financial performance fy09
DBS Group Holdings Ltd
Incorporated in the Republic of Singapore
Company Registration Number: 199901152M
To: Shareholders
The DBS Group Holdings Ltd (“DBSH” or “the Company”) Board of Directors report audited financial
results for the year ended 31 December 2009.
For the fourth quarter of 2009, the Directors have recommended a final one-tier tax exempt dividend of 14
cents for each DBSH ordinary share. Details of the proposed dividends in respect of the financial year
ended 31 December are as follows (historical comparisons have been adjusted for the one-for-two rights
issue):
In $ millions
2009
2008
DBSH Non-voting Convertible Preference Share (“CPS”)
Interim one-tier tax exempt dividend* of 30.0 cents (2008 : 25.5 cents )
(a)
(a)
DBSH Non-voting redeemable CPS
Interim one-tier tax exempt dividend* of 30.0 cents (2008 : 25.5 cents )
30
20
959
911
320
319
1,279
1,230
DBSH Ordinary share
Interim one-tier tax exempt dividend* of 42.0 cents (2008 : 51.0 cents )
Final one-tier tax exempt dividend of 14.0 cents (2008 : 14.0 cents )
* Interim dividends were paid to entitled shareholders during the year
(a) Amounts under $500,000
The 2009 final one-tier tax exempt dividend, to which the DBSH Scrip Dividend Scheme will be
applicable, will be subject to shareholders’ approval at the Annual General Meeting to be held on 30
April 2010. The DBSH shares will be quoted ex-dividend on May 20, 2010. Notice is hereby given that
the Share Transfer Books and Register of Members of the Company will be closed on May 25, 2010.
Duly completed transfers received by the Company's Registrar, Tricor Barbinder Share Registration
Services of 8 Cross Street #11-00 PWC Building, Singapore 048424 up to 5.00 p.m. on May 24, 2010
will be registered to determine shareholders' entitlement to the 2009 final one-tier tax exempt dividend.
The issue price for new shares to be allotted to shareholders who have elected to receive the final
dividend in scrip shall be the average of the last dealt prices of each DBSH ordinary share on the SGXST for each of May 20, 21 and 24, 2010, to which a discount of 5% shall be applied.
The payment date for cash dividends / crediting of shares is expected to be in mid July 2010. In
respect of ordinary shares in the securities accounts with The Central Depository (Pte) Limited (“CDP”),
the 2009 final one-tier tax exempt dividend will be paid by DBSH to CDP, which will in turn distribute the
dividend entitlements to shareholders, either in cash or by crediting the securities accounts of
shareholders with the relevant shares.
By order of the Board
Linda Hoon
Group Secretary
3 February 2010
Singapore
More information on the above announcement is available at www.dbs.com/investor
Performance Summary
Financial Results for the Fourth Quarter ended
31 December 2009 (Unaudited) and
For the Year 2009 (Audited)
DBS Group Holdings Ltd
Incorporated in the Republic of Singapore
Company Registration Number: 199901152M
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Contents
Overview
Quarterly Breakdown
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)
Audited Consolidated Income Statement
Audited Consolidated Statement of Comprehensive Income
Audited Balance Sheets
Audited Consolidated Statement of Changes in Equity
Audited Statement of Changes in Equity
Audited 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
7
7
8
9
10
13
16
17
20
21
21
22
23
23
24
24
25
26
27
28
29
29
30
32
1
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
OVERVIEW
DBS Group Holdings Ltd (“DBSH”) prepares its consolidated DBSH Group (“Group”) financial statements in accordance with
Singapore Financial Reporting Standard (“FRS”), 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 and 1 July 20091/, 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 27: Consolidated and Separate Financial Statements – Cost of an Investment in a Subsidiary, Jointly Controlled Entity
or Associate
• FRS 32 : Financial Instruments: Presentation – Puttable Financial Instruments and Obligations Arising on Liquidation
• 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
• INT FRS 118: Transfer of Assets from Customers
Refer to page 29 for more information.
4th Qtr
2009
4th Qtr
2008
%
chg
3rd Qtr
2009
%
chg
Year
2009
Year
2008
%
chg
1,127
358
87
1,572
700
872
384
494
493
1,115
263
93
1,471
689
782
269
523
383
1
36
(6)
7
2
12
43
(6)
29
1,140
361
76
1,577
635
942
265
704
563
(1)
(1)
14
10
(7)
45
(30)
(12)
4,455
1,394
754
6,603
2,604
3,999
1,529
2,536
2,064
4,301
1,274
456
6,031
2,610
3,421
784
2,712
2,056
4
9
65
9
17
95
(6)
-
493
(88)
295
NM
67
563
(12)
(23)
2,041
(127)
1,929
82
6
Selected balance sheet items ($m)
Customer loans 3/
Interbank assets 4/
Total assets
130,583
24,189
258,644
126,481
22,159
256,718
3
9
1
128,308
33,365
259,470
2
(28)
-
130,583
24,189
258,644
126,481
22,159
256,718
3
9
1
Customer deposits 5/
Total liabilities
Shareholders’ funds
183,432
229,145
25,373
169,858
232,715
19,819
8
(2)
28
180,185
230,128
25,174
2
1
183,432
229,145
25,373
169,858
232,715
19,819
8
(2)
28
Key financial ratios (%) (excluding one-time
6/
items)
Net interest margin
Non-interest/total income
Cost/income ratio
Return on assets
Return on equity 7/
Loan/deposit ratio
NPL ratio
Specific allowances (loans)/average loans (bp)
2.02
28.3
44.5
0.76
7.76
71.2
2.9
116
2.04
24.2
46.8
0.59
7.64
74.5
1.5
69
2.03
27.7
40.3
0.86
9.08
71.2
2.6
70
2.02
32.5
39.4
0.80
8.44
71.2
2.9
85
2.04
28.7
43.3
0.84
10.12
74.5
1.5
Tier 1 capital adequacy ratio
Total capital adequacy ratio
13.1
16.7
10.1
14.0
12.5
16.1
13.1
16.7
10.1
14.0
Selected income statement items ($m)
Net interest income
Net fee and commission income
Other non-interest income
Total income
Expenses
Profit before allowances
Allowances for credit and other losses
Profit before tax
Net profit
One-time items 2/
Net profit including one-time items
35
2
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
4th Qtr
2009
4th Qtr
2008
3rd Qtr
2009
Year
2009
Year
2008
0.85
0.85
0.98
0.91
1.14
0.85
10.85
0.80
10.25
0.98
10.76
0.90
10.85
1.07
10.25
0.83
0.82
0.95
0.88
1.10
0.83
10.65
0.78
10.14
0.95
10.57
0.87
10.65
1.04
10.14
Per share data ($) 8/
Per basic share
– earnings excluding one-time items and
goodwill charges
– earnings
– net book value 7/
Per diluted share
– earnings excluding one-time items and
goodwill charges
– earnings
7/
– net book value
Notes:
1/ All the FRS and INT FRS were adopted on 1 January 2009, except INT FRS 118: Transfer of Assets from Customers, which was adopted on 1 July 2009
2/ One-time items include restructuring costs, impairment charges for Thai investment and gains on sale of office buildings in Hong Kong
3/ Includes customer loans classified as financial assets at fair value through profit or loss on the balance sheet
4/ Includes interbank assets classified as financial assets at fair value through profit or loss on the balance sheet
5/ Includes customer deposits classified as financial liabilities at fair value through profit or loss on the balance sheet
6/ Return on assets, return on equity, specific allowances (loan)/average loan and per share data for the quarters are computed on an annualised basis
7/ Minority interests are not included as equity in the computation of net book value and return on equity
8/ Adjusted for shares arising from the rights issue in January 2009
NM Not Meaningful
Fourth-quarter net profit of $493 million was 29% above a
year ago. Revenues rose 7% on better net interest and fee
incomes while expenses were little changed. Higher
allowances were set aside for NPLs. There was also a net
tax write-back of $47 million.
Allowances amounting to $384 million were largely for
new and existing NPLs. Specific allowances for loans
rose to 116 basis points from 70 basis points in the
previous quarter. Allowance coverage was at 83% and
at 108% if collateral was considered.
Compared to the previous quarter, net earnings fell 12%.
Revenues were stable while expenses and allowances
both rose.
Most non-ABS CDO investments were divested during
the quarter at prices that were higher than their carrying
value. This reduced the amount of total CDO
investments to $195 million from $859 million in the
previous quarter.
Net interest income was little changed from both
comparative periods at $1.13 billion. Loan growth was led
by housing loans in Singapore and Hong Kong. Net fee
income of $358 million was similar to the previous quarter
and 36% above a year ago in line with better market and
economic conditions. Net trading income was similar to
the previous quarter and better than a year ago.
Expenses of $700 million were 10% higher than the
previous quarter due to higher technology costs and
higher seasonal advertising and promotional activities.
The total capital adequacy ratio stood at 16.7% with tier1 at 13.1%.
Return on assets was 0.76% while return on equity was
7.8%. Both ratios were better than a year ago but below
the previous quarter.
For the full year, net earnings were maintained at $2.06
billion, with a 17% improvement in profit before allowances
offset by higher allowances.
The non-performing loan rate rose to 2.9% from 2.6% in
the previous quarter due mainly to higher NPLs in Rest
of the World. NPLs continued to decline in most other
markets.
3
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
QUARTERLY BREAKDOWN
($m)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Full Year
1,057
1,076
2
1,058
1,112
5
1,071
1,140
6
1,115
1,127
1
4,301
4,455
4
506
586
16
541
680
26
327
437
34
356
445
25
1,730
2,148
24
1,563
1,662
6
1,599
1,792
12
1,398
1,577
13
1,471
1,572
7
6,031
6,603
9
656
638
(3)
687
631
(8)
578
635
10
689
700
2
2,610
2,604
-
140
414
>100
56
466
>100
319
265
(17)
269
384
43
784
1,529
95
Profit before tax
2008
2009
% chg
790
630
(20)
877
708
(19)
522
704
35
523
494
(6)
2,712
2,536
(6)
Net profit
2008
2009
% chg
603
456
(24)
668
552
(17)
402
563
40
383
493
29
2,056
2,064
-
Add: One-time items 1/
2008
2009
% chg
(23)
NM
(16)
NM
(23)
NM
(88)
NM
(127)
(23)
82
652
552
(15)
379
563
49
295
493
67
1,929
2,041
6
Net interest income
2008
2009
% chg
Non interest income
2008
2009
% chg
Total income
2008
2009
% chg
Expenses
2008
2009
% chg
Allowances for credit and other losses
2008
2009
% chg
Net profit including one-time items and goodwill charges
2008
603
2009
433
% chg
(28)
Note:
1/ One-time items include restructuring costs, impairment charges for Thai investment and gains on sale of office buildings in Hong Kong
Revenues for all quarters were higher than the year-ago
period, led by stronger non-interest income as net fee
and trading incomes rose in line with better capital
markets.
Expenses were below the year-ago period in the first half
but higher in the second half. A positive jaw was
maintained throughout the year as expense growth was
consistently below revenue growth. Full-year expenses were
little changed from the previous year.
Quarterly specific allowances were higher than the year-ago
period in line with rising NPLs. The exception was the third
quarter, when NPLs declined from the previous quarter.
4
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET INTEREST INCOME
Average balance
sheet
4th Qtr 2009
Average
Average
balance Interest
rate
($m)
($m)
(%)
4th Qtr 2008
Average
Average
balance Interest
rate
($m)
($m)
(%)
3rd Qtr 2009
Average
Average
balance Interest
rate
($m)
($m)
(%)
Interest-bearing
assets
Customer loans
Interbank assets
Securities
Total
128,152
41,697
51,613
221,462
968
82
387
1,437
3.00
0.78
2.97
2.57
128,582
38,675
49,801
217,058
1,335
164
517
2,016
4.13
1.69
4.13
3.69
127,454
42,410
52,461
222,325
983
94
402
1,479
3.06
0.88
3.05
2.64
Interest-bearing
liabilities
Customer deposits
Other borrowings
Total
180,701
22,859
203,560
219
91
310
0.48
1.58
0.60
170,719
34,228
204,947
654
247
901
1.52
2.87
1.75
179,319
26,585
205,904
227
112
339
0.50
1.68
0.65
1,127
2.02
1,115
2.04
1,140
2.03
Net interest
income/margin 1/
Year 2009
Average balance
sheet
Average
balance
($m)
Year 2008
Average Average
Interest
rate balance
($m)
(%)
($m)
Interest
($m)
Average
rate
(%)
Interest-bearing
assets
Customer loans
Interbank assets
Securities
Total
127,832
41,782
51,031
220,645
4,075
378
1,661
6,114
3.20
0.91
3.26
2.78
118,614
39,818
52,028
210,460
5,051
926
2,145
8,122
4.25
2.32
4.11
3.86
Interest-bearing
liabilities
Customer deposits
Other borrowings
Total
178,064
26,272
204,336
1,131
528
1,659
0.64
2.02
0.81
161,379
38,486
199,865
2,395
1,426
3,821
1.48
3.70
1.91
4,455
2.02
4,301
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 was stable from a year ago and the
previous quarter at $1.13 billion with both interest margins
and average interest assets little changed.
For the full year, net interest income rose 4% to $4.46
billion due to higher loan and deposit volumes. Interest
margins were little changed as both asset yields and
liability costs fell in a soft interest rate environment.
Interest margins were maintained at 2.02% as asset yields
and liability costs were generally stable from the previous
quarter.
5
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
4th Qtr 2009 versus 4th Qtr 2008
Volume and rate analysis ($m)
Increase/(decrease) due to change in
4th Qtr 2009 versus 3rd Qtr 2009
Volume
Rate
Net
change
Volume
Rate
Net
change
Customer loans
Interbank assets
Securities
(4)
13
19
(363)
(95)
(149)
(367)
(82)
(130)
5
(1)
(20)
(11)
(15)
(12)
Total
28
(607)
(579)
(6)
(2)
(9)
(40)
(15)
(42)
38
(76)
(38)
(473)
(80)
(553)
(435)
(156)
(591)
2
(10)
(8)
(10)
(11)
(21)
(8)
(21)
(29)
66
(54)
12
6
(19)
(13)
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
(13)
Year 2009 versus Year 2008
Volume and rate analysis ($m)
Increase/(decrease) due to change in
Volume
Rate
Net
change
392
46
(41)
397
(1,357)
(593)
(438)
(2,388)
(965)
(547)
(479)
(1,991)
248
(462)
(214)
(1,510)
(434)
(1,944)
(1,262)
(896)
(2,158)
611
(444)
167
Interest income
Customer loans
Interbank assets
Securities
Total
Interest expense
Customer deposits
Other borrowings
Total
Net impact on interest income
Due to change in number of days
(13)
Net Interest Income
154
6
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET FEE AND COMMISSION INCOME
($m)
Stockbroking
Investment banking
Trade and remittances
Loan related
Guarantees
Deposit related
Credit card
Fund management
Wealth management
Others
Total
4th Qtr
2009
4th Qtr
2008
% chg
3rd Qtr
2009
% chg
Year
2009
Year
2008
% chg
41
59
55
85
14
21
36
4
30
13
358
32
16
56
50
11
21
36
5
17
19
263
28
>100
(2)
70
27
(20)
76
(32)
36
51
43
56
86
14
21
37
5
34
14
361
(20)
37
(2)
(1)
(3)
(20)
(12)
(7)
(1)
170
146
244
375
57
84
143
20
101
54
1,394
152
90
225
299
49
81
143
32
137
66
1,274
12
62
8
25
16
4
(38)
(26)
(18)
9
Net fee and commission income of $358 million was
similar to the previous quarter as stronger investment
banking revenues from IPO underwriting offset declines in
other fee activities. The performance was better than a
year ago from improvements in a wide range of activities.
For the full year, net fee and commission income rose 9%
with investment banking and loan syndication registering
the strongest improvements.
OTHER NON-INTEREST INCOME
($m)
Net trading income/(loss)
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)
Total
4th Qtr
2009
4th Qtr
2008
%
chg
3rd Qtr
2009
%
chg
Year
2009
Year
2008
%
chg
179
144
24
83
>100
700
(187)
NM
(124)
(169)
27
(27)
(>100)
(267)
210
NM
3
13
16
104
14
(97)
NM
14
7
13
(57)
NM
23
254
13
54
367
5
61
(31)
>100
(11)
87
93
(6)
76
14
754
456
65
Notes:
1/ Exclude one-time items
NM Not Meaningful
Net trading income of $55 million was maintained at the
previous quarter’s level. The contributions were led by
interest rate and foreign exchange activities and were
supported by customer flows. The performance was an
improvement from a year ago, which had been affected
by losses in credit activities.
For the full year, net trading income improved to $433
million from $23 million as trading conditions improved.
The better trading performance contributed to a 65%
rise in total other non-interest income to $754 million
despite lower gains from the sale of financial
investments.
7
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
EXPENSES
($m)
4th Qtr
2009
4th Qtr
2008
% chg
3rd Qtr
2009
% chg
Year
2009
Year
2008
% chg
Staff 1/
Occupancy
Computerisation
Revenue-related
Others
Total
Staff headcount at period-end
313
56
143
39
149
700
14,033
346
68
126
35
114
689
14,312
(10)
(18)
13
11
31
2
(2)
322
71
114
27
101
635
13,868
(3)
(21)
25
44
48
10
1
1,292
265
473
132
442
2,604
14,033
1,256
253
452
147
502
2,610
14,312
3
5
5
(10)
(12)
(2)
48
1
36
1
33
-
64
1
(25)
-
195
3
149
3
31
-
1
2
(50)
1
-
5
5
-
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 of $700 million were higher than the previous
quarter and a year ago. This was due to increased
accruals for technology projects and higher seasonal
advertising and promotional activities. Staff and
occupancy costs were below both comparative periods.
For the full year, expenses were stable as DBS held a
tight rein on expenses in the face of a challenging
environment. Headcount was reduced by 2% while
non-staff expenses fell by 3%.
8
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
ALLOWANCES FOR CREDIT AND OTHER LOSSES
($m)
4th Qtr
2009
4th Qtr
2008
% chg
3rd Qtr
2009
% chg
Year
2009
Year
2008
% chg
(225)
46
NM
14
NM
154
234
(34)
Specific allowances (SP) for loans
Singapore
Hong Kong
Other countries
387
261
12
114
224
67
111
46
73
>100
(89)
>100
229
201
14
14
69
30
(14)
>100
1,113
703
185
225
419
130
221
68
>100
>100
(16)
>100
Specific allowances (SP) for
securities, properties and other
assets 1/
222
(1)
NM
22
>100
262
131
100
Total
384
269
43
265
45
1,529
784
95
General allowances (GP)
Notes:
1/ Exclude one-time items
Specific allowances for loans of $387 million were made
for new and existing NPLs mainly for use in Rest of the
World. The amounts shown in the table above are by
booking centre.
Most non-ABS CDO investments were disposed of
during the quarter and the allowances that had been
set aside for the portfolio were more than sufficient to
offset the loss on sale of the portfolio.
General allowances of $23 million were taken for loan
growth during the quarter.
For the full year, total allowances doubled to $1.53 billion
due largely to higher specific allowances for several
corporate NPLs in Rest of the World.
9
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY BUSINESS SEGMENTS
($m)
CBG
IBG
GFM
CTU
Central
Ops
Total
Selected income items
4th Qtr 2009
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
236
136
372
349
9
14
14
498
250
748
224
390
134
(7)
141
249
33
282
100
(3)
2
187
37
150
173
(45)
128
(41)
169
27
142
(29)
71
42
27
29
4
(10)
(104)
46
1,127
445
1,572
700
384
6
494
(47)
493
3rd Qtr 2009
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
226
142
368
260
24
84
12
72
507
245
752
188
176
388
66
322
278
94
372
106
5
1
262
56
206
172
(81)
91
8
83
16
67
(43)
37
(6)
73
60
26
(113)
(37)
(104)
1,140
437
1,577
635
265
27
704
113
563
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
855
515
1,370
1,100
74
196
27
169
1,950
1,069
3,019
791
986
1,242
210
1,032
1,127
355
1,482
441
15
7
1,033
217
816
691
(117)
574
33
8
533
89
444
(168)
326
158
239
446
59
(468)
(258)
(397)
4,455
2,148
6,603
2,604
1,529
66
2,536
285
2,064
1/
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
1/
Year 2009
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
10
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
Year 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
Selected balance sheet and other
items 2/
31 Dec 2009
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 4th Qtr 2009
Depreciation for 4th Qtr 2009
Goodwill charge for 4th Qtr 2009
30 Sept 2009
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 3rd Qtr 2009
Depreciation for 3rd Qtr 2009
Goodwill charge for 3rd Qtr 2009
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
CBG
IBG
GFM
CTU
Central
Ops
Total
1,130
611
1,741
1,142
42
557
93
464
1,707
974
2,681
758
427
1,496
289
1,207
1,190
(159)
1,031
483
64
3
487
140
347
648
44
692
30
223
439
76
363
(374)
260
(114)
197
28
72
(267)
(152)
(325)
4,301
1,730
6,031
2,610
784
75
2,712
446
2,056
40,005
101,665
83,587
27,142
398
102,562
14
13
68,232
4
4
36,717
4
3
1,065
-
20,569
37
28
252,797
5,847
258,644
229,145
59
48
-
38,985
99,242
86,354
27,222
1,820
101,717
6
11
66,660
6
5
41,386
2
3
751
-
19,614
36
45
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
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
11
253,623
5,847
259,470
230,128
50
64
-
250,871
5,847
256,718
232,715
54
36
-
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
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. During the quarter, no one
group of related customers generated more than 10% of
the Group’s revenues.
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, investment and insurance
products.
Compared to the previous quarter, net interest income
rose due to housing loan growth. Non-interest income
declined as there had been performance-related fees in
the previous quarter. Expenses were higher due to
technology cost accruals and year-end expenses.
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.
Compared to the previous quarter, revenues were little
changed as lower net interest income was offset by higher
non-interest income. Expenses were higher due to
technology accruals while allowances rose as charges
were taken for new and existing NPLs 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 securities custodian services and
distribution of primary and secondary issues.
GFM’s revenues were lower than the previous quarter due
to typically thin year-end market trading activities.
Expenses were stable.
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.
12
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
Selected income items
4th Qtr 2009
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
704
250
954
410
209
3
338
(45)
335
216
126
342
154
37
151
23
128
75
13
88
81
35
6
(22)
(9)
(13)
79
26
105
46
15
(3)
41
6
35
53
30
83
9
88
(14)
(22)
8
1,127
445
1,572
700
384
6
494
(47)
493
3rd Qtr 2009
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
706
228
934
367
227
6
346
50
268
226
105
331
145
14
172
29
143
73
28
101
66
14
5
26
5
21
84
36
120
44
10
16
82
12
70
51
40
91
13
78
17
61
1,140
437
1,577
635
265
27
704
113
563
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
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
Year 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
2,738
1,253
3,991
1,512
1,034
16
1,461
88
1,186
888
478
1,366
600
210
556
92
464
302
107
409
270
74
17
82
14
68
326
175
501
172
69
33
293
67
226
201
135
336
50
142
144
24
120
4,455
2,148
6,603
2,604
1,529
66
2,536
285
2,064
13
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
S’pore
Hong
Kong
Rest of
Greater
China
South
and
Southeast Asia
Rest of
world
Total
2,869
803
3,672
1,467
423
21
1,803
249
1,344
873
538
1,411
723
233
455
65
390
264
115
379
203
72
14
118
14
104
164
195
359
154
35
40
210
58
152
131
79
210
63
21
126
60
66
4,301
1,730
6,031
2,610
784
75
2,712
446
2,056
Selected balance sheet items 2/
31 Dec 2009
Total assets before goodwill
Goodwill on consolidation
Total assets
Non-current assets 3/
165,652
198
165,850
1,485
47,653
5,649
53,302
530
14,362
14,362
142
12,743
12,743
46
12,387
12,387
1
252,797
5,847
258,644
2,204
30 Sept 2009
Total assets before goodwill
Goodwill on consolidation
Total assets
3/
Non-current assets
165,741
198
165,939
1,457
47,342
5,649
52,991
555
15,023
15,023
147
12,676
12,676
49
12,841
12,841
1
253,623
5,847
259,470
2,209
31 Dec 2008
Total assets before goodwill
Goodwill on consolidation
Total assets
3/
Non-current assets
170,132
198
170,330
1,457
44,119
5,649
49,768
570
16,563
16,563
141
9,889
9,889
38
10,168
10,168
2
250,871
5,847
256,718
2,208
Year 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
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
14
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
The performance by geography is classified based on the
location in which income and assets are recorded.
Singapore
Net profit rose to $335 million from $268 million in the
previous quarter as higher expenses were more than
offset by a tax write-back.
Net interest income was stable from the previous quarter.
Loans were little changed as an increase in housing loans
was offset by a decline in corporate loans. Non-interest
income rose 10%, helped by better trading income.
Expenses were 12% higher from the previous quarter due
to technology and seasonal expenses. Allowances fell 8%
as an increase in specific loan allowances was more than
offset by a net write-back in general allowances arising
from the disposal of CDO investments. There was a net
tax write-back of $45 million.
Hong Kong
The fourth quarter’s results incorporate an appreciation of
the Singapore dollar against the Hong Kong dollar of 3%
from the previous quarter and 6% from a year ago.
Net profit declined to $128 million from $143 million in the
previous quarter, largely due to higher general allowances.
Earnings before allowances were stable as an increase in
non-interest income was offset by higher expenses.
Net interest income declined 4% from the previous quarter
due to lower credit spreads. Loans rose 6% in local
currency terms during the quarter as housing loans and
corporate loans grew.
Non-interest income rose 20% from the previous quarter,
boosted by a range of fee activities, including unit trust
sales which rose 33%. Sales for forex and interest rate
treasury products also increased from higher corporate
demand.
Expenses were 6% higher due to seasonal factors. The
increase in allowances to $37 million was due to general
allowances in line with the strong loan growth. Specific
allowances were little changed from the previous quarter.
15
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CUSTOMER LOANS 1/
($m)
31 Dec 2009
30 Sept 2009
31 Dec 2008
133,420
130,863
128,365
General allowances
Net total
1,512
1,325
130,583
1,214
1,341
128,308
868
1,016
126,481
By business unit
Consumer Banking
Institutional Banking
Others
Total (Gross)
39,365
87,530
6,525
133,420
36,795
87,532
6,536
130,863
34,758
87,415
6,192
128,365
By geography
Singapore
Hong Kong
Rest of Greater China
South and South-east Asia
Rest of the world
Total (Gross)
75,117
33,431
10,252
8,058
6,562
133,420
74,807
31,828
9,510
8,399
6,319
130,863
74,377
32,085
9,683
5,557
6,663
128,365
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)
16,239
18,433
33,120
13,335
12,277
16,710
10,873
12,433
133,420
16,242
17,722
30,956
12,245
13,026
16,939
10,559
13,174
130,863
15,958
17,931
29,375
13,075
12,457
14,490
10,478
14,601
128,365
56,712
22,489
34,223
30,274
621
29,653
29,449
2,500
26,949
16,985
2,940
14,045
133,420
56,556
20,182
36,374
29,042
602
28,440
27,773
2,078
25,695
17,492
3,032
14,460
130,863
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
Gross
Less:
Specific allowances
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
Customer loans rose 2% from the previous quarter to $133.4
billion, led by housing loans in Singapore and Hong Kong.
Corporate loans were little changed during the quarter.
Loans in Hong Kong rose 6% in local currency terms
from the previous quarter as housing and corporate
loans were higher.
16
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NON-PERFORMING ASSETS AND LOSS ALLOWANCE COVERAGE 1/
By business unit
NPA
($m)
SP
($m)
GP
($m)
NPL
(% of loans)
(GP+SP)/NPA
(%)
(GP+SP)/
unsecured
NPA
(%)
294
67
393
0.7
157
328
3,114
1,271
863
3.6
69
88
468
267
69
7.2
72
89
3,876
1,605
1,325
2.9
76
100
160
106
92
-
124
164
183
97
255
-
192
209
4,219
1,808
1,672
-
83
108
335
78
359
0.9
131
287
2,532
928
867
2.9
71
102
552
282
115
8.5
72
95
3,419
1,288
1,341
2.6
77
113
208
131
342
-
227
282
196
102
218
-
163
177
3,823
1,521
1,901
-
90
128
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 Dec 2009
Consumer Banking
Institutional Banking
Others
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
30 Sept 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)
Note:
1/ Allowances for credit and other losses exclude one-time items
17
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By geography
31 Dec 2009
Singapore
Hong Kong
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
30 Sept 2009
Singapore
Hong Kong
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
31 Dec 2008
Singapore
Hong Kong
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
NPA
($m)
SP
($m)
GP
($m)
NPL
(% of loans)
(GP+SP)/NPA
(%)
(GP+SP)/
unsecured
NPA
(%)
731
567
352
213
327
213
546
330
121
1.2
1.7
3.1
104
116
95
244
173
143
157
82
174
1.3
163
186
2,069
770
154
13.1
45
49
3,876
1,605
1,325
2.9
76
100
160
106
92
-
124
164
183
97
255
-
192
209
4,219
1,808
1,672
-
83
108
773
650
376
208
375
198
564
318
113
1.3
2.0
3.6
100
107
83
249
157
129
174
72
195
1.5
153
181
1,446
435
151
9.4
41
49
3,419
1,288
1,341
2.6
77
113
208
131
342
-
227
282
196
102
218
-
163
177
3,823
1,521
1,901
-
90
128
678
587
457
271
313
241
316
343
117
1.1
1.7
4.3
87
112
78
151
176
128
133
59
159
1.2
164
171
103
36
81
0.7
114
252
1,958
920
1,016
1.5
99
159
277
236
288
-
189
193
157
52
220
-
173
421
2,392
1,208
1,524
-
114
176
18
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By industry
($m)
31 Dec 2009
30 Sept 2009
31 Dec 2008
NPA
SP
NPA
SP
NPA
SP
735
89
188
472
386
22
30
238
694
93
234
480
349
24
41
177
720
96
193
381
351
30
43
187
264
97
246
39
24
6
Financial institutions, investment &
holding companies
1,738
621
1,200
369
145
66
Professionals & private individuals
(except housing loans)
234
113
265
138
223
129
Manufacturing
Building and construction
Housing loans
General commerce
Transportation, storage &
communications
Others
156
98
207
151
176
108
3,876
160
1,605
106
3,419
208
1,288
131
1,958
277
920
236
Contingent liabilities & others
183
97
196
102
157
52
Total non-performing assets
4,219
1,808
3,823
1,521
2,392
1,208
By loan classification
($m)
31 Dec 2009
Total non-performing loans
Debt securities
Non-performing assets
Substandard
Doubtful
Loss
Total
Restructured assets
Substandard
Doubtful
Loss
Total
30 Sept 2009
31 Dec 2008
NPA
SP
NPA
SP
NPA
SP
2,155
1,431
633
4,219
195
977
636
1,808
2,476
830
517
3,823
356
648
517
1,521
1,328
800
264
2,392
213
730
265
1,208
389
90
54
533
51
73
54
178
440
68
44
552
62
54
44
160
213
57
49
319
46
49
46
141
By collateral type
($m)
31 Dec 2009
30 Sept 2009
31 Dec 2008
NPA
NPA
NPA
3,233
2,683
1,554
Secured non-performing assets by collateral type
Properties
540
629
556
Shares and debentures
Fixed deposits
Others
124
22
300
149
13
349
43
16
223
4,219
3,823
2,392
Unsecured non-performing assets
Total
19
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By period overdue
($m)
31 Dec 2009
30 Sept 2009
31 Dec 2008
NPA
NPA
NPA
Not overdue
180 days overdue
1,802
358
113
1,946
1,313
648
655
1,207
857
463
326
746
Total
4,219
3,823
2,392
Non-performing loans rose 13% from the previous quarter
to $3.88 billion or 2.9% of the loan portfolio. The increase
was largely accounted for by corporate NPLs in Rest of
the World. NPLs in other markets declined from the
previous quarter.
Forty-three percent of non-performing assets were still
current in interest principal, compared to 34% in the
previous quarter.
Allowance coverage was 83% of non-performing assets
and was 108% if collateral was considered.
FUNDING SOURCES
($m)
Customer deposits 1/
Interbank liabilities 2/
Other borrowings and liabilities 2/
Shareholders’ funds
Total
31 Dec 2009
30 Sept 2009
31 Dec 2008
183,432
9,320
40,519
25,373
258,644
180,185
9,138
44,973
25,174
259,470
169,858
9,571
57,470
19,819
256,718
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
20
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
Total
Fixed deposits
Savings accounts
Current accounts
Others
31 Dec 2009
30 Sept 2009
31 Dec 2008
103,842
20,617
69,160
12,697
1,368
23,625
12,285
7,932
3,254
154
29,018
14,912
3,468
8,846
1,792
26,947
20,441
2,191
2,908
1,407
183,432
68,255
82,751
27,705
4,721
99,475
18,358
67,186
12,794
1,137
25,047
13,084
8,001
3,609
353
30,523
17,371
3,484
8,231
1,437
25,140
19,438
1,882
2,369
1,451
180,185
68,251
80,553
27,003
4,378
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
Note:
1/ Includes customer deposits classified as financial liabilities at fair value through profit or loss on the balance sheet
Customer deposits rose 2% from the previous quarter to
$183.4 billion due to Singapore-dollar deposit growth.
The overall deposit mix improved further during the
quarter as the proportion of savings and current
accounts increased.
OTHER BORROWINGS & LIABILITIES
($m)
Subordinated term debts1/
Other debt securities in issue
Due within 1 year
Due after 1 year
Comprising:
2/
Secured
Unsecured
Others
Total
31 Dec 2009
30 Sept 2009
31 Dec 2008
7,702
7,790
9,085
44
369
102
506
263
375
75
338
32,404
40,519
108
500
36,575
44,973
333
305
47,747
57,470
Notes:
1/ All subordinated term debts issued are unsecured
2/ These are mainly secured by properties and securities
21
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 January 2009 to 31 December 2009. The
Group’s trading book VaR methodology is based on Historical Simulation VaR.
($m)
1 January 2009 to 31 December 2009
Average
High
Low
As at 31 December 2009
Total
22
33
52
21
The charts below provide the range of VaR and the daily distribution of trading income in the trading portfolio for the
period from 1 January 2009 to 31 December 2009.
D BSH Gr ou p Va R for Tra din g Book
20
18
No. of Days
16
14
12
10
8
6
4
2
> 46- 47
> 45- 46
> 44- 45
> 43- 44
> 42- 43
> 41- 42
> 40- 41
> 39- 40
> 38- 39
> 37- 38
> 36- 37
> 35- 36
> 34- 35
> 33- 34
> 32- 33
> 31- 32
> 30- 31
> 29- 30
> 28- 29
> 27- 28
> 26- 27
> 25- 26
> 24- 25
> 23- 24
> 22- 23
> 21- 22
> 20- 21
> 19- 20
0
VaR ( S$ m illion)
Note:
With effect from 1 Jun 2009, the number of historical scenarios used for the VaR calculation was revised from 500 days to 250 days
Daily Distribution of Group Trading Income
(1 Jan 2009 to 31 Dec 2009)
35
30
20
15
10
5
Trading income (S$ million)
22
>48-50
>44-46
>40-42
>36-38
>32-34
>28-30
>24-26
>20-22
>16-18
>12-14
>8-10
>4-6
>0-2
>(4)-(2)
>(8)-(6)
>(12)-(10)
>(16)-(14)
>(20)-(18)
>(24)-(22)
>(28)-(26)
>(32)-(30)
>(36)-(34)
>(40)-(38)
0
>(44)-(42)
No. of days
25
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CAPITAL ADEQUACY
($m)
Tier 1
Share capital
Disclosed reserves and others
Less: Tier 1 Deductions
Eligible Tier 1
Tier 2
Loan allowances admitted as Tier 2
Subordinated debts
Revaluation surplus from equity securities
Less: Tier 2 Deductions
Total eligible capital
Risk-weighted assets
Capital adequacy ratio (%)
Tier 1 ratio
Tier 2 ratio
Total (Tier 1 & 2) ratio
31 Dec 2009
30 Sept 2009
31 Dec 2008
8,435
20,928
(6,098)
23,265
8,432
20,761
(6,053)
23,140
4,215
20,180
(6,022)
18,373
434
5,970
87
(128)
29,628
177,222
623
6,025
65
(124)
29,729
185,222
656
6,571
27
(106)
25,521
182,685
13.1
3.6
16.7
12.5
3.6
16.1
10.1
3.9
14.0
The Group’s capital adequacy ratio increased from 16.1% in the previous quarter to 16.7% due primarily to a decline in riskweighted assets.
UNREALISED VALUATION SURPLUS/(LOSSES)
($m)
Properties
Financial investments
Total
31 Dec 2009
30 Sept 2009
31 Dec 2008
511
106
617
561
85
646
532
(246)
286
The amount of unrealised valuation surplus decreased from $646 million in the previous quarter to $617 million mainly due to
lower property valuation.
23
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Audited Consolidated Income Statement
In $ millions
4th Qtr 4th Qtr
20091/ 20081/
+/(-) 3rd Qtr
% 20091/
+/(-)
%
Year
2009
Year
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
1,437
310
1,127
358
179
(124)
3
29
2,016
901
1,115
263
144
(169)
104
18
(29)
(66)
1
36
24
27
(97)
61
1,479
339
1,140
361
83
(27)
7
13
(3)
(9)
(1)
(1)
>100
(>100)
(57)
>100
6,114
1,659
4,455
1,394
700
(267)
254
67
8,122
3,821
4,301
1,274
(187)
210
367
88
(25)
(57)
4
9
NM
NM
(31)
(24)
Total income
1,572
1,475
7
1,577
-
6,603
6,053
9
313
48
339
384
391
36
307
316
(20)
33
10
22
322
64
249
265
(3)
(25)
36
45
1,292
195
1,117
1,552
1,301
149
1,205
888
(1)
31
(7)
75
1,084
1,050
3
900
20
4,156
3,543
17
Profit
Share of profits of associates
Profit before tax
488
6
494
425
10
435
15
(40)
14
677
27
704
(28)
(78)
(30)
2,447
66
2,513
2,510
75
2,585
(3)
(12)
(3)
Income tax expense
Net profit
(47)
541
77
358
NM
51
113
591
NM
(8)
285
2,228
446
2,139
(36)
4
493
48
541
295
63
358
67
(24)
51
563
28
591
(12)
71
(8)
2,041
187
2,228
1,929
210
2,139
6
(11)
4
+/(-) 3rd Qtr
%
2009
+/(-)
%
Year
2008
+/(-)
%
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
Note:
1/ Unaudited
Audited Consolidated Statement of Comprehensive Income
In $ millions
Net profit
4th Qtr 4th Qtr
2009
2008
Year
2009
541
358
51
591
(8)
2,228
2,139
4
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
(4)
2
(47)
(16)
91
NM
(18)
1
78
100
31
18
(58)
(40)
NM
NM
32
(31)
(15)
(16)
(225)
5
(95)
83
(295)
NM
NM
67
NM
95
540
(29)
(55)
439
(94)
(7)
73
NM
932
(312)
(100)
569
(1,217)
21
(349)
256
(1,387)
NM
NM
11
NM
NM
Total comprehensive income
525
63
>100
1,030
(49)
2,797
752
>100
490
35
525
(10)
73
63
NM
(52)
>100
1,029
1
1,030
(52)
>100
(49)
2,616
181
2,797
549
203
752
>100
(11)
>100
Attributable to:
Shareholders
Minority interests
24
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Audited Balance Sheets
31 Dec
2009
GROUP
30 Sept
2009 1/
31 Dec
2008
31 Dec
2009
COMPANY
30 Sep
2009 1/
31 Dec
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 fair 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
22,515
15,960
22,203
11,257
16,015
129,973
25,731
784
672
5,847
1,134
398
144
6,011
12,703
15,072
31,524
12,283
17,761
127,703
25,884
876
653
5,847
1,179
377
129
7,479
15,790
14,797
20,467
9,401
32,328
125,841
22,782
997
604
5,847
1,311
293
171
6,089
9,698
9,993
6,745
93
98
154
TOTAL ASSETS
258,644
259,470
256,718
9,791
10,091
6,899
Due to banks
Due to non-bank customers
Financial liabilities at fair value through profit or loss 3/
Negative fair values for financial derivatives
Bills payable
Current tax liabilities
Deferred tax liabilities
Other liabilities
Other debt securities in issue
Subordinated term debts
9,108
178,448
9,217
16,406
501
807
54
6,489
413
7,702
8,665
174,683
10,917
18,118
774
912
56
7,605
608
7,790
9,021
163,359
11,282
31,918
714
779
45
5,874
638
9,085
5
4
5
TOTAL LIABILITIES
229,145
230,128
232,715
5
4
5
29,499
29,342
24,003
9,786
10,087
6,894
Share capital
Treasury shares
Other reserves
Revenue reserves
8,435
(114)
6,879
10,173
8,433
(120)
6,863
9,998
4,215
(154)
6,322
9,436
8,435
71
1,280
8,433
52
1,602
4,215
89
2,590
SHAREHOLDERS’ FUNDS
25,373
25,174
19,819
9,786
10,087
6,894
Minority interests
4,126
4,168
4,184
TOTAL EQUITY
29,499
29,342
24,003
9,786
10,087
6,894
98,207
1,396,855
9
Incorporated in the Republic of Singapore
Company Registration Number: 199901152M
To: Shareholders
The DBS Group Holdings Ltd (“DBSH” or “the Company”) Board of Directors report audited financial
results for the year ended 31 December 2009.
For the fourth quarter of 2009, the Directors have recommended a final one-tier tax exempt dividend of 14
cents for each DBSH ordinary share. Details of the proposed dividends in respect of the financial year
ended 31 December are as follows (historical comparisons have been adjusted for the one-for-two rights
issue):
In $ millions
2009
2008
DBSH Non-voting Convertible Preference Share (“CPS”)
Interim one-tier tax exempt dividend* of 30.0 cents (2008 : 25.5 cents )
(a)
(a)
DBSH Non-voting redeemable CPS
Interim one-tier tax exempt dividend* of 30.0 cents (2008 : 25.5 cents )
30
20
959
911
320
319
1,279
1,230
DBSH Ordinary share
Interim one-tier tax exempt dividend* of 42.0 cents (2008 : 51.0 cents )
Final one-tier tax exempt dividend of 14.0 cents (2008 : 14.0 cents )
* Interim dividends were paid to entitled shareholders during the year
(a) Amounts under $500,000
The 2009 final one-tier tax exempt dividend, to which the DBSH Scrip Dividend Scheme will be
applicable, will be subject to shareholders’ approval at the Annual General Meeting to be held on 30
April 2010. The DBSH shares will be quoted ex-dividend on May 20, 2010. Notice is hereby given that
the Share Transfer Books and Register of Members of the Company will be closed on May 25, 2010.
Duly completed transfers received by the Company's Registrar, Tricor Barbinder Share Registration
Services of 8 Cross Street #11-00 PWC Building, Singapore 048424 up to 5.00 p.m. on May 24, 2010
will be registered to determine shareholders' entitlement to the 2009 final one-tier tax exempt dividend.
The issue price for new shares to be allotted to shareholders who have elected to receive the final
dividend in scrip shall be the average of the last dealt prices of each DBSH ordinary share on the SGXST for each of May 20, 21 and 24, 2010, to which a discount of 5% shall be applied.
The payment date for cash dividends / crediting of shares is expected to be in mid July 2010. In
respect of ordinary shares in the securities accounts with The Central Depository (Pte) Limited (“CDP”),
the 2009 final one-tier tax exempt dividend will be paid by DBSH to CDP, which will in turn distribute the
dividend entitlements to shareholders, either in cash or by crediting the securities accounts of
shareholders with the relevant shares.
By order of the Board
Linda Hoon
Group Secretary
3 February 2010
Singapore
More information on the above announcement is available at www.dbs.com/investor
Performance Summary
Financial Results for the Fourth Quarter ended
31 December 2009 (Unaudited) and
For the Year 2009 (Audited)
DBS Group Holdings Ltd
Incorporated in the Republic of Singapore
Company Registration Number: 199901152M
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Contents
Overview
Quarterly Breakdown
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)
Audited Consolidated Income Statement
Audited Consolidated Statement of Comprehensive Income
Audited Balance Sheets
Audited Consolidated Statement of Changes in Equity
Audited Statement of Changes in Equity
Audited 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
7
7
8
9
10
13
16
17
20
21
21
22
23
23
24
24
25
26
27
28
29
29
30
32
1
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
OVERVIEW
DBS Group Holdings Ltd (“DBSH”) prepares its consolidated DBSH Group (“Group”) financial statements in accordance with
Singapore Financial Reporting Standard (“FRS”), 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 and 1 July 20091/, 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 27: Consolidated and Separate Financial Statements – Cost of an Investment in a Subsidiary, Jointly Controlled Entity
or Associate
• FRS 32 : Financial Instruments: Presentation – Puttable Financial Instruments and Obligations Arising on Liquidation
• 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
• INT FRS 118: Transfer of Assets from Customers
Refer to page 29 for more information.
4th Qtr
2009
4th Qtr
2008
%
chg
3rd Qtr
2009
%
chg
Year
2009
Year
2008
%
chg
1,127
358
87
1,572
700
872
384
494
493
1,115
263
93
1,471
689
782
269
523
383
1
36
(6)
7
2
12
43
(6)
29
1,140
361
76
1,577
635
942
265
704
563
(1)
(1)
14
10
(7)
45
(30)
(12)
4,455
1,394
754
6,603
2,604
3,999
1,529
2,536
2,064
4,301
1,274
456
6,031
2,610
3,421
784
2,712
2,056
4
9
65
9
17
95
(6)
-
493
(88)
295
NM
67
563
(12)
(23)
2,041
(127)
1,929
82
6
Selected balance sheet items ($m)
Customer loans 3/
Interbank assets 4/
Total assets
130,583
24,189
258,644
126,481
22,159
256,718
3
9
1
128,308
33,365
259,470
2
(28)
-
130,583
24,189
258,644
126,481
22,159
256,718
3
9
1
Customer deposits 5/
Total liabilities
Shareholders’ funds
183,432
229,145
25,373
169,858
232,715
19,819
8
(2)
28
180,185
230,128
25,174
2
1
183,432
229,145
25,373
169,858
232,715
19,819
8
(2)
28
Key financial ratios (%) (excluding one-time
6/
items)
Net interest margin
Non-interest/total income
Cost/income ratio
Return on assets
Return on equity 7/
Loan/deposit ratio
NPL ratio
Specific allowances (loans)/average loans (bp)
2.02
28.3
44.5
0.76
7.76
71.2
2.9
116
2.04
24.2
46.8
0.59
7.64
74.5
1.5
69
2.03
27.7
40.3
0.86
9.08
71.2
2.6
70
2.02
32.5
39.4
0.80
8.44
71.2
2.9
85
2.04
28.7
43.3
0.84
10.12
74.5
1.5
Tier 1 capital adequacy ratio
Total capital adequacy ratio
13.1
16.7
10.1
14.0
12.5
16.1
13.1
16.7
10.1
14.0
Selected income statement items ($m)
Net interest income
Net fee and commission income
Other non-interest income
Total income
Expenses
Profit before allowances
Allowances for credit and other losses
Profit before tax
Net profit
One-time items 2/
Net profit including one-time items
35
2
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
4th Qtr
2009
4th Qtr
2008
3rd Qtr
2009
Year
2009
Year
2008
0.85
0.85
0.98
0.91
1.14
0.85
10.85
0.80
10.25
0.98
10.76
0.90
10.85
1.07
10.25
0.83
0.82
0.95
0.88
1.10
0.83
10.65
0.78
10.14
0.95
10.57
0.87
10.65
1.04
10.14
Per share data ($) 8/
Per basic share
– earnings excluding one-time items and
goodwill charges
– earnings
– net book value 7/
Per diluted share
– earnings excluding one-time items and
goodwill charges
– earnings
7/
– net book value
Notes:
1/ All the FRS and INT FRS were adopted on 1 January 2009, except INT FRS 118: Transfer of Assets from Customers, which was adopted on 1 July 2009
2/ One-time items include restructuring costs, impairment charges for Thai investment and gains on sale of office buildings in Hong Kong
3/ Includes customer loans classified as financial assets at fair value through profit or loss on the balance sheet
4/ Includes interbank assets classified as financial assets at fair value through profit or loss on the balance sheet
5/ Includes customer deposits classified as financial liabilities at fair value through profit or loss on the balance sheet
6/ Return on assets, return on equity, specific allowances (loan)/average loan and per share data for the quarters are computed on an annualised basis
7/ Minority interests are not included as equity in the computation of net book value and return on equity
8/ Adjusted for shares arising from the rights issue in January 2009
NM Not Meaningful
Fourth-quarter net profit of $493 million was 29% above a
year ago. Revenues rose 7% on better net interest and fee
incomes while expenses were little changed. Higher
allowances were set aside for NPLs. There was also a net
tax write-back of $47 million.
Allowances amounting to $384 million were largely for
new and existing NPLs. Specific allowances for loans
rose to 116 basis points from 70 basis points in the
previous quarter. Allowance coverage was at 83% and
at 108% if collateral was considered.
Compared to the previous quarter, net earnings fell 12%.
Revenues were stable while expenses and allowances
both rose.
Most non-ABS CDO investments were divested during
the quarter at prices that were higher than their carrying
value. This reduced the amount of total CDO
investments to $195 million from $859 million in the
previous quarter.
Net interest income was little changed from both
comparative periods at $1.13 billion. Loan growth was led
by housing loans in Singapore and Hong Kong. Net fee
income of $358 million was similar to the previous quarter
and 36% above a year ago in line with better market and
economic conditions. Net trading income was similar to
the previous quarter and better than a year ago.
Expenses of $700 million were 10% higher than the
previous quarter due to higher technology costs and
higher seasonal advertising and promotional activities.
The total capital adequacy ratio stood at 16.7% with tier1 at 13.1%.
Return on assets was 0.76% while return on equity was
7.8%. Both ratios were better than a year ago but below
the previous quarter.
For the full year, net earnings were maintained at $2.06
billion, with a 17% improvement in profit before allowances
offset by higher allowances.
The non-performing loan rate rose to 2.9% from 2.6% in
the previous quarter due mainly to higher NPLs in Rest
of the World. NPLs continued to decline in most other
markets.
3
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
QUARTERLY BREAKDOWN
($m)
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Full Year
1,057
1,076
2
1,058
1,112
5
1,071
1,140
6
1,115
1,127
1
4,301
4,455
4
506
586
16
541
680
26
327
437
34
356
445
25
1,730
2,148
24
1,563
1,662
6
1,599
1,792
12
1,398
1,577
13
1,471
1,572
7
6,031
6,603
9
656
638
(3)
687
631
(8)
578
635
10
689
700
2
2,610
2,604
-
140
414
>100
56
466
>100
319
265
(17)
269
384
43
784
1,529
95
Profit before tax
2008
2009
% chg
790
630
(20)
877
708
(19)
522
704
35
523
494
(6)
2,712
2,536
(6)
Net profit
2008
2009
% chg
603
456
(24)
668
552
(17)
402
563
40
383
493
29
2,056
2,064
-
Add: One-time items 1/
2008
2009
% chg
(23)
NM
(16)
NM
(23)
NM
(88)
NM
(127)
(23)
82
652
552
(15)
379
563
49
295
493
67
1,929
2,041
6
Net interest income
2008
2009
% chg
Non interest income
2008
2009
% chg
Total income
2008
2009
% chg
Expenses
2008
2009
% chg
Allowances for credit and other losses
2008
2009
% chg
Net profit including one-time items and goodwill charges
2008
603
2009
433
% chg
(28)
Note:
1/ One-time items include restructuring costs, impairment charges for Thai investment and gains on sale of office buildings in Hong Kong
Revenues for all quarters were higher than the year-ago
period, led by stronger non-interest income as net fee
and trading incomes rose in line with better capital
markets.
Expenses were below the year-ago period in the first half
but higher in the second half. A positive jaw was
maintained throughout the year as expense growth was
consistently below revenue growth. Full-year expenses were
little changed from the previous year.
Quarterly specific allowances were higher than the year-ago
period in line with rising NPLs. The exception was the third
quarter, when NPLs declined from the previous quarter.
4
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET INTEREST INCOME
Average balance
sheet
4th Qtr 2009
Average
Average
balance Interest
rate
($m)
($m)
(%)
4th Qtr 2008
Average
Average
balance Interest
rate
($m)
($m)
(%)
3rd Qtr 2009
Average
Average
balance Interest
rate
($m)
($m)
(%)
Interest-bearing
assets
Customer loans
Interbank assets
Securities
Total
128,152
41,697
51,613
221,462
968
82
387
1,437
3.00
0.78
2.97
2.57
128,582
38,675
49,801
217,058
1,335
164
517
2,016
4.13
1.69
4.13
3.69
127,454
42,410
52,461
222,325
983
94
402
1,479
3.06
0.88
3.05
2.64
Interest-bearing
liabilities
Customer deposits
Other borrowings
Total
180,701
22,859
203,560
219
91
310
0.48
1.58
0.60
170,719
34,228
204,947
654
247
901
1.52
2.87
1.75
179,319
26,585
205,904
227
112
339
0.50
1.68
0.65
1,127
2.02
1,115
2.04
1,140
2.03
Net interest
income/margin 1/
Year 2009
Average balance
sheet
Average
balance
($m)
Year 2008
Average Average
Interest
rate balance
($m)
(%)
($m)
Interest
($m)
Average
rate
(%)
Interest-bearing
assets
Customer loans
Interbank assets
Securities
Total
127,832
41,782
51,031
220,645
4,075
378
1,661
6,114
3.20
0.91
3.26
2.78
118,614
39,818
52,028
210,460
5,051
926
2,145
8,122
4.25
2.32
4.11
3.86
Interest-bearing
liabilities
Customer deposits
Other borrowings
Total
178,064
26,272
204,336
1,131
528
1,659
0.64
2.02
0.81
161,379
38,486
199,865
2,395
1,426
3,821
1.48
3.70
1.91
4,455
2.02
4,301
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 was stable from a year ago and the
previous quarter at $1.13 billion with both interest margins
and average interest assets little changed.
For the full year, net interest income rose 4% to $4.46
billion due to higher loan and deposit volumes. Interest
margins were little changed as both asset yields and
liability costs fell in a soft interest rate environment.
Interest margins were maintained at 2.02% as asset yields
and liability costs were generally stable from the previous
quarter.
5
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
4th Qtr 2009 versus 4th Qtr 2008
Volume and rate analysis ($m)
Increase/(decrease) due to change in
4th Qtr 2009 versus 3rd Qtr 2009
Volume
Rate
Net
change
Volume
Rate
Net
change
Customer loans
Interbank assets
Securities
(4)
13
19
(363)
(95)
(149)
(367)
(82)
(130)
5
(1)
(20)
(11)
(15)
(12)
Total
28
(607)
(579)
(6)
(2)
(9)
(40)
(15)
(42)
38
(76)
(38)
(473)
(80)
(553)
(435)
(156)
(591)
2
(10)
(8)
(10)
(11)
(21)
(8)
(21)
(29)
66
(54)
12
6
(19)
(13)
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
(13)
Year 2009 versus Year 2008
Volume and rate analysis ($m)
Increase/(decrease) due to change in
Volume
Rate
Net
change
392
46
(41)
397
(1,357)
(593)
(438)
(2,388)
(965)
(547)
(479)
(1,991)
248
(462)
(214)
(1,510)
(434)
(1,944)
(1,262)
(896)
(2,158)
611
(444)
167
Interest income
Customer loans
Interbank assets
Securities
Total
Interest expense
Customer deposits
Other borrowings
Total
Net impact on interest income
Due to change in number of days
(13)
Net Interest Income
154
6
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET FEE AND COMMISSION INCOME
($m)
Stockbroking
Investment banking
Trade and remittances
Loan related
Guarantees
Deposit related
Credit card
Fund management
Wealth management
Others
Total
4th Qtr
2009
4th Qtr
2008
% chg
3rd Qtr
2009
% chg
Year
2009
Year
2008
% chg
41
59
55
85
14
21
36
4
30
13
358
32
16
56
50
11
21
36
5
17
19
263
28
>100
(2)
70
27
(20)
76
(32)
36
51
43
56
86
14
21
37
5
34
14
361
(20)
37
(2)
(1)
(3)
(20)
(12)
(7)
(1)
170
146
244
375
57
84
143
20
101
54
1,394
152
90
225
299
49
81
143
32
137
66
1,274
12
62
8
25
16
4
(38)
(26)
(18)
9
Net fee and commission income of $358 million was
similar to the previous quarter as stronger investment
banking revenues from IPO underwriting offset declines in
other fee activities. The performance was better than a
year ago from improvements in a wide range of activities.
For the full year, net fee and commission income rose 9%
with investment banking and loan syndication registering
the strongest improvements.
OTHER NON-INTEREST INCOME
($m)
Net trading income/(loss)
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)
Total
4th Qtr
2009
4th Qtr
2008
%
chg
3rd Qtr
2009
%
chg
Year
2009
Year
2008
%
chg
179
144
24
83
>100
700
(187)
NM
(124)
(169)
27
(27)
(>100)
(267)
210
NM
3
13
16
104
14
(97)
NM
14
7
13
(57)
NM
23
254
13
54
367
5
61
(31)
>100
(11)
87
93
(6)
76
14
754
456
65
Notes:
1/ Exclude one-time items
NM Not Meaningful
Net trading income of $55 million was maintained at the
previous quarter’s level. The contributions were led by
interest rate and foreign exchange activities and were
supported by customer flows. The performance was an
improvement from a year ago, which had been affected
by losses in credit activities.
For the full year, net trading income improved to $433
million from $23 million as trading conditions improved.
The better trading performance contributed to a 65%
rise in total other non-interest income to $754 million
despite lower gains from the sale of financial
investments.
7
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
EXPENSES
($m)
4th Qtr
2009
4th Qtr
2008
% chg
3rd Qtr
2009
% chg
Year
2009
Year
2008
% chg
Staff 1/
Occupancy
Computerisation
Revenue-related
Others
Total
Staff headcount at period-end
313
56
143
39
149
700
14,033
346
68
126
35
114
689
14,312
(10)
(18)
13
11
31
2
(2)
322
71
114
27
101
635
13,868
(3)
(21)
25
44
48
10
1
1,292
265
473
132
442
2,604
14,033
1,256
253
452
147
502
2,610
14,312
3
5
5
(10)
(12)
(2)
48
1
36
1
33
-
64
1
(25)
-
195
3
149
3
31
-
1
2
(50)
1
-
5
5
-
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 of $700 million were higher than the previous
quarter and a year ago. This was due to increased
accruals for technology projects and higher seasonal
advertising and promotional activities. Staff and
occupancy costs were below both comparative periods.
For the full year, expenses were stable as DBS held a
tight rein on expenses in the face of a challenging
environment. Headcount was reduced by 2% while
non-staff expenses fell by 3%.
8
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
ALLOWANCES FOR CREDIT AND OTHER LOSSES
($m)
4th Qtr
2009
4th Qtr
2008
% chg
3rd Qtr
2009
% chg
Year
2009
Year
2008
% chg
(225)
46
NM
14
NM
154
234
(34)
Specific allowances (SP) for loans
Singapore
Hong Kong
Other countries
387
261
12
114
224
67
111
46
73
>100
(89)
>100
229
201
14
14
69
30
(14)
>100
1,113
703
185
225
419
130
221
68
>100
>100
(16)
>100
Specific allowances (SP) for
securities, properties and other
assets 1/
222
(1)
NM
22
>100
262
131
100
Total
384
269
43
265
45
1,529
784
95
General allowances (GP)
Notes:
1/ Exclude one-time items
Specific allowances for loans of $387 million were made
for new and existing NPLs mainly for use in Rest of the
World. The amounts shown in the table above are by
booking centre.
Most non-ABS CDO investments were disposed of
during the quarter and the allowances that had been
set aside for the portfolio were more than sufficient to
offset the loss on sale of the portfolio.
General allowances of $23 million were taken for loan
growth during the quarter.
For the full year, total allowances doubled to $1.53 billion
due largely to higher specific allowances for several
corporate NPLs in Rest of the World.
9
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY BUSINESS SEGMENTS
($m)
CBG
IBG
GFM
CTU
Central
Ops
Total
Selected income items
4th Qtr 2009
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
236
136
372
349
9
14
14
498
250
748
224
390
134
(7)
141
249
33
282
100
(3)
2
187
37
150
173
(45)
128
(41)
169
27
142
(29)
71
42
27
29
4
(10)
(104)
46
1,127
445
1,572
700
384
6
494
(47)
493
3rd Qtr 2009
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
226
142
368
260
24
84
12
72
507
245
752
188
176
388
66
322
278
94
372
106
5
1
262
56
206
172
(81)
91
8
83
16
67
(43)
37
(6)
73
60
26
(113)
(37)
(104)
1,140
437
1,577
635
265
27
704
113
563
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
855
515
1,370
1,100
74
196
27
169
1,950
1,069
3,019
791
986
1,242
210
1,032
1,127
355
1,482
441
15
7
1,033
217
816
691
(117)
574
33
8
533
89
444
(168)
326
158
239
446
59
(468)
(258)
(397)
4,455
2,148
6,603
2,604
1,529
66
2,536
285
2,064
1/
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
1/
Year 2009
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
10
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
Year 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
Selected balance sheet and other
items 2/
31 Dec 2009
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 4th Qtr 2009
Depreciation for 4th Qtr 2009
Goodwill charge for 4th Qtr 2009
30 Sept 2009
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 3rd Qtr 2009
Depreciation for 3rd Qtr 2009
Goodwill charge for 3rd Qtr 2009
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
CBG
IBG
GFM
CTU
Central
Ops
Total
1,130
611
1,741
1,142
42
557
93
464
1,707
974
2,681
758
427
1,496
289
1,207
1,190
(159)
1,031
483
64
3
487
140
347
648
44
692
30
223
439
76
363
(374)
260
(114)
197
28
72
(267)
(152)
(325)
4,301
1,730
6,031
2,610
784
75
2,712
446
2,056
40,005
101,665
83,587
27,142
398
102,562
14
13
68,232
4
4
36,717
4
3
1,065
-
20,569
37
28
252,797
5,847
258,644
229,145
59
48
-
38,985
99,242
86,354
27,222
1,820
101,717
6
11
66,660
6
5
41,386
2
3
751
-
19,614
36
45
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
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
11
253,623
5,847
259,470
230,128
50
64
-
250,871
5,847
256,718
232,715
54
36
-
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
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. During the quarter, no one
group of related customers generated more than 10% of
the Group’s revenues.
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, investment and insurance
products.
Compared to the previous quarter, net interest income
rose due to housing loan growth. Non-interest income
declined as there had been performance-related fees in
the previous quarter. Expenses were higher due to
technology cost accruals and year-end expenses.
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.
Compared to the previous quarter, revenues were little
changed as lower net interest income was offset by higher
non-interest income. Expenses were higher due to
technology accruals while allowances rose as charges
were taken for new and existing NPLs 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 securities custodian services and
distribution of primary and secondary issues.
GFM’s revenues were lower than the previous quarter due
to typically thin year-end market trading activities.
Expenses were stable.
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.
12
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
Selected income items
4th Qtr 2009
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
704
250
954
410
209
3
338
(45)
335
216
126
342
154
37
151
23
128
75
13
88
81
35
6
(22)
(9)
(13)
79
26
105
46
15
(3)
41
6
35
53
30
83
9
88
(14)
(22)
8
1,127
445
1,572
700
384
6
494
(47)
493
3rd Qtr 2009
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
706
228
934
367
227
6
346
50
268
226
105
331
145
14
172
29
143
73
28
101
66
14
5
26
5
21
84
36
120
44
10
16
82
12
70
51
40
91
13
78
17
61
1,140
437
1,577
635
265
27
704
113
563
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
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
Year 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
2,738
1,253
3,991
1,512
1,034
16
1,461
88
1,186
888
478
1,366
600
210
556
92
464
302
107
409
270
74
17
82
14
68
326
175
501
172
69
33
293
67
226
201
135
336
50
142
144
24
120
4,455
2,148
6,603
2,604
1,529
66
2,536
285
2,064
13
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
S’pore
Hong
Kong
Rest of
Greater
China
South
and
Southeast Asia
Rest of
world
Total
2,869
803
3,672
1,467
423
21
1,803
249
1,344
873
538
1,411
723
233
455
65
390
264
115
379
203
72
14
118
14
104
164
195
359
154
35
40
210
58
152
131
79
210
63
21
126
60
66
4,301
1,730
6,031
2,610
784
75
2,712
446
2,056
Selected balance sheet items 2/
31 Dec 2009
Total assets before goodwill
Goodwill on consolidation
Total assets
Non-current assets 3/
165,652
198
165,850
1,485
47,653
5,649
53,302
530
14,362
14,362
142
12,743
12,743
46
12,387
12,387
1
252,797
5,847
258,644
2,204
30 Sept 2009
Total assets before goodwill
Goodwill on consolidation
Total assets
3/
Non-current assets
165,741
198
165,939
1,457
47,342
5,649
52,991
555
15,023
15,023
147
12,676
12,676
49
12,841
12,841
1
253,623
5,847
259,470
2,209
31 Dec 2008
Total assets before goodwill
Goodwill on consolidation
Total assets
3/
Non-current assets
170,132
198
170,330
1,457
44,119
5,649
49,768
570
16,563
16,563
141
9,889
9,889
38
10,168
10,168
2
250,871
5,847
256,718
2,208
Year 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
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
14
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
The performance by geography is classified based on the
location in which income and assets are recorded.
Singapore
Net profit rose to $335 million from $268 million in the
previous quarter as higher expenses were more than
offset by a tax write-back.
Net interest income was stable from the previous quarter.
Loans were little changed as an increase in housing loans
was offset by a decline in corporate loans. Non-interest
income rose 10%, helped by better trading income.
Expenses were 12% higher from the previous quarter due
to technology and seasonal expenses. Allowances fell 8%
as an increase in specific loan allowances was more than
offset by a net write-back in general allowances arising
from the disposal of CDO investments. There was a net
tax write-back of $45 million.
Hong Kong
The fourth quarter’s results incorporate an appreciation of
the Singapore dollar against the Hong Kong dollar of 3%
from the previous quarter and 6% from a year ago.
Net profit declined to $128 million from $143 million in the
previous quarter, largely due to higher general allowances.
Earnings before allowances were stable as an increase in
non-interest income was offset by higher expenses.
Net interest income declined 4% from the previous quarter
due to lower credit spreads. Loans rose 6% in local
currency terms during the quarter as housing loans and
corporate loans grew.
Non-interest income rose 20% from the previous quarter,
boosted by a range of fee activities, including unit trust
sales which rose 33%. Sales for forex and interest rate
treasury products also increased from higher corporate
demand.
Expenses were 6% higher due to seasonal factors. The
increase in allowances to $37 million was due to general
allowances in line with the strong loan growth. Specific
allowances were little changed from the previous quarter.
15
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CUSTOMER LOANS 1/
($m)
31 Dec 2009
30 Sept 2009
31 Dec 2008
133,420
130,863
128,365
General allowances
Net total
1,512
1,325
130,583
1,214
1,341
128,308
868
1,016
126,481
By business unit
Consumer Banking
Institutional Banking
Others
Total (Gross)
39,365
87,530
6,525
133,420
36,795
87,532
6,536
130,863
34,758
87,415
6,192
128,365
By geography
Singapore
Hong Kong
Rest of Greater China
South and South-east Asia
Rest of the world
Total (Gross)
75,117
33,431
10,252
8,058
6,562
133,420
74,807
31,828
9,510
8,399
6,319
130,863
74,377
32,085
9,683
5,557
6,663
128,365
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)
16,239
18,433
33,120
13,335
12,277
16,710
10,873
12,433
133,420
16,242
17,722
30,956
12,245
13,026
16,939
10,559
13,174
130,863
15,958
17,931
29,375
13,075
12,457
14,490
10,478
14,601
128,365
56,712
22,489
34,223
30,274
621
29,653
29,449
2,500
26,949
16,985
2,940
14,045
133,420
56,556
20,182
36,374
29,042
602
28,440
27,773
2,078
25,695
17,492
3,032
14,460
130,863
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
Gross
Less:
Specific allowances
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
Customer loans rose 2% from the previous quarter to $133.4
billion, led by housing loans in Singapore and Hong Kong.
Corporate loans were little changed during the quarter.
Loans in Hong Kong rose 6% in local currency terms
from the previous quarter as housing and corporate
loans were higher.
16
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NON-PERFORMING ASSETS AND LOSS ALLOWANCE COVERAGE 1/
By business unit
NPA
($m)
SP
($m)
GP
($m)
NPL
(% of loans)
(GP+SP)/NPA
(%)
(GP+SP)/
unsecured
NPA
(%)
294
67
393
0.7
157
328
3,114
1,271
863
3.6
69
88
468
267
69
7.2
72
89
3,876
1,605
1,325
2.9
76
100
160
106
92
-
124
164
183
97
255
-
192
209
4,219
1,808
1,672
-
83
108
335
78
359
0.9
131
287
2,532
928
867
2.9
71
102
552
282
115
8.5
72
95
3,419
1,288
1,341
2.6
77
113
208
131
342
-
227
282
196
102
218
-
163
177
3,823
1,521
1,901
-
90
128
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 Dec 2009
Consumer Banking
Institutional Banking
Others
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
30 Sept 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)
Note:
1/ Allowances for credit and other losses exclude one-time items
17
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By geography
31 Dec 2009
Singapore
Hong Kong
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
30 Sept 2009
Singapore
Hong Kong
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
31 Dec 2008
Singapore
Hong Kong
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
NPA
($m)
SP
($m)
GP
($m)
NPL
(% of loans)
(GP+SP)/NPA
(%)
(GP+SP)/
unsecured
NPA
(%)
731
567
352
213
327
213
546
330
121
1.2
1.7
3.1
104
116
95
244
173
143
157
82
174
1.3
163
186
2,069
770
154
13.1
45
49
3,876
1,605
1,325
2.9
76
100
160
106
92
-
124
164
183
97
255
-
192
209
4,219
1,808
1,672
-
83
108
773
650
376
208
375
198
564
318
113
1.3
2.0
3.6
100
107
83
249
157
129
174
72
195
1.5
153
181
1,446
435
151
9.4
41
49
3,419
1,288
1,341
2.6
77
113
208
131
342
-
227
282
196
102
218
-
163
177
3,823
1,521
1,901
-
90
128
678
587
457
271
313
241
316
343
117
1.1
1.7
4.3
87
112
78
151
176
128
133
59
159
1.2
164
171
103
36
81
0.7
114
252
1,958
920
1,016
1.5
99
159
277
236
288
-
189
193
157
52
220
-
173
421
2,392
1,208
1,524
-
114
176
18
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By industry
($m)
31 Dec 2009
30 Sept 2009
31 Dec 2008
NPA
SP
NPA
SP
NPA
SP
735
89
188
472
386
22
30
238
694
93
234
480
349
24
41
177
720
96
193
381
351
30
43
187
264
97
246
39
24
6
Financial institutions, investment &
holding companies
1,738
621
1,200
369
145
66
Professionals & private individuals
(except housing loans)
234
113
265
138
223
129
Manufacturing
Building and construction
Housing loans
General commerce
Transportation, storage &
communications
Others
156
98
207
151
176
108
3,876
160
1,605
106
3,419
208
1,288
131
1,958
277
920
236
Contingent liabilities & others
183
97
196
102
157
52
Total non-performing assets
4,219
1,808
3,823
1,521
2,392
1,208
By loan classification
($m)
31 Dec 2009
Total non-performing loans
Debt securities
Non-performing assets
Substandard
Doubtful
Loss
Total
Restructured assets
Substandard
Doubtful
Loss
Total
30 Sept 2009
31 Dec 2008
NPA
SP
NPA
SP
NPA
SP
2,155
1,431
633
4,219
195
977
636
1,808
2,476
830
517
3,823
356
648
517
1,521
1,328
800
264
2,392
213
730
265
1,208
389
90
54
533
51
73
54
178
440
68
44
552
62
54
44
160
213
57
49
319
46
49
46
141
By collateral type
($m)
31 Dec 2009
30 Sept 2009
31 Dec 2008
NPA
NPA
NPA
3,233
2,683
1,554
Secured non-performing assets by collateral type
Properties
540
629
556
Shares and debentures
Fixed deposits
Others
124
22
300
149
13
349
43
16
223
4,219
3,823
2,392
Unsecured non-performing assets
Total
19
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By period overdue
($m)
31 Dec 2009
30 Sept 2009
31 Dec 2008
NPA
NPA
NPA
Not overdue
180 days overdue
1,802
358
113
1,946
1,313
648
655
1,207
857
463
326
746
Total
4,219
3,823
2,392
Non-performing loans rose 13% from the previous quarter
to $3.88 billion or 2.9% of the loan portfolio. The increase
was largely accounted for by corporate NPLs in Rest of
the World. NPLs in other markets declined from the
previous quarter.
Forty-three percent of non-performing assets were still
current in interest principal, compared to 34% in the
previous quarter.
Allowance coverage was 83% of non-performing assets
and was 108% if collateral was considered.
FUNDING SOURCES
($m)
Customer deposits 1/
Interbank liabilities 2/
Other borrowings and liabilities 2/
Shareholders’ funds
Total
31 Dec 2009
30 Sept 2009
31 Dec 2008
183,432
9,320
40,519
25,373
258,644
180,185
9,138
44,973
25,174
259,470
169,858
9,571
57,470
19,819
256,718
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
20
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
Total
Fixed deposits
Savings accounts
Current accounts
Others
31 Dec 2009
30 Sept 2009
31 Dec 2008
103,842
20,617
69,160
12,697
1,368
23,625
12,285
7,932
3,254
154
29,018
14,912
3,468
8,846
1,792
26,947
20,441
2,191
2,908
1,407
183,432
68,255
82,751
27,705
4,721
99,475
18,358
67,186
12,794
1,137
25,047
13,084
8,001
3,609
353
30,523
17,371
3,484
8,231
1,437
25,140
19,438
1,882
2,369
1,451
180,185
68,251
80,553
27,003
4,378
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
Note:
1/ Includes customer deposits classified as financial liabilities at fair value through profit or loss on the balance sheet
Customer deposits rose 2% from the previous quarter to
$183.4 billion due to Singapore-dollar deposit growth.
The overall deposit mix improved further during the
quarter as the proportion of savings and current
accounts increased.
OTHER BORROWINGS & LIABILITIES
($m)
Subordinated term debts1/
Other debt securities in issue
Due within 1 year
Due after 1 year
Comprising:
2/
Secured
Unsecured
Others
Total
31 Dec 2009
30 Sept 2009
31 Dec 2008
7,702
7,790
9,085
44
369
102
506
263
375
75
338
32,404
40,519
108
500
36,575
44,973
333
305
47,747
57,470
Notes:
1/ All subordinated term debts issued are unsecured
2/ These are mainly secured by properties and securities
21
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 January 2009 to 31 December 2009. The
Group’s trading book VaR methodology is based on Historical Simulation VaR.
($m)
1 January 2009 to 31 December 2009
Average
High
Low
As at 31 December 2009
Total
22
33
52
21
The charts below provide the range of VaR and the daily distribution of trading income in the trading portfolio for the
period from 1 January 2009 to 31 December 2009.
D BSH Gr ou p Va R for Tra din g Book
20
18
No. of Days
16
14
12
10
8
6
4
2
> 46- 47
> 45- 46
> 44- 45
> 43- 44
> 42- 43
> 41- 42
> 40- 41
> 39- 40
> 38- 39
> 37- 38
> 36- 37
> 35- 36
> 34- 35
> 33- 34
> 32- 33
> 31- 32
> 30- 31
> 29- 30
> 28- 29
> 27- 28
> 26- 27
> 25- 26
> 24- 25
> 23- 24
> 22- 23
> 21- 22
> 20- 21
> 19- 20
0
VaR ( S$ m illion)
Note:
With effect from 1 Jun 2009, the number of historical scenarios used for the VaR calculation was revised from 500 days to 250 days
Daily Distribution of Group Trading Income
(1 Jan 2009 to 31 Dec 2009)
35
30
20
15
10
5
Trading income (S$ million)
22
>48-50
>44-46
>40-42
>36-38
>32-34
>28-30
>24-26
>20-22
>16-18
>12-14
>8-10
>4-6
>0-2
>(4)-(2)
>(8)-(6)
>(12)-(10)
>(16)-(14)
>(20)-(18)
>(24)-(22)
>(28)-(26)
>(32)-(30)
>(36)-(34)
>(40)-(38)
0
>(44)-(42)
No. of days
25
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CAPITAL ADEQUACY
($m)
Tier 1
Share capital
Disclosed reserves and others
Less: Tier 1 Deductions
Eligible Tier 1
Tier 2
Loan allowances admitted as Tier 2
Subordinated debts
Revaluation surplus from equity securities
Less: Tier 2 Deductions
Total eligible capital
Risk-weighted assets
Capital adequacy ratio (%)
Tier 1 ratio
Tier 2 ratio
Total (Tier 1 & 2) ratio
31 Dec 2009
30 Sept 2009
31 Dec 2008
8,435
20,928
(6,098)
23,265
8,432
20,761
(6,053)
23,140
4,215
20,180
(6,022)
18,373
434
5,970
87
(128)
29,628
177,222
623
6,025
65
(124)
29,729
185,222
656
6,571
27
(106)
25,521
182,685
13.1
3.6
16.7
12.5
3.6
16.1
10.1
3.9
14.0
The Group’s capital adequacy ratio increased from 16.1% in the previous quarter to 16.7% due primarily to a decline in riskweighted assets.
UNREALISED VALUATION SURPLUS/(LOSSES)
($m)
Properties
Financial investments
Total
31 Dec 2009
30 Sept 2009
31 Dec 2008
511
106
617
561
85
646
532
(246)
286
The amount of unrealised valuation surplus decreased from $646 million in the previous quarter to $617 million mainly due to
lower property valuation.
23
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Audited Consolidated Income Statement
In $ millions
4th Qtr 4th Qtr
20091/ 20081/
+/(-) 3rd Qtr
% 20091/
+/(-)
%
Year
2009
Year
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
1,437
310
1,127
358
179
(124)
3
29
2,016
901
1,115
263
144
(169)
104
18
(29)
(66)
1
36
24
27
(97)
61
1,479
339
1,140
361
83
(27)
7
13
(3)
(9)
(1)
(1)
>100
(>100)
(57)
>100
6,114
1,659
4,455
1,394
700
(267)
254
67
8,122
3,821
4,301
1,274
(187)
210
367
88
(25)
(57)
4
9
NM
NM
(31)
(24)
Total income
1,572
1,475
7
1,577
-
6,603
6,053
9
313
48
339
384
391
36
307
316
(20)
33
10
22
322
64
249
265
(3)
(25)
36
45
1,292
195
1,117
1,552
1,301
149
1,205
888
(1)
31
(7)
75
1,084
1,050
3
900
20
4,156
3,543
17
Profit
Share of profits of associates
Profit before tax
488
6
494
425
10
435
15
(40)
14
677
27
704
(28)
(78)
(30)
2,447
66
2,513
2,510
75
2,585
(3)
(12)
(3)
Income tax expense
Net profit
(47)
541
77
358
NM
51
113
591
NM
(8)
285
2,228
446
2,139
(36)
4
493
48
541
295
63
358
67
(24)
51
563
28
591
(12)
71
(8)
2,041
187
2,228
1,929
210
2,139
6
(11)
4
+/(-) 3rd Qtr
%
2009
+/(-)
%
Year
2008
+/(-)
%
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
Note:
1/ Unaudited
Audited Consolidated Statement of Comprehensive Income
In $ millions
Net profit
4th Qtr 4th Qtr
2009
2008
Year
2009
541
358
51
591
(8)
2,228
2,139
4
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
(4)
2
(47)
(16)
91
NM
(18)
1
78
100
31
18
(58)
(40)
NM
NM
32
(31)
(15)
(16)
(225)
5
(95)
83
(295)
NM
NM
67
NM
95
540
(29)
(55)
439
(94)
(7)
73
NM
932
(312)
(100)
569
(1,217)
21
(349)
256
(1,387)
NM
NM
11
NM
NM
Total comprehensive income
525
63
>100
1,030
(49)
2,797
752
>100
490
35
525
(10)
73
63
NM
(52)
>100
1,029
1
1,030
(52)
>100
(49)
2,616
181
2,797
549
203
752
>100
(11)
>100
Attributable to:
Shareholders
Minority interests
24
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Audited Balance Sheets
31 Dec
2009
GROUP
30 Sept
2009 1/
31 Dec
2008
31 Dec
2009
COMPANY
30 Sep
2009 1/
31 Dec
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 fair 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
22,515
15,960
22,203
11,257
16,015
129,973
25,731
784
672
5,847
1,134
398
144
6,011
12,703
15,072
31,524
12,283
17,761
127,703
25,884
876
653
5,847
1,179
377
129
7,479
15,790
14,797
20,467
9,401
32,328
125,841
22,782
997
604
5,847
1,311
293
171
6,089
9,698
9,993
6,745
93
98
154
TOTAL ASSETS
258,644
259,470
256,718
9,791
10,091
6,899
Due to banks
Due to non-bank customers
Financial liabilities at fair value through profit or loss 3/
Negative fair values for financial derivatives
Bills payable
Current tax liabilities
Deferred tax liabilities
Other liabilities
Other debt securities in issue
Subordinated term debts
9,108
178,448
9,217
16,406
501
807
54
6,489
413
7,702
8,665
174,683
10,917
18,118
774
912
56
7,605
608
7,790
9,021
163,359
11,282
31,918
714
779
45
5,874
638
9,085
5
4
5
TOTAL LIABILITIES
229,145
230,128
232,715
5
4
5
29,499
29,342
24,003
9,786
10,087
6,894
Share capital
Treasury shares
Other reserves
Revenue reserves
8,435
(114)
6,879
10,173
8,433
(120)
6,863
9,998
4,215
(154)
6,322
9,436
8,435
71
1,280
8,433
52
1,602
4,215
89
2,590
SHAREHOLDERS’ FUNDS
25,373
25,174
19,819
9,786
10,087
6,894
Minority interests
4,126
4,168
4,184
TOTAL EQUITY
29,499
29,342
24,003
9,786
10,087
6,894
98,207
1,396,855
9