14
Key ratios improve on year
Net interest margin Fee income total income
Non-interest total income Costincome ratio
ROE Loansdeposit
NPL ratio
Excluding one-time gains
2.18 22
33 45
12.2 66
1.7 2.17
22 31
44 12.3
67 1.8
2.06 22
28 49
8.8 68
2.1 4Q
2006 3Q
2006 4Q
2005 2006
2005
2.20 22
33 44
12.3 66
1.7 1.91
23 32
47 9.7
68 2.1
15
Interest income at annual and quarterly record
Sm
2005
Net interest margin
2,507 2,691
2,943 3,591
932 912
897 850
800 746
712 685
2.18
1.88 1.87
1.91 2.20
2.17 2.23
2.23 2.06
1.92 1.84
1.82
2003 2004 2005 2006
1Q 2Q
3Q 4Q
1Q 2Q
3Q 4Q
2006
16
Loans up 9 on year
Sm
DTDB loans
86,630 85,254
83,410 78,818
62,424 67,216
69,659 71,055
78,712 78,776 79,462
65,048 2,915
Mar Jun
Sep Dec
Mar Jun
Sep Dec
Mar Jun
Sep Dec
4 3
4 2
11 1
1 6
2
2004 2005
2
2006
17
855 751
330 526
114 129
47 40
153 134
87 104
79 72
304
131 108
10 33
18 18
33 5
27 7
293 296
262 241
242 274
229 1,155
986 933
825 33
31 28
34 33
33 34
32 41
40 37
29
2003 2004 2005 2006 1Q
2Q 3Q
4Q 1Q
2Q 3Q
4Q
Full-year fee income up 17 on broad-based growth
Dividends and rentals Other income
Fee income
Non-interest income total income
1,767 1,788
1,395
Sm
353 421
307 314
420
2005 457
1,753
408 468
2006
Excluding one-time gains
18
2,905 575
1,262 962
653 931
2,847 3,808
752 653
868 254
253 52
44 53
121 41
41 612
247 429
695 680
1,245 514
603 683
1,249 1,157
2,492 4,334
5,908
2004 2005
2006 1Q
2Q 3Q
4Q 1Q
2Q 3Q
4Q Sales all products
S’pore 3,874
3,560 3,476
963 794
1,128 675
1,031 786
718 942
HK 5,368
3,868 3,436
1,103 1,070
914 782
886 743
868 938
Fees unit trusts and bancassurance only S’pore + HK
119 129
170 32
35 30
32 42
38 53
37 Structured deposits
Unit trusts Bancassurance
Wealth management fees improve on year as unit trust sales rise
9,242
7,428
Sm
1,864 2,042
1,457 1,917
2,066 6,912
1,529 1,586
2005
1,880
2006
19
Full-year cost-income ratio at 44
Sm
1,801 1,956 2,026
2,369
627 486
484 505
551 564
594 584
45 44
44 44
44 49
48 43
47 47
44 42
2003 2004 2005 2006 1Q
2Q 3Q
4Q 1Q
2Q 3Q
4Q
CostIncome
2005 2006
12,670 12,907 Headcount
12,144 11,454 12,728 11,649 12,090 12,562 12,728
12,907 12,673 12,453
317 306
Staff expenses Sm 876 993
1,052 265
253 255
279 1,244
300 321
Cost-income ratio excluding one-time gains
20
All business units record strong growth in profit before allowances
2006 YoY
1,294
728
801
458 Sm
50
42
30
98 Consumer Banking
Enterprise Banking
Corporate and Investment Banking
Global Financial Markets
Profit before allowances is total income excluding one-time gains less expenses
21
Franchise delivering higher returns
T
Operating trends sustained
T
Improved performance in Hong Kong
T
Balance sheet remains strong
22
Hong Kong’s 4Q profit before allowances up 39 on year and 4 on quarter
Sm
11 2
4 7
4 5
62 16
4 39
16 39
4Q 2006
YoY QoQ
290 105
395 171
224 29
163 Net interest income
Non-interest income Income
Expenses Profit before allowances
Allowances for credit other losses Net profit
Figures for Hong Kong geographical basis and converted to S using monthly closing rates. Based on Singapore GAAP. Excluding one-time gains
23
Hong Kong’s full-year net profit up 30
Sm
21 18
20 2
39 100
30 2006
YoY
1,145 377
1,522 668
854 100
626 Net interest income
Non-interest income Income
Expenses Profit before allowances
Allowances for credit other losses Net profit
Figures for Hong Kong geographical basis and converted to S using monthly closing rates. Based on Singapore GAAP. Excluding one-time gains
24
Hong Kong’s key ratios better on year
Net interest margin
Non-interest total income
Costincome ratio
ROA
Loansdeposit 2.18
25
52
1.00
79 2.53
25
44
1.26
73 2.42
20
53
0.94
79 2.49
25
44
1.22
74 2.44
27
43
1.27
73 4Q
2006 3Q
2006 4Q
2005 2006
2005
Excluding one-time gains
25
Franchise delivering higher returns
T
Operating trends sustained
T
Improved performance in Hong Kong
T
Balance sheet remains strong
26
NPL rate improves to 1.7
1.7 1.8