6
S million
Excluding the funding costs for BPI, interest margins for 2000 would have been 2.09
Net interest income
1,002 1,430
2,035 2,039
500 1000
1500 2000
2500
1997 1998
1999 2000
2.02 2.02
1.77 1.73
1.5 2.0
2.5
Net interest margin gross
7
Fee to Income Ratio 14.6
14.0 17.3
Proforma for FY00 the Vickers
merger raises DBS’s fee to income ratio
to 21.6
Investment banking 42
85 98
Stockbroking 48
102 77
Trade-related 51
63 75
Fund management 10
20 62
Deposit-related 20
33 60
Loan-related 29
38 51
Credit card 22
25 33
Guarantees 27
28 26
Others 29
29 26
Total fee income 274
423 508
S million 1998
1999 2000
8
Smillion 1999 2000 Change
Net Gains on Trading in Foreign Exchange
90 119
32.0 Net Gains on Sale of Trading
Securities Derivatives
186 55
70.1 Net Gains on Disposal of
Investment Securities: Sale of SPC shares
117 -
100.0 Others
26 41
57.7 Net Gains Arising from
Divestment of DBS Tampines
58 -
100.0 Net Gains on Disposal of Fixed
Assets
1 9
726.6 Others
31 44
39.2 Total Other Income
509 268
47.3
9
Excluding the variance from DKOB, which was consolidated from May 1999, the expense increase would have been 12
Staff costs 529.3
613.2 15.9
Occupancy expenses 138.5
147.4 6.3
Technology-related expenses 108.6
132.4 21.9
Professional consultancy fees 62.8
72.5 15.5
Others 225.5
280.2 24.2
Total 1,064.7
1,245.7 17.0
Cost-to-income 35.2
42.5 S million
1999 2000
Change
10
1,246 1,065
+12 +16
+18 +26
+10 -10
-76 +57
+67 +61
S million
DBS Bank +182m
1999 2000
S ta
ff c
o st
s
+17.0
C o
n su
lta n
cy C
o m
p u
te ris
at io
n A
d ve
rti si
n g
O th
er s
D B
S S
ec u
rit ie
s D
B S
C h
in a
S q
u ar
e D
B S
T h
ai D
a n
u O
th er
s u
b si
d ia
rie s
D K
O B
At the Bank level, staff costs, technology expenses and advertising expenses accounted for 58 of the increase in operating expenses
Most costs tied to specific investments
11
specific, technical projects
1998 1999
2000 2001
1H99 9M00
1H01 • Phone Banking
• Procurement • DBS Securities’ Projects
• Customer Relationship Mgt • Treasury Mkts System
• E-Commerce • Risk Mgt System
• Datawarehouse • Call Centre Automation
• Business Intelligence • Achieve
Technology Procurement
• Cost Profitability Mgt System
Measurement
• Institutional Banking Group Reorganisation
Re-engineering Processing Services
• Process Improvement • Branch Reconfiguration
Customer Service
• POSBank, DTDB DKOB
Integration Strategy Development
• Retail Strategy • Improving Profitability DTDB NPL,
Recapitalisation of DTDB, Sale of DBSL shares, acquisition of BPI
12
DBS Thai Danu Bank 395.3
12.4 382.9
