financial performance 3q10
Performance Summary
Unaudited Financial Results
For the Third Quarter ended
30 September 2010
DBS Group Holdings Ltd
Incorporated in the Republic of Singapore
Company Registration Number: 199901152M
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Contents
Overview
Net Interest Income
Net Fee and Commission Income
Other Non-Interest Income
Expenses
Allowances for Credit and Other Losses
Performance by Business Segments
Performance by Geography
Customer Loans
Non-Performing Assets and Loss Allowance Coverage
Funding Sources
Customer Deposits
Other Borrowings & Liabilities
Value at Risk and Trading Income
Capital Adequacy
Unrealised Valuation Surplus/(Losses)
Unaudited Consolidated Income Statement
Unaudited Consolidated Statement of Comprehensive Income
Unaudited Balance Sheets
Unaudited Consolidated Statement of Changes in Equity
Unaudited Statement of Changes in Equity
Unaudited Consolidated Cash Flow Statement
Additional Information
Issuance of Ordinary Shares
Adoption of New or Revised FRS and INT FRS
Subsequent Event
Confirmation by the Board
Page
2
4
6
6
7
7
8
11
14
15
18
19
19
20
21
21
22
22
23
24
25
26
27
27
27
28
1
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
OVERVIEW
DBS Group Holdings Ltd (“DBSH”) prepares its condensed consolidated DBSH Group (“Group”) interim financial statements in
accordance with Singapore Financial Reporting Standard (“FRS”) No. 34 Interim Financial Reporting, as modified by the
requirements of Notice to Banks No. 612 “Credit Files, Grading and Provisioning” issued by the Monetary Authority of
Singapore. The accounting policies and methods of computation applied for the current financial periods are consistent with
those applied for the financial year ended 31 December 2009, with the exception of the adoption of new or revised FRS and
Interpretations to FRS (“INT FRS”).
On 1 January 2010, 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 27 Consolidated and Separate Financial Statements
•
FRS 103 Business Combinations
•
FRS 39 (Amendments) Financial Instruments: Recognition and Measurement
- Eligible Hedged Items
- Embedded Derivatives
•
FRS 102 (Amendments) Share-Based Payment – Group Cash-settled Share-based Payment Transactions
•
INT FRS 109 (Amendments): Reassessment of Embedded Derivatives
•
INT FRS 117: Distributions of Non-cash Assets to Owners
•
Improvements to FRSs
Refer to page 27 for more information.
3rd Qtr
2010
3rd Qtr
2009
%
chg
2nd Qtr
2010
%
chg
9 Mths
2010
9 Mths
2009
%
chg
1,079
340
390
1,809
726
1,083
195
919
722
-
1,140
361
76
1,577
635
942
265
704
563
-
(5)
(6)
>100
15
14
15
(26)
31
28
-
1,067
358
390
1,815
717
1,098
204
919
718
(1,018)
1
(5)
1
(1)
(4)
1
NM
3,212
1,039
1,086
5,337
2,145
3,192
754
2,516
1,972
(1,018)
3,328
1,036
667
5,031
1,904
3,127
1,145
2,042
1,571
-
(3)
63
6
13
2
(34)
23
26
NM
-
-
-
-
-
-
(23)
NM
722
563
28
(300)
NM
954
1,548
(38)
Selected balance sheet items ($m)
Customer loans 2/
Interbank assets 3/
Total assets
147,785
25,820
279,436
128,308
33,365
259,470
15
(23)
8
146,070
21,846
276,250
1
18
1
147,785
25,820
279,436
128,308
33,365
259,470
15
(23)
8
Customer deposits 4/
Total liabilities
Shareholders’ funds
185,211
248,969
26,424
180,185
230,128
25,174
3
8
5
183,929
246,522
25,616
1
1
3
185,211
248,969
26,424
180,185
230,128
25,174
3
8
5
1.80
40.4
40.1
1.04
11.06
79.8
2.1
2.03
27.7
40.3
0.86
9.08
71.2
2.6
1.84
41.2
39.5
1.07
11.08
79.4
2.3
1.86
39.8
40.2
0.98
10.18
79.8
2.1
2.02
33.9
37.8
0.81
8.65
71.2
2.6
33
70
19
49
75
13.1
16.3
12.5
16.1
13.1
16.5
13.1
16.3
12.5
16.1
Selected income statement items ($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
Goodwill charges
One-time items 1/
Net profit/(loss) including goodwill charges
and one-time items
Key financial ratios (%) (excluding
5/
goodwill charges and one-time items)
Net interest margin
Non-interest/total income
Cost/income ratio
Return on assets
6/
Return on equity
Loan/deposit ratio
NPL ratio
Specific allowances (loans)/average loans
(bp)
Tier 1 capital adequacy ratio
Total capital adequacy ratio
2
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
3rd Qtr
2010
3rd Qtr
2009
2nd Qtr
2010
9 Mths
2010
9 Mths
2009
1.25
0.98
1.25
1.14
0.93
1.25
11.18
0.98
10.76
0.80
10.88
0.69
11.18
0.92
10.76
1.20
0.95
1.20
1.10
0.90
1.20
10.97
0.95
10.57
0.78
10.68
0.67
10.97
0.89
10.57
Per share data ($)
Per basic share
– earnings excluding one-time items and
goodwill charges
– earnings
– net book value 6/ 7/
Per diluted share
– earnings excluding one-time items and
goodwill charges
– earnings
6/ 7/
– net book value
Notes:
1/ One-time items include an impairment charge for a Thai investment
2/ Includes customer loans classified as financial assets at fair value through profit or loss on the balance sheet
3/ Includes interbank assets classified as financial assets at fair value through profit or loss on the balance sheet
4/ Includes customer deposits classified as financial liabilities at fair value through profit or loss on the balance sheet
5/ Return on assets, return on equity, specific allowances (loan)/average loan and per share data for the quarters are computed on an annualised basis
6/ Minority interests are not included as equity in the computation of net book value and return on equity
7/ Takes into account 9.2 million shares to be issued on 13 Oct 2010 pursuant to the Scrip Dividend Scheme
NM Not Meaningful
Third-quarter net profit rose 28% from a year ago to a
record $722 million. The results were underpinned by
continued loan growth and sustained customer-driven
non-interest income flows.
Net interest income rose 1% from the previous quarter to
$1.08 billion as loan growth was offset by a decline in net
interest margins. Loans rose 1% from corporate borrowing
across the region and housing loans in Singapore. Net
interest margin fell four basis points to 1.80%.
Non-interest income fell 2% from the previous quarter to
$730 million. Net fee income fell due to lower loan-related
revenues, but most other fee activities were maintained.
Revenues from customer flows for treasury products
increased, but lower trading gains resulted in a decline in
overall trading income. Gains from the sale of investment
securities and fixed assets were higher.
Expenses of $726 million were 1% higher than the
previous quarter. The cost-income ratio was little changed
at 40%.
The non-performing loan rate improved from 2.3% in the
previous quarter to 2.1% as repayments and write-offs
exceeded new non-performing loans. General and
specific allowances of $195 million were set aside, and
the allowance coverage was at 97% and at 124% if
collateral was considered.
For the first nine months, net profit (before one-time
items) rose 26% to $1.97 billion from higher customer
flows in non-interest income and from lower allowances
as asset quality improved.
Return on equity was 11.1% for the third quarter, similar
to the previous quarter. For the nine months, it improved
from 8.7% a year ago to 10.2%. DBS remained well
capitalised with total capital adequacy ratio at 16.3%
with tier-1 at 13.1%.
3
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET INTEREST INCOME
Average balance
sheet
3rd Qtr 2010
Average
Average
balance Interest
rate
($m)
($m)
(%)
3rd Qtr 2009
Average
Average
balance Interest
rate
($m)
($m)
(%)
2nd Qtr 2010
Average
Average
balance Interest
rate
($m)
($m)
(%)
Interest-bearing
assets
Customer loans
Interbank assets
Securities
Total
145,902
40,880
51,010
237,792
1,009
97
351
1,457
2.74
0.95
2.73
2.43
127,454
42,410
52,461
222,325
983
94
402
1,479
3.06
0.88
3.05
2.64
138,617
43,195
51,138
232,950
984
82
343
1,409
2.85
0.76
2.69
2.43
Interest-bearing
liabilities
Customer deposits
Other borrowings
Total
184,815
33,766
218,581
269
109
378
0.58
1.28
0.69
179,319
26,585
205,904
227
112
339
0.50
1.68
0.65
182,951
31,270
214,221
241
101
342
0.53
1.30
0.64
1,079
1.80
1,140
2.03
1,067
1.84
Net interest
income/margin 1/
9 Mths 2010
Average balance
sheet
Average
balance
($m)
9 Mths 2009
Average Average
Interest
rate balance
($m)
(%)
($m)
Interest
($m)
Average
rate
(%)
Interest-bearing
assets
Customer loans
Interbank assets
Securities
Total
138,696
41,862
50,737
231,295
2,927
253
1,058
4,238
2.82
0.81
2.79
2.45
127,692
41,806
50,959
220,457
3,107
296
1,274
4,677
3.26
0.95
3.35
2.84
Interest-bearing
liabilities
Customer deposits
Other borrowings
Total
182,950
29,863
212,813
725
301
1,026
0.53
1.35
0.64
177,221
27,488
204,709
912
437
1,349
0.69
2.14
0.88
3,212
1.86
3,328
2.02
Net interest
1/
income/margin
Note:
1/ Net interest margin is net interest income expressed as a percentage of average interest-earning assets
Net interest income rose 1% from the previous quarter to
$1.08 billion.
The impact of the margin decline was offset by higher
customer loan volumes.
Net interest margins fell four basis points from the previous
quarter to 1.80%. Yields for new housing loans were lower
than those that had run off. In addition, deposit costs were
higher in Hong Kong.
Net interest income for the nine months was 3% below a
year ago as lower interest margins more than offset the
benefit of higher asset volumes.
4
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
3rd Qtr 2010 versus 3rd Qtr 2009
Volume and rate analysis ($m)
Increase/(decrease) due to change in
3rd Qtr 2010 versus 2nd Qtr 2010
Volume
Rate
Net
change
Volume
Rate
Net
change
Customer loans
Interbank assets
Securities
142
(3)
(11)
(116)
6
(40)
26
3
(51)
52
(4)
(40)
19
12
15
Total
128
(150)
(22)
(1)
47
5
(16)
4
31
7
11
18
35
(14)
21
42
(3)
39
2
6
8
22
1
23
24
7
31
110
(171)
(61)
39
(39)
-
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
(61)
12
9 Mths 2010 versus 9 Mths 2009
Volume and rate analysis ($m)
Increase/(decrease) due to change in
Volume
Rate
Net
change
268
(5)
263
(448)
(43)
(211)
(702)
(180)
(43)
(216)
(439)
29
4
33
(216)
(140)
(356)
(187)
(136)
(323)
230
(346)
(116)
Interest income
Customer loans
Interbank assets
Securities
Total
Interest expense
Customer deposits
Other borrowings
Total
Net impact on interest income
Due to change in number of days
Net Interest Income
(116)
5
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET FEE AND COMMISSION INCOME
($m)
Stockbroking
Investment banking
Trade and remittances
Loan related
Guarantees
Deposit related
Credit card
Fund management
Wealth management
Others
Total
3rd Qtr
2010
3rd Qtr
2009
% chg
2nd Qtr
2010
% chg
9 Mths
2010
9 Mths
2009
% chg
45
38
55
80
14
21
35
5
31
16
340
51
43
56
86
14
21
37
5
34
14
361
(12)
(12)
(2)
(7)
(5)
(9)
14
(6)
42
29
57
101
16
22
36
6
34
15
358
7
31
(4)
(21)
(13)
(5)
(3)
(17)
(9)
7
(5)
129
94
171
281
43
64
104
16
92
45
1,039
129
87
189
290
43
63
107
16
71
41
1,036
8
(10)
(3)
2
(3)
30
10
-
Net fee and commission income decreased by 5% from the
previous quarter to $340 million mainly due to decline in
loan related activities offset by improvements in
stockbroking and investment banking activities.
Net fee and commission income for the nine months was
unchanged with an improvement in wealth management
revenues offset by lower fees from trade and remittances
as margins fell. Loan-related fees were also lower.
OTHER NON-INTEREST INCOME
($m)
Net trading income
Net (loss)/income from financial
instruments designated at fair value
Net income on financial
investments
Net gain on fixed assets
Others (include rental income)
Total
3rd Qtr
2010
3rd Qtr
2009
% chg
2nd Qtr
2010
% chg
9 Mths
2010
9 Mths
2009
% chg
235
83
>100
266
(12)
761
521
46
(12)
(27)
56
12
NM
(30)
(143)
79
123
7
>100
98
26
271
251
8
34
10
13
NM
(23)
3
11
>100
(9)
51
33
38
NM
(13)
390
76
>100
390
-
1,086
667
63
Note:
NM Not Meaningful
Net trading income (including net income from financial
instruments designated at fair value) fell 20% from the
previous quarter to $223 million. Customer revenues
rose 10% from the previous quarter but the impact was
more than offset by a decline in trading gains and a
more prudent valuation reserve methodology. For the
nine months, net trading income rose 93% from higher
customer flows.
Net income from financial investments improved from
the previous quarter as market conditions were
conducive for taking profit on investments. It was also
higher for the nine months.
6
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
EXPENSES
($m)
3rd Qtr
2010
3rd Qtr
2009
Staff
Occupancy
Computerisation
Revenue-related
Others
Total
Staff headcount at period-end
360
67
145
33
121
726
15,206
322
71
114
27
101
635
13,868
12
(6)
27
22
20
14
10
43
1
64
1
2
2
Included in the above table were:
Depreciation of properties and other fixed
assets
Directors’ fees
Audit fees payable
Expenses rose 1% from the previous quarter to $726
million. The increase was due to higher computerisation
expenses. The cost-income ratio was unchanged at 40%.
% chg 2nd Qtr
2010
% chg
9 Mths
2010
9 Mths
2009
% chg
362
65
131
35
124
717
14,615
(1)
3
11
(6)
(2)
1
4
1,060
202
405
99
379
2,145
15,206
979
209
330
93
293
1,904
13,868
8
(3)
23
6
29
13
10
(33)
-
46
1
(7)
-
137
2
147
2
(7)
-
-
2
-
6
6
-
For the nine months, costs rose 13% on higher
headcount and other costs to support higher business
volumes and investments for future growth.
ALLOWANCES FOR CREDIT AND OTHER LOSSES
($m)
3rd Qtr
2010
3rd Qtr
2009
39
14
>100
125
(1)
8
17
15
86
229
37
13
7
1
171
31
195
General allowances (GP)
1/
Specific allowances (SP) for loans
Singapore
Hong Kong
Rest of Greater China
South and South-east Asia
Rest of the world
Specific allowances (SP) for securities,
properties and other assets 2/
Total
% chg 2nd Qtr
2010
% chg
9 Mths
2010
9 Mths % chg
2009
124
(69)
188
379
(50)
(45)
NM
(38)
>100
>100
(50)
68
1
(4)
13
6
52
84
NM
NM
31
>100
65
517
10
11
27
27
442
726
141
170
32
19
364
(29)
(93)
(94)
(16)
42
21
22
41
12
>100
49
40
23
265
(26)
204
(4)
754
1,145
(34)
Notes:
1/ Specific allowances for loans are classified according to where the borrower is incorporated. Historical comparatives have been restated to conform to the current year presentation
2/ Exclude one-time items
Specific allowances for loans rose moderately to $125
million (33 basis points of loans) from $68 million (19
basis points) in the previous quarter. General
allowances fell to $39 million from $124 million in line
with lower loan growth.
For the nine months, total allowances fell 34% as
specific allowances declined in line with improvements
in asset quality. General allowances were also lower.
7
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY BUSINESS SEGMENTS
1/
($m)
Consumer/
Private
Banking
Selected income items
3rd Qtr 2010
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
Institutional
Banking
Treasury
Others
Total
338
505
210
26
164
399
125
42
1,079
730
502
904
335
68
1,809
357
15
282
149
96
(3)
(9)
34
726
195
-
6
-
25
31
130
479
242
68
919
20
78
34
14
146
110
410
208
(6)
722
1,067
2/
2nd Qtr 2010
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
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
9 Mths 2010 2/
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
353
503
183
28
168
417
173
(10)
748
521
920
356
18
1,815
363
23
259
175
90
-
5
6
717
204
-
8
-
17
25
135
494
266
24
919
21
100
37
(10)
148
114
401
229
(26)
718
1,140
360
486
307
(13)
160
322
(44)
(1)
437
520
808
263
(14)
1,577
295
18
233
245
78
2
29
-
635
265
-
8
-
19
27
207
338
183
(24)
704
33
68
42
(30)
113
174
302
141
(54)
563
1,050
1,482
607
73
3,212
489
1,146
459
31
2,125
1,539
2,628
1,066
104
5,337
1,070
50
788
652
267
2
20
50
2,145
754
-
20
-
58
78
419
1,208
797
92
2,516
64
206
121
(8)
383
355
1,019
676
(78)
1,972
8
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
Consumer/
Private
Banking
9 Mths 2009 2/
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 3/
30 Sept 2010
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 3rd Qtr 2010
Depreciation for 3rd Qtr 2010
Goodwill charge for 3rd Qtr 2010
30 Jun 2010
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 2nd Qtr 2010
Depreciation for 2nd Qtr 2010
Goodwill charge for 2nd Qtr 2010
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
Institutional
Banking
Treasury
Others
Total
1,030
1,363
945
(10)
3,328
453
1,005
98
147
1,703
1,483
2,368
1,043
137
5,031
858
91
695
701
262
50
89
303
1,904
1,145
-
19
-
41
60
534
991
731
(214)
2,042
86
206
158
(118)
332
448
828
573
(278)
1,571
49,706
115,390
99,611
9,927
113,944
9
11
74,842
2
4
50,908
3
9,275
22
25
274,634
4,802
279,436
248,969
33
43
-
49,247
113,994
100,057
8,150
115,824
11
13
68,520
3
5
49,489
2
12,689
19
26
1,018
45,094
100,649
97,959
9,095
115,194
14
14
69,084
5
6
31,262
3
2
13,605
37
26
41,702
100,458
100,649
10,814
114,490
6
12
69,428
6
6
32,719
2
2
13,491
36
44
271,448
4,802
276,250
246,522
33
46
1,018
252,797
5,847
258,644
229,145
59
48
-
253,623
5,847
259,470
230,128
50
64
-
Notes:
1/ With effect from 1 January 2010, the Group has adopted a revised capital benefit and fund transfer policy. The business segments have also been reaggregated following a
review. Comparative figures have been restated to conform to the current year presentation
2/ Allowances for credit and other losses and profits exclude goodwill charges and one-time items
3/ Refer to sections on Customer Loans and Non-Performing Assets and Loss Allowance Coverage for more information on business segments
9
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 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 external presentation of the business segment
results has been revised from first-quarter 2010 to better
reflect internal management reporting. In addition, the
Group adopted a revised capital benefit and fund
transfer policy with effect from 1 January 2010.
Comparative figures have been restated to conform to
the current presentation.
The various business segments are described below:
Consumer/ Private Banking
Consumer/ Private Banking 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
declined as housing loan margins fell, more than
offsetting the impact of higher volumes. Non-interest
income and expenses were little changed. Specific
allowances for private banking were lower.
Institutional Banking
Institutional Banking provides financial services and
products to large corporate, institutional clients and
small and medium-sized 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. Institutional Banking 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.
Asset management activities also fall under this segment.
Net interest income was stable. Non-interest income fell
as lower loan-related activities were partially offset by
higher revenues from treasury product sales. Expenses
rose due to higher bonus accruals and investments in
technology. Allowances were lower as a decline in general
allowances was partially offset by higher specific
allowances.
Treasury
Treasury 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/Private Banking
and Institutional Banking, is reflected in the respective
segments. Treasury is also 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.
Treasury’s revenues were lower than the previous quarter
due to less favourable market conditions.
Others
Others encompasses a range of activities from corporate
decisions and income and expenses not attributed to other
business segments.
10
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY GEOGRAPHY
($m)
S’pore
Selected income items
3rd Qtr 2010
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
Hong
Kong
Rest of
Greater
China
South
and
Southeast Asia
Rest of
world
Total
680
444
1,124
424
115
2
587
105
431
191
195
386
147
18
221
31
190
84
39
123
80
21
4
26
6
20
68
35
103
57
41
25
30
(4)
34
56
17
73
18
55
8
47
1,079
730
1,809
726
195
31
919
146
722
2nd Qtr 2010
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
643
513
1,156
323
148
2
687
96
538
198
165
363
249
32
82
17
65
79
25
104
78
18
7
15
3
12
70
52
122
52
14
16
72
17
55
77
(7)
70
15
(8)
63
15
48
1,067
748
1,815
717
204
25
919
148
718
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
9 Mths 2010 1/
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
1,980
1,326
3,306
1,166
541
7
1,606
227
1,218
591
525
1,116
543
57
516
81
435
239
95
334
227
45
15
77
15
62
215
141
356
162
66
56
184
33
151
187
38
225
47
45
133
27
106
3,212
2,125
5,337
2,145
754
78
2,516
383
1,972
1/
11
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
S’pore
9 Mths 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
Hong
Kong
Rest of
Greater
China
South
and
Southeast Asia
Rest of
world
Total
2,034
1,003
3,037
1,102
825
13
1,123
133
851
672
352
1,024
446
173
405
69
336
227
94
321
189
39
11
104
23
81
247
149
396
126
54
36
252
61
191
148
105
253
41
54
158
46
112
3,328
1,703
5,031
1,904
1,145
60
2,042
332
1,571
Selected balance sheet items
30 Sept 2010
Total assets before goodwill
Goodwill on consolidation
Total assets
Non-current assets 2/
Gross customer loans
176,623
171
176,794
1,587
86,521
53,149
4,631
57,780
458
37,036
18,861
18,861
126
11,541
14,115
14,115
37
9,436
11,886
11,886
2
6,000
274,634
4,802
279,436
2,210
150,534
30 Jun 2010
Total assets before goodwill
Goodwill on consolidation
Total assets
Non-current assets 2/
Gross customer loans
172,591
171
172,762
1,486
84,467
54,420
4,631
59,051
508
38,052
16,974
16,974
131
11,524
14,344
14,344
40
8,664
13,119
13,119
2
6,441
271,448
4,802
276,250
2,167
149,148
31 Dec 2009
Total assets before goodwill
Goodwill on consolidation
Total assets
Non-current assets 2/
Gross customer loans
165,652
198
165,850
1,485
75,117
47,653
5,649
53,302
530
33,431
14,362
14,362
142
10,252
12,743
12,743
46
8,058
12,387
12,387
1
6,562
252,797
5,847
258,644
2,204
133,420
30 Sept 2009
Total assets before goodwill
Goodwill on consolidation
Total assets
2/
Non-current assets
Gross customer loans
165,741
198
165,939
1,457
74,807
47,342
5,649
52,991
555
31,828
15,023
15,023
147
9,510
12,676
12,676
49
8,399
12,841
12,841
1
6,319
253,623
5,847
259,470
2,209
130,863
Notes:
1/ Allowances for credit and other losses and profits exclude goodwill charges and one-time items
2/ Includes investment in associates, properties and other fixed assets, and investment properties
12
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
The performance by geography is classified based on the
location in which income and assets are recorded.
Net profit improved from $65 million in the previous quarter
to $190 million as non-interest income rose and both
expenses and allowances declined.
Singapore
Net profit fell 20% from the previous quarter to $431
million. Trading gains fell while the previous quarter had
included a reversal of expenses that had been earlier
accrued as compensation for Constellation note holders in
Hong Kong.
Net interest income improved 6% from the previous
quarter due to higher average loan corporate and housing
loan volumes. Non-interest income fell 13% as lower
trading gains and loan-related fees were partially
compensated by higher revenues from customer flows for
treasury products.
Underlying expenses rose 4% as technology costs
increased. Allowances were lower as general allowances
fell in line with lower loan growth.
Hong Kong
The third quarter’s results incorporate an appreciation of
the Singapore dollar against the Hong Kong dollar of 3%
from the previous quarter and 6% from a year ago.
Net interest income decreased 4% from the previous
quarter as net interest margins declined 12 basis points to
1.56% due to higher deposit costs. Loans rose 3% in local
currency terms mainly from corporate borrowing. Deposits
also increased 3% as savings and demand deposits rose.
Non-interest income rose 18% from the previous quarter
from higher trading gains, fee income from credit cards and
trade finance, and gains from the sale of fixed assets. They
were partially offset by lower revenue from customer flows
for treasury products.
Expenses declined 41% as compensation for Constellation
note holders had been booked in the previous quarter.
Underlying expenses were slightly higher as staff and
technology costs rose.
Total allowances were 44% lower than the previous
quarter. General allowances fell in line with lower loan
growth.
13
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CUSTOMER LOANS
1/
($m)
30 Sept 2010
30 Jun 2010
31 Dec 2009
30 Sept 2009
150,534
149,148
133,420
130,863
General allowances
Net total
1,300
1,449
147,785
1,645
1,433
146,070
1,512
1,325
130,583
1,214
1,341
128,308
By business unit 2/
Consumer/ Private Banking
Institutional Banking
Others
Total (Gross)
49,108
100,214
1,212
150,534
48,386
100,427
335
149,148
44,162
88,503
755
133,420
41,690
88,563
610
130,863
By geography 3/
Singapore
Hong Kong
Rest of Greater China
South and South-east Asia
Rest of the world
Total (Gross)
72,997
36,541
11,322
13,677
15,997
150,534
70,698
36,982
11,455
13,653
16,360
149,148
61,713
32,999
11,211
11,726
15,771
133,420
61,291
31,851
10,437
11,969
15,315
130,863
17,814
21,194
38,030
18,404
20,282
37,082
16,239
18,433
33,120
15,053
14,798
13,335
16,242
17,722
30,956
12,245
13,714
19,868
10,652
14,209
150,534
13,294
20,202
10,480
14,606
149,148
12,277
16,710
10,873
12,433
133,420
13,026
16,939
10,559
13,174
130,863
64,908
29,029
35,879
31,789
536
31,253
35,755
2,906
32,849
18,082
2,140
15,942
150,534
60,852
26,731
34,121
33,073
575
32,498
36,355
3,530
32,825
18,868
2,586
16,282
149,148
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
Gross
Less:
Specific allowances
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)
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)
Notes:
1/ Includes customer loans classified as financial assets at fair value through profit or loss on the balance sheet
2/ The business segments have been reaggregated following a review. Historical comparatives have been restated to conform to the current year presentation.
3/ Loans by geography are classified according to where the borrower is incorporated. Historical comparatives have been restated to conform to the current year presentation.
Gross customer loans rose 1% from the previous
quarter to $150.5 billion. Excluding currency effects,
loan growth was 4%. There was broad-based regional
corporate loan growth as well as housing loan
drawdowns in Singapore. Gross loans were 15% higher
than a year ago, with the expansion spread across most
regions and across corporate and consumer borrowers.
14
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NON-PERFORMING ASSETS AND LOSS ALLOWANCE COVERAGE
By business unit
1/
2/
NPA
($m)
SP
($m)
GP
($m)
NPL
(% of loans)
(GP+SP)/NPA
(%)
(GP+SP)/
unsecured
NPA
(%)
377
163
490
0.8
173
268
2,794
1,215
959
2.8
78
100
3,171
1,378
1,449
2.1
89
117
112
77
122
-
177
211
222
112
249
-
163
174
3,505
1,567
1,820
-
97
124
396
168
482
0.8
164
263
3,035
1,570
951
3.0
83
102
3,431
1,738
1,433
2.3
92
117
101
80
116
-
194
239
192
120
260
-
198
216
3,724
1,938
1,809
-
101
126
513
195
440
1.2
124
236
3,363
1,410
885
3.8
68
86
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
635
249
406
1.5
103
205
2,784
1,039
935
3.1
71
98
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
30 Sept 2010
Consumer/ Private
Banking
Institutional Banking
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
30 Jun 2010
Consumer/ Private
Banking
Institutional Banking
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
31 Dec 2009
Consumer/ Private
Banking
Institutional Banking
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
30 Sept 2009
Consumer/ Private
Banking
Institutional Banking
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
Notes:
1/ Allowances for credit and other losses exclude one-time items
2/ The business segments have been reaggregated following a review. Historical comparatives have been restated to conform to the current year presentation.
15
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By geography
30 Sept 2010
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 Jun 2010
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 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
NPA
($m)
SP
($m)
GP
($m)
NPL
(% of loans)
(GP+SP)/NPA
(%)
(GP+SP)/
unsecured
NPA
(%)
635
377
270
195
226
190
611
367
123
0.9
1.0
2.4
127
157
116
311
222
154
146
92
191
1.1
195
200
1,743
675
157
10.9
48
54
3,171
1,378
1,449
2.1
89
117
112
77
122
-
177
211
222
112
249
-
163
174
3,505
1,567
1,820
-
97
124
648
442
316
203
253
190
588
371
125
0.9
1.2
2.8
122
141
100
258
210
140
138
80
191
1.0
197
203
1,887
1,012
158
11.5
62
67
3,431
1,738
1,433
2.3
92
117
101
80
116
-
194
239
192
120
260
-
198
216
3,724
1,938
1,809
-
101
126
731
567
352
213
327
213
546
330
121
1.2
1.7
3.1
104
116
95
244
173
143
157
82
174
1.3
163
186
2,069
770
154
13.1
45
49
3,876
1,605
1,325
2.9
76
100
160
106
92
-
124
164
183
97
255
-
192
209
4,219
1,808
1,672
-
83
108
773
650
376
208
375
198
564
318
113
1.3
2.0
3.6
100
107
83
249
157
129
174
72
195
1.5
153
181
1,446
435
151
9.4
41
49
3,419
1,288
1,341
2.6
77
113
208
131
342
-
227
282
196
102
218
-
163
177
3,823
1,521
1,901
-
90
128
16
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By industry
($m)
30 Sept 2010
30 Jun 2010
31 Dec 2009
30 Sept 2009
NPA
SP
NPA
SP
NPA
SP
NPA
SP
533
39
125
322
330
12
19
161
612
47
140
411
351
13
21
197
735
89
188
472
386
22
30
238
694
93
234
480
349
24
41
177
628
150
284
115
264
97
246
39
Financial institutions, investment &
holding companies
1,200
545
1,622
882
1,738
621
1,200
369
Professionals & private individuals
(except housing loans)
174
74
176
75
234
113
265
138
Manufacturing
Building and construction
Housing loans
General commerce
Transportation, storage &
communications
Others
150
87
139
84
156
98
207
151
3,171
112
1,378
77
3,431
101
1,738
80
3,876
160
1,605
106
3,419
208
1,288
131
222
112
192
120
183
97
196
102
Total non-performing assets
3,505
1,567
3,724
1,938
1,808
3,823
1,521
By loan classification
($m)
30 Sept 2010
Total non-performing loans
Debt securities
Contingent liabilities & others
Non-performing assets
Substandard
Doubtful
Loss
Total
Restructured assets
Substandard
Doubtful
Loss
Total
30 Jun 2010
4,219
31 Dec 2009
30 Sept 2009
NPA
SP
NPA
SP
NPA
SP
NPA
SP
2,013
993
499
3,505
342
723
502
1,567
1,798
1,390
536
3,724
249
1,153
536
1,938
2,155
1,431
633
4,219
195
977
636
1,808
2,476
830
517
3,823
356
648
517
1,521
422
218
30
670
55
119
31
205
385
116
35
536
40
94
36
170
389
90
54
533
51
73
54
178
440
68
44
552
62
54
44
160
By collateral type
($m)
30 Sept 2010
30 Jun 2010
NPA
NPA
NPA
NPA
2,726
2,972
3,233
2,683
Secured non-performing assets by collateral type
Properties
284
349
540
629
Shares and debentures
Fixed deposits
Others
112
37
346
116
45
242
124
22
300
149
13
349
3,505
3,724
4,219
3,823
Unsecured non-performing assets
Total
31 Dec 2009 30 Sept 2009
17
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By period overdue
($m)
30 Sept 2010
30 Jun 2010
31 Dec 2009
30 Sept 2009
NPA
NPA
NPA
NPA
Not overdue
180 days overdue
1,323
198
655
1,329
969
771
141
1,843
1,802
358
113
1,946
1,313
648
655
1,207
Total
3,505
3,724
4,219
3,823
Non-performing loans fell 8% from the previous quarter to
$3.17 billion or 2.1% of the loan as recoveries and writeoffs exceeded new NPLs. Thirty-eight percent of classified
non-performing assets were still current in
interest and principal. Allowance coverage amounted to
97% of non-performing assets and to 124% if collateral
was considered.
FUNDING SOURCES
($m)
Customer deposits 1/
Interbank liabilities 2/
Other borrowings and liabilities 2/
Shareholders’ funds
Total
30 Sept 2010
30 Jun 2010
31 Dec 2009
30 Sept 2009
185,211
19,720
48,081
26,424
279,436
183,929
21,152
45,553
25,616
276,250
183,432
9,320
40,519
25,373
258,644
180,185
9,138
44,973
25,174
259,470
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
18
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
30 Sept 2010
30 Jun 2010
31 Dec 2009
30 Sept 2009
105,672
16,473
74,068
14,431
700
23,159
12,427
6,902
3,666
164
28,699
15,969
3,244
7,815
1,671
27,681
21,725
2,286
2,197
1,473
185,211
66,594
86,500
28,109
4,008
105,209
17,921
72,073
14,392
823
23,555
13,281
6,942
3,252
80
26,104
13,185
3,193
7,053
2,673
29,061
22,636
1,981
2,499
1,945
183,929
67,023
84,189
27,196
5,521
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
Note:
1/ Includes customer deposits classified as financial liabilities at fair value through profit or loss on the balance sheet
Customer deposits rose 1% from the previous quarter to
$185.2 billion mainly because of an increase in US dollar
fixed deposits. Singapore dollar deposits were stable as an
increase in savings accounts was offset by lower fixed
deposits.
OTHER BORROWINGS & LIABILITIES
($m)
Subordinated term debts1/
Other debt securities in issue
Due within 1 year
Due after 1 year
Comprising:
2/
Secured
Unsecured
Others
Total
30 Sept 2010
30 Jun 2010
31 Dec 2009
30 Sept 2009
6,572
6,956
7,702
7,790
530
1,615
601
312
44
369
102
506
2,145
39,364
48,081
913
37,684
45,553
75
338
32,404
40,519
108
500
36,575
44,973
Notes:
1/ All subordinated term debts issued are unsecured
2/ These are mainly secured by properties and securities
19
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 October 2009 to 30 September 2010. The
Group’s trading book VaR methodology is based on Historical Simulation VaR.
($m)
1 October 2009 to 30 September 2010
Average
High
Low
As at 30 Sept 2010
Total
26
26
40
15
The charts below provide the range of VaR and the daily distribution of trading income in the trading portfolio for the
period from 1 October 2009 to 30 September 2010.
D BSH Grou p Va R for Tr a din g Book
60
No. of Days
50
40
30
20
10
> 39- 40
> 38- 39
> 37- 38
> 36- 37
> 35- 36
> 34- 35
> 33- 34
> 32- 33
> 31- 32
> 30- 31
> 29- 30
> 28- 29
> 27- 28
> 26- 27
> 25- 26
> 24- 25
> 23- 24
> 22- 23
> 21- 22
> 20- 21
> 19- 20
> 18- 19
> 17- 18
> 16- 17
> 15- 16
0
VaR ( S$ 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 Treasury & Markets Group Trading Income
(1 Oct 2009 to 30 Sep 2010)
45
40
35
25
20
15
10
Trading income (S$ million)
20
>34-36
>32-34
>30-32
>28-30
>26-28
>24-26
>22-24
>20-22
>18-20
>16-18
>14-16
>12-14
>10-12
>8-10
>6-8
>4-6
>2-4
>0-2
>(4)-(2)
>(6)-(4)
>(8)-(6)
>(10)-(8)
>(12)-(10)
>(14)-(12)
0
>(2)-0
5
>(16)-(14)
No. of days
30
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CAPITAL ADEQUACY
($m)
30 Sept 2010
30 Jun 2010
31 Dec 2009
30 Sept 2009
8,775
20,851
(5,073)
24,553
8,650
20,547
(5,044)
24,153
8,435
20,928
(6,098)
23,265
8,432
20,761
(6,053)
23,140
482
5,415
171
(143)
30,478
186,847
757
5,714
94
(139)
30,579
184,824
434
5,970
87
(128)
29,628
177,222
623
6,025
65
(124)
29,729
185,222
13.1
3.2
16.3
13.1
3.4
16.5
13.1
3.6
16.7
12.5
3.6
16.1
Tier 1
Share capital
Disclosed reserves and others
Less: Tier 1 Deductions
Eligible Tier 1
Tier 2
Loan allowances admitted as Tier 2
Subordinated debts
Revaluation surplus from equity securities
Less: Tier 2 Deductions
Total eligible capital
Risk-weighted assets
Capital adequacy ratio (%)
Tier 1 ratio
Tier 2 ratio
Total (Tier 1 & 2) ratio
The Group’s capital adequacy ratio moved from 16.5% in the previous quarter to 16.3% as a result of an increase in riskweighted assets.
UNREALISED VALUATION SURPLUS/(LOSSES)
($m)
Properties
Financial investments
Total
30 Sept 2010
30 Jun 2010
31 Dec 2009
30 Sept 2009
482
141
623
507
94
601
511
119
630
561
194
755
The amount of unrealised valuation surplus increased $22 million to $623 million in third quarter 2010 due to improved
valuations of financial investments. The decrease in the valuation surplus for properties is mainly due to the property
disposals during the quarter.
21
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Consolidated Income Statement
In $ millions
3rd Qtr
2010
3rd Qtr +/(-) 2nd Qtr +/(-)
2009
%
2010
%
9 Mths
2010
9 Mths +/(-)
2009
%
1,409
3
342
11
1,067
1
358 (5)
266 (12)
12 NM
98
26
14 >100
4,238
1,026
3,212
1,039
761
(30)
271
84
4,677 (9)
1,349 (24)
3,328 (3)
1,036
521
46
(143)
79
251
8
38 >100
Income
Interest income
Interest expense
Net interest income
Net fee and commission income
Net trading income
Net (loss)/income from financial instruments designated at fair value
Net income from financial investments
Other income
1,457
378
1,079
340
235
(12)
123
44
1,479
339
1,140
361
83
(27)
7
13
(1)
12
(5)
(6)
>100
56
>100
>100
Total income
1,809
1,577
15
1,815
-
5,337
5,031
6
Expenses
Employee benefits
Depreciation of properties and other fixed assets
Other expenses
Goodwill charges
Allowances for credit and other losses
360
43
323
195
322
64
249
265
12
(33)
30
(26)
362
46
309
1,018
204
(1)
(7)
5
NM
(4)
1,060
137
948
1,018
754
979
147
778
1,168
8
(7)
22
NM
(35)
Total expenses
921
900
2
1,939
(53)
3,917
3,072
28
Profit/(Loss)
Share of profits of associates
Profit/(Loss) before tax
888
31
919
677
27
704
31
15
31
(124)
25
(99)
NM
24
NM
1,420
78
1,498
1,959
60
2,019
(28)
30
(26)
Income tax expense
Net profit/(loss)
146
773
113
591
29
31
148
(247)
(1)
NM
383
1,115
332
1,687
15
(34)
722
51
773
563
28
591
28
82
31
(300)
53
(247)
NM
(4)
NM
954
161
1,115
1,548
139
1,687
(38)
16
(34)
+/(-)
%
9 Mths
2010
NM
1,115
1,687
(34)
Attributable to:
Shareholders
Minority interests
Unaudited Consolidated Statement of Comprehensive Income
In $ millions
Net profit/(loss)
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 on sale
Tax on items taken directly to or transferred from equity
Other comprehensive income, net of tax
Total comprehensive income
Attributable to:
Shareholders
Minority interests
3rd Qtr 3rd Qtr
2010
2009
773
591
+/(-) 2nd Qtr
%
2010
31
(247)
9 Mths +/(-)
2009
%
(109)
5
(18) (>100)
1 >100
(12) (>100)
7
(29)
(90)
9
35
16
NM
(44)
445
(102)
(31)
208
540
(18)
(29) (>100)
(55)
44
439
(53)
227
96
(59)
(73)
(1) (>100)
162
28
902
(138)
(54)
629
900
(281)
(85)
585
51
36
8
981
1,030
(5)
(85)
NM
1,744
2,272
(23)
1,010
(29)
981
1,029
1
1,030
(2)
NM
(5)
(135)
50
(85)
NM
NM
NM
1,670
74
1,744
2,126
146
2,272
(21)
(49)
(23)
22
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Balance Sheets
In $ millions
30 Sept
2010
GROUP
30 Jun
31 Dec
2010
2009 1/
30 Sept
2009
30 Sept
2010
COMPANY
30 Jun
31 Dec
2010
2009 1/
30 Sept
2009
ASSETS
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
21,782
12,134
23,106
11,549
18,949
147,139
26,275
1,657
22,571
15,364
19,237
11,660
17,558
145,403
27,420
2,076
22,515
15,960
22,203
11,257
16,015
129,973
25,731
784
12,703
15,072
31,524
12,283
17,761
127,703
25,884
876
9,298
9,726
9,698
9,993
795
4,802
1,027
388
103
9,730
694
4,802
1,066
407
105
7,887
672
5,847
1,134
398
144
6,011
653
5,847
1,179
377
129
7,479
63
65
93
98
TOTAL ASSETS
279,436
276,250
258,644
259,470
9,361
9,791
9,791
10,091
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
19,616
178,815
11,372
18,935
790
969
55
9,700
2,145
6,572
21,066
178,540
10,919
17,443
744
873
53
9,015
913
6,956
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
227
451
5
4
TOTAL LIABILITIES
248,969
246,522
229,145
230,128
227
451
5
4
30,467
29,728
29,499
29,342
9,134
9,340
9,786
10,087
Share capital
Treasury shares
Other reserves
Revenue reserves
8,775
(84)
7,595
10,138
8,650
(86)
7,300
9,752
8,435
(114)
6,879
10,173
8,433
(120)
6,863
9,998
8,775
8,650
8,435
71
288
64
626
71
1,280
8,433
52
1,602
SHAREHOLDERS’ FUNDS
26,424
25,616
25,373
25,174
9,134
9,340
9,786
10,087
Minority interests
4,043
4,112
4,126
4,168
TOTAL EQUITY
30,467
29,728
29,499
29,342
9,134
9,340
9,786
10,087
15,616
96,431
1,484,518
16,389
89,993
1,541,424
15,711
82,496
1,396,855
14,997
81,853
1,415,223
11.18
10.97
10.88
10.68
10.85
10.65
10.76
10.57
3.85
3.82
3.98
3.92
4.18
4.11
4.31
4.23
LIABILITIES
NET ASSETS
EQUITY
OFF BALANCE SHEET ITEMS
Contingent liabilities
Commitments
Financial derivatives
OTHER INFORMATION
Net book value per ordinary share ($)
(i) Basic
(ii) Diluted
Notes:
1/ Audited
2/ Includes customer loans, interbank assets, other government securities and treasury bills, corporate debt securities and equity securities
3/ Includes customer deposits, interbank liabilities, other debt securities in issue and other financial liabilities
23
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Consolidated Statement of Changes in Equity
GROUP
In $ millions
Balance at 1 January 2010
Exercise of share options
Reclassification of reserves upon exercise of
share options
Ordinary
shares
8,188
Convertible
preference
shares
Treasury
shares
Other
reserves
Revenue
reserves
Total
Minority
interests
Total equity
247
(114)
6,879
10,173
25,373
4,126
29,499
11
2
11
11
-
-
(2)
Issuance of new shares pursuant to Scrip
Dividend Scheme
206
206
206
Shares distributable pursuant to Scrip Dividend
Scheme
121
121
121
32
32
32
(30)
-
Cost of share-based payments
Draw-down of reserves upon vesting of
3
Unaudited Financial Results
For the Third Quarter ended
30 September 2010
DBS Group Holdings Ltd
Incorporated in the Republic of Singapore
Company Registration Number: 199901152M
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Contents
Overview
Net Interest Income
Net Fee and Commission Income
Other Non-Interest Income
Expenses
Allowances for Credit and Other Losses
Performance by Business Segments
Performance by Geography
Customer Loans
Non-Performing Assets and Loss Allowance Coverage
Funding Sources
Customer Deposits
Other Borrowings & Liabilities
Value at Risk and Trading Income
Capital Adequacy
Unrealised Valuation Surplus/(Losses)
Unaudited Consolidated Income Statement
Unaudited Consolidated Statement of Comprehensive Income
Unaudited Balance Sheets
Unaudited Consolidated Statement of Changes in Equity
Unaudited Statement of Changes in Equity
Unaudited Consolidated Cash Flow Statement
Additional Information
Issuance of Ordinary Shares
Adoption of New or Revised FRS and INT FRS
Subsequent Event
Confirmation by the Board
Page
2
4
6
6
7
7
8
11
14
15
18
19
19
20
21
21
22
22
23
24
25
26
27
27
27
28
1
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
OVERVIEW
DBS Group Holdings Ltd (“DBSH”) prepares its condensed consolidated DBSH Group (“Group”) interim financial statements in
accordance with Singapore Financial Reporting Standard (“FRS”) No. 34 Interim Financial Reporting, as modified by the
requirements of Notice to Banks No. 612 “Credit Files, Grading and Provisioning” issued by the Monetary Authority of
Singapore. The accounting policies and methods of computation applied for the current financial periods are consistent with
those applied for the financial year ended 31 December 2009, with the exception of the adoption of new or revised FRS and
Interpretations to FRS (“INT FRS”).
On 1 January 2010, 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 27 Consolidated and Separate Financial Statements
•
FRS 103 Business Combinations
•
FRS 39 (Amendments) Financial Instruments: Recognition and Measurement
- Eligible Hedged Items
- Embedded Derivatives
•
FRS 102 (Amendments) Share-Based Payment – Group Cash-settled Share-based Payment Transactions
•
INT FRS 109 (Amendments): Reassessment of Embedded Derivatives
•
INT FRS 117: Distributions of Non-cash Assets to Owners
•
Improvements to FRSs
Refer to page 27 for more information.
3rd Qtr
2010
3rd Qtr
2009
%
chg
2nd Qtr
2010
%
chg
9 Mths
2010
9 Mths
2009
%
chg
1,079
340
390
1,809
726
1,083
195
919
722
-
1,140
361
76
1,577
635
942
265
704
563
-
(5)
(6)
>100
15
14
15
(26)
31
28
-
1,067
358
390
1,815
717
1,098
204
919
718
(1,018)
1
(5)
1
(1)
(4)
1
NM
3,212
1,039
1,086
5,337
2,145
3,192
754
2,516
1,972
(1,018)
3,328
1,036
667
5,031
1,904
3,127
1,145
2,042
1,571
-
(3)
63
6
13
2
(34)
23
26
NM
-
-
-
-
-
-
(23)
NM
722
563
28
(300)
NM
954
1,548
(38)
Selected balance sheet items ($m)
Customer loans 2/
Interbank assets 3/
Total assets
147,785
25,820
279,436
128,308
33,365
259,470
15
(23)
8
146,070
21,846
276,250
1
18
1
147,785
25,820
279,436
128,308
33,365
259,470
15
(23)
8
Customer deposits 4/
Total liabilities
Shareholders’ funds
185,211
248,969
26,424
180,185
230,128
25,174
3
8
5
183,929
246,522
25,616
1
1
3
185,211
248,969
26,424
180,185
230,128
25,174
3
8
5
1.80
40.4
40.1
1.04
11.06
79.8
2.1
2.03
27.7
40.3
0.86
9.08
71.2
2.6
1.84
41.2
39.5
1.07
11.08
79.4
2.3
1.86
39.8
40.2
0.98
10.18
79.8
2.1
2.02
33.9
37.8
0.81
8.65
71.2
2.6
33
70
19
49
75
13.1
16.3
12.5
16.1
13.1
16.5
13.1
16.3
12.5
16.1
Selected income statement items ($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
Goodwill charges
One-time items 1/
Net profit/(loss) including goodwill charges
and one-time items
Key financial ratios (%) (excluding
5/
goodwill charges and one-time items)
Net interest margin
Non-interest/total income
Cost/income ratio
Return on assets
6/
Return on equity
Loan/deposit ratio
NPL ratio
Specific allowances (loans)/average loans
(bp)
Tier 1 capital adequacy ratio
Total capital adequacy ratio
2
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
3rd Qtr
2010
3rd Qtr
2009
2nd Qtr
2010
9 Mths
2010
9 Mths
2009
1.25
0.98
1.25
1.14
0.93
1.25
11.18
0.98
10.76
0.80
10.88
0.69
11.18
0.92
10.76
1.20
0.95
1.20
1.10
0.90
1.20
10.97
0.95
10.57
0.78
10.68
0.67
10.97
0.89
10.57
Per share data ($)
Per basic share
– earnings excluding one-time items and
goodwill charges
– earnings
– net book value 6/ 7/
Per diluted share
– earnings excluding one-time items and
goodwill charges
– earnings
6/ 7/
– net book value
Notes:
1/ One-time items include an impairment charge for a Thai investment
2/ Includes customer loans classified as financial assets at fair value through profit or loss on the balance sheet
3/ Includes interbank assets classified as financial assets at fair value through profit or loss on the balance sheet
4/ Includes customer deposits classified as financial liabilities at fair value through profit or loss on the balance sheet
5/ Return on assets, return on equity, specific allowances (loan)/average loan and per share data for the quarters are computed on an annualised basis
6/ Minority interests are not included as equity in the computation of net book value and return on equity
7/ Takes into account 9.2 million shares to be issued on 13 Oct 2010 pursuant to the Scrip Dividend Scheme
NM Not Meaningful
Third-quarter net profit rose 28% from a year ago to a
record $722 million. The results were underpinned by
continued loan growth and sustained customer-driven
non-interest income flows.
Net interest income rose 1% from the previous quarter to
$1.08 billion as loan growth was offset by a decline in net
interest margins. Loans rose 1% from corporate borrowing
across the region and housing loans in Singapore. Net
interest margin fell four basis points to 1.80%.
Non-interest income fell 2% from the previous quarter to
$730 million. Net fee income fell due to lower loan-related
revenues, but most other fee activities were maintained.
Revenues from customer flows for treasury products
increased, but lower trading gains resulted in a decline in
overall trading income. Gains from the sale of investment
securities and fixed assets were higher.
Expenses of $726 million were 1% higher than the
previous quarter. The cost-income ratio was little changed
at 40%.
The non-performing loan rate improved from 2.3% in the
previous quarter to 2.1% as repayments and write-offs
exceeded new non-performing loans. General and
specific allowances of $195 million were set aside, and
the allowance coverage was at 97% and at 124% if
collateral was considered.
For the first nine months, net profit (before one-time
items) rose 26% to $1.97 billion from higher customer
flows in non-interest income and from lower allowances
as asset quality improved.
Return on equity was 11.1% for the third quarter, similar
to the previous quarter. For the nine months, it improved
from 8.7% a year ago to 10.2%. DBS remained well
capitalised with total capital adequacy ratio at 16.3%
with tier-1 at 13.1%.
3
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET INTEREST INCOME
Average balance
sheet
3rd Qtr 2010
Average
Average
balance Interest
rate
($m)
($m)
(%)
3rd Qtr 2009
Average
Average
balance Interest
rate
($m)
($m)
(%)
2nd Qtr 2010
Average
Average
balance Interest
rate
($m)
($m)
(%)
Interest-bearing
assets
Customer loans
Interbank assets
Securities
Total
145,902
40,880
51,010
237,792
1,009
97
351
1,457
2.74
0.95
2.73
2.43
127,454
42,410
52,461
222,325
983
94
402
1,479
3.06
0.88
3.05
2.64
138,617
43,195
51,138
232,950
984
82
343
1,409
2.85
0.76
2.69
2.43
Interest-bearing
liabilities
Customer deposits
Other borrowings
Total
184,815
33,766
218,581
269
109
378
0.58
1.28
0.69
179,319
26,585
205,904
227
112
339
0.50
1.68
0.65
182,951
31,270
214,221
241
101
342
0.53
1.30
0.64
1,079
1.80
1,140
2.03
1,067
1.84
Net interest
income/margin 1/
9 Mths 2010
Average balance
sheet
Average
balance
($m)
9 Mths 2009
Average Average
Interest
rate balance
($m)
(%)
($m)
Interest
($m)
Average
rate
(%)
Interest-bearing
assets
Customer loans
Interbank assets
Securities
Total
138,696
41,862
50,737
231,295
2,927
253
1,058
4,238
2.82
0.81
2.79
2.45
127,692
41,806
50,959
220,457
3,107
296
1,274
4,677
3.26
0.95
3.35
2.84
Interest-bearing
liabilities
Customer deposits
Other borrowings
Total
182,950
29,863
212,813
725
301
1,026
0.53
1.35
0.64
177,221
27,488
204,709
912
437
1,349
0.69
2.14
0.88
3,212
1.86
3,328
2.02
Net interest
1/
income/margin
Note:
1/ Net interest margin is net interest income expressed as a percentage of average interest-earning assets
Net interest income rose 1% from the previous quarter to
$1.08 billion.
The impact of the margin decline was offset by higher
customer loan volumes.
Net interest margins fell four basis points from the previous
quarter to 1.80%. Yields for new housing loans were lower
than those that had run off. In addition, deposit costs were
higher in Hong Kong.
Net interest income for the nine months was 3% below a
year ago as lower interest margins more than offset the
benefit of higher asset volumes.
4
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
3rd Qtr 2010 versus 3rd Qtr 2009
Volume and rate analysis ($m)
Increase/(decrease) due to change in
3rd Qtr 2010 versus 2nd Qtr 2010
Volume
Rate
Net
change
Volume
Rate
Net
change
Customer loans
Interbank assets
Securities
142
(3)
(11)
(116)
6
(40)
26
3
(51)
52
(4)
(40)
19
12
15
Total
128
(150)
(22)
(1)
47
5
(16)
4
31
7
11
18
35
(14)
21
42
(3)
39
2
6
8
22
1
23
24
7
31
110
(171)
(61)
39
(39)
-
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
(61)
12
9 Mths 2010 versus 9 Mths 2009
Volume and rate analysis ($m)
Increase/(decrease) due to change in
Volume
Rate
Net
change
268
(5)
263
(448)
(43)
(211)
(702)
(180)
(43)
(216)
(439)
29
4
33
(216)
(140)
(356)
(187)
(136)
(323)
230
(346)
(116)
Interest income
Customer loans
Interbank assets
Securities
Total
Interest expense
Customer deposits
Other borrowings
Total
Net impact on interest income
Due to change in number of days
Net Interest Income
(116)
5
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET FEE AND COMMISSION INCOME
($m)
Stockbroking
Investment banking
Trade and remittances
Loan related
Guarantees
Deposit related
Credit card
Fund management
Wealth management
Others
Total
3rd Qtr
2010
3rd Qtr
2009
% chg
2nd Qtr
2010
% chg
9 Mths
2010
9 Mths
2009
% chg
45
38
55
80
14
21
35
5
31
16
340
51
43
56
86
14
21
37
5
34
14
361
(12)
(12)
(2)
(7)
(5)
(9)
14
(6)
42
29
57
101
16
22
36
6
34
15
358
7
31
(4)
(21)
(13)
(5)
(3)
(17)
(9)
7
(5)
129
94
171
281
43
64
104
16
92
45
1,039
129
87
189
290
43
63
107
16
71
41
1,036
8
(10)
(3)
2
(3)
30
10
-
Net fee and commission income decreased by 5% from the
previous quarter to $340 million mainly due to decline in
loan related activities offset by improvements in
stockbroking and investment banking activities.
Net fee and commission income for the nine months was
unchanged with an improvement in wealth management
revenues offset by lower fees from trade and remittances
as margins fell. Loan-related fees were also lower.
OTHER NON-INTEREST INCOME
($m)
Net trading income
Net (loss)/income from financial
instruments designated at fair value
Net income on financial
investments
Net gain on fixed assets
Others (include rental income)
Total
3rd Qtr
2010
3rd Qtr
2009
% chg
2nd Qtr
2010
% chg
9 Mths
2010
9 Mths
2009
% chg
235
83
>100
266
(12)
761
521
46
(12)
(27)
56
12
NM
(30)
(143)
79
123
7
>100
98
26
271
251
8
34
10
13
NM
(23)
3
11
>100
(9)
51
33
38
NM
(13)
390
76
>100
390
-
1,086
667
63
Note:
NM Not Meaningful
Net trading income (including net income from financial
instruments designated at fair value) fell 20% from the
previous quarter to $223 million. Customer revenues
rose 10% from the previous quarter but the impact was
more than offset by a decline in trading gains and a
more prudent valuation reserve methodology. For the
nine months, net trading income rose 93% from higher
customer flows.
Net income from financial investments improved from
the previous quarter as market conditions were
conducive for taking profit on investments. It was also
higher for the nine months.
6
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
EXPENSES
($m)
3rd Qtr
2010
3rd Qtr
2009
Staff
Occupancy
Computerisation
Revenue-related
Others
Total
Staff headcount at period-end
360
67
145
33
121
726
15,206
322
71
114
27
101
635
13,868
12
(6)
27
22
20
14
10
43
1
64
1
2
2
Included in the above table were:
Depreciation of properties and other fixed
assets
Directors’ fees
Audit fees payable
Expenses rose 1% from the previous quarter to $726
million. The increase was due to higher computerisation
expenses. The cost-income ratio was unchanged at 40%.
% chg 2nd Qtr
2010
% chg
9 Mths
2010
9 Mths
2009
% chg
362
65
131
35
124
717
14,615
(1)
3
11
(6)
(2)
1
4
1,060
202
405
99
379
2,145
15,206
979
209
330
93
293
1,904
13,868
8
(3)
23
6
29
13
10
(33)
-
46
1
(7)
-
137
2
147
2
(7)
-
-
2
-
6
6
-
For the nine months, costs rose 13% on higher
headcount and other costs to support higher business
volumes and investments for future growth.
ALLOWANCES FOR CREDIT AND OTHER LOSSES
($m)
3rd Qtr
2010
3rd Qtr
2009
39
14
>100
125
(1)
8
17
15
86
229
37
13
7
1
171
31
195
General allowances (GP)
1/
Specific allowances (SP) for loans
Singapore
Hong Kong
Rest of Greater China
South and South-east Asia
Rest of the world
Specific allowances (SP) for securities,
properties and other assets 2/
Total
% chg 2nd Qtr
2010
% chg
9 Mths
2010
9 Mths % chg
2009
124
(69)
188
379
(50)
(45)
NM
(38)
>100
>100
(50)
68
1
(4)
13
6
52
84
NM
NM
31
>100
65
517
10
11
27
27
442
726
141
170
32
19
364
(29)
(93)
(94)
(16)
42
21
22
41
12
>100
49
40
23
265
(26)
204
(4)
754
1,145
(34)
Notes:
1/ Specific allowances for loans are classified according to where the borrower is incorporated. Historical comparatives have been restated to conform to the current year presentation
2/ Exclude one-time items
Specific allowances for loans rose moderately to $125
million (33 basis points of loans) from $68 million (19
basis points) in the previous quarter. General
allowances fell to $39 million from $124 million in line
with lower loan growth.
For the nine months, total allowances fell 34% as
specific allowances declined in line with improvements
in asset quality. General allowances were also lower.
7
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY BUSINESS SEGMENTS
1/
($m)
Consumer/
Private
Banking
Selected income items
3rd Qtr 2010
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
Institutional
Banking
Treasury
Others
Total
338
505
210
26
164
399
125
42
1,079
730
502
904
335
68
1,809
357
15
282
149
96
(3)
(9)
34
726
195
-
6
-
25
31
130
479
242
68
919
20
78
34
14
146
110
410
208
(6)
722
1,067
2/
2nd Qtr 2010
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
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
9 Mths 2010 2/
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
353
503
183
28
168
417
173
(10)
748
521
920
356
18
1,815
363
23
259
175
90
-
5
6
717
204
-
8
-
17
25
135
494
266
24
919
21
100
37
(10)
148
114
401
229
(26)
718
1,140
360
486
307
(13)
160
322
(44)
(1)
437
520
808
263
(14)
1,577
295
18
233
245
78
2
29
-
635
265
-
8
-
19
27
207
338
183
(24)
704
33
68
42
(30)
113
174
302
141
(54)
563
1,050
1,482
607
73
3,212
489
1,146
459
31
2,125
1,539
2,628
1,066
104
5,337
1,070
50
788
652
267
2
20
50
2,145
754
-
20
-
58
78
419
1,208
797
92
2,516
64
206
121
(8)
383
355
1,019
676
(78)
1,972
8
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
Consumer/
Private
Banking
9 Mths 2009 2/
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 3/
30 Sept 2010
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 3rd Qtr 2010
Depreciation for 3rd Qtr 2010
Goodwill charge for 3rd Qtr 2010
30 Jun 2010
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 2nd Qtr 2010
Depreciation for 2nd Qtr 2010
Goodwill charge for 2nd Qtr 2010
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
Institutional
Banking
Treasury
Others
Total
1,030
1,363
945
(10)
3,328
453
1,005
98
147
1,703
1,483
2,368
1,043
137
5,031
858
91
695
701
262
50
89
303
1,904
1,145
-
19
-
41
60
534
991
731
(214)
2,042
86
206
158
(118)
332
448
828
573
(278)
1,571
49,706
115,390
99,611
9,927
113,944
9
11
74,842
2
4
50,908
3
9,275
22
25
274,634
4,802
279,436
248,969
33
43
-
49,247
113,994
100,057
8,150
115,824
11
13
68,520
3
5
49,489
2
12,689
19
26
1,018
45,094
100,649
97,959
9,095
115,194
14
14
69,084
5
6
31,262
3
2
13,605
37
26
41,702
100,458
100,649
10,814
114,490
6
12
69,428
6
6
32,719
2
2
13,491
36
44
271,448
4,802
276,250
246,522
33
46
1,018
252,797
5,847
258,644
229,145
59
48
-
253,623
5,847
259,470
230,128
50
64
-
Notes:
1/ With effect from 1 January 2010, the Group has adopted a revised capital benefit and fund transfer policy. The business segments have also been reaggregated following a
review. Comparative figures have been restated to conform to the current year presentation
2/ Allowances for credit and other losses and profits exclude goodwill charges and one-time items
3/ Refer to sections on Customer Loans and Non-Performing Assets and Loss Allowance Coverage for more information on business segments
9
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 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 external presentation of the business segment
results has been revised from first-quarter 2010 to better
reflect internal management reporting. In addition, the
Group adopted a revised capital benefit and fund
transfer policy with effect from 1 January 2010.
Comparative figures have been restated to conform to
the current presentation.
The various business segments are described below:
Consumer/ Private Banking
Consumer/ Private Banking 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
declined as housing loan margins fell, more than
offsetting the impact of higher volumes. Non-interest
income and expenses were little changed. Specific
allowances for private banking were lower.
Institutional Banking
Institutional Banking provides financial services and
products to large corporate, institutional clients and
small and medium-sized 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. Institutional Banking 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.
Asset management activities also fall under this segment.
Net interest income was stable. Non-interest income fell
as lower loan-related activities were partially offset by
higher revenues from treasury product sales. Expenses
rose due to higher bonus accruals and investments in
technology. Allowances were lower as a decline in general
allowances was partially offset by higher specific
allowances.
Treasury
Treasury 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/Private Banking
and Institutional Banking, is reflected in the respective
segments. Treasury is also 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.
Treasury’s revenues were lower than the previous quarter
due to less favourable market conditions.
Others
Others encompasses a range of activities from corporate
decisions and income and expenses not attributed to other
business segments.
10
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY GEOGRAPHY
($m)
S’pore
Selected income items
3rd Qtr 2010
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
Hong
Kong
Rest of
Greater
China
South
and
Southeast Asia
Rest of
world
Total
680
444
1,124
424
115
2
587
105
431
191
195
386
147
18
221
31
190
84
39
123
80
21
4
26
6
20
68
35
103
57
41
25
30
(4)
34
56
17
73
18
55
8
47
1,079
730
1,809
726
195
31
919
146
722
2nd Qtr 2010
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
643
513
1,156
323
148
2
687
96
538
198
165
363
249
32
82
17
65
79
25
104
78
18
7
15
3
12
70
52
122
52
14
16
72
17
55
77
(7)
70
15
(8)
63
15
48
1,067
748
1,815
717
204
25
919
148
718
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
9 Mths 2010 1/
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
1,980
1,326
3,306
1,166
541
7
1,606
227
1,218
591
525
1,116
543
57
516
81
435
239
95
334
227
45
15
77
15
62
215
141
356
162
66
56
184
33
151
187
38
225
47
45
133
27
106
3,212
2,125
5,337
2,145
754
78
2,516
383
1,972
1/
11
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
S’pore
9 Mths 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
Hong
Kong
Rest of
Greater
China
South
and
Southeast Asia
Rest of
world
Total
2,034
1,003
3,037
1,102
825
13
1,123
133
851
672
352
1,024
446
173
405
69
336
227
94
321
189
39
11
104
23
81
247
149
396
126
54
36
252
61
191
148
105
253
41
54
158
46
112
3,328
1,703
5,031
1,904
1,145
60
2,042
332
1,571
Selected balance sheet items
30 Sept 2010
Total assets before goodwill
Goodwill on consolidation
Total assets
Non-current assets 2/
Gross customer loans
176,623
171
176,794
1,587
86,521
53,149
4,631
57,780
458
37,036
18,861
18,861
126
11,541
14,115
14,115
37
9,436
11,886
11,886
2
6,000
274,634
4,802
279,436
2,210
150,534
30 Jun 2010
Total assets before goodwill
Goodwill on consolidation
Total assets
Non-current assets 2/
Gross customer loans
172,591
171
172,762
1,486
84,467
54,420
4,631
59,051
508
38,052
16,974
16,974
131
11,524
14,344
14,344
40
8,664
13,119
13,119
2
6,441
271,448
4,802
276,250
2,167
149,148
31 Dec 2009
Total assets before goodwill
Goodwill on consolidation
Total assets
Non-current assets 2/
Gross customer loans
165,652
198
165,850
1,485
75,117
47,653
5,649
53,302
530
33,431
14,362
14,362
142
10,252
12,743
12,743
46
8,058
12,387
12,387
1
6,562
252,797
5,847
258,644
2,204
133,420
30 Sept 2009
Total assets before goodwill
Goodwill on consolidation
Total assets
2/
Non-current assets
Gross customer loans
165,741
198
165,939
1,457
74,807
47,342
5,649
52,991
555
31,828
15,023
15,023
147
9,510
12,676
12,676
49
8,399
12,841
12,841
1
6,319
253,623
5,847
259,470
2,209
130,863
Notes:
1/ Allowances for credit and other losses and profits exclude goodwill charges and one-time items
2/ Includes investment in associates, properties and other fixed assets, and investment properties
12
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
The performance by geography is classified based on the
location in which income and assets are recorded.
Net profit improved from $65 million in the previous quarter
to $190 million as non-interest income rose and both
expenses and allowances declined.
Singapore
Net profit fell 20% from the previous quarter to $431
million. Trading gains fell while the previous quarter had
included a reversal of expenses that had been earlier
accrued as compensation for Constellation note holders in
Hong Kong.
Net interest income improved 6% from the previous
quarter due to higher average loan corporate and housing
loan volumes. Non-interest income fell 13% as lower
trading gains and loan-related fees were partially
compensated by higher revenues from customer flows for
treasury products.
Underlying expenses rose 4% as technology costs
increased. Allowances were lower as general allowances
fell in line with lower loan growth.
Hong Kong
The third quarter’s results incorporate an appreciation of
the Singapore dollar against the Hong Kong dollar of 3%
from the previous quarter and 6% from a year ago.
Net interest income decreased 4% from the previous
quarter as net interest margins declined 12 basis points to
1.56% due to higher deposit costs. Loans rose 3% in local
currency terms mainly from corporate borrowing. Deposits
also increased 3% as savings and demand deposits rose.
Non-interest income rose 18% from the previous quarter
from higher trading gains, fee income from credit cards and
trade finance, and gains from the sale of fixed assets. They
were partially offset by lower revenue from customer flows
for treasury products.
Expenses declined 41% as compensation for Constellation
note holders had been booked in the previous quarter.
Underlying expenses were slightly higher as staff and
technology costs rose.
Total allowances were 44% lower than the previous
quarter. General allowances fell in line with lower loan
growth.
13
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CUSTOMER LOANS
1/
($m)
30 Sept 2010
30 Jun 2010
31 Dec 2009
30 Sept 2009
150,534
149,148
133,420
130,863
General allowances
Net total
1,300
1,449
147,785
1,645
1,433
146,070
1,512
1,325
130,583
1,214
1,341
128,308
By business unit 2/
Consumer/ Private Banking
Institutional Banking
Others
Total (Gross)
49,108
100,214
1,212
150,534
48,386
100,427
335
149,148
44,162
88,503
755
133,420
41,690
88,563
610
130,863
By geography 3/
Singapore
Hong Kong
Rest of Greater China
South and South-east Asia
Rest of the world
Total (Gross)
72,997
36,541
11,322
13,677
15,997
150,534
70,698
36,982
11,455
13,653
16,360
149,148
61,713
32,999
11,211
11,726
15,771
133,420
61,291
31,851
10,437
11,969
15,315
130,863
17,814
21,194
38,030
18,404
20,282
37,082
16,239
18,433
33,120
15,053
14,798
13,335
16,242
17,722
30,956
12,245
13,714
19,868
10,652
14,209
150,534
13,294
20,202
10,480
14,606
149,148
12,277
16,710
10,873
12,433
133,420
13,026
16,939
10,559
13,174
130,863
64,908
29,029
35,879
31,789
536
31,253
35,755
2,906
32,849
18,082
2,140
15,942
150,534
60,852
26,731
34,121
33,073
575
32,498
36,355
3,530
32,825
18,868
2,586
16,282
149,148
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
Gross
Less:
Specific allowances
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)
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)
Notes:
1/ Includes customer loans classified as financial assets at fair value through profit or loss on the balance sheet
2/ The business segments have been reaggregated following a review. Historical comparatives have been restated to conform to the current year presentation.
3/ Loans by geography are classified according to where the borrower is incorporated. Historical comparatives have been restated to conform to the current year presentation.
Gross customer loans rose 1% from the previous
quarter to $150.5 billion. Excluding currency effects,
loan growth was 4%. There was broad-based regional
corporate loan growth as well as housing loan
drawdowns in Singapore. Gross loans were 15% higher
than a year ago, with the expansion spread across most
regions and across corporate and consumer borrowers.
14
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NON-PERFORMING ASSETS AND LOSS ALLOWANCE COVERAGE
By business unit
1/
2/
NPA
($m)
SP
($m)
GP
($m)
NPL
(% of loans)
(GP+SP)/NPA
(%)
(GP+SP)/
unsecured
NPA
(%)
377
163
490
0.8
173
268
2,794
1,215
959
2.8
78
100
3,171
1,378
1,449
2.1
89
117
112
77
122
-
177
211
222
112
249
-
163
174
3,505
1,567
1,820
-
97
124
396
168
482
0.8
164
263
3,035
1,570
951
3.0
83
102
3,431
1,738
1,433
2.3
92
117
101
80
116
-
194
239
192
120
260
-
198
216
3,724
1,938
1,809
-
101
126
513
195
440
1.2
124
236
3,363
1,410
885
3.8
68
86
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
635
249
406
1.5
103
205
2,784
1,039
935
3.1
71
98
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
30 Sept 2010
Consumer/ Private
Banking
Institutional Banking
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
30 Jun 2010
Consumer/ Private
Banking
Institutional Banking
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
31 Dec 2009
Consumer/ Private
Banking
Institutional Banking
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
30 Sept 2009
Consumer/ Private
Banking
Institutional Banking
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
Notes:
1/ Allowances for credit and other losses exclude one-time items
2/ The business segments have been reaggregated following a review. Historical comparatives have been restated to conform to the current year presentation.
15
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By geography
30 Sept 2010
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 Jun 2010
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 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
NPA
($m)
SP
($m)
GP
($m)
NPL
(% of loans)
(GP+SP)/NPA
(%)
(GP+SP)/
unsecured
NPA
(%)
635
377
270
195
226
190
611
367
123
0.9
1.0
2.4
127
157
116
311
222
154
146
92
191
1.1
195
200
1,743
675
157
10.9
48
54
3,171
1,378
1,449
2.1
89
117
112
77
122
-
177
211
222
112
249
-
163
174
3,505
1,567
1,820
-
97
124
648
442
316
203
253
190
588
371
125
0.9
1.2
2.8
122
141
100
258
210
140
138
80
191
1.0
197
203
1,887
1,012
158
11.5
62
67
3,431
1,738
1,433
2.3
92
117
101
80
116
-
194
239
192
120
260
-
198
216
3,724
1,938
1,809
-
101
126
731
567
352
213
327
213
546
330
121
1.2
1.7
3.1
104
116
95
244
173
143
157
82
174
1.3
163
186
2,069
770
154
13.1
45
49
3,876
1,605
1,325
2.9
76
100
160
106
92
-
124
164
183
97
255
-
192
209
4,219
1,808
1,672
-
83
108
773
650
376
208
375
198
564
318
113
1.3
2.0
3.6
100
107
83
249
157
129
174
72
195
1.5
153
181
1,446
435
151
9.4
41
49
3,419
1,288
1,341
2.6
77
113
208
131
342
-
227
282
196
102
218
-
163
177
3,823
1,521
1,901
-
90
128
16
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By industry
($m)
30 Sept 2010
30 Jun 2010
31 Dec 2009
30 Sept 2009
NPA
SP
NPA
SP
NPA
SP
NPA
SP
533
39
125
322
330
12
19
161
612
47
140
411
351
13
21
197
735
89
188
472
386
22
30
238
694
93
234
480
349
24
41
177
628
150
284
115
264
97
246
39
Financial institutions, investment &
holding companies
1,200
545
1,622
882
1,738
621
1,200
369
Professionals & private individuals
(except housing loans)
174
74
176
75
234
113
265
138
Manufacturing
Building and construction
Housing loans
General commerce
Transportation, storage &
communications
Others
150
87
139
84
156
98
207
151
3,171
112
1,378
77
3,431
101
1,738
80
3,876
160
1,605
106
3,419
208
1,288
131
222
112
192
120
183
97
196
102
Total non-performing assets
3,505
1,567
3,724
1,938
1,808
3,823
1,521
By loan classification
($m)
30 Sept 2010
Total non-performing loans
Debt securities
Contingent liabilities & others
Non-performing assets
Substandard
Doubtful
Loss
Total
Restructured assets
Substandard
Doubtful
Loss
Total
30 Jun 2010
4,219
31 Dec 2009
30 Sept 2009
NPA
SP
NPA
SP
NPA
SP
NPA
SP
2,013
993
499
3,505
342
723
502
1,567
1,798
1,390
536
3,724
249
1,153
536
1,938
2,155
1,431
633
4,219
195
977
636
1,808
2,476
830
517
3,823
356
648
517
1,521
422
218
30
670
55
119
31
205
385
116
35
536
40
94
36
170
389
90
54
533
51
73
54
178
440
68
44
552
62
54
44
160
By collateral type
($m)
30 Sept 2010
30 Jun 2010
NPA
NPA
NPA
NPA
2,726
2,972
3,233
2,683
Secured non-performing assets by collateral type
Properties
284
349
540
629
Shares and debentures
Fixed deposits
Others
112
37
346
116
45
242
124
22
300
149
13
349
3,505
3,724
4,219
3,823
Unsecured non-performing assets
Total
31 Dec 2009 30 Sept 2009
17
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By period overdue
($m)
30 Sept 2010
30 Jun 2010
31 Dec 2009
30 Sept 2009
NPA
NPA
NPA
NPA
Not overdue
180 days overdue
1,323
198
655
1,329
969
771
141
1,843
1,802
358
113
1,946
1,313
648
655
1,207
Total
3,505
3,724
4,219
3,823
Non-performing loans fell 8% from the previous quarter to
$3.17 billion or 2.1% of the loan as recoveries and writeoffs exceeded new NPLs. Thirty-eight percent of classified
non-performing assets were still current in
interest and principal. Allowance coverage amounted to
97% of non-performing assets and to 124% if collateral
was considered.
FUNDING SOURCES
($m)
Customer deposits 1/
Interbank liabilities 2/
Other borrowings and liabilities 2/
Shareholders’ funds
Total
30 Sept 2010
30 Jun 2010
31 Dec 2009
30 Sept 2009
185,211
19,720
48,081
26,424
279,436
183,929
21,152
45,553
25,616
276,250
183,432
9,320
40,519
25,373
258,644
180,185
9,138
44,973
25,174
259,470
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
18
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
30 Sept 2010
30 Jun 2010
31 Dec 2009
30 Sept 2009
105,672
16,473
74,068
14,431
700
23,159
12,427
6,902
3,666
164
28,699
15,969
3,244
7,815
1,671
27,681
21,725
2,286
2,197
1,473
185,211
66,594
86,500
28,109
4,008
105,209
17,921
72,073
14,392
823
23,555
13,281
6,942
3,252
80
26,104
13,185
3,193
7,053
2,673
29,061
22,636
1,981
2,499
1,945
183,929
67,023
84,189
27,196
5,521
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
Note:
1/ Includes customer deposits classified as financial liabilities at fair value through profit or loss on the balance sheet
Customer deposits rose 1% from the previous quarter to
$185.2 billion mainly because of an increase in US dollar
fixed deposits. Singapore dollar deposits were stable as an
increase in savings accounts was offset by lower fixed
deposits.
OTHER BORROWINGS & LIABILITIES
($m)
Subordinated term debts1/
Other debt securities in issue
Due within 1 year
Due after 1 year
Comprising:
2/
Secured
Unsecured
Others
Total
30 Sept 2010
30 Jun 2010
31 Dec 2009
30 Sept 2009
6,572
6,956
7,702
7,790
530
1,615
601
312
44
369
102
506
2,145
39,364
48,081
913
37,684
45,553
75
338
32,404
40,519
108
500
36,575
44,973
Notes:
1/ All subordinated term debts issued are unsecured
2/ These are mainly secured by properties and securities
19
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 October 2009 to 30 September 2010. The
Group’s trading book VaR methodology is based on Historical Simulation VaR.
($m)
1 October 2009 to 30 September 2010
Average
High
Low
As at 30 Sept 2010
Total
26
26
40
15
The charts below provide the range of VaR and the daily distribution of trading income in the trading portfolio for the
period from 1 October 2009 to 30 September 2010.
D BSH Grou p Va R for Tr a din g Book
60
No. of Days
50
40
30
20
10
> 39- 40
> 38- 39
> 37- 38
> 36- 37
> 35- 36
> 34- 35
> 33- 34
> 32- 33
> 31- 32
> 30- 31
> 29- 30
> 28- 29
> 27- 28
> 26- 27
> 25- 26
> 24- 25
> 23- 24
> 22- 23
> 21- 22
> 20- 21
> 19- 20
> 18- 19
> 17- 18
> 16- 17
> 15- 16
0
VaR ( S$ 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 Treasury & Markets Group Trading Income
(1 Oct 2009 to 30 Sep 2010)
45
40
35
25
20
15
10
Trading income (S$ million)
20
>34-36
>32-34
>30-32
>28-30
>26-28
>24-26
>22-24
>20-22
>18-20
>16-18
>14-16
>12-14
>10-12
>8-10
>6-8
>4-6
>2-4
>0-2
>(4)-(2)
>(6)-(4)
>(8)-(6)
>(10)-(8)
>(12)-(10)
>(14)-(12)
0
>(2)-0
5
>(16)-(14)
No. of days
30
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CAPITAL ADEQUACY
($m)
30 Sept 2010
30 Jun 2010
31 Dec 2009
30 Sept 2009
8,775
20,851
(5,073)
24,553
8,650
20,547
(5,044)
24,153
8,435
20,928
(6,098)
23,265
8,432
20,761
(6,053)
23,140
482
5,415
171
(143)
30,478
186,847
757
5,714
94
(139)
30,579
184,824
434
5,970
87
(128)
29,628
177,222
623
6,025
65
(124)
29,729
185,222
13.1
3.2
16.3
13.1
3.4
16.5
13.1
3.6
16.7
12.5
3.6
16.1
Tier 1
Share capital
Disclosed reserves and others
Less: Tier 1 Deductions
Eligible Tier 1
Tier 2
Loan allowances admitted as Tier 2
Subordinated debts
Revaluation surplus from equity securities
Less: Tier 2 Deductions
Total eligible capital
Risk-weighted assets
Capital adequacy ratio (%)
Tier 1 ratio
Tier 2 ratio
Total (Tier 1 & 2) ratio
The Group’s capital adequacy ratio moved from 16.5% in the previous quarter to 16.3% as a result of an increase in riskweighted assets.
UNREALISED VALUATION SURPLUS/(LOSSES)
($m)
Properties
Financial investments
Total
30 Sept 2010
30 Jun 2010
31 Dec 2009
30 Sept 2009
482
141
623
507
94
601
511
119
630
561
194
755
The amount of unrealised valuation surplus increased $22 million to $623 million in third quarter 2010 due to improved
valuations of financial investments. The decrease in the valuation surplus for properties is mainly due to the property
disposals during the quarter.
21
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Consolidated Income Statement
In $ millions
3rd Qtr
2010
3rd Qtr +/(-) 2nd Qtr +/(-)
2009
%
2010
%
9 Mths
2010
9 Mths +/(-)
2009
%
1,409
3
342
11
1,067
1
358 (5)
266 (12)
12 NM
98
26
14 >100
4,238
1,026
3,212
1,039
761
(30)
271
84
4,677 (9)
1,349 (24)
3,328 (3)
1,036
521
46
(143)
79
251
8
38 >100
Income
Interest income
Interest expense
Net interest income
Net fee and commission income
Net trading income
Net (loss)/income from financial instruments designated at fair value
Net income from financial investments
Other income
1,457
378
1,079
340
235
(12)
123
44
1,479
339
1,140
361
83
(27)
7
13
(1)
12
(5)
(6)
>100
56
>100
>100
Total income
1,809
1,577
15
1,815
-
5,337
5,031
6
Expenses
Employee benefits
Depreciation of properties and other fixed assets
Other expenses
Goodwill charges
Allowances for credit and other losses
360
43
323
195
322
64
249
265
12
(33)
30
(26)
362
46
309
1,018
204
(1)
(7)
5
NM
(4)
1,060
137
948
1,018
754
979
147
778
1,168
8
(7)
22
NM
(35)
Total expenses
921
900
2
1,939
(53)
3,917
3,072
28
Profit/(Loss)
Share of profits of associates
Profit/(Loss) before tax
888
31
919
677
27
704
31
15
31
(124)
25
(99)
NM
24
NM
1,420
78
1,498
1,959
60
2,019
(28)
30
(26)
Income tax expense
Net profit/(loss)
146
773
113
591
29
31
148
(247)
(1)
NM
383
1,115
332
1,687
15
(34)
722
51
773
563
28
591
28
82
31
(300)
53
(247)
NM
(4)
NM
954
161
1,115
1,548
139
1,687
(38)
16
(34)
+/(-)
%
9 Mths
2010
NM
1,115
1,687
(34)
Attributable to:
Shareholders
Minority interests
Unaudited Consolidated Statement of Comprehensive Income
In $ millions
Net profit/(loss)
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 on sale
Tax on items taken directly to or transferred from equity
Other comprehensive income, net of tax
Total comprehensive income
Attributable to:
Shareholders
Minority interests
3rd Qtr 3rd Qtr
2010
2009
773
591
+/(-) 2nd Qtr
%
2010
31
(247)
9 Mths +/(-)
2009
%
(109)
5
(18) (>100)
1 >100
(12) (>100)
7
(29)
(90)
9
35
16
NM
(44)
445
(102)
(31)
208
540
(18)
(29) (>100)
(55)
44
439
(53)
227
96
(59)
(73)
(1) (>100)
162
28
902
(138)
(54)
629
900
(281)
(85)
585
51
36
8
981
1,030
(5)
(85)
NM
1,744
2,272
(23)
1,010
(29)
981
1,029
1
1,030
(2)
NM
(5)
(135)
50
(85)
NM
NM
NM
1,670
74
1,744
2,126
146
2,272
(21)
(49)
(23)
22
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Balance Sheets
In $ millions
30 Sept
2010
GROUP
30 Jun
31 Dec
2010
2009 1/
30 Sept
2009
30 Sept
2010
COMPANY
30 Jun
31 Dec
2010
2009 1/
30 Sept
2009
ASSETS
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
21,782
12,134
23,106
11,549
18,949
147,139
26,275
1,657
22,571
15,364
19,237
11,660
17,558
145,403
27,420
2,076
22,515
15,960
22,203
11,257
16,015
129,973
25,731
784
12,703
15,072
31,524
12,283
17,761
127,703
25,884
876
9,298
9,726
9,698
9,993
795
4,802
1,027
388
103
9,730
694
4,802
1,066
407
105
7,887
672
5,847
1,134
398
144
6,011
653
5,847
1,179
377
129
7,479
63
65
93
98
TOTAL ASSETS
279,436
276,250
258,644
259,470
9,361
9,791
9,791
10,091
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
19,616
178,815
11,372
18,935
790
969
55
9,700
2,145
6,572
21,066
178,540
10,919
17,443
744
873
53
9,015
913
6,956
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
227
451
5
4
TOTAL LIABILITIES
248,969
246,522
229,145
230,128
227
451
5
4
30,467
29,728
29,499
29,342
9,134
9,340
9,786
10,087
Share capital
Treasury shares
Other reserves
Revenue reserves
8,775
(84)
7,595
10,138
8,650
(86)
7,300
9,752
8,435
(114)
6,879
10,173
8,433
(120)
6,863
9,998
8,775
8,650
8,435
71
288
64
626
71
1,280
8,433
52
1,602
SHAREHOLDERS’ FUNDS
26,424
25,616
25,373
25,174
9,134
9,340
9,786
10,087
Minority interests
4,043
4,112
4,126
4,168
TOTAL EQUITY
30,467
29,728
29,499
29,342
9,134
9,340
9,786
10,087
15,616
96,431
1,484,518
16,389
89,993
1,541,424
15,711
82,496
1,396,855
14,997
81,853
1,415,223
11.18
10.97
10.88
10.68
10.85
10.65
10.76
10.57
3.85
3.82
3.98
3.92
4.18
4.11
4.31
4.23
LIABILITIES
NET ASSETS
EQUITY
OFF BALANCE SHEET ITEMS
Contingent liabilities
Commitments
Financial derivatives
OTHER INFORMATION
Net book value per ordinary share ($)
(i) Basic
(ii) Diluted
Notes:
1/ Audited
2/ Includes customer loans, interbank assets, other government securities and treasury bills, corporate debt securities and equity securities
3/ Includes customer deposits, interbank liabilities, other debt securities in issue and other financial liabilities
23
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Consolidated Statement of Changes in Equity
GROUP
In $ millions
Balance at 1 January 2010
Exercise of share options
Reclassification of reserves upon exercise of
share options
Ordinary
shares
8,188
Convertible
preference
shares
Treasury
shares
Other
reserves
Revenue
reserves
Total
Minority
interests
Total equity
247
(114)
6,879
10,173
25,373
4,126
29,499
11
2
11
11
-
-
(2)
Issuance of new shares pursuant to Scrip
Dividend Scheme
206
206
206
Shares distributable pursuant to Scrip Dividend
Scheme
121
121
121
32
32
32
(30)
-
Cost of share-based payments
Draw-down of reserves upon vesting of
3