Main operating subsidiaries Consolidated structured entity

DBS Annual Report 2015 136 21 Deferred Tax AssetsLiabilities Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when the deferred income taxes relate to the same tax authority. The deferred tax assets and liabilities are determined after appropriate offsetting as shown in “Other assets” Note 20 and “Other liabilities” Note 28 respectively. Deferred tax assets and liabilities comprise the following temporary differences: The Group In millions 2015 2014 Deferred income tax assets Allowances for loan losses 310 254 Other temporary differences 146 137 456 391 Amounts offset against deferred tax liabilities 157 134 Total 299 257 Deferred income tax liabilities Accelerated tax depreciation 111 104 Available-for-sale financial assets and others 13 20 Other temporary differences 66 60 190 184 Amounts offset against deferred tax assets 157 134 Total 33 50 Net deferred tax assets 266 207 22 Subsidiaries and Consolidated Structured Entities The Company In millions 2015 2014 Unquoted equity shares, at cost a 17,414 15,326 Due from subsidiaries 2,133 4,090 19,547 19,416 a Includes preference shares and other equity instruments

22.1 Main operating subsidiaries

The main operating subsidiaries within the Group are listed below: Effective shareholding Name of subsidiary Country of incorporation 2015 2014 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 2014 and 2015. The Islamic Bank of Asia Limited‘s operations is in progressive wind-down, following approval from its shareholders on 6 October 2015. Refer to Note 34 for information on non-controlling interests. Financial statements 137

22.1.1 Acquisition of remaining interest in subsidiary

Acquisition of remaining interest in DBS China Square Limited On 22 June 2015, the Bank acquired the remaining 30 stake it did not own in DBS China Square Limited for a cash consideration of 150 million from CapitaLand Investments Pte Ltd, a wholly-owned subsidiary of CapitaLand Limited.

22.2 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 USD10 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. 23 Associates The Group In millions 2015 2014 Quoted equity securities, at cost a 71 71 Unquoted equity securities, at cost 800 779 Sub-total 871 850 Share of post acquisition reserves 129 145 Total 1,000 995 a The market value of quoted associates amounted to 51 million 2014: 50 million 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 2015 2014 Income statement Share of income 166 222 Share of expenses 152 143 Balance sheet Share of total assets 1,721 1,700 Share of total liabilities 721 705 Off-balance sheet Share of contingent liabilities and commitments Amount under 500,000

23.1 Main associates