7
DBS half on half operating profit up 36.6
Net interest income
Fees and commissions Non-interest income
Total revenue
Staff costs Other operating expenses
Operating expenses
Operating profit Goodwill amortisation
Provisions Net profit attributable to members
Cash net profit attributable to members
S million S million
962
251 567
1,529
389 360
749
780 -
47 630
630
1H01 2H01
Change 1,295
388 721
2,017
476 476
952
1,065 131
332 370
501
34.7
54.9 27.2
31.9
22.1 32.4
27.1
36.6 NM
606.0 41.3
20.4
8
S million
962 993
1,046 1,046
989 1,295
2.00 2.04 2.07 1.97 1.78
1.94
1H99 2H99 1H00 2H00 1H01 2H01
Net interest income Net interest margin
gross basis
Interest margins stabilise in second half
2,039 2,257
2000 2001
2.02 1.87
9
Strong fee income growth
Trade finance Deposit-related
Credit card Loan-related
Investment banking Stockbroking
Fund management Others
Total Fee-to-income ratio
S million S million
2000 2001
Change 75
60 33
51 98
77 62
52 509
17.3 110
94 82
81 78
73 72
50 639
18.0 45.8
55.0 147.0
59.0 20.0
5.9 16.3
3.4 25.7
10
Expense growth on target
DBSH excluding DHB and DBSV
a
Staff costs Occupancy expenses
Technology-related expenses Professional and consultancy fees
Others Total excluding DHB and DBSV
DHB DBSV
Restructuring costs Total
Cost-to-income ratio S million
S million 2000
2001 Change
613 147
132
73 280
1,246
- -
-
1,246
42.5 734
172 180
49 311
1,445
218 38
40
1,742
49.1 19.7
16.3 36.0
33.1 11.0
16.0
NM NM
NM
39.8
a Dao Heng Bank “DHB”, DBS Vickers “DBSV” a Dao Heng Bank “DHB”, DBS Vickers “DBSV”
11
16 345
93
749 33
389 87
696
300 600
900
Managing our costs and investments
IT-related Expenses
Staff Costs
Professional Consulting
Total Operating Expenses
excl. DHB DBSV 7
7 53
11
1st Half 2001 2nd Half 2001
S million S million
12
A Year of Transformation
Implementing the strategy
Resilient operating profit
Building three core businesses
Improving the geographical balance
Strong asset quality and capitalisation
13
Building three core businesses
Investment Banking
883 Consumer
Banking 1,528
Treasury 372
Central Operations
148
Operating Revenue 2000
S million S million
Investment Banking
852 Consumer
Banking 1,983
Treasury 561
Central Operations
149
Operating Revenue 2001
Total Operating Revenue S2,931 million
Total Operating Revenue S3,545 million
52 30
13 5
56 24
16 4
14
Credit cards
Singapore Cards in issue ‘000
Receivables outstanding
S million Market position
Hong Kong Cards in issue ‘000
Receivables outstanding
S million Market position
359 326
3 2000
2001 Change
850 1,300
3 450
424
2 25
30
- NM
NM
15
Wealth management
Sales Volume
314 558
322 611
764 222
180 189
174
15 4
200 400
600 800
1000 1200
2H99 1H00
2H00
a Treasury investment products include Growth and equity-linked notes b Unit trusts include Horizon, Ei8ht, Up and other DBSAM programmes
1H01 314
573 544
795
2H01 1,127
S million
Unit trusts
b
Insurance asset plan Treasury investment
products
a
16
to Hong Kong
10 year Bancassurance alliance with CGNU for life and general insurance
Sale of DBS HK’s insurance subsidiaries, DBS Kwong On Insurance and Dao Heng
Assurance, to CGNU
Total proceeds of S112 million of which:
–
S71 million return of book value of subsidiaries
–
S30 million book gain on subsidiaries
–
S11 million upfront advanced payment for bancassurance
Accelerates revenue growth in DBS HK’s wealth management business
Expands DBS sales channels in Hong Kong with the establishment of a specialist sales
force dedicated to insurance and wealth management products
Provides DBS with a dedicated bancassurance product provider without equity investment
DBS retains ownership of customers and concentrates on distribution, leaving product
manufacturing to CGNU
Allows DBS to exit the Hong Kong insurance underwriting business
Transaction Highlights Strategic Rationale
17
Extending Investment Banking capabilities
Equity capital markets 8.9
-83
