financial performance 1q09
Performance Summary
Unaudited Financial Results
For the First Quarter ended
31 March 2009
DBS Group Holdings Ltd
Incorporated in the Republic of Singapore
Company Registration Number: 199901152M
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Contents
Overview
Net Interest Income
Net Fee and Commission Income
Other Non-Interest Income
Expenses
Allowances for Credit and Other Losses
Performance by Business Segments
Performance by Geography
Customer Loans
Non-Performing Assets and Loss Allowance Coverage
Funding Sources
Customer Deposits
Other Borrowings & Liabilities
Value at Risk and Trading Income
Capital Adequacy
Unrealised Valuation Surplus/(Losses)
Unaudited Consolidated Income Statement
Unaudited Consolidated Statement of Comprehensive Income
Unaudited Balance Sheets
Unaudited Consolidated Statement of Changes in Equity
Unaudited Statement of Changes in Equity
Unaudited Consolidated Cash Flow Statement
Additional Information
Issuance of Ordinary Shares
Adoption of New or Revised FRS and INT FRS
Disclosure on Certain Financial Instruments
Confirmation by the Board
Page
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25
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1
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
OVERVIEW
DBS Group Holdings Ltd (“DBSH”) prepares its condensed consolidated DBSH Group (“Group”) interim financial statements in
accordance with Singapore Financial Reporting Standard (“FRS”) No. 34 Interim Financial Reporting, as modified by the
requirements of Notice to Banks No. 612 “Credit Files, Grading and Provisioning” issued by the Monetary Authority of
Singapore. The accounting policies and methods of computation applied for the current financial periods are consistent with
those applied for the financial year ended 31 December 2008, with the exception of the adoption of new or revised FRS and
Interpretations to FRS (“INT FRS”).
On 1 January 2009, the Group adopted the following new or revised FRS and INT FRS that are issued by the Accounting
Standard Council (ASC), and are relevant for the Group.
• FRS 1: Presentation of Financial Statements
• FRS 1 Presentation of Financial Statements & FRS 32 Financial Instruments: Presentation – Puttable Financial Instruments
and Obligations Arising on Liquidation
• FRS 27: Consolidated and Separate Financial Statements – Cost of an Investment in a Subsidiary, Jointly Controlled Entity
or Associate
• FRS 102 Share-based Payments – Vesting Conditions and Cancellations
• FRS 107 Financial Instruments: Disclosures – Improving Disclosures about Financial Instruments
• FRS 108: Operating Segments
• Improvements to FRSs (where applicable)
• INT FRS 113: Customer Loyalty Programmes
• INT FRS 116: Hedges of a Net Investment in a Foreign Operation
Refer to page 25 for more information.
1st Qtr
2009
1st Qtr
2008
% chg
1,076
317
269
1,662
638
1,024
414
630
1,057
353
153
1,563
656
907
140
790
2
(10)
76
6
(3)
13
>100
(20)
4th Qtr
2008
% chg
Selected income statement items ($m)
Net interest income
Net fee and commission income
Other non-interest income
Total income
Expenses
Profit before allowances
Allowances for credit and other losses
Profit before tax
Net profit
1,115
263
93
1,471
689
782
269
523
(3)
21
>100
13
(7)
31
54
20
456
603
(24)
383
19
(23)
433
603
NM
(28)
(88)
295
74
47
130,557
30,261
273,252
114,227
28,606
251,453
14
6
9
126,481
22,159
256,718
3
37
6
179,818
244,923
24,042
157,379
227,996
20,850
14
7
15
169,858
232,715
19,819
6
5
21
Key financial ratios (%) (excluding one-time
5/
items)
Net interest margin
Non-interest/total income
Cost/income ratio
Return on assets
6/
Return on equity
Loan/deposit ratio
NPL ratio
Specific allowances (loans)/average loans (bp)
1.99
35.3
38.4
0.69
8.01
72.6
2.0
70
2.09
32.4
42.0
0.99
11.61
72.6
1.0
13
2.04
24.2
46.8
0.59
7.64
74.5
1.5
69
Tier 1 capital adequacy ratio
Total capital adequacy ratio
12.5
16.7
9.2
13.4
10.1
14.0
1/
One-time items
Net profit including one-time items
Selected balance sheet items ($m)
2/
Customer loans
3/
Interbank assets
Total assets
4/
Customer deposits
Total liabilities
Shareholders’ funds
2
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
1st Qtr
2009
1st Qtr
2008
4th Qtr
2008
0.85
0.84
10.27
1.34
1.34
10.71
0.85
0.80
10.25
0.83
0.82
10.10
1.29
1.29
10.59
0.82
0.78
10.14
Per share data ($) 7/
Per basic share
– earnings excluding one-time items and goodwill
– earnings
6/
– net book value
Per diluted share
– earnings excluding one-time items and goodwill
– earnings
6/
– net book value
Notes:
1/ One-time items include restructuring costs, impairment charges for Thai investment and gains on sale of office buildings in Hong Kong
2/ Includes customer loans classified as financial assets at fair value through profit or loss on the balance sheet
3/ Includes interbank assets classified as financial assets at fair value through profit or loss on the balance sheet
4/ Includes customer deposits classified as financial liabilities at fair value through profit or loss on the balance sheet
5/ Return on assets, return on equity, specific allowances (loan)/average loan and per share data for the quarters are computed on an annualised basis
6/ Minority interests are not included as equity in the computation of net book value and return on equity
7/ Adjusted for shares arising from the rights issue in January 2009
NM Not Meaningful
First-quarter net profit rose 19% from the previous
quarter to $456 million but was 24% below a year ago.
The performance was marked by strong revenues and
productivity savings through cost discipline measures.
Earnings before allowances reached a record $1.02
billion for the first quarter. Additional general allowances
were taken to further bolster the balance sheet against
economic uncertainties in the operating environment.
Revenues rose 6% from a year ago and 13% from the
previous quarter to $1.66 billion as trading income
improved from earlier periods. Net interest income rose
2% from a year ago and fell 3% from the previous
quarter as lower interbank rates dampened net interest
margins, but this was partially offset by higher credit
spreads and wider prime-Hibor spreads in Hong Kong.
Net fee income rose 21% from the previous quarter on
better loan related revenues, but was 10% below a year
ago as capital market activities remained weak.
Expenses fell 7% from the previous quarter and 3%
from a year ago as ongoing efforts to improve workflow
and productivity yielded savings, partially offset by
continued investments in systems infrastructure and in
operations outside Singapore and Hong Kong. The
cost-income ratio fell to 38% from 47% in the previous
quarter and 42% a year ago.
Allowances rose to $414 million, 54% above the
previous quarter and three times the amount a year ago.
They included specific loan allowances of $225 million or
70 basis points of average loans, which were stable from
the previous quarter but significantly above the 13 basis
points a year ago. The increased charges were for SME
loans in Hong Kong and corporate loans in Rest of the
World. The non-performing loan rate rose from 1.5% to
2.0%.
Balance sheet strength was maintained. The total
capital adequacy ratio stood at 16.7% with tier-1 at
12.5%. Total cumulative allowances amounted to 97%
of non-performing assets and 156% if collateral was
considered.
Return on assets was 0.69% compared to 0.59% in the
previous quarter and 0.99% a year ago. Return on
equity improved to 8.0% from 7.6% in the prior quarter
but fell from 11.6% a year ago.
An impairment charge of $23 million for the bank’s
investment in TMB Bank was taken during the quarter,
which if included would result in net profit of $433
million.
3
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET INTEREST INCOME
1st Qtr 2009
Average balance
sheet
Average
balance
($m)
Interest-bearing
assets
Customer loans
Interbank assets
Securities
Total
Interest-bearing
liabilities
Customer deposits
Other borrowings
Total
1st Qtr 2008
4th Qtr 2008
Average
Average
balance Interest
rate
($m)
($m)
(%)
Interest
($m)
Average
rate
(%)
Average
balance
($m)
Interest
($m)
Average
rate
(%)
128,695
41,384
49,044
219,123
1,107
107
441
1,655
3.49
1.05
3.65
3.06
111,027
38,219
54,256
203,502
1,308
258
581
2,147
4.74
2.72
4.31
4.24
128,582
38,675
49,801
217,058
1,335
164
517
2,016
4.13
1.69
4.13
3.69
175,464
28,227
203,691
387
192
579
0.90
2.76
1.15
154,445
39,979
194,424
673
417
1,090
1.75
4.19
2.26
170,719
34,228
204,947
654
247
901
1.52
2.87
1.75
1,076
1.99
1,057
2.09
1,115
2.04
Net interest
income/margin 1/
Note:
1/ Net interest margin is net interest income expressed as a percentage of average interest-earning assets
Net interest income fell 3% from the previous quarter to
$1.08 billion as interest margins declined five basis points
to 1.99%. Average asset volumes were little changed.
Partially offsetting these pressures were higher credit
spreads and an improvement in Hong Kong margins as
the prime-Hibor spread widened.
The lower margins were due largely to a fall in Singapore
interbank rates. The inflow of funds from the equity rights
issue that closed in January and from customer deposits
also exerted some margin pressures, but the impact was
largely offset by managing down other forms of funding.
Compared to a year ago, net interest income was 2%
higher as the impact of higher customer loans was offset
by lower margins due primarily to lower Singapore
interbank rates.
1st Qtr 2009 versus 1st Qtr 2008
Volume and rate analysis ($m)
Increase/(decrease) due to change in
1st Qtr 2009 versus 4th Qtr 2008
Volume
Rate
Net
change
Volume
Rate
Net
change
Customer loans
Interbank assets
Securities
204
23
(56)
(370)
(196)
(79)
(166)
(173)
(135)
1
12
(8)
(205)
(66)
(58)
(204)
(54)
(66)
Total
171
(645)
(474)
5
(329)
(324)
92
(124)
(32)
(374)
(99)
(473)
(282)
(223)
(505)
18
(41)
(23)
(276)
(10)
(286)
(258)
(51)
(309)
203
(172)
31
28
(43)
(15)
Interest income
Interest expense
Customer deposits
Other borrowings
Total
Net impact on interest income
Due to change in number of days
Net Interest Income
(12)
(24)
19
(39)
4
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET FEE AND COMMISSION INCOME
($m)
Stockbroking
Investment banking
Trade and remittances
Loan related
Guarantees
Deposit related
Credit card
Fund management
Wealth management
Others
Total
1st Qtr
2009
1st Qtr
2008
% chg
4th Qtr
2008
% chg
28
17
66
96
15
20
33
5
16
21
317
50
29
52
90
11
19
31
14
40
17
353
(44)
(41)
27
7
36
5
6
(64)
(60)
24
(10)
32
16
56
50
11
21
36
5
17
19
263
(13)
6
18
92
36
(5)
(8)
(6)
11
21
Capital market activities – comprising stockbroking,
investment banking, wealth management product sales
and fund management – remained subdued and were at
previous quarter’s level.
Net fee and commission income rose 21% from the
previous quarter to $317 million. This was due primarily to
higher revenues from loan related activities as market
opportunities were captured.
Compared to a year ago, fee income was 10% lower from
a decline of revenues from capital market activities,
partially offset by higher revenues from activities outside of
capital markets.
OTHER NON-INTEREST INCOME
($m)
1st Qtr
2009
1st Qtr
2008
% chg
4th Qtr
2008
% chg
Net trading income/(loss)
204
(161)
NM
144
42
From trading businesses
From other businesses
Net (loss)/income from financial instruments
designated at fair value
Net income on financial investments
Net gain on fixed assets 1/
Others (include rental income)
259
(55)
(152)
(9)
NM
(>100)
135
9
92
NM
(54)
85
NM
(169)
68
106
13
211
3
15
(50)
NM
(13)
104
14
2
(7)
Total
269
153
76
93
>100
Notes:
1/ Exclude one-time items
NM Not Meaningful
Other non-interest income rose from $93 million in the
previous quarter to $269 million, boosted by gains from
trading activities.
Net gain on investment securities of $106 million was
similar to the previous quarter but lower compared to a
year ago. This quarter’s gains were largely from the sale
of fixed-income securities.
Trading activities registered a gain of $150 million. The
improvement was led by interest rate and foreign
exchange activities supported by strong customer flows.
5
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
EXPENSES
($m)
1st Qtr
2009
1st Qtr
2008
% chg
4th Qtr
2008
% chg
Staff 1/
Occupancy
Computerisation
Revenue-related
Others
Total
Staff headcount at period-end
327
71
112
33
95
638
14,082
352
58
102
34
110
656
14,082
(7)
22
10
(3)
(14)
(3)
-
346
68
126
35
114
689
14,312
(5)
4
(11)
(6)
(17)
(7)
(2)
41
1
34
1
21
-
36
1
14
-
2
2
-
2
-
Included in the above table were:
Depreciation of properties and other fixed assets
Director’s fees
Audit fees payable
Note:
1/ Exclude one-time items
Expenses fell 7% from the previous quarter to $638
million. Expenses declined as ongoing efforts to improve
productivity yielded cost savings, partially offset by
continued investment for technology improvements and
emerging markets.
Non-staff costs were 9% lower compared to previous
quarter and 2% higher compared to a year ago. Cost
discipline will continue to be exercised and investments
will be made where there are revenue opportunities.
Staff costs declined 5% as headcount fell 2% during the
quarter due to a fall in the number of contract staff hired
for seasonal activities. The reduction in staff costs was
also due to the full quarter impact of an organisational
streamlining in the previous quarter.
6
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
ALLOWANCES FOR CREDIT AND OTHER LOSSES
($m)
1st Qtr
2009
1st Qtr
2008
% chg
4th Qtr
2008
% chg
General allowances (GP)
182
90
>100
46
>100
Specific allowances (SP) for loans
Singapore
Hong Kong
Other countries
225
64
93
68
37
23
15
(1)
>100
>100
>100
NM
224
67
111
46
(4)
(16)
48
7
13
(46)
(1)
NM
414
140
>100
269
54
Specific allowances (SP) for securities, properties
1/
and other assets
Total
Notes:
1/ Exclude one-time items
NM Not Meaningful
Specific allowances for loans amounted to $225 million,
little changed from the previous quarter.
In Hong Kong, specific loan allowances fell from $111
million in the previous quarter to $93 million. There were
higher charges for SME loans but the increase was
more than offset by a sharp decline in charges for
private banking loans. Charges for Hong Kong SME
loans are expected to remain at elevated levels.
The increase in specific loan allowances in other countries
was due to corporate loans in Rest of the World. Specific
allowances for corporate and SME loans in Rest of Greater
China declined from the previous quarter as the credit
environment improved.
Specific allowances for Singapore loans were little changed
from the previous quarter.
7
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY BUSINESS SEGMENTS
($m)
CBG
IBG
GFM
CTU
Central
Ops
Total
Selected income items
1st Qtr 2009 1/
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
192
113
305
238
10
57
9
48
467
286
753
178
198
377
88
289
287
101
388
120
7
1
262
59
203
173
130
303
11
50
242
36
206
(43)
(44)
(87)
91
149
19
(308)
(77)
(290)
1,076
586
1,662
638
414
20
630
115
456
4th Qtr 2008 1/
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
243
125
368
258
12
98
17
81
482
200
682
164
145
373
76
297
309
(159)
150
65
14
71
43
28
177
98
275
(3)
4
274
38
236
(96)
92
(4)
205
94
10
(293)
(97)
(259)
1,115
356
1,471
689
269
10
523
77
383
326
160
486
255
5
226
38
188
396
278
674
192
91
391
76
315
325
(20)
305
132
23
2
152
49
103
130
40
170
13
13
144
20
124
(120)
48
(72)
64
8
21
(123)
(32)
(127)
1,057
506
1,563
656
140
23
790
151
603
37,407
100,493
91,310
32,350
5,845
101,680
4
11
63,392
5
4
49,734
3
3
2,898
-
27,219
37
23
267,405
5,847
273,252
244,923
49
41
-
1st Qtr 2008
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
Selected balance sheet and other
2/
items
31 Mar 2009
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 1st Qtr 2009
Depreciation for 1st Qtr 2009
Goodwill charge for 1st Qtr 2009
8
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
31 Dec 2008
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 4th Qtr 2008
Depreciation for 4th Qtr 2008
Goodwill charge for 4th Qtr 2008
31 Mar 2008
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 1st Qtr 2008
Depreciation for 1st Qtr 2008
Goodwill charge for 1st Qtr 2008
CBG
IBG
GFM
CTU
Central
Ops
36,004
96,586
86,760
26,344
5,177
95,537
32
6
60,390
7
3
48,930
3
2
1,496
-
26,362
12
25
32,874
87,995
91,445
28,734
4,564
85,003
5
7
56,564
3
2
58,315
1
3
1,837
-
26,277
5
22
Total
250,871
5,847
256,718
232,715
54
36
-
245,612
5,841
251,453
227,996
14
34
-
Notes:
1/ Expenses, allowances for credit and other losses and profits exclude one-time items
2/ Refer to sections on Customer Loans and Non-Performing Assets and Loss Allowance Coverage for more information on business segments
The business segment results are prepared based on the
Group’s internal management reporting which reflects the
organisation management reporting structure. As the
activities of the Group are highly integrated, internal
allocation has been made in preparing the segment
information. Amounts for each business segment are
shown after the allocation of certain centralised costs,
funding income and the application of transfer pricing,
where appropriate. Transactions between segments are
recorded within the segment as if they are third party
transactions and are eliminated on consolidation.
The various business segments are described below:
Consumer Banking (CBG)
CBG provides individual customers with a diverse range of
banking and related financial services. The products and
services available to customers include current and
savings accounts, fixed deposits, loans and home finance,
cards, payments and investment products.
CBG’s net interest income fell 21% from the previous quarter
and 41% from a year ago as short-term interbank rates in
Singapore declined to recent lows. Interbank rates also fell in
Hong Kong and in other parts of Asia where CBG has
operations in. Non-interest income was lower than both
comparative periods due mainly to lower wealth
management product sales in Singapore and Hong Kong.
Expenses fell 8% from the previous quarter and 7% from a
year ago due to productivity gains in core markets, partially
offset by investments in Indonesia, China and Taiwan.
Allowances were little changed from the previous quarter as
the credit quality of consumer loans remained healthy.
Allowances were higher compared to a year ago due to a
mixture of higher allowances and lower recoveries.
Institutional Banking (IBG)
IBG provides financial services and products to large
corporate, institutional clients and small and mediumsized businesses. The products and services available to
customers include corporate finance and advisory
banking services for mergers and acquisitions, capital
raising through debt and equity markets, capital
restructuring, syndicated finance, securities and fiduciary
services, cash management and trade services, private
equity and credit facilities, deposit and treasury products.
IBG’s net interest income was higher than a year ago
from higher loan volumes and interest spreads but
declined from the previous quarter as lower interbank
rates lowered loan yields. Non-interest income compared
positively against previous quarter from higher income
from fee-based activities and sales of treasury products.
In line with increased customer volumes, operating
expenses were higher than the previous quarter. Total
allowances were higher than the previous quarter due to
higher charges for the SME portfolio in Hong Kong and
for the corporate portfolio in Rest of the World.
Global Financial Markets (GFM)
GFM provides treasury services to corporations, institutional
and private investors, financial institutions and other market
participants. It is primarily involved in market making,
structuring, equity and debt sales and trading across a broad
range of financial products including foreign exchange,
interest rate/credit/equity and other structured derivatives.
Income from these financial products and services offered to
the customer of other business segments, such as
Consumer Banking and Institutional Banking, is reflected in
the respective segments. GFM also provides equity services
through DBS Vickers Securities (DBSV). DBSV offers a wide
range of services to retail and corporate customers including
research, sales and trading, share placement, nominees and
9
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
securities custodian services and distribution of primary and
secondary issues.
GFM’s net interest income declined while noninterest income recovered from losses in both
comparative periods. Interest rate and foreign
exchange activities continued to record gains in the
first quarter. Expenses were higher compared to the
previous quarter as staff costs increased in line with
higher revenues.
Central Treasury Unit (CTU)
CTU is responsible for the management of the Group’s asset
and liability interest rate positions and investment of the
Group’s excess liquidity and shareholders’ funds.
Central Operations
Central Operations encompasses a range of activities from
corporate decisions and income and expenses not attributed
to other business segments. Asset management and private
banking activities are included in this segment.
10
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY GEOGRAPHY
($m)
S’pore
Hong
Kong
Rest of
Greater
China
South
and
Southeast Asia
Rest of
world
Total
655
304
959
375
226
3
361
43
259
224
127
351
150
88
113
19
94
80
37
117
60
12
3
48
9
39
73
82
155
41
34
14
94
31
63
44
36
80
12
54
14
13
1
1,076
586
1,662
638
414
20
630
115
456
4th Qtr 2008
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
743
93
836
368
101
6
373
28
282
221
114
335
205
112
18
2
16
71
55
126
65
40
21
(2)
23
44
59
103
34
13
4
60
24
36
36
35
71
17
3
51
25
26
1,115
356
1,471
689
269
10
523
77
383
1st Qtr 2008
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
721
247
968
401
97
3
473
90
347
225
177
402
173
19
210
30
180
41
36
77
34
12
2
33
8
25
41
40
81
34
7
18
58
14
44
29
6
35
14
5
16
9
7
1,057
506
1,563
656
140
23
790
151
603
180,978
198
181,176
1,580
46,173
5,649
51,822
611
14,438
14,438
25
12,898
12,898
67
12,918
12,918
2
267,405
5,847
273,252
2,285
Selected income items
1st Qtr 2009 1/
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
1/
Selected balance sheet items
31 Mar 2009
Total assets before goodwill
Goodwill on consolidation
Total assets
Non-current assets 3/
2/
11
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
S’pore
Hong
Kong
Rest of
Greater
China
South
and
Southeast Asia
Rest of
world
Total
31 Dec 2008
Total assets before goodwill
Goodwill on consolidation
Total assets
3/
Non-current assets
170,132
198
170,330
1,575
44,119
5,649
49,768
570
16,563
16,563
23
9,889
9,889
38
10,168
10,168
2
250,871
5,847
256,718
2,208
31 Mar 2008
Total assets before goodwill
Goodwill on consolidation
Total assets
Non-current assets 3/
165,837
192
166,029
1,546
47,670
5,649
53,319
555
11,667
11,667
12
8,817
8,817
29
11,621
11,621
4
245,612
5,841
251,453
2,146
Notes:
1/ Expenses, allowances for credit and other losses and profits exclude one-time items
2/ Refer to sections on Customer Loans and Non-Performing Assets and Loss Allowance Coverage for more information on business segments
3/ Includes investment in associates, properties and other fixed assets, and investment properties
The performance by geography is classified based on the
location in which income and assets are recorded.
from the previous quarter and 10% from a year ago. The
results occurred against the backdrop of a softer
economy.
Singapore
Net profit fell to $259 million from $282 million in the
previous quarter and $347 million a year ago. The results
reflected weaker economic conditions as net interest
income was affected by lower market interest rates and
higher general allowances were taken.
Net interest income fell 12% from the previous quarter as
lower market interest rates reduced yields on corporate
loans, interbank assets and securities without effecting a
similar decline in deposit costs. An improvement in loan
credit spreads was not sufficient to compensate fully.
Non-interest income was significantly better than the
previous quarter due mainly to strong trading gains in
foreign exchange and interest rate activities. Fee income
also improved as higher investment banking and loan
syndication revenues were partially offset by lower trade
and remittances and credit card transactions.
Expenses were stable from the previous quarter as lower
non-staff costs were offset by higher bonus accruals in
line with the stronger revenues.
The increase in allowances from the previous quarter was
due mainly to the increase in general allowances. Specific
allowances were little changed.
Hong Kong
The first quarter’s results incorporate a depreciation of
the Singapore dollar against the Hong Kong dollar of 3%
Net profit rose to $94 million from $16 million in the
previous quarter but was half the $180 million a year
ago. Compared to the previous quarter, revenues rose
5% from higher treasury contributions while expenses
and provisions declined 27% and 21% respectively.
Net interest income was slightly higher than the previous
quarter as interest margins improved 9 basis points to
1.91% with a widening of prime-Hibor spreads and better
loan pricing being partially offset by lower yields on
Hibor-linked assets, including surplus funds.
Non-interest income rose 11% from the previous quarter
from stronger corporate customer flows for foreign
exchange hedging products and from higher trading
gains. Fee income fell moderately from lower
stockbroking commissions in line with market turnover
and from lower trade and remittance revenues. Their
impact was partially offset by higher loan syndication
fees. Fee income from investment banking and wealth
management continued to be weak.
Expenses fell 27% from the previous quarter due to
tighter spending on controllable expenditure, including
advertising and travel.
Allowances were 21% lower than the previous quarter
due to sharply lower charges for private banking loans.
Specific allowances for SMEs were higher and accounted
for a majority of the allowance charges in the first quarter.
12
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CUSTOMER LOANS
1/
($m)
31 Mar 2009
31 Dec 2008
31 Mar 2008
Gross
Less:
Specific allowances
132,784
128,365
115,660
1,051
868
437
General allowances
Net total
1,176
130,557
1,016
126,481
996
114,227
By business unit
Consumer Banking
Institutional Banking
Others
Total (Gross)
35,237
91,184
6,363
132,784
34,758
87,415
6,192
128,365
31,116
77,915
6,629
115,660
By geography
Singapore
Hong Kong
Rest of Greater China
South and South-east Asia
Rest of the world
Total (Gross)
74,981
32,814
9,439
7,920
7,630
132,784
74,377
32,085
9,683
5,557
6,663
128,365
67,294
29,423
6,916
5,198
6,829
115,660
By industry
Manufacturing
Building and construction
Housing loans
General commerce
Transportation, storage & communications
Financial institutions, investment & holding companies
Professionals & private individuals (except housing loans)
Others
Total (Gross)
16,946
18,786
29,882
12,426
13,073
16,988
10,346
14,337
132,784
15,958
17,931
29,375
13,075
12,457
14,490
10,478
14,601
128,365
15,457
14,403
26,581
11,057
11,511
14,236
10,022
12,393
115,660
56,469
17,628
38,841
30,272
680
29,592
29,194
1,686
27,508
16,849
2,436
14,413
132,784
53,527
15,795
37,732
29,347
664
28,683
28,123
1,736
26,387
17,368
2,695
14,673
128,365
45,902
11,769
34,133
26,344
608
25,736
27,406
1,992
25,414
16,008
2,711
13,297
115,660
By currency and fixed/variable pricing
Singapore dollar
Fixed rates
Floating or adjustable rates
Hong Kong dollar
Fixed rates
Floating or adjustable rates
US dollar
Fixed rates
Floating or adjustable rates
Others
Fixed rates
Floating or adjustable rates
Total (Gross)
Note:
1/ Includes customer loans classified as financial assets at fair value through profit or loss on the balance sheet
Gross customer loans rose 3% from the previous quarter.
Excluding currency translation effects, the growth was due
largely to Singapore-dollar corporate borrowing for
infrastructure projects. DBS increased its market share of
Singapore-dollar loans from 20% in the previous quarter to
21%.
Loans in Hong Kong fell 3% in local currency terms during
the quarter, led by a decline in trade finance loans. DBS
maintained its market share at 5% of industry loans.
13
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NON-PERFORMING ASSETS AND LOSS ALLOWANCE COVERAGE
1/
By business unit
NPA
($m)
SP
($m)
GP
($m)
NPL
(% of loans)
(GP+SP)/NPA
(%)
(GP+SP)/
unsecured
NPA
(%)
326
81
351
0.9
133
289
2,028
830
904
2.2
86
144
367
204
(79)
5.8
34
48
2,721
1,115
1,176
2.0
84
142
293
251
338
-
201
216
219
54
213
-
122
202
3,233
1,420
1,727
-
97
156
290
76
347
0.8
146
311
1,467
684
867
1.7
106
169
201
160
(198)
3.3
(19)
(23)
1,958
920
1,016
1.5
99
159
277
236
288
-
189
193
157
52
220
-
173
421
2,392
1,208
1,524
-
114
176
31 Mar 2009
Consumer Banking
Institutional Banking
Others
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
31 Dec 2008
Consumer Banking
Institutional Banking
Others
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
31 Mar 2008
Consumer Banking
229
62
311
0.7
163
379
Institutional Banking
897
378
775
1.2
129
235
Others
Total non-performing
loans (NPL)
62
53
(32)
0.9
34
41
1,188
493
1,054
1.0
130
242
Debt securities
167
160
182
-
205
212
Contingent liabilities
109
7
130
-
125
344
1,464
660
1,366
-
138
241
Total non-performing
assets (NPA)
Note:
1/ Allowances for credit and other losses exclude one-time items
14
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By geography
NPA
($m)
SP
($m)
GP
($m)
NPL
(% of loans)
(GP+SP)/NPA
(%)
(GP+SP)/
unsecured
NPA
(%)
31 Mar 2009
Singapore
747
316
359
1.3
90
160
Hong Kong
860
381
324
2.6
82
152
Rest of Greater China
South and South-east
Asia
Rest of the World
Total non-performing
loans
494
249
115
4.7
74
122
184
72
183
1.7
139
181
436
97
195
2.3
67
101
2,721
1,115
1,176
2.0
84
142
293
251
338
-
201
216
219
54
213
-
122
202
3,233
1,420
1,727
-
97
156
678
271
316
1.0
87
151
Debt securities
Contingent liabilities
& others
Total non-performing
assets
31 Dec 2008
Singapore
Hong Kong
587
313
343
1.7
112
176
Rest of Greater China
South and South-east
Asia
Rest of the World
Total non-performing
loans
457
241
117
4.3
78
128
133
59
159
1.2
164
171
103
36
81
1.3
114
252
1,958
920
1,016
1.5
99
159
277
236
288
-
189
193
157
52
220
-
173
421
2,392
1,208
1,524
-
114
176
31 Mar 2008
Singapore
494
227
425
0.8
132
255
Hong Kong
419
186
284
1.5
112
202
76
28
94
0.9
159
438
65
42
137
0.8
275
339
134
10
114
1.2
93
173
1,188
493
1,054
1.0
130
242
167
160
182
-
205
212
109
7
130
-
125
344
1,464
660
1,366
-
138
241
Debt securities
Contingent liabilities
& others
Total non-performing
assets
Rest of Greater China
South and South-east
Asia
Rest of the World
Total non-performing
loans
Debt securities
Contingent liabilities
& others
Total non-performing
assets
15
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By industry
($m)
31 Mar 2009
NPA
SP
31 Dec 2008
NPA
31 Mar 2008
NPA
SP
SP
Manufacturing
824
381
720
351
328
156
Building and construction
258
44
96
30
73
18
Housing loans
214
42
193
43
145
32
General commerce
472
226
381
187
273
138
29
7
24
6
8
4
433
141
145
66
114
9
Transportation, storage &
communications
Financial institutions, investment
& holding companies
Professionals & private
individuals (except housing
loans)
Others
299
151
223
129
127
56
192
123
176
108
120
80
Total non-performing loans
2,721
1,115
1,958
920
1,188
493
Debt securities
293
251
277
236
167
160
Contingent liabilities & others
219
54
157
52
109
7
Total non-performing assets
3,233
1,420
2,392
1,208
1,464
660
By loan classification
($m)
31 Mar 2009
Non-performing assets
Substandard
31 Dec 2008
31 Mar 2008
NPA
SP
NPA
SP
NPA
SP
1,931
219
1,328
213
846
63
Doubtful
950
849
800
730
373
351
Loss
352
352
264
265
245
246
Total
3,233
1,420
2,392
1,208
1,464
660
Restructured assets
Substandard
282
61
213
46
171
22
Doubtful
61
51
57
49
30
27
Loss
44
44
49
46
37
37
Total
387
156
319
141
238
86
By collateral type
($m)
31 Dec 2008
31 Mar 2008
NPA
NPA
NPA
2,018
1,554
842
Secured non-performing assets by collateral type
Properties
817
556
385
Shares and debentures
121
43
19
18
16
9
259
223
209
3,233
2,392
1,464
Unsecured non-performing assets
Fixed deposits
Others
Total
31 Mar 2009
16
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By period overdue
($m)
31 Mar 2009
31 Dec 2008
31 Mar 2008
NPA
NPA
NPA
Not overdue
180 days overdue
Total
1,042
3,233
746
2,392
513
1,464
Non-performing loans rose 39% from the previous quarter
to $2.72 billion or 2.0% of the loan portfolio, with SME
loans in Hong Kong and corporate loans in Rest of the
World accounting for the majority of the increase.
Including debt securities and contingent liabilities, nonperforming assets amounted to $3.23 billion, of which 34%
were still current in principal and interest and were
classified for prudent reasons.
Allowance coverage for non-performing assets decreased to
97% from 114% in the previous quarter. If collateral was
considered, the coverage was 156%.
FUNDING SOURCES
($m)
1/
Customer deposits
2/
Interbank liabilities
Other borrowings and liabilities 2/
Shareholders’ funds
Total
31 Mar 2009
31 Dec 2008
31 Mar 2008
179,818
12,327
57,065
169,858
9,571
57,470
157,379
21,376
51,848
24,042
273,252
19,819
256,718
20,850
251,453
Notes:
1/
Includes customer deposits classified as financial liabilities at fair value through profit or loss on the balance sheet
2/
Includes liabilities classified as financial liabilities at fair value through profit or loss on the balance sheet
17
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CUSTOMER DEPOSITS
1/
($m)
By currency and product
Singapore dollar
Fixed deposits
Savings accounts
Current accounts
Others
Hong Kong dollar
Fixed deposits
Savings accounts
Current accounts
Others
US dollar
Fixed deposits
Savings accounts
Current accounts
Others
Others
Fixed deposits
Savings accounts
Current accounts
Others
31 Mar 2009
31 Dec 2008
31 Mar 2008
98,356
19,692
65,803
12,198
663
25,147
15,579
6,537
2,702
329
30,615
19,926
2,607
7,309
773
25,700
20,693
1,441
2,295
1,271
179,818
75,890
76,388
24,504
3,036
93,957
20,645
62,068
10,359
885
23,536
15,721
5,030
2,211
574
28,247
19,365
2,040
5,982
860
24,118
20,043
1,231
2,178
666
169,858
75,774
70,369
20,730
2,985
88,440
27,523
49,772
10,512
633
22,706
15,402
4,618
1,904
782
27,489
18,688
1,791
4,772
2,238
18,744
13,653
683
2,164
2,244
157,379
75,266
56,864
19,352
5,897
Total
Fixed deposits
Savings accounts
Current accounts
Others
Note:
1/ Includes customer deposits classified as financial liabilities at fair value through profit or loss on the balance sheet
Customer deposits rose 6% from the previous quarter to
$179.8 billion. Excluding exchange translation effects, the
increase was largely due to Singapore-dollar savings and
current account deposits.
Hong Kong-dollar deposits rose 1% in local currency
terms during the quarter, also due to savings and current
accounts.
The Group’s deposit mix improved further during the
quarter, with savings and current accounts generally
rising across currencies.
OTHER BORROWINGS & LIABILITIES
($m)
1/
Subordinated term debts
Other debt securities in issue
Due within 1 year
Due after 1 year
Comprising:
Secured 2/
Unsecured
Others
Total
31 Mar 2009
31 Dec 2008
31 Mar 2008
9,539
9,085
8,704
310
502
263
375
974
366
419
393
46,714
57,065
333
305
47,747
57,470
425
915
41,804
51,848
Notes:
1/ All subordinated term debts issued are unsecured and due after 1 year
2/ These are mainly secured by properties and securities
18
>(82)-(80)
>(80)-(78)
>(78)-(76)
>(76)-(74)
>(74)-(72)
>(72)-(70)
>(70)-(68)
>(68)-(66)
>(66)-(64)
>(64)-(62)
>(62)-(60)
>(60)-(58)
>(58)-(56)
>(56)-(54)
>(54)-(52)
>(52)-(50)
>(50)-(48)
>(48)-(46)
>(46)-(44)
>(44)-(42)
>(42)-(40)
>(40)-(38)
>(38)-(36)
>(36)-(34)
>(34)-(32)
>(32)-(30)
>(30)-(28)
>(28)-(26)
>(26)-(24)
>(24)-(22)
>(22)-(20)
>(20)-(18)
>(18)-(16)
>(16)-(14)
>(14)-(12)
>(12)-(10)
>(10)-(8)
>(8)-(6)
>(6)-(4)
>(4)-(2)
>(2)-0
>0-2
>2-4
>4-6
>6-8
>8-10
>10-12
>12-14
>14-16
>16-18
>18-20
>20-22
>22-24
>24-26
>26-28
>28-30
>30-32
>32-34
>34-36
>36-38
>38-40
>40-42
>42-44
>44-46
>46-48
>48-50
>50-52
>52-54
>54-56
>56-58
>58-60
>60-62
>62-64
>64-66
>66-68
>68-70
>70-72
>72-74
>74-76
>76-78
>78-80
>80-82
>82-84
>84-86
No. of days
>20-21
>21-22
>22-23
>23-24
>24-25
>25-26
>26-27
>27-28
>28-29
>29-30
>30-31
>31-32
>32-33
>33-34
>34-35
>35-36
>36-37
>37-38
>38-39
>39-40
>40-41
>41-42
>42-43
>43-44
>44-45
>45-46
>46-47
>47-48
>48-49
>49-50
>50-51
>51-52
>52-53
>53-54
>54-55
>55-56
>56-57
>57-58
>58-59
>59-60
No. of Days
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
VALUE AT RISK AND TRADING INCOME
The Group uses a Value at Risk (VaR) measure as one mechanism for monitoring and controlling trading risk. The VaR is
calculated using a one-day time horizon and a 99% confidence interval. The following table shows the period-end, average,
high and low VaR for the trading risk exposure of the Group for the period from 1 April 2008 to 31 March 2009. The Group’s
trading book VaR methodology is based on Historical Simulation VaR.
($m)
As at 31 March 2009
Total
1 April 2008 to 31 March 2009
Average
High
Low
26
34
60
21
The charts below provide the range of VaR and the daily distribution of trading income in the trading portfolio for the
period from 1 April 2008 to 31 March 2009.
DBSH Group VaR for Trading Book
25
20
15
10
5
0
VaR (S$ million)
Daily Distribution of Group Trading Income
(1 Apr 2008 to 31 Mar 2009)
25
20
15
10
5
0
Trading income (S$ million)
19
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CAPITAL ADEQUACY
($m)
Tier 1
Share capital
Disclosed reserves and others
Less: Tier 1 Deductions
Eligible Tier 1
Tier 2
Loan allowances admitted as Tier 2
Subordinated debts
Revaluation surplus from equity securities
Less: Tier 2 Deductions
Total eligible capital
Risk-weighted assets
Capital adequacy ratio (%)
Tier 1 ratio
Tier 2 ratio
Total (Tier 1 & 2) ratio
31 Mar 2009
31 Dec 2008
31 Mar 2008
8,423
20,429
(6,034)
22,818
4,215
20,180
(6,022)
18,373
4,178
18,289
(5,999)
16,468
734
6,901
16
(112)
30,357
181,875
656
6,571
27
(106)
25,521
182,685
583
6,890
100
(114)
23,927
178,678
12.5
4.2
16.7
10.1
3.9
14.0
9.2
4.2
13.4
The Group’s capital adequacy ratio rose from 14.0% (Tier 1 at 10.1%) in the previous quarter to 16.7% (Tier 1 at 12.5%) due
primarily to the rights issue in January 2009.
UNREALISED VALUATION SURPLUS/(LOSSES)
($m)
Properties
Financial investments
Total
31 Mar 2009
31 Dec 2008
31 Mar 2008
513
(321)
192
532
(246)
286
677
(29)
648
The amount of unrealised valuation surplus decreased from $286 million in the previous quarter to $192 million as the surplus
on property investments declined and losses on financial investments rose.
20
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Consolidated Income Statement
1st Qtr
2009
1st Qtr
2008
+/(-)
%
4th Qtr
2008
+/(-)
%
Income
Interest income
Interest expense
Net interest income
Net fee and commission income
Net trading income/(loss)
Net (loss)/income from financial instruments designated at fair value
Net income from financial investments
Other income
1,655
579
1,076
317
204
(54)
106
13
2,147
1,090
1,057
353
(161)
85
211
18
(23)
(47)
2
(10)
NM
NM
(50)
(28)
2,016
901
1,115
263
144
(169)
104
18
(18)
(36)
(3)
21
42
68
2
(28)
Total income
1,662
1,563
6
1,475
13
327
41
270
437
352
34
270
140
(7)
21
>100
391
36
307
316
(16)
14
(12)
38
1,075
796
35
1,050
2
Profit
Share of profits of associates
Profit before tax
587
20
607
767
23
790
(23)
(13)
(23)
425
10
435
38
100
40
Income tax expense
Net profit
115
492
151
639
(24)
(23)
77
358
49
37
433
59
492
603
36
639
(28)
64
(23)
295
63
358
47
(6)
37
1st Qtr
2009
1st Qtr
2008
+/(-)
%
4th Qtr
2008
+/(-)
%
492
639
(23)
358
37
135
6
(79)
(19)
NM
NM
(47)
(16)
NM
NM
(392)
(112)
46
(317)
(97)
(193)
74
(314)
(>100)
42
(38)
(1)
(225)
5
(95)
83
(295)
(74)
NM
(18)
(45)
(7)
175
325
(46)
63
>100
27
148
175
353
(28)
325
(92)
NM
(46)
(10)
73
63
NM
>100
>100
In $ millions
Expenses
Employee benefits
Depreciation of properties and other fixed assets
Other expenses
Allowances for credit and other losses
Total expenses
Attributable to:
Shareholders
Minority interests
Unaudited Consolidated Statement of Comprehensive Income
In $ millions
Net profit
Other comprehensive income:
Foreign currency translation differences for foreign operations
Share of other comprehensive income of associates
Available-for-sale financial assets
Net valuation taken to equity
Transferred to income statement due to impairment
Transferred to income statement on sale
Tax on items taken directly to or transferred from equity
Other comprehensive income, net of tax
Total comprehensive income
Attributable to:
Shareholders
Minority interests
21
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Balance Sheets
31 Mar
2009
GROUP
31 Dec
2008 1/
31 Mar
2008
Cash and balances with central banks
Singapore Government securities and treasury bills
Due from banks
Financial assets at fair value though profit or loss 2/
Positive replacement values for financial derivatives
Loans and advances to customers
Financial investments
Securities pledged
Subsidiaries
Investments in associates
Goodwill on consolidation
Properties and other fixed assets
Investment properties
Deferred tax assets
Other assets
18,292
14,312
28,331
10,890
30,153
129,936
25,025
1,181
640
5,847
1,364
281
219
6,781
15,790
14,797
20,467
9,401
32,328
125,841
22,782
997
604
5,847
1,311
293
171
6,089
13,274
17,604
26,874
17,675
23,053
113,624
21,264
2,345
656
5,841
1,205
285
21
7,732
TOTAL ASSETS
273,252
256,718
251,453
Due to banks
Due to non-bank customers
Financial liabilities at fair value through profit or loss 3/
Negative replacement values for financial derivatives
Bills payable
Current tax liabilities
Deferred tax liabilities
Other liabilities
Other debt securities in issue
Subordinated term debts
11,839
174,914
9,492
29,406
870
822
46
7,183
812
9,539
9,021
163,359
11,282
31,918
714
779
45
5,874
638
9,085
20,590
150,558
15,062
22,534
499
925
97
7,687
1,340
8,704
TOTAL LIABILITIES
244,923
232,715
28,329
In $ millions
31 Mar
2009
COMPANY
31 Dec
2008 1/
31 Mar
2008
10,959
6,745
6,758
99
154
-
11,058
6,899
6,758
3
5
4
227,996
3
5
4
24,003
23,457
11,055
6,894
6,754
8,423
(120)
5,870
9,869
4,215
(154)
6,322
9,436
4,178
(105)
7,435
9,342
8,423
43
2,589
4,215
89
2,590
4,178
(30)
37
2,569
11,055
6,894
6,754
11,055
6,894
6,754
4.74
4.48
4.39
4.64
4.34
4.26
ASSETS
LIABILITIES
NET ASSETS
EQUITY
Share capital
Treasury shares
Other reserves
Revenue reserves
24,042
19,819
20,850
Minority interests
4,287
4,184
2,607
TOTAL EQUITY
28,329
24,003
23,457
99,438
1,697,178
92,656
1,704,717
101,793
1,937,019
SHAREHOLDERS’ FUNDS
OFF BALANCE SHEET ITEMS
Contingent liabilities and commitments
Financial derivatives
OTHER INFORMATION
Net asset value per ordinary share ($)
(i) Based on existing ordinary share capital
(ii) Assuming conversion of outstanding preference
shares to ordinary shares
Notes:
1/ Audited
2/ Includes customer loans, interbank assets, other government securities and treasury bills, corporate debt securities and equity securities
3/ Includes customer deposits, interbank liabilities, other debt securities in issue and other financial liabilities
22
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Consolidated Statement of Changes in Equity
GROUP
In $ millions
Balance at 1 January 2009
Ordinary
shares
4,149
Convertible
preference
shares
Treasury
shares
Other
reserves
Revenue
reserves
Total
Minority
interests
Total equity
66
(154)
6,322
9,436
19,819
4,184
24,003
Cost of share-based payments
9
9
9
Draw-down of reserves upon vesting of
performance shares
55
Purchase of Treasury shares
Issue of shares
Share issues expenses
(55)
(21)
4,029
181
(2)
-
-
(21)
(21)
4,210
4,210
(2)
Dividends paid to minority interests
(2)
(45)
Total comprehensive income
(406)
433
27
148
(45)
175
Balance at 31 March 2009
8,176
247
(120)
5,870
9,869
24,042
4,287
28,329
Balance at 1 January 2008
4,098
66
(102)
7,680
8,739
20,481
2,677
23,158
Exercise of share options
14
14
Cost of share-based payments
5
Share buyback during the period
(3)
5
(3)
(3)
Dividends paid to minority interests
(41)
Change in minority interests
Total comprehensive income
Balance at 31 March 2008
14
5
4,112
66
(105)
(41)
(1)
(1)
(250)
603
353
(28)
325
7,435
9,342
20,850
2,607
23,457
Unaudited Statement of Changes in Equity
COMPANY
In $ millions
Balance at 1 January 2009
Ordinary
shares
4,149
Convertible
preference
shares
66
Other
reserves
Treasury
shares
-
Cost of share-based payments
Draw-down of reserves upon vesting of performance shares
Issue of shares
Share issues expenses
4,029
89
Revenue
reserves
Total equity
2,590
6,894
9
9
(55)
(55)
181
4,210
(2)
(2)
Total comprehensive income
(1)
(1)
Balance at 31 March 2009
8,176
247
-
43
2,589
11,055
Balance at 1 January 2008
4,098
66
(27)
37
2,567
6,741
Exercise of share options
14
14
Share buyback during the period
(3)
(3)
Total comprehensive income
Balance at 31 March 2008
4,112
66
(30)
37
2
2
2,569
6,754
23
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Consolidated Cash Flow Statement
In $ millions
Cash flows from operating activities
Net profit for the year
Adjustments for non-cash items:
Allowances for credit and other losses
Depreciation of properties and other fixed assets
Share of profits of associates
Net gain on disposal of properties and other fixed assets
Net gain on disposal of financial investments
Income tax expense
Profit before changes in operating assets & liabilities
1st Qtr
2009
1st Qtr
1/
2008
492
639
437
41
(20)
(106)
115
959
140
34
(23)
(3)
(211)
151
727
Increase/(Decrease) in:
Due to banks
Due to non-bank customers
Financial liabilities at fair value through profit or loss
Other liabilities including bills payable
Debt securities and borrowings
2,818
11,555
(1,790)
(554)
131
5,126
5,190
(3,180)
10,223
242
(Increase)/Decrease in:
Change in restricted balances with central banks
Singapore Government securities and treasury bills
Due from banks
Financial assets at fair value through profit or loss
Loans and advances to customers
Financial investments
Other assets
(447)
485
(7,864)
(1,489)
(4,460)
(2,215)
837
(379)
(2,171)
(3,568)
1,868
(7,424)
(2,155)
(10,042)
(73)
(105)
(2,107)
(5,648)
Cash flows from investing activities
Dividends from associates
Purchase of properties and other fixed assets
Proceeds from disposal of properties and other fixed assets
19
(49)
4
35
(14)
2
Net cash (used in)/generated from investing activities (2)
(26)
23
Cash flows from financing activities
Increase in share capital and share premium
Purchase of treasury shares
Dividends paid to minority interests
4,208
(21)
(45)
14
(41)
Net cash provided by/(used in) financing activities (3)
Exchange translation adjustments (4)
4,142
46
(27)
(17)
2,055
12,678
14,733
(5,669)
15,953
10,284
Tax paid
Net cash used in operating activities (1)
Net change in cash and cash equivalents (1)+(2)+(3)+(4)
Cash and cash equivalents at 1 January
Cash and cash equivalents at 31 March
Note:
1/ Figures have been restated to make them consistent with current period’s presentation
24
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Additional Information
ISSUANCE OF ORDINARY SHARES
(a)
The movement in the number of issued and fully paid-up ordinary shares for the first quarter ended 31 March 2009
is as follows:
At 1 January 2009
Issue of rights shares
At 31 March 2009
1,520,960,458
760,480,229
2,281,440,68
Unaudited Financial Results
For the First Quarter ended
31 March 2009
DBS Group Holdings Ltd
Incorporated in the Republic of Singapore
Company Registration Number: 199901152M
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Contents
Overview
Net Interest Income
Net Fee and Commission Income
Other Non-Interest Income
Expenses
Allowances for Credit and Other Losses
Performance by Business Segments
Performance by Geography
Customer Loans
Non-Performing Assets and Loss Allowance Coverage
Funding Sources
Customer Deposits
Other Borrowings & Liabilities
Value at Risk and Trading Income
Capital Adequacy
Unrealised Valuation Surplus/(Losses)
Unaudited Consolidated Income Statement
Unaudited Consolidated Statement of Comprehensive Income
Unaudited Balance Sheets
Unaudited Consolidated Statement of Changes in Equity
Unaudited Statement of Changes in Equity
Unaudited Consolidated Cash Flow Statement
Additional Information
Issuance of Ordinary Shares
Adoption of New or Revised FRS and INT FRS
Disclosure on Certain Financial Instruments
Confirmation by the Board
Page
2
4
5
5
6
7
8
11
13
14
17
18
18
19
20
20
21
21
22
23
23
24
25
25
26
28
1
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
OVERVIEW
DBS Group Holdings Ltd (“DBSH”) prepares its condensed consolidated DBSH Group (“Group”) interim financial statements in
accordance with Singapore Financial Reporting Standard (“FRS”) No. 34 Interim Financial Reporting, as modified by the
requirements of Notice to Banks No. 612 “Credit Files, Grading and Provisioning” issued by the Monetary Authority of
Singapore. The accounting policies and methods of computation applied for the current financial periods are consistent with
those applied for the financial year ended 31 December 2008, with the exception of the adoption of new or revised FRS and
Interpretations to FRS (“INT FRS”).
On 1 January 2009, the Group adopted the following new or revised FRS and INT FRS that are issued by the Accounting
Standard Council (ASC), and are relevant for the Group.
• FRS 1: Presentation of Financial Statements
• FRS 1 Presentation of Financial Statements & FRS 32 Financial Instruments: Presentation – Puttable Financial Instruments
and Obligations Arising on Liquidation
• FRS 27: Consolidated and Separate Financial Statements – Cost of an Investment in a Subsidiary, Jointly Controlled Entity
or Associate
• FRS 102 Share-based Payments – Vesting Conditions and Cancellations
• FRS 107 Financial Instruments: Disclosures – Improving Disclosures about Financial Instruments
• FRS 108: Operating Segments
• Improvements to FRSs (where applicable)
• INT FRS 113: Customer Loyalty Programmes
• INT FRS 116: Hedges of a Net Investment in a Foreign Operation
Refer to page 25 for more information.
1st Qtr
2009
1st Qtr
2008
% chg
1,076
317
269
1,662
638
1,024
414
630
1,057
353
153
1,563
656
907
140
790
2
(10)
76
6
(3)
13
>100
(20)
4th Qtr
2008
% chg
Selected income statement items ($m)
Net interest income
Net fee and commission income
Other non-interest income
Total income
Expenses
Profit before allowances
Allowances for credit and other losses
Profit before tax
Net profit
1,115
263
93
1,471
689
782
269
523
(3)
21
>100
13
(7)
31
54
20
456
603
(24)
383
19
(23)
433
603
NM
(28)
(88)
295
74
47
130,557
30,261
273,252
114,227
28,606
251,453
14
6
9
126,481
22,159
256,718
3
37
6
179,818
244,923
24,042
157,379
227,996
20,850
14
7
15
169,858
232,715
19,819
6
5
21
Key financial ratios (%) (excluding one-time
5/
items)
Net interest margin
Non-interest/total income
Cost/income ratio
Return on assets
6/
Return on equity
Loan/deposit ratio
NPL ratio
Specific allowances (loans)/average loans (bp)
1.99
35.3
38.4
0.69
8.01
72.6
2.0
70
2.09
32.4
42.0
0.99
11.61
72.6
1.0
13
2.04
24.2
46.8
0.59
7.64
74.5
1.5
69
Tier 1 capital adequacy ratio
Total capital adequacy ratio
12.5
16.7
9.2
13.4
10.1
14.0
1/
One-time items
Net profit including one-time items
Selected balance sheet items ($m)
2/
Customer loans
3/
Interbank assets
Total assets
4/
Customer deposits
Total liabilities
Shareholders’ funds
2
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
1st Qtr
2009
1st Qtr
2008
4th Qtr
2008
0.85
0.84
10.27
1.34
1.34
10.71
0.85
0.80
10.25
0.83
0.82
10.10
1.29
1.29
10.59
0.82
0.78
10.14
Per share data ($) 7/
Per basic share
– earnings excluding one-time items and goodwill
– earnings
6/
– net book value
Per diluted share
– earnings excluding one-time items and goodwill
– earnings
6/
– net book value
Notes:
1/ One-time items include restructuring costs, impairment charges for Thai investment and gains on sale of office buildings in Hong Kong
2/ Includes customer loans classified as financial assets at fair value through profit or loss on the balance sheet
3/ Includes interbank assets classified as financial assets at fair value through profit or loss on the balance sheet
4/ Includes customer deposits classified as financial liabilities at fair value through profit or loss on the balance sheet
5/ Return on assets, return on equity, specific allowances (loan)/average loan and per share data for the quarters are computed on an annualised basis
6/ Minority interests are not included as equity in the computation of net book value and return on equity
7/ Adjusted for shares arising from the rights issue in January 2009
NM Not Meaningful
First-quarter net profit rose 19% from the previous
quarter to $456 million but was 24% below a year ago.
The performance was marked by strong revenues and
productivity savings through cost discipline measures.
Earnings before allowances reached a record $1.02
billion for the first quarter. Additional general allowances
were taken to further bolster the balance sheet against
economic uncertainties in the operating environment.
Revenues rose 6% from a year ago and 13% from the
previous quarter to $1.66 billion as trading income
improved from earlier periods. Net interest income rose
2% from a year ago and fell 3% from the previous
quarter as lower interbank rates dampened net interest
margins, but this was partially offset by higher credit
spreads and wider prime-Hibor spreads in Hong Kong.
Net fee income rose 21% from the previous quarter on
better loan related revenues, but was 10% below a year
ago as capital market activities remained weak.
Expenses fell 7% from the previous quarter and 3%
from a year ago as ongoing efforts to improve workflow
and productivity yielded savings, partially offset by
continued investments in systems infrastructure and in
operations outside Singapore and Hong Kong. The
cost-income ratio fell to 38% from 47% in the previous
quarter and 42% a year ago.
Allowances rose to $414 million, 54% above the
previous quarter and three times the amount a year ago.
They included specific loan allowances of $225 million or
70 basis points of average loans, which were stable from
the previous quarter but significantly above the 13 basis
points a year ago. The increased charges were for SME
loans in Hong Kong and corporate loans in Rest of the
World. The non-performing loan rate rose from 1.5% to
2.0%.
Balance sheet strength was maintained. The total
capital adequacy ratio stood at 16.7% with tier-1 at
12.5%. Total cumulative allowances amounted to 97%
of non-performing assets and 156% if collateral was
considered.
Return on assets was 0.69% compared to 0.59% in the
previous quarter and 0.99% a year ago. Return on
equity improved to 8.0% from 7.6% in the prior quarter
but fell from 11.6% a year ago.
An impairment charge of $23 million for the bank’s
investment in TMB Bank was taken during the quarter,
which if included would result in net profit of $433
million.
3
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET INTEREST INCOME
1st Qtr 2009
Average balance
sheet
Average
balance
($m)
Interest-bearing
assets
Customer loans
Interbank assets
Securities
Total
Interest-bearing
liabilities
Customer deposits
Other borrowings
Total
1st Qtr 2008
4th Qtr 2008
Average
Average
balance Interest
rate
($m)
($m)
(%)
Interest
($m)
Average
rate
(%)
Average
balance
($m)
Interest
($m)
Average
rate
(%)
128,695
41,384
49,044
219,123
1,107
107
441
1,655
3.49
1.05
3.65
3.06
111,027
38,219
54,256
203,502
1,308
258
581
2,147
4.74
2.72
4.31
4.24
128,582
38,675
49,801
217,058
1,335
164
517
2,016
4.13
1.69
4.13
3.69
175,464
28,227
203,691
387
192
579
0.90
2.76
1.15
154,445
39,979
194,424
673
417
1,090
1.75
4.19
2.26
170,719
34,228
204,947
654
247
901
1.52
2.87
1.75
1,076
1.99
1,057
2.09
1,115
2.04
Net interest
income/margin 1/
Note:
1/ Net interest margin is net interest income expressed as a percentage of average interest-earning assets
Net interest income fell 3% from the previous quarter to
$1.08 billion as interest margins declined five basis points
to 1.99%. Average asset volumes were little changed.
Partially offsetting these pressures were higher credit
spreads and an improvement in Hong Kong margins as
the prime-Hibor spread widened.
The lower margins were due largely to a fall in Singapore
interbank rates. The inflow of funds from the equity rights
issue that closed in January and from customer deposits
also exerted some margin pressures, but the impact was
largely offset by managing down other forms of funding.
Compared to a year ago, net interest income was 2%
higher as the impact of higher customer loans was offset
by lower margins due primarily to lower Singapore
interbank rates.
1st Qtr 2009 versus 1st Qtr 2008
Volume and rate analysis ($m)
Increase/(decrease) due to change in
1st Qtr 2009 versus 4th Qtr 2008
Volume
Rate
Net
change
Volume
Rate
Net
change
Customer loans
Interbank assets
Securities
204
23
(56)
(370)
(196)
(79)
(166)
(173)
(135)
1
12
(8)
(205)
(66)
(58)
(204)
(54)
(66)
Total
171
(645)
(474)
5
(329)
(324)
92
(124)
(32)
(374)
(99)
(473)
(282)
(223)
(505)
18
(41)
(23)
(276)
(10)
(286)
(258)
(51)
(309)
203
(172)
31
28
(43)
(15)
Interest income
Interest expense
Customer deposits
Other borrowings
Total
Net impact on interest income
Due to change in number of days
Net Interest Income
(12)
(24)
19
(39)
4
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET FEE AND COMMISSION INCOME
($m)
Stockbroking
Investment banking
Trade and remittances
Loan related
Guarantees
Deposit related
Credit card
Fund management
Wealth management
Others
Total
1st Qtr
2009
1st Qtr
2008
% chg
4th Qtr
2008
% chg
28
17
66
96
15
20
33
5
16
21
317
50
29
52
90
11
19
31
14
40
17
353
(44)
(41)
27
7
36
5
6
(64)
(60)
24
(10)
32
16
56
50
11
21
36
5
17
19
263
(13)
6
18
92
36
(5)
(8)
(6)
11
21
Capital market activities – comprising stockbroking,
investment banking, wealth management product sales
and fund management – remained subdued and were at
previous quarter’s level.
Net fee and commission income rose 21% from the
previous quarter to $317 million. This was due primarily to
higher revenues from loan related activities as market
opportunities were captured.
Compared to a year ago, fee income was 10% lower from
a decline of revenues from capital market activities,
partially offset by higher revenues from activities outside of
capital markets.
OTHER NON-INTEREST INCOME
($m)
1st Qtr
2009
1st Qtr
2008
% chg
4th Qtr
2008
% chg
Net trading income/(loss)
204
(161)
NM
144
42
From trading businesses
From other businesses
Net (loss)/income from financial instruments
designated at fair value
Net income on financial investments
Net gain on fixed assets 1/
Others (include rental income)
259
(55)
(152)
(9)
NM
(>100)
135
9
92
NM
(54)
85
NM
(169)
68
106
13
211
3
15
(50)
NM
(13)
104
14
2
(7)
Total
269
153
76
93
>100
Notes:
1/ Exclude one-time items
NM Not Meaningful
Other non-interest income rose from $93 million in the
previous quarter to $269 million, boosted by gains from
trading activities.
Net gain on investment securities of $106 million was
similar to the previous quarter but lower compared to a
year ago. This quarter’s gains were largely from the sale
of fixed-income securities.
Trading activities registered a gain of $150 million. The
improvement was led by interest rate and foreign
exchange activities supported by strong customer flows.
5
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
EXPENSES
($m)
1st Qtr
2009
1st Qtr
2008
% chg
4th Qtr
2008
% chg
Staff 1/
Occupancy
Computerisation
Revenue-related
Others
Total
Staff headcount at period-end
327
71
112
33
95
638
14,082
352
58
102
34
110
656
14,082
(7)
22
10
(3)
(14)
(3)
-
346
68
126
35
114
689
14,312
(5)
4
(11)
(6)
(17)
(7)
(2)
41
1
34
1
21
-
36
1
14
-
2
2
-
2
-
Included in the above table were:
Depreciation of properties and other fixed assets
Director’s fees
Audit fees payable
Note:
1/ Exclude one-time items
Expenses fell 7% from the previous quarter to $638
million. Expenses declined as ongoing efforts to improve
productivity yielded cost savings, partially offset by
continued investment for technology improvements and
emerging markets.
Non-staff costs were 9% lower compared to previous
quarter and 2% higher compared to a year ago. Cost
discipline will continue to be exercised and investments
will be made where there are revenue opportunities.
Staff costs declined 5% as headcount fell 2% during the
quarter due to a fall in the number of contract staff hired
for seasonal activities. The reduction in staff costs was
also due to the full quarter impact of an organisational
streamlining in the previous quarter.
6
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
ALLOWANCES FOR CREDIT AND OTHER LOSSES
($m)
1st Qtr
2009
1st Qtr
2008
% chg
4th Qtr
2008
% chg
General allowances (GP)
182
90
>100
46
>100
Specific allowances (SP) for loans
Singapore
Hong Kong
Other countries
225
64
93
68
37
23
15
(1)
>100
>100
>100
NM
224
67
111
46
(4)
(16)
48
7
13
(46)
(1)
NM
414
140
>100
269
54
Specific allowances (SP) for securities, properties
1/
and other assets
Total
Notes:
1/ Exclude one-time items
NM Not Meaningful
Specific allowances for loans amounted to $225 million,
little changed from the previous quarter.
In Hong Kong, specific loan allowances fell from $111
million in the previous quarter to $93 million. There were
higher charges for SME loans but the increase was
more than offset by a sharp decline in charges for
private banking loans. Charges for Hong Kong SME
loans are expected to remain at elevated levels.
The increase in specific loan allowances in other countries
was due to corporate loans in Rest of the World. Specific
allowances for corporate and SME loans in Rest of Greater
China declined from the previous quarter as the credit
environment improved.
Specific allowances for Singapore loans were little changed
from the previous quarter.
7
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY BUSINESS SEGMENTS
($m)
CBG
IBG
GFM
CTU
Central
Ops
Total
Selected income items
1st Qtr 2009 1/
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
192
113
305
238
10
57
9
48
467
286
753
178
198
377
88
289
287
101
388
120
7
1
262
59
203
173
130
303
11
50
242
36
206
(43)
(44)
(87)
91
149
19
(308)
(77)
(290)
1,076
586
1,662
638
414
20
630
115
456
4th Qtr 2008 1/
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
243
125
368
258
12
98
17
81
482
200
682
164
145
373
76
297
309
(159)
150
65
14
71
43
28
177
98
275
(3)
4
274
38
236
(96)
92
(4)
205
94
10
(293)
(97)
(259)
1,115
356
1,471
689
269
10
523
77
383
326
160
486
255
5
226
38
188
396
278
674
192
91
391
76
315
325
(20)
305
132
23
2
152
49
103
130
40
170
13
13
144
20
124
(120)
48
(72)
64
8
21
(123)
(32)
(127)
1,057
506
1,563
656
140
23
790
151
603
37,407
100,493
91,310
32,350
5,845
101,680
4
11
63,392
5
4
49,734
3
3
2,898
-
27,219
37
23
267,405
5,847
273,252
244,923
49
41
-
1st Qtr 2008
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
Selected balance sheet and other
2/
items
31 Mar 2009
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 1st Qtr 2009
Depreciation for 1st Qtr 2009
Goodwill charge for 1st Qtr 2009
8
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
31 Dec 2008
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 4th Qtr 2008
Depreciation for 4th Qtr 2008
Goodwill charge for 4th Qtr 2008
31 Mar 2008
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 1st Qtr 2008
Depreciation for 1st Qtr 2008
Goodwill charge for 1st Qtr 2008
CBG
IBG
GFM
CTU
Central
Ops
36,004
96,586
86,760
26,344
5,177
95,537
32
6
60,390
7
3
48,930
3
2
1,496
-
26,362
12
25
32,874
87,995
91,445
28,734
4,564
85,003
5
7
56,564
3
2
58,315
1
3
1,837
-
26,277
5
22
Total
250,871
5,847
256,718
232,715
54
36
-
245,612
5,841
251,453
227,996
14
34
-
Notes:
1/ Expenses, allowances for credit and other losses and profits exclude one-time items
2/ Refer to sections on Customer Loans and Non-Performing Assets and Loss Allowance Coverage for more information on business segments
The business segment results are prepared based on the
Group’s internal management reporting which reflects the
organisation management reporting structure. As the
activities of the Group are highly integrated, internal
allocation has been made in preparing the segment
information. Amounts for each business segment are
shown after the allocation of certain centralised costs,
funding income and the application of transfer pricing,
where appropriate. Transactions between segments are
recorded within the segment as if they are third party
transactions and are eliminated on consolidation.
The various business segments are described below:
Consumer Banking (CBG)
CBG provides individual customers with a diverse range of
banking and related financial services. The products and
services available to customers include current and
savings accounts, fixed deposits, loans and home finance,
cards, payments and investment products.
CBG’s net interest income fell 21% from the previous quarter
and 41% from a year ago as short-term interbank rates in
Singapore declined to recent lows. Interbank rates also fell in
Hong Kong and in other parts of Asia where CBG has
operations in. Non-interest income was lower than both
comparative periods due mainly to lower wealth
management product sales in Singapore and Hong Kong.
Expenses fell 8% from the previous quarter and 7% from a
year ago due to productivity gains in core markets, partially
offset by investments in Indonesia, China and Taiwan.
Allowances were little changed from the previous quarter as
the credit quality of consumer loans remained healthy.
Allowances were higher compared to a year ago due to a
mixture of higher allowances and lower recoveries.
Institutional Banking (IBG)
IBG provides financial services and products to large
corporate, institutional clients and small and mediumsized businesses. The products and services available to
customers include corporate finance and advisory
banking services for mergers and acquisitions, capital
raising through debt and equity markets, capital
restructuring, syndicated finance, securities and fiduciary
services, cash management and trade services, private
equity and credit facilities, deposit and treasury products.
IBG’s net interest income was higher than a year ago
from higher loan volumes and interest spreads but
declined from the previous quarter as lower interbank
rates lowered loan yields. Non-interest income compared
positively against previous quarter from higher income
from fee-based activities and sales of treasury products.
In line with increased customer volumes, operating
expenses were higher than the previous quarter. Total
allowances were higher than the previous quarter due to
higher charges for the SME portfolio in Hong Kong and
for the corporate portfolio in Rest of the World.
Global Financial Markets (GFM)
GFM provides treasury services to corporations, institutional
and private investors, financial institutions and other market
participants. It is primarily involved in market making,
structuring, equity and debt sales and trading across a broad
range of financial products including foreign exchange,
interest rate/credit/equity and other structured derivatives.
Income from these financial products and services offered to
the customer of other business segments, such as
Consumer Banking and Institutional Banking, is reflected in
the respective segments. GFM also provides equity services
through DBS Vickers Securities (DBSV). DBSV offers a wide
range of services to retail and corporate customers including
research, sales and trading, share placement, nominees and
9
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
securities custodian services and distribution of primary and
secondary issues.
GFM’s net interest income declined while noninterest income recovered from losses in both
comparative periods. Interest rate and foreign
exchange activities continued to record gains in the
first quarter. Expenses were higher compared to the
previous quarter as staff costs increased in line with
higher revenues.
Central Treasury Unit (CTU)
CTU is responsible for the management of the Group’s asset
and liability interest rate positions and investment of the
Group’s excess liquidity and shareholders’ funds.
Central Operations
Central Operations encompasses a range of activities from
corporate decisions and income and expenses not attributed
to other business segments. Asset management and private
banking activities are included in this segment.
10
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY GEOGRAPHY
($m)
S’pore
Hong
Kong
Rest of
Greater
China
South
and
Southeast Asia
Rest of
world
Total
655
304
959
375
226
3
361
43
259
224
127
351
150
88
113
19
94
80
37
117
60
12
3
48
9
39
73
82
155
41
34
14
94
31
63
44
36
80
12
54
14
13
1
1,076
586
1,662
638
414
20
630
115
456
4th Qtr 2008
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
743
93
836
368
101
6
373
28
282
221
114
335
205
112
18
2
16
71
55
126
65
40
21
(2)
23
44
59
103
34
13
4
60
24
36
36
35
71
17
3
51
25
26
1,115
356
1,471
689
269
10
523
77
383
1st Qtr 2008
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
721
247
968
401
97
3
473
90
347
225
177
402
173
19
210
30
180
41
36
77
34
12
2
33
8
25
41
40
81
34
7
18
58
14
44
29
6
35
14
5
16
9
7
1,057
506
1,563
656
140
23
790
151
603
180,978
198
181,176
1,580
46,173
5,649
51,822
611
14,438
14,438
25
12,898
12,898
67
12,918
12,918
2
267,405
5,847
273,252
2,285
Selected income items
1st Qtr 2009 1/
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
1/
Selected balance sheet items
31 Mar 2009
Total assets before goodwill
Goodwill on consolidation
Total assets
Non-current assets 3/
2/
11
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
S’pore
Hong
Kong
Rest of
Greater
China
South
and
Southeast Asia
Rest of
world
Total
31 Dec 2008
Total assets before goodwill
Goodwill on consolidation
Total assets
3/
Non-current assets
170,132
198
170,330
1,575
44,119
5,649
49,768
570
16,563
16,563
23
9,889
9,889
38
10,168
10,168
2
250,871
5,847
256,718
2,208
31 Mar 2008
Total assets before goodwill
Goodwill on consolidation
Total assets
Non-current assets 3/
165,837
192
166,029
1,546
47,670
5,649
53,319
555
11,667
11,667
12
8,817
8,817
29
11,621
11,621
4
245,612
5,841
251,453
2,146
Notes:
1/ Expenses, allowances for credit and other losses and profits exclude one-time items
2/ Refer to sections on Customer Loans and Non-Performing Assets and Loss Allowance Coverage for more information on business segments
3/ Includes investment in associates, properties and other fixed assets, and investment properties
The performance by geography is classified based on the
location in which income and assets are recorded.
from the previous quarter and 10% from a year ago. The
results occurred against the backdrop of a softer
economy.
Singapore
Net profit fell to $259 million from $282 million in the
previous quarter and $347 million a year ago. The results
reflected weaker economic conditions as net interest
income was affected by lower market interest rates and
higher general allowances were taken.
Net interest income fell 12% from the previous quarter as
lower market interest rates reduced yields on corporate
loans, interbank assets and securities without effecting a
similar decline in deposit costs. An improvement in loan
credit spreads was not sufficient to compensate fully.
Non-interest income was significantly better than the
previous quarter due mainly to strong trading gains in
foreign exchange and interest rate activities. Fee income
also improved as higher investment banking and loan
syndication revenues were partially offset by lower trade
and remittances and credit card transactions.
Expenses were stable from the previous quarter as lower
non-staff costs were offset by higher bonus accruals in
line with the stronger revenues.
The increase in allowances from the previous quarter was
due mainly to the increase in general allowances. Specific
allowances were little changed.
Hong Kong
The first quarter’s results incorporate a depreciation of
the Singapore dollar against the Hong Kong dollar of 3%
Net profit rose to $94 million from $16 million in the
previous quarter but was half the $180 million a year
ago. Compared to the previous quarter, revenues rose
5% from higher treasury contributions while expenses
and provisions declined 27% and 21% respectively.
Net interest income was slightly higher than the previous
quarter as interest margins improved 9 basis points to
1.91% with a widening of prime-Hibor spreads and better
loan pricing being partially offset by lower yields on
Hibor-linked assets, including surplus funds.
Non-interest income rose 11% from the previous quarter
from stronger corporate customer flows for foreign
exchange hedging products and from higher trading
gains. Fee income fell moderately from lower
stockbroking commissions in line with market turnover
and from lower trade and remittance revenues. Their
impact was partially offset by higher loan syndication
fees. Fee income from investment banking and wealth
management continued to be weak.
Expenses fell 27% from the previous quarter due to
tighter spending on controllable expenditure, including
advertising and travel.
Allowances were 21% lower than the previous quarter
due to sharply lower charges for private banking loans.
Specific allowances for SMEs were higher and accounted
for a majority of the allowance charges in the first quarter.
12
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CUSTOMER LOANS
1/
($m)
31 Mar 2009
31 Dec 2008
31 Mar 2008
Gross
Less:
Specific allowances
132,784
128,365
115,660
1,051
868
437
General allowances
Net total
1,176
130,557
1,016
126,481
996
114,227
By business unit
Consumer Banking
Institutional Banking
Others
Total (Gross)
35,237
91,184
6,363
132,784
34,758
87,415
6,192
128,365
31,116
77,915
6,629
115,660
By geography
Singapore
Hong Kong
Rest of Greater China
South and South-east Asia
Rest of the world
Total (Gross)
74,981
32,814
9,439
7,920
7,630
132,784
74,377
32,085
9,683
5,557
6,663
128,365
67,294
29,423
6,916
5,198
6,829
115,660
By industry
Manufacturing
Building and construction
Housing loans
General commerce
Transportation, storage & communications
Financial institutions, investment & holding companies
Professionals & private individuals (except housing loans)
Others
Total (Gross)
16,946
18,786
29,882
12,426
13,073
16,988
10,346
14,337
132,784
15,958
17,931
29,375
13,075
12,457
14,490
10,478
14,601
128,365
15,457
14,403
26,581
11,057
11,511
14,236
10,022
12,393
115,660
56,469
17,628
38,841
30,272
680
29,592
29,194
1,686
27,508
16,849
2,436
14,413
132,784
53,527
15,795
37,732
29,347
664
28,683
28,123
1,736
26,387
17,368
2,695
14,673
128,365
45,902
11,769
34,133
26,344
608
25,736
27,406
1,992
25,414
16,008
2,711
13,297
115,660
By currency and fixed/variable pricing
Singapore dollar
Fixed rates
Floating or adjustable rates
Hong Kong dollar
Fixed rates
Floating or adjustable rates
US dollar
Fixed rates
Floating or adjustable rates
Others
Fixed rates
Floating or adjustable rates
Total (Gross)
Note:
1/ Includes customer loans classified as financial assets at fair value through profit or loss on the balance sheet
Gross customer loans rose 3% from the previous quarter.
Excluding currency translation effects, the growth was due
largely to Singapore-dollar corporate borrowing for
infrastructure projects. DBS increased its market share of
Singapore-dollar loans from 20% in the previous quarter to
21%.
Loans in Hong Kong fell 3% in local currency terms during
the quarter, led by a decline in trade finance loans. DBS
maintained its market share at 5% of industry loans.
13
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NON-PERFORMING ASSETS AND LOSS ALLOWANCE COVERAGE
1/
By business unit
NPA
($m)
SP
($m)
GP
($m)
NPL
(% of loans)
(GP+SP)/NPA
(%)
(GP+SP)/
unsecured
NPA
(%)
326
81
351
0.9
133
289
2,028
830
904
2.2
86
144
367
204
(79)
5.8
34
48
2,721
1,115
1,176
2.0
84
142
293
251
338
-
201
216
219
54
213
-
122
202
3,233
1,420
1,727
-
97
156
290
76
347
0.8
146
311
1,467
684
867
1.7
106
169
201
160
(198)
3.3
(19)
(23)
1,958
920
1,016
1.5
99
159
277
236
288
-
189
193
157
52
220
-
173
421
2,392
1,208
1,524
-
114
176
31 Mar 2009
Consumer Banking
Institutional Banking
Others
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
31 Dec 2008
Consumer Banking
Institutional Banking
Others
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
31 Mar 2008
Consumer Banking
229
62
311
0.7
163
379
Institutional Banking
897
378
775
1.2
129
235
Others
Total non-performing
loans (NPL)
62
53
(32)
0.9
34
41
1,188
493
1,054
1.0
130
242
Debt securities
167
160
182
-
205
212
Contingent liabilities
109
7
130
-
125
344
1,464
660
1,366
-
138
241
Total non-performing
assets (NPA)
Note:
1/ Allowances for credit and other losses exclude one-time items
14
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By geography
NPA
($m)
SP
($m)
GP
($m)
NPL
(% of loans)
(GP+SP)/NPA
(%)
(GP+SP)/
unsecured
NPA
(%)
31 Mar 2009
Singapore
747
316
359
1.3
90
160
Hong Kong
860
381
324
2.6
82
152
Rest of Greater China
South and South-east
Asia
Rest of the World
Total non-performing
loans
494
249
115
4.7
74
122
184
72
183
1.7
139
181
436
97
195
2.3
67
101
2,721
1,115
1,176
2.0
84
142
293
251
338
-
201
216
219
54
213
-
122
202
3,233
1,420
1,727
-
97
156
678
271
316
1.0
87
151
Debt securities
Contingent liabilities
& others
Total non-performing
assets
31 Dec 2008
Singapore
Hong Kong
587
313
343
1.7
112
176
Rest of Greater China
South and South-east
Asia
Rest of the World
Total non-performing
loans
457
241
117
4.3
78
128
133
59
159
1.2
164
171
103
36
81
1.3
114
252
1,958
920
1,016
1.5
99
159
277
236
288
-
189
193
157
52
220
-
173
421
2,392
1,208
1,524
-
114
176
31 Mar 2008
Singapore
494
227
425
0.8
132
255
Hong Kong
419
186
284
1.5
112
202
76
28
94
0.9
159
438
65
42
137
0.8
275
339
134
10
114
1.2
93
173
1,188
493
1,054
1.0
130
242
167
160
182
-
205
212
109
7
130
-
125
344
1,464
660
1,366
-
138
241
Debt securities
Contingent liabilities
& others
Total non-performing
assets
Rest of Greater China
South and South-east
Asia
Rest of the World
Total non-performing
loans
Debt securities
Contingent liabilities
& others
Total non-performing
assets
15
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By industry
($m)
31 Mar 2009
NPA
SP
31 Dec 2008
NPA
31 Mar 2008
NPA
SP
SP
Manufacturing
824
381
720
351
328
156
Building and construction
258
44
96
30
73
18
Housing loans
214
42
193
43
145
32
General commerce
472
226
381
187
273
138
29
7
24
6
8
4
433
141
145
66
114
9
Transportation, storage &
communications
Financial institutions, investment
& holding companies
Professionals & private
individuals (except housing
loans)
Others
299
151
223
129
127
56
192
123
176
108
120
80
Total non-performing loans
2,721
1,115
1,958
920
1,188
493
Debt securities
293
251
277
236
167
160
Contingent liabilities & others
219
54
157
52
109
7
Total non-performing assets
3,233
1,420
2,392
1,208
1,464
660
By loan classification
($m)
31 Mar 2009
Non-performing assets
Substandard
31 Dec 2008
31 Mar 2008
NPA
SP
NPA
SP
NPA
SP
1,931
219
1,328
213
846
63
Doubtful
950
849
800
730
373
351
Loss
352
352
264
265
245
246
Total
3,233
1,420
2,392
1,208
1,464
660
Restructured assets
Substandard
282
61
213
46
171
22
Doubtful
61
51
57
49
30
27
Loss
44
44
49
46
37
37
Total
387
156
319
141
238
86
By collateral type
($m)
31 Dec 2008
31 Mar 2008
NPA
NPA
NPA
2,018
1,554
842
Secured non-performing assets by collateral type
Properties
817
556
385
Shares and debentures
121
43
19
18
16
9
259
223
209
3,233
2,392
1,464
Unsecured non-performing assets
Fixed deposits
Others
Total
31 Mar 2009
16
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By period overdue
($m)
31 Mar 2009
31 Dec 2008
31 Mar 2008
NPA
NPA
NPA
Not overdue
180 days overdue
Total
1,042
3,233
746
2,392
513
1,464
Non-performing loans rose 39% from the previous quarter
to $2.72 billion or 2.0% of the loan portfolio, with SME
loans in Hong Kong and corporate loans in Rest of the
World accounting for the majority of the increase.
Including debt securities and contingent liabilities, nonperforming assets amounted to $3.23 billion, of which 34%
were still current in principal and interest and were
classified for prudent reasons.
Allowance coverage for non-performing assets decreased to
97% from 114% in the previous quarter. If collateral was
considered, the coverage was 156%.
FUNDING SOURCES
($m)
1/
Customer deposits
2/
Interbank liabilities
Other borrowings and liabilities 2/
Shareholders’ funds
Total
31 Mar 2009
31 Dec 2008
31 Mar 2008
179,818
12,327
57,065
169,858
9,571
57,470
157,379
21,376
51,848
24,042
273,252
19,819
256,718
20,850
251,453
Notes:
1/
Includes customer deposits classified as financial liabilities at fair value through profit or loss on the balance sheet
2/
Includes liabilities classified as financial liabilities at fair value through profit or loss on the balance sheet
17
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CUSTOMER DEPOSITS
1/
($m)
By currency and product
Singapore dollar
Fixed deposits
Savings accounts
Current accounts
Others
Hong Kong dollar
Fixed deposits
Savings accounts
Current accounts
Others
US dollar
Fixed deposits
Savings accounts
Current accounts
Others
Others
Fixed deposits
Savings accounts
Current accounts
Others
31 Mar 2009
31 Dec 2008
31 Mar 2008
98,356
19,692
65,803
12,198
663
25,147
15,579
6,537
2,702
329
30,615
19,926
2,607
7,309
773
25,700
20,693
1,441
2,295
1,271
179,818
75,890
76,388
24,504
3,036
93,957
20,645
62,068
10,359
885
23,536
15,721
5,030
2,211
574
28,247
19,365
2,040
5,982
860
24,118
20,043
1,231
2,178
666
169,858
75,774
70,369
20,730
2,985
88,440
27,523
49,772
10,512
633
22,706
15,402
4,618
1,904
782
27,489
18,688
1,791
4,772
2,238
18,744
13,653
683
2,164
2,244
157,379
75,266
56,864
19,352
5,897
Total
Fixed deposits
Savings accounts
Current accounts
Others
Note:
1/ Includes customer deposits classified as financial liabilities at fair value through profit or loss on the balance sheet
Customer deposits rose 6% from the previous quarter to
$179.8 billion. Excluding exchange translation effects, the
increase was largely due to Singapore-dollar savings and
current account deposits.
Hong Kong-dollar deposits rose 1% in local currency
terms during the quarter, also due to savings and current
accounts.
The Group’s deposit mix improved further during the
quarter, with savings and current accounts generally
rising across currencies.
OTHER BORROWINGS & LIABILITIES
($m)
1/
Subordinated term debts
Other debt securities in issue
Due within 1 year
Due after 1 year
Comprising:
Secured 2/
Unsecured
Others
Total
31 Mar 2009
31 Dec 2008
31 Mar 2008
9,539
9,085
8,704
310
502
263
375
974
366
419
393
46,714
57,065
333
305
47,747
57,470
425
915
41,804
51,848
Notes:
1/ All subordinated term debts issued are unsecured and due after 1 year
2/ These are mainly secured by properties and securities
18
>(82)-(80)
>(80)-(78)
>(78)-(76)
>(76)-(74)
>(74)-(72)
>(72)-(70)
>(70)-(68)
>(68)-(66)
>(66)-(64)
>(64)-(62)
>(62)-(60)
>(60)-(58)
>(58)-(56)
>(56)-(54)
>(54)-(52)
>(52)-(50)
>(50)-(48)
>(48)-(46)
>(46)-(44)
>(44)-(42)
>(42)-(40)
>(40)-(38)
>(38)-(36)
>(36)-(34)
>(34)-(32)
>(32)-(30)
>(30)-(28)
>(28)-(26)
>(26)-(24)
>(24)-(22)
>(22)-(20)
>(20)-(18)
>(18)-(16)
>(16)-(14)
>(14)-(12)
>(12)-(10)
>(10)-(8)
>(8)-(6)
>(6)-(4)
>(4)-(2)
>(2)-0
>0-2
>2-4
>4-6
>6-8
>8-10
>10-12
>12-14
>14-16
>16-18
>18-20
>20-22
>22-24
>24-26
>26-28
>28-30
>30-32
>32-34
>34-36
>36-38
>38-40
>40-42
>42-44
>44-46
>46-48
>48-50
>50-52
>52-54
>54-56
>56-58
>58-60
>60-62
>62-64
>64-66
>66-68
>68-70
>70-72
>72-74
>74-76
>76-78
>78-80
>80-82
>82-84
>84-86
No. of days
>20-21
>21-22
>22-23
>23-24
>24-25
>25-26
>26-27
>27-28
>28-29
>29-30
>30-31
>31-32
>32-33
>33-34
>34-35
>35-36
>36-37
>37-38
>38-39
>39-40
>40-41
>41-42
>42-43
>43-44
>44-45
>45-46
>46-47
>47-48
>48-49
>49-50
>50-51
>51-52
>52-53
>53-54
>54-55
>55-56
>56-57
>57-58
>58-59
>59-60
No. of Days
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
VALUE AT RISK AND TRADING INCOME
The Group uses a Value at Risk (VaR) measure as one mechanism for monitoring and controlling trading risk. The VaR is
calculated using a one-day time horizon and a 99% confidence interval. The following table shows the period-end, average,
high and low VaR for the trading risk exposure of the Group for the period from 1 April 2008 to 31 March 2009. The Group’s
trading book VaR methodology is based on Historical Simulation VaR.
($m)
As at 31 March 2009
Total
1 April 2008 to 31 March 2009
Average
High
Low
26
34
60
21
The charts below provide the range of VaR and the daily distribution of trading income in the trading portfolio for the
period from 1 April 2008 to 31 March 2009.
DBSH Group VaR for Trading Book
25
20
15
10
5
0
VaR (S$ million)
Daily Distribution of Group Trading Income
(1 Apr 2008 to 31 Mar 2009)
25
20
15
10
5
0
Trading income (S$ million)
19
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CAPITAL ADEQUACY
($m)
Tier 1
Share capital
Disclosed reserves and others
Less: Tier 1 Deductions
Eligible Tier 1
Tier 2
Loan allowances admitted as Tier 2
Subordinated debts
Revaluation surplus from equity securities
Less: Tier 2 Deductions
Total eligible capital
Risk-weighted assets
Capital adequacy ratio (%)
Tier 1 ratio
Tier 2 ratio
Total (Tier 1 & 2) ratio
31 Mar 2009
31 Dec 2008
31 Mar 2008
8,423
20,429
(6,034)
22,818
4,215
20,180
(6,022)
18,373
4,178
18,289
(5,999)
16,468
734
6,901
16
(112)
30,357
181,875
656
6,571
27
(106)
25,521
182,685
583
6,890
100
(114)
23,927
178,678
12.5
4.2
16.7
10.1
3.9
14.0
9.2
4.2
13.4
The Group’s capital adequacy ratio rose from 14.0% (Tier 1 at 10.1%) in the previous quarter to 16.7% (Tier 1 at 12.5%) due
primarily to the rights issue in January 2009.
UNREALISED VALUATION SURPLUS/(LOSSES)
($m)
Properties
Financial investments
Total
31 Mar 2009
31 Dec 2008
31 Mar 2008
513
(321)
192
532
(246)
286
677
(29)
648
The amount of unrealised valuation surplus decreased from $286 million in the previous quarter to $192 million as the surplus
on property investments declined and losses on financial investments rose.
20
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Consolidated Income Statement
1st Qtr
2009
1st Qtr
2008
+/(-)
%
4th Qtr
2008
+/(-)
%
Income
Interest income
Interest expense
Net interest income
Net fee and commission income
Net trading income/(loss)
Net (loss)/income from financial instruments designated at fair value
Net income from financial investments
Other income
1,655
579
1,076
317
204
(54)
106
13
2,147
1,090
1,057
353
(161)
85
211
18
(23)
(47)
2
(10)
NM
NM
(50)
(28)
2,016
901
1,115
263
144
(169)
104
18
(18)
(36)
(3)
21
42
68
2
(28)
Total income
1,662
1,563
6
1,475
13
327
41
270
437
352
34
270
140
(7)
21
>100
391
36
307
316
(16)
14
(12)
38
1,075
796
35
1,050
2
Profit
Share of profits of associates
Profit before tax
587
20
607
767
23
790
(23)
(13)
(23)
425
10
435
38
100
40
Income tax expense
Net profit
115
492
151
639
(24)
(23)
77
358
49
37
433
59
492
603
36
639
(28)
64
(23)
295
63
358
47
(6)
37
1st Qtr
2009
1st Qtr
2008
+/(-)
%
4th Qtr
2008
+/(-)
%
492
639
(23)
358
37
135
6
(79)
(19)
NM
NM
(47)
(16)
NM
NM
(392)
(112)
46
(317)
(97)
(193)
74
(314)
(>100)
42
(38)
(1)
(225)
5
(95)
83
(295)
(74)
NM
(18)
(45)
(7)
175
325
(46)
63
>100
27
148
175
353
(28)
325
(92)
NM
(46)
(10)
73
63
NM
>100
>100
In $ millions
Expenses
Employee benefits
Depreciation of properties and other fixed assets
Other expenses
Allowances for credit and other losses
Total expenses
Attributable to:
Shareholders
Minority interests
Unaudited Consolidated Statement of Comprehensive Income
In $ millions
Net profit
Other comprehensive income:
Foreign currency translation differences for foreign operations
Share of other comprehensive income of associates
Available-for-sale financial assets
Net valuation taken to equity
Transferred to income statement due to impairment
Transferred to income statement on sale
Tax on items taken directly to or transferred from equity
Other comprehensive income, net of tax
Total comprehensive income
Attributable to:
Shareholders
Minority interests
21
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Balance Sheets
31 Mar
2009
GROUP
31 Dec
2008 1/
31 Mar
2008
Cash and balances with central banks
Singapore Government securities and treasury bills
Due from banks
Financial assets at fair value though profit or loss 2/
Positive replacement values for financial derivatives
Loans and advances to customers
Financial investments
Securities pledged
Subsidiaries
Investments in associates
Goodwill on consolidation
Properties and other fixed assets
Investment properties
Deferred tax assets
Other assets
18,292
14,312
28,331
10,890
30,153
129,936
25,025
1,181
640
5,847
1,364
281
219
6,781
15,790
14,797
20,467
9,401
32,328
125,841
22,782
997
604
5,847
1,311
293
171
6,089
13,274
17,604
26,874
17,675
23,053
113,624
21,264
2,345
656
5,841
1,205
285
21
7,732
TOTAL ASSETS
273,252
256,718
251,453
Due to banks
Due to non-bank customers
Financial liabilities at fair value through profit or loss 3/
Negative replacement values for financial derivatives
Bills payable
Current tax liabilities
Deferred tax liabilities
Other liabilities
Other debt securities in issue
Subordinated term debts
11,839
174,914
9,492
29,406
870
822
46
7,183
812
9,539
9,021
163,359
11,282
31,918
714
779
45
5,874
638
9,085
20,590
150,558
15,062
22,534
499
925
97
7,687
1,340
8,704
TOTAL LIABILITIES
244,923
232,715
28,329
In $ millions
31 Mar
2009
COMPANY
31 Dec
2008 1/
31 Mar
2008
10,959
6,745
6,758
99
154
-
11,058
6,899
6,758
3
5
4
227,996
3
5
4
24,003
23,457
11,055
6,894
6,754
8,423
(120)
5,870
9,869
4,215
(154)
6,322
9,436
4,178
(105)
7,435
9,342
8,423
43
2,589
4,215
89
2,590
4,178
(30)
37
2,569
11,055
6,894
6,754
11,055
6,894
6,754
4.74
4.48
4.39
4.64
4.34
4.26
ASSETS
LIABILITIES
NET ASSETS
EQUITY
Share capital
Treasury shares
Other reserves
Revenue reserves
24,042
19,819
20,850
Minority interests
4,287
4,184
2,607
TOTAL EQUITY
28,329
24,003
23,457
99,438
1,697,178
92,656
1,704,717
101,793
1,937,019
SHAREHOLDERS’ FUNDS
OFF BALANCE SHEET ITEMS
Contingent liabilities and commitments
Financial derivatives
OTHER INFORMATION
Net asset value per ordinary share ($)
(i) Based on existing ordinary share capital
(ii) Assuming conversion of outstanding preference
shares to ordinary shares
Notes:
1/ Audited
2/ Includes customer loans, interbank assets, other government securities and treasury bills, corporate debt securities and equity securities
3/ Includes customer deposits, interbank liabilities, other debt securities in issue and other financial liabilities
22
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Consolidated Statement of Changes in Equity
GROUP
In $ millions
Balance at 1 January 2009
Ordinary
shares
4,149
Convertible
preference
shares
Treasury
shares
Other
reserves
Revenue
reserves
Total
Minority
interests
Total equity
66
(154)
6,322
9,436
19,819
4,184
24,003
Cost of share-based payments
9
9
9
Draw-down of reserves upon vesting of
performance shares
55
Purchase of Treasury shares
Issue of shares
Share issues expenses
(55)
(21)
4,029
181
(2)
-
-
(21)
(21)
4,210
4,210
(2)
Dividends paid to minority interests
(2)
(45)
Total comprehensive income
(406)
433
27
148
(45)
175
Balance at 31 March 2009
8,176
247
(120)
5,870
9,869
24,042
4,287
28,329
Balance at 1 January 2008
4,098
66
(102)
7,680
8,739
20,481
2,677
23,158
Exercise of share options
14
14
Cost of share-based payments
5
Share buyback during the period
(3)
5
(3)
(3)
Dividends paid to minority interests
(41)
Change in minority interests
Total comprehensive income
Balance at 31 March 2008
14
5
4,112
66
(105)
(41)
(1)
(1)
(250)
603
353
(28)
325
7,435
9,342
20,850
2,607
23,457
Unaudited Statement of Changes in Equity
COMPANY
In $ millions
Balance at 1 January 2009
Ordinary
shares
4,149
Convertible
preference
shares
66
Other
reserves
Treasury
shares
-
Cost of share-based payments
Draw-down of reserves upon vesting of performance shares
Issue of shares
Share issues expenses
4,029
89
Revenue
reserves
Total equity
2,590
6,894
9
9
(55)
(55)
181
4,210
(2)
(2)
Total comprehensive income
(1)
(1)
Balance at 31 March 2009
8,176
247
-
43
2,589
11,055
Balance at 1 January 2008
4,098
66
(27)
37
2,567
6,741
Exercise of share options
14
14
Share buyback during the period
(3)
(3)
Total comprehensive income
Balance at 31 March 2008
4,112
66
(30)
37
2
2
2,569
6,754
23
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Consolidated Cash Flow Statement
In $ millions
Cash flows from operating activities
Net profit for the year
Adjustments for non-cash items:
Allowances for credit and other losses
Depreciation of properties and other fixed assets
Share of profits of associates
Net gain on disposal of properties and other fixed assets
Net gain on disposal of financial investments
Income tax expense
Profit before changes in operating assets & liabilities
1st Qtr
2009
1st Qtr
1/
2008
492
639
437
41
(20)
(106)
115
959
140
34
(23)
(3)
(211)
151
727
Increase/(Decrease) in:
Due to banks
Due to non-bank customers
Financial liabilities at fair value through profit or loss
Other liabilities including bills payable
Debt securities and borrowings
2,818
11,555
(1,790)
(554)
131
5,126
5,190
(3,180)
10,223
242
(Increase)/Decrease in:
Change in restricted balances with central banks
Singapore Government securities and treasury bills
Due from banks
Financial assets at fair value through profit or loss
Loans and advances to customers
Financial investments
Other assets
(447)
485
(7,864)
(1,489)
(4,460)
(2,215)
837
(379)
(2,171)
(3,568)
1,868
(7,424)
(2,155)
(10,042)
(73)
(105)
(2,107)
(5,648)
Cash flows from investing activities
Dividends from associates
Purchase of properties and other fixed assets
Proceeds from disposal of properties and other fixed assets
19
(49)
4
35
(14)
2
Net cash (used in)/generated from investing activities (2)
(26)
23
Cash flows from financing activities
Increase in share capital and share premium
Purchase of treasury shares
Dividends paid to minority interests
4,208
(21)
(45)
14
(41)
Net cash provided by/(used in) financing activities (3)
Exchange translation adjustments (4)
4,142
46
(27)
(17)
2,055
12,678
14,733
(5,669)
15,953
10,284
Tax paid
Net cash used in operating activities (1)
Net change in cash and cash equivalents (1)+(2)+(3)+(4)
Cash and cash equivalents at 1 January
Cash and cash equivalents at 31 March
Note:
1/ Figures have been restated to make them consistent with current period’s presentation
24
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Additional Information
ISSUANCE OF ORDINARY SHARES
(a)
The movement in the number of issued and fully paid-up ordinary shares for the first quarter ended 31 March 2009
is as follows:
At 1 January 2009
Issue of rights shares
At 31 March 2009
1,520,960,458
760,480,229
2,281,440,68