1Q17 performance summary
To: Shareholders
The Board of Directors of DBS Group Holdings Ltd (“DBSH” or “the Company”) reports the following:
Unaudited Financial Results for the First Quarter Ended 31 March 2017
Details of the unaudited financial results are in the accompanying Performance Summary.
Dividends
For the first quarter of 2017, no dividend has been declared on DBSH ordinary shares.
By order of the Board
Goh Peng Fong
Group Secretary
28 April 2017
Singapore
More information on the above announcement is available at www.dbs.com/investor
…DBS/
Co. Reg. No. 199901152M
DBS Group Holdings Ltd
12 Marina Boulevard
DBS Asia Central @
Marina Bay Financial
Centre Tower 3
Singapore 018982
Tel: 65.6878 8888
www.dbs.com
Performance Summary
Financial Results
For the First Quarter ended
31 March 2017
(Unaudited)
DBS Group Holdings Ltd
Incorporated in the Republic of Singapore
Company Registration Number: 199901152M
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Contents
Page
Overview
2
Financial Review
Net Interest Income
5
Net Fee and Commission Income
6
Other Non-Interest Income
6
Expenses
7
Allowances for Credit and Other Losses
7
Performance by Business Segments
8
Performance by Geography
11
Customer Loans
14
Non-Performing Assets and Loss Allowance Coverage
15
Customer Deposits
18
Debts Issued
18
Trading Income and Risk
19
Capital Adequacy
20
Unrealised Property Valuation Surplus
21
Financial Statements
Consolidated Income Statement (Unaudited)
22
Consolidated Statement of Comprehensive Income (Unaudited)
23
Balance Sheets (Unaudited)
24
Consolidated Statement of Changes in Equity (Unaudited)
25
Statement of Changes in Equity (Unaudited)
26
Consolidated Cash Flow Statement (Unaudited)
27
Selected Notes to the Interim Financial Statements (Unaudited)
28
Additional Information
Share Capital
29
Interested Party Transactions Pursuant to Listing Rule 920(1)
29
Confirmation of Directors and Executive Officers’ undertakings pursuant to Listing Rule 720(1)
29
Confirmation by the Board
30
1
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
OVERVIEW
DBS Group Holdings Ltd (“DBSH”) prepares its consolidated DBSH Group (“Group”) financial statements in accordance with
Singapore Financial Reporting Standard (“FRS”), 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 2016, with the exception of the following changes adopted with effect from 1 January 2017:
Adoption of the following amendments to accounting standards that are issued by the Accounting Standards Council
and relevant for the Group:
Amendments to FRS 7: Disclosure Initiative
Amendments to FRS 12: Recognition of Deferred Tax Assets for Unrealised Losses
Amendments to FRS 112: Clarification of the scope of the Standard (that was issued as part of Improvements to FRSs
(issued in December 2016))
There is no significant impact on the Group’s financial statements from the adoption of the above amendments to FRSs.
Early adoption of FRS 109 Own Credit Risk and reclassification of Structured Notes and Structured Deposits
FRS 109 Financial Instruments (FRS 109), which has a mandatory adoption date of 1 January 2018, allows for the early
adoption of the requirements for the presentation of gains and losses on financial liabilities designated at fair value through
profit or loss. Under FRS 109, changes to the fair value of such financial liabilities that is attributable to DBSH’ own credit risk
are taken to revenue reserves through other comprehensive income. The amounts are not transferred to the income statement
even when realised. The Group has decided to early adopt this new presentation from 1 January 2017.
Consequent to the new presentation, the Group has classifed all un-bifurcated structured notes and deposits as “designated at
fair value through profit or loss”. There is no impact to the amounts and line items reflected in the consolidated balance sheet
or income statement for prior periods.
2
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
1st Qtr
2017
1st Qtr
2016
% chg
4th Qtr
2016
% chg
1,831
665
390
2,886
1,248
1,638
200
1,438
1,210
35
350
(350)
(10)
45
1,245
1,833
574
458
2,865
1,265
1,600
170
1,430
1,203
1,203
16
(15)
1
(1)
2
18
1
1
NM
NM
NM
NM
NM
3
1,824
515
437
2,776
1,223
1,553
462
1,091
913
913
29
(11)
4
2
5
(57)
32
33
NM
NM
NM
NM
NM
36
298,440
274,129
301,516
480,356
342,452
439,221
313,804
431,984
45,979
394,954
41,873
9
7
9
9
7
9
10
(1)
1
(1)
(1)
3
Net interest margin
1.74
1.85
1.71
Non-interest/total income
36.6
36.0
34.3
Cost/income ratio
43.2
44.2
44.1
Return on assets
1.03
1.08
0.77
equity2
11.1
11.9
8.4
Loan/deposit ratio
87.1
87.4
86.8
1.4
1.0
1.4
26
18
57
14.6
14.0
14.1
15.4
14.3
14.7
16.6
16.0
16.2
7.9
138
7.8
119
7.7
133
1.90
1.92
17.37
1.92
1.92
16.39
1.40
1.40
16.87
Selected income statement items ($m)
Net interest income
Net fee and commission income
Other non-interest income
Total income
Expenses
Profit before allowances
Allowances for credit and other losses
Profit before tax
Net profit
One-time items
Divestment of subsidiary
General allowances
ANZ integration costs
Tax on one-time items
Net profit including one-time items
Selected balance sheet items ($m)
Customer loans
Constant-currency change
Total assets
Customer deposits
Constant-currency change
Total liabilities
Shareholders’ funds
481,570
347,446
434,600
44,609
Key financial ratios (%) (excluding one-time
items)1
Return on
NPL ratio
Specific allowances (loans)/average
loans (bp)
Common Equity Tier 1 capital adequacy
ratio
Tier 1 capital adequacy ratio
Total capital adequacy ratio
ratio3
Leverage
Average all-currency liquidity coverage ratio4
Per share data ($)
Per basic and diluted share
– earnings excluding one-time items
– earnings
– net book value5
Notes:
1
Return on assets, return on equity, specific allowances (loan)/average loans and per share data are computed on an annualised basis.
2
Calculated based on net profit attributable to the shareholders net of dividends on preference shares and other equity instruments. Noncontrolling interests, preference shares and other equity instruments are not included as equity in the computation of return on equity.
3
Leverage Ratio is computed based on MAS Notice 637.
4
Liquidity Coverage Ratio (LCR) is computed based on MAS Notice 649. For average SGD LCR and other disclosures required under MAS Notice
651, refer to https://www.dbs.com/investor/index.html.
5
Non-controlling interests are not included as equity in the computation of net book value per share.
NM Not meaningful.
3
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Net profit rose to a record $1.21 billion, up 1% from a year
ago. Total income increased 1% to $2.89 billion. Business
momentum was healthy with fee income rising to a record.
Productivity gains resulted in 1% reduction in expenses
and a one percentage point improvement in the costincome ratio. Compared to the previous quarter, net profit
rose 33% from higher fee income and lower allowances.
Net interest income of $1.83 billion was stable compared
to a year ago. The impact of softer Singapore-dollar
interest rates was offset by a 7% constant-currency growth
in loans. Compared to the previous quarter, net interest
income was 3% higher on a day-adjusted basis as net
interest margin rose three basis points and loans grew 1%
in constant-currency terms.
Net fee income rose 16% from a year ago to a new high of
$665 million, led by growth in wealth management,
investment banking and transaction services. Other noninterest income fell 15% to $390 million from lower trading
income and a non-recurring gain a year ago. Compared to
the previous quarter, net fee income was 29% higher while
other non-interest income declined 11%.
Expenses declined 1% from a year ago to $1.25 billion
as concerted digitalisation and cost management efforts
yielded productivity gains. Profit before allowances grew
2% from a year ago and 5% from the previous quarter to
$1.64 billion.
Non-performing assets fell slightly from the previous
quarter to $4.83 billion and the non-performing loan rate
was unchanged at 1.4%. Specific allowances amounted
to $200 million or 26 basis points of loans, compared to
38 basis points for full-year 2016. Allowance coverage
was at 103% and at 217% if collateral was considered.
Liquidity and capital were healthy. The average liquidity
coverage ratio during the quarter was 138% and the
loan-deposit ratio was 87%. The Common Equity Tier 1
ratio was at 14.6% while the leverage ratio was at 7.9%.
Including one-time items, net profit was $1.25 billion.
They comprised a gain of $350 million from the
divestment of PWC Building in Singapore, an equivalent
amount set aside as general allowances, ANZ
integration costs of $10 million and a tax impact of $45
million.
4
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET INTEREST INCOME
1st Qtr 2017
Average balance
sheet
1st Qtr 2016
4th Qtr 2016
Average
Average
balance Interest
rate
($m)
($m)
(%)
Interest
($m)
Average
rate
(%)
Average
balance
($m)
Interest
($m)
Average
rate
(%)
257,816
1,679
2.64
242,011
1,673
2.78
259,449
1,681
2.58
41,971
44,860
80,822
257
127
446
2.48
1.15
2.24
42,788
35,657
78,016
243
94
444
2.28
1.06
2.29
41,833
44,280
78,932
248
105
443
2.36
0.94
2.23
Total
425,469
2,509
2.39
398,472
2,454
2.48
424,494
2,477
2.32
Interest-bearing
liabilities
Customer deposits
Other borrowings
Total
341,095
47
53,898
493
185
678
0.59
1.39
0.70
313,147
58,448
371,595
439
182
621
0.56
1.25
0.67
335,352
57,118
392,470
470
183
653
0.56
1.27
0.66
1,831
1.74
1,833
1.85
1,824
1.71
Interest-bearing
assets
Customer non-trade
loans
Trade assets
Interbank assets1
Securities and others
Average
balance
($m)
394,993
Net interest
income/margin2
Notes:
1 Includes non-restricted balances with central banks.
2 Net interest margin is net interest income expressed as a percentage of average interest-bearing assets.
Net interest income was unchanged from a year ago at
$1.83 billion. The impact of an 11 basis points decline in net
interest margin due to softer Singapore-dollar interest rates
was offset by higher interest-bearing asset volumes as
corporate, Singapore housing loans and interbank assets
grew.
Compared to the previous quarter, net interest income rose
3% on a day-adjusted basis as net interest margin
increased three basis points from higher interest rates in
Hong Kong and Singapore. Interest-bearing asset volumes
were stable.
1st Qtr 2017 vs 1st Qtr 2016
Volume and rate analysis ($m)
Increase/(decrease) due to change in
1st Qtr 2017 vs 4th Qtr 2016
Volume
Rate
Net
change
110
(85)
25
(11)
46
35
(5)
24
16
145
21
10
(9)
(63)
16
34
7
82
1
1
11
2
14
23
2
85
15
24
13
87
Interest expense
Customer deposits
Other borrowings
Total
39
(14)
25
20
19
39
59
5
64
8
(10)
(2)
26
16
42
34
6
40
Net impact on net interest income
120
(102)
18
4
43
47
Interest income
Customer non-trade
loans
Trade assets
Interbank assets
Securities and others
Total
Due to change in number of days
Net Interest Income
Volume
Rate
Net
change
(20)
(40)
(2)
7
5
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET FEE AND COMMISSION INCOME
($m)
1st Qtr
2017
1st Qtr
2016
% chg
4th Qtr
2016
% chg
38
41
(7)
37
3
45
157
128
123
222
28
741
22
142
124
114
176
23
642
>100
11
3
8
26
22
15
30
148
80
138
158
11
602
50
6
60
(11)
41
>100
23
76
68
12
87
(13)
665
574
16
515
29
Brokerage
Investment banking
Transaction services1
Loan-related
Cards2
Wealth management
Others
Fee and commission income
Less: Fee and commission
expense
Total
Notes:
1 Includes trade & remittances, guarantees and deposit-related fees.
2 Net of interchange fees paid.
Compared to a year ago, net fee income rose 16% to
$665 million. The growth was led by a 26% increase in
wealth management fees to a quarterly high of $222
million from stronger sales of unit trusts and other
investment products. Transaction service fees increased
11% to $157 million due to higher trade finance and cash
management income. Investment banking fees doubled
to $45 million from higher equity and fixed income fees.
Cards and loan-related fees were also higher.
Compared to the previous quarter, net fee income was
29% higher, led by a 41% increase in wealth
management and 60% increase in loan-related fees.
OTHER NON-INTEREST INCOME
($m)
1st Qtr
2017
1st Qtr
2016
% chg
4th Qtr
2016
% chg
Net trading income1
Net income from investment
securities
Net gain on fixed assets
Others2 (include rental income and share of
profits of associates)
270
315
(14)
397
(32)
102
86
19
25
>100
1
-
NM
-
NM
17
57
(70)
15
13
Total
390
458
(15)
437
(11)
Notes:
1
Net trading income includes valuation adjustments such as bid-offer valuation adjustment, credit valuation adjustment and funding valuation
adjustment.
2
Excludes one-time item.
NM Not meaningful
Compared to a year ago, other non-interest income fell
15% or $68 million from a year ago to $390 million as
trading income fell and a non-recurring gain of $38 million
had been recorded a year ago. Partially offsetting these
declines was higher net income from investment
securities, which rose 19%. Income from treasury
customer sales was little changed as an increase in wealth
management treasury sales was offset by a decline in
corporate treasury sales.
Compared to the previous quarter, other non-interest
income fell 11% as lower trading income was partially
offset by an increase in treasury customer income and
gains from investment securities.
6
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
EXPENSES1
($m)
Staff
Occupancy
Computerisation
Revenue-related
Others
Total
Staff headcount at period-end
Staff headcount at period-end excluding
insourcing staff
Included in the above table were:
Depreciation of properties and other
fixed assets
1st Qtr
2017
1st Qtr
2016
% chg
4th Qtr
2016
% chg
711
100
221
66
150
1,248
706
97
237
67
158
1,265
1
3
(7)
(1)
(5)
(1)
664
107
183
82
187
1,223
7
(7)
21
(20)
(20)
2
22,331
22,082
1
22,194
1
21,673
22,037
(2)
21,689
-
71
67
6
74
(4)
Note:
1 Excludes one-time item.
Compared to the previous quarter, expenses rose 2% due
to higher bonus accruals in line with better financial
performance, partially offset by a decline in other expense
categories due to seasonal factors.
Expenses declined 1% from a year ago to $1.25 billion as
concerted digitalisation and cost management efforts
enabled the Group to support higher business volumes
with fewer resources. Excluding staff that was insourced,
headcount declined 2% from a year ago.
ALLOWANCES FOR CREDIT AND OTHER LOSSES
($m)
1st Qtr
2017
1st Qtr
2016
% chg
4th Qtr
2016
% chg
-
-
-
-
-
Specific allowances (SP) for loans2
193
123
57
432
(55)
Singapore
Hong Kong
Rest of Greater China
South and Southeast Asia
Rest of the World
123
10
11
38
11
23
23
16
52
9
>100
(57)
(31)
(27)
22
184
53
23
83
89
(33)
(81)
(52)
(54)
(88)
5
47
(89)
15
(67)
198
170
16
447
(56)
2
-
NM
15
(87)
200
170
18
462
(57)
General allowances (GP)1
Specific allowances for loans &
other credit exposures
Specific allowances for other credit
exposures
Specific allowances (SP) for securities, properties
and other assets
Total
Notes:
1
Excludes one-time item.
2
Specific allowances for loans are classified according to where the borrower is incorporated.
NM Not Meaningful
Specific allowances amounted to $200 million or 26
basis points of loans. While higher than a year ago,
they were less than half the amount of the previous
quarter as charges fell across all geographical
regions. As with the previous quarter, a significant
portion of the charges was for exposures in the oil
and gas support services sector.
7
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY BUSINESS SEGMENTS
($m)
Consumer
Banking/
Wealth
Management
Institutional
Banking
Treasury
Markets
Others
Total
Selected income statement items
1st Qtr 20171
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Profit before tax
693
466
1,159
597
28
534
871
448
1,319
423
140
756
128
59
187
133
54
139
82
221
95
32
94
1,831
1,055
2,886
1,248
200
1,438
4th Qtr 2016
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Profit before tax
703
378
1,081
656
35
390
896
359
1,255
460
504
291
157
107
264
145
119
68
108
176
(38)
(77)
291
1,824
952
2,776
1,223
462
1,091
1st Qtr 2016
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Profit before tax
645
377
1,022
558
27
437
868
443
1,311
420
134
757
119
188
307
137
170
201
24
225
150
9
66
1,833
1,032
2,865
1,265
170
1,430
8
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
Consumer
Banking/
Wealth
Management
Institutional
Banking
Treasury
Markets
Others
Total
97,533
228,497
104,530
44,681
191,842
19
11
159,008
4
3
45,074
2
1
36,060
49
56
475,241
5,115
480,356
431,984
74
71
96,405
231,929
102,701
45,418
187,387
32
10
167,598
7
10
47,836
5
1
31,779
83
53
90,252
213,646
89,524
40,683
172,808
12
10
148,440
4
3
46,323
3
1
27,383
58
53
Selected balance sheet and other
items2
31 Mar 2017
Total assets before goodwill and
intangibles
Goodwill and intangibles
Total assets
Total liabilities
Capital expenditure for 1st Qtr 2017
Depreciation for 1st Qtr 2017
31 Dec 2016
Total assets before goodwill and
intangibles
Goodwill and intangibles
Total assets
Total liabilities
Capital expenditure for 4th Qtr 2016
Depreciation for 4th Qtr 2016
31 Mar 2016
Total assets before goodwill and
intangibles
Goodwill and intangibles
Total assets
Total liabilities
Capital expenditure for 1st Qtr 2016
Depreciation for 1st Qtr 2016
476,453
5,117
481,570
434,600
127
74
434,105
5,116
439,221
394,954
77
67
Notes:
1 Non-interest income, expenses, allowances for credit and other losses and profit before tax exclude one-time items.
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.
The various business segments are described below:
Consumer Banking/ Wealth Management
Consumer Banking/ Wealth Management 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 a year ago, profit before tax rose 22% to a new
high of $534 million. Total income grew 13% to a record
$1.16 billion as net interest income rose 7%, while noninterest income rose 24% from continued customer
acquisition and stronger cross-selling of products. Expenses
were 7% higher at $597 million while allowances were little
changed at $28 million.
Compared to the previous quarter, total income grew 7% as
non-interest income increased 23% from higher investment
and insurance products sales. Net interest income was
stable on a day-adjusted basis. As expenses and
allowances were both lower, profit before tax rose 37%.
Institutional Banking
Institutional Banking provides financial services and
products to institutional clients including bank and non-bank
financial institutions, government-linked companies, large
9
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
corporates and small and medium sized businesses.
The business focuses on broadening and deepening
customer relationships. Products and services comprise
the full range of credit facilities from short-term working
capital financing to specialised lending. It also provides
global transactional services such as cash management,
trade finance and securities and fiduciary services;
treasury and markets products; corporate finance and
advisory banking as well as capital markets solutions.
Compared to a year ago, profit before tax was little
changed at $756 million. Total income increased 1% to
$1.32 billion from higher cash management and
investment banking income. These increases were
partially offset by lower treasury customer activities.
Expenses increased 1% to $423 million, while
allowances rose marginally by $6 million to $140 million.
Compared to the previous quarter, profit before tax more
than doubled to $756 million as allowances fell 72% due
to lower charges for exposures to the oil and gas
support services sector. Income increased 5% as
contributions were higher across all products, driven by
treasury customer activities, cash management
contribution and lending activities. Expenses were 8%
lower.
Compared to a year ago, profit before tax declined 68% to
$54 million from lower income. Total income declined 39% to
$187 million as lower income from interest rate products was
partially offset by higher credit product contributions.
Expenses were 3% lower at $133 million due to lower staff
and business-related expenses.
Compared to the previous quarter, profit before tax was 55%
lower. Total income declined 29% due to lower contributions
from interest rate products, partially offset by higher equity
product contributions. Expenses were 8% lower as
business-related expenses fell.
Income from sale of treasury products offered to customers
of Consumer Banking/Wealth Management (CBG) and
Institutional Banking (IBG) is not reflected in the Treasury
Markets segment, but in the respective customer segments.
Income from treasury customer activities rose 1% from a
year ago to $304 million as increases in sales of equity
products were offset by lower contributions from interest rate
and foreign exchange products. By segment, treasury
customer income from CBG rose, while income from IBG
declined. Compared to the previous quarter, income from
customer activities rose 19% due to higher contributions
from equity, interest rate and fixed income products.
Others
Treasury Markets
Treasury Markets’ activities primarily include structuring,
market-making and trading across a broad range of
treasury products.
Others encompasses a range of activities from corporate
decisions and includes income and expenses not attributed
to other business segments, including capital and balance
sheet management, funding and liquidity. DBS Vickers
Securities and Islamic Bank of Asia are also included in this
segment.
10
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY GEOGRAPHY
S’pore
Hong
Kong
Rest of
Greater
China
South and
Southeast Asia
Rest of
the World
Total
Selected income statement items
1st Qtr 20171
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Profit before tax
Income tax expense
Net profit
1,184
686
1,870
734
140
996
113
850
351
173
524
230
20
274
46
228
119
89
208
146
17
45
7
38
118
77
195
112
25
58
14
44
59
30
89
26
(2)
65
15
50
1,831
1,055
2,886
1,248
200
1,438
195
1,210
4th Qtr 2016
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Profit before tax
Income tax expense
Net profit
1,189
595
1,784
640
197
947
93
822
342
170
512
273
107
132
21
111
118
103
221
173
83
(35)
10
(45)
117
61
178
112
68
(2)
(6)
4
58
23
81
25
7
49
28
21
1,824
952
2,776
1,223
462
1,091
146
913
1st Qtr 2016
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Profit before tax
Income tax expense
Net profit
1,243
668
1,911
767
53
1,091
124
936
330
174
504
228
29
247
38
209
115
102
217
162
28
27
4
23
99
71
170
86
43
41
22
19
46
17
63
22
17
24
8
16
1,833
1,032
2,865
1,265
170
1,430
196
1,203
($m)
11
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
Selected balance sheet items
31 Mar 2017
Total assets before goodwill and
intangibles
Goodwill and intangibles
Total assets
Non-current assets2
Gross customer loans
S’pore
Hong
Kong
Rest of
Greater
China
South and
Southeast Asia
Rest of
the World
Total
317,918
5,083
323,001
1,553
197,055
71,165
32
71,197
368
52,544
40,325
40,325
79
23,229
20,904
20,904
53
13,283
24,929
24,929
6
16,831
475,241
5,115
480,356
2,059
302,942
316,908
5,083
321,991
1,941
198,037
73,338
34
73,372
382
54,222
40,436
40,436
80
22,852
21,613
21,613
53
13,976
24,158
24,158
6
16,328
476,453
5,117
481,570
2,462
305,415
292,719
5,083
297,802
1,958
185,066
65,642
33
65,675
364
49,398
37,801
37,801
80
20,169
19,000
19,000
46
11,403
18,943
18,943
7
11,629
434,105
5,116
439,221
2,455
277,665
31 Dec 2016
Total assets before goodwill and
Intangibles
Goodwill and intangibles
Total assets
Non-current assets2
Gross customer loans
31 Mar 2016
Total assets before goodwill and
intangibles
Goodwill and intangibles
Total assets
Non-current assets2
Gross customer loans
Notes:
1 Non-interest income, expenses, allowances for credit and other losses and profit before tax exclude one-time items.
2 Includes investments in associates, properties and other fixed assets.
The performance by geography is classified based on
the location in which income and assets are recorded.
Hong Kong comprises mainly DBS Bank (HK) Limited
and DBS HK branch. Rest of Greater China comprises
mainly DBS Bank (China) Ltd, DBS Bank (Taiwan) Ltd
and DBS Taipei branch. South and Southeast Asia
comprises mainly PT Bank DBS Indonesia, DBS India
branches and DBS Labuan branch. All results are
prepared in accordance with Singapore Financial
Reporting Standard (“FRS”), as modified by the
requirements of MAS Notice to Banks No. 612.
Compared to the previous quarter, net profit was 3%
higher. Total income rose 5%. Net interest income was
stable as the impact of a higher net interest margin was
partially offset by lower loan volumes. Non-interest
income increased 15% as wealth management, loanrelated and investment banking fees rose, while trading
income fell. Expenses were 15% higher largely from
higher bonus accruals in line with better financial
performance. Profit before allowances was little changed.
Total allowances declined $57 million from lower specific
allowances as non-performing loan formation moderated.
Singapore
Hong Kong
Net profit declined 9% to $850 million from a year ago.
Total income was 2% lower at $1.87 billion. Net interest
income declined 5% to $1.18 billion from lower net
interest margin, partially offset by higher loan volumes.
Non-interest income rose 3%, led by higher contributions
from wealth management, investment banking and
treasury customer activities, and partially offset by lower
trading income. Expenses declined 4% to $734 million
largely from digitisation and cost management efforts.
Profit before allowances was little changed at $1.14
billion. Total allowances rose $87 million to $140 million
from higher specific allowances.
Currency effects were minimal compared to a year ago and
the previous quarter.
Net profit rose 9% to $228 million from a year ago. Net
interest income rose 6% to $351 million from higher asset
volumes while net interest margin was stable. Non-interest
income was little changed at $173 million as higher fee
income from capital markets, cards, cash management and
wealth management was offset by lower trading income
and treasury customer activities. Expenses were flat.
Allowances declined $9 million to $20 million as lower
specific allowances were partially offset by higher general
allowances.
12
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Compared to the previous quarter, net profit doubled from
lower specific allowances. Total income rose 2%. Net
interest income grew 3% from higher net interest margin.
Non-interest income was 2% higher as higher fee income
led by contributions from wealth management activities and
cards was partially offset by lower trading income.
Expenses declined 16% from non-recurring items booked in
the previous quarter. Total allowances fell $87 million to
$20 million from lower specific allowances.
South and Southeast Asia
Net profit doubled to $44 million from $19 million a year
ago. Total income was 15% higher at $195 million as net
interest income grew 19% to $118 million from higher loan
volumes, while non-interest income rose 8% to $77 million
from higher trading income. Expenses increased 30% to
$112 million from higher general expenses. Total
allowances fell $18 million to $25 million from lower specific
and general allowances.
Rest of Greater China
Net profit rose 65% from a year ago to $38 million as
expenses and specific allowances were lower. Net interest
income grew 3% to $119 million from higher loan volumes.
Non-interest income declined 13% to $89 million as trading
income fell, partially offset by higher fee income. Total
income declined 4% to $208 million while expenses fell at a
faster pace of 10% to $146 million, resulting in profit before
allowances rising 13% to $62 million. Total allowances fell
from $28 million to $17 million as specific allowances
declined, partially offset by higher general allowances.
Compared to the previous quarter, net profit rose to $38
million from a net loss of $45 million. Total income was 6%
lower. Net interest income was little changed while noninterest income fell 14% from lower trading income, partially
offset by higher fee income. Expenses declined 16% from
lower staff and non-staff costs. Total allowances declined
$66 million to $17 million from lower specific allowances.
Compared to the previous quarter, net profit rose to $44
million from $4 million. Total income was 10% higher from
trading and fee income. Net interest income was little
changed. Expenses were stable, while total allowances fell
$43 million to $25 million from lower specific allowances.
Rest of the World
Net profit rose to $50 million from $16 million a year ago.
Total income was 41% higher at $89 million as both net
interest and non-interest income increased. Expenses were
$4 million higher at $26 million. Total allowances fell from
$17 million to a net write-back of $2 million as specific
allowances declined and general allowances were written
back.
Compared to the previous quarter, total income rose 10%
from higher treasury customer activities. Expenses were
stable, while total allowances fell from $7 million to a net
write-back of $2 million. Net profit more than doubled to $50
million from the previous quarter.
13
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CUSTOMER LOANS
($m)
31 Mar 2017
31 Dec 2016
31 Mar 2016
302,942
305,415
277,665
1,272
3,230
298,440
1,270
2,629
301,516
792
2,744
274,129
By business unit
Consumer Banking/ Wealth Management
Institutional Banking
Others
Total (Gross)
94,810
204,773
3,359
302,942
95,085
207,282
3,048
305,415
88,637
187,581
1,447
277,665
By geography2
Singapore
Hong Kong
Rest of Greater China
South and Southeast Asia
Rest of the World
Total (Gross)
145,816
49,087
42,650
25,732
39,657
302,942
145,025
50,223
43,060
27,389
39,718
305,415
136,221
46,250
39,531
26,397
29,266
277,665
Gross
Less:
Specific allowances
General allowances1
Net total
By industry
Manufacturing
Building and construction
Housing loans
General commerce
Transportation, storage & communications
Financial institutions, investment & holding companies
Professionals & private individuals (excluding housing
loans)
Others
Total (Gross)
30,690
57,565
64,629
46,796
31,218
16,594
31,235
58,358
64,465
46,881
31,964
16,742
30,808
54,403
59,391
42,135
24,961
13,243
24,692
30,758
302,942
25,091
30,679
305,415
23,441
29,283
277,665
By currency
Singapore dollar
US dollar
Hong Kong dollar
Chinese yuan
Others
Total (Gross)
124,096
100,487
33,502
10,912
33,945
302,942
123,733
102,120
35,588
11,577
32,397
305,415
118,144
83,860
32,691
16,180
26,790
277,665
Notes:
1 The methodology for allocating general allowances was modified in First Quarter 2017 to harmonise the treatment between loans and nonloan assets.
2 Loans by geography are classified according to the country of incorporation of the borrower, or the issuing bank in the case of bank
backed export financing.
Gross customer loans fell 1% from the previous quarter to
$303 billion. In constant-currency terms, loans rose 1%
from growth in trade loans.
Compared to a year ago, loans were 7% higher in
constant-currency terms as corporate, trade and
Singapore housing loans grew.
14
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NON-PERFORMING ASSETS AND LOSS ALLOWANCE COVERAGE
31 Mar 2017
By business unit
Consumer Banking/
Wealth Management
Institutional Banking
and Others
Total non-performing
loans (NPL)
Debt securities, contingent
liabilities & others
Total non-performing
assets (NPA)
By geography
Singapore
Hong Kong
Rest of Greater China
South and Southeast
Asia
Rest of the World
Total non-performing
loans (NPL)
Debt securities, contingent
liabilities & others
Total non-performing
Assets (NPA)
Loss Allowance
Coverage
Specific allowances
General allowances
Total allowances
Total allowances/ NPA
Total allowances/
unsecured NPA
31 Mar 2016
31 Dec 2016
NPA
($m)
NPL
(% of
loans)
SP
($m)
444
0.5
78
3,920
1.9
4,364
1.4
NPA
($m)
NPL
(% of
loans)
SP
($m)
NPA
($m)
NPL
(% of
loans)
SP
($m)
430
0.5
76
336
0.4
67
1,194
3,986
1.9
1,194
2,357
1.2
725
1,272
4,416
1.4
1,270
2,693
1.0
792
271
355
-
116
-
908
469
-
220
440
4,833
-
1,492
4,856
-
1,541
3,048
2,015
619
422
1.4
1.3
1.0
513
175
131
1,725
687
432
1.2
1.4
1.0
383
187
136
492
541
414
0.4
1.2
1.0
116
107
99
937
3.6
311
1,188
4.3
425
888
3.4
418
371
0.9
142
384
1.0
139
358
1.2
52
4,364
1.4
1,272
4,416
1.4
1,270
2,693
1.0
792
-
469
-
220
440
-
271
355
-
4,833
-
1,492
4,856
-
1,541
3,048
-
116
908
1,492
3,494
4,986
103%
1,541
3,166
4,707
97%
908
3,182
4,090
134%
217%
210%
286%
15
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
By industry
Manufacturing
Building and construction
Housing loans
General commerce
Transportation, storage &
communications
Financial institutions, investment &
holding companies
Professionals & private individuals
(excluding housing loans)
Others
Total non-performing loans
Debt securities, contingent liabilities &
others
Total non-performing assets
($m)
31 Mar 2017
31 Dec 2016
31 Mar 2016
NPA
SP
NPA
SP
NPA
SP
788
283
145
831
257
94
7
257
904
381
134
880
298
136
8
271
680
339
119
773
248
104
6
174
1,702
450
1,427
316
286
95
71
11
83
15
52
2
279
72
280
71
210
61
265
4,364
124
1,272
327
4,416
155
1,270
234
2,693
102
792
469
220
440
271
355
116
4,833
1,492
4,856
1,541
3,048
908
31 Mar 2017
31 Dec 2016
31 Mar 2016
NPA
SP
NPA
SP
NPA
SP
3,412
675
746
4,833
287
459
746
1,492
3,439
792
625
4,856
338
578
625
1,541
2,213
592
243
3,048
221
444
243
908
495
141
3
639
86
91
3
180
467
139
7
613
91
93
7
191
473
181
9
663
58
130
9
197
By loan grading
Non-performing assets
Substandard
Doubtful
Loss
Total
Of which: restructured assets
Substandard
Doubtful
Loss
Total
($m)
31 Mar 2017
31 Dec 2016
31 Mar 2016
NPA
NPA
NPA
By collateral type
Unsecured non-performing assets
2,296
2,242
1,429
Secured non-performing assets by collateral type
Properties
Shares and debentures
Fixed deposits
Others
Total
916
242
5
1,374
4,833
973
312
11
1,318
4,856
723
271
20
605
3,048
16
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
By period overdue
Not overdue
180 days overdue
Total
Non-performing assets declined slightly from the
previous quarter to $4.83 billion. An increase in nonperforming loans due to exposures in the oil and gas
31 Mar 2017
31 Dec 2016
31 Mar 2016
NPA
NPA
NPA
591
970
301
2,971
4,833
705
698
1,215
2,238
4,856
624
519
463
1,442
3,048
support services sector in Singapore was offset by a
net reduction of $170 million of non-performing assets
in India that were disposed of in a sale.
17
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CUSTOMER DEPOSITS
($m)
By currency and product
Singapore dollar
Fixed deposits
Savings accounts
Current accounts
Others
US dollar
Fixed deposits
Savings accounts
Current accounts
Others
Hong Kong dollar
Fixed deposits
Savings accounts
Current accounts
Others
Chinese yuan
Fixed deposits
Savings accounts
Current accounts
Others
Others
Fixed deposits
Savings accounts
Current accounts
Others
Total
Fixed deposits
Savings accounts
Current accounts
Others
Customer deposits were little changed in constant-currency
terms at $342 billion compared to the previous quarter.
31 Mar 2017
31 Dec 2016
31 Mar 2016
153,844
152,115
15,814
108,761
27,455
85
112,107
63,855
16,793
29,731
1,728
36,234
17,933
9,155
8,630
516
9,822
7,096
753
1,818
155
37,168
25,480
5,155
6,350
183
347,446
130,178
140,617
73,984
2,667
141,905
12,933
104,037
24,871
64
95,268
54,345
12,949
26,785
1,189
32,619
18,245
7,323
6,561
490
11,536
8,787
1,389
1,305
55
32,476
22,892
3,742
4,988
854
313,804
117,202
129,440
64,510
2,652
14,680
111,882
27,194
88
109,125
62,584
16,996
27,575
1,970
33,134
15,200
8,844
8,466
624
9,852
6,851
925
1,716
360
36,497
25,962
4,688
5,744
103
342,452
125,277
143,335
70,695
3,145
Compared to a year ago, overall deposits rose 7% in
constant-currency terms from higher Singapore dollar
and US dollar deposits.
DEBTS ISSUED
($m)
31 Mar 2017
31 Dec 2016
31 Mar 2016
Subordinated term
Senior medium term notes1
Commercial papers1
Negotiable certificates of deposit1
Other debt securities1
Covered bonds2
2,201
4,924
15,225
2,362
5,854
3,303
3,102
6,410
11,586
2,137
5,385
2,227
3,736
8,797
7,381
993
6,318
1,360
Total
33,869
30,847
28,585
Due within 1 year
Due after 1 year
Total
19,969
13,900
33,869
18,405
12,442
30,847
15,228
debts1
13,357
28,585
Notes:
1 Unsecured
2 Secured
18
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
TRADING INCOME AND RISK
The Group’s market risk appetite framework leverages on the Expected Shortfall (ES) metric to monitor and limit market
risk exposures. ES is calculated using the historical simulation value-at-risk (VaR) approach and averaging the losses
beyond the 97.5% confidence interval over a one-day holding period.
The ES for Treasury Markets’ trading portfolios is shown in the following table.
($m)
As at 31 Mar 2017
Total
Average
22
1 Apr 2016 to 31 Mar 2017
High
Low
23
31
15
Treasury Markets’ trading portfolio experienced two back-testing exceptions from 1 April 2016 to 31 March 2017. The
exceptions occurred in September and December.
The chart below provides the histogram of ES for the Group’s trading book for the period from 1 April 2016 to 31 March
2017.
ES for Treasury Markets Trading Book
80
70
60
No. of Days
50
40
30
20
10
>28
>25-28
>22-25
>19-22
>16-19
25
>20-25
>15-20
>10-15
>5-10
>0-5
>(5)-0
>(10)-(5)
>(15)-(10)
0
100
36
13
2
(3)
(1)
24
>100
(23)
4
2,477
653
1,824
515
397
25
15
952
2,776
664
559
1,223
1,553
462
1,091
146
945
1
4
29
(32)
>100
>100
48
17
8
(3)
3
27
19
31
3
35
1,245
33
1,278
1,203
31
1,234
3
6
4
913
32
945
36
3
35
22
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Consolidated Statement of Comprehensive Income (Unaudited)
In $ millions
Net profit
1st Qtr
2017
1st Qtr
2016
+/(-)
%
4th Qtr
2016
+/(-)
%
1,278
1,234
4
945
35
(62)
(142)
56
112
NM
(6)
(5)
(20)
2
NM
314
(86)
485
(33)
(35)
(>100)
(549)
(19)
NM
(>100)
(13)
(12)
(8)
6
NM
(30)
-
NM
-
NM
117
1,395
293
1,527
(60)
(9)
(448)
497
NM
>100
1,363
32
1,395
1,501
26
1,527
(9)
23
(9)
463
34
497
>100
(6)
>100
Other comprehensive income
Items that may be reclassified subsequently to
income statement:
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
Taxation relating to components of other
comprehensive income
Item that will not be reclassified to income
statement:
Fair value change from own credit risk on financial
liabilities designated at fair value (net of tax)
Other comprehensive income, net of tax
Total comprehensive income
Attributable to:
Shareholders
Non-controlling interests
Note:
NM Not Meaningful
23
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Balance Sheets (Unaudited)
The Group
The Company
31 Mar
2017
31 Dec
20161
31 Mar
2016
Assets
Cash and balances with central banks
Government securities and treasury bills
Due from banks
Derivatives
Bank and corporate securities
Loans and advances to customers
Other assets
Associates
Subsidiaries
Properties and other fixed assets
Goodwill and intangibles
30,943
39,583
27,378
19,037
47,052
298,440
10,749
878
1,181
5,115
26,840
33,401
30,018
25,757
45,417
301,516
11,042
890
1,572
5,117
15,850
37,145
28,595
21,902
42,437
274,129
11,592
944
1,511
5,116
Total assets
480,356
481,570
Liabilities
Due to banks
Deposits and balances from customers
Derivatives
Other liabilities
Other debt securities
Subordinated term debts
Total liabilities
Net assets
19,028
342,452
18,101
18,534
31,668
2,201
431,984
48,372
Equity
Share capital
Other equity instruments
Other reserves
Revenue reserves
Shareholders’ funds
Non-controlling interests
Total equity
In $ millions
Other Information
Net book value per share ($)
(i) Basic and diluted
31 Mar
2017
31 Dec
20161
31 Mar
2016
17
28
18
29
17
58
1
22,409
22,285
20,437
439,221
22,454
22,332
20,513
15,915
347,446
24,497
15,895
27,745
3,102
434,600
46,970
15,439
313,804
21,251
15,875
24,849
3,736
394,954
44,267
28
46
2,502
646
3,222
19,232
22
50
2,400
645
3,117
19,215
22
33
2,406
379
2,840
17,673
10,775
1,812
4,469
28,923
45,979
10,670
1,812
4,322
27,805
44,609
10,192
803
6,923
23,955
41,873
10,786
1,812
88
6,546
19,232
10,690
1,812
168
6,545
19,215
10,214
803
83
6,573
17,673
2,393
48,372
2,361
46,970
2,394
44,267
19,232
19,215
17,673
17.37
16.87
16.39
6.85
6.86
6.73
Note:
1 Audited
24
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Consolidated Statement of Changes in Equity (Unaudited)
The Group
Attributable to shareholders of the Company
In $ millions
Share
Capital
Balance at 1 January 2017
10,670
Draw-down of reserves upon
vesting of performance shares
Other equity
instruments
1,812
105
Total
Other Revenue Shareholders’
funds
reserves reserves
4,322
27,805
(105)
26
78
44,609
Noncontrolling
interests
Total
equity
2,361
46,970
-
-
26
(19)
1,363
148
(78)
(19)
1,215
32
26
(19)
1,395
Balance at 31 March 2017
10,775
1,812
4,469
28,923
45,979
2,393
48,372
Balance at 1 January 2016
10,114
(28)
803
6,705
22,752
40,374
(28)
2,422
42,796
(28)
Cost of share-based payments
Transfers
Dividends paid to shareholders1
Total comprehensive income
Purchase of treasury shares
Draw-down of reserves upon
vesting of performance shares
106
Cost of share-based payments
Change in non-controlling
interests
Total comprehensive income
Balance at 31 March 2016
(106)
-
-
26
26
26
-
10,192
803
(54)
(54)
298
1,203
1,501
26
1,527
6,923
23,955
41,873
2,394
44,267
Note:
1 Distributions paid on capital securities classified as equity
25
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Statement of Changes in Equity (Unaudited)
The Company
In $ millions
Balance at 1 January 2017
Transfer of treasury shares
Draw-down of reserves upon vesting of
performance shares
Cost of share-based payments
Dividends paid to shareholders1
Total comprehensive income
Balance at 31 March 2017
Balance at 1 January 2016
Purchase of treasury shares
Transfer of treasury shares
Draw-down of reserves upon vesting of
performance shares
Cost of share-based payments
Total comprehensive income
Balance at 31 March 2016
Share
capital
Other equity
instruments
Other
reserves
Revenue
reserves
Total
equity
10,690
1,812
168
6,545
19,215
96
96
(105)
(105)
26
10,786
10,144
1,812
80
The Board of Directors of DBS Group Holdings Ltd (“DBSH” or “the Company”) reports the following:
Unaudited Financial Results for the First Quarter Ended 31 March 2017
Details of the unaudited financial results are in the accompanying Performance Summary.
Dividends
For the first quarter of 2017, no dividend has been declared on DBSH ordinary shares.
By order of the Board
Goh Peng Fong
Group Secretary
28 April 2017
Singapore
More information on the above announcement is available at www.dbs.com/investor
…DBS/
Co. Reg. No. 199901152M
DBS Group Holdings Ltd
12 Marina Boulevard
DBS Asia Central @
Marina Bay Financial
Centre Tower 3
Singapore 018982
Tel: 65.6878 8888
www.dbs.com
Performance Summary
Financial Results
For the First Quarter ended
31 March 2017
(Unaudited)
DBS Group Holdings Ltd
Incorporated in the Republic of Singapore
Company Registration Number: 199901152M
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Contents
Page
Overview
2
Financial Review
Net Interest Income
5
Net Fee and Commission Income
6
Other Non-Interest Income
6
Expenses
7
Allowances for Credit and Other Losses
7
Performance by Business Segments
8
Performance by Geography
11
Customer Loans
14
Non-Performing Assets and Loss Allowance Coverage
15
Customer Deposits
18
Debts Issued
18
Trading Income and Risk
19
Capital Adequacy
20
Unrealised Property Valuation Surplus
21
Financial Statements
Consolidated Income Statement (Unaudited)
22
Consolidated Statement of Comprehensive Income (Unaudited)
23
Balance Sheets (Unaudited)
24
Consolidated Statement of Changes in Equity (Unaudited)
25
Statement of Changes in Equity (Unaudited)
26
Consolidated Cash Flow Statement (Unaudited)
27
Selected Notes to the Interim Financial Statements (Unaudited)
28
Additional Information
Share Capital
29
Interested Party Transactions Pursuant to Listing Rule 920(1)
29
Confirmation of Directors and Executive Officers’ undertakings pursuant to Listing Rule 720(1)
29
Confirmation by the Board
30
1
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
OVERVIEW
DBS Group Holdings Ltd (“DBSH”) prepares its consolidated DBSH Group (“Group”) financial statements in accordance with
Singapore Financial Reporting Standard (“FRS”), 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 2016, with the exception of the following changes adopted with effect from 1 January 2017:
Adoption of the following amendments to accounting standards that are issued by the Accounting Standards Council
and relevant for the Group:
Amendments to FRS 7: Disclosure Initiative
Amendments to FRS 12: Recognition of Deferred Tax Assets for Unrealised Losses
Amendments to FRS 112: Clarification of the scope of the Standard (that was issued as part of Improvements to FRSs
(issued in December 2016))
There is no significant impact on the Group’s financial statements from the adoption of the above amendments to FRSs.
Early adoption of FRS 109 Own Credit Risk and reclassification of Structured Notes and Structured Deposits
FRS 109 Financial Instruments (FRS 109), which has a mandatory adoption date of 1 January 2018, allows for the early
adoption of the requirements for the presentation of gains and losses on financial liabilities designated at fair value through
profit or loss. Under FRS 109, changes to the fair value of such financial liabilities that is attributable to DBSH’ own credit risk
are taken to revenue reserves through other comprehensive income. The amounts are not transferred to the income statement
even when realised. The Group has decided to early adopt this new presentation from 1 January 2017.
Consequent to the new presentation, the Group has classifed all un-bifurcated structured notes and deposits as “designated at
fair value through profit or loss”. There is no impact to the amounts and line items reflected in the consolidated balance sheet
or income statement for prior periods.
2
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
1st Qtr
2017
1st Qtr
2016
% chg
4th Qtr
2016
% chg
1,831
665
390
2,886
1,248
1,638
200
1,438
1,210
35
350
(350)
(10)
45
1,245
1,833
574
458
2,865
1,265
1,600
170
1,430
1,203
1,203
16
(15)
1
(1)
2
18
1
1
NM
NM
NM
NM
NM
3
1,824
515
437
2,776
1,223
1,553
462
1,091
913
913
29
(11)
4
2
5
(57)
32
33
NM
NM
NM
NM
NM
36
298,440
274,129
301,516
480,356
342,452
439,221
313,804
431,984
45,979
394,954
41,873
9
7
9
9
7
9
10
(1)
1
(1)
(1)
3
Net interest margin
1.74
1.85
1.71
Non-interest/total income
36.6
36.0
34.3
Cost/income ratio
43.2
44.2
44.1
Return on assets
1.03
1.08
0.77
equity2
11.1
11.9
8.4
Loan/deposit ratio
87.1
87.4
86.8
1.4
1.0
1.4
26
18
57
14.6
14.0
14.1
15.4
14.3
14.7
16.6
16.0
16.2
7.9
138
7.8
119
7.7
133
1.90
1.92
17.37
1.92
1.92
16.39
1.40
1.40
16.87
Selected income statement items ($m)
Net interest income
Net fee and commission income
Other non-interest income
Total income
Expenses
Profit before allowances
Allowances for credit and other losses
Profit before tax
Net profit
One-time items
Divestment of subsidiary
General allowances
ANZ integration costs
Tax on one-time items
Net profit including one-time items
Selected balance sheet items ($m)
Customer loans
Constant-currency change
Total assets
Customer deposits
Constant-currency change
Total liabilities
Shareholders’ funds
481,570
347,446
434,600
44,609
Key financial ratios (%) (excluding one-time
items)1
Return on
NPL ratio
Specific allowances (loans)/average
loans (bp)
Common Equity Tier 1 capital adequacy
ratio
Tier 1 capital adequacy ratio
Total capital adequacy ratio
ratio3
Leverage
Average all-currency liquidity coverage ratio4
Per share data ($)
Per basic and diluted share
– earnings excluding one-time items
– earnings
– net book value5
Notes:
1
Return on assets, return on equity, specific allowances (loan)/average loans and per share data are computed on an annualised basis.
2
Calculated based on net profit attributable to the shareholders net of dividends on preference shares and other equity instruments. Noncontrolling interests, preference shares and other equity instruments are not included as equity in the computation of return on equity.
3
Leverage Ratio is computed based on MAS Notice 637.
4
Liquidity Coverage Ratio (LCR) is computed based on MAS Notice 649. For average SGD LCR and other disclosures required under MAS Notice
651, refer to https://www.dbs.com/investor/index.html.
5
Non-controlling interests are not included as equity in the computation of net book value per share.
NM Not meaningful.
3
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Net profit rose to a record $1.21 billion, up 1% from a year
ago. Total income increased 1% to $2.89 billion. Business
momentum was healthy with fee income rising to a record.
Productivity gains resulted in 1% reduction in expenses
and a one percentage point improvement in the costincome ratio. Compared to the previous quarter, net profit
rose 33% from higher fee income and lower allowances.
Net interest income of $1.83 billion was stable compared
to a year ago. The impact of softer Singapore-dollar
interest rates was offset by a 7% constant-currency growth
in loans. Compared to the previous quarter, net interest
income was 3% higher on a day-adjusted basis as net
interest margin rose three basis points and loans grew 1%
in constant-currency terms.
Net fee income rose 16% from a year ago to a new high of
$665 million, led by growth in wealth management,
investment banking and transaction services. Other noninterest income fell 15% to $390 million from lower trading
income and a non-recurring gain a year ago. Compared to
the previous quarter, net fee income was 29% higher while
other non-interest income declined 11%.
Expenses declined 1% from a year ago to $1.25 billion
as concerted digitalisation and cost management efforts
yielded productivity gains. Profit before allowances grew
2% from a year ago and 5% from the previous quarter to
$1.64 billion.
Non-performing assets fell slightly from the previous
quarter to $4.83 billion and the non-performing loan rate
was unchanged at 1.4%. Specific allowances amounted
to $200 million or 26 basis points of loans, compared to
38 basis points for full-year 2016. Allowance coverage
was at 103% and at 217% if collateral was considered.
Liquidity and capital were healthy. The average liquidity
coverage ratio during the quarter was 138% and the
loan-deposit ratio was 87%. The Common Equity Tier 1
ratio was at 14.6% while the leverage ratio was at 7.9%.
Including one-time items, net profit was $1.25 billion.
They comprised a gain of $350 million from the
divestment of PWC Building in Singapore, an equivalent
amount set aside as general allowances, ANZ
integration costs of $10 million and a tax impact of $45
million.
4
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET INTEREST INCOME
1st Qtr 2017
Average balance
sheet
1st Qtr 2016
4th Qtr 2016
Average
Average
balance Interest
rate
($m)
($m)
(%)
Interest
($m)
Average
rate
(%)
Average
balance
($m)
Interest
($m)
Average
rate
(%)
257,816
1,679
2.64
242,011
1,673
2.78
259,449
1,681
2.58
41,971
44,860
80,822
257
127
446
2.48
1.15
2.24
42,788
35,657
78,016
243
94
444
2.28
1.06
2.29
41,833
44,280
78,932
248
105
443
2.36
0.94
2.23
Total
425,469
2,509
2.39
398,472
2,454
2.48
424,494
2,477
2.32
Interest-bearing
liabilities
Customer deposits
Other borrowings
Total
341,095
47
53,898
493
185
678
0.59
1.39
0.70
313,147
58,448
371,595
439
182
621
0.56
1.25
0.67
335,352
57,118
392,470
470
183
653
0.56
1.27
0.66
1,831
1.74
1,833
1.85
1,824
1.71
Interest-bearing
assets
Customer non-trade
loans
Trade assets
Interbank assets1
Securities and others
Average
balance
($m)
394,993
Net interest
income/margin2
Notes:
1 Includes non-restricted balances with central banks.
2 Net interest margin is net interest income expressed as a percentage of average interest-bearing assets.
Net interest income was unchanged from a year ago at
$1.83 billion. The impact of an 11 basis points decline in net
interest margin due to softer Singapore-dollar interest rates
was offset by higher interest-bearing asset volumes as
corporate, Singapore housing loans and interbank assets
grew.
Compared to the previous quarter, net interest income rose
3% on a day-adjusted basis as net interest margin
increased three basis points from higher interest rates in
Hong Kong and Singapore. Interest-bearing asset volumes
were stable.
1st Qtr 2017 vs 1st Qtr 2016
Volume and rate analysis ($m)
Increase/(decrease) due to change in
1st Qtr 2017 vs 4th Qtr 2016
Volume
Rate
Net
change
110
(85)
25
(11)
46
35
(5)
24
16
145
21
10
(9)
(63)
16
34
7
82
1
1
11
2
14
23
2
85
15
24
13
87
Interest expense
Customer deposits
Other borrowings
Total
39
(14)
25
20
19
39
59
5
64
8
(10)
(2)
26
16
42
34
6
40
Net impact on net interest income
120
(102)
18
4
43
47
Interest income
Customer non-trade
loans
Trade assets
Interbank assets
Securities and others
Total
Due to change in number of days
Net Interest Income
Volume
Rate
Net
change
(20)
(40)
(2)
7
5
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET FEE AND COMMISSION INCOME
($m)
1st Qtr
2017
1st Qtr
2016
% chg
4th Qtr
2016
% chg
38
41
(7)
37
3
45
157
128
123
222
28
741
22
142
124
114
176
23
642
>100
11
3
8
26
22
15
30
148
80
138
158
11
602
50
6
60
(11)
41
>100
23
76
68
12
87
(13)
665
574
16
515
29
Brokerage
Investment banking
Transaction services1
Loan-related
Cards2
Wealth management
Others
Fee and commission income
Less: Fee and commission
expense
Total
Notes:
1 Includes trade & remittances, guarantees and deposit-related fees.
2 Net of interchange fees paid.
Compared to a year ago, net fee income rose 16% to
$665 million. The growth was led by a 26% increase in
wealth management fees to a quarterly high of $222
million from stronger sales of unit trusts and other
investment products. Transaction service fees increased
11% to $157 million due to higher trade finance and cash
management income. Investment banking fees doubled
to $45 million from higher equity and fixed income fees.
Cards and loan-related fees were also higher.
Compared to the previous quarter, net fee income was
29% higher, led by a 41% increase in wealth
management and 60% increase in loan-related fees.
OTHER NON-INTEREST INCOME
($m)
1st Qtr
2017
1st Qtr
2016
% chg
4th Qtr
2016
% chg
Net trading income1
Net income from investment
securities
Net gain on fixed assets
Others2 (include rental income and share of
profits of associates)
270
315
(14)
397
(32)
102
86
19
25
>100
1
-
NM
-
NM
17
57
(70)
15
13
Total
390
458
(15)
437
(11)
Notes:
1
Net trading income includes valuation adjustments such as bid-offer valuation adjustment, credit valuation adjustment and funding valuation
adjustment.
2
Excludes one-time item.
NM Not meaningful
Compared to a year ago, other non-interest income fell
15% or $68 million from a year ago to $390 million as
trading income fell and a non-recurring gain of $38 million
had been recorded a year ago. Partially offsetting these
declines was higher net income from investment
securities, which rose 19%. Income from treasury
customer sales was little changed as an increase in wealth
management treasury sales was offset by a decline in
corporate treasury sales.
Compared to the previous quarter, other non-interest
income fell 11% as lower trading income was partially
offset by an increase in treasury customer income and
gains from investment securities.
6
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
EXPENSES1
($m)
Staff
Occupancy
Computerisation
Revenue-related
Others
Total
Staff headcount at period-end
Staff headcount at period-end excluding
insourcing staff
Included in the above table were:
Depreciation of properties and other
fixed assets
1st Qtr
2017
1st Qtr
2016
% chg
4th Qtr
2016
% chg
711
100
221
66
150
1,248
706
97
237
67
158
1,265
1
3
(7)
(1)
(5)
(1)
664
107
183
82
187
1,223
7
(7)
21
(20)
(20)
2
22,331
22,082
1
22,194
1
21,673
22,037
(2)
21,689
-
71
67
6
74
(4)
Note:
1 Excludes one-time item.
Compared to the previous quarter, expenses rose 2% due
to higher bonus accruals in line with better financial
performance, partially offset by a decline in other expense
categories due to seasonal factors.
Expenses declined 1% from a year ago to $1.25 billion as
concerted digitalisation and cost management efforts
enabled the Group to support higher business volumes
with fewer resources. Excluding staff that was insourced,
headcount declined 2% from a year ago.
ALLOWANCES FOR CREDIT AND OTHER LOSSES
($m)
1st Qtr
2017
1st Qtr
2016
% chg
4th Qtr
2016
% chg
-
-
-
-
-
Specific allowances (SP) for loans2
193
123
57
432
(55)
Singapore
Hong Kong
Rest of Greater China
South and Southeast Asia
Rest of the World
123
10
11
38
11
23
23
16
52
9
>100
(57)
(31)
(27)
22
184
53
23
83
89
(33)
(81)
(52)
(54)
(88)
5
47
(89)
15
(67)
198
170
16
447
(56)
2
-
NM
15
(87)
200
170
18
462
(57)
General allowances (GP)1
Specific allowances for loans &
other credit exposures
Specific allowances for other credit
exposures
Specific allowances (SP) for securities, properties
and other assets
Total
Notes:
1
Excludes one-time item.
2
Specific allowances for loans are classified according to where the borrower is incorporated.
NM Not Meaningful
Specific allowances amounted to $200 million or 26
basis points of loans. While higher than a year ago,
they were less than half the amount of the previous
quarter as charges fell across all geographical
regions. As with the previous quarter, a significant
portion of the charges was for exposures in the oil
and gas support services sector.
7
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY BUSINESS SEGMENTS
($m)
Consumer
Banking/
Wealth
Management
Institutional
Banking
Treasury
Markets
Others
Total
Selected income statement items
1st Qtr 20171
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Profit before tax
693
466
1,159
597
28
534
871
448
1,319
423
140
756
128
59
187
133
54
139
82
221
95
32
94
1,831
1,055
2,886
1,248
200
1,438
4th Qtr 2016
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Profit before tax
703
378
1,081
656
35
390
896
359
1,255
460
504
291
157
107
264
145
119
68
108
176
(38)
(77)
291
1,824
952
2,776
1,223
462
1,091
1st Qtr 2016
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Profit before tax
645
377
1,022
558
27
437
868
443
1,311
420
134
757
119
188
307
137
170
201
24
225
150
9
66
1,833
1,032
2,865
1,265
170
1,430
8
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
Consumer
Banking/
Wealth
Management
Institutional
Banking
Treasury
Markets
Others
Total
97,533
228,497
104,530
44,681
191,842
19
11
159,008
4
3
45,074
2
1
36,060
49
56
475,241
5,115
480,356
431,984
74
71
96,405
231,929
102,701
45,418
187,387
32
10
167,598
7
10
47,836
5
1
31,779
83
53
90,252
213,646
89,524
40,683
172,808
12
10
148,440
4
3
46,323
3
1
27,383
58
53
Selected balance sheet and other
items2
31 Mar 2017
Total assets before goodwill and
intangibles
Goodwill and intangibles
Total assets
Total liabilities
Capital expenditure for 1st Qtr 2017
Depreciation for 1st Qtr 2017
31 Dec 2016
Total assets before goodwill and
intangibles
Goodwill and intangibles
Total assets
Total liabilities
Capital expenditure for 4th Qtr 2016
Depreciation for 4th Qtr 2016
31 Mar 2016
Total assets before goodwill and
intangibles
Goodwill and intangibles
Total assets
Total liabilities
Capital expenditure for 1st Qtr 2016
Depreciation for 1st Qtr 2016
476,453
5,117
481,570
434,600
127
74
434,105
5,116
439,221
394,954
77
67
Notes:
1 Non-interest income, expenses, allowances for credit and other losses and profit before tax exclude one-time items.
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.
The various business segments are described below:
Consumer Banking/ Wealth Management
Consumer Banking/ Wealth Management 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 a year ago, profit before tax rose 22% to a new
high of $534 million. Total income grew 13% to a record
$1.16 billion as net interest income rose 7%, while noninterest income rose 24% from continued customer
acquisition and stronger cross-selling of products. Expenses
were 7% higher at $597 million while allowances were little
changed at $28 million.
Compared to the previous quarter, total income grew 7% as
non-interest income increased 23% from higher investment
and insurance products sales. Net interest income was
stable on a day-adjusted basis. As expenses and
allowances were both lower, profit before tax rose 37%.
Institutional Banking
Institutional Banking provides financial services and
products to institutional clients including bank and non-bank
financial institutions, government-linked companies, large
9
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
corporates and small and medium sized businesses.
The business focuses on broadening and deepening
customer relationships. Products and services comprise
the full range of credit facilities from short-term working
capital financing to specialised lending. It also provides
global transactional services such as cash management,
trade finance and securities and fiduciary services;
treasury and markets products; corporate finance and
advisory banking as well as capital markets solutions.
Compared to a year ago, profit before tax was little
changed at $756 million. Total income increased 1% to
$1.32 billion from higher cash management and
investment banking income. These increases were
partially offset by lower treasury customer activities.
Expenses increased 1% to $423 million, while
allowances rose marginally by $6 million to $140 million.
Compared to the previous quarter, profit before tax more
than doubled to $756 million as allowances fell 72% due
to lower charges for exposures to the oil and gas
support services sector. Income increased 5% as
contributions were higher across all products, driven by
treasury customer activities, cash management
contribution and lending activities. Expenses were 8%
lower.
Compared to a year ago, profit before tax declined 68% to
$54 million from lower income. Total income declined 39% to
$187 million as lower income from interest rate products was
partially offset by higher credit product contributions.
Expenses were 3% lower at $133 million due to lower staff
and business-related expenses.
Compared to the previous quarter, profit before tax was 55%
lower. Total income declined 29% due to lower contributions
from interest rate products, partially offset by higher equity
product contributions. Expenses were 8% lower as
business-related expenses fell.
Income from sale of treasury products offered to customers
of Consumer Banking/Wealth Management (CBG) and
Institutional Banking (IBG) is not reflected in the Treasury
Markets segment, but in the respective customer segments.
Income from treasury customer activities rose 1% from a
year ago to $304 million as increases in sales of equity
products were offset by lower contributions from interest rate
and foreign exchange products. By segment, treasury
customer income from CBG rose, while income from IBG
declined. Compared to the previous quarter, income from
customer activities rose 19% due to higher contributions
from equity, interest rate and fixed income products.
Others
Treasury Markets
Treasury Markets’ activities primarily include structuring,
market-making and trading across a broad range of
treasury products.
Others encompasses a range of activities from corporate
decisions and includes income and expenses not attributed
to other business segments, including capital and balance
sheet management, funding and liquidity. DBS Vickers
Securities and Islamic Bank of Asia are also included in this
segment.
10
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY GEOGRAPHY
S’pore
Hong
Kong
Rest of
Greater
China
South and
Southeast Asia
Rest of
the World
Total
Selected income statement items
1st Qtr 20171
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Profit before tax
Income tax expense
Net profit
1,184
686
1,870
734
140
996
113
850
351
173
524
230
20
274
46
228
119
89
208
146
17
45
7
38
118
77
195
112
25
58
14
44
59
30
89
26
(2)
65
15
50
1,831
1,055
2,886
1,248
200
1,438
195
1,210
4th Qtr 2016
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Profit before tax
Income tax expense
Net profit
1,189
595
1,784
640
197
947
93
822
342
170
512
273
107
132
21
111
118
103
221
173
83
(35)
10
(45)
117
61
178
112
68
(2)
(6)
4
58
23
81
25
7
49
28
21
1,824
952
2,776
1,223
462
1,091
146
913
1st Qtr 2016
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Profit before tax
Income tax expense
Net profit
1,243
668
1,911
767
53
1,091
124
936
330
174
504
228
29
247
38
209
115
102
217
162
28
27
4
23
99
71
170
86
43
41
22
19
46
17
63
22
17
24
8
16
1,833
1,032
2,865
1,265
170
1,430
196
1,203
($m)
11
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
Selected balance sheet items
31 Mar 2017
Total assets before goodwill and
intangibles
Goodwill and intangibles
Total assets
Non-current assets2
Gross customer loans
S’pore
Hong
Kong
Rest of
Greater
China
South and
Southeast Asia
Rest of
the World
Total
317,918
5,083
323,001
1,553
197,055
71,165
32
71,197
368
52,544
40,325
40,325
79
23,229
20,904
20,904
53
13,283
24,929
24,929
6
16,831
475,241
5,115
480,356
2,059
302,942
316,908
5,083
321,991
1,941
198,037
73,338
34
73,372
382
54,222
40,436
40,436
80
22,852
21,613
21,613
53
13,976
24,158
24,158
6
16,328
476,453
5,117
481,570
2,462
305,415
292,719
5,083
297,802
1,958
185,066
65,642
33
65,675
364
49,398
37,801
37,801
80
20,169
19,000
19,000
46
11,403
18,943
18,943
7
11,629
434,105
5,116
439,221
2,455
277,665
31 Dec 2016
Total assets before goodwill and
Intangibles
Goodwill and intangibles
Total assets
Non-current assets2
Gross customer loans
31 Mar 2016
Total assets before goodwill and
intangibles
Goodwill and intangibles
Total assets
Non-current assets2
Gross customer loans
Notes:
1 Non-interest income, expenses, allowances for credit and other losses and profit before tax exclude one-time items.
2 Includes investments in associates, properties and other fixed assets.
The performance by geography is classified based on
the location in which income and assets are recorded.
Hong Kong comprises mainly DBS Bank (HK) Limited
and DBS HK branch. Rest of Greater China comprises
mainly DBS Bank (China) Ltd, DBS Bank (Taiwan) Ltd
and DBS Taipei branch. South and Southeast Asia
comprises mainly PT Bank DBS Indonesia, DBS India
branches and DBS Labuan branch. All results are
prepared in accordance with Singapore Financial
Reporting Standard (“FRS”), as modified by the
requirements of MAS Notice to Banks No. 612.
Compared to the previous quarter, net profit was 3%
higher. Total income rose 5%. Net interest income was
stable as the impact of a higher net interest margin was
partially offset by lower loan volumes. Non-interest
income increased 15% as wealth management, loanrelated and investment banking fees rose, while trading
income fell. Expenses were 15% higher largely from
higher bonus accruals in line with better financial
performance. Profit before allowances was little changed.
Total allowances declined $57 million from lower specific
allowances as non-performing loan formation moderated.
Singapore
Hong Kong
Net profit declined 9% to $850 million from a year ago.
Total income was 2% lower at $1.87 billion. Net interest
income declined 5% to $1.18 billion from lower net
interest margin, partially offset by higher loan volumes.
Non-interest income rose 3%, led by higher contributions
from wealth management, investment banking and
treasury customer activities, and partially offset by lower
trading income. Expenses declined 4% to $734 million
largely from digitisation and cost management efforts.
Profit before allowances was little changed at $1.14
billion. Total allowances rose $87 million to $140 million
from higher specific allowances.
Currency effects were minimal compared to a year ago and
the previous quarter.
Net profit rose 9% to $228 million from a year ago. Net
interest income rose 6% to $351 million from higher asset
volumes while net interest margin was stable. Non-interest
income was little changed at $173 million as higher fee
income from capital markets, cards, cash management and
wealth management was offset by lower trading income
and treasury customer activities. Expenses were flat.
Allowances declined $9 million to $20 million as lower
specific allowances were partially offset by higher general
allowances.
12
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Compared to the previous quarter, net profit doubled from
lower specific allowances. Total income rose 2%. Net
interest income grew 3% from higher net interest margin.
Non-interest income was 2% higher as higher fee income
led by contributions from wealth management activities and
cards was partially offset by lower trading income.
Expenses declined 16% from non-recurring items booked in
the previous quarter. Total allowances fell $87 million to
$20 million from lower specific allowances.
South and Southeast Asia
Net profit doubled to $44 million from $19 million a year
ago. Total income was 15% higher at $195 million as net
interest income grew 19% to $118 million from higher loan
volumes, while non-interest income rose 8% to $77 million
from higher trading income. Expenses increased 30% to
$112 million from higher general expenses. Total
allowances fell $18 million to $25 million from lower specific
and general allowances.
Rest of Greater China
Net profit rose 65% from a year ago to $38 million as
expenses and specific allowances were lower. Net interest
income grew 3% to $119 million from higher loan volumes.
Non-interest income declined 13% to $89 million as trading
income fell, partially offset by higher fee income. Total
income declined 4% to $208 million while expenses fell at a
faster pace of 10% to $146 million, resulting in profit before
allowances rising 13% to $62 million. Total allowances fell
from $28 million to $17 million as specific allowances
declined, partially offset by higher general allowances.
Compared to the previous quarter, net profit rose to $38
million from a net loss of $45 million. Total income was 6%
lower. Net interest income was little changed while noninterest income fell 14% from lower trading income, partially
offset by higher fee income. Expenses declined 16% from
lower staff and non-staff costs. Total allowances declined
$66 million to $17 million from lower specific allowances.
Compared to the previous quarter, net profit rose to $44
million from $4 million. Total income was 10% higher from
trading and fee income. Net interest income was little
changed. Expenses were stable, while total allowances fell
$43 million to $25 million from lower specific allowances.
Rest of the World
Net profit rose to $50 million from $16 million a year ago.
Total income was 41% higher at $89 million as both net
interest and non-interest income increased. Expenses were
$4 million higher at $26 million. Total allowances fell from
$17 million to a net write-back of $2 million as specific
allowances declined and general allowances were written
back.
Compared to the previous quarter, total income rose 10%
from higher treasury customer activities. Expenses were
stable, while total allowances fell from $7 million to a net
write-back of $2 million. Net profit more than doubled to $50
million from the previous quarter.
13
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CUSTOMER LOANS
($m)
31 Mar 2017
31 Dec 2016
31 Mar 2016
302,942
305,415
277,665
1,272
3,230
298,440
1,270
2,629
301,516
792
2,744
274,129
By business unit
Consumer Banking/ Wealth Management
Institutional Banking
Others
Total (Gross)
94,810
204,773
3,359
302,942
95,085
207,282
3,048
305,415
88,637
187,581
1,447
277,665
By geography2
Singapore
Hong Kong
Rest of Greater China
South and Southeast Asia
Rest of the World
Total (Gross)
145,816
49,087
42,650
25,732
39,657
302,942
145,025
50,223
43,060
27,389
39,718
305,415
136,221
46,250
39,531
26,397
29,266
277,665
Gross
Less:
Specific allowances
General allowances1
Net total
By industry
Manufacturing
Building and construction
Housing loans
General commerce
Transportation, storage & communications
Financial institutions, investment & holding companies
Professionals & private individuals (excluding housing
loans)
Others
Total (Gross)
30,690
57,565
64,629
46,796
31,218
16,594
31,235
58,358
64,465
46,881
31,964
16,742
30,808
54,403
59,391
42,135
24,961
13,243
24,692
30,758
302,942
25,091
30,679
305,415
23,441
29,283
277,665
By currency
Singapore dollar
US dollar
Hong Kong dollar
Chinese yuan
Others
Total (Gross)
124,096
100,487
33,502
10,912
33,945
302,942
123,733
102,120
35,588
11,577
32,397
305,415
118,144
83,860
32,691
16,180
26,790
277,665
Notes:
1 The methodology for allocating general allowances was modified in First Quarter 2017 to harmonise the treatment between loans and nonloan assets.
2 Loans by geography are classified according to the country of incorporation of the borrower, or the issuing bank in the case of bank
backed export financing.
Gross customer loans fell 1% from the previous quarter to
$303 billion. In constant-currency terms, loans rose 1%
from growth in trade loans.
Compared to a year ago, loans were 7% higher in
constant-currency terms as corporate, trade and
Singapore housing loans grew.
14
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NON-PERFORMING ASSETS AND LOSS ALLOWANCE COVERAGE
31 Mar 2017
By business unit
Consumer Banking/
Wealth Management
Institutional Banking
and Others
Total non-performing
loans (NPL)
Debt securities, contingent
liabilities & others
Total non-performing
assets (NPA)
By geography
Singapore
Hong Kong
Rest of Greater China
South and Southeast
Asia
Rest of the World
Total non-performing
loans (NPL)
Debt securities, contingent
liabilities & others
Total non-performing
Assets (NPA)
Loss Allowance
Coverage
Specific allowances
General allowances
Total allowances
Total allowances/ NPA
Total allowances/
unsecured NPA
31 Mar 2016
31 Dec 2016
NPA
($m)
NPL
(% of
loans)
SP
($m)
444
0.5
78
3,920
1.9
4,364
1.4
NPA
($m)
NPL
(% of
loans)
SP
($m)
NPA
($m)
NPL
(% of
loans)
SP
($m)
430
0.5
76
336
0.4
67
1,194
3,986
1.9
1,194
2,357
1.2
725
1,272
4,416
1.4
1,270
2,693
1.0
792
271
355
-
116
-
908
469
-
220
440
4,833
-
1,492
4,856
-
1,541
3,048
2,015
619
422
1.4
1.3
1.0
513
175
131
1,725
687
432
1.2
1.4
1.0
383
187
136
492
541
414
0.4
1.2
1.0
116
107
99
937
3.6
311
1,188
4.3
425
888
3.4
418
371
0.9
142
384
1.0
139
358
1.2
52
4,364
1.4
1,272
4,416
1.4
1,270
2,693
1.0
792
-
469
-
220
440
-
271
355
-
4,833
-
1,492
4,856
-
1,541
3,048
-
116
908
1,492
3,494
4,986
103%
1,541
3,166
4,707
97%
908
3,182
4,090
134%
217%
210%
286%
15
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
By industry
Manufacturing
Building and construction
Housing loans
General commerce
Transportation, storage &
communications
Financial institutions, investment &
holding companies
Professionals & private individuals
(excluding housing loans)
Others
Total non-performing loans
Debt securities, contingent liabilities &
others
Total non-performing assets
($m)
31 Mar 2017
31 Dec 2016
31 Mar 2016
NPA
SP
NPA
SP
NPA
SP
788
283
145
831
257
94
7
257
904
381
134
880
298
136
8
271
680
339
119
773
248
104
6
174
1,702
450
1,427
316
286
95
71
11
83
15
52
2
279
72
280
71
210
61
265
4,364
124
1,272
327
4,416
155
1,270
234
2,693
102
792
469
220
440
271
355
116
4,833
1,492
4,856
1,541
3,048
908
31 Mar 2017
31 Dec 2016
31 Mar 2016
NPA
SP
NPA
SP
NPA
SP
3,412
675
746
4,833
287
459
746
1,492
3,439
792
625
4,856
338
578
625
1,541
2,213
592
243
3,048
221
444
243
908
495
141
3
639
86
91
3
180
467
139
7
613
91
93
7
191
473
181
9
663
58
130
9
197
By loan grading
Non-performing assets
Substandard
Doubtful
Loss
Total
Of which: restructured assets
Substandard
Doubtful
Loss
Total
($m)
31 Mar 2017
31 Dec 2016
31 Mar 2016
NPA
NPA
NPA
By collateral type
Unsecured non-performing assets
2,296
2,242
1,429
Secured non-performing assets by collateral type
Properties
Shares and debentures
Fixed deposits
Others
Total
916
242
5
1,374
4,833
973
312
11
1,318
4,856
723
271
20
605
3,048
16
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
By period overdue
Not overdue
180 days overdue
Total
Non-performing assets declined slightly from the
previous quarter to $4.83 billion. An increase in nonperforming loans due to exposures in the oil and gas
31 Mar 2017
31 Dec 2016
31 Mar 2016
NPA
NPA
NPA
591
970
301
2,971
4,833
705
698
1,215
2,238
4,856
624
519
463
1,442
3,048
support services sector in Singapore was offset by a
net reduction of $170 million of non-performing assets
in India that were disposed of in a sale.
17
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CUSTOMER DEPOSITS
($m)
By currency and product
Singapore dollar
Fixed deposits
Savings accounts
Current accounts
Others
US dollar
Fixed deposits
Savings accounts
Current accounts
Others
Hong Kong dollar
Fixed deposits
Savings accounts
Current accounts
Others
Chinese yuan
Fixed deposits
Savings accounts
Current accounts
Others
Others
Fixed deposits
Savings accounts
Current accounts
Others
Total
Fixed deposits
Savings accounts
Current accounts
Others
Customer deposits were little changed in constant-currency
terms at $342 billion compared to the previous quarter.
31 Mar 2017
31 Dec 2016
31 Mar 2016
153,844
152,115
15,814
108,761
27,455
85
112,107
63,855
16,793
29,731
1,728
36,234
17,933
9,155
8,630
516
9,822
7,096
753
1,818
155
37,168
25,480
5,155
6,350
183
347,446
130,178
140,617
73,984
2,667
141,905
12,933
104,037
24,871
64
95,268
54,345
12,949
26,785
1,189
32,619
18,245
7,323
6,561
490
11,536
8,787
1,389
1,305
55
32,476
22,892
3,742
4,988
854
313,804
117,202
129,440
64,510
2,652
14,680
111,882
27,194
88
109,125
62,584
16,996
27,575
1,970
33,134
15,200
8,844
8,466
624
9,852
6,851
925
1,716
360
36,497
25,962
4,688
5,744
103
342,452
125,277
143,335
70,695
3,145
Compared to a year ago, overall deposits rose 7% in
constant-currency terms from higher Singapore dollar
and US dollar deposits.
DEBTS ISSUED
($m)
31 Mar 2017
31 Dec 2016
31 Mar 2016
Subordinated term
Senior medium term notes1
Commercial papers1
Negotiable certificates of deposit1
Other debt securities1
Covered bonds2
2,201
4,924
15,225
2,362
5,854
3,303
3,102
6,410
11,586
2,137
5,385
2,227
3,736
8,797
7,381
993
6,318
1,360
Total
33,869
30,847
28,585
Due within 1 year
Due after 1 year
Total
19,969
13,900
33,869
18,405
12,442
30,847
15,228
debts1
13,357
28,585
Notes:
1 Unsecured
2 Secured
18
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
TRADING INCOME AND RISK
The Group’s market risk appetite framework leverages on the Expected Shortfall (ES) metric to monitor and limit market
risk exposures. ES is calculated using the historical simulation value-at-risk (VaR) approach and averaging the losses
beyond the 97.5% confidence interval over a one-day holding period.
The ES for Treasury Markets’ trading portfolios is shown in the following table.
($m)
As at 31 Mar 2017
Total
Average
22
1 Apr 2016 to 31 Mar 2017
High
Low
23
31
15
Treasury Markets’ trading portfolio experienced two back-testing exceptions from 1 April 2016 to 31 March 2017. The
exceptions occurred in September and December.
The chart below provides the histogram of ES for the Group’s trading book for the period from 1 April 2016 to 31 March
2017.
ES for Treasury Markets Trading Book
80
70
60
No. of Days
50
40
30
20
10
>28
>25-28
>22-25
>19-22
>16-19
25
>20-25
>15-20
>10-15
>5-10
>0-5
>(5)-0
>(10)-(5)
>(15)-(10)
0
100
36
13
2
(3)
(1)
24
>100
(23)
4
2,477
653
1,824
515
397
25
15
952
2,776
664
559
1,223
1,553
462
1,091
146
945
1
4
29
(32)
>100
>100
48
17
8
(3)
3
27
19
31
3
35
1,245
33
1,278
1,203
31
1,234
3
6
4
913
32
945
36
3
35
22
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Consolidated Statement of Comprehensive Income (Unaudited)
In $ millions
Net profit
1st Qtr
2017
1st Qtr
2016
+/(-)
%
4th Qtr
2016
+/(-)
%
1,278
1,234
4
945
35
(62)
(142)
56
112
NM
(6)
(5)
(20)
2
NM
314
(86)
485
(33)
(35)
(>100)
(549)
(19)
NM
(>100)
(13)
(12)
(8)
6
NM
(30)
-
NM
-
NM
117
1,395
293
1,527
(60)
(9)
(448)
497
NM
>100
1,363
32
1,395
1,501
26
1,527
(9)
23
(9)
463
34
497
>100
(6)
>100
Other comprehensive income
Items that may be reclassified subsequently to
income statement:
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
Taxation relating to components of other
comprehensive income
Item that will not be reclassified to income
statement:
Fair value change from own credit risk on financial
liabilities designated at fair value (net of tax)
Other comprehensive income, net of tax
Total comprehensive income
Attributable to:
Shareholders
Non-controlling interests
Note:
NM Not Meaningful
23
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Balance Sheets (Unaudited)
The Group
The Company
31 Mar
2017
31 Dec
20161
31 Mar
2016
Assets
Cash and balances with central banks
Government securities and treasury bills
Due from banks
Derivatives
Bank and corporate securities
Loans and advances to customers
Other assets
Associates
Subsidiaries
Properties and other fixed assets
Goodwill and intangibles
30,943
39,583
27,378
19,037
47,052
298,440
10,749
878
1,181
5,115
26,840
33,401
30,018
25,757
45,417
301,516
11,042
890
1,572
5,117
15,850
37,145
28,595
21,902
42,437
274,129
11,592
944
1,511
5,116
Total assets
480,356
481,570
Liabilities
Due to banks
Deposits and balances from customers
Derivatives
Other liabilities
Other debt securities
Subordinated term debts
Total liabilities
Net assets
19,028
342,452
18,101
18,534
31,668
2,201
431,984
48,372
Equity
Share capital
Other equity instruments
Other reserves
Revenue reserves
Shareholders’ funds
Non-controlling interests
Total equity
In $ millions
Other Information
Net book value per share ($)
(i) Basic and diluted
31 Mar
2017
31 Dec
20161
31 Mar
2016
17
28
18
29
17
58
1
22,409
22,285
20,437
439,221
22,454
22,332
20,513
15,915
347,446
24,497
15,895
27,745
3,102
434,600
46,970
15,439
313,804
21,251
15,875
24,849
3,736
394,954
44,267
28
46
2,502
646
3,222
19,232
22
50
2,400
645
3,117
19,215
22
33
2,406
379
2,840
17,673
10,775
1,812
4,469
28,923
45,979
10,670
1,812
4,322
27,805
44,609
10,192
803
6,923
23,955
41,873
10,786
1,812
88
6,546
19,232
10,690
1,812
168
6,545
19,215
10,214
803
83
6,573
17,673
2,393
48,372
2,361
46,970
2,394
44,267
19,232
19,215
17,673
17.37
16.87
16.39
6.85
6.86
6.73
Note:
1 Audited
24
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Consolidated Statement of Changes in Equity (Unaudited)
The Group
Attributable to shareholders of the Company
In $ millions
Share
Capital
Balance at 1 January 2017
10,670
Draw-down of reserves upon
vesting of performance shares
Other equity
instruments
1,812
105
Total
Other Revenue Shareholders’
funds
reserves reserves
4,322
27,805
(105)
26
78
44,609
Noncontrolling
interests
Total
equity
2,361
46,970
-
-
26
(19)
1,363
148
(78)
(19)
1,215
32
26
(19)
1,395
Balance at 31 March 2017
10,775
1,812
4,469
28,923
45,979
2,393
48,372
Balance at 1 January 2016
10,114
(28)
803
6,705
22,752
40,374
(28)
2,422
42,796
(28)
Cost of share-based payments
Transfers
Dividends paid to shareholders1
Total comprehensive income
Purchase of treasury shares
Draw-down of reserves upon
vesting of performance shares
106
Cost of share-based payments
Change in non-controlling
interests
Total comprehensive income
Balance at 31 March 2016
(106)
-
-
26
26
26
-
10,192
803
(54)
(54)
298
1,203
1,501
26
1,527
6,923
23,955
41,873
2,394
44,267
Note:
1 Distributions paid on capital securities classified as equity
25
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Statement of Changes in Equity (Unaudited)
The Company
In $ millions
Balance at 1 January 2017
Transfer of treasury shares
Draw-down of reserves upon vesting of
performance shares
Cost of share-based payments
Dividends paid to shareholders1
Total comprehensive income
Balance at 31 March 2017
Balance at 1 January 2016
Purchase of treasury shares
Transfer of treasury shares
Draw-down of reserves upon vesting of
performance shares
Cost of share-based payments
Total comprehensive income
Balance at 31 March 2016
Share
capital
Other equity
instruments
Other
reserves
Revenue
reserves
Total
equity
10,690
1,812
168
6,545
19,215
96
96
(105)
(105)
26
10,786
10,144
1,812
80