financial performance 3q09
DBS Group Holdings Ltd
Incorporated in the Republic of Singapore
Company Registration Number: 199901152M
To: Shareholders
The DBS Group Holdings Ltd (“DBSH” or “the Company”) Board of Directors report unaudited financial
results for the third quarter ended 30 September 2009.
For the third quarter of 2009, the Directors have declared an interim one-tier tax-exempt dividend of 2
cents (third quarter 2008: 0 cents) for each DBSH non-voting convertible preference share (“CPS”) and
each DBSH non-voting redeemable CPS, and an interim one-tier tax-exempt dividend of 14 cents (third
quarter 2008: 17 cents) for each DBSH ordinary share. Historical comparisons have been adjusted for
the one-for-two rights issue.
The third quarter 2009 dividends will be payable on 4 December 2009. The DBSH shares will be
quoted ex-dividend on 18 November 2009. Notice is hereby given that the Share Transfer Books and
Register of Members of the Company will be closed on 23 November 2009. Duly completed transfers
received by the Company's Registrar, Tricor Barbinder Share Registration Services of 8 Cross Street
#11-00 PWC Building, Singapore 048424 up to 5.00 p.m. on 20 November 2009 will be registered to
determine shareholders' entitlement to the third quarter 2009 dividend. In respect of ordinary shares in
the securities accounts with The Central Depository (Pte) Limited (“CDP”), the third quarter 2009
dividend will be paid by DBSH to CDP, which will in turn distribute the dividend entitlements to
shareholders.
By order of the Board
Linda Hoon
Group Secretary
5 Nov 2009
Singapore
More information on the above announcement is available at www.dbs.com/investor
Performance Summary
Unaudited Financial Results
For the Third Quarter ended
30 September 2009
DBS Group Holdings Ltd
Incorporated in the Republic of Singapore
Company Registration Number: 199901152M
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Contents
Overview
Net Interest Income
Net Fee and Commission Income
Other Non-Interest Income
Expenses
Allowances for Credit and Other Losses
Performance by Business Segments
Performance by Geography
Customer Loans
Non-Performing Assets and Loss Allowance Coverage
Funding Sources
Customer Deposits
Other Borrowings & Liabilities
Value at Risk and Trading Income
Capital Adequacy
Unrealised Valuation Surplus/(Losses)
Unaudited Consolidated Income Statement
Unaudited Consolidated Statement of Comprehensive Income
Unaudited Balance Sheets
Unaudited Consolidated Statement of Changes in Equity
Unaudited Statement of Changes in Equity
Unaudited Consolidated Cash Flow Statement
Additional Information
Issuance of Ordinary Shares
Adoption of New or Revised FRS and INT FRS
Disclosure on Certain Financial Instruments
Confirmation by the Board
Page
2
4
6
6
7
8
9
12
15
16
19
20
20
21
22
22
23
23
24
25
26
27
28
28
29
31
1
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
OVERVIEW
DBS Group Holdings Ltd (“DBSH”) prepares its condensed consolidated DBSH Group (“Group”) interim financial statements in
accordance with Singapore Financial Reporting Standard (“FRS”) No. 34 Interim Financial Reporting, as modified by the
requirements of Notice to Banks No. 612 “Credit Files, Grading and Provisioning” issued by the Monetary Authority of
Singapore. The accounting policies and methods of computation applied for the current financial periods are consistent with
those applied for the financial year ended 31 December 2008, with the exception of the adoption of new or revised FRS and
Interpretations to FRS (“INT FRS”).
On 1 January and 1 July 20091/, the Group adopted the following new or revised FRS and INT FRS, that are issued by the
Accounting Standard Council (ASC), and are relevant for the Group.
• FRS 1: Presentation of Financial Statements
• FRS 1 Presentation of Financial Statements & FRS 32 Financial Instruments: Presentation – Puttable Financial Instruments
and Obligations Arising on Liquidation
• FRS 27: Consolidated and Separate Financial Statements – Cost of an Investment in a Subsidiary, Jointly Controlled Entity
or Associate
• FRS 102 Share-based Payments – Vesting Conditions and Cancellations
• FRS 107 Financial Instruments: Disclosures – Improving Disclosures about Financial Instruments
• FRS 108: Operating Segments
• Improvements to FRSs (where applicable)
• INT FRS 113: Customer Loyalty Programmes
• INT FRS 116: Hedges of a Net Investment in a Foreign Operation
• INT FRS 118: Transfer of Assets from Customers
Refer to page 28 for more information.
3rd Qtr
2009
3rd Qtr
2008
%
chg
2nd Qtr
2009
%
chg
9 Mths
2009
9 Mths
2008
%
chg
1,140
361
76
1,577
635
942
265
704
1,071
316
11
1,398
578
820
319
522
6
14
>100
13
10
15
(17)
35
1,112
358
322
1,792
631
1,161
466
708
3
1
(76)
(12)
1
(19)
(43)
(1)
3,328
1,036
667
5,031
1,904
3,127
1,145
2,042
3,186
1,011
363
4,560
1,921
2,639
515
2,189
4
2
84
10
(1)
18
>100
(7)
Selected income statement items ($m)
Net interest income
Net fee and commission income
Other non-interest income
Total income
Expenses
Profit before allowances
Allowances for credit and other losses
Profit before tax
Net profit
563
402
40
552
2
1,571
1,673
(6)
563
(23)
379
NM
49
552
2
(23)
1,548
(39)
1,634
(41)
(5)
128,308
33,365
259,470
127,541
29,592
260,241
1
13
-
127,970
35,204
262,948
(5)
(1)
128,308
33,365
259,470
127,541
29,592
260,241
1
13
-
180,185
230,128
25,174
166,448
235,908
20,141
8
(2)
25
179,033
234,274
24,465
1
(2)
3
180,185
230,128
25,174
166,448
235,908
20,141
8
(2)
25
Key financial ratios (%) (excluding one-time
6/
items)
Net interest margin
Non-interest/total income
Cost/income ratio
Return on assets
7/
Return on equity
Loan/deposit ratio
NPL ratio
Specific allowances (loans)/average loans (bp)
2.03
27.7
40.3
0.86
9.08
71.2
2.6
70
1.99
23.4
41.3
0.63
7.93
76.6
1.3
34
2.01
37.9
35.2
0.82
9.10
71.5
2.8
83
2.02
33.9
37.8
0.81
8.65
71.2
2.6
75
2.04
30.1
42.1
0.90
10.91
76.6
1.3
Tier 1 capital adequacy ratio
Total capital adequacy ratio
12.5
16.1
9.7
13.4
12.6
16.2
12.5
16.1
9.7
13.4
2/
One-time items
Net profit including one-time items
Selected balance sheet items ($m)
3/
Customer loans
Interbank assets 4/
Total assets
5/
Customer deposits
Total liabilities
Shareholders’ funds
22
2
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
3rd Qtr
2009
3rd Qtr
2008
2nd Qtr
2009
9 Mths
2009
9 Mths
2008
0.98
0.89
0.96
0.93
1.24
0.98
10.76
0.88
10.38
0.96
10.45
0.92
10.76
1.22
10.38
0.95
0.86
0.93
0.90
1.20
0.95
10.57
0.85
10.28
0.93
10.27
0.89
10.57
1.18
10.28
Per share data ($) 8/
Per basic share
– earnings excluding one-time items and
goodwill charges
– earnings
7/
– net book value
Per diluted share
– earnings excluding one-time items and
goodwill charges
– earnings
– net book value 7/
Notes:
1/ All the FRS and INT FRS were adopted on 1 January 2009, except INT FRS 118: Transfer of Assets from Customers, which was adopted on 1 July 2009
2/ One-time items include restructuring costs, impairment charges for Thai investment and gains on sale of office buildings in Hong Kong
3/ Includes customer loans classified as financial assets at fair value through profit or loss on the balance sheet
4/ Includes interbank assets classified as financial assets at fair value through profit or loss on the balance sheet
5/ Includes customer deposits classified as financial liabilities at fair value through profit or loss on the balance sheet
6/ Return on assets, return on equity, specific allowances (loan)/average loan and per share data for the quarters are computed on an annualised basis
7/ Minority interests are not included as equity in the computation of net book value and return on equity
8/ Adjusted for shares arising from the rights issue in January 2009
NM Not Meaningful
Third-quarter net profit of $563 million was 2% above the
previous quarter as business trends remained healthy and
cost discipline was maintained. Non-performing loans
declined, resulting in lower allowance charges and an
increase in the coverage of non-performing assets.
Compared to a year ago, earnings were 40% higher from
broad-based revenue growth and lower allowances.
Net interest income rose 3% from the previous quarter and
6% from a year ago to a record $1.14 billion. Net fee
income of $361 million was marginally above the previous
quarter’s level and 14% above a year ago mainly from
capital market activities. Trading income declined from the
previous quarter but was better than a year ago.
Investment gains also fell from the previous quarter but
were similar to a year ago.
Expenses of $635 million were maintained around the
previous quarter’s level, with the cost-income ratio at a
healthy 40%.
The non-performing loan rate fell to 2.6% from 2.8% in
the previous quarter mainly due to customer
repayments. The improvement was broad-based
across markets.
The better asset quality resulted in a 43% decline in
allowance charges from the previous quarter to $265
million, with specific allowances falling to 70 basis points
of loans from 83 basis points. Allowance coverage rose
to 90% and to 128% if collateral was considered.
The total capital adequacy ratio stood at 16.1% with tier1 at 12.5%.
Return on assets was 0.86%, which was better than the
previous quarter, while return on equity was maintained
at 9.1%. Both ratios were better than a year ago.
For the nine months, net earnings fell 6% to $1.57 billion,
with an 18% improvement in profit before allowances
offset by higher allowances.
3
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET INTEREST INCOME
Average balance
sheet
3rd Qtr 2009
Average
Average
rate
balance Interest
(%)
($m)
($m)
3rd Qtr 2008
Average
Average
rate
balance Interest
(%)
($m)
($m)
2nd Qtr 2009
Average
Average
rate
balance Interest
(%)
($m)
($m)
Interest-bearing
assets
Customer loans
Interbank assets
Securities
Total
127,454
42,410
52,461
222,325
983
94
402
1,479
3.06
0.88
3.05
2.64
122,205
41,233
50,841
214,279
1,254
243
528
2,025
4.08
2.35
4.13
3.76
127,447
42,582
51,638
221,667
1,017
95
431
1,543
3.20
0.90
3.34
2.79
Interest-bearing
liabilities
Customer deposits
Other borrowings
Total
179,319
26,585
205,904
227
112
339
0.50
1.68
0.65
162,150
40,429
202,579
582
372
954
1.43
3.66
1.87
177,983
28,067
206,050
297
134
431
0.67
1.90
0.84
1,140
2.03
1,071
1.99
1,112
2.01
Net interest
1/
income/margin
9 Mths 2009
Average balance
sheet
Average
balance
($m)
9 Mths 2008
Average Average
Interest
rate balance
($m)
(%)
($m)
Interest
($m)
Average
rate
(%)
Interest-bearing
assets
Customer loans
Interbank assets
Securities
Total
127,692
41,806
50,959
220,457
3,107
296
1,274
4,677
3.26
0.95
3.35
2.84
115,474
40,385
52,765
208,624
3,716
763
1,628
6,107
4.30
2.52
4.12
3.91
Interest-bearing
liabilities
Customer deposits
Other borrowings
Total
177,221
27,488
204,709
912
437
1,349
0.69
2.14
0.88
158,151
40,242
198,393
1,742
1,179
2,921
1.47
3.91
1.97
3,328
2.02
3,186
2.04
Net interest
1/
income/margin
Note:
1/ Net interest margin is net interest income expressed as a percentage of average interest-earning assets
Net interest income rose 3% from the previous quarter to
$1.14 billion. Average asset volumes were little changed.
Interest margins were little changed at 2.03%. Lower
funding costs were offset by reduced asset yields in a low
interest rate environment.
Compared to a year ago, net interest income rose 6%.
Interest margins were four basis points higher as a
result of better credit spreads and lower funding costs,
which more than offset the impact of low market interest
rates. Average asset volumes, particularly loans, were
also higher.
4
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
3rd Qtr 2009 versus 3rd Qtr 2008
Volume and rate analysis ($m)
Increase/(decrease) due to change in
3rd Qtr 2009 versus 2nd Qtr 2009
Volume
Rate
Net
change
Volume
Rate
Net
change
Customer loans
Interbank assets
Securities
54
7
17
(325)
(156)
(143)
(271)
(149)
(126)
-
(47)
(1)
(47)
(1)
Total
78
(624)
(546)
7
7
(39)
(87)
(32)
(80)
61
(131)
(70)
(416)
(129)
(545)
(355)
(260)
(615)
2
(7)
(5)
(75)
(15)
(90)
(73)
(22)
(95)
148
(79)
69
12
3
15
Interest income
Interest expense
Customer deposits
Other borrowings
Total
Net impact on interest income
Due to change in number of days
Net Interest Income
-
13
69
28
9 Mths 2009 versus 9 Mths 2008
Volume and rate analysis ($m)
Increase/(decrease) due to change in
Volume
Rate
Net
change
393
27
(56)
364
(989)
(492)
(294)
(1,775)
(596)
(465)
(350)
(1,411)
210
(387)
(177)
(1,036)
(352)
(1,388)
(826)
(739)
(1,565)
541
(387)
154
Interest income
Customer loans
Interbank assets
Securities
Total
Interest expense
Customer deposits
Other borrowings
Total
Net impact on interest income
Due to change in number of days
(12)
Net Interest Income
142
5
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET FEE AND COMMISSION INCOME
($m)
Stockbroking
Investment banking
Trade and remittances
Loan related
Guarantees
Deposit related
Credit card
Fund management
Wealth management
Others
Total
3rd Qtr
2009
3rd Qtr
2008
% chg
2nd Qtr
2009
% chg
9 Mths
2009
9 Mths
2008
% chg
51
43
56
86
14
21
37
5
34
14
361
31
20
61
77
13
19
38
4
35
18
316
65
>100
(8)
12
8
11
(3)
25
(3)
(22)
14
50
27
59
108
14
22
37
6
21
14
358
2
59
(5)
(20)
(5)
(17)
62
1
129
87
189
290
43
63
107
16
71
41
1,036
120
74
169
249
38
60
107
27
120
47
1,011
8
18
12
16
13
5
(41)
(41)
(13)
2
Net fee and commission income of $361 million was
marginally higher than the previous quarter as capital
market activities remained strong. An increase in wealth
management revenues was helped by performance-related
fees recognised during the quarter. It offset a decline in
loan-related fees, which had benefited in the previous
quarter from several large transactions.
Compared to a year ago, higher contributions from
stockbroking and investment banking resulted in a 14%
increase in fee income.
OTHER NON-INTEREST INCOME
($m)
3rd Qtr
2009
3rd Qtr
2008
%
chg
2nd Qtr
2009
%
chg
9 Mths
2009
9 Mths
2008
%
chg
Net trading income/(loss)
83
(281)
NM
234
(65)
521
(331)
NM
From trading businesses
From other businesses
Net (loss)/income from financial
instruments designated at fair value
Net income on financial investments
1/
Net gain on fixed assets
Others (include rental income)
90
(7)
(303)
22
NM
NM
246
(12)
(63)
42
595
(74)
(367)
36
NM
NM
(27)
268
NM
(62)
56
(143)
379
NM
7
13
3
2
19
>100
NM
(32)
138
12
(95)
8
251
38
263
5
47
(5)
NM
(19)
76
11
>100
322
(76)
667
363
84
Total
Notes:
1/ Exclude one-time items
NM Not Meaningful
Other non-interest income fell to $76 million from $322
million in the previous quarter. Trading income declined
to $56 million from $172 million due to lower gains in
interest rate and foreign exchange activities, as well as
lower asset valuation gains.
Investment gains of $7 million were also lower than the
previous quarter but similar to a year ago.
Other non-interest income was better than the $11
million a year ago, when trading activities recorded a
loss of $13 million.
6
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
EXPENSES
($m)
3rd Qtr
2009
3rd Qtr
2008
% chg
2nd Qtr
2009
% chg
9 Mths
2009
9 Mths
2008
% chg
Staff 1/
Occupancy
Computerisation
Revenue-related
Others
Total
Staff headcount at period-end
322
71
114
27
101
635
13,868
188
66
115
38
171
578
15,166
71
8
(1)
(29)
(41)
10
(9)
330
67
104
33
97
631
13,928
(2)
6
10
(18)
4
1
(0)
979
209
330
93
293
1,904
13,868
910
185
326
112
388
1,921
15,166
8
13
1
(17)
(24)
(1)
(9)
64
1
42
1
52
-
42
1
52
-
147
2
113
3
30
(33)
2
1
100
2
-
6
5
20
Included in the above table were:
Depreciation of properties and other
fixed assets
Director’s fees
Audit fees payable
Note:
1/ Exclude one-time items
Expenses of $635 million were slightly above the previous
quarter. A decline in staff costs was offset by higher
computerisation and occupancy expenses. Headcount
was little changed from the previous quarter.
Compared to a year ago, costs were 10% higher. This
was due to higher staff costs as bonus accruals had
been curtailed in the year-ago period. Other costs fell as
the year-ago period had included compensation for
certain structured product customers. Headcount was
9% lower from a year ago and included the impact of an
organisational streamlining in fourth quarter 2008.
7
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
ALLOWANCES FOR CREDIT AND OTHER LOSSES
($m)
General allowances (GP)
Specific allowances (SP) for loans
Singapore
Hong Kong
Other countries
Specific allowances (SP) for
securities, properties and other
1/
assets
Total
3rd Qtr
2009
3rd Qtr
2008
% chg
2nd Qtr
2009
% chg
9 Mths
2009
9 Mths
2008
% chg
14
129
(89)
183
(92)
379
188
>100
229
201
14
14
106
31
58
17
>100
>100
(76)
(18)
272
177
66
29
(16)
14
(79)
(52)
726
442
173
111
195
63
110
22
>100
>100
57
>100
22
84
(74)
11
100
40
132
(70)
265
319
(17)
466
(43)
1,145
515
>100
Notes:
1/ Exclude one-time items
Specific allowances for loans fell to $229 million from
$272 million in the previous quarter. The amounts
shown in the table above are by booking centre.
existing NPLs. Specific allowances for Hong Kong were
significantly lower than the previous quarter and a year
ago.
Specific allowances for Singapore were 14% higher
than the previous quarter mainly due to allowances for
General allowances amounted to $14 million in line with
asset growth.
8
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY BUSINESS SEGMENTS
($m)
CBG
IBG
GFM
CTU
Central
Ops
Total
Selected income items
3rd Qtr 2009
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
226
142
368
260
24
84
12
72
507
245
752
188
176
388
66
322
278
94
372
106
5
1
262
56
206
172
(81)
91
8
83
16
67
(43)
37
(6)
73
60
26
(113)
(37)
(104)
1,140
437
1,577
635
265
27
704
113
563
2nd Qtr 2009
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
201
123
324
253
32
39
7
32
478
288
766
201
221
344
63
281
313
128
441
116
6
3
322
66
256
173
(121)
52
14
(1)
39
10
29
(53)
262
209
47
208
10
(36)
(42)
(46)
1,112
680
1,792
631
466
13
708
104
552
270
152
422
354
14
54
7
47
420
233
653
204
166
283
55
228
262
(40)
222
132
26
2
66
3
63
178
(40)
138
12
201
(75)
(75)
(59)
22
(37)
(124)
(88)
19
194
(6)
139
1,071
327
1,398
578
319
21
522
59
402
619
378
997
751
66
180
26
154
1,452
819
2,271
567
595
1,109
217
892
878
322
1,200
340
18
5
847
181
666
518
(72)
446
33
49
364
62
302
(139)
256
117
213
417
55
(458)
(154)
(443)
3,328
1,703
5,031
1,904
1,145
60
2,042
332
1,571
1/
3rd Qtr 2008
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
1/
9 Mths 2009
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
9
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
CBG
IBG
GFM
CTU
Central
Ops
Total
889
487
1,376
885
31
460
76
384
1,224
775
1,999
595
282
1,122
213
909
881
0
881
418
50
2
415
97
318
472
(54)
418
33
219
166
37
129
(280)
166
(114)
(10)
(67)
63
26
(54)
(67)
3,186
1,374
4,560
1,921
515
65
2,189
369
1,673
38,985
99,242
86,354
27,222
1,820
101,717
6
11
66,660
6
5
41,386
2
3
751
-
19,614
36
45
253,623
5,847
259,470
230,128
50
64
-
37,809
99,512
88,623
29,706
1,451
103,231
4
11
61,484
6
5
47,047
3
3
1,349
-
21,163
8
23
36,004
96,586
86,760
26,344
5,177
95,537
32
6
60,390
7
3
48,930
3
2
1,496
-
26,362
12
25
35,575
97,229
88,389
28,336
4,865
90,899
9
10
59,988
8
2
56,088
11
3
1,890
-
27,043
39
27
1/
9 Mths 2008
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
Selected balance sheet and other
2/
items
30 Sept 2009
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 3rd Qtr 2009
Depreciation for 3rd Qtr 2009
Goodwill charge for 3rd Qtr 2009
30 Jun 2009
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 2nd Qtr 2009
Depreciation for 2nd Qtr 2009
Goodwill charge for 2nd Qtr 2009
31 Dec 2008
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 4th Qtr 2008
Depreciation for 4th Qtr 2008
Goodwill charge for 4th Qtr 2008
30 Sept 2008
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 3rd Qtr 2008
Depreciation for 3rd Qtr 2008
Goodwill charge for 3rd Qtr 2008
Notes:
1/ Expenses, allowances for credit and other losses and profits 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
10
257,101
5,847
262,948
234,274
21
42
-
250,871
5,847
256,718
232,715
54
36
-
254,394
5,847
260,241
235,908
67
42
-
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
The business segment results are prepared based on
the Group’s internal management reporting which
reflects the organisation management reporting
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. During the quarter, no one
group of related customers generated more than 10% of
the Group’s revenues.
The various business segments are described below:
Consumer Banking (CBG)
CBG 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 and investment products.
Compared to the previous quarter, net interest income
rose due to lower deposit costs and higher housing loan
volumes. Non-interest income was higher from an
increase in wealth management revenues, helped by
performance-related fees recognised during the quarter.
Expenses rose in line with higher business volumes,
while allowances were lower as economic and financial
market conditions improved.
Institutional Banking (IBG)
IBG provides financial services and products to large
corporate, institutional clients and small and mediumsized businesses. The products and services available
to customers include corporate finance and advisory
banking services for mergers and acquisitions, capital
raising through debt and equity markets, capital
restructuring, syndicated finance, securities and
fiduciary services, cash management and trade
services, private equity and credit facilities, deposit and
treasury products.
Compared to the previous quarter, revenues were little
changed as an increase in net interest income was offset
by lower loan-related fees. Expenses were slightly lower,
while allowances declined due to lower specific allowance
charges for Hong Kong.
Global Financial Markets (GFM)
GFM provides treasury services to corporations,
institutional and private investors, financial institutions and
other market participants. It is primarily involved in market
making, structuring, equity and debt sales and trading
across a broad range of financial products including
foreign exchange, interest rate/credit/equity and other
structured derivatives. Income from these financial
products and services offered to the customer of other
business segments, such as Consumer Banking and
Institutional Banking, is reflected in the respective
segments. GFM also provides equity services through
DBS Vickers Securities (DBSV). DBSV offers a wide
range of services to retail and corporate customers
including research, sales and trading, share placement,
nominees and securities custodian services and
distribution of primary and secondary issues.
Compared to the previous quarter, GFM’s revenues fell
due to lower gains from interest rate and foreign exchange
activities as well as lower asset valuation gains. Expenses
were also lower in line with revenues.
Central Treasury Unit (CTU)
CTU is responsible for the management of the Group’s
asset and liability interest rate positions and investment of
the Group’s excess liquidity and shareholders’ funds.
Central Operations
Central Operations encompasses a range of activities
from corporate decisions and income and expenses not
attributed to other business segments. Asset management
and private banking activities are included in this segment.
11
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY GEOGRAPHY
($m)
S’pore
Hong
Kong
Rest of
Greater
China
South
and
Southeast Asia
Rest of
world
Total
Selected income items
3rd Qtr 2009
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
706
228
934
367
227
6
346
50
268
226
105
331
145
14
172
29
143
73
28
101
66
14
5
26
5
21
84
36
120
44
10
16
82
12
70
51
40
91
13
78
17
61
1,140
437
1,577
635
265
27
704
113
563
2nd Qtr 2009
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
673
471
1,144
360
372
4
416
40
324
222
120
342
151
71
120
21
99
74
29
103
63
13
3
30
9
21
90
31
121
41
10
6
76
18
58
53
29
82
16
66
16
50
1,112
680
1,792
631
466
13
708
104
552
3rd Qtr 2008
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
696
188
884
286
214
10
394
32
301
213
109
322
170
62
90
14
76
86
7
93
65
18
3
13
2
11
41
21
62
42
17
8
11
1
10
35
2
37
15
8
14
10
4
1,071
327
1,398
578
319
21
522
59
402
9 Mths 2009 1/
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
2,034
1,003
3,037
1,102
825
13
1,123
133
851
672
352
1,024
446
173
405
69
336
227
94
321
189
39
11
104
23
81
247
149
396
126
54
36
252
61
191
148
105
253
41
54
158
46
112
3,328
1,703
5,031
1,904
1,145
60
2,042
332
1,571
1/
12
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
S’pore
Hong
Kong
Rest of
Greater
China
South
and
Southeast Asia
Rest of
world
Total
2,126
710
2,836
1,099
322
15
1,430
221
1,062
652
424
1,076
518
121
437
63
374
193
60
253
138
32
14
97
16
81
120
136
256
120
22
36
150
34
116
95
44
139
46
18
75
35
40
3,186
1,374
4,560
1,921
515
65
2,189
369
1,673
Selected balance sheet items 2/
30 Sept 2009
Total assets before goodwill
Goodwill on consolidation
Total assets
3/
Non-current assets
165,741
198
165,939
1,457
47,342
5,649
52,991
555
15,023
15,023
147
12,676
12,676
49
12,841
12,841
1
253,623
5,847
259,470
2,209
30 Jun 2009
Total assets before goodwill
Goodwill on consolidation
Total assets
3/
Non-current assets
169,570
198
169,768
1,465
46,754
5,649
52,403
573
13,778
13,778
143
13,243
13,243
45
13,756
13,756
2
257,101
5,847
262,948
2,228
31 Dec 2008
Total assets before goodwill
Goodwill on consolidation
Total assets
Non-current assets 3/
170,132
198
170,330
1,457
44,119
5,649
49,768
570
16,563
16,563
141
9,889
9,889
38
10,168
10,168
2
250,871
5,847
256,718
2,208
30 Sept 2008
Total assets before goodwill
Goodwill on consolidation
Total assets
3/
Non-current assets
165,603
198
165,801
1,494
48,782
5,649
54,431
580
16,717
16,717
139
10,502
10,502
36
12,790
12,790
3
254,394
5,847
260,241
2,252
1/
9 Mths 2008
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
Notes:
1/ Expenses, allowances for credit and other losses and profits 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
3/ Includes investment in associates, properties and other fixed assets, and investment properties
13
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
The performance by geography is classified based on the
location in which income and assets are recorded.
Singapore
Net profit fell to $268 million from $324 million in the
previous quarter as lower revenues were partially offset
by reduced allowances.
Net interest income rose 5% from the previous quarter
from lower deposit costs. Non-interest income halved as
trading income and gains from the sale of financial
investments declined.
Expenses were little changed. The decline in allowances
was due to lower general allowances, partially offset by
higher specific allowances for corporate loans booked in
Singapore but for use in other regions.
Hong Kong
The third quarter’s results incorporate an appreciation of
the Singapore dollar against the Hong Kong dollar of 2%
from the previous quarter and a depreciation of 3% from a
year ago.
Net profit rose to $143 million from $99 million in the
previous quarter as allowances were lower.
Net interest income was little changed from the previous
quarter. Non-interest income fell 13% due to lower trading
income and sales of treasury products, partially offset by
higher stockbroking, unit trust and trade finance fee
income.
Expenses were stable from the previous quarter.
Allowances fell 80% as specific allowances for IBG loans
declined aided by write-backs.
14
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CUSTOMER LOANS
1/
($m)
30 Sept 2009
30 Jun 2009
130,863
130,406
128,365
129,255
General allowances
Net total
1,214
1,341
128,308
1,090
1,346
127,970
868
1,016
126,481
711
1,003
127,541
By business unit
Consumer Banking
Institutional Banking
Others
Total (Gross)
36,795
87,532
6,536
130,863
35,458
88,418
6,530
130,406
34,758
87,415
6,192
128,365
34,111
88,100
7,044
129,255
By geography
Singapore
Hong Kong
Rest of Greater China
South and South-east Asia
Rest of the world
Total (Gross)
74,807
31,828
9,510
8,399
6,319
130,863
73,610
31,951
9,154
8,437
7,254
130,406
74,377
32,085
9,683
5,557
6,663
128,365
72,622
33,405
10,123
5,915
7,190
129,255
By industry
Manufacturing
Building and construction
Housing loans
General commerce
Transportation, storage & communications
Financial institutions, investment & holding companies
Professionals & private individuals (except housing loans)
Others
Total (Gross)
16,242
17,722
30,956
12,245
13,026
16,939
10,559
13,174
130,863
15,589
18,220
29,821
12,117
13,043
17,107
10,660
13,849
130,406
15,958
17,931
29,375
13,075
12,457
14,490
10,478
14,601
128,365
17,108
17,445
28,843
12,588
12,878
14,695
10,685
15,013
129,255
56,556
20,182
36,374
29,042
602
28,440
27,773
2,078
25,695
17,492
3,032
14,460
130,863
56,448
18,842
37,606
29,141
631
28,510
28,076
1,583
26,493
16,741
2,460
14,281
130,406
53,527
15,795
37,732
29,347
664
28,683
28,123
1,736
26,387
17,368
2,695
14,673
128,365
51,387
14,958
36,429
29,900
694
29,206
29,428
2,054
27,374
18,540
3,247
15,293
129,255
Gross
Less:
Specific allowances
31 Dec 2008 30 Sept 2008
By currency and fixed/variable pricing
Singapore dollar
Fixed rates
Floating or adjustable rates
Hong Kong dollar
Fixed rates
Floating or adjustable rates
US dollar
Fixed rates
Floating or adjustable rates
Others
Fixed rates
Floating or adjustable rates
Total (Gross)
Note:
1/ Includes customer loans classified as financial assets at fair value through profit or loss on the balance sheet
Underlying customer loan volumes rose 1% from the
previous quarter but were flat at $128.3 billion after currency
translation effects. The underlying growth was due to
housing loans in Singapore and Hong Kong.
Loans in Hong Kong rose 2% in local currency terms
from the previous quarter with most of the growth
coming from housing loans.
15
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NON-PERFORMING ASSETS AND LOSS ALLOWANCE COVERAGE
1/
By business unit
NPA
($m)
SP
($m)
GP
($m)
NPL
(% of loans)
(GP+SP)/NPA
(%)
(GP+SP)/
unsecured
NPA
(%)
335
78
359
0.9
131
287
2,532
928
867
2.9
71
102
552
282
115
8.5
72
95
3,419
1,288
1,341
2.6
77
113
208
131
342
-
227
282
196
102
218
-
163
177
3,823
1,521
1,901
-
90
128
344
80
354
1.0
126
281
2,757
844
876
3.1
62
94
591
227
116
9.1
58
78
3,692
1,151
1,346
2.8
68
103
192
134
339
-
246
275
167
79
214
-
175
192
4,051
1,364
1,899
-
81
119
290
76
347
0.8
146
311
1,467
684
867
1.7
106
169
201
160
(198)
3.3
(19)
(23)
1,958
920
1,016
1.5
99
159
277
236
288
-
189
193
157
52
220
-
173
421
2,392
1,208
1,524
-
114
176
309
107
340
0.9
145
297
1,179
562
876
1.3
122
208
199
118
(160)
2.8
(21)
(38)
1,687
787
1,056
1.3
109
193
285
252
290
-
190
216
82
7
137
-
176
2,171
2,054
1,046
1,483
-
123
209
30 Sept 2009
Consumer Banking
Institutional Banking
Others
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
30 Jun 2009
Consumer Banking
Institutional Banking
Others
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
31 Dec 2008
Consumer Banking
Institutional Banking
Others
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
30 Sept 2008
Consumer Banking
Institutional Banking
Others
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
Note:
1/ Allowances for credit and other losses exclude one-time items
16
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By geography
30 Sept 2009
Singapore
Hong Kong
Rest of Greater China
South and South-east
Asia
Rest of the World
Total non-performing
loans
Debt securities
Contingent liabilities
& others
Total non-performing
assets
30 Jun 2009
Singapore
Hong Kong
Rest of Greater China
South and South-east
Asia
Rest of the World
Total non-performing
loans
Debt securities
Contingent liabilities
& others
Total non-performing
assets
31 Dec 2008
Singapore
Hong Kong
Rest of Greater China
South and South-east
Asia
Rest of the World
Total non-performing
loans
Debt securities
Contingent liabilities
& others
Total non-performing
assets
30 Sept 2008
Singapore
Hong Kong
Rest of Greater China
South and South-east
Asia
Rest of the World
Total non-performing
loans
Debt securities
Contingent liabilities
& others
Total non-performing
assets
NPA
($m)
SP
($m)
GP
($m)
NPL
(% of loans)
(GP+SP)/NPA
(%)
(GP+SP)/
unsecured
NPA
(%)
773
650
376
208
375
198
564
318
113
1.3
2.0
3.6
100
107
83
249
157
129
174
72
195
1.5
153
181
1,446
435
151
9.4
41
49
3,419
1,288
1,341
2.6
77
113
208
131
342
-
227
282
196
102
218
-
163
177
3,823
1,521
1,901
-
90
128
803
769
441
190
394
229
573
319
109
1.3
2.4
4.3
95
93
77
246
154
126
250
79
182
2.3
104
129
1,429
259
163
8.8
30
36
3,692
1,151
1,346
2.8
68
103
192
134
339
-
246
275
167
79
214
-
175
192
4,051
1,364
1,899
-
81
119
678
587
457
271
313
241
316
343
117
1.1
1.7
4.3
87
112
78
151
176
128
133
59
159
1.2
164
171
103
36
81
0.7
114
252
1,958
920
1,016
1.5
99
159
277
236
288
-
189
193
157
52
220
-
173
421
2,392
1,208
1,524
-
114
176
531
467
437
235
223
226
338
330
124
0.9
1.4
3.8
108
119
80
213
212
139
110
56
145
1.1
182
194
142
47
119
0.9
117
242
1,687
787
1,056
1.3
109
193
285
252
290
-
190
216
82
7
137
-
176
2,171
2,054
1,046
1,483
-
123
209
17
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By industry
($m)
30 Sept 2009
30 Jun 2009
31 Dec 2008
30 Sept 2008
NPA
SP
NPA
SP
NPA
SP
NPA
SP
Manufacturing
Building and construction
Housing loans
694
93
234
349
24
41
782
203
242
361
46
42
720
96
193
351
30
43
485
92
190
246
28
46
General commerce
Transportation, storage &
communications
480
246
177
39
509
221
185
10
381
24
187
6
331
13
175
7
1,200
369
1,209
236
145
66
191
78
265
138
310
146
223
129
206
108
207
3,419
151
1,288
216
3,692
125
1,151
176
1,958
108
920
179
1,687
99
787
208
196
131
102
192
167
134
79
277
157
236
52
285
82
252
7
Total non-performing assets
3,823
1,521
4,051
1,364
2,392
1,208
2,054
1,046
By loan classification
($m)
30 Sept 2009
Financial institutions, investment
& holding companies
Professionals & private
individuals (except housing
loans)
Others
Total non-performing loans
Debt securities
Contingent liabilities & others
Non-performing assets
Substandard
Doubtful
Loss
Total
Restructured assets
Substandard
Doubtful
Loss
Total
30 Jun 2009
31 Dec 2008
30 Sept 2008
NPA
SP
NPA
SP
NPA
SP
NPA
SP
2,476
830
517
3,823
356
648
517
1,521
2,816
791
444
4,051
268
652
444
1,364
1,328
800
264
2,392
213
730
265
1,208
1,141
644
269
2,054
201
575
270
1,046
440
68
44
552
62
54
44
160
467
169
57
693
69
105
56
230
213
57
49
319
46
49
46
141
246
29
53
328
72
27
53
152
By collateral type
($m)
30 Sept 2009
30 Jun 2009
31 Dec 2008
NPA
NPA
NPA
NPA
2,683
2,741
1,554
1,211
Secured non-performing assets by collateral type
Properties
629
800
556
505
Shares and debentures
149
231
43
76
Fixed deposits
Others
13
13
16
22
349
266
223
240
3,823
4,051
2,392
2,054
Unsecured non-performing assets
Total
30 Sept 2008
18
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By period overdue
($m)
Not overdue
180 days overdue
Total
30 Sept 2009
30 Jun 2009
31 Dec 2008
30 Sept 2008
NPA
NPA
NPA
NPA
1,313
648
655
1,207
1,547
1,036
468
1,000
857
463
326
746
832
281
307
634
3,823
4,051
2,392
2,054
Non-performing loans fell 7% from the previous quarter to
$3.42 billion or 2.6% of the loan portfolio. The decline was
led by repayments in Hong Kong, Rest of Greater China
and South and South-east Asia. New NPL formation was
also lower than the previous quarter.
were still current in principal and interest and were
classified for prudent reasons.
Allowance coverage for non-performing assets rose
from 81% in the previous quarter to 90%. If collateral
was considered, the coverage rose from 119% to 128%.
Including debt securities and contingent liabilities, nonperforming assets amounted to $3.82 billion, of which 34%
FUNDING SOURCES
($m)
1/
Customer deposits
Interbank liabilities 2/
2/
Other borrowings and liabilities
Shareholders’ funds
Total
30 Sept 2009
30 Jun 2009
31 Dec 2008
30 Sept 2008
180,185
9,138
44,973
25,174
259,470
179,033
11,177
48,273
24,465
262,948
169,858
9,571
57,470
19,819
256,718
166,448
19,616
54,036
20,141
260,241
Notes:
1/
Includes customer deposits classified as financial liabilities at fair value through profit or loss on the balance sheet
2/
Includes liabilities classified as financial liabilities at fair value through profit or loss on the balance sheet
19
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CUSTOMER DEPOSITS
1/
($m)
By currency and product
Singapore dollar
Fixed deposits
Savings accounts
Current accounts
Others
Hong Kong dollar
Fixed deposits
Savings accounts
Current accounts
Others
US dollar
Fixed deposits
Savings accounts
Current accounts
Others
Others
Fixed deposits
Savings accounts
Current accounts
Others
30 Sept 2009
30 Jun 2009
31 Dec 2008
30 Sept 2008
99,475
18,358
67,186
12,794
1,137
25,047
13,084
8,001
3,609
353
30,523
17,371
3,484
8,231
1,437
25,140
19,438
1,882
2,369
1,451
180,185
68,251
80,553
27,003
4,378
99,415
18,616
66,680
12,742
1,377
25,414
14,837
7,081
3,046
450
29,013
18,737
2,878
6,853
545
25,191
19,836
1,615
2,218
1,522
179,033
72,026
78,254
24,859
3,894
93,957
20,645
62,068
10,359
885
23,536
15,721
5,030
2,211
574
28,247
19,365
2,040
5,982
860
24,118
20,043
1,231
2,178
666
169,858
75,774
70,369
20,730
2,985
89,666
21,821
57,256
9,775
814
23,503
16,917
3,970
1,856
760
29,018
19,536
1,851
4,833
2,798
24,261
20,163
1,233
1,771
1,094
166,448
78,437
64,310
18,235
5,466
Total
Fixed deposits
Savings accounts
Current accounts
Others
Note:
1/ Includes customer deposits classified as financial liabilities at fair value through profit or loss on the balance sheet
The overall deposit mix improved further during the
quarter, with savings and current accounts generally
rising across currencies.
Customer deposits rose 1% from the previous quarter to
$180.2 billion as Hong Kong-dollar and US-dollar current
and savings accounts grew. Singapore-dollar deposits
were stable.
OTHER BORROWINGS & LIABILITIES
($m)
Subordinated term debts1/
Other debt securities in issue
Due within 1 year
Due after 1 year
Comprising:
2/
Secured
Unsecured
Others
Total
30 Sept 2009
30 Jun 2009
31 Dec 2008
30 Sept 2008
7,790
9,047
9,085
8,882
102
506
248
497
263
375
830
1,094
108
500
36,575
44,973
171
574
38,481
48,273
333
305
47,747
57,470
269
1,655
43,230
54,036
Notes:
1/ All subordinated term debts issued are unsecured
2/ These are mainly secured by properties and securities
20
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
VALUE AT RISK AND TRADING INCOME
The Group uses a Value at Risk (VaR) measure as one mechanism for monitoring and controlling trading risk. The VaR is
calculated using a one-day time horizon and a 99% confidence interval. The following table shows the period-end, average,
high and low VaR for the trading risk exposure of the Group for the period from 1 October 2008 to 30 September 2009. The
Group’s trading book VaR methodology is based on Historical Simulation VaR.
($m)
1 October 2008 to 30 September 2009
Average
High
Low
As at 30 September 2009
Total
22
35
60
21
The charts below provide the range of VaR and the daily distribution of trading income in the trading portfolio for the
period from 1 October 2008 to 30 September 2009.
D BSH Gr oup Va R for Tr a ding Book
30
No. of Days
25
20
15
10
5
> 19- 20
> 20- 21
> 21- 22
> 22- 23
> 23- 24
> 24- 25
> 25- 26
> 26- 27
> 27- 28
> 28- 29
> 29- 30
> 30- 31
> 31- 32
> 32- 33
> 33- 34
> 34- 35
> 35- 36
> 36- 37
> 37- 38
> 38- 39
> 39- 40
> 40- 41
> 41- 42
> 42- 43
> 43- 44
> 44- 45
> 45- 46
> 46- 47
> 47- 48
> 48- 49
> 49- 50
> 50- 51
> 51- 52
> 52- 53
> 53- 54
> 54- 55
> 55- 56
> 56- 57
> 57- 58
> 58- 59
> 59- 60
0
VaR ( S$ m illion)
Note:
With effect from 1 Jun 2009, the number of historical scenarios used for the VaR calculation was revised from 500 days to 250 days
Daily Distribution of T&M Group Trading Income
(1 Oct 2008 to 30 Sep 2009)
30
25
15
10
5
Trading income (S$ million)
21
>52-54
>48-50
>44-46
>40-42
>36-38
>32-34
>28-30
>24-26
>20-22
>16-18
>12-14
>8-10
>4-6
>0-2
>(4)-(2)
>(8)-(6)
>(12)-(10)
>(16)-(14)
>(20)-(18)
>(24)-(22)
>(28)-(26)
>(32)-(30)
>(36)-(34)
>(40)-(38)
0
>(44)-(42)
No. of days
20
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CAPITAL ADEQUACY
($m)
30 Sept 2009
30 Jun 2009
31 Dec 2008
30 Sept 2008
8,432
20,761
(6,053)
23,140
8,424
20,557
(6,068)
22,913
4,215
20,180
(6,022)
18,373
4,214
20,268
(6,011)
18,471
623
6,025
65
(124)
29,729
185,222
580
6,140
42
(136)
29,539
182,635
656
6,571
27
(106)
25,521
182,685
680
6,413
27
(117)
25,474
190,188
12.5
3.6
16.1
12.6
3.6
16.2
10.1
3.9
14.0
9.7
3.7
13.4
Tier 1
Share capital
Disclosed reserves and others
Less: Tier 1 Deductions
Eligible Tier 1
Tier 2
Loan allowances admitted as Tier 2
Subordinated debts
Revaluation surplus from equity securities
Less: Tier 2 Deductions
Total eligible capital
Risk-weighted assets
Capital adequacy ratio (%)
Tier 1 ratio
Tier 2 ratio
Total (Tier 1 & 2) ratio
The Group’s capital adequacy ratio declined from 16.2% in the previous quarter to 16.1% due primarily to an increase in
risk-weighted assets.
UNREALISED VALUATION SURPLUS/(LOSSES)
($m)
Properties
Financial investments
Total
30 Sept 2009
30 Jun 2009
31 Dec 2008
30 Sept 2008
561
194
755
542
(132)
410
532
(246)
286
687
62
749
The amount of unrealised valuation surplus increased from $410 million in the previous quarter to $755 million mainly due to
higher valuations for financial investments.
22
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Consolidated Income Statement
In $ millions
3rd Qtr 3rd Qtr
2009
2008
+/(-) 2nd Qtr
%
2009
+/(-) 9 Mths 9 Mths
%
2009
2008
+/(-)
%
Income
Interest income
Interest expense
Net interest income
Net fee and commission income
Net trading (loss)/income
Net income/(loss) from financial instruments designated at fair value
Net income from financial investments
Other income
1,479
339
1,140
361
83
(27)
7
13
2,025
954
1,071
316
(281)
268
3
21
(27)
(64)
6
14
NM
NM
>100
(38)
1,543
431
1,112
358
234
(62)
138
12
(4)
(21)
3
1
NM
NM
(95)
8
4,677
1,349
3,328
1,036
521
(143)
251
38
6,107
2,921
3,186
1,011
(331)
379
263
70
(23)
(54)
4
2
NM
NM
(5)
(46)
Total income
1,577
1,398
13
1,792
(12)
5,031
4,578
10
Expenses
Employee benefits
Depreciation of properties and other fixed assets
Other expenses
Allowances for credit and other losses
322
64
249
265
188
42
348
342
71
52
(28)
(23)
330
42
259
466
(2)
52
(4)
(43)
979
147
778
1,168
910
113
898
572
8
30
(13)
>100
Total expenses
900
920
(2)
1,097
(18)
3,072
2,493
23
Profit
Share of profits of associates
Profit before tax
677
27
704
478
21
499
42
29
41
695
13
708
(3)
>100
(1)
1,959
60
2,019
2,085
65
2,150
(6)
(8)
(6)
Income tax expense
Net profit
113
591
59
440
92
34
104
604
9
(2)
332
1,687
369
1,781
(10)
(5)
563
28
591
379
61
440
49
(54)
34
552
52
604
2
(46)
(2)
1,548
139
1,687
1,634
147
1,781
(5)
(5)
(5)
+/(-) 9 Mths 9 Mths
%
2009
2008
+/(-)
%
Attributable to:
Shareholders
Minority interests
Unaudited Consolidated Statement of Comprehensive Income
In $ millions
Net profit
Other comprehensive income:
Foreign currency translation differences for foreign operations
Share of other comprehensive income of associates
Available-for-sale financial assets
Net valuation taken to equity
Transferred to income statement on sale
Tax on items taken directly to or transferred from equity
Other comprehensive income, net of tax
Total comprehensive income
Attributable to:
Shareholders
Minority interests
3rd Qtr 3rd Qtr
2009
2008
+/(-) 2nd Qtr
%
2009
591
440
34
604
(2)
1,687
1,781
(5)
(18)
1
108
23
NM
(96)
(82)
9
78
(89)
35
16
(11)
(24)
NM
NM
540
(29)
(55)
439
(291)
(11)
45
(126)
NM
(>100)
NM
NM
752
(140)
(76)
463
(28)
79
28
(5)
900
(281)
(85)
585
(992)
(238)
173
(1,092)
NM
(18)
NM
NM
1,030
314
>100
1,067
(3)
2,272
689
>100
1,029
1
1,030
184
130
314
>100
(99)
>100
1,070
(3)
1,067
(4)
NM
(3)
2,126
146
2,272
559
130
689
>100
12
>100
23
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Balance Sheets
In $ millions
30 Sept
2009
GROUP
30 Jun
31 Dec
2009
2008 1/
30 Sept
2008
30 Sept
2009
COMPANY
30 Jun
31 Dec
2009
2008 1/
30 Sept
2008
ASSETS
Cash and balances with central banks
Singapore Government securities and treasury bills
Due from banks
Financial assets at fair value though profit or loss 2/
Positive replacement values for financial derivatives
Loans and advances to customers
Financial investments
Securities pledged
Subsidiaries
Investments in associates
Goodwill on consolidation
Properties and other fixed assets
Investment properties
Deferred tax assets
Other assets
12,703
15,072
31,524
12,283
17,761
127,703
25,884
876
653
5,847
1,179
377
129
7,479
11,566
15,659
33,152
11,704
21,213
127,362
26,567
1,045
642
5,847
1,205
381
153
6,452
15,790
14,797
20,467
9,401
32,328
125,841
22,782
997
604
5,847
1,311
293
171
6,089
15,044
15,000
27,331
11,575
23,007
126,893
23,996
3,218
620
5,847
1,335
297
41
6,037
TOTAL ASSETS
259,470
262,948
256,718
260,241
Due to banks
Due to non-bank customers
Financial liabilities at fair value through profit or loss 3/
Negative replacement values for financial derivatives
Bills payable
Current tax liabilities
Deferred tax liabilities
Other liabilities
Other debt securities in issue
Subordinated term debts
8,665
174,683
10,917
18,118
774
912
56
7,605
608
7,790
10,767
173,729
10,121
20,503
717
830
59
7,756
745
9,047
9,021
163,359
11,282
31,918
714
779
45
5,874
638
9,085
19,200
158,340
15,161
23,535
762
885
11
7,208
1,924
8,882
TOTAL LIABILITIES
230,128
234,274
232,715
29,342
28,674
8,433
(120)
6,863
9,998
9,993
10,312
6,745
6,767
98
99
154
74
10,091
10,411
6,899
6,841
4
4
5
18
235,908
4
4
5
18
24,003
24,333
10,087
10,407
6,894
6,823
8,424
(120)
6,392
9,769
4,215
(154)
6,322
9,436
4,213
(137)
6,605
9,460
8,433
52
1,602
8,424
47
1,936
4,215
89
2,590
4,213
(62)
82
2,590
10,087
10,407
6,894
6,823
10,087
10,407
6,894
6,823
4.31
4.45
4.48
4.43
4.23
4.37
4.34
4.30
LIABILITIES
NET ASSETS
EQUITY
Share capital
Treasury shares
Other reserves
Revenue reserves
SHAREHOLDERS’ FUNDS
25,174
24,465
19,819
20,141
Minority interests
4,168
4,209
4,184
4,192
TOTAL EQUITY
29,342
28,674
24,003
24,333
96,850
1,415,223
102,126
1,505,163
92,656
1,704,717
110,192
2,005,986
OFF BALANCE SHEET ITEMS
Contingent liabilities and commitments
Fina
Incorporated in the Republic of Singapore
Company Registration Number: 199901152M
To: Shareholders
The DBS Group Holdings Ltd (“DBSH” or “the Company”) Board of Directors report unaudited financial
results for the third quarter ended 30 September 2009.
For the third quarter of 2009, the Directors have declared an interim one-tier tax-exempt dividend of 2
cents (third quarter 2008: 0 cents) for each DBSH non-voting convertible preference share (“CPS”) and
each DBSH non-voting redeemable CPS, and an interim one-tier tax-exempt dividend of 14 cents (third
quarter 2008: 17 cents) for each DBSH ordinary share. Historical comparisons have been adjusted for
the one-for-two rights issue.
The third quarter 2009 dividends will be payable on 4 December 2009. The DBSH shares will be
quoted ex-dividend on 18 November 2009. Notice is hereby given that the Share Transfer Books and
Register of Members of the Company will be closed on 23 November 2009. Duly completed transfers
received by the Company's Registrar, Tricor Barbinder Share Registration Services of 8 Cross Street
#11-00 PWC Building, Singapore 048424 up to 5.00 p.m. on 20 November 2009 will be registered to
determine shareholders' entitlement to the third quarter 2009 dividend. In respect of ordinary shares in
the securities accounts with The Central Depository (Pte) Limited (“CDP”), the third quarter 2009
dividend will be paid by DBSH to CDP, which will in turn distribute the dividend entitlements to
shareholders.
By order of the Board
Linda Hoon
Group Secretary
5 Nov 2009
Singapore
More information on the above announcement is available at www.dbs.com/investor
Performance Summary
Unaudited Financial Results
For the Third Quarter ended
30 September 2009
DBS Group Holdings Ltd
Incorporated in the Republic of Singapore
Company Registration Number: 199901152M
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Contents
Overview
Net Interest Income
Net Fee and Commission Income
Other Non-Interest Income
Expenses
Allowances for Credit and Other Losses
Performance by Business Segments
Performance by Geography
Customer Loans
Non-Performing Assets and Loss Allowance Coverage
Funding Sources
Customer Deposits
Other Borrowings & Liabilities
Value at Risk and Trading Income
Capital Adequacy
Unrealised Valuation Surplus/(Losses)
Unaudited Consolidated Income Statement
Unaudited Consolidated Statement of Comprehensive Income
Unaudited Balance Sheets
Unaudited Consolidated Statement of Changes in Equity
Unaudited Statement of Changes in Equity
Unaudited Consolidated Cash Flow Statement
Additional Information
Issuance of Ordinary Shares
Adoption of New or Revised FRS and INT FRS
Disclosure on Certain Financial Instruments
Confirmation by the Board
Page
2
4
6
6
7
8
9
12
15
16
19
20
20
21
22
22
23
23
24
25
26
27
28
28
29
31
1
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
OVERVIEW
DBS Group Holdings Ltd (“DBSH”) prepares its condensed consolidated DBSH Group (“Group”) interim financial statements in
accordance with Singapore Financial Reporting Standard (“FRS”) No. 34 Interim Financial Reporting, as modified by the
requirements of Notice to Banks No. 612 “Credit Files, Grading and Provisioning” issued by the Monetary Authority of
Singapore. The accounting policies and methods of computation applied for the current financial periods are consistent with
those applied for the financial year ended 31 December 2008, with the exception of the adoption of new or revised FRS and
Interpretations to FRS (“INT FRS”).
On 1 January and 1 July 20091/, the Group adopted the following new or revised FRS and INT FRS, that are issued by the
Accounting Standard Council (ASC), and are relevant for the Group.
• FRS 1: Presentation of Financial Statements
• FRS 1 Presentation of Financial Statements & FRS 32 Financial Instruments: Presentation – Puttable Financial Instruments
and Obligations Arising on Liquidation
• FRS 27: Consolidated and Separate Financial Statements – Cost of an Investment in a Subsidiary, Jointly Controlled Entity
or Associate
• FRS 102 Share-based Payments – Vesting Conditions and Cancellations
• FRS 107 Financial Instruments: Disclosures – Improving Disclosures about Financial Instruments
• FRS 108: Operating Segments
• Improvements to FRSs (where applicable)
• INT FRS 113: Customer Loyalty Programmes
• INT FRS 116: Hedges of a Net Investment in a Foreign Operation
• INT FRS 118: Transfer of Assets from Customers
Refer to page 28 for more information.
3rd Qtr
2009
3rd Qtr
2008
%
chg
2nd Qtr
2009
%
chg
9 Mths
2009
9 Mths
2008
%
chg
1,140
361
76
1,577
635
942
265
704
1,071
316
11
1,398
578
820
319
522
6
14
>100
13
10
15
(17)
35
1,112
358
322
1,792
631
1,161
466
708
3
1
(76)
(12)
1
(19)
(43)
(1)
3,328
1,036
667
5,031
1,904
3,127
1,145
2,042
3,186
1,011
363
4,560
1,921
2,639
515
2,189
4
2
84
10
(1)
18
>100
(7)
Selected income statement items ($m)
Net interest income
Net fee and commission income
Other non-interest income
Total income
Expenses
Profit before allowances
Allowances for credit and other losses
Profit before tax
Net profit
563
402
40
552
2
1,571
1,673
(6)
563
(23)
379
NM
49
552
2
(23)
1,548
(39)
1,634
(41)
(5)
128,308
33,365
259,470
127,541
29,592
260,241
1
13
-
127,970
35,204
262,948
(5)
(1)
128,308
33,365
259,470
127,541
29,592
260,241
1
13
-
180,185
230,128
25,174
166,448
235,908
20,141
8
(2)
25
179,033
234,274
24,465
1
(2)
3
180,185
230,128
25,174
166,448
235,908
20,141
8
(2)
25
Key financial ratios (%) (excluding one-time
6/
items)
Net interest margin
Non-interest/total income
Cost/income ratio
Return on assets
7/
Return on equity
Loan/deposit ratio
NPL ratio
Specific allowances (loans)/average loans (bp)
2.03
27.7
40.3
0.86
9.08
71.2
2.6
70
1.99
23.4
41.3
0.63
7.93
76.6
1.3
34
2.01
37.9
35.2
0.82
9.10
71.5
2.8
83
2.02
33.9
37.8
0.81
8.65
71.2
2.6
75
2.04
30.1
42.1
0.90
10.91
76.6
1.3
Tier 1 capital adequacy ratio
Total capital adequacy ratio
12.5
16.1
9.7
13.4
12.6
16.2
12.5
16.1
9.7
13.4
2/
One-time items
Net profit including one-time items
Selected balance sheet items ($m)
3/
Customer loans
Interbank assets 4/
Total assets
5/
Customer deposits
Total liabilities
Shareholders’ funds
22
2
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
3rd Qtr
2009
3rd Qtr
2008
2nd Qtr
2009
9 Mths
2009
9 Mths
2008
0.98
0.89
0.96
0.93
1.24
0.98
10.76
0.88
10.38
0.96
10.45
0.92
10.76
1.22
10.38
0.95
0.86
0.93
0.90
1.20
0.95
10.57
0.85
10.28
0.93
10.27
0.89
10.57
1.18
10.28
Per share data ($) 8/
Per basic share
– earnings excluding one-time items and
goodwill charges
– earnings
7/
– net book value
Per diluted share
– earnings excluding one-time items and
goodwill charges
– earnings
– net book value 7/
Notes:
1/ All the FRS and INT FRS were adopted on 1 January 2009, except INT FRS 118: Transfer of Assets from Customers, which was adopted on 1 July 2009
2/ One-time items include restructuring costs, impairment charges for Thai investment and gains on sale of office buildings in Hong Kong
3/ Includes customer loans classified as financial assets at fair value through profit or loss on the balance sheet
4/ Includes interbank assets classified as financial assets at fair value through profit or loss on the balance sheet
5/ Includes customer deposits classified as financial liabilities at fair value through profit or loss on the balance sheet
6/ Return on assets, return on equity, specific allowances (loan)/average loan and per share data for the quarters are computed on an annualised basis
7/ Minority interests are not included as equity in the computation of net book value and return on equity
8/ Adjusted for shares arising from the rights issue in January 2009
NM Not Meaningful
Third-quarter net profit of $563 million was 2% above the
previous quarter as business trends remained healthy and
cost discipline was maintained. Non-performing loans
declined, resulting in lower allowance charges and an
increase in the coverage of non-performing assets.
Compared to a year ago, earnings were 40% higher from
broad-based revenue growth and lower allowances.
Net interest income rose 3% from the previous quarter and
6% from a year ago to a record $1.14 billion. Net fee
income of $361 million was marginally above the previous
quarter’s level and 14% above a year ago mainly from
capital market activities. Trading income declined from the
previous quarter but was better than a year ago.
Investment gains also fell from the previous quarter but
were similar to a year ago.
Expenses of $635 million were maintained around the
previous quarter’s level, with the cost-income ratio at a
healthy 40%.
The non-performing loan rate fell to 2.6% from 2.8% in
the previous quarter mainly due to customer
repayments. The improvement was broad-based
across markets.
The better asset quality resulted in a 43% decline in
allowance charges from the previous quarter to $265
million, with specific allowances falling to 70 basis points
of loans from 83 basis points. Allowance coverage rose
to 90% and to 128% if collateral was considered.
The total capital adequacy ratio stood at 16.1% with tier1 at 12.5%.
Return on assets was 0.86%, which was better than the
previous quarter, while return on equity was maintained
at 9.1%. Both ratios were better than a year ago.
For the nine months, net earnings fell 6% to $1.57 billion,
with an 18% improvement in profit before allowances
offset by higher allowances.
3
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET INTEREST INCOME
Average balance
sheet
3rd Qtr 2009
Average
Average
rate
balance Interest
(%)
($m)
($m)
3rd Qtr 2008
Average
Average
rate
balance Interest
(%)
($m)
($m)
2nd Qtr 2009
Average
Average
rate
balance Interest
(%)
($m)
($m)
Interest-bearing
assets
Customer loans
Interbank assets
Securities
Total
127,454
42,410
52,461
222,325
983
94
402
1,479
3.06
0.88
3.05
2.64
122,205
41,233
50,841
214,279
1,254
243
528
2,025
4.08
2.35
4.13
3.76
127,447
42,582
51,638
221,667
1,017
95
431
1,543
3.20
0.90
3.34
2.79
Interest-bearing
liabilities
Customer deposits
Other borrowings
Total
179,319
26,585
205,904
227
112
339
0.50
1.68
0.65
162,150
40,429
202,579
582
372
954
1.43
3.66
1.87
177,983
28,067
206,050
297
134
431
0.67
1.90
0.84
1,140
2.03
1,071
1.99
1,112
2.01
Net interest
1/
income/margin
9 Mths 2009
Average balance
sheet
Average
balance
($m)
9 Mths 2008
Average Average
Interest
rate balance
($m)
(%)
($m)
Interest
($m)
Average
rate
(%)
Interest-bearing
assets
Customer loans
Interbank assets
Securities
Total
127,692
41,806
50,959
220,457
3,107
296
1,274
4,677
3.26
0.95
3.35
2.84
115,474
40,385
52,765
208,624
3,716
763
1,628
6,107
4.30
2.52
4.12
3.91
Interest-bearing
liabilities
Customer deposits
Other borrowings
Total
177,221
27,488
204,709
912
437
1,349
0.69
2.14
0.88
158,151
40,242
198,393
1,742
1,179
2,921
1.47
3.91
1.97
3,328
2.02
3,186
2.04
Net interest
1/
income/margin
Note:
1/ Net interest margin is net interest income expressed as a percentage of average interest-earning assets
Net interest income rose 3% from the previous quarter to
$1.14 billion. Average asset volumes were little changed.
Interest margins were little changed at 2.03%. Lower
funding costs were offset by reduced asset yields in a low
interest rate environment.
Compared to a year ago, net interest income rose 6%.
Interest margins were four basis points higher as a
result of better credit spreads and lower funding costs,
which more than offset the impact of low market interest
rates. Average asset volumes, particularly loans, were
also higher.
4
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
3rd Qtr 2009 versus 3rd Qtr 2008
Volume and rate analysis ($m)
Increase/(decrease) due to change in
3rd Qtr 2009 versus 2nd Qtr 2009
Volume
Rate
Net
change
Volume
Rate
Net
change
Customer loans
Interbank assets
Securities
54
7
17
(325)
(156)
(143)
(271)
(149)
(126)
-
(47)
(1)
(47)
(1)
Total
78
(624)
(546)
7
7
(39)
(87)
(32)
(80)
61
(131)
(70)
(416)
(129)
(545)
(355)
(260)
(615)
2
(7)
(5)
(75)
(15)
(90)
(73)
(22)
(95)
148
(79)
69
12
3
15
Interest income
Interest expense
Customer deposits
Other borrowings
Total
Net impact on interest income
Due to change in number of days
Net Interest Income
-
13
69
28
9 Mths 2009 versus 9 Mths 2008
Volume and rate analysis ($m)
Increase/(decrease) due to change in
Volume
Rate
Net
change
393
27
(56)
364
(989)
(492)
(294)
(1,775)
(596)
(465)
(350)
(1,411)
210
(387)
(177)
(1,036)
(352)
(1,388)
(826)
(739)
(1,565)
541
(387)
154
Interest income
Customer loans
Interbank assets
Securities
Total
Interest expense
Customer deposits
Other borrowings
Total
Net impact on interest income
Due to change in number of days
(12)
Net Interest Income
142
5
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET FEE AND COMMISSION INCOME
($m)
Stockbroking
Investment banking
Trade and remittances
Loan related
Guarantees
Deposit related
Credit card
Fund management
Wealth management
Others
Total
3rd Qtr
2009
3rd Qtr
2008
% chg
2nd Qtr
2009
% chg
9 Mths
2009
9 Mths
2008
% chg
51
43
56
86
14
21
37
5
34
14
361
31
20
61
77
13
19
38
4
35
18
316
65
>100
(8)
12
8
11
(3)
25
(3)
(22)
14
50
27
59
108
14
22
37
6
21
14
358
2
59
(5)
(20)
(5)
(17)
62
1
129
87
189
290
43
63
107
16
71
41
1,036
120
74
169
249
38
60
107
27
120
47
1,011
8
18
12
16
13
5
(41)
(41)
(13)
2
Net fee and commission income of $361 million was
marginally higher than the previous quarter as capital
market activities remained strong. An increase in wealth
management revenues was helped by performance-related
fees recognised during the quarter. It offset a decline in
loan-related fees, which had benefited in the previous
quarter from several large transactions.
Compared to a year ago, higher contributions from
stockbroking and investment banking resulted in a 14%
increase in fee income.
OTHER NON-INTEREST INCOME
($m)
3rd Qtr
2009
3rd Qtr
2008
%
chg
2nd Qtr
2009
%
chg
9 Mths
2009
9 Mths
2008
%
chg
Net trading income/(loss)
83
(281)
NM
234
(65)
521
(331)
NM
From trading businesses
From other businesses
Net (loss)/income from financial
instruments designated at fair value
Net income on financial investments
1/
Net gain on fixed assets
Others (include rental income)
90
(7)
(303)
22
NM
NM
246
(12)
(63)
42
595
(74)
(367)
36
NM
NM
(27)
268
NM
(62)
56
(143)
379
NM
7
13
3
2
19
>100
NM
(32)
138
12
(95)
8
251
38
263
5
47
(5)
NM
(19)
76
11
>100
322
(76)
667
363
84
Total
Notes:
1/ Exclude one-time items
NM Not Meaningful
Other non-interest income fell to $76 million from $322
million in the previous quarter. Trading income declined
to $56 million from $172 million due to lower gains in
interest rate and foreign exchange activities, as well as
lower asset valuation gains.
Investment gains of $7 million were also lower than the
previous quarter but similar to a year ago.
Other non-interest income was better than the $11
million a year ago, when trading activities recorded a
loss of $13 million.
6
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
EXPENSES
($m)
3rd Qtr
2009
3rd Qtr
2008
% chg
2nd Qtr
2009
% chg
9 Mths
2009
9 Mths
2008
% chg
Staff 1/
Occupancy
Computerisation
Revenue-related
Others
Total
Staff headcount at period-end
322
71
114
27
101
635
13,868
188
66
115
38
171
578
15,166
71
8
(1)
(29)
(41)
10
(9)
330
67
104
33
97
631
13,928
(2)
6
10
(18)
4
1
(0)
979
209
330
93
293
1,904
13,868
910
185
326
112
388
1,921
15,166
8
13
1
(17)
(24)
(1)
(9)
64
1
42
1
52
-
42
1
52
-
147
2
113
3
30
(33)
2
1
100
2
-
6
5
20
Included in the above table were:
Depreciation of properties and other
fixed assets
Director’s fees
Audit fees payable
Note:
1/ Exclude one-time items
Expenses of $635 million were slightly above the previous
quarter. A decline in staff costs was offset by higher
computerisation and occupancy expenses. Headcount
was little changed from the previous quarter.
Compared to a year ago, costs were 10% higher. This
was due to higher staff costs as bonus accruals had
been curtailed in the year-ago period. Other costs fell as
the year-ago period had included compensation for
certain structured product customers. Headcount was
9% lower from a year ago and included the impact of an
organisational streamlining in fourth quarter 2008.
7
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
ALLOWANCES FOR CREDIT AND OTHER LOSSES
($m)
General allowances (GP)
Specific allowances (SP) for loans
Singapore
Hong Kong
Other countries
Specific allowances (SP) for
securities, properties and other
1/
assets
Total
3rd Qtr
2009
3rd Qtr
2008
% chg
2nd Qtr
2009
% chg
9 Mths
2009
9 Mths
2008
% chg
14
129
(89)
183
(92)
379
188
>100
229
201
14
14
106
31
58
17
>100
>100
(76)
(18)
272
177
66
29
(16)
14
(79)
(52)
726
442
173
111
195
63
110
22
>100
>100
57
>100
22
84
(74)
11
100
40
132
(70)
265
319
(17)
466
(43)
1,145
515
>100
Notes:
1/ Exclude one-time items
Specific allowances for loans fell to $229 million from
$272 million in the previous quarter. The amounts
shown in the table above are by booking centre.
existing NPLs. Specific allowances for Hong Kong were
significantly lower than the previous quarter and a year
ago.
Specific allowances for Singapore were 14% higher
than the previous quarter mainly due to allowances for
General allowances amounted to $14 million in line with
asset growth.
8
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY BUSINESS SEGMENTS
($m)
CBG
IBG
GFM
CTU
Central
Ops
Total
Selected income items
3rd Qtr 2009
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
226
142
368
260
24
84
12
72
507
245
752
188
176
388
66
322
278
94
372
106
5
1
262
56
206
172
(81)
91
8
83
16
67
(43)
37
(6)
73
60
26
(113)
(37)
(104)
1,140
437
1,577
635
265
27
704
113
563
2nd Qtr 2009
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
201
123
324
253
32
39
7
32
478
288
766
201
221
344
63
281
313
128
441
116
6
3
322
66
256
173
(121)
52
14
(1)
39
10
29
(53)
262
209
47
208
10
(36)
(42)
(46)
1,112
680
1,792
631
466
13
708
104
552
270
152
422
354
14
54
7
47
420
233
653
204
166
283
55
228
262
(40)
222
132
26
2
66
3
63
178
(40)
138
12
201
(75)
(75)
(59)
22
(37)
(124)
(88)
19
194
(6)
139
1,071
327
1,398
578
319
21
522
59
402
619
378
997
751
66
180
26
154
1,452
819
2,271
567
595
1,109
217
892
878
322
1,200
340
18
5
847
181
666
518
(72)
446
33
49
364
62
302
(139)
256
117
213
417
55
(458)
(154)
(443)
3,328
1,703
5,031
1,904
1,145
60
2,042
332
1,571
1/
3rd Qtr 2008
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
1/
9 Mths 2009
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
9
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
CBG
IBG
GFM
CTU
Central
Ops
Total
889
487
1,376
885
31
460
76
384
1,224
775
1,999
595
282
1,122
213
909
881
0
881
418
50
2
415
97
318
472
(54)
418
33
219
166
37
129
(280)
166
(114)
(10)
(67)
63
26
(54)
(67)
3,186
1,374
4,560
1,921
515
65
2,189
369
1,673
38,985
99,242
86,354
27,222
1,820
101,717
6
11
66,660
6
5
41,386
2
3
751
-
19,614
36
45
253,623
5,847
259,470
230,128
50
64
-
37,809
99,512
88,623
29,706
1,451
103,231
4
11
61,484
6
5
47,047
3
3
1,349
-
21,163
8
23
36,004
96,586
86,760
26,344
5,177
95,537
32
6
60,390
7
3
48,930
3
2
1,496
-
26,362
12
25
35,575
97,229
88,389
28,336
4,865
90,899
9
10
59,988
8
2
56,088
11
3
1,890
-
27,043
39
27
1/
9 Mths 2008
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
Selected balance sheet and other
2/
items
30 Sept 2009
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 3rd Qtr 2009
Depreciation for 3rd Qtr 2009
Goodwill charge for 3rd Qtr 2009
30 Jun 2009
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 2nd Qtr 2009
Depreciation for 2nd Qtr 2009
Goodwill charge for 2nd Qtr 2009
31 Dec 2008
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 4th Qtr 2008
Depreciation for 4th Qtr 2008
Goodwill charge for 4th Qtr 2008
30 Sept 2008
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 3rd Qtr 2008
Depreciation for 3rd Qtr 2008
Goodwill charge for 3rd Qtr 2008
Notes:
1/ Expenses, allowances for credit and other losses and profits 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
10
257,101
5,847
262,948
234,274
21
42
-
250,871
5,847
256,718
232,715
54
36
-
254,394
5,847
260,241
235,908
67
42
-
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
The business segment results are prepared based on
the Group’s internal management reporting which
reflects the organisation management reporting
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. During the quarter, no one
group of related customers generated more than 10% of
the Group’s revenues.
The various business segments are described below:
Consumer Banking (CBG)
CBG 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 and investment products.
Compared to the previous quarter, net interest income
rose due to lower deposit costs and higher housing loan
volumes. Non-interest income was higher from an
increase in wealth management revenues, helped by
performance-related fees recognised during the quarter.
Expenses rose in line with higher business volumes,
while allowances were lower as economic and financial
market conditions improved.
Institutional Banking (IBG)
IBG provides financial services and products to large
corporate, institutional clients and small and mediumsized businesses. The products and services available
to customers include corporate finance and advisory
banking services for mergers and acquisitions, capital
raising through debt and equity markets, capital
restructuring, syndicated finance, securities and
fiduciary services, cash management and trade
services, private equity and credit facilities, deposit and
treasury products.
Compared to the previous quarter, revenues were little
changed as an increase in net interest income was offset
by lower loan-related fees. Expenses were slightly lower,
while allowances declined due to lower specific allowance
charges for Hong Kong.
Global Financial Markets (GFM)
GFM provides treasury services to corporations,
institutional and private investors, financial institutions and
other market participants. It is primarily involved in market
making, structuring, equity and debt sales and trading
across a broad range of financial products including
foreign exchange, interest rate/credit/equity and other
structured derivatives. Income from these financial
products and services offered to the customer of other
business segments, such as Consumer Banking and
Institutional Banking, is reflected in the respective
segments. GFM also provides equity services through
DBS Vickers Securities (DBSV). DBSV offers a wide
range of services to retail and corporate customers
including research, sales and trading, share placement,
nominees and securities custodian services and
distribution of primary and secondary issues.
Compared to the previous quarter, GFM’s revenues fell
due to lower gains from interest rate and foreign exchange
activities as well as lower asset valuation gains. Expenses
were also lower in line with revenues.
Central Treasury Unit (CTU)
CTU is responsible for the management of the Group’s
asset and liability interest rate positions and investment of
the Group’s excess liquidity and shareholders’ funds.
Central Operations
Central Operations encompasses a range of activities
from corporate decisions and income and expenses not
attributed to other business segments. Asset management
and private banking activities are included in this segment.
11
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY GEOGRAPHY
($m)
S’pore
Hong
Kong
Rest of
Greater
China
South
and
Southeast Asia
Rest of
world
Total
Selected income items
3rd Qtr 2009
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
706
228
934
367
227
6
346
50
268
226
105
331
145
14
172
29
143
73
28
101
66
14
5
26
5
21
84
36
120
44
10
16
82
12
70
51
40
91
13
78
17
61
1,140
437
1,577
635
265
27
704
113
563
2nd Qtr 2009
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
673
471
1,144
360
372
4
416
40
324
222
120
342
151
71
120
21
99
74
29
103
63
13
3
30
9
21
90
31
121
41
10
6
76
18
58
53
29
82
16
66
16
50
1,112
680
1,792
631
466
13
708
104
552
3rd Qtr 2008
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
696
188
884
286
214
10
394
32
301
213
109
322
170
62
90
14
76
86
7
93
65
18
3
13
2
11
41
21
62
42
17
8
11
1
10
35
2
37
15
8
14
10
4
1,071
327
1,398
578
319
21
522
59
402
9 Mths 2009 1/
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
2,034
1,003
3,037
1,102
825
13
1,123
133
851
672
352
1,024
446
173
405
69
336
227
94
321
189
39
11
104
23
81
247
149
396
126
54
36
252
61
191
148
105
253
41
54
158
46
112
3,328
1,703
5,031
1,904
1,145
60
2,042
332
1,571
1/
12
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
S’pore
Hong
Kong
Rest of
Greater
China
South
and
Southeast Asia
Rest of
world
Total
2,126
710
2,836
1,099
322
15
1,430
221
1,062
652
424
1,076
518
121
437
63
374
193
60
253
138
32
14
97
16
81
120
136
256
120
22
36
150
34
116
95
44
139
46
18
75
35
40
3,186
1,374
4,560
1,921
515
65
2,189
369
1,673
Selected balance sheet items 2/
30 Sept 2009
Total assets before goodwill
Goodwill on consolidation
Total assets
3/
Non-current assets
165,741
198
165,939
1,457
47,342
5,649
52,991
555
15,023
15,023
147
12,676
12,676
49
12,841
12,841
1
253,623
5,847
259,470
2,209
30 Jun 2009
Total assets before goodwill
Goodwill on consolidation
Total assets
3/
Non-current assets
169,570
198
169,768
1,465
46,754
5,649
52,403
573
13,778
13,778
143
13,243
13,243
45
13,756
13,756
2
257,101
5,847
262,948
2,228
31 Dec 2008
Total assets before goodwill
Goodwill on consolidation
Total assets
Non-current assets 3/
170,132
198
170,330
1,457
44,119
5,649
49,768
570
16,563
16,563
141
9,889
9,889
38
10,168
10,168
2
250,871
5,847
256,718
2,208
30 Sept 2008
Total assets before goodwill
Goodwill on consolidation
Total assets
3/
Non-current assets
165,603
198
165,801
1,494
48,782
5,649
54,431
580
16,717
16,717
139
10,502
10,502
36
12,790
12,790
3
254,394
5,847
260,241
2,252
1/
9 Mths 2008
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
Notes:
1/ Expenses, allowances for credit and other losses and profits 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
3/ Includes investment in associates, properties and other fixed assets, and investment properties
13
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
The performance by geography is classified based on the
location in which income and assets are recorded.
Singapore
Net profit fell to $268 million from $324 million in the
previous quarter as lower revenues were partially offset
by reduced allowances.
Net interest income rose 5% from the previous quarter
from lower deposit costs. Non-interest income halved as
trading income and gains from the sale of financial
investments declined.
Expenses were little changed. The decline in allowances
was due to lower general allowances, partially offset by
higher specific allowances for corporate loans booked in
Singapore but for use in other regions.
Hong Kong
The third quarter’s results incorporate an appreciation of
the Singapore dollar against the Hong Kong dollar of 2%
from the previous quarter and a depreciation of 3% from a
year ago.
Net profit rose to $143 million from $99 million in the
previous quarter as allowances were lower.
Net interest income was little changed from the previous
quarter. Non-interest income fell 13% due to lower trading
income and sales of treasury products, partially offset by
higher stockbroking, unit trust and trade finance fee
income.
Expenses were stable from the previous quarter.
Allowances fell 80% as specific allowances for IBG loans
declined aided by write-backs.
14
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CUSTOMER LOANS
1/
($m)
30 Sept 2009
30 Jun 2009
130,863
130,406
128,365
129,255
General allowances
Net total
1,214
1,341
128,308
1,090
1,346
127,970
868
1,016
126,481
711
1,003
127,541
By business unit
Consumer Banking
Institutional Banking
Others
Total (Gross)
36,795
87,532
6,536
130,863
35,458
88,418
6,530
130,406
34,758
87,415
6,192
128,365
34,111
88,100
7,044
129,255
By geography
Singapore
Hong Kong
Rest of Greater China
South and South-east Asia
Rest of the world
Total (Gross)
74,807
31,828
9,510
8,399
6,319
130,863
73,610
31,951
9,154
8,437
7,254
130,406
74,377
32,085
9,683
5,557
6,663
128,365
72,622
33,405
10,123
5,915
7,190
129,255
By industry
Manufacturing
Building and construction
Housing loans
General commerce
Transportation, storage & communications
Financial institutions, investment & holding companies
Professionals & private individuals (except housing loans)
Others
Total (Gross)
16,242
17,722
30,956
12,245
13,026
16,939
10,559
13,174
130,863
15,589
18,220
29,821
12,117
13,043
17,107
10,660
13,849
130,406
15,958
17,931
29,375
13,075
12,457
14,490
10,478
14,601
128,365
17,108
17,445
28,843
12,588
12,878
14,695
10,685
15,013
129,255
56,556
20,182
36,374
29,042
602
28,440
27,773
2,078
25,695
17,492
3,032
14,460
130,863
56,448
18,842
37,606
29,141
631
28,510
28,076
1,583
26,493
16,741
2,460
14,281
130,406
53,527
15,795
37,732
29,347
664
28,683
28,123
1,736
26,387
17,368
2,695
14,673
128,365
51,387
14,958
36,429
29,900
694
29,206
29,428
2,054
27,374
18,540
3,247
15,293
129,255
Gross
Less:
Specific allowances
31 Dec 2008 30 Sept 2008
By currency and fixed/variable pricing
Singapore dollar
Fixed rates
Floating or adjustable rates
Hong Kong dollar
Fixed rates
Floating or adjustable rates
US dollar
Fixed rates
Floating or adjustable rates
Others
Fixed rates
Floating or adjustable rates
Total (Gross)
Note:
1/ Includes customer loans classified as financial assets at fair value through profit or loss on the balance sheet
Underlying customer loan volumes rose 1% from the
previous quarter but were flat at $128.3 billion after currency
translation effects. The underlying growth was due to
housing loans in Singapore and Hong Kong.
Loans in Hong Kong rose 2% in local currency terms
from the previous quarter with most of the growth
coming from housing loans.
15
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NON-PERFORMING ASSETS AND LOSS ALLOWANCE COVERAGE
1/
By business unit
NPA
($m)
SP
($m)
GP
($m)
NPL
(% of loans)
(GP+SP)/NPA
(%)
(GP+SP)/
unsecured
NPA
(%)
335
78
359
0.9
131
287
2,532
928
867
2.9
71
102
552
282
115
8.5
72
95
3,419
1,288
1,341
2.6
77
113
208
131
342
-
227
282
196
102
218
-
163
177
3,823
1,521
1,901
-
90
128
344
80
354
1.0
126
281
2,757
844
876
3.1
62
94
591
227
116
9.1
58
78
3,692
1,151
1,346
2.8
68
103
192
134
339
-
246
275
167
79
214
-
175
192
4,051
1,364
1,899
-
81
119
290
76
347
0.8
146
311
1,467
684
867
1.7
106
169
201
160
(198)
3.3
(19)
(23)
1,958
920
1,016
1.5
99
159
277
236
288
-
189
193
157
52
220
-
173
421
2,392
1,208
1,524
-
114
176
309
107
340
0.9
145
297
1,179
562
876
1.3
122
208
199
118
(160)
2.8
(21)
(38)
1,687
787
1,056
1.3
109
193
285
252
290
-
190
216
82
7
137
-
176
2,171
2,054
1,046
1,483
-
123
209
30 Sept 2009
Consumer Banking
Institutional Banking
Others
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
30 Jun 2009
Consumer Banking
Institutional Banking
Others
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
31 Dec 2008
Consumer Banking
Institutional Banking
Others
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
30 Sept 2008
Consumer Banking
Institutional Banking
Others
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
Note:
1/ Allowances for credit and other losses exclude one-time items
16
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By geography
30 Sept 2009
Singapore
Hong Kong
Rest of Greater China
South and South-east
Asia
Rest of the World
Total non-performing
loans
Debt securities
Contingent liabilities
& others
Total non-performing
assets
30 Jun 2009
Singapore
Hong Kong
Rest of Greater China
South and South-east
Asia
Rest of the World
Total non-performing
loans
Debt securities
Contingent liabilities
& others
Total non-performing
assets
31 Dec 2008
Singapore
Hong Kong
Rest of Greater China
South and South-east
Asia
Rest of the World
Total non-performing
loans
Debt securities
Contingent liabilities
& others
Total non-performing
assets
30 Sept 2008
Singapore
Hong Kong
Rest of Greater China
South and South-east
Asia
Rest of the World
Total non-performing
loans
Debt securities
Contingent liabilities
& others
Total non-performing
assets
NPA
($m)
SP
($m)
GP
($m)
NPL
(% of loans)
(GP+SP)/NPA
(%)
(GP+SP)/
unsecured
NPA
(%)
773
650
376
208
375
198
564
318
113
1.3
2.0
3.6
100
107
83
249
157
129
174
72
195
1.5
153
181
1,446
435
151
9.4
41
49
3,419
1,288
1,341
2.6
77
113
208
131
342
-
227
282
196
102
218
-
163
177
3,823
1,521
1,901
-
90
128
803
769
441
190
394
229
573
319
109
1.3
2.4
4.3
95
93
77
246
154
126
250
79
182
2.3
104
129
1,429
259
163
8.8
30
36
3,692
1,151
1,346
2.8
68
103
192
134
339
-
246
275
167
79
214
-
175
192
4,051
1,364
1,899
-
81
119
678
587
457
271
313
241
316
343
117
1.1
1.7
4.3
87
112
78
151
176
128
133
59
159
1.2
164
171
103
36
81
0.7
114
252
1,958
920
1,016
1.5
99
159
277
236
288
-
189
193
157
52
220
-
173
421
2,392
1,208
1,524
-
114
176
531
467
437
235
223
226
338
330
124
0.9
1.4
3.8
108
119
80
213
212
139
110
56
145
1.1
182
194
142
47
119
0.9
117
242
1,687
787
1,056
1.3
109
193
285
252
290
-
190
216
82
7
137
-
176
2,171
2,054
1,046
1,483
-
123
209
17
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By industry
($m)
30 Sept 2009
30 Jun 2009
31 Dec 2008
30 Sept 2008
NPA
SP
NPA
SP
NPA
SP
NPA
SP
Manufacturing
Building and construction
Housing loans
694
93
234
349
24
41
782
203
242
361
46
42
720
96
193
351
30
43
485
92
190
246
28
46
General commerce
Transportation, storage &
communications
480
246
177
39
509
221
185
10
381
24
187
6
331
13
175
7
1,200
369
1,209
236
145
66
191
78
265
138
310
146
223
129
206
108
207
3,419
151
1,288
216
3,692
125
1,151
176
1,958
108
920
179
1,687
99
787
208
196
131
102
192
167
134
79
277
157
236
52
285
82
252
7
Total non-performing assets
3,823
1,521
4,051
1,364
2,392
1,208
2,054
1,046
By loan classification
($m)
30 Sept 2009
Financial institutions, investment
& holding companies
Professionals & private
individuals (except housing
loans)
Others
Total non-performing loans
Debt securities
Contingent liabilities & others
Non-performing assets
Substandard
Doubtful
Loss
Total
Restructured assets
Substandard
Doubtful
Loss
Total
30 Jun 2009
31 Dec 2008
30 Sept 2008
NPA
SP
NPA
SP
NPA
SP
NPA
SP
2,476
830
517
3,823
356
648
517
1,521
2,816
791
444
4,051
268
652
444
1,364
1,328
800
264
2,392
213
730
265
1,208
1,141
644
269
2,054
201
575
270
1,046
440
68
44
552
62
54
44
160
467
169
57
693
69
105
56
230
213
57
49
319
46
49
46
141
246
29
53
328
72
27
53
152
By collateral type
($m)
30 Sept 2009
30 Jun 2009
31 Dec 2008
NPA
NPA
NPA
NPA
2,683
2,741
1,554
1,211
Secured non-performing assets by collateral type
Properties
629
800
556
505
Shares and debentures
149
231
43
76
Fixed deposits
Others
13
13
16
22
349
266
223
240
3,823
4,051
2,392
2,054
Unsecured non-performing assets
Total
30 Sept 2008
18
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By period overdue
($m)
Not overdue
180 days overdue
Total
30 Sept 2009
30 Jun 2009
31 Dec 2008
30 Sept 2008
NPA
NPA
NPA
NPA
1,313
648
655
1,207
1,547
1,036
468
1,000
857
463
326
746
832
281
307
634
3,823
4,051
2,392
2,054
Non-performing loans fell 7% from the previous quarter to
$3.42 billion or 2.6% of the loan portfolio. The decline was
led by repayments in Hong Kong, Rest of Greater China
and South and South-east Asia. New NPL formation was
also lower than the previous quarter.
were still current in principal and interest and were
classified for prudent reasons.
Allowance coverage for non-performing assets rose
from 81% in the previous quarter to 90%. If collateral
was considered, the coverage rose from 119% to 128%.
Including debt securities and contingent liabilities, nonperforming assets amounted to $3.82 billion, of which 34%
FUNDING SOURCES
($m)
1/
Customer deposits
Interbank liabilities 2/
2/
Other borrowings and liabilities
Shareholders’ funds
Total
30 Sept 2009
30 Jun 2009
31 Dec 2008
30 Sept 2008
180,185
9,138
44,973
25,174
259,470
179,033
11,177
48,273
24,465
262,948
169,858
9,571
57,470
19,819
256,718
166,448
19,616
54,036
20,141
260,241
Notes:
1/
Includes customer deposits classified as financial liabilities at fair value through profit or loss on the balance sheet
2/
Includes liabilities classified as financial liabilities at fair value through profit or loss on the balance sheet
19
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CUSTOMER DEPOSITS
1/
($m)
By currency and product
Singapore dollar
Fixed deposits
Savings accounts
Current accounts
Others
Hong Kong dollar
Fixed deposits
Savings accounts
Current accounts
Others
US dollar
Fixed deposits
Savings accounts
Current accounts
Others
Others
Fixed deposits
Savings accounts
Current accounts
Others
30 Sept 2009
30 Jun 2009
31 Dec 2008
30 Sept 2008
99,475
18,358
67,186
12,794
1,137
25,047
13,084
8,001
3,609
353
30,523
17,371
3,484
8,231
1,437
25,140
19,438
1,882
2,369
1,451
180,185
68,251
80,553
27,003
4,378
99,415
18,616
66,680
12,742
1,377
25,414
14,837
7,081
3,046
450
29,013
18,737
2,878
6,853
545
25,191
19,836
1,615
2,218
1,522
179,033
72,026
78,254
24,859
3,894
93,957
20,645
62,068
10,359
885
23,536
15,721
5,030
2,211
574
28,247
19,365
2,040
5,982
860
24,118
20,043
1,231
2,178
666
169,858
75,774
70,369
20,730
2,985
89,666
21,821
57,256
9,775
814
23,503
16,917
3,970
1,856
760
29,018
19,536
1,851
4,833
2,798
24,261
20,163
1,233
1,771
1,094
166,448
78,437
64,310
18,235
5,466
Total
Fixed deposits
Savings accounts
Current accounts
Others
Note:
1/ Includes customer deposits classified as financial liabilities at fair value through profit or loss on the balance sheet
The overall deposit mix improved further during the
quarter, with savings and current accounts generally
rising across currencies.
Customer deposits rose 1% from the previous quarter to
$180.2 billion as Hong Kong-dollar and US-dollar current
and savings accounts grew. Singapore-dollar deposits
were stable.
OTHER BORROWINGS & LIABILITIES
($m)
Subordinated term debts1/
Other debt securities in issue
Due within 1 year
Due after 1 year
Comprising:
2/
Secured
Unsecured
Others
Total
30 Sept 2009
30 Jun 2009
31 Dec 2008
30 Sept 2008
7,790
9,047
9,085
8,882
102
506
248
497
263
375
830
1,094
108
500
36,575
44,973
171
574
38,481
48,273
333
305
47,747
57,470
269
1,655
43,230
54,036
Notes:
1/ All subordinated term debts issued are unsecured
2/ These are mainly secured by properties and securities
20
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
VALUE AT RISK AND TRADING INCOME
The Group uses a Value at Risk (VaR) measure as one mechanism for monitoring and controlling trading risk. The VaR is
calculated using a one-day time horizon and a 99% confidence interval. The following table shows the period-end, average,
high and low VaR for the trading risk exposure of the Group for the period from 1 October 2008 to 30 September 2009. The
Group’s trading book VaR methodology is based on Historical Simulation VaR.
($m)
1 October 2008 to 30 September 2009
Average
High
Low
As at 30 September 2009
Total
22
35
60
21
The charts below provide the range of VaR and the daily distribution of trading income in the trading portfolio for the
period from 1 October 2008 to 30 September 2009.
D BSH Gr oup Va R for Tr a ding Book
30
No. of Days
25
20
15
10
5
> 19- 20
> 20- 21
> 21- 22
> 22- 23
> 23- 24
> 24- 25
> 25- 26
> 26- 27
> 27- 28
> 28- 29
> 29- 30
> 30- 31
> 31- 32
> 32- 33
> 33- 34
> 34- 35
> 35- 36
> 36- 37
> 37- 38
> 38- 39
> 39- 40
> 40- 41
> 41- 42
> 42- 43
> 43- 44
> 44- 45
> 45- 46
> 46- 47
> 47- 48
> 48- 49
> 49- 50
> 50- 51
> 51- 52
> 52- 53
> 53- 54
> 54- 55
> 55- 56
> 56- 57
> 57- 58
> 58- 59
> 59- 60
0
VaR ( S$ m illion)
Note:
With effect from 1 Jun 2009, the number of historical scenarios used for the VaR calculation was revised from 500 days to 250 days
Daily Distribution of T&M Group Trading Income
(1 Oct 2008 to 30 Sep 2009)
30
25
15
10
5
Trading income (S$ million)
21
>52-54
>48-50
>44-46
>40-42
>36-38
>32-34
>28-30
>24-26
>20-22
>16-18
>12-14
>8-10
>4-6
>0-2
>(4)-(2)
>(8)-(6)
>(12)-(10)
>(16)-(14)
>(20)-(18)
>(24)-(22)
>(28)-(26)
>(32)-(30)
>(36)-(34)
>(40)-(38)
0
>(44)-(42)
No. of days
20
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CAPITAL ADEQUACY
($m)
30 Sept 2009
30 Jun 2009
31 Dec 2008
30 Sept 2008
8,432
20,761
(6,053)
23,140
8,424
20,557
(6,068)
22,913
4,215
20,180
(6,022)
18,373
4,214
20,268
(6,011)
18,471
623
6,025
65
(124)
29,729
185,222
580
6,140
42
(136)
29,539
182,635
656
6,571
27
(106)
25,521
182,685
680
6,413
27
(117)
25,474
190,188
12.5
3.6
16.1
12.6
3.6
16.2
10.1
3.9
14.0
9.7
3.7
13.4
Tier 1
Share capital
Disclosed reserves and others
Less: Tier 1 Deductions
Eligible Tier 1
Tier 2
Loan allowances admitted as Tier 2
Subordinated debts
Revaluation surplus from equity securities
Less: Tier 2 Deductions
Total eligible capital
Risk-weighted assets
Capital adequacy ratio (%)
Tier 1 ratio
Tier 2 ratio
Total (Tier 1 & 2) ratio
The Group’s capital adequacy ratio declined from 16.2% in the previous quarter to 16.1% due primarily to an increase in
risk-weighted assets.
UNREALISED VALUATION SURPLUS/(LOSSES)
($m)
Properties
Financial investments
Total
30 Sept 2009
30 Jun 2009
31 Dec 2008
30 Sept 2008
561
194
755
542
(132)
410
532
(246)
286
687
62
749
The amount of unrealised valuation surplus increased from $410 million in the previous quarter to $755 million mainly due to
higher valuations for financial investments.
22
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Consolidated Income Statement
In $ millions
3rd Qtr 3rd Qtr
2009
2008
+/(-) 2nd Qtr
%
2009
+/(-) 9 Mths 9 Mths
%
2009
2008
+/(-)
%
Income
Interest income
Interest expense
Net interest income
Net fee and commission income
Net trading (loss)/income
Net income/(loss) from financial instruments designated at fair value
Net income from financial investments
Other income
1,479
339
1,140
361
83
(27)
7
13
2,025
954
1,071
316
(281)
268
3
21
(27)
(64)
6
14
NM
NM
>100
(38)
1,543
431
1,112
358
234
(62)
138
12
(4)
(21)
3
1
NM
NM
(95)
8
4,677
1,349
3,328
1,036
521
(143)
251
38
6,107
2,921
3,186
1,011
(331)
379
263
70
(23)
(54)
4
2
NM
NM
(5)
(46)
Total income
1,577
1,398
13
1,792
(12)
5,031
4,578
10
Expenses
Employee benefits
Depreciation of properties and other fixed assets
Other expenses
Allowances for credit and other losses
322
64
249
265
188
42
348
342
71
52
(28)
(23)
330
42
259
466
(2)
52
(4)
(43)
979
147
778
1,168
910
113
898
572
8
30
(13)
>100
Total expenses
900
920
(2)
1,097
(18)
3,072
2,493
23
Profit
Share of profits of associates
Profit before tax
677
27
704
478
21
499
42
29
41
695
13
708
(3)
>100
(1)
1,959
60
2,019
2,085
65
2,150
(6)
(8)
(6)
Income tax expense
Net profit
113
591
59
440
92
34
104
604
9
(2)
332
1,687
369
1,781
(10)
(5)
563
28
591
379
61
440
49
(54)
34
552
52
604
2
(46)
(2)
1,548
139
1,687
1,634
147
1,781
(5)
(5)
(5)
+/(-) 9 Mths 9 Mths
%
2009
2008
+/(-)
%
Attributable to:
Shareholders
Minority interests
Unaudited Consolidated Statement of Comprehensive Income
In $ millions
Net profit
Other comprehensive income:
Foreign currency translation differences for foreign operations
Share of other comprehensive income of associates
Available-for-sale financial assets
Net valuation taken to equity
Transferred to income statement on sale
Tax on items taken directly to or transferred from equity
Other comprehensive income, net of tax
Total comprehensive income
Attributable to:
Shareholders
Minority interests
3rd Qtr 3rd Qtr
2009
2008
+/(-) 2nd Qtr
%
2009
591
440
34
604
(2)
1,687
1,781
(5)
(18)
1
108
23
NM
(96)
(82)
9
78
(89)
35
16
(11)
(24)
NM
NM
540
(29)
(55)
439
(291)
(11)
45
(126)
NM
(>100)
NM
NM
752
(140)
(76)
463
(28)
79
28
(5)
900
(281)
(85)
585
(992)
(238)
173
(1,092)
NM
(18)
NM
NM
1,030
314
>100
1,067
(3)
2,272
689
>100
1,029
1
1,030
184
130
314
>100
(99)
>100
1,070
(3)
1,067
(4)
NM
(3)
2,126
146
2,272
559
130
689
>100
12
>100
23
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Balance Sheets
In $ millions
30 Sept
2009
GROUP
30 Jun
31 Dec
2009
2008 1/
30 Sept
2008
30 Sept
2009
COMPANY
30 Jun
31 Dec
2009
2008 1/
30 Sept
2008
ASSETS
Cash and balances with central banks
Singapore Government securities and treasury bills
Due from banks
Financial assets at fair value though profit or loss 2/
Positive replacement values for financial derivatives
Loans and advances to customers
Financial investments
Securities pledged
Subsidiaries
Investments in associates
Goodwill on consolidation
Properties and other fixed assets
Investment properties
Deferred tax assets
Other assets
12,703
15,072
31,524
12,283
17,761
127,703
25,884
876
653
5,847
1,179
377
129
7,479
11,566
15,659
33,152
11,704
21,213
127,362
26,567
1,045
642
5,847
1,205
381
153
6,452
15,790
14,797
20,467
9,401
32,328
125,841
22,782
997
604
5,847
1,311
293
171
6,089
15,044
15,000
27,331
11,575
23,007
126,893
23,996
3,218
620
5,847
1,335
297
41
6,037
TOTAL ASSETS
259,470
262,948
256,718
260,241
Due to banks
Due to non-bank customers
Financial liabilities at fair value through profit or loss 3/
Negative replacement values for financial derivatives
Bills payable
Current tax liabilities
Deferred tax liabilities
Other liabilities
Other debt securities in issue
Subordinated term debts
8,665
174,683
10,917
18,118
774
912
56
7,605
608
7,790
10,767
173,729
10,121
20,503
717
830
59
7,756
745
9,047
9,021
163,359
11,282
31,918
714
779
45
5,874
638
9,085
19,200
158,340
15,161
23,535
762
885
11
7,208
1,924
8,882
TOTAL LIABILITIES
230,128
234,274
232,715
29,342
28,674
8,433
(120)
6,863
9,998
9,993
10,312
6,745
6,767
98
99
154
74
10,091
10,411
6,899
6,841
4
4
5
18
235,908
4
4
5
18
24,003
24,333
10,087
10,407
6,894
6,823
8,424
(120)
6,392
9,769
4,215
(154)
6,322
9,436
4,213
(137)
6,605
9,460
8,433
52
1,602
8,424
47
1,936
4,215
89
2,590
4,213
(62)
82
2,590
10,087
10,407
6,894
6,823
10,087
10,407
6,894
6,823
4.31
4.45
4.48
4.43
4.23
4.37
4.34
4.30
LIABILITIES
NET ASSETS
EQUITY
Share capital
Treasury shares
Other reserves
Revenue reserves
SHAREHOLDERS’ FUNDS
25,174
24,465
19,819
20,141
Minority interests
4,168
4,209
4,184
4,192
TOTAL EQUITY
29,342
28,674
24,003
24,333
96,850
1,415,223
102,126
1,505,163
92,656
1,704,717
110,192
2,005,986
OFF BALANCE SHEET ITEMS
Contingent liabilities and commitments
Fina