EARNINGS PER ORDINARY SHARE Continued INCOME TAX AND DEFERRED TAXATION

DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARY COMPANIES 9

2. EARNINGS PER ORDINARY SHARE Continued

The effect of the exercise of DBSH share options and conversion of DBSH Non-voting CPS and DBSH Non-voting redeemable CPS on DBSH Group’s net profit attributable to members is as follows: DBSH Group In S’million 2002 2001 Net profit attributable to members 1,017 997 Less: Preference dividends 20 21 Net profit attributable to members after adjustment of preference dividends 997 976 Adjustment to net profit arising from: i Full conversion of DBSH Non-voting CPS 5 6 ii Full conversion of DBSH Non-voting redeemable CPS 15 15 Adjusted net profit attributable to members b 1,017 997 Add: Goodwill amortisation 278 133 Adjusted net profit attributable to members excluding goodwill amortisation c 1,295 1,130 Diluted Earnings Per Ordinary Share Cents ba 66 74 Diluted Earnings Per Ordinary Share excluding goodwill amortisation Cents ca 84 84 Note: 1 Figures for Year 2001 have been restated to reflect the adoption of Statement of Accounting Standard 12 “Income Taxes”. Details of which are set out in Appendix V Note 3. DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARY COMPANIES 10

3. INCOME TAX AND DEFERRED TAXATION

The taxation charge in respect of profit for the financial year is as follows: DBSH DBSH Group In S’million 2002 2001 2002 2001 Current taxation - current year 424 22 350 238 - prior years’ underover provision - 3 Deferred taxation - origination and reversal of temporary differences 48 21 - reduction in tax rate - - 15 2 - effect of adopting SAS 12 - - - 6 - prior years’ underover provision 1 Total 423 22 284 250 Note: 1 : Amount under S500,000 The deferred creditcharge in the profit and loss account comprises the following temporary differences: DBSH DBSH Group In S’million 2002 2001 2002 2001 Accelerated tax depreciation - - 43 7 Provision for loan losses - - 25 14 Other temporary differences 5 5 Deferred taxation charged to profit and loss account 63 12 The tax on DBSH Group’s operating profit differs from the theoretical amount that would arise using the Singapore basic tax rate as follows: DBSH DBSH Group In S’million 2002 2001 2002 2001 Operating profit 1,923 166 1,403 1,291 Prima facie tax calculated at a tax rate of 22 2001: 24.5 423 41 309 316 Effect of different tax rates in other countries - - 35 14 Effect of change in tax rate 15 2 Income not subject to tax - 20 25 57 Income taxed at concessionary rate - - 86 62 Non-tax deductible provisions - - 59 35 Goodwill amortisation - - 61 33 Others 1 16 27 Taxation charged to profit and loss account 423 22 284 250 DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARY COMPANIES 11

3. INCOME TAX AND DEFERRED TAXATION Continued