In millions Note
2011 2010
Income Interest income
6,555 5,699
Interest expense 1,730
1,381 Net interest income
5 4,825
4,318 Net fee and commission income
6 1,542
1,397 Net trading income
7 698
915 Net loss from financial instruments designated at fair value
8 18
20 Net income from financial investments
9 454
310 Other income
10 130
146 Total income
7,631 7,066
Expenses
Employee benefits 11
1,712 1,422
Other expenses 12
1,591 1,503
Goodwill charges 26
– 1,018
Allowances for credit and other losses 13
722 911
Total expenses 4,025
4,854 Share of profits of associates
127 102
Profit before tax 3,733
2,314 Income tax expense
14 443
454
Net profit for the year 3,290
1,860 Attributable to:
Shareholders 3,035
1,632 Non-controlling interests
255 228
3,290 1,860
Basic earnings per ordinary share 15
1.30 0.70
Diluted earnings per ordinary share 15
1.26 0.68
see notes on pages 83 to 150 which form part of these financial statements
CONSOLIDATED INCOME STATEMENT
for the year ended 31 December 2011
78
In millions 2011
2010
Net profit for the year 3,290
1,860
Other comprehensive income:
Foreign currency translation differences for foreign operations 38
187 Share of other comprehensive income of associates
1 12
Available-for-sale financial assets and others Net valuation taken to equity
398 598
Transferred to income statement on sale 425
315 Tax on items taken directly to or transferred from equity
31 28
Other comprehensive income for the year, net of tax 35
80
Total comprehensive income 3,255
1,940 Attributable to:
Shareholders 3,019
1,829 Non-controlling interests
236 111
3,255 1,940
see notes on pages 83 to 150 which form part of these financial statements
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2011
79 DBS Annual Report 2011
Group Company
In millions Note
2011 2010
2011 2010
Assets Cash and balances with central banks
17 25,304
31,203 Singapore Government securities and treasury bills
18 12,503
11,546 Due from banks
25,571 20,306
Financial assets at fair value through profit or loss 19
11,927 10,179
Positive fair values for financial derivatives 39
21,164 16,767
Loans and advances to customers 20
194,275 151,698
Financial investments 21
30,491 26,550
Securities pledged 22
2,634 1,982
Subsidiaries 23
– –
10,957 10,438
Investments in associates 25
949 813
Goodwill on consolidation 26
4,802 4,802
Properties and other fixed assets 27
976 1,025
Investment properties 27
372 358
Deferred tax assets 28
149 102
Other assets 29
9,730 6,379
18 63
Total assets 340,847
283,710 10,975
10,501
Liabilities Due to banks
27,601 18,811
Due to non-bank customers 30
218,992 187,695
Financial liabilities at fair value through profit or loss 31
11,912 10,228
Negative fair values for financial derivatives 39
22,207 17,222
Bills payable 254
601 Current tax liabilities
837 879
Deferred tax liabilities 28
30 40
Other liabilities 32
10,287 6,574
6 5
Other debt securities in issue 33
10,354 2,160
Subordinated term debts 34
5,304 6,398
Total liabilities 307,778
250,608 6
5
Net assets 33,069
33,102 10,969
10,496
Equity Share capital
35 9,350
8,780 9,350
8,780 Treasury shares
35 154
84 115
– Other reserves
36 7,075
7,084 86
79 Revenue reserves
36 12,523
10,819 1,648
1,637
Shareholders’ funds 28,794
26,599 10,969
10,496 Non-controlling interests
37 4,275
6,503
Total equity 33,069
33,102 10,969
10,496
Off-balance sheet items Contingent liabilities and commitments
38 138,114
111,949 Financial derivatives
39 1,612,038
1,347,522
see notes on pages 83 to 150 which form part of these financial statements
BALANCE SHEETS
at 31 December 2011
80
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December 2011
Convertible Non-
Ordinary preference
Treasury Other
Revenue controlling
Total In millions
shares shares
shares reserves
reserves Total
interests equity
2011 Balance at 1 January 2011
8,533 247
84 7,084
10,819 26,599
6,503 33,102
Issue of shares upon exercise of share options
19 19
19
Cost of share-based payments 54
54 54
Reclassification of reserves upon exercise of share options
2 2
– –
Draw-down of reserves upon vesting of performance shares
45 45
– –
Issue of shares pursuant to Scrip Dividend Scheme
547 2
549 549
Purchase of Treasury shares 115
115 115
Final dividends paid for previous year
645 645
645
Interim dividends paid for current year
686 686
686
Dividends paid to non- controlling interests
– 275
275
Redemption of preference shares issued by a subsidiary
– 2,112
2,112
Change in non-controlling interests
– 77
77
Total comprehensive income 16
3,035 3,019
236 3,255
Balance at 31 December 2011 9,101
249 154
7,075 12,523
28,794 4,275
33,069 2010
Balance at 1 January 2010 8,188
247 114
6,879 10,173
25,373 4,126
29,499 Issue of shares upon exercise
of share options 16
16 16
Cost of share-based payments 40
40 40
Reclassification of reserves upon exercise of share options
2 2
– –
Draw-down of reserves upon vesting of performance shares
30 30
– –
Issue of shares pursuant to Scrip Dividend Scheme
327 327
327 Final dividends paid for
previous year 320
320 320
Interim dividends paid for current year
666 666
666 Dividends paid to non-
controlling interests –
233 233
Preference shares issued by a subsidiary
– 2,499
2,499 Total comprehensive income
197 1,632
1,829 111
1,940 Balance at 31 December 2010
8,533 247
84 7,084
10,819 26,599
6,503 33,102
see notes on pages 83 to 150 which form part of these financial statements
81 DBS Annual Report 2011
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 December 2011
In millions 2011
2010
Cash flows from operating activities
Net profit for the year 3,290
1,860
Adjustments for non-cash items: Allowances for credit and other losses
722 911
Depreciation of properties and other fixed assets 185
193 Goodwill charges
– 1,018
Share of profits of associates 127
102 Net gain on disposal net of write-off of properties and other fixed assets
6 103
Net income from financial investments 454
310 Net gain on disposal of subsidiary
47 –
Income tax expense 443
454 Profit before changes in operating assets and liabilities
4,006 3,921
IncreaseDecrease in: Due to banks
8,790 9,703
Due to non-bank customers 31,297
9,247 Financial liabilities at fair value through profit or loss
1,684 1,011
Other liabilities including bills payable 8,522
708 Debt securities and borrowings
7,949 1,405
IncreaseDecrease in: Restricted balances with central banks
322 2,857
Singapore Government securities and treasury bills 957
4,414 Due from banks
5,297 1,895
Financial assets at fair value through profit or loss 1,748
1,078 Loans and advances to customers
43,215 22,521
Financial investments 3,509
529 Other assets
8,366 2,246
Tax paid 511
382
Net cash used ingenerated from operating activities 1 1,677
4,847
Cash flows from investing activities Dividends from associates
46 57
Purchase of properties and other fixed assets 177
176 Proceeds from disposal of properties and other fixed assets
47 192
Acquisition of interest in associates 55
75 Proceeds from disposal of associatesjoint ventures
– 136
Net cash used ingenerated from investing activities 2 139
134
Cash flows from financing activities Increase in share capital
570 345
Payment upon maturity of subordinated term debts 1,046
705 Purchase of treasury shares
115 –
Dividends paid to shareholders of the Company 1,331
986 Dividends paid to non-controlling interests
275 233
Payment upon redemption of preference shares 2,112
– Change in non-controlling interests
77 –
Proceeds from issue of preference shares by a subsidiary –
2,499
Net cash used ingenerated from financing activities 3 4,386
920 Exchange translation adjustments 4
19 70
Net change in cash and cash equivalents 1+2+3+4 6,221
5,831
Cash and cash equivalents at 1 January 25,112
19,281
Cash and cash equivalents at 31 December Note 40 18,891
25,112
see notes on pages 83 to 150 which form part of these financial statements 82
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2011
These Notes are integral to the financial statements. The consolidated financial statements for the year ended
31 December 2011 were authorised for issue by the directors on 9 February 2012.
1 DOMICILE AND ACTIVITIES
The Company, DBS Group Holdings Ltd, is incorporated and domiciled in the Republic of Singapore and has its
registered office at 6 Shenton Way, DBS Building Tower One, Singapore 068809.
The Company is listed on the Singapore Exchange. The principal activity of the Company is that of an investment
holding company and the principal activity of its main wholly- owned subsidiary, DBS Bank Ltd the Bank, is the provision of
retail, small and medium-sized enterprise, corporate and investment banking services.
The financial statements relate to the Company and its subsidiaries the Group and the Group’s interests in associates
and joint ventures.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2.1 Basis of preparation
