financial performance 3q11
DBS Group Holdings Ltd
Incorporated in the Republic of Singapore
Company Registration Number: 199901152M
To: Shareholders
The Board of Directors of DBS Group Holdings Ltd (“DBSH”) reports the following:
Unaudited Financial Results for the Third Quarter Ended 30 September 2011
Details of the unaudited financial results are in the accompanying Performance Summary.
Dividends
For the third quarter of 2011, no dividend has been declared for DBSH non-voting convertible
preference shares (“CPS”), DBSH non-voting redeemable CPS and DBSH ordinary shares.
By order of the Board
Linda Hoon
Group Secretary
1st November 2011
Singapore
More information on the above announcement is available at www.dbs.com/investor
Performance Summary
Unaudited Financial Results
For the Third Quarter ended
30 September 2011
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
Interested Person Transactions
Adoption of New or Revised FRS and INT FRS
Subsequent Event
Confirmation by the Board
Page
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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 2010, with the exception of the adoption of new or revised FRS and
Interpretations to FRS (“INT FRS”).
On 1 January 2011, the Group adopted the following new or revised FRS and INT FRS that are issued by the Accounting
Standards Council, and are relevant for the Group:
•
•
Revised FRS 24 Related Party Disclosures
Improvements to FRSs (2010)
Refer to page 27 for more information.
3rd Qtr
2011
3rd Qtr
2010
%
chg
2nd Qtr
2011
%
chg
9 Mths
2011
9 Mths
2010
%
chg
1,214
397
357
1,968
847
1,121
231
1,079
340
390
1,809
726
1,083
195
13
17
(8)
9
17
4
18
1,199
387
252
1,838
798
1,040
137
1
3
42
7
6
8
69
3,535
1,200
980
5,715
2,418
3,297
493
3,212
1,039
1,086
5,337
2,145
3,192
754
10
15
(10)
7
13
3
(35)
927
762
919
722
1
6
934
735
(1)
4
2,896
2,304
2,516
1,972
15
17
-
-
-
-
-
-
(1,018)
NM
Net profit including goodwill charges
762
722
6
735
4
2,304
954
>100
Selected balance sheet items ($m)
1/
Customer loans
2/
Interbank assets
Total assets
185,630
31,009
338,641
147,785
25,820
279,436
26
20
21
168,706
24,577
309,492
10
26
9
185,630
31,009
338,641
147,785
25,820
279,436
26
20
21
Customer deposits 3/
Total liabilities
Shareholders’ funds
219,714
306,035
28,281
185,211
248,969
26,424
19
23
7
210,536
277,208
28,014
4
10
1
219,714
306,035
28,281
185,211
248,969
26,424
19
23
7
1.73
38.3
43.0
0.93
10.77
84.5
1.3
1.80
40.4
40.1
1.04
11.06
79.8
2.1
1.80
34.8
43.4
0.98
10.62
80.1
1.5
1.78
38.1
42.3
0.99
11.28
84.5
1.3
1.86
39.8
40.2
0.98
10.18
79.8
2.1
9
33
7
8
49
10.7
12.6
15.5
11.2
13.1
16.3
11.5
13.5
16.5
10.7
12.6
15.5
11.2
13.1
16.3
Selected income statement items ($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
Key financial ratios (%) (excluding
4/
goodwill charges)
Net interest margin
Non-interest/total income
Cost/income ratio
Return on assets
Return on equity 5/
Loan/deposit ratio
NPL ratio
Specific allowances (loans)/average loans
(bp)
Core Tier 1 capital adequacy ratio
Tier 1 capital adequacy ratio
Total capital adequacy ratio
2
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
3rd Qtr
2011
3rd Qtr
2010
2nd Qtr
2011
9 Mths
2011
9 Mths
2010
1.28
1.25
1.26
1.32
1.14
1.28
11.77
1.25
11.18
1.26
11.69
1.32
11.77
0.69
11.18
1.24
1.20
1.21
1.28
1.10
1.24
11.54
1.20
10.97
1.21
11.47
1.28
11.54
0.67
10.97
Per share data ($)
Per basic share
– earnings excluding goodwill charges
– earnings
– net book value 5/
Per diluted share
– earnings excluding goodwill charges
– earnings
5/
– net book value
Notes:
1/ Includes customer loans classified as financial assets at fair value through profit or loss on the balance sheet
2/ Includes interbank assets classified as financial assets at fair value through profit or loss on the balance sheet
3/ Includes customer deposits classified as financial liabilities at fair value through profit or loss on the balance sheet
4/ Return on assets, return on equity, specific allowances (loan)/average loan and per share data for the quarters are computed on an annualised basis
5/ Non-controlling interests are not included as equity in the computation of net book value and return on equity
NM Not Meaningful
Third-quarter net profit rose 6% from a year ago and 4%
from the previous quarter to $762 million. Business
volume and customer income trends were sustained as
total income reached a new high.
Net interest income rose 1% from the previous quarter to a
record $1.21 billion. Loans rose 10% from broad-based
corporate borrowing across the region. Net interest margin
fell seven basis points to 1.73% as interest rates in
Singapore remained soft and funding costs in Hong Kong
were higher.
Non-interest income grew 18% from the previous quarter
to $754 million. Net fee income rose 3% to $397 million
from higher trade and remittances and loan activities.
Income from customer flows for treasury products also
increased. There were also higher gains from net income
on financial investments. A gain of $47 million from the
transaction to combine DBS Asset Management and
Nikko Asset Management was also recognised.
Expenses of $847 million were 6% higher than the
previous quarter. The cost-income ratio was unchanged at
43%.
The non-performing loan rate improved from 1.5% in the
previous quarter to 1.3% as non-performing assets fell
4%. Total allowances rose 69% to $231 million as
higher general allowances were made. Allowance
coverage rose to 124% and to 158% if collateral was
considered.
For the first nine months, net profit rose 17% to $2.30
billion from higher net interest income and customerdriven non-interest income, as well as from lower
allowances as asset quality improved.
DBS remained well capitalised with a total capital
adequacy ratio of 15.5%, Tier 1 of 12.6% and core Tier
1 of 10.7%. Return on equity rose slightly from the
previous quarter to 10.8%. For the nine months, it
improved from 10.2% a year ago to 11.3%.
3
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET INTEREST INCOME
Average balance
sheet
3rd Qtr 2011
Average
Average
rate
balance Interest
(%)
($m)
($m)
3rd Qtr 2010
Average
Average
rate
balance Interest
(%)
($m)
($m)
2nd Qtr 2011
Average
Average
rate
balance Interest
(%)
($m)
($m)
Interest-bearing
assets
Customer loans
Interbank assets
Securities
Total
173,409
51,543
53,431
278,383
1,175
142
359
1,676
2.69
1.09
2.67
2.39
145,902
40,880
51,010
237,792
1,009
97
351
1,457
2.74
0.95
2.73
2.43
161,278
53,737
51,333
266,348
1,080
127
373
1,580
2.68
0.95
2.92
2.38
Interest-bearing
liabilities
Customer deposits
Other borrowings
Total
213,303
43,743
257,046
342
120
462
0.64
1.08
0.71
184,815
33,766
218,581
269
109
378
0.58
1.28
0.69
205,628
39,618
245,246
281
100
381
0.55
1.02
0.62
1,214
1.73
1,079
1.80
1,199
1.80
Net interest
1/
income/margin
9 Mths 2011
Average balance
sheet
Average
balance
($m)
9 Mths 2010
Average Average
Interest
rate balance
($m)
(%)
($m)
Interest
($m)
Average
rate
(%)
Interest-bearing
assets
Customer loans
Interbank assets
Securities
Total
163,031
51,894
51,100
266,025
3,273
392
1,076
4,741
2.68
1.01
2.82
2.38
138,696
41,862
50,737
231,295
2,927
253
1,058
4,238
2.82
0.81
2.79
2.45
Interest-bearing
liabilities
Customer deposits
Other borrowings
Total
204,727
40,052
244,779
886
320
1,206
0.58
1.07
0.66
182,950
29,863
212,813
725
301
1,026
0.53
1.35
0.64
3,535
1.78
3,212
1.86
Net interest
income/margin 1/
Note:
1/ Net interest margin is net interest income expressed as a percentage of average interest-earning assets
Net interest income rose 1% from the previous quarter to
$1.21 billion.
The impact of the margin decline was offset by higher
customer loan volumes.
Net interest margin fell seven basis points from the
previous quarter to 1.73%. Securities yields were lower as
interest rates remained soft, while deposit costs in Hong
Kong were higher.
Net interest income for the nine months was 10% higher
than a year ago. Higher customer loans volumes more than
offset the impact of an eight basis point decline in net
interest margin to 1.78%.
4
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
3rd Qtr 2011 versus 3rd Qtr 2010
Volume and rate analysis ($m)
Increase/(decrease) due to change in
3rd Qtr 2011 versus 2nd Qtr 2011
Volume
Rate
Net
change
Volume
Rate
Net
change
Customer loans
Interbank assets
Securities
190
26
17
(23)
18
(9)
167
44
8
81
(5)
2
18
83
13
Total
233
(14)
219
15
91
(34)
(14)
(19)
77
42
27
69
31
(16)
15
73
11
84
10
13
23
47
5
52
57
18
75
164
(29)
135
68
(66)
2
Interest income
Interest expense
Customer deposits
Other borrowings
Total
Net impact on interest income
Due to change in number of days
Net Interest Income
-
13
135
15
9 Mths 2011 versus 9 Mths 2010
Volume and rate analysis ($m)
Increase/(decrease) due to change in
Volume
Rate
Net
change
Customer loans
Interbank assets
Securities
Total
514
61
8
583
(168)
78
10
(80)
346
139
18
503
Interest expense
Customer deposits
Other borrowings
Total
86
72
158
75
(53)
22
161
19
180
Net impact on interest income
425
(102)
323
Interest income
Due to change in number of days
Net Interest Income
323
5
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET FEE AND COMMISSION INCOME
($m)
Stockbroking
Investment banking
Trade and remittances
Loan related
Guarantees
Deposit related
Credit card
Fund management
Wealth management
Others
Total
3rd Qtr
2011
3rd Qtr
2010
% chg
2nd Qtr
2011
% chg
9 Mths
2011
9 Mths
2010
% chg
38
38
81
103
18
23
35
5
42
14
397
45
38
55
80
14
20
37
5
31
15
340
(16)
47
29
29
15
(5)
35
(7)
17
34
44
66
95
16
22
37
6
52
15
387
12
(14)
23
8
13
5
(5)
(17)
(19)
(7)
3
115
155
210
291
54
65
106
16
145
43
1,200
129
94
171
281
43
62
109
16
92
42
1,039
(11)
65
23
4
26
5
(3)
58
2
15
Net fee and commission income increased 3% from the
previous quarter to $397 million. Higher income from trade
and remittances and loan activities was partially offset by
lower contributions from wealth management and
investment banking.
Net fee and commission income for the nine months rose
15% from higher customer flows in a wide range of
activities, including trade and remittances, wealth
management, loan-related and investment banking.
OTHER NON-INTEREST INCOME
($m)
3rd Qtr
2011
3rd Qtr
2010
% chg
2nd Qtr
2011
% chg
9 Mths
2011
9 Mths
2010
% chg
Net trading income
Net income/(loss) from financial
instruments designated at fair value
Net income on financial
investments
Net gain on fixed assets
Others (include rental income)
138
235
(41)
146
(5)
553
761
(27)
5
(12)
NM
-
NM
(6)
(30)
80
152
123
24
82
85
318
271
17
1
61
34
10
(97)
>100
9
15
(89)
>100
16
99
51
33
(69)
>100
Total
357
390
(8)
252
42
980
1,086
(10)
Note:
NM Not Meaningful
Net trading income (including net income from financial
instruments designated at fair value) was little changed
from the previous quarter at $143 million. Income from
customer flows was higher but the improvement was
offset by lower trading gains. For the nine months, net
trading income fell 25% to $547 million. An increase in
customer flows was more than offset by lower trading
gains.
Net income on financial investments rose from $82
million in the previous quarter to $152 million. For the
nine months, net income on financial investments was
17% higher at $318 million.
A $47 million gain from the transaction to combine DBS
Asset Management with Nikko Asset Management was
also recognised in “Others” in the current quarter.
6
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
EXPENSES
($m)
3rd Qtr
2011
3rd Qtr
2010
Staff
Occupancy
Computerisation
Revenue-related
Others
Total
Staff headcount at period-end
444
75
163
51
114
847
17,550
360
67
145
33
121
726
15,206
23
12
12
55
(6)
17
15
45
1
43
1
2
2
Included in the above table were:
Depreciation of properties and other fixed
assets
Directors’ fees
Audit fees payable
% chg 2nd Qtr
2011
% chg
9 Mths
2011
9 Mths % chg
2010
423
72
147
39
117
798
17,274
5
4
11
31
(3)
6
2
1,272
217
462
128
339
2,418
17,550
1,060
202
405
99
379
2,145
15,206
20
7
14
29
(11)
13
15
5
-
44
1
2
-
135
3
137
2
(1)
50
-
2
-
5
6
(17)
For the nine months, costs rose 13% to $2.42 billion as
headcount was increased and investments were made to
support higher business volumes and build capacity for
future growth. The cost-income ratio rose from 40% a year
ago to 42%.
.
Expenses rose 6% from the previous quarter to $847
million as staff, computerisation and revenue-related costs
increased. The cost-income ratio was unchanged at 43%.
ALLOWANCES FOR CREDIT AND OTHER LOSSES
($m)
3rd Qtr
2011
3rd Qtr
2010
General allowances (GP)
187
39
>100
Specific allowances (SP) for loans1/
Singapore
Hong Kong
Rest of Greater China
South and South-east Asia
Rest of the World
41
(13)
13
1
12
28
125
(1)
8
17
15
86
3
231
Specific allowances (SP) for securities,
properties and other assets
Total
% chg 2nd Qtr
2011
% chg
9 Mths
2011
9 Mths % chg
2010
99
89
347
188
85
(67)
(>100)
63
(94)
(20)
(67)
27
(10)
8
(6)
4
31
52
(30)
63
NM
>100
(10)
102
(21)
24
(13)
18
94
517
10
11
27
27
442
(80)
NM
>100
NM
(33)
(79)
31
(90)
11
(73)
44
49
(10)
195
18
137
69
493
754
(35)
Notes:
1/ Specific allowances for loans are classified according to where the borrower is incorporated.
NM Not Meaningful
General allowances rose 89% from the previous quarter
to $187 million. With asset quality remaining healthy,
specific allowances for loans amounted to $41 million or
nine basis points of loans.
For the nine months, total allowances fell 35% to $493
million as specific allowances for loans fell 80% to $102
million in line with improvements in asset quality. General
allowances of $347 million were 85% higher.
7
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY BUSINESS SEGMENTS
($m)
Consumer/
Private
Banking
Institutional
Banking
Treasury
Others
Total
Selected income items
3rd Qtr 2011
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
350
196
546
391
14
141
589
469
1,058
331
140
6
593
240
66
306
106
(1)
201
35
23
58
19
78
31
(8)
1,214
754
1,968
847
231
37
927
2nd Qtr 2011
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
375
187
562
377
26
159
552
435
987
318
72
7
604
247
(14)
233
103
(4)
134
25
31
56
43
24
37
1,199
639
1,838
798
137
31
934
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
338
164
502
357
15
130
505
399
904
282
149
6
479
210
125
335
96
(3)
242
26
42
68
(9)
34
25
68
1,079
730
1,809
726
195
31
919
9 Mths 2011
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
1,066
555
1,621
1,133
56
432
1,661
1,374
3,035
945
268
20
1,842
711
132
843
303
2
538
97
119
216
37
167
72
84
3,535
2,180
5,715
2,418
493
92
2,896
8
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
Consumer/
Private
Banking
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
Selected balance sheet and other
items 2/
30 Sept 2011
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 3rd Qtr 2011
Depreciation for 3rd Qtr 2011
30 Jun 2011
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 2nd Qtr 2011
Depreciation for 2nd Qtr 2011
31 Dec 2010
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 4th Qtr 2010
Depreciation for 4th Qtr 2010
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
Institutional
Banking
Treasury
Others
Total
1,050
489
1,539
1,070
50
419
1,482
1,146
2,628
788
652
20
1,208
607
459
1,066
267
2
797
73
31
104
20
50
58
92
3,212
2,125
5,337
2,145
754
78
2,516
54,940
157,624
109,985
11,290
126,530
6
14
98,972
4
6
75,961
5
3
4,572
24
22
333,839
4,802
338,641
306,035
39
45
52,591
135,095
102,305
14,699
122,424
6
10
88,004
12
5
59,869
7
2
6,911
11
27
51,328
118,572
98,735
10,273
117,529
22
11
80,559
16
6
42,584
8
2
9,936
44
37
49,706
115,390
99,611
9,927
113,944
9
11
74,842
2
4
50,908
3
9,275
22
25
304,690
4,802
309,492
277,208
36
44
278,908
4,802
283,710
250,608
90
56
274,634
4,802
279,436
248,969
33
43
Notes:
1/ Allowances for credit and other losses and profits exclude goodwill charges
2/ Refer to sections on Customer Loans and Non-Performing Assets and Loss Allowance Coverage for more information on business segments
The business segment results are prepared based on
the Group’s internal management reporting which
reflects the organisation management 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.
9
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
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, profit before tax fell
11% to $141 million. Net interest income declined 7% to
$350 million as higher loan volumes were offset by lower
net interest margin. Non-interest income rose 5% to $196
million. Expenses were 4% higher at $391 million as staff
and non-staff costs rose. Total allowances halved to $14
million as both specific and general allowances fell.
Institutional Banking
Institutional Banking provides financial services and
products to institutional clients including non-bank
financial institutions, government linked companies,
large corporates and small and medium-sized
businesses. The business focus is to broaden and
deepen the financial relationship with clients. The
products and services available to customers include
long and short term credit facilities ranging from
specialised lending such as asset financing, project
financing and real estate financing to overdraft, trade,
receivables financing and structured trade; cash
management and deposit; treasury and markets;
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 and private
equity. 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.
Compared to the previous quarter, profit before tax fell
marginally to $593 million. Net interest income rose 7% to
$589 million as higher loan volumes were partially offset
by lower net interest margin. Non-interest income grew 8%
to $469 million as trade and remittance fees and income
from customer driven treasury products increased.
Expenses rose 4% to $331 million. Total allowances
doubled to $140 million mainly due to higher general
allowances.
Treasury
Treasury provides treasury services to corporations,
institutional and private investors, financial institutions and
other market participants. It is primarily involved in sales,
structuring, market making and trading across a broad
range of financial products including foreign exchange,
interest rate, debt, 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
facilitating the execution of Group’s asset and liability
interest rate positions and management of the investment
of the Group’s excess liquidity and shareholders’ funds.
Compared to the previous quarter, Treasury’s profit before
tax rose 50% to $201 million as total income grew 31% to
$306 million. Expenses and allowances were little
changed.
Others
Others encompasses a range of activities from corporate
decisions and income and expenses not attributed to other
business segments.
10
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY GEOGRAPHY
1/
($m)
S’pore
Hong
Kong
Rest of
Greater
China
South
and
Southeast Asia
Rest of
the World
Total
Selected income items
3rd Qtr 2011
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
712
549
1,261
517
139
7
612
54
506
189
136
325
153
43
129
21
108
158
3
161
101
7
3
56
10
46
98
63
161
60
19
27
109
21
88
57
3
60
16
23
21
7
14
1,214
754
1,968
847
231
37
927
113
762
2nd Qtr 2011
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
728
394
1,122
476
61
5
590
68
459
199
177
376
154
54
168
25
143
124
25
149
94
4
5
56
13
43
91
33
124
58
10
21
77
15
62
57
10
67
16
8
43
15
28
1,199
639
1,838
798
137
31
934
136
735
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
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
9 Mths 2011
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
2,140
1,409
3,549
1,458
313
15
1,793
183
1,407
578
513
1,091
462
106
523
82
441
386
65
451
279
9
13
176
34
142
263
153
416
172
31
64
277
52
225
168
40
208
47
34
127
38
89
3,535
2,180
5,715
2,418
493
92
2,896
389
2,304
11
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
S’pore
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
Hong
Kong
Rest of
Greater
China
South
and
Southeast Asia
Rest of
the World
Total
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
Selected balance sheet items
30 Sept 2011
Total assets before goodwill
Goodwill on consolidation
Total assets
3/
Non-current assets
Gross customer loans
201,919
4,802
206,721
1,724
110,352
71,780
71,780
380
45,376
31,061
31,061
133
15,743
16,411
16,411
32
10,462
12,668
12,668
2
6,603
333,839
4,802
338,641
2,271
188,536
30 Jun 2011
Total assets before goodwill
Goodwill on consolidation
Total assets
3/
Non-current assets
Gross customer loans
191,570
4,802
196,372
1,639
101,450
59,749
59,749
364
40,095
25,727
25,727
138
14,379
15,152
15,152
34
9,586
12,492
12,492
2
5,947
304,690
4,802
309,492
2,177
171,457
31 Dec 2010
Total assets before goodwill
Goodwill on consolidation
Total assets
3/
Non-current assets
Gross customer loans
179,813
4,802
184,615
1,623
91,128
52,489
52,489
406
36,224
21,033
21,033
129
12,208
13,710
13,710
36
9,121
11,863
11,863
2
6,041
278,908
4,802
283,710
2,196
154,722
30 Sept 2010
Total assets before goodwill
Goodwill on consolidation
Total assets
Non-current assets 3/
Gross customer loans
176,623
4,802
181,425
1,587
86,521
53,149
53,149
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
Notes:
1/ The geographical segment analysis is based on the location where transactions and assets are booked
2/ Allowances for credit and other losses and profits exclude goodwill charges
3/ 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.
Singapore
Non-interest income declined 23% from the previous
quarter to $136 million as trading gains and sales of
treasury products were lower.
Net profit rose 10% from the previous quarter to $506
million. Higher non-interest income was partially offset by
an increase in general allowances.
Expenses were stable at $153 million. Total allowances fell
20% to $43 million as both specific and general allowances
were lower.
Net interest income fell 2% to $712 million as higher loan
volumes was offset by lower net interest margin as asset
yields declined. Non-interest income rose 39% to $549
million from higher income from financial investments and
a gain from the transaction to combine DBS Asset
Management and Nikko Asset Management.
Other regions
Expenses rose 9% to $517 million as staff and non-staff
costs increased. Allowances more than doubled to $139
million from higher general allowances. Specific
allowances declined.
Hong Kong
The third quarter’s results incorporate an appreciation of
the Singapore dollar against the Hong Kong dollar of 8%
from a year ago. The average exchange rate between both
currencies was stable from the previous quarter.
Net profit fell 24% from the previous quarter to $108 million
as a decline in net interest margin and trading income was
partially offset by higher loan volumes and lower
allowances.
Net interest income decreased 5% from the previous
quarter to $189 million. Net interest margin fell 27 basis
points to 1.25% due to higher deposit costs. This was
partially offset by a 7% increase in loans in constant
currency terms, which was due mainly to trade finance.
Deposits increased 9% in constant currency terms from
higher fixed deposit volumes.
Net profit for Rest of Greater China increased 7% from the
previous quarter to $46 million, driven by a 27% increase in
net interest income to $158 million from higher net interest
margin and loan growth. Non-interest income fell from $25
million to $3 million from lower trading income. Expenses
rose 7% to $101 million from higher wage and revenuerelated costs. Allowances were higher as there had been
higher specific allowance write-backs in the previous
quarter.
Net profit for South and South-east Asia grew 42% from the
previous quarter to $88 million as non-interest income
increased 91% to $63 million. Fees from trade and
remittances and loan activities were higher. Trading income
also increased. Expenses were little changed at $60 million.
Total allowances rose to $19 million as both specific and
general allowances increased.
Net profit for Rest of the World halved from the previous
quarter to $14 million. Net interest income was stable at
$57 million. Non-interest income declined from $10 million
to $3 million as trading income fell. Expenses were
unchanged at $16 million. Total allowances increased to
$23 million as both general allowances and specific
allowances were higher.
.
13
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CUSTOMER LOANS
1/
($m)
30 Sept 2011
30 Jun 2011
31 Dec 2010
30 Sept 2010
188,536
171,457
154,722
150,534
General allowances
Net total
1,099
1,807
185,630
1,123
1,628
168,706
1,152
1,476
152,094
1,300
1,449
147,785
By business unit
Consumer/ Private Banking
Institutional Banking
Others
Total (Gross)
53,487
132,932
2,117
188,536
52,982
116,714
1,761
171,457
50,256
103,219
1,247
154,722
49,108
100,214
1,212
150,534
By geography 2/
Singapore
Hong Kong
Rest of Greater China
South and South-east Asia
Rest of the World
Total (Gross)
87,538
40,689
23,620
18,131
18,558
188,536
83,466
36,933
19,121
15,918
16,019
171,457
74,595
36,688
13,495
13,976
15,968
154,722
72,997
36,541
11,322
13,677
15,997
150,534
23,719
26,798
40,749
22,508
24,555
39,368
19,217
21,385
38,676
17,814
21,194
38,030
31,217
23,545
16,732
15,053
16,961
19,222
11,926
17,944
188,536
15,938
16,104
12,526
16,913
171,457
14,378
18,517
11,142
14,675
154,722
13,714
19,868
10,652
14,209
150,534
74,831
31,392
58,027
24,286
188,536
72,334
29,376
49,309
20,438
171,457
67,439
30,478
38,094
18,711
154,722
64,908
31,789
35,755
18,082
150,534
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
Singapore dollar
Hong Kong dollar
US dollar
Others
Total (Gross)
Notes:
1/ Includes customer loans classified as financial assets at fair value through profit or loss on the balance sheet
2/ Loans by geography are classified according to where the borrower is incorporated.
Gross customer loans rose 10% from the previous
quarter to $188.5 billion. Excluding currency effects,
loan growth was 7%. The growth was led by broadbased corporate borrowing across industries and
regions. Slightly less than half of loan growth during the
quarter was for trade finance.
Gross loans were 25% higher than a year ago, with the
expansion spread across most regions and across
corporate and consumer borrowers. Half of the increase
from a year ago was for trade finance.
14
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NON-PERFORMING ASSETS AND LOSS ALLOWANCE COVERAGE
By business unit
NPA
($m)
SP
($m)
GP
($m)
NPL
(% of loans)
(GP+SP)/NPA
(%)
(GP+SP)/
unsecured
NPA
(%)
293
84
534
0.5
211
372
2,218
1,059
1,273
1.7
105
124
2,511
1,143
1,807
1.3
117
145
10
3
113
-
1,160
2,320
259
103
288
-
151
281
2,780
1,249
2,208
-
124
158
302
94
529
0.6
206
356
2,295
1,069
1,099
2.0
94
120
2,597
1,163
1,628
1.5
107
141
10
3
103
-
1,060
2,120
276
109
260
-
134
167
2,883
1,275
1,991
-
113
148
317
107
502
0.6
192
323
2,561
1,105
974
2.5
81
102
2,878
1,212
1,476
1.9
93
121
28
6
124
-
464
1,300
307
127
252
-
123
134
3,213
1,345
1,852
-
100
127
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
30 Sept 2011
Consumer/ Private
Banking
Institutional Banking
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
30 Jun 2011
Consumer/ Private
Banking
Institutional Banking
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
31 Dec 2010
Consumer/ Private
Banking
Institutional Banking
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
30 Sept 2010
Consumer/ Private
Banking
Institutional Banking
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
15
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By geography
30 Sept 2011
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 2011
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 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 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
NPA
($m)
SP
($m)
GP
($m)
NPL
(% of loans)
(GP+SP)/NPA
(%)
(GP+SP)/
unsecured
NPA
(%)
405
324
234
141
173
129
722
409
253
0.5
0.8
1.0
213
180
163
378
271
245
173
107
238
1.0
199
261
1,375
593
185
7.4
57
59
2,511
1,143
1,807
1.3
117
145
10
3
113
-
1,160
2,320
259
103
288
-
151
281
2,780
1,249
2,208
-
124
158
512
300
233
189
169
151
683
372
201
0.6
0.8
1.2
170
180
151
339
259
219
174
98
212
1.1
178
235
1,378
556
160
8.6
52
58
2,597
1,163
1,628
1.5
107
141
10
3
103
-
1,060
2,120
276
109
260
-
134
167
2,883
1,275
1,991
-
113
148
594
359
250
196
212
166
613
369
145
0.8
1.0
1.9
136
162
124
300
230
176
164
107
189
1.2
180
185
1,511
531
160
9.5
46
50
2,878
1,212
1,476
1.9
93
121
28
6
124
-
464
1,300
307
127
252
-
123
134
3,213
1,345
1,852
-
100
127
635
377
270
195
226
190
611
367
123
0.9
1.0
2.4
127
157
116
311
222
154
146
92
191
1.1
195
200
1,743
675
157
10.9
48
54
3,171
1,378
1,449
2.1
89
117
112
77
122
-
177
211
222
112
249
-
163
174
3,505
1,567
1,820
-
97
124
16
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By industry
($m)
30 Sept 2011
30 Jun 2011
31 Dec 2010
30 Sept 2010
NPA
SP
NPA
SP
NPA
SP
NPA
SP
409
83
103
280
257
33
13
123
415
84
107
252
280
32
14
105
502
90
118
248
325
25
17
107
533
39
125
322
330
12
19
161
434
205
575
229
646
183
628
150
Financial institutions, investment &
holding companies
927
387
867
366
960
399
1,200
545
Professionals & private individuals
(except housing loans)
169
59
180
69
173
74
174
74
Manufacturing
Building and construction
Housing loans
General commerce
Transportation, storage &
communications
Others
106
66
117
68
141
82
150
87
2,511
10
1,143
3
2,597
10
1,163
3
2,878
28
1,212
6
3,171
112
1,378
77
259
103
276
109
307
127
222
112
Total non-performing assets
2,780
1,249
2,883
1,275
3,213
1,345
3,505
1,567
By loan classification
($m)
30 Sept 2011
Total non-performing loans
Debt securities
Contingent liabilities & others
Non-performing assets
Substandard
Doubtful
Loss
Total
Restructured assets
Substandard
Doubtful
Loss
Total
30 Jun 2011
31 Dec 2010
30 Sept 2010
NPA
SP
NPA
SP
NPA
SP
NPA
SP
1,516
890
374
2,780
281
594
374
1,249
1,907
596
380
2,883
431
464
380
1,275
2,086
737
390
3,213
374
580
391
1,345
2,013
993
499
3,505
342
723
502
1,567
862
103
22
987
199
85
22
306
951
122
28
1,101
209
105
28
342
443
145
28
616
47
128
28
203
422
218
30
670
55
120
30
205
By collateral type
($m)
Unsecured non-performing assets
Secured non-performing assets by collateral type
Properties
30 Sept 2011
30 Jun 2011
31 Dec 2010 30 Sept 2010
NPA
NPA
NPA
NPA
2,184
2,210
2,523
2,726
335
269
250
284
Shares and debentures
83
106
85
112
Fixed deposits
43
40
38
37
135
258
317
346
2,780
2,883
3,213
3,505
Others
Total
17
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By period overdue
($m)
30 Sept 2011
30 Jun 2011
31 Dec 2010
30 Sept 2010
NPA
NPA
NPA
NPA
Not overdue
180 days overdue
1,019
675
129
957
1,592
221
134
936
1,294
225
124
1,570
1,323
198
655
1,329
Total
2,780
2,883
3,213
3,505
Non-performing assets fell 4% from the previous quarter
to $2.78 billion, while the NPL rate declined from 1.5% to
1.3% of loans. By region, the improvement was due to
Singapore. The amount of NPLs in other regions were
stable.
Thirty-seven percent of classified non-performing assets
were still current in interest and principal. Allowance
coverage amounted to 124% of non-performing assets
and to 158% if collateral was considered.
FUNDING SOURCES
($m)
Customer deposits 1/
2/
Interbank liabilities
Other borrowings and liabilities 2/
Shareholders’ funds
Total
30 Sept 2011
30 Jun 2011
31 Dec 2010
30 Sept 2010
219,714
28,342
62,304
28,281
338,641
210,536
26,799
44,143
28,014
309,492
193,692
18,854
44,565
26,599
283,710
185,211
19,720
48,081
26,424
279,436
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 2011
30 Jun 2011
31 Dec 2010
30 Sept 2010
120,913
19,793
82,657
17,737
726
23,786
13,979
6,202
3,153
452
34,019
17,149
2,849
12,813
1,208
40,996
31,625
2,391
4,340
2,640
219,714
82,546
94,099
38,043
5,026
119,723
20,787
81,169
17,143
624
20,217
10,694
6,263
2,929
331
33,868
16,134
2,925
12,767
2,042
36,728
29,801
2,041
2,917
1,969
210,536
77,416
92,398
35,756
4,966
112,228
20,081
76,417
14,916
814
23,220
12,946
7,082
3,081
111
30,022
16,064
3,255
9,777
926
28,222
22,289
2,035
2,341
1,557
193,692
71,380
88,789
30,115
3,408
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
Note:
1/ Includes customer deposits classified as financial liabilities at fair value through profit or loss on the balance sheet
Customer deposits rose 4% from the previous quarter to
$219.7 billion, led by Hong Kong dollar and Chinese yuan
deposits.
Customer deposits grew 19% from a year ago, with
Singapore dollar, Chinese yuan and US dollar deposits
accounting for most of the growth.
OTHER BORROWINGS & LIABILITIES
($m)
1/
Subordinated term debts
1/
Other debt securities in issue
Due within 1 year
Due after 1 year
Others
Total
30 Sept 2011
30 Jun 2011
31 Dec 2010
30 Sept 2010
5,309
5,058
6,398
6,572
6,205
2,190
48,600
62,304
957
1,835
36,293
44,143
505
1,655
36,007
44,565
530
1,615
39,364
48,081
Note:
1/ Unsecured
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 2010 to 30 September 2011. The
Group’s trading book VaR methodology is based on Historical Simulation VaR.
($m)
1 October 2010 to 30 September 2011
Average
High
Low
As at 30 Sept 2011
Total
30
27
42
14
The charts below provide the range of VaR and the daily distribution of trading income in the trading portfolio for the
period from 1 October 2010 to 30 September 2011.
D BSH Gr oup Va R for Tr a ding Book
25
No. of D ay s
20
15
10
5
> 39- 40
> 40- 41
> 41- 42
>34-36
>36-38
> 38- 39
>32-34
> 37- 38
> 36- 37
> 35- 36
> 34- 35
> 33- 34
> 32- 33
> 31- 32
> 30- 31
> 29- 30
> 28- 29
> 27- 28
> 26- 27
> 25- 26
> 24- 25
> 23- 24
> 22- 23
> 21- 22
> 20- 21
> 19- 20
> 18- 19
> 17- 18
> 16- 17
> 15- 16
> 14- 15
0
VaR ( S$ m illion)
Daily Distribution of Treasury & Markets Group Trading Income
(1 Oct 2010 to 30 Sep 2011)
50
45
40
30
25
20
15
10
5
Trading income (S$ million)
20
>52-54
>50-52
>48-50
>46-48
>44-46
>42-44
>40-42
>38-40
>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
>(2)-0
>(4)-(2)
>(6)-(4)
>(8)-(6)
>(10)-(8)
>(12)-(10)
>(14)-(12)
>(16)-(14)
>(18)-(16)
>(20)-(18)
>(22)-(20)
>(24)-(22)
>(26)-(24)
0
>(28)-(26)
No. of days
35
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CAPITAL ADEQUACY
($m)
30 Sept 2011
30 Jun 2011
31 Dec 2010
30 Sept 2010
9,347
22,670
(5,029)
26,988
9,256
22,596
(5,025)
26,827
8,780
23,927
(5,064)
27,643
8,775
20,851
(5,073)
24,553
1,001
5,309
28
(111)
33,215
213,919
820
5,058
79
(101)
32,683
198,445
696
5,281
149
(142)
33,627
182,694
482
5,415
171
(143)
30,478
186,847
10.7
12.6
2.9
15.5
11.5
13.5
3.0
16.5
11.8
15.1
3.3
18.4
11.2
13.1
3.2
16.3
Tier 1
Share capital
Disclosed reserves and others
Less: Tier 1 Deductions
Eligible Tier 1
Tier 2
Loan allowances admitted as Tier 2
Subordinated debts
Revaluation surplus from equity securities
Less: Tier 2 Deductions
Total eligible capital
Risk-weighted assets
Capital adequacy ratio (%)
Core Tier 1 ratio
Tier 1 ratio
Tier 2 ratio
Total (Tier 1 & 2) ratio
The Group’s capital adequacy ratio declined from 16.5% in the previous quarter to 15.5% due primarily to an increase in
risk-weighted assets as a result of loan growth.
UNREALISED VALUATION SURPLUS/(LOSSES)
($m)
Properties
Financial investments
Total
30 Sept 2011
30 Jun 2011
31 Dec 2010
30 Sept 2010
532
186
718
513
119
632
507
26
533
482
141
623
The amount of unrealised valuation surplus increased $86 million to $718 million in third quarter 2011 due to improved
valuations of financial investments classified as loans and receivables.
21
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Consolidated Income Statement
In $ millions
3rd Qtr
2011
3rd Qtr +/(-) 2nd Qtr +/(-)
2010
%
2011
%
Income
Interest income
Interest expense
Net interest income
Net fee and commission income
Net trading income
Net income/(loss) from financial instruments designated at fair value
Net income from financial investments
Other income
1,676
462
1,214
397
138
5
152
62
1,457
378
1,079
340
235
(12)
123
44
15
22
13
17
(41)
NM
24
41
Total income
1,968
1,809
Expenses
Employee benefits
Depreciation of properties and other fixed assets
Other expenses
444
45
358
Goodwill charges
Allowances for credit and other losses
9 Mths
2011
9 Mths +/(-)
2010
%
1,580
6
381
21
1,199
1
387
3
146
(5)
- NM
82
85
24 >100
4,741
1,206
3,535
1,200
553
(6)
318
115
4,238
1,026
3,212
1,039
761
(30)
271
84
12
18
10
15
(27)
80
17
37
9
1,838
7
5,715
5,337
7
360
43
323
23
5
11
423
44
331
5
2
8
1,272
135
1,011
1,060
137
948
20
(1)
7
231
195
18
137
69
493
1,018
754
NM
(35)
1,078
921
17
935
15
2,911
3,917
(26)
Profit
Share of profits of associates
Profit before tax
890
37
927
888
31
919
19
1
903
31
934
(1)
19
(1)
2,804
92
2,896
1,420
78
1,498
97
18
93
Income tax expense
Net profit
113
814
146
773
(23)
5
136
798
(17)
2
389
2,507
383
2
1,115 >100
762
52
814
722
51
773
6
2
5
735
63
798
4
(17)
2
2,304
203
2,507
954 >100
161
26
1,115 >100
Total expenses
Attributable to:
Shareholders
Non-controlling interests
Unaudited Consolidated Statement of Comprehensive Income
In $ millions
Net profit
Other comprehensive income:
Foreign currency translation differences for foreign operations
Share of other comprehensive income of associates
Available-for-sale financial assets and others
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
Non-controlling interests
3rd Qtr 3rd Qtr
2011
2010
+/(-) 2nd Qtr
%
2011
+/(-)
%
9 Mths 9 Mths
2011
2010
+/(-)
%
814
773
5
798
2
2,507
1,115
>100
14
6
(109)
5
NM
20
(20)
7
NM
(14)
(25)
(5)
(90)
9
72
NM
284
(158)
21
167
445
(102)
(31)
208
(36)
(55)
NM
(20)
98 >100
(78) (>100)
2 >100
9 >100
474
(302)
26
168
902
(47)
(138) (>100)
(54)
NM
629
(73)
981
981
-
807
22
2,675
1,744
53
926
55
981
1,010
(29)
981
(8)
NM
-
748
59
807
24
(7)
22
2,492
183
2,675
1,670
74
1,744
49
>100
53
Note:
NM Not Meaningful
22
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Balance Sheets
In $ millions
30 Sept
2011
GROUP
30 Jun
31 Dec
2011
2010 1/
30 Sept
2010
30 Sept
2011
COMPANY
30 Jun
31 Dec
2011
2010 1/
30 Sept
2010
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
27,090
12,239
29,586
10,895
24,838
185,211
28,073
3,511
31,235
12,894
23,579
11,551
16,839
168,272
26,980
2,159
31,203
11,546
20,306
10,179
16,767
151,698
26,550
1,982
21,782
12,134
23,106
11,549
18,949
147,139
26,275
1,657
9,622
10,464
10,438
9,298
928
4,802
972
371
137
9,988
839
4,802
981
357
100
8,904
813
4,802
1,025
358
102
6,379
795
4,802
1,027
388
103
9,730
22
21
63
63
TOTAL ASSETS
338,641
309,492
283,710
279,436
9,644
10,485
10,501
9,361
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
28,138
212,533
13,551
26,353
267
965
36
10,488
8,395
5,309
26,629
203,466
12,047
17,352
399
948
36
8,481
2,792
5,058
18,811
187,695
10,228
17,222
601
879
40
6,574
2,160
6,398
19,616
178,815
11,372
18,935
790
969
55
9,700
2,145
6,572
5
185
5
227
TOTAL LIABILITIES
306,035
277,208
250,608
248,969
5
185
5
227
32,606
32,284
33,102
30,467
9,639
10,300
10,496
9,134
Share capital
Treasury shares
Other reserves
Revenue reserves
9,347
(136)
7,280
11,790
9,256
(42)
7,086
11,714
8,780
(84)
7,084
10,819
8,775
(84)
7,595
10,138
9,347
(96)
87
301
9,256
57
987
8,780
79
1,637
8,775
71
288
SHAREHOLDERS’ FUNDS
28,281
28,014
26,599
26,424
9,639
10,300
10,496
9,134
4,325
4,270
6,503
4,043
32,606
32,284
33,102
30,467
9,639
10,300
10,496
9,134
20,178
109,299
1,710,196
18,571
100,130
1,488,892
16,031
95,918
1,347,522
15,616
96,431
1,484,518
11.77
11.54
11.69
11.47
11.25
11.04
11.18
10.97
4.00
3.95
4.29
4.24
4.44
4.38
3.85
3.82
LIABILITIES
NET ASSETS
EQUITY
Non-controlling interests
TOTAL 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 2011
Exercise of share options
Reclassification of reserves upon exercise of
share options
Issuance of new shares pursuant to Scrip
Dividend Scheme
Ordinary
shares
8,533
Convertible
preference
shares
Treasury
shares
Other
reserves
Revenue
reserves
247
(84)
7,084
10,819
16
Total equity
26,599
6,503
33,102
16
16
-
-
549
549
54
54
54
(44)
-
(2)
2
547
Total
Noncontrolling
interests
2
Cost of share-based payments
Draw-down of reserves upon vesting of
44
performance shares
Purchase of Treasury shares
(96)
-
(96)
Incorporated in the Republic of Singapore
Company Registration Number: 199901152M
To: Shareholders
The Board of Directors of DBS Group Holdings Ltd (“DBSH”) reports the following:
Unaudited Financial Results for the Third Quarter Ended 30 September 2011
Details of the unaudited financial results are in the accompanying Performance Summary.
Dividends
For the third quarter of 2011, no dividend has been declared for DBSH non-voting convertible
preference shares (“CPS”), DBSH non-voting redeemable CPS and DBSH ordinary shares.
By order of the Board
Linda Hoon
Group Secretary
1st November 2011
Singapore
More information on the above announcement is available at www.dbs.com/investor
Performance Summary
Unaudited Financial Results
For the Third Quarter ended
30 September 2011
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
Interested Person Transactions
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
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 2010, with the exception of the adoption of new or revised FRS and
Interpretations to FRS (“INT FRS”).
On 1 January 2011, the Group adopted the following new or revised FRS and INT FRS that are issued by the Accounting
Standards Council, and are relevant for the Group:
•
•
Revised FRS 24 Related Party Disclosures
Improvements to FRSs (2010)
Refer to page 27 for more information.
3rd Qtr
2011
3rd Qtr
2010
%
chg
2nd Qtr
2011
%
chg
9 Mths
2011
9 Mths
2010
%
chg
1,214
397
357
1,968
847
1,121
231
1,079
340
390
1,809
726
1,083
195
13
17
(8)
9
17
4
18
1,199
387
252
1,838
798
1,040
137
1
3
42
7
6
8
69
3,535
1,200
980
5,715
2,418
3,297
493
3,212
1,039
1,086
5,337
2,145
3,192
754
10
15
(10)
7
13
3
(35)
927
762
919
722
1
6
934
735
(1)
4
2,896
2,304
2,516
1,972
15
17
-
-
-
-
-
-
(1,018)
NM
Net profit including goodwill charges
762
722
6
735
4
2,304
954
>100
Selected balance sheet items ($m)
1/
Customer loans
2/
Interbank assets
Total assets
185,630
31,009
338,641
147,785
25,820
279,436
26
20
21
168,706
24,577
309,492
10
26
9
185,630
31,009
338,641
147,785
25,820
279,436
26
20
21
Customer deposits 3/
Total liabilities
Shareholders’ funds
219,714
306,035
28,281
185,211
248,969
26,424
19
23
7
210,536
277,208
28,014
4
10
1
219,714
306,035
28,281
185,211
248,969
26,424
19
23
7
1.73
38.3
43.0
0.93
10.77
84.5
1.3
1.80
40.4
40.1
1.04
11.06
79.8
2.1
1.80
34.8
43.4
0.98
10.62
80.1
1.5
1.78
38.1
42.3
0.99
11.28
84.5
1.3
1.86
39.8
40.2
0.98
10.18
79.8
2.1
9
33
7
8
49
10.7
12.6
15.5
11.2
13.1
16.3
11.5
13.5
16.5
10.7
12.6
15.5
11.2
13.1
16.3
Selected income statement items ($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
Key financial ratios (%) (excluding
4/
goodwill charges)
Net interest margin
Non-interest/total income
Cost/income ratio
Return on assets
Return on equity 5/
Loan/deposit ratio
NPL ratio
Specific allowances (loans)/average loans
(bp)
Core Tier 1 capital adequacy ratio
Tier 1 capital adequacy ratio
Total capital adequacy ratio
2
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
3rd Qtr
2011
3rd Qtr
2010
2nd Qtr
2011
9 Mths
2011
9 Mths
2010
1.28
1.25
1.26
1.32
1.14
1.28
11.77
1.25
11.18
1.26
11.69
1.32
11.77
0.69
11.18
1.24
1.20
1.21
1.28
1.10
1.24
11.54
1.20
10.97
1.21
11.47
1.28
11.54
0.67
10.97
Per share data ($)
Per basic share
– earnings excluding goodwill charges
– earnings
– net book value 5/
Per diluted share
– earnings excluding goodwill charges
– earnings
5/
– net book value
Notes:
1/ Includes customer loans classified as financial assets at fair value through profit or loss on the balance sheet
2/ Includes interbank assets classified as financial assets at fair value through profit or loss on the balance sheet
3/ Includes customer deposits classified as financial liabilities at fair value through profit or loss on the balance sheet
4/ Return on assets, return on equity, specific allowances (loan)/average loan and per share data for the quarters are computed on an annualised basis
5/ Non-controlling interests are not included as equity in the computation of net book value and return on equity
NM Not Meaningful
Third-quarter net profit rose 6% from a year ago and 4%
from the previous quarter to $762 million. Business
volume and customer income trends were sustained as
total income reached a new high.
Net interest income rose 1% from the previous quarter to a
record $1.21 billion. Loans rose 10% from broad-based
corporate borrowing across the region. Net interest margin
fell seven basis points to 1.73% as interest rates in
Singapore remained soft and funding costs in Hong Kong
were higher.
Non-interest income grew 18% from the previous quarter
to $754 million. Net fee income rose 3% to $397 million
from higher trade and remittances and loan activities.
Income from customer flows for treasury products also
increased. There were also higher gains from net income
on financial investments. A gain of $47 million from the
transaction to combine DBS Asset Management and
Nikko Asset Management was also recognised.
Expenses of $847 million were 6% higher than the
previous quarter. The cost-income ratio was unchanged at
43%.
The non-performing loan rate improved from 1.5% in the
previous quarter to 1.3% as non-performing assets fell
4%. Total allowances rose 69% to $231 million as
higher general allowances were made. Allowance
coverage rose to 124% and to 158% if collateral was
considered.
For the first nine months, net profit rose 17% to $2.30
billion from higher net interest income and customerdriven non-interest income, as well as from lower
allowances as asset quality improved.
DBS remained well capitalised with a total capital
adequacy ratio of 15.5%, Tier 1 of 12.6% and core Tier
1 of 10.7%. Return on equity rose slightly from the
previous quarter to 10.8%. For the nine months, it
improved from 10.2% a year ago to 11.3%.
3
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET INTEREST INCOME
Average balance
sheet
3rd Qtr 2011
Average
Average
rate
balance Interest
(%)
($m)
($m)
3rd Qtr 2010
Average
Average
rate
balance Interest
(%)
($m)
($m)
2nd Qtr 2011
Average
Average
rate
balance Interest
(%)
($m)
($m)
Interest-bearing
assets
Customer loans
Interbank assets
Securities
Total
173,409
51,543
53,431
278,383
1,175
142
359
1,676
2.69
1.09
2.67
2.39
145,902
40,880
51,010
237,792
1,009
97
351
1,457
2.74
0.95
2.73
2.43
161,278
53,737
51,333
266,348
1,080
127
373
1,580
2.68
0.95
2.92
2.38
Interest-bearing
liabilities
Customer deposits
Other borrowings
Total
213,303
43,743
257,046
342
120
462
0.64
1.08
0.71
184,815
33,766
218,581
269
109
378
0.58
1.28
0.69
205,628
39,618
245,246
281
100
381
0.55
1.02
0.62
1,214
1.73
1,079
1.80
1,199
1.80
Net interest
1/
income/margin
9 Mths 2011
Average balance
sheet
Average
balance
($m)
9 Mths 2010
Average Average
Interest
rate balance
($m)
(%)
($m)
Interest
($m)
Average
rate
(%)
Interest-bearing
assets
Customer loans
Interbank assets
Securities
Total
163,031
51,894
51,100
266,025
3,273
392
1,076
4,741
2.68
1.01
2.82
2.38
138,696
41,862
50,737
231,295
2,927
253
1,058
4,238
2.82
0.81
2.79
2.45
Interest-bearing
liabilities
Customer deposits
Other borrowings
Total
204,727
40,052
244,779
886
320
1,206
0.58
1.07
0.66
182,950
29,863
212,813
725
301
1,026
0.53
1.35
0.64
3,535
1.78
3,212
1.86
Net interest
income/margin 1/
Note:
1/ Net interest margin is net interest income expressed as a percentage of average interest-earning assets
Net interest income rose 1% from the previous quarter to
$1.21 billion.
The impact of the margin decline was offset by higher
customer loan volumes.
Net interest margin fell seven basis points from the
previous quarter to 1.73%. Securities yields were lower as
interest rates remained soft, while deposit costs in Hong
Kong were higher.
Net interest income for the nine months was 10% higher
than a year ago. Higher customer loans volumes more than
offset the impact of an eight basis point decline in net
interest margin to 1.78%.
4
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
3rd Qtr 2011 versus 3rd Qtr 2010
Volume and rate analysis ($m)
Increase/(decrease) due to change in
3rd Qtr 2011 versus 2nd Qtr 2011
Volume
Rate
Net
change
Volume
Rate
Net
change
Customer loans
Interbank assets
Securities
190
26
17
(23)
18
(9)
167
44
8
81
(5)
2
18
83
13
Total
233
(14)
219
15
91
(34)
(14)
(19)
77
42
27
69
31
(16)
15
73
11
84
10
13
23
47
5
52
57
18
75
164
(29)
135
68
(66)
2
Interest income
Interest expense
Customer deposits
Other borrowings
Total
Net impact on interest income
Due to change in number of days
Net Interest Income
-
13
135
15
9 Mths 2011 versus 9 Mths 2010
Volume and rate analysis ($m)
Increase/(decrease) due to change in
Volume
Rate
Net
change
Customer loans
Interbank assets
Securities
Total
514
61
8
583
(168)
78
10
(80)
346
139
18
503
Interest expense
Customer deposits
Other borrowings
Total
86
72
158
75
(53)
22
161
19
180
Net impact on interest income
425
(102)
323
Interest income
Due to change in number of days
Net Interest Income
323
5
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET FEE AND COMMISSION INCOME
($m)
Stockbroking
Investment banking
Trade and remittances
Loan related
Guarantees
Deposit related
Credit card
Fund management
Wealth management
Others
Total
3rd Qtr
2011
3rd Qtr
2010
% chg
2nd Qtr
2011
% chg
9 Mths
2011
9 Mths
2010
% chg
38
38
81
103
18
23
35
5
42
14
397
45
38
55
80
14
20
37
5
31
15
340
(16)
47
29
29
15
(5)
35
(7)
17
34
44
66
95
16
22
37
6
52
15
387
12
(14)
23
8
13
5
(5)
(17)
(19)
(7)
3
115
155
210
291
54
65
106
16
145
43
1,200
129
94
171
281
43
62
109
16
92
42
1,039
(11)
65
23
4
26
5
(3)
58
2
15
Net fee and commission income increased 3% from the
previous quarter to $397 million. Higher income from trade
and remittances and loan activities was partially offset by
lower contributions from wealth management and
investment banking.
Net fee and commission income for the nine months rose
15% from higher customer flows in a wide range of
activities, including trade and remittances, wealth
management, loan-related and investment banking.
OTHER NON-INTEREST INCOME
($m)
3rd Qtr
2011
3rd Qtr
2010
% chg
2nd Qtr
2011
% chg
9 Mths
2011
9 Mths
2010
% chg
Net trading income
Net income/(loss) from financial
instruments designated at fair value
Net income on financial
investments
Net gain on fixed assets
Others (include rental income)
138
235
(41)
146
(5)
553
761
(27)
5
(12)
NM
-
NM
(6)
(30)
80
152
123
24
82
85
318
271
17
1
61
34
10
(97)
>100
9
15
(89)
>100
16
99
51
33
(69)
>100
Total
357
390
(8)
252
42
980
1,086
(10)
Note:
NM Not Meaningful
Net trading income (including net income from financial
instruments designated at fair value) was little changed
from the previous quarter at $143 million. Income from
customer flows was higher but the improvement was
offset by lower trading gains. For the nine months, net
trading income fell 25% to $547 million. An increase in
customer flows was more than offset by lower trading
gains.
Net income on financial investments rose from $82
million in the previous quarter to $152 million. For the
nine months, net income on financial investments was
17% higher at $318 million.
A $47 million gain from the transaction to combine DBS
Asset Management with Nikko Asset Management was
also recognised in “Others” in the current quarter.
6
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
EXPENSES
($m)
3rd Qtr
2011
3rd Qtr
2010
Staff
Occupancy
Computerisation
Revenue-related
Others
Total
Staff headcount at period-end
444
75
163
51
114
847
17,550
360
67
145
33
121
726
15,206
23
12
12
55
(6)
17
15
45
1
43
1
2
2
Included in the above table were:
Depreciation of properties and other fixed
assets
Directors’ fees
Audit fees payable
% chg 2nd Qtr
2011
% chg
9 Mths
2011
9 Mths % chg
2010
423
72
147
39
117
798
17,274
5
4
11
31
(3)
6
2
1,272
217
462
128
339
2,418
17,550
1,060
202
405
99
379
2,145
15,206
20
7
14
29
(11)
13
15
5
-
44
1
2
-
135
3
137
2
(1)
50
-
2
-
5
6
(17)
For the nine months, costs rose 13% to $2.42 billion as
headcount was increased and investments were made to
support higher business volumes and build capacity for
future growth. The cost-income ratio rose from 40% a year
ago to 42%.
.
Expenses rose 6% from the previous quarter to $847
million as staff, computerisation and revenue-related costs
increased. The cost-income ratio was unchanged at 43%.
ALLOWANCES FOR CREDIT AND OTHER LOSSES
($m)
3rd Qtr
2011
3rd Qtr
2010
General allowances (GP)
187
39
>100
Specific allowances (SP) for loans1/
Singapore
Hong Kong
Rest of Greater China
South and South-east Asia
Rest of the World
41
(13)
13
1
12
28
125
(1)
8
17
15
86
3
231
Specific allowances (SP) for securities,
properties and other assets
Total
% chg 2nd Qtr
2011
% chg
9 Mths
2011
9 Mths % chg
2010
99
89
347
188
85
(67)
(>100)
63
(94)
(20)
(67)
27
(10)
8
(6)
4
31
52
(30)
63
NM
>100
(10)
102
(21)
24
(13)
18
94
517
10
11
27
27
442
(80)
NM
>100
NM
(33)
(79)
31
(90)
11
(73)
44
49
(10)
195
18
137
69
493
754
(35)
Notes:
1/ Specific allowances for loans are classified according to where the borrower is incorporated.
NM Not Meaningful
General allowances rose 89% from the previous quarter
to $187 million. With asset quality remaining healthy,
specific allowances for loans amounted to $41 million or
nine basis points of loans.
For the nine months, total allowances fell 35% to $493
million as specific allowances for loans fell 80% to $102
million in line with improvements in asset quality. General
allowances of $347 million were 85% higher.
7
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY BUSINESS SEGMENTS
($m)
Consumer/
Private
Banking
Institutional
Banking
Treasury
Others
Total
Selected income items
3rd Qtr 2011
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
350
196
546
391
14
141
589
469
1,058
331
140
6
593
240
66
306
106
(1)
201
35
23
58
19
78
31
(8)
1,214
754
1,968
847
231
37
927
2nd Qtr 2011
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
375
187
562
377
26
159
552
435
987
318
72
7
604
247
(14)
233
103
(4)
134
25
31
56
43
24
37
1,199
639
1,838
798
137
31
934
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
338
164
502
357
15
130
505
399
904
282
149
6
479
210
125
335
96
(3)
242
26
42
68
(9)
34
25
68
1,079
730
1,809
726
195
31
919
9 Mths 2011
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
1,066
555
1,621
1,133
56
432
1,661
1,374
3,035
945
268
20
1,842
711
132
843
303
2
538
97
119
216
37
167
72
84
3,535
2,180
5,715
2,418
493
92
2,896
8
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
Consumer/
Private
Banking
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
Selected balance sheet and other
items 2/
30 Sept 2011
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 3rd Qtr 2011
Depreciation for 3rd Qtr 2011
30 Jun 2011
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 2nd Qtr 2011
Depreciation for 2nd Qtr 2011
31 Dec 2010
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 4th Qtr 2010
Depreciation for 4th Qtr 2010
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
Institutional
Banking
Treasury
Others
Total
1,050
489
1,539
1,070
50
419
1,482
1,146
2,628
788
652
20
1,208
607
459
1,066
267
2
797
73
31
104
20
50
58
92
3,212
2,125
5,337
2,145
754
78
2,516
54,940
157,624
109,985
11,290
126,530
6
14
98,972
4
6
75,961
5
3
4,572
24
22
333,839
4,802
338,641
306,035
39
45
52,591
135,095
102,305
14,699
122,424
6
10
88,004
12
5
59,869
7
2
6,911
11
27
51,328
118,572
98,735
10,273
117,529
22
11
80,559
16
6
42,584
8
2
9,936
44
37
49,706
115,390
99,611
9,927
113,944
9
11
74,842
2
4
50,908
3
9,275
22
25
304,690
4,802
309,492
277,208
36
44
278,908
4,802
283,710
250,608
90
56
274,634
4,802
279,436
248,969
33
43
Notes:
1/ Allowances for credit and other losses and profits exclude goodwill charges
2/ Refer to sections on Customer Loans and Non-Performing Assets and Loss Allowance Coverage for more information on business segments
The business segment results are prepared based on
the Group’s internal management reporting which
reflects the organisation management 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.
9
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
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, profit before tax fell
11% to $141 million. Net interest income declined 7% to
$350 million as higher loan volumes were offset by lower
net interest margin. Non-interest income rose 5% to $196
million. Expenses were 4% higher at $391 million as staff
and non-staff costs rose. Total allowances halved to $14
million as both specific and general allowances fell.
Institutional Banking
Institutional Banking provides financial services and
products to institutional clients including non-bank
financial institutions, government linked companies,
large corporates and small and medium-sized
businesses. The business focus is to broaden and
deepen the financial relationship with clients. The
products and services available to customers include
long and short term credit facilities ranging from
specialised lending such as asset financing, project
financing and real estate financing to overdraft, trade,
receivables financing and structured trade; cash
management and deposit; treasury and markets;
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 and private
equity. 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.
Compared to the previous quarter, profit before tax fell
marginally to $593 million. Net interest income rose 7% to
$589 million as higher loan volumes were partially offset
by lower net interest margin. Non-interest income grew 8%
to $469 million as trade and remittance fees and income
from customer driven treasury products increased.
Expenses rose 4% to $331 million. Total allowances
doubled to $140 million mainly due to higher general
allowances.
Treasury
Treasury provides treasury services to corporations,
institutional and private investors, financial institutions and
other market participants. It is primarily involved in sales,
structuring, market making and trading across a broad
range of financial products including foreign exchange,
interest rate, debt, 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
facilitating the execution of Group’s asset and liability
interest rate positions and management of the investment
of the Group’s excess liquidity and shareholders’ funds.
Compared to the previous quarter, Treasury’s profit before
tax rose 50% to $201 million as total income grew 31% to
$306 million. Expenses and allowances were little
changed.
Others
Others encompasses a range of activities from corporate
decisions and income and expenses not attributed to other
business segments.
10
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY GEOGRAPHY
1/
($m)
S’pore
Hong
Kong
Rest of
Greater
China
South
and
Southeast Asia
Rest of
the World
Total
Selected income items
3rd Qtr 2011
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
712
549
1,261
517
139
7
612
54
506
189
136
325
153
43
129
21
108
158
3
161
101
7
3
56
10
46
98
63
161
60
19
27
109
21
88
57
3
60
16
23
21
7
14
1,214
754
1,968
847
231
37
927
113
762
2nd Qtr 2011
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
728
394
1,122
476
61
5
590
68
459
199
177
376
154
54
168
25
143
124
25
149
94
4
5
56
13
43
91
33
124
58
10
21
77
15
62
57
10
67
16
8
43
15
28
1,199
639
1,838
798
137
31
934
136
735
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
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
9 Mths 2011
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
2,140
1,409
3,549
1,458
313
15
1,793
183
1,407
578
513
1,091
462
106
523
82
441
386
65
451
279
9
13
176
34
142
263
153
416
172
31
64
277
52
225
168
40
208
47
34
127
38
89
3,535
2,180
5,715
2,418
493
92
2,896
389
2,304
11
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
S’pore
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
Hong
Kong
Rest of
Greater
China
South
and
Southeast Asia
Rest of
the World
Total
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
Selected balance sheet items
30 Sept 2011
Total assets before goodwill
Goodwill on consolidation
Total assets
3/
Non-current assets
Gross customer loans
201,919
4,802
206,721
1,724
110,352
71,780
71,780
380
45,376
31,061
31,061
133
15,743
16,411
16,411
32
10,462
12,668
12,668
2
6,603
333,839
4,802
338,641
2,271
188,536
30 Jun 2011
Total assets before goodwill
Goodwill on consolidation
Total assets
3/
Non-current assets
Gross customer loans
191,570
4,802
196,372
1,639
101,450
59,749
59,749
364
40,095
25,727
25,727
138
14,379
15,152
15,152
34
9,586
12,492
12,492
2
5,947
304,690
4,802
309,492
2,177
171,457
31 Dec 2010
Total assets before goodwill
Goodwill on consolidation
Total assets
3/
Non-current assets
Gross customer loans
179,813
4,802
184,615
1,623
91,128
52,489
52,489
406
36,224
21,033
21,033
129
12,208
13,710
13,710
36
9,121
11,863
11,863
2
6,041
278,908
4,802
283,710
2,196
154,722
30 Sept 2010
Total assets before goodwill
Goodwill on consolidation
Total assets
Non-current assets 3/
Gross customer loans
176,623
4,802
181,425
1,587
86,521
53,149
53,149
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
Notes:
1/ The geographical segment analysis is based on the location where transactions and assets are booked
2/ Allowances for credit and other losses and profits exclude goodwill charges
3/ 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.
Singapore
Non-interest income declined 23% from the previous
quarter to $136 million as trading gains and sales of
treasury products were lower.
Net profit rose 10% from the previous quarter to $506
million. Higher non-interest income was partially offset by
an increase in general allowances.
Expenses were stable at $153 million. Total allowances fell
20% to $43 million as both specific and general allowances
were lower.
Net interest income fell 2% to $712 million as higher loan
volumes was offset by lower net interest margin as asset
yields declined. Non-interest income rose 39% to $549
million from higher income from financial investments and
a gain from the transaction to combine DBS Asset
Management and Nikko Asset Management.
Other regions
Expenses rose 9% to $517 million as staff and non-staff
costs increased. Allowances more than doubled to $139
million from higher general allowances. Specific
allowances declined.
Hong Kong
The third quarter’s results incorporate an appreciation of
the Singapore dollar against the Hong Kong dollar of 8%
from a year ago. The average exchange rate between both
currencies was stable from the previous quarter.
Net profit fell 24% from the previous quarter to $108 million
as a decline in net interest margin and trading income was
partially offset by higher loan volumes and lower
allowances.
Net interest income decreased 5% from the previous
quarter to $189 million. Net interest margin fell 27 basis
points to 1.25% due to higher deposit costs. This was
partially offset by a 7% increase in loans in constant
currency terms, which was due mainly to trade finance.
Deposits increased 9% in constant currency terms from
higher fixed deposit volumes.
Net profit for Rest of Greater China increased 7% from the
previous quarter to $46 million, driven by a 27% increase in
net interest income to $158 million from higher net interest
margin and loan growth. Non-interest income fell from $25
million to $3 million from lower trading income. Expenses
rose 7% to $101 million from higher wage and revenuerelated costs. Allowances were higher as there had been
higher specific allowance write-backs in the previous
quarter.
Net profit for South and South-east Asia grew 42% from the
previous quarter to $88 million as non-interest income
increased 91% to $63 million. Fees from trade and
remittances and loan activities were higher. Trading income
also increased. Expenses were little changed at $60 million.
Total allowances rose to $19 million as both specific and
general allowances increased.
Net profit for Rest of the World halved from the previous
quarter to $14 million. Net interest income was stable at
$57 million. Non-interest income declined from $10 million
to $3 million as trading income fell. Expenses were
unchanged at $16 million. Total allowances increased to
$23 million as both general allowances and specific
allowances were higher.
.
13
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CUSTOMER LOANS
1/
($m)
30 Sept 2011
30 Jun 2011
31 Dec 2010
30 Sept 2010
188,536
171,457
154,722
150,534
General allowances
Net total
1,099
1,807
185,630
1,123
1,628
168,706
1,152
1,476
152,094
1,300
1,449
147,785
By business unit
Consumer/ Private Banking
Institutional Banking
Others
Total (Gross)
53,487
132,932
2,117
188,536
52,982
116,714
1,761
171,457
50,256
103,219
1,247
154,722
49,108
100,214
1,212
150,534
By geography 2/
Singapore
Hong Kong
Rest of Greater China
South and South-east Asia
Rest of the World
Total (Gross)
87,538
40,689
23,620
18,131
18,558
188,536
83,466
36,933
19,121
15,918
16,019
171,457
74,595
36,688
13,495
13,976
15,968
154,722
72,997
36,541
11,322
13,677
15,997
150,534
23,719
26,798
40,749
22,508
24,555
39,368
19,217
21,385
38,676
17,814
21,194
38,030
31,217
23,545
16,732
15,053
16,961
19,222
11,926
17,944
188,536
15,938
16,104
12,526
16,913
171,457
14,378
18,517
11,142
14,675
154,722
13,714
19,868
10,652
14,209
150,534
74,831
31,392
58,027
24,286
188,536
72,334
29,376
49,309
20,438
171,457
67,439
30,478
38,094
18,711
154,722
64,908
31,789
35,755
18,082
150,534
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
Singapore dollar
Hong Kong dollar
US dollar
Others
Total (Gross)
Notes:
1/ Includes customer loans classified as financial assets at fair value through profit or loss on the balance sheet
2/ Loans by geography are classified according to where the borrower is incorporated.
Gross customer loans rose 10% from the previous
quarter to $188.5 billion. Excluding currency effects,
loan growth was 7%. The growth was led by broadbased corporate borrowing across industries and
regions. Slightly less than half of loan growth during the
quarter was for trade finance.
Gross loans were 25% higher than a year ago, with the
expansion spread across most regions and across
corporate and consumer borrowers. Half of the increase
from a year ago was for trade finance.
14
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NON-PERFORMING ASSETS AND LOSS ALLOWANCE COVERAGE
By business unit
NPA
($m)
SP
($m)
GP
($m)
NPL
(% of loans)
(GP+SP)/NPA
(%)
(GP+SP)/
unsecured
NPA
(%)
293
84
534
0.5
211
372
2,218
1,059
1,273
1.7
105
124
2,511
1,143
1,807
1.3
117
145
10
3
113
-
1,160
2,320
259
103
288
-
151
281
2,780
1,249
2,208
-
124
158
302
94
529
0.6
206
356
2,295
1,069
1,099
2.0
94
120
2,597
1,163
1,628
1.5
107
141
10
3
103
-
1,060
2,120
276
109
260
-
134
167
2,883
1,275
1,991
-
113
148
317
107
502
0.6
192
323
2,561
1,105
974
2.5
81
102
2,878
1,212
1,476
1.9
93
121
28
6
124
-
464
1,300
307
127
252
-
123
134
3,213
1,345
1,852
-
100
127
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
30 Sept 2011
Consumer/ Private
Banking
Institutional Banking
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
30 Jun 2011
Consumer/ Private
Banking
Institutional Banking
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
31 Dec 2010
Consumer/ Private
Banking
Institutional Banking
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
30 Sept 2010
Consumer/ Private
Banking
Institutional Banking
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
15
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By geography
30 Sept 2011
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 2011
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 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 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
NPA
($m)
SP
($m)
GP
($m)
NPL
(% of loans)
(GP+SP)/NPA
(%)
(GP+SP)/
unsecured
NPA
(%)
405
324
234
141
173
129
722
409
253
0.5
0.8
1.0
213
180
163
378
271
245
173
107
238
1.0
199
261
1,375
593
185
7.4
57
59
2,511
1,143
1,807
1.3
117
145
10
3
113
-
1,160
2,320
259
103
288
-
151
281
2,780
1,249
2,208
-
124
158
512
300
233
189
169
151
683
372
201
0.6
0.8
1.2
170
180
151
339
259
219
174
98
212
1.1
178
235
1,378
556
160
8.6
52
58
2,597
1,163
1,628
1.5
107
141
10
3
103
-
1,060
2,120
276
109
260
-
134
167
2,883
1,275
1,991
-
113
148
594
359
250
196
212
166
613
369
145
0.8
1.0
1.9
136
162
124
300
230
176
164
107
189
1.2
180
185
1,511
531
160
9.5
46
50
2,878
1,212
1,476
1.9
93
121
28
6
124
-
464
1,300
307
127
252
-
123
134
3,213
1,345
1,852
-
100
127
635
377
270
195
226
190
611
367
123
0.9
1.0
2.4
127
157
116
311
222
154
146
92
191
1.1
195
200
1,743
675
157
10.9
48
54
3,171
1,378
1,449
2.1
89
117
112
77
122
-
177
211
222
112
249
-
163
174
3,505
1,567
1,820
-
97
124
16
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By industry
($m)
30 Sept 2011
30 Jun 2011
31 Dec 2010
30 Sept 2010
NPA
SP
NPA
SP
NPA
SP
NPA
SP
409
83
103
280
257
33
13
123
415
84
107
252
280
32
14
105
502
90
118
248
325
25
17
107
533
39
125
322
330
12
19
161
434
205
575
229
646
183
628
150
Financial institutions, investment &
holding companies
927
387
867
366
960
399
1,200
545
Professionals & private individuals
(except housing loans)
169
59
180
69
173
74
174
74
Manufacturing
Building and construction
Housing loans
General commerce
Transportation, storage &
communications
Others
106
66
117
68
141
82
150
87
2,511
10
1,143
3
2,597
10
1,163
3
2,878
28
1,212
6
3,171
112
1,378
77
259
103
276
109
307
127
222
112
Total non-performing assets
2,780
1,249
2,883
1,275
3,213
1,345
3,505
1,567
By loan classification
($m)
30 Sept 2011
Total non-performing loans
Debt securities
Contingent liabilities & others
Non-performing assets
Substandard
Doubtful
Loss
Total
Restructured assets
Substandard
Doubtful
Loss
Total
30 Jun 2011
31 Dec 2010
30 Sept 2010
NPA
SP
NPA
SP
NPA
SP
NPA
SP
1,516
890
374
2,780
281
594
374
1,249
1,907
596
380
2,883
431
464
380
1,275
2,086
737
390
3,213
374
580
391
1,345
2,013
993
499
3,505
342
723
502
1,567
862
103
22
987
199
85
22
306
951
122
28
1,101
209
105
28
342
443
145
28
616
47
128
28
203
422
218
30
670
55
120
30
205
By collateral type
($m)
Unsecured non-performing assets
Secured non-performing assets by collateral type
Properties
30 Sept 2011
30 Jun 2011
31 Dec 2010 30 Sept 2010
NPA
NPA
NPA
NPA
2,184
2,210
2,523
2,726
335
269
250
284
Shares and debentures
83
106
85
112
Fixed deposits
43
40
38
37
135
258
317
346
2,780
2,883
3,213
3,505
Others
Total
17
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By period overdue
($m)
30 Sept 2011
30 Jun 2011
31 Dec 2010
30 Sept 2010
NPA
NPA
NPA
NPA
Not overdue
180 days overdue
1,019
675
129
957
1,592
221
134
936
1,294
225
124
1,570
1,323
198
655
1,329
Total
2,780
2,883
3,213
3,505
Non-performing assets fell 4% from the previous quarter
to $2.78 billion, while the NPL rate declined from 1.5% to
1.3% of loans. By region, the improvement was due to
Singapore. The amount of NPLs in other regions were
stable.
Thirty-seven percent of classified non-performing assets
were still current in interest and principal. Allowance
coverage amounted to 124% of non-performing assets
and to 158% if collateral was considered.
FUNDING SOURCES
($m)
Customer deposits 1/
2/
Interbank liabilities
Other borrowings and liabilities 2/
Shareholders’ funds
Total
30 Sept 2011
30 Jun 2011
31 Dec 2010
30 Sept 2010
219,714
28,342
62,304
28,281
338,641
210,536
26,799
44,143
28,014
309,492
193,692
18,854
44,565
26,599
283,710
185,211
19,720
48,081
26,424
279,436
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 2011
30 Jun 2011
31 Dec 2010
30 Sept 2010
120,913
19,793
82,657
17,737
726
23,786
13,979
6,202
3,153
452
34,019
17,149
2,849
12,813
1,208
40,996
31,625
2,391
4,340
2,640
219,714
82,546
94,099
38,043
5,026
119,723
20,787
81,169
17,143
624
20,217
10,694
6,263
2,929
331
33,868
16,134
2,925
12,767
2,042
36,728
29,801
2,041
2,917
1,969
210,536
77,416
92,398
35,756
4,966
112,228
20,081
76,417
14,916
814
23,220
12,946
7,082
3,081
111
30,022
16,064
3,255
9,777
926
28,222
22,289
2,035
2,341
1,557
193,692
71,380
88,789
30,115
3,408
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
Note:
1/ Includes customer deposits classified as financial liabilities at fair value through profit or loss on the balance sheet
Customer deposits rose 4% from the previous quarter to
$219.7 billion, led by Hong Kong dollar and Chinese yuan
deposits.
Customer deposits grew 19% from a year ago, with
Singapore dollar, Chinese yuan and US dollar deposits
accounting for most of the growth.
OTHER BORROWINGS & LIABILITIES
($m)
1/
Subordinated term debts
1/
Other debt securities in issue
Due within 1 year
Due after 1 year
Others
Total
30 Sept 2011
30 Jun 2011
31 Dec 2010
30 Sept 2010
5,309
5,058
6,398
6,572
6,205
2,190
48,600
62,304
957
1,835
36,293
44,143
505
1,655
36,007
44,565
530
1,615
39,364
48,081
Note:
1/ Unsecured
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 2010 to 30 September 2011. The
Group’s trading book VaR methodology is based on Historical Simulation VaR.
($m)
1 October 2010 to 30 September 2011
Average
High
Low
As at 30 Sept 2011
Total
30
27
42
14
The charts below provide the range of VaR and the daily distribution of trading income in the trading portfolio for the
period from 1 October 2010 to 30 September 2011.
D BSH Gr oup Va R for Tr a ding Book
25
No. of D ay s
20
15
10
5
> 39- 40
> 40- 41
> 41- 42
>34-36
>36-38
> 38- 39
>32-34
> 37- 38
> 36- 37
> 35- 36
> 34- 35
> 33- 34
> 32- 33
> 31- 32
> 30- 31
> 29- 30
> 28- 29
> 27- 28
> 26- 27
> 25- 26
> 24- 25
> 23- 24
> 22- 23
> 21- 22
> 20- 21
> 19- 20
> 18- 19
> 17- 18
> 16- 17
> 15- 16
> 14- 15
0
VaR ( S$ m illion)
Daily Distribution of Treasury & Markets Group Trading Income
(1 Oct 2010 to 30 Sep 2011)
50
45
40
30
25
20
15
10
5
Trading income (S$ million)
20
>52-54
>50-52
>48-50
>46-48
>44-46
>42-44
>40-42
>38-40
>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
>(2)-0
>(4)-(2)
>(6)-(4)
>(8)-(6)
>(10)-(8)
>(12)-(10)
>(14)-(12)
>(16)-(14)
>(18)-(16)
>(20)-(18)
>(22)-(20)
>(24)-(22)
>(26)-(24)
0
>(28)-(26)
No. of days
35
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CAPITAL ADEQUACY
($m)
30 Sept 2011
30 Jun 2011
31 Dec 2010
30 Sept 2010
9,347
22,670
(5,029)
26,988
9,256
22,596
(5,025)
26,827
8,780
23,927
(5,064)
27,643
8,775
20,851
(5,073)
24,553
1,001
5,309
28
(111)
33,215
213,919
820
5,058
79
(101)
32,683
198,445
696
5,281
149
(142)
33,627
182,694
482
5,415
171
(143)
30,478
186,847
10.7
12.6
2.9
15.5
11.5
13.5
3.0
16.5
11.8
15.1
3.3
18.4
11.2
13.1
3.2
16.3
Tier 1
Share capital
Disclosed reserves and others
Less: Tier 1 Deductions
Eligible Tier 1
Tier 2
Loan allowances admitted as Tier 2
Subordinated debts
Revaluation surplus from equity securities
Less: Tier 2 Deductions
Total eligible capital
Risk-weighted assets
Capital adequacy ratio (%)
Core Tier 1 ratio
Tier 1 ratio
Tier 2 ratio
Total (Tier 1 & 2) ratio
The Group’s capital adequacy ratio declined from 16.5% in the previous quarter to 15.5% due primarily to an increase in
risk-weighted assets as a result of loan growth.
UNREALISED VALUATION SURPLUS/(LOSSES)
($m)
Properties
Financial investments
Total
30 Sept 2011
30 Jun 2011
31 Dec 2010
30 Sept 2010
532
186
718
513
119
632
507
26
533
482
141
623
The amount of unrealised valuation surplus increased $86 million to $718 million in third quarter 2011 due to improved
valuations of financial investments classified as loans and receivables.
21
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Consolidated Income Statement
In $ millions
3rd Qtr
2011
3rd Qtr +/(-) 2nd Qtr +/(-)
2010
%
2011
%
Income
Interest income
Interest expense
Net interest income
Net fee and commission income
Net trading income
Net income/(loss) from financial instruments designated at fair value
Net income from financial investments
Other income
1,676
462
1,214
397
138
5
152
62
1,457
378
1,079
340
235
(12)
123
44
15
22
13
17
(41)
NM
24
41
Total income
1,968
1,809
Expenses
Employee benefits
Depreciation of properties and other fixed assets
Other expenses
444
45
358
Goodwill charges
Allowances for credit and other losses
9 Mths
2011
9 Mths +/(-)
2010
%
1,580
6
381
21
1,199
1
387
3
146
(5)
- NM
82
85
24 >100
4,741
1,206
3,535
1,200
553
(6)
318
115
4,238
1,026
3,212
1,039
761
(30)
271
84
12
18
10
15
(27)
80
17
37
9
1,838
7
5,715
5,337
7
360
43
323
23
5
11
423
44
331
5
2
8
1,272
135
1,011
1,060
137
948
20
(1)
7
231
195
18
137
69
493
1,018
754
NM
(35)
1,078
921
17
935
15
2,911
3,917
(26)
Profit
Share of profits of associates
Profit before tax
890
37
927
888
31
919
19
1
903
31
934
(1)
19
(1)
2,804
92
2,896
1,420
78
1,498
97
18
93
Income tax expense
Net profit
113
814
146
773
(23)
5
136
798
(17)
2
389
2,507
383
2
1,115 >100
762
52
814
722
51
773
6
2
5
735
63
798
4
(17)
2
2,304
203
2,507
954 >100
161
26
1,115 >100
Total expenses
Attributable to:
Shareholders
Non-controlling interests
Unaudited Consolidated Statement of Comprehensive Income
In $ millions
Net profit
Other comprehensive income:
Foreign currency translation differences for foreign operations
Share of other comprehensive income of associates
Available-for-sale financial assets and others
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
Non-controlling interests
3rd Qtr 3rd Qtr
2011
2010
+/(-) 2nd Qtr
%
2011
+/(-)
%
9 Mths 9 Mths
2011
2010
+/(-)
%
814
773
5
798
2
2,507
1,115
>100
14
6
(109)
5
NM
20
(20)
7
NM
(14)
(25)
(5)
(90)
9
72
NM
284
(158)
21
167
445
(102)
(31)
208
(36)
(55)
NM
(20)
98 >100
(78) (>100)
2 >100
9 >100
474
(302)
26
168
902
(47)
(138) (>100)
(54)
NM
629
(73)
981
981
-
807
22
2,675
1,744
53
926
55
981
1,010
(29)
981
(8)
NM
-
748
59
807
24
(7)
22
2,492
183
2,675
1,670
74
1,744
49
>100
53
Note:
NM Not Meaningful
22
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Balance Sheets
In $ millions
30 Sept
2011
GROUP
30 Jun
31 Dec
2011
2010 1/
30 Sept
2010
30 Sept
2011
COMPANY
30 Jun
31 Dec
2011
2010 1/
30 Sept
2010
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
27,090
12,239
29,586
10,895
24,838
185,211
28,073
3,511
31,235
12,894
23,579
11,551
16,839
168,272
26,980
2,159
31,203
11,546
20,306
10,179
16,767
151,698
26,550
1,982
21,782
12,134
23,106
11,549
18,949
147,139
26,275
1,657
9,622
10,464
10,438
9,298
928
4,802
972
371
137
9,988
839
4,802
981
357
100
8,904
813
4,802
1,025
358
102
6,379
795
4,802
1,027
388
103
9,730
22
21
63
63
TOTAL ASSETS
338,641
309,492
283,710
279,436
9,644
10,485
10,501
9,361
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
28,138
212,533
13,551
26,353
267
965
36
10,488
8,395
5,309
26,629
203,466
12,047
17,352
399
948
36
8,481
2,792
5,058
18,811
187,695
10,228
17,222
601
879
40
6,574
2,160
6,398
19,616
178,815
11,372
18,935
790
969
55
9,700
2,145
6,572
5
185
5
227
TOTAL LIABILITIES
306,035
277,208
250,608
248,969
5
185
5
227
32,606
32,284
33,102
30,467
9,639
10,300
10,496
9,134
Share capital
Treasury shares
Other reserves
Revenue reserves
9,347
(136)
7,280
11,790
9,256
(42)
7,086
11,714
8,780
(84)
7,084
10,819
8,775
(84)
7,595
10,138
9,347
(96)
87
301
9,256
57
987
8,780
79
1,637
8,775
71
288
SHAREHOLDERS’ FUNDS
28,281
28,014
26,599
26,424
9,639
10,300
10,496
9,134
4,325
4,270
6,503
4,043
32,606
32,284
33,102
30,467
9,639
10,300
10,496
9,134
20,178
109,299
1,710,196
18,571
100,130
1,488,892
16,031
95,918
1,347,522
15,616
96,431
1,484,518
11.77
11.54
11.69
11.47
11.25
11.04
11.18
10.97
4.00
3.95
4.29
4.24
4.44
4.38
3.85
3.82
LIABILITIES
NET ASSETS
EQUITY
Non-controlling interests
TOTAL 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 2011
Exercise of share options
Reclassification of reserves upon exercise of
share options
Issuance of new shares pursuant to Scrip
Dividend Scheme
Ordinary
shares
8,533
Convertible
preference
shares
Treasury
shares
Other
reserves
Revenue
reserves
247
(84)
7,084
10,819
16
Total equity
26,599
6,503
33,102
16
16
-
-
549
549
54
54
54
(44)
-
(2)
2
547
Total
Noncontrolling
interests
2
Cost of share-based payments
Draw-down of reserves upon vesting of
44
performance shares
Purchase of Treasury shares
(96)
-
(96)