6
Asset quality, credit ratings among the best in Asia; DBS well-positioned for continued growth
Asset quality one of the best among Asian banks
2.2 NPL rate
94 Provision coverage
Strong credit ratings, balance sheet
Moody’s Aa2, SP’s and Fitch’s AA- credit ratings among highest of banks competing in Asia-Pacific
Tier 1 ratio: 10.6
Overall CAR: 14.7
7
Board of Directors reaffirmed policy of sustainable, progressively increasing dividends
Second Quarter 2005 dividend of 15 cents per share, up from 11 cents for First Quarter 2005
Total dividends of 26 cents per share for First Half 2005, up 44 from 18 cents per share a year-ago
Dividend policy reflects confidence in earnings prospects, ability to fund future growth, expansion
8
Business strategy delivering sustained growth
Improved asset mix, growing recurring income, repaired asset quality
Ten consecutive quarters of loan growth
Net interest income highest in 14 quarters
Record quarterly fee income
Customer franchise across the region delivering stronger bottom-line results
Rebalanced, more diversified business mix and earnings helped offset lower treasury earnings
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. DBS Bank accepts no liability whatsoever with respect to the use of this document or its contents.
July 29, 2005
Sustained growth in recurring income businesses
DBS Group Holdings 1H 2005 Financial Results
Presentation to Media and Analysts
This presentation is available at www.dbs.cominvestor
10
Sustained growth in recurring income businesses
T
Strong, broad-based growth in customer businesses
T
Mixed regional performance
T
Asset quality and capital efficiency further enhanced
11
Higher operating profit as income rises faster than expenses
change 1Q
2005 2Q
2005 2Q
2004 change
670 408
1,078
265 246
511 567
63 412
-
412 695
397 1,092
253 247
500 592
81 441
-
441 659
410 1,069
232 262
494 575
14 454
110
344 5
3 2
9 6
1 3
479 3
100
28 4
3 1
5
2 4
29 7
-
7
a
Sm
Net interest income Non-interest income
Operating income
Staff costs Other operating expenses
Operating expenses Operating profit
Provisions Net profit before goodwill
Goodwill amortisation
Net profit
a Excluding one-time gains of 497m
12
Half-year operating profit up 7 from 2H04
Sm
1,299 1,046
2,345
488 522
1,010 1,335
65 1,046
220
826 1,365
805 2,170
518 493
1,011 1,159
144 853
-
853 5
23 7
6 6
13 122
18 100
3 change
2H 2004
1H 2005
1H 2004
change 1,293
836 2,129
506 540
1,046 1,083
2 884
220
664 6
4 2
2 9
3 7
nm 4
100
28
a
Net interest income Non-interest income
Operating income
Staff costs Other operating expenses
Operating expenses Operating profit
Provisions Net profit before goodwill
Goodwill amortisation
Net profit
nm : not meaningful a Excluding one-time gains of 497m
13
Key quarterly ratios improve from 1Q
2Q 2004
2Q 2005
1Q 2005
1H 2005
2H 2004
a
Net interest margin
Non-interest incometotal income
Costincome
ROE
Loansdeposits
Loan + non-trading debt securities deposits
NPL ratio 1.80
36
46
10.4
68
89
2.2 1.78