6
Non-interest inc. operating inc. 58
38 43
50 Cost income
31 46
47 40
Net interest margin 1.79
1.79 1.68
1.79
GAAP ROE 12
9 5
13 Cash ROE
15 12
8 16
Loans deposits 60
60 59
58
Most key operating ratios better than a year ago
2Q 2003
2Q 2004
1Q 2004
a Excluding exceptional gains of 497m in 2Q04
a
2Q 2004
NPL ratio 3.0
3.0 5.9
4.6 Loan and non-trading debt securities
deposits 81
81 77
78
7
599 588
634 651
1,285 1,216
1,159
560 628
1.79 1.79
1.81 1.72
1.68 1.87
1.79 1.77
1.78
1H 2003
2H 2003
1H 2004
1Q 2Q
3Q 4Q
1Q 2Q
Net interest margin
Interest income highest in seven quarters, margins steady
Sm
2003 2004
8
Customer loans 9 higher than a year ago, loan mix improves
2,883 2,915
2,915 65,053
59,940 61,019
61,420 62,429
2,774 3,275
68,328 65,344
64,335 63,902
62,714
Jun Sep
Dec Mar
Jun
Sm
2003 2004
DTDB loans
4
9
458 394
960
275 183
241 153
342 618
374 510
213 121
44 44
13 21
25 28
13 57
46 41
240 240
277 251
259 160
517 1,534
405 902
632 950
425 525
424 448
873 58
38 54
40 44
47 43
43 43
45 50
300 600
900 1200
1500 1800
1H 2003
2H 2003
1H 2004
1Q 2Q
3Q 4Q
1Q 2Q
2Q
Recurrent non-interest income declined
as a result of difficult trading markets
Dividend rental Other income
Fee income
Sm
Non-interest income total income
2003 2004
a
a Excluding exceptional gains of 497m in 2Q04
a
a
10
1,068 1,078
1,224 891
1,396 4,824
2,686
1,047 1,004
1,370 1,403
1,518 1,168
1,061 775
880
2,115 3,982
3,039 1,552
379 65
453
8,806
2,059 2,742
2,481 2,438
2,065 1,822
4,801 4,434
2,005
1998 1998 2000 2001 2002 2003 1H
2004 1Q
2Q 3Q
4Q 1Q
2Q
Singapore Hong Kong
Sm
2003 2004
Retail wealth management sales moderate in 2Q
11
Treasury income muted by interest rate uncertainty
T
Difficult trading environment from interest rate uncertainty
T
Client activities remained strong, our business model is intact
T
Rise in DEaR was temporary, due to interest rate volatility and block purchase of SGS in June
Interest rate FX
Equity Diversification effect
Total 26.1
6.9 4.6
13.3 24.3
Sm
24.5 6.9
3.8 12.9
22.3
July 1, 2003 to June 30, 2004
April 1, 2003 to March 31, 2004
Average DEaR DEaR as at
June 30, 2004
39.8 6.7
6.2 14.3
38.4
12
Change
Consumer Banking
Enterprise Banking
Investment Banking
Treasury Markets Funding Portfolio
Central Operations
a
Total 2Q 2004
386 1Q 2004
183
189
13 104
181 1,056
384
182
176
191 1,266
348
153
169
88 81
145 984
38
30
20
36 72
Change
2
1
13
10 210
2Q 2003
Total TM 117
333 169
52 216
a Including Central Treasury Unit, DBS Vickers and DBS Asset Management and other subsidiaries and associates but excluding exceptional gains of 497m in 2Q04
Revenue by businesses Sm
Revenues for core activities continue to grow
75 23
246 87
232 17
13
We continue to maintain cost discipline
146 157
159 102
145 142
156 68
74 77
79 99
104 92
48 51
48 54
46 46
429 436
83 76
84 75
75 71
48 54
53 48
49 33
101 82
74 71
476
226 250
217 219
210 219
985
482 503
482 458
459 442
940 901
31 46
35 40
46 41
47 42
44 42
43
1H 2003
2H 2003
1H 2004
1Q 2Q
3Q 4Q
1Q 2Q
Staff Occupancy
Technology Revenue-related
Others
Cost Income
Cost average assets 1.17
1.20 1.16