22.1 Main operating subsidiaries
The main operating subsidiaries within the Group are listed below:
Effective shareholding Name of subsidiary
Country of incorporation 2014
2013
Commercial Banking DBS Bank Ltd
Singapore 100
100 DBS Bank Hong Kong Limited
Hong Kong 100
100 DBS Bank China Limited
China 100
100 DBS Bank Taiwan Limited
Taiwan 100
100 PT Bank DBS Indonesia
Indonesia 99
99
Merchant Banking The Islamic Bank of Asia Limited
Singapore 50
50
Stockbroking DBS Vickers Securities Holdings Pte Ltd
Singapore 100
100
Audited by PricewaterhouseCoopers network firms outside Singapore
The Group’s main subsidiaries are regulated banks and non-bank financial institutions. Statutory, contractual or regulatory requirements as well as protective rights of non-controlling interests may restrict the ability of the Company to access and transfer assets freely to or from
other entities within the Group and to settle liabilities of the Group. Since the Group did not have any material non-controlling interests as at the balance sheet dates, any protective rights associated with these did not give rise to significant restrictions in 2013 and 2014.
Refer to Note 35 for information on non-controlling interests.
22.1.1 Acquisition of interest in joint venture ACQUISITION OF HUTCHISON DBS CARD LIMITED SINCE RENAMED AS DBS COMPASS LIMITED
On 16 June 2014, DBS Bank Hong Kong Limited, an indirect wholly-owned subsidiary, acquired the remaining 50 stake it did not own in Hutchison DBS Card Limited since renamed as DBS Compass Limited for a cash consideration of 88 million HK 546 million from
Whampoa Limited Note 23. The acquisition resulted in the recognition of goodwill amounting to 27 million and intangible assets of 6 million. The Group equity accounted the profits of DBS Compass Limited up to 30 June 2014. With effect from 1 July 2014, DBS Compass
Limited was consolidated as a subsidiary.
22.2 Consolidated structured entities
The main structured entities controlled and consolidated by the Group are listed below. These entities are inactive as at 31 December 2014.
Name of entity Purpose of consolidated structured entity
Country of incorporation
Zenesis SPC Issuance of structured notes
Cayman Islands Constellation Investment Ltd
Issuance of structured notes Cayman Islands
The Group uses these entities for the issuance of rated credit linked notes and enters into credit default swaps to provide hedging on the credit risks of the reference portfolio. The Group has contractual arrangements which may require it to provide financial support. No financial
support was provided by the Group.
23 ASSOCIATES AND JOINT VENTURE
The Group In millions
2014 2013
Quoted equity securities, at cost
a
71 148
Unquoted equity securities, at cost 779
783 Sub-total
850 931
Share of post acquisition reserves 145
235 Total
995 1,166
a The market value of quoted associates amounted to 50 million 2013: 525 million
The Group’s share of income and expenses, assets and liabilities and off-balance sheet items of the associates and joint venture at 31 December are as follows:
The Group In millions
2014 2013
Income statement Share of income
222 367
Share of expenses 143
282
Balance sheet Share of total assets
1,700 3,937
Share of total liabilities 705
2,712
Off-balance sheet Share of contingent liabilities and commitments
46
Amount under 500,000
23.1 Main associates and joint venture