SHARE PREMIUM ACCOUNT NON-DISTRIBUTABLE RESERVES REVENUE RESERVE DIVIDEND PROPOSED

20

13.4 DBSH EMPLOYEE SHARE PLAN

The DBSH Employee Share Plan the “ESP” is intended to cater to all employees of the DBSH Group and associated companies of the DBSH Group who are not eligible to participate in the DBSH Share Option Plan, the DBSH Performance Share Plan or other equivalent plans. During the current and previous financial years, there were no DBSH ordinary shares granted to eligible employees pursuant to the ESP. When the shares are awarded, remuneration expenses are computed using the average purchase price adjusted for provision for diminution in value and recognised in the profit and loss account on a straight-line basis over the relevant performance period. 14 SHARE CAPITAL The share capital of DBS Bank at December 31, 2004, is as follows: In millions 2004 2003 Authorised 2,000,000,000 ordinary shares of 1 each 2,000 2,000 600,000,000 non-redeemable convertible preference shares of 2 each 1,200 1,200 300,000,000 non-voting convertible preference shares of 1 each 300 300 800,000 non-cumulative redeemable non-convertible perpetual preference shares of US0.01 each and each with a liquidation preference of US1,000 17,500 non-cumulative redeemable non-convertible perpetual preference shares of 0.01 each and each with a liquidation preference of 10,000 1,100,000,000 non-cumulative non-convertible perpetual preference shares of 0.01 each and each with a liquidation preference of 100 11 11 1,511 1,511 Issued and fully paid-up 1,962,302,697 2003: 1,962,302,697 ordinary shares of 1 each 1,962 1,962 11,000,000 2003: 11,000,000 non-cumulative non-convertible perpetual preference shares 0.01each Total 1,962 1,962 Amount under 500,000 15 RESERVES

15.1 SHARE PREMIUM ACCOUNT

In millions 2004 2003 Balance at January 1 10,134 10,134 Issue of ordinary shares for acquisition - - Balance at December 31 10,134 10,134 21

15.2 NON-DISTRIBUTABLE RESERVES

Non-distributable reserves comprise the following: 2004 In millions General reserve a Capital reserve b Total Balance at January 1, 2004 2,136 177 2,313 Appropriation from profit and loss account Note 15.3 97 - 97 Net exchange translation adjustments during the year - 44 44 Balance at December 31, 2004 2,233 221 2,454 2003 In millions General reserve a Capital reserve b Total Balance at January 1, 2003 1,951 110 2,061 Appropriation from profit and loss account Note 15.3 185 - 185 Net exchange translation adjustments during the year - 67 67 Balance at December 31, 2003 2,136 177 2,313 a The appropriation from profit and loss account relates to amounts transferred to the Reserve Fund to comply with the Banking Act. b The Capital reserve included net exchange translation adjustments arising from translation differences on opening net investments in foreign subsidiaries, associated companies and branches, and the related foreign currency borrowings designated as a hedge.

15.3 REVENUE RESERVE

In millions 2004 2003 Balance at January 1 1,841 1,506 Net profit after taxation 1,937 742 Transfer to general reserve Note 15.2 97 185 Amount available for distribution 3,681 2,063 Less: 21.58 2003 : 8.66 tax exempt ordinary dividends 423 170 6 on preference dividends of net of 20 2003: 22 tax paid 53 52 Balance at December 31 3,205 1,841

15.4 DIVIDEND PROPOSED

The financial statements for the year ended December 31, 2004 do not reflect the proposed final dividends to DBS Group Holdings Ltd, amounting to an estimated 269 million, which will be accounted for in shareholders’ funds as an appropriation of revenue reserves in the year ending December 31, 2005. 22 16 DEPOSITS AND OTHER ACCOUNTS OF NON-BANK CUSTOMERS In millions 2004 2003 Analysed by Currency Singapore dollar 61,905 56,562 US dollar 15,457 15,770 Hong Kong dollar 1,270 674 Others 6,259 4,287 Total 84,891 77,293 Analysed by Product Savings accounts include Autosave 41,585 39,429 Current accounts 9,533 8,498 Fixed deposits 28,322 25,556 Other deposits 5,451 3,810 Total 84,891 77,293 17 DEFERRED TAXATION The movement in deferred tax is as follows: In millions 2004 2003 Balance at January 1 115 112 ProvisionRelease during the year 21 3 Balance at December 31 94 115 Deferred income tax assets and liabilities are attributable to the following items: In millions 2004 2003 Deferred income tax liabilitiesassets Accelerated tax depreciation 28 28 Provision for loan losses 106 127 Other temporary differences 16 16 Balance at December 31 94 115 Deferred tax assets and liabilities are offset when there is legally enforceable right to set off current tax assets against current tax liabilities and when the deferred income taxes relate to the same fiscal authority. 23 18 OTHER LIABILITIES In millions 2004 2003 Balances arising from revaluation of financial instruments Note 34 10,130 8,114 Payable in respect of short sale of debt securities 2,805 1,286 Sundry creditors 638 866 Interest payable 498 390 Other payables Note 18.1 1,368 1,359 Total 15,439 12,015 18.1 Other payables includes 399 million 2003: 721 million of collateral received from external counterparties to cover a temporary shortfall in the valuation of a specific portfolio of derivative instruments over a pre-determined threshold. This is governed by a collateral support agreement. 19 OTHER DEBT SECURITIES IN ISSUE The following is a summary of the other debt securities in issue unsecured unless otherwise stated at December 31:

19.1 NEGOTIABLE CERTIFICATES OF DEPOSITS