1Q05 presentation slides

Growth in core businesses

offsets weaker non-interest income

April 29, 2005

DBS Group Holdings

1Q 2005 Financial Results

First quarter net profit at $ 412 million

($ million) 1Q 1Q YoY % 4Q QoQ %

2005 2004 change 2004 change

‰ Net profit excluding 412 592 (30%) 426 (3%) goodwill amortization

‰ Net profit on GAAP 412 482 (15%) 316 30%

basis*

* FRS 103 accounting change for goodwill amortization not retroactively applied to 2004 reported results

Nine consecutive quarters of loan growth; net interest income highest in ten quarters

‰ Customer loans* $ 71 billion 22%

$ 13 billion

Sustained growth in customer franchise across the region

Net profit

‰ Consumer, SME $ 233 million 18%

Ö Consumer $ 150 million 25%

Ö SME $ 83 million 6%

Consumer, SME combined accounted for 57% of DBS’ total net profit for the quarter

Strong asset quality, balance sheet supports DBS’ growth

‰ Asset quality one of the best among Asian banks

Ö NPL rate of 2.4%

Ö Provision coverage of 90%

‰ Strong balance sheet

Ö Moody’s Aa2 credit rating among highest of banks competing in Asia-Pacific

Ö Tier 1 ratio: 10.9%

Delivering sustainable and progressively increasing dividends

‰ Instituted quarterly dividend programme

‰ More balanced and diversified business mix

‰ Strengthened customer franchise

‰ Up-to-date risk management practices, technology and operations platform

‰ Continue to extend business model to new geographies, grow our share in existing markets

Well-positioned to achieve further growth, deliver higher returns to shareholders

Operating profits improve 16% on quarter from revenue growth and lower expenses

% change 4Q

2004 1Q

2005 20041Q change%

664 408 1,072 265 244 509 563 62 412 -412 634 636 1,270 257 257 514 756 50 592 110 482 636 391 1,027 259 282 541 486 (31) 426 110 316 5 (36) (16) 3 (5) (1) (26) 24 (30) (100) (15) 4 4 4 2 (13) (6) 16 nm (3) (100) 30 (S$m)

Net interest income Non-interest income Operating income

Staff costs

Other operating expenses

Operating expenses Operating profit

Provisions/(write-backs) Net profit before goodwill Goodwill amortisation Net profit

Key ratios generally unchanged on quarter 1Q

2005 20044Q 20041Q

(%)

Net interest margin 1.76 1.75 1.79

Non-interest income/total income 38 38 50

Cost/income 47 53 40

ROE 9.9 10.5 15.8

Loans/deposits 61 62 58

Loan + non-trading debt securities/

deposits 81 82 78

Net interest income highest in ten quarters, margins steady

(S$m)

634 645 664

2,566 2,375

2,645

651 636

1.76 1.75

1.83 1.79

1.79 1.79

1.78 1.99

2002 2003 2004 1Q 2Q 3Q 4Q 1Q

Net interest margin (%)

Loans expand 14% on year to record

(S$m) DTDB loans

2,915

3,275

71,060

69,664

61,420 62,429

65,053

67,221

2,915

Dec 2003 Mar 2004 Jun 2004 Sep 2004 Dec 2004 Mar 2005

2%

4%

3% 4%

Fee income from annuity businesses remains steady 548 852 747 342

121 164 120 142

244 60

87

105

13

44 31 ₁₇ 13

1,031

281

252 _{254 253} 901

814

636

409 447 ₃₉₁ 408

48 44 50 58 41 38 38 36 35 42 39 0 300 600 900 1200 1500 1800

2002 2003 2004 1Q 2Q 3Q 4Q 1Q

Dividend & rental Other income Fee income (S$m)

Non-interest income / total income (%)

b 1,422 1,840 b 1,883 a 2004 b a b 2005

1,578

2,905

374 691 834 868

1,685

1,006 ₃₄ 327 41 41

27 429

200 1,526 ₉₆₄ 1,157

1,732 5,908

7,227

2003 2004 1Q 2Q 3Q 4Q 1Q

2,766

2,093 2,545 _1,838

Structured deposits Unit trusts

Bancassurance

(S$m)

16% on quarter

9,242 9,006

Wealth management sales improve, revenues rise

2004 ₂₀₀₅

2,065

Sales (all products)

S’pore 4,162 3,874 1,244 918 1,028 684 963

HK 4,844 5,368 1,522 1,175 1,517 1,154 1,102

Revenues rebound on quarter, customer businesses resilient

Consumer Banking Enterprise Banking

Corporate and Investment Banking Global Financial Markets

Central Treasury Unit Central Operations Total (S$m) 414 182 174 170 46 86 1,072 384 182 176 409 108 11 1,270 30 0 (2) (239) (62) 75 (198) Change 4Q 2004 1Q

2005 20041Q Change

401 186 162 147 85 46 1,027 13 (4) 12 23 (39) 40 45

Operating costs kept under control

509 541

502 492

514 2,049

1,869 1,868

41

47 53

46 32

40 45

46 46

44

2002 2003 2004 1Q 2Q 3Q 4Q 1Q

Cost/Income (%)

b (S$m)

b

46a

2004 2005

Annualised cost /

average assets (%) 1.22 1.17 1.22 1.22 1.14 1.20 1.27 1.14

11,649

12,035 12,144 11,454 12,173 10,838 11,083 11,454

Headcount c

265

Hong Kong’s net profit 27% lower on year (S$m) % change 4Q 2004 1Q

2005 20041Q change%

Net interest income Non-interest income Operating income Operating expenses

Op profit before provisions Provisions Net profit 200 99 299 151 148 7 121 (9) (29) (16) 6 (31) (72) (27) 205 124 329 158 171 23 129 (2) (20) (9) (4) (13) (70) (6) 219 139 358 142 216 25 165

Key Hong Kong ratios continue to support group 1Q

2005 20044Q 20041Q

(%)

Net interest margin 1.92 1.96 2.31

Non-interest income/total income 33 38 39

Cost/income 51 48 40

ROA 1.06 1.11 1.56

Regional revenues continue to grow at faster pace

1Q 2004 1Q 2005

Revenues

Region and rest of world a

Hong Kong Singapore Total 60 365 808 1,233 YoY change (%) Amount (S$m) 85 298 689 1,072 42 (18) (15) (13) 32 168 376 576 13 124 275 412 (59) (26) (27) (40) Net profit b

Region and rest of world a

Hong Kong Singapore Total

NPL rate edges down to 2.4% 4.6 6.1 2.4 2.5 2.6 3.0 2.5 5.2 0 2500 5000 7500

Mar Jun Sep Dec Mar

Loss Doubtful Substandard

NPL rate (%)

4,224 74% 6% 20% 73% 5% 22% 3,780 (S$m) 3,359 75% 6% 19% 2,182 72% 9% 19% 1,934 70% 9% 21% 71% 9% 20% 1,919 2004 71% 9% 20% 1,919 2005 72% 9% 1,928 19% 2004 2003 2002

Non-performing loans stable as additions offset recoveries and write-offs

1Q 2004 4Q 2004

1Q 2005

NPLs at start of period 1,919 1,934 3,780

New NPLs 185 325 150

Net recoveries of existing NPLs (135) (261) (396)

Write-offs (41) (79) (175)

NPLs at end of period 1,928 1,919 3,359

Specific provision charges remain low

1Q 2004 4Q 2004

1Q 2005 Add charges for

New NPLs 51 74 52

Existing NPLs 33 41 61

85 115 113

Subtract charges for

Upgrading 2 2 5

Settlements 34 63 73

Recoveries 6 13 6

42 79 84

Total SP charges 43 36 29

Provision coverage improves to 90% (S$m)

1,511 _1,323

686 1,199 794 715 686 700

1,064

1,015

1,072

1,025 _{1,037 1,015 1,036}

989 1,819 1,752 _{1,701 1,736}

2,271 1,701

2,387

0 1000 2000 3000 4000 5000

Mar Jun Sep Dec Mar

GP SP

2,500

2004

2004 2005 2003

2002

Coverage ratios (%)

SP+GP / Unsec NPAs 121 124 186 132 156 183 186 202

Tier-1 CAR trimmed as RWA expands in 1Q

10.3 11.3 10.4 11.6 11.8 10.9

4.6 4.5 _4.1 4.0 3.6 4.5 4.4

10.5 11.3

5.2

15.5 15.1 15.8 14.5 15.6 15.4 15.8 15.3

0 4 8 12 16 20 24 28

Mar Jun Sep Dec Mar

Tier-1 CAR Tier-2 CAR

2004 2004

(%)

2003 2002

2005 (S$bn)

Quarterly dividend rate of 11 cents

14 14 18

16 16

22

11 0

10 20 30 40 50

2002 2003 2004 1Q 2005

(Cents) Interim

Final

30 30

40

Growth in core businesses

offsets weaker non-interest income

April 29, 2005

DBS Group Holdings

1Q 2005 Financial Results

Non-performing loans stable as additions offset

recoveries and write-offs

1Q 2004

4Q 2004

1Q 2005

NPLs at start of period

1,919

1,934

3,780

New NPLs

185

325

150

Net recoveries of existing NPLs

(135)

(261)

(396)

Write-offs

(41)

(79)

(175)

NPLs at end of period

1,928

1,919

3,359

Specific provision charges remain low

1Q 2004

4Q 2004

1Q 2005

Add charges for

New NPLs

51

74

52

Existing NPLs

33

41

61

85

115

113

Subtract charges for

Upgrading

2

2

5

Settlements 34

63

73

Recoveries

6

13

6

42

79

84

Total SP charges

43

36

29

Provision coverage improves to 90%

(S$m)

1,511 _1,323

686 1,199 794 715 686 700

1,064

1,015

1,072

1,025 _{1,037 1,015 1,036} 989 1,819 1,752 _{1,701 1,736}

2,271 1,701 2,387

0

1000

2000

3000

4000

5000

Mar Jun Sep Dec Mar

GP SP 2,500 2004 2004 2005 2003 2002

Coverage ratios (%)

SP+GP / Unsec NPAs 121 124 186 132 156 183 186 202 SP+GP / NPAs 59 63 89 68 83 91 89 90

Tier-1 CAR trimmed as RWA expands in 1Q

10.3 11.3 10.4 11.6 11.8 10.9

4.6 4.5 _4.1 4.0 3.6 4.5 4.4

10.5 11.3

5.2

15.5 15.1 15.8 14.5 15.6 15.4 15.8 15.3

0

4

8

12

16

20

24

28

Mar Jun Sep Dec Mar Tier-1 CAR Tier-2 CAR

2004 2004

(%)

2003 2002

2005 (S$bn)

Tier-1 capital 8.4 9.6 11.8 10.2 11.2 11.5 11.8 11.8 RWA 81.2 92.1 104.0 97.8 96.6 97.5 104.0 108.8

Quarterly dividend rate of 11 cents

14

14

18

16

16

22

11

0

10

20

30

40

50

2002

2003

2004

1Q 2005

(Cents)

Interim

Final

30

30

40

Growth in core businesses

offsets weaker non-interest income

April 29, 2005

DBS Group Holdings

1Q 2005 Financial Results

Presentation to Media and Analysts