5
400 800
1200
1.5 2
2.5
S million
Net interest income Net interest margin
gross basis
2.00 2.04
989 1,046
1,046
2.07 1.97
993
1H99 2H99
1H00 2H00
1H01 962
1.78
6
strengthens ability to fund lending growth
23.7 20.2
17.8
8.1
7.2 3.2
10 5
5 10
15 20
25 30
63.4 64.4
66.1 73.3
115.9 97.5
20 40
60 80
100 120
140
1996 1996
1997 1997
1998 1998
1999 1999
2000 2000
1H01 1H01
Net Interbank Placement Asset Net Interbank Placement Asset
1996 1996
1997 1997
1998 1998
1999 1999
2000 2000
1H01 1H01
Loan Deposit Loan Deposit
7
S million
Change in Gross Loans
56,083 54,166
56,219 58,438
61,404 59,195
45,404 16,420
30000 60000
90000 -3000
3000 6000
9000 12000
15000 18000
-10 -5
5 10
15 20
25 30
35
10.7 30.4
4,373 13,791
3.7 2,209
-4.8 2,966
-3.8 2,219
-3.7 2,053
3.5 1,917
Jun 98 Jun 98
Dec 98 Dec 98
Jun 99 Jun 99
Dec 99 Dec 99
Jun 00 Jun 00
Dec 00 Dec 00
Jun 01 Jun 01
Dao Heng Dao Heng
Jun 98 Jun 98
Dec 98 Dec 98
Jun 99 Jun 99
Dec 99 Dec 99
Jun 00 Jun 00
Dec 00 Dec 00
Jun 01 Jun 01
Outstanding Gross Loans
72,503
8
Top line earnings impacted by weaker economic conditions and adverse competitive environment
Focus on other non-interest income bolsters results
Expenses peaked amidst repositioning activities
Improved asset quality and strong capital position
Completing the regional and wealth management platform
management platform
9
S million S million
Investment banking 42
56 39
7.1 30.2
Stockbroking 47
31 24
48.9 22.6
Trade-related 38
37 40
5.3 7.8
Fund management 37
25 35
5.4 40.0
Deposit-related 23
37 43
87.0 15.3
Loan-related 24
27 28
16.7 4.5
Others 49
36 42
14.3 16.3
Total fee income 260
249 251
3.7 0.8
Fee to income ratio
17.5 17.3
16.4 1998 – 2000
Fee Income CAGR: 36.2 1H00
2H00 1H01
1H01 1H00 1H01 2H00
10
S million Foreign exchange
52 67
112 115.4
67.2
Gains on securities derivatives trading
55 -
102 85.5
-
Gains on investment securities
8 33
16 100.0
-
Gains on fixed assets 4
5 26
550.0 420.0
Other income 20
24 19
5.0 20.8
Total 139
129 275
97.6 113.2
1H00 2H00
1H01 1H01 1H00
1H01 2H00
11
strong returns
Dec 98 Dec 98
Dec 99 Dec 99
Dec 00 Dec 00
Jun 00 Jun 00
Non-interest income to Operating Income Non-interest income to Operating Income
Excluding gains on disposal of non-core assets Excluding gains on disposal of non-core assets
37.1 29.7
30.4 28.7
23.8
Jun 01 Jun 01
12
S million Sales Volume
100 200
300 400
500 600
700 800
900
314 558
322
2H99 1H00
2H00
Investment products include Horizon, Ei8ht, Up and other DBSAM programs
Investment products
1H01 611
Insurance
15 222
180
573 573
544 544
791 791
13
S b
S Current accounts 5.6
5.8 6.0