on pillars at the high traffic arrivalwalkway of the airport.DIFC 2F impact wall DIFC impact wall Promoting Advisory 14 capabilities In the UAE, Wealth Management has taken over the DIFC impact wall to showcasing our Advisory capabilities, hence increasing our mindshare internally.

Wealth Management Webinar #pivot? theme Webinar imageA WM Webinar was organised toshowcase our thought leadership.Expert speakers Aditya Monappa, Head,Asset Allocation & Portfolio Solutionsand Manpreet Singh Gill, Head, FICCInvestment Strategy gave valuableinsights to the audience and took part ina Q&A that followed the webinar.#PIVOT?In December 2016 he Group Investmentstrategy team released 2017’sInvestment outlook theme called#PIVOT? Building on this investmenttheme, initiatives such as, sponsoredposts in LinkedIn and Arabian Businesswere rolled out. We were also present inseveral local and regional media acrossAfrica and Middle East. For internalvisibility we leveraged our own DIFC 2Fimpact wall. Brochures across the regionfor frontline and client use were alsodistributed. All of these initiatives werepart of our commitment to proactivelyreach out to the clients and cascade thebank’s house view.Making a powerful business statementStandard Chartered is proud to takea commanding position in one of themost widely read business magazine inAfrica. Positioning Standard Charteredas a thought leader in the WealthManagement space, we have leveragedthe Forbes Africa December 2017 –January 2018 issue. With GautamDuggal on the cover page, the articlesin the 16-pages supplement will featurecompelling stories across WealthManagement, including interviews of ourFund House partners, and HNWI clients.We will also enlighten readers aboutour digital journey and innovations forthe future. This initiative will help buildour Wealth Management brand bothinternally and externally. 15

Team SpiritTaking care of ourpeople and communityis our pride UAE WwoMrkTeerasmduinrinDguRbaaimpaadcakning Iftar Boxes for Introduction to the Well-being sessions A month of kindness DDuiwbaaili celebration at the DIFC office in The Wealth Management team came together in the holy month of Ramadan to be volunteers for a number of good causes, including packing Iftar boxes for workers. Health and Wellbeing sessions Our health has a direct bearing on our physical and mental wellbeing – which in turn has a profound influence in our professional life. A series of Well-being sessions was conducted for the WM team where health experts were invited to guide staff on topics such as managing stress, motivation at work and more. 10 sessions have been conducted so far and the feedback from staff has been positively glowing! Celebrating the festival of light The WM team celebrated Diwali - India’s biggest and most important festival. The team came to work wearing traditional attire and distributed special Diwali sweets and savories. Diwali, or Dipawali, gets its name from the row (avali) of clay lamps (deepa) that Indians light outside their homes to symbolize the inner light that protects from spiritual darkness.16

Pakistan GhanaHOPE Iftar’17 Launch of #MMEHOPE Iftar is an important part of our SCB Ghana has launched #MME-CSR activities. Every year the HOPE (Making Memorable Experiences)iftar gives us an opportunity to spend to drive ‘Creating memorablequality time with the less privileged experiences for staff, clients and allchildren and count our blessings. stakeholders. While this is not WMIn 2017, a HOPE Grand Iftar was specific, we were part of the focusorganized for 1500 children of HOPE group session, stress surveys andschool aged between 6-18 years old. Champions. We have all shared ourThe activity kicked off with classroom video pledge to join the ‘movement’training which provided the children of creating #MME - appreciating eachwith basic financial education to help other, delivering on our promise,them understand the importance of coaching and mentoring and more.money. This was followed by Iftaar The team also joined our client onand the distribution of giveaways and walks for breast cancer awarenessEid clothes by the CEO and the HOPE and sight.teamHajj & Umrah RemittancesWith USD 1bn outflow through Hajjand Umrah operators’ accounts everyyear, the WMPS team, with the helpof Business banking unit, initiated thisgreat opportunity. Going forward, itwould be huge opportunity for NTBsas well as CA inflow for branches.HOPE Iftar’17 17

Conduct and GovernanceThe essence ofour businessReinforcing the importance of conduct and governance Full day workshop with Two day session on Operational Excellency P&P Heads and WM (OE) BORM A Two day session on Operational Excellency On 09th October 2017, practitioner training was conducted for P&P a full day workshop with Heads and BORM from AME, on 10th and 11th participation of all the P&P October 2017. This session was facilitated by OE Heads and WM BORM practitioners from Singapore. from AME region was conducted in Dubai. The Workshop in Dubai workshop began with a from AME region short speech by Gautam Duggal in which he urged the P&P Heads and BORMs to be proactive in identifying the potential and emerging risk in their respective geographies to make business as compliant as possible. He also emphasized the need of close partnership between governance and business. involving P&P heads and WM BORM18

Conduct & Governance Series Regular sessions on ConductMonthly Conduct & Governance Regular sessions on Conduct andSeries covering WM AME staff have latest topics were initiated, with somebeen successfully running for over a of the key sessions being:year now. A recent survey conductedto check the relevance of this series • IT Matters - Embedding a Culture ofrevealed that 73% of the respondents Conduct held in March 2017.have rated it 4 and 5 stars on a scaleof 5 stars. • Importance of Information Security - Session for WM Staff across ME conducted in April 2017. • Conduct Pillars training by the Compliance team in May 2017. • Workshop on G&E Policy covering various teams in WM-UAE in June 2017. • Head of WM organised a conduct workshop for the WM team in September 2017 19

NOTE:MANUAL Clean up of images required. currentlythey are distorted We embrace our cultural differences and celebrate our international talents Gauttam Duggal