DBS Group Holdings 2002 Financial Results
Presentation to Media and Analysts
This presentation is available at www.dbs.com
Disclaimer: The material that follows is a presentation of general background information about the Bank’s activities current at the date of the presentation. It is information
given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These factors should be considered, with or without professional advice, when deciding if
an investment is appropriate. DBS accepts no liability whatsoever with respect to the use of this document or its contents.
February 21, 2003
2002: Better execution under difficult conditions
2
DBS Group management team
Jackson Tai Vice Chairman and Chief Executive Officer,
DBSH and DBS Bank
Ng Kee Choe Vice Chairman, DBSH and Chief Risk Officer
Frank Wong Vice Chairman, DBS Bank and Chairman,
DBS Hong Kong
S Dhanabalan Chairman, DBS Group
Chong Kie Cheong MD Joint Head, Investment Banking Group
David Lau MD Head, Global Treasury and Markets Group
Oon Kum Loon Chief Financial Officer
Jeanette Wong Chief Administrative Officer
Management Committee
3
❑
Revenues, net profit up
❑
Continued improvement in mix, quality of revenues
❑
Expenses under control
❑
Regional operations contributing to overall performance
❑
Asset quality steady
2002: Better execution under difficult conditions
4
Net interest income 2,645
2,257 17.2
Fee and commission income 797
626 27.3
Non-interest income 1,421
1,275 11.4
Operating income 4,066
3,532 15.1
Staff costs 911
865 5.2
Other operating expenses 940
864 8.8
Operating expenses 1,851
1,729 7.0
Operating profit
a
2,215 1,803
22.9
Goodwill amortization 278
133 108.6
Provisions 534
379 41.0
NPAM 1,017
997 1.9
Cash NPAM
b
1,295 1,130
14.5
Revenues surpass S4 billion, net profit up
a Operating profit before goodwill amortization and provisions b NPAM before goodwill amortization
c Figures have been restated to reflect the adoption of Statement of Accounting Standards 12 “Income Taxes”
S million 2002
2001
c
change
5
2002 2001
Comparison of vs.
Cash ROA 0.86
0.86 Net interest margin
1.99 1.87
Cash ROE 9.21
9.99 Non-interest inc. operating inc.
34.9 36.1
a Excludes goodwill amortization b Earnings per share before goodwill amortization
NPL ratio 6.1
5.7
Loan-to-deposit ratio 59.9
63.9 Cash EPS
b
0.87 0.89
Cost-to-income ratio
a
45.5 48.9
Full year 2002 financial ratios
6
Net interest income 642
671 4.3
707 9.2
Fee and commission income 191
201 5.0
207 8.0
Non-interest income 406
312 30.0
259 57.1
Operating income 1,048
983 6.6
966 8.5
Staff costs 226
219 2.7
232 2.8
Other operating expenses 245
233 5.9
284 13.2
Operating expenses 471
452 4.4
516 8.5
Operating profit
a
577 531
8.5 450
28.0
Goodwill amortization 73
69 5.5
70 4.3
Provisions 181
150 20.4
87 108.2
NPAM 282
199 41.6
167 68.9
Cash NPAM
b
355 268
32.3 237
49.8
Fourth quarter 2002 operating profit up 28
S million change
4Q 2001 change
3Q 2002 4Q 2002
a Operating profit before goodwill amortization and provisions b NPAM before goodwill amortization
7
Cash ROA
b
0.95 0.64
Net interest margin 1.97
2.11
Cash ROE
b
9.95 7.56
Non-interest inc. operating inc. 38.7
26.8
a Excludes goodwill amortization b Annualized
c Earnings per share before goodwill amortization, annualized
NPL ratio 6.1
5.7
Loan-to-deposit ratio 59.9
63.9 Cash EPS
c
0.95 0.69
Cost-to-income ratio
a
45.0 53.4
Fourth quarter 2002 financial ratios
4Q 2002 4Q 2001
Comparison of vs.
8
❑
Revenues, net profit up
❑
Continued improvement in mix, quality of revenues
❑
Expenses under control
❑
Regional operations contributing to overall performance
❑
Asset quality steady
2002: Better execution under difficult conditions
