Leverage Ratio Components of Leverage Ratio

DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES 5 LEVERAGE RATIO

5.1 Leverage Ratio

30 Jun 2017 31 Mar 2017 31 Dec 2016 30 Sep 2016 Capital and Total exposures m Tier 1 capital 42,604 41,934 40,909 40,468 Total exposures 540,583 532,725 532,674 519,221 Leverage Ratio 7.9 7.9 7.7 7.8

5.2 Components of Leverage Ratio

The following tables are disclosed in accordance with the templates prescribed in MAS Notice 637 Annex 11F and 11G. Leverage Ratio Summary Comparison Table 30 Jun 2017 Amount Item m 1 Total consolidated assets as per published financial statements 486,699 2 - 3 Adjustment for fiduciary assets recognised on the balance sheet in accordance with the - Accounting Standards but excluded from the calculation of the exposure measure 4 Adjustment for derivative transactions 9,478 5 Adjustment for SFTs 206 6 Adjustment for off-balance sheet items 49,772 7 Other adjustments 5,572 8 Exposure measure 540,583 Leverage ratio as at 30 June 2017 at Group level remained at 7.9 as compared to the previous quarter. Increase in Tier 1 capital was offset by increase in total exposures. Adjustment for investments in entities that are consolidated for accounting purposes but are outside the regulatory scope of consolidation A-16 DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES Leverage Ratio Common Disclosure Template 30 Jun 2017 Amount Item m Exposure measures of on-balance sheet items 1 On-balance sheet items excluding derivative transactions and SFTs, but including on-balance sheet collateral for derivative transactions or SFTs 458,916 2 Asset amounts deducted in determining Tier 1 capital 5,590 3 Total exposure measures of on-balance sheet items excluding derivative transactions and SFTs 453,326 Derivative exposure measures 4 Replacement cost associated with all derivative transactions net of the eligible cash 8,440 portion of variation margins 5 Potential future exposure associated with all derivative transactions 15,870 6 Gross-up for derivative collaterals provided where deducted from the balance sheet assets in accordance with the Accounting Standards - 7 Deductions of receivables for the cash portion of variation margins provided in derivative - transactions 8 CCP leg of trade exposures excluded - 9 Adjusted effective notional amount of written credit derivatives 3,040 10 Further adjustments in effective notional amounts and deductions from potential future exposures of written credit derivatives - 11 Total derivative exposure measures 27,350 SFT exposure measures 12 Gross SFT assets with no recognition of accounting netting, after adjusting for sales accounting 9,929 13 Eligible netting of cash payables and cash receivables - 14 SFT counterparty exposures 206 15 SFT exposure measures where a Reporting Bank acts as an agent in the SFTs - 16 Total SFT exposure measures 10,135 Exposure measures of off-balance sheet items 17 Off-balance sheet items at notional amount 253,128 18 Adjustments for calculation of exposure measures of off-balance sheet items 203,356 19 Total exposure measures of off-balance sheet items 49,772 Capital and Total exposures 20 Tier 1 capital 42,604 21 Total exposures 540,583 Leverage Ratio 22 Leverage Ratio 7.9 A-17 DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES 6 OVERVIEW OF RISK-WEIGHTED ASSETS The following table sets out the Groups RWA and capital requirements. a b c Minimum capital requirements 1 m 30 Jun 2017 31 Mar 2017 30 Jun 2017 1 Credit risk excluding CCR 196,191 192,183 19,619 2 of which: SACR and SAEQ 29,158 28,213 2,916 3 of which: IRBA and IRBAEQ for equity exposures under 167,033 163,970 16,703 the PDLGD method 4 CCR 15,922 16,030 1,592 5 of which: Current Exposure Method 7,765 7,846 777 6 of which: CCR Internal Models Method - - - 7 IRBAEQ for equity exposures under the simple risk 8,146 8,360 815 weight method or the IMM 8 Equity investments in funds – look-through approach 565 573 56 9 Equity investments in funds – mandate-based approach 52 52 5 10 Equity investments in funds – fall-back approach - - - 10a Equity investment in funds – partial use of an approach - - - 11 Unsettled transactions 60 55 6 12 Securitisation exposures in banking book 618 438 62 13 of which: IRBASE - RBM and IAM 14 of which: IRBASE - SF - - - 15 of which: SASE 618 438 62 16 Market risk 38,377 35,302 3,838 17 of which: SAMR 38,377 35,302 3,838 18 of which: IMA - - - 19 Operational risk 19,050 18,755 1,905 20 of which: BIA - - - 21 of which: SAOR 19,050 18,755 1,905 22 of which: AMA - - - 23 Amounts below the thresholds for deduction 700 687 70 subject to 250 risk weight 24 Floor adjustment - - - 25 Total 279,681 272,435 27,968 RWA Total risk-weighted assets increased mainly due to increase in credit risk-weighted assets excluding counterparty credit risk and market risk-weighted assets. This was mainly driven by broad-based increase in exposures. 1 Minimum capital requirements in this column correspond to 10 of the RWA in column a which is 2.0 percentage points higher than the Basel Committee’s requirement. Numbers below 0.5. A-18 DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES 7 CREDIT RISK

7.1 Credit Quality of Assets