31
21 Subsidiaries and Consolidated Structured Entities
a The carrying amounts of certain investments which are designated as hedged items in a fair value hedge are adjusted for fair value changes
attributable to the hedged risks b
The carrying amounts presented are net of impairment allowances
21.1 Main operating subsidiaries The main operating subsidiaries within the Group are listed below:
Name of subsidiary
Country of incorporation Effective shareholding
2016 2015
Commercial Banking
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
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 Bank 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 2015 and 2016. Refer to Note 35 for information on non-controlling interests.
21.1.1 Subsidiary classified as asset held for sale
DBS China Square Limited DCS, a wholly-owned subsidiary of the Bank, was held as an asset for sale. Its carrying amount was 101 million as at 31 December 2016. Refer to Note 48 for further information on the sale transaction.
21.2 Consolidated structured entity The structured entity consolidated by the Group is listed below:
Name of entity Purpose of consolidated structured entity
Country of incorporation Bayfront Covered Bonds Pte Ltd
Covered bond guarantor Singapore
Bayfront Covered Bonds Pte Ltd is a bankruptcy-remote structured entity established in conjunction with the Bank’s USD 10 billion Global Covered Bond Programme see Note 29.4. As part of the contractual structures that are integral to this
programme, the Bank provides funding and hedging facilities to it.
Bank
28B28B
In millions 2016
2015
Investment in subsidiaries
ab
11,471 11,407
Due from subsidiaries 14,910
13,924 Total
26,381 25,331
32
22 Associates
The Group
96B96B
In millions 2016
2015
Quoted equity securities
a
57 71
Unquoted equity securities
b
812 800
Sub-total 869
871 Share of post-acquisition reserves
21 129
Total 890
1,000 a
The market value of the quoted associate amounted to 60 million 2015: 51 million and was based on the last traded price on 1 September 2016 prior to its trading suspension
b The carrying amounts of certain investments which are designated as hedged items in a fair value hedge are adjusted for fair value changes
attributable to the hedged risks
Bank
97B97B
In millions 2016
2015
Quoted equity securities
a
10 10
Unquoted equity securities
b
182 229
Total 192
239 a
The market value of the quoted associate amounted to 9 million 2015: 8 million and was based on the last traded price on 1 September 2016 prior to trading suspension
b The carrying amounts of certain investments which are designated as hedged items in a fair value hedge are adjusted for fair value changes
attributable to the hedged risks
The Group’s share of income and expenses, assets and liabilities and off-balance sheet items of the associates at 31 December are as follows:
The Group In millions
2016 2015
Income statement
Share of income 155
166 Share of expenses
202 152
Balance sheet Share of total assets
1,701 1,721
Share of total liabilities 811
721
Off-balance sheet Share of contingent liabilities and commitments
Amount under 500,000
22.1 Main associates The main associates of the Group are listed below:
