financial performance 2q09
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 second quarter ended 30 June 2009.
For the second quarter of 2009, the Directors have declared an interim one-tier tax-exempt dividend of
14 cents (second quarter 2008: 8.5 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 (second quarter 2008: 17 cents) for each DBSH ordinary share. Historical comparisons have
been adjusted for the one-for-two rights issue.
The second quarter 2009 dividends will be payable on 4 September 2009. The DBSH shares will be
quoted ex-dividend on 20 August 2009. Notice is hereby given that the Share Transfer Books and
Register of Members of the Company will be closed on 25 August 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 24 August 2009 will be registered to
determine shareholders' entitlement to the second quarter 2009 dividend. In respect of ordinary shares
in the securities accounts with The Central Depository (Pte) Limited (“CDP”), the second 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
6 Aug 2009
Singapore
More information on the above announcement is available at www.dbs.com/investor
Performance Summary
Unaudited Financial Results
For the Second Quarter ended
30 June 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 2009, 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
Refer to page 28 for more information.
2nd Qtr
2009
2nd Qtr
2008
%
chg
1st Qtr
2009
%
chg
1st Half
2009
1st Half
2008
%
chg
1,112
358
322
1,792
631
1,161
466
708
1,058
342
199
1,599
687
912
56
877
5
5
62
12
(8)
27
>100
(19)
1,076
317
269
1,662
638
1,024
414
630
3
13
20
8
(1)
13
13
12
2,188
675
591
3,454
1,269
2,185
880
1,338
2,115
695
352
3,162
1,343
1,819
196
1,667
3
(3)
68
9
(6)
20
>100
(20)
552
668
(17)
456
21
1,008
1,271
(21)
552
(16)
652
NM
(15)
(23)
433
NM
27
(23)
985
(16)
1,255
(44)
(22)
127,970
35,204
262,948
118,615
30,535
248,688
8
15
6
130,557
30,261
273,252
(2)
16
(4)
127,970
35,204
262,948
118,615
30,535
248,688
8
15
6
179,033
234,274
24,465
158,726
224,300
20,284
13
4
21
179,818
244,923
24,042
(4)
2
179,033
234,274
24,465
158,726
224,300
20,284
13
4
21
Key financial ratios (%) (excluding one-time
5/
items)
Net interest margin
Non-interest/total income
Cost/income ratio
Return on assets
6/
Return on equity
Loan/deposit ratio
NPL ratio
Specific allowances (loans)/average loans (bp)
2.01
37.9
35.2
0.82
9.10
71.5
2.8
83
2.04
33.8
43.0
1.07
13.00
74.7
1.4
18
1.99
35.3
38.4
0.69
8.01
72.6
2.0
70
2.01
36.7
36.7
0.78
8.52
71.5
2.8
77
2.07
33.1
42.5
1.05
12.41
74.7
1.4
16
Tier 1 capital adequacy ratio
Total capital adequacy ratio
12.6
16.2
10.0
13.8
12.5
16.7
12.6
16.2
10.0
13.8
Selected income statement items ($m)
Net interest income
Net fee and commission income
Other non-interest income
Total income
Expenses
Profit before allowances
Allowances for credit and other losses
Profit before tax
Net profit
1/
One-time items
Net profit including one-time items
Selected balance sheet items ($m)
2/
Customer loans
3/
Interbank assets
Total assets
4/
Customer deposits
Total liabilities
Shareholders’ funds
2
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
2nd Qtr
2009
2nd Qtr
2008
1st Qtr
2009
1st Half
2009
1st Half
2008
0.96
1.49
0.85
0.91
1.42
0.96
10.45
1.48
10.46
0.84
10.27
0.90
10.45
1.41
10.46
0.93
1.43
0.83
0.88
1.36
0.93
10.27
1.43
10.29
0.82
10.10
0.87
10.27
1.36
10.29
Per share data ($) 7/
Per basic share
– earnings excluding one-time items and
goodwill charges
– earnings
6/
– net book value
Per diluted share
– earnings excluding one-time items and
goodwill charges
– earnings
– net book value 6/
Notes:
1/ One-time items include restructuring costs, impairment charges for Thai investment and gains on sale of office buildings in Hong Kong
2/ Includes customer loans classified as financial assets at fair value through profit or loss on the balance sheet
3/ Includes interbank assets classified as financial assets at fair value through profit or loss on the balance sheet
4/ Includes customer deposits classified as financial liabilities at fair value through profit or loss on the balance sheet
5/ Return on assets, return on equity, specific allowances (loan)/average loan and per share data for the quarters are computed on an annualised basis
6/ Minority interests are not included as equity in the computation of net book value and return on equity
7/ Adjusted for shares arising from the rights issue in January 2009
NM Not Meaningful
Second-quarter net profit rose 21% from the previous
quarter to $552 million as revenue growth boosted
earnings before allowances to a record $1.16 billion.
Allowances increased as asset quality declined.
Compared to a year ago, net profit fell 17% as the
improved operating performance was offset by higher
allowances.
Revenues increased 8% from the previous quarter and
12% from a year ago to a record $1.79 billion from broadbased revenue growth. Net interest income rose 3% from
the previous quarter and 5% from a year ago to $1.11
billion as average asset volumes and credit spreads were
higher. Capital markets showed signs of improvement and
boosted net fee income 13% from the previous quarter
and 5% from a year ago to $358 million. Trading income
was higher as spreads tightened and investment gains
were made opportunistically.
Ongoing management focus on productivity improvements
resulted in expenses being maintained around the
previous quarter’s levels and 8% lower from a year ago to
$631 million. The cost-income ratio fell to 35% from 38%
in the previous quarter and 43% a year ago, and was the
best in several years.
Allowances rose 13% from the previous quarter to $466
million, which included $183 million of general
allowances to reinforce the balance sheet against
economic uncertainties. Specific allowances reached 83
basis points of loans from 70 basis points in the previous
quarter and 18 basis points a year ago.
The non-performing loan rate rose from 2.0% in the
previous quarter to 2.8%. The majority of the increase
was due to exposures to shipping and Middle East
corporates and institutions. Allowance coverage taking
into account collateral remained sound at 119% of nonperforming assets, of which 38% were still current in
principal and interest.
The total capital adequacy ratio stood at 16.2% with tier-1
at 12.6%.
Return on assets was 0.82% while return on equity was
9.1%, both improving from the previous quarter but below
a year ago.
For the first half, net earnings fell 21% to $1.01 billion,
with a 20% improvement in profit before allowances
offset by higher allowances.
3
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET INTEREST INCOME
Average balance
sheet
2nd Qtr 2009
Average
Average
rate
balance Interest
(%)
($m)
($m)
2nd Qtr 2008
Average
Average
rate
balance Interest
(%)
($m)
($m)
1st Qtr 2009
Average
balance
($m)
Interest
($m)
Average
rate
(%)
Interest-bearing
assets
Customer loans
Interbank assets
Securities
Total
127,447
42,582
51,638
221,667
1,017
95
431
1,543
3.20
0.90
3.34
2.79
113,462
41,293
53,628
208,383
1,154
262
519
1,935
4.09
2.54
3.89
3.73
128,695
41,384
49,044
219,123
1,107
107
441
1,655
3.49
1.05
3.65
3.06
Interest-bearing
liabilities
Customer deposits
Other borrowings
Total
177,983
28,067
206,050
297
134
431
0.67
1.90
0.84
157,807
40,799
198,606
487
390
877
1.24
3.84
1.77
175,464
28,227
203,691
387
192
579
0.90
2.76
1.15
1,112
2.01
1,058
2.04
1,076
1.99
Net interest
1/
income/margin
Average balance
sheet
1st Half 2009
1st Half 2008
Average
Average Average
Average
balance Interest
rate balance Interest
rate
($m)
($m)
(%)
($m)
($m)
(%)
Interest-bearing
assets
Customer loans
Interbank assets
Securities
Total
127,791
41,604
50,347
219,742
2,125
202
871
3,198
3.36
0.98
3.50
2.94
112,002
39,955
53,689
205,646
2,462
520
1,100
4,082
4.42
2.61
4.12
3.99
Interest-bearing
liabilities
Customer deposits
Other borrowings
Total
176,283
28,022
204,305
685
325
1,010
0.79
2.34
1.00
155,947
40,364
196,311
1,160
807
1,967
1.50
4.02
2.01
2,188
2.01
2,115
2.07
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
$1.11 billion from higher average asset volumes and an
improvement in net interest margins to 2.01%.
Compared to a year ago, net interest income was 5%
higher as the impact of higher customer loans was
partially offset by a decline in margins due to lower
interbank rates.
The better margins were due to improved credit spreads
and reduced funding costs partially offset by lower yields on
interbank assets as interbank rates remained soft during
the quarter.
4
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
2nd Qtr 2009 versus 2nd Qtr 2008
Volume and rate analysis ($m)
Increase/(decrease) due to change in
2nd Qtr 2009 versus 1st Qtr 2009
Volume
Rate
Net
change
Volume
Rate
Net
change
Customer loans
Interbank assets
Securities
142
8
(19)
(280)
(174)
(69)
(138)
(166)
(88)
(11)
3
23
(89)
(16)
(39)
(100)
(13)
(16)
Total
131
(523)
(392)
15
(144)
(129)
62
(131)
(69)
(252)
(125)
(377)
(190)
(256)
(446)
5
1
6
(99)
(60)
(159)
(94)
(59)
(153)
200
(146)
54
9
15
24
Interest income
Interest expense
Customer deposits
Other borrowings
Total
Net impact on interest income
Due to change in number of days
Net Interest Income
-
12
54
36
1st Half 2009 versus 1st Half 2008
Volume and rate analysis ($m)
Increase/(decrease) due to change in
Volume
Rate
Net
change
347
21
(68)
300
(672)
(338)
(155)
(1,165)
(325)
(317)
(223)
(865)
151
(256)
(105)
(622)
(223)
(845)
(471)
(479)
(950)
405
(320)
85
Interest income
Customer loans
Interbank assets
Securities
Total
Interest expense
Customer deposits
Other borrowings
Total
Net impact on interest income
Due to change in number of days
Net Interest Income
(12)
73
5
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET FEE AND COMMISSION INCOME
($m)
Stockbroking
Investment banking
Trade and remittances
Loan related
Guarantees
Deposit related
Credit card
Fund management
Wealth management
Others
Total
2nd Qtr
2009
2nd Qtr
2008
% chg
1st Qtr
2009
% chg
1st Half
2009
1st Half
2008
% chg
50
27
59
108
14
22
37
6
21
14
358
39
25
56
82
14
22
38
9
45
12
342
28
8
5
32
(3)
(33)
(53)
17
5
28
17
74
96
15
20
33
5
16
13
317
79
59
(20)
13
(7)
10
12
20
31
8
13
78
44
133
204
29
42
70
11
37
27
675
89
54
108
172
25
41
69
23
85
29
695
(12)
(19)
23
19
16
2
1
(52)
(56)
(7)
(3)
Compared to a year ago, fee income rose 5% as higher
revenues from stockbroking and loan syndication were
partially offset by declines in wealth management sales.
Net fee and commission income rose 13% from the
previous quarter to $358 million as revenues from capital
market activities – stockbroking, investment banking and
wealth management – increased. Loan syndication fees
were also higher.
OTHER NON-INTEREST INCOME
($m)
2nd Qtr
2009
2nd Qtr
2008
%
chg
1st Qtr
2009
Net trading income/(loss)
234
111
>100
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)
246
(12)
88
23
>100
NM
(62)
26
138
12
322
Total
%
chg
1st Half
2009
1st Half
2008
%
chg
204
15
438
(50)
NM
259
(55)
(5)
78
505
(67)
(64)
14
NM
NM
NM
(54)
(116)
111
NM
49
13
>100
(8)
106
13
(15)
30
(8)
244
25
260
3
28
NM
(11)
199
62
269
20
591
352
68
(6)
Notes:
1/ Exclude one-time items
NM Not Meaningful
Other non-interest income rose from $269 million in the
previous quarter to $322 million as trading income and
investment gains rose.
Net gain on investment securities of $138 million was due
largely to the sale of equity holdings and was higher than
the previous quarter and a year ago.
Trading income of $172 million was higher than the previous
quarter from gains in foreign exchange and interest rate
activities and from better asset valuations.
6
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
EXPENSES
($m)
Staff 1/
Occupancy
Computerisation
Revenue-related
Others
Total
Staff headcount at period-end
Included in the above table were:
Depreciation of properties and other
fixed assets
Director’s fees
Audit fees payable
2nd Qtr
2009
2nd Qtr
2008
% chg
1st Qtr
2009
% chg
1st Half
2009
1st Half
2008
% chg
330
67
104
33
97
631
13,928
370
61
109
40
107
687
14,800
(11)
10
(5)
(18)
(9)
(8)
(6)
327
71
112
33
95
638
14,082
1
(6)
(7)
2
(1)
(1)
657
138
216
66
192
1,269
13,928
722
119
211
74
217
1,343
14,800
(9)
16
2
(11)
(12)
(6)
(6)
42
1
37
1
14
-
41
1
83
2
71
2
17
-
2
2
-
2
2
-
4
4
-
Note:
1/ Exclude one-time items
Expenses fell 1% from the previous quarter to $631 million
as ongoing efforts to improve productivity yielded savings
in non-staff expenses. Investments for growth in emerging
markets continued to be made.
Compared to a year ago, costs were 8% lower. Staff
costs fell 11% due to a 6% reduction in headcount from
an organisational streamlining in fourth quarter 2008.
Non-staff costs were also lower.
7
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
ALLOWANCES FOR CREDIT AND OTHER LOSSES
($m)
2nd Qtr
2009
2nd Qtr
2008
% chg
1st Qtr
2009
General allowances (GP)
183
(31)
NM
182
1
Specific allowances (SP) for loans
Singapore
Hong Kong
Other countries
272
177
66
29
52
9
37
6
>100
>100
78
>100
225
64
93
68
11
35
(69)
466
56
>100
Specific allowances (SP) for
securities, properties and other
1/
assets
Total
% chg 1st Half
2009
1st Half
2008
% chg
365
59
>100
21
>100
(29)
(57)
497
241
159
97
89
32
52
5
>100
>100
>100
>100
7
57
18
48
(63)
414
13
880
196
>100
Notes:
1/ Exclude one-time items
NM Not Meaningful
Specific allowances for loans rose to $272 million from
$225 million in the previous quarter. The amounts
shown in the table above are by booking centre.
The increase in specific loan allowances from $64
million in the previous quarter to $177 million for
Singapore was due to corporate loans booked in
Singapore but for use in other regions. In Hong Kong,
specific loan allowances fell from $93 million in the
previous quarter to $66 million as NPL pressures eased.
As with the previous quarter, general allowances were
taken to buffer the balance sheet against economic
uncertainties, compared to a write-back a year ago.
8
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY BUSINESS SEGMENTS
($m)
CBG
IBG
GFM
CTU
Central
Ops
Total
Selected income items
1/
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
1st Qtr 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
192
113
305
238
10
57
7
50
467
286
753
178
198
377
88
289
287
100
387
118
7
1
263
59
204
173
130
303
11
50
242
36
206
(43)
(43)
(86)
93
149
19
(309)
(75)
(293)
1,076
586
1,662
638
414
20
630
115
456
293
175
468
277
11
180
31
149
409
264
673
199
25
449
82
367
294
59
353
153
1
(2)
197
45
152
164
(54)
110
8
5
97
17
80
(102)
97
(5)
50
14
23
(46)
(16)
(80)
1,058
541
1,599
687
56
21
877
159
668
393
236
629
491
42
96
14
82
945
574
1,519
379
419
721
151
570
600
228
828
234
13
4
585
125
460
346
9
355
25
49
281
46
235
(96)
219
123
140
357
29
(345)
(117)
(339)
2,188
1,266
3,454
1,269
880
33
1,338
219
1,008
1/
2nd 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/
1st Half 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
619
335
954
531
17
406
69
337
804
542
1,346
391
116
839
158
681
619
40
659
286
24
349
94
255
294
(14)
280
21
18
241
37
204
(221)
144
(77)
114
21
44
(168)
(48)
(206)
2,115
1,047
3,162
1,343
196
44
1,667
310
1,271
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
257,101
5,847
262,948
234,274
21
42
-
37,407
100,493
91,310
32,350
5,845
101,680
4
11
63,392
5
4
49,734
3
3
2,898
-
27,219
37
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
34,214
90,687
85,560
27,980
4,409
88,978
21
8
54,637
1
2
52,895
3
3
1,582
-
26,208
139
24
1/
1st Half 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 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 Mar 2009
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 1st Qtr 2009
Depreciation for 1st Qtr 2009
Goodwill charge for 1st 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 Jun 2008
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 2nd Qtr 2008
Depreciation for 2nd Qtr 2008
Goodwill charge for 2nd 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
267,405
5,847
273,252
244,923
49
41
-
250,871
5,847
256,718
232,715
54
36
-
242,850
5,838
248,688
224,300
164
37
-
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, CBG’s net interest
income rose due to lower deposit costs as well as higher
loan and deposit volumes. Non-interest income was
higher from better credit card activities in Singapore and
wealth management sales in Hong Kong. Expenses were
increased as business volumes rose. Allowances rose as
general allowances were taken compared to a writeback
in the previous quarter. Specific allowances were also
higher.
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, net interest income
increased due to better credit spreads. Non-interest income was
stable as an increase in loan-related fees was offset by a
decline in other non-interest income. Expenses were higher due
to staff costs and investments to support growth opportunities.
Allowances rose due to higher specific allowances for corporate
loans.
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 net interest income
was higher. Non-interest income benefited from interest rate
and foreign exchange activities, better asset valuations in the
trading portfolio as well as higher stockmarket volumes.
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
2nd Qtr 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
673
471
1,144
360
372
4
416
44
320
222
120
342
151
71
120
21
99
74
29
103
63
13
3
30
5
25
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
1st Qtr 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
655
304
959
375
226
3
361
43
259
224
127
351
150
88
113
19
94
80
37
117
60
12
3
48
9
39
73
82
155
41
34
14
94
31
63
44
36
80
12
54
14
13
1
1,076
586
1,662
638
414
20
630
115
456
2nd Qtr 2008 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
709
275
984
412
11
2
563
99
414
214
138
352
175
40
137
19
118
66
17
83
39
2
9
51
6
45
38
75
113
44
(2)
10
81
19
62
31
36
67
17
5
45
16
29
1,058
541
1,599
687
56
21
877
159
668
1,328
775
2,103
735
598
7
777
87
579
446
247
693
301
159
233
40
193
154
66
220
123
25
6
78
14
64
163
113
276
82
44
20
170
49
121
97
65
162
28
54
80
29
51
2,188
1,266
3,454
1,269
880
33
1,338
219
1,008
1/
1st Half 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
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
1,430
522
1,952
813
108
5
1,036
189
761
439
315
754
348
59
347
49
298
107
53
160
73
14
11
84
14
70
79
115
194
78
5
28
139
33
106
60
42
102
31
10
61
25
36
2,115
1,047
3,162
1,343
196
44
1,667
310
1,271
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 Mar 2009
Total assets before goodwill
Goodwill on consolidation
Total assets
3/
Non-current assets
180,978
198
181,176
1,580
46,173
5,649
51,822
611
14,438
14,438
25
12,898
12,898
67
12,918
12,918
2
267,405
5,847
273,252
2,285
31 Dec 2008
Total assets before goodwill
Goodwill on consolidation
Total assets
Non-current assets 3/
170,132
198
170,330
1,575
44,119
5,649
49,768
570
16,563
16,563
23
9,889
9,889
38
10,168
10,168
2
250,871
5,847
256,718
2,208
30 Jun 2008
Total assets before goodwill
Goodwill on consolidation
Total assets
3/
Non-current assets
159,295
189
159,484
1,490
45,284
5,649
50,933
535
16,115
16,115
136
10,059
10,059
29
12,097
12,097
3
242,850
5,838
248,688
2,193
1/
1st Half 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 items
30 Jun 2009
Total assets before goodwill
Goodwill on consolidation
Total assets
Non-current assets 3/
2/
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 rose to $320 million from $259 million in the
previous quarter but was below the $414 million a year
ago. The improvement over the previous quarter was due
to higher non-interest income partially offset by an
increase in allowances. Compared to a year ago, a better
operating performance was more than offset by higher
allowances.
Net interest income rose 3% from the previous quarter
from better credit spreads and average asset volumes,
partially offset by reduced yields on interbank assets and
securities.
Non-interest income was better than the previous quarter
due to capital market and loan syndication fee activities
as well as higher trading contributions.
Expenses were 4% lower than the previous quarter from
ongoing efforts to improve productivity. Allowances rose
due to specific allowances for corporate loans booked in
Singapore but for use in other regions.
Hong Kong
The second quarter’s results incorporate an appreciation of
the Singapore dollar against the Hong Kong dollar of 4%
from the previous quarter and a depreciation of 8% from a
year ago.
Net profit rose to $99 million from $94 million in the
previous quarter but was below the $118 million a year ago.
Net interest income was little changed from the previous
quarter as currency effects offset the benefit of higher
interest margins, which rose three basis points to 1.94%.
Prime-Hibor spreads widened and loan pricing improved,
but the benefit was partially dampened by low returns on
Hibor-based assets.
Non-interest income was lower than the previous quarter as
higher fee contributions from capital market activities and
trade finance were offset by lower trading gains.
Expenses were stable from the previous quarter as
currency effects offset the impact of higher non-staff costs.
Allowances fell 19% as specific allowances for SME and
private banking customers continued to fall.
14
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CUSTOMER LOANS
1/
($m)
30 Jun 2009
31 Mar 2009
31 Dec 2008
30 Jun 2008
Gross
Less:
Specific allowances
130,406
132,784
128,365
120,314
1,090
1,051
868
702
General allowances
Net total
1,346
127,970
1,176
130,557
1,016
126,481
997
118,615
By business unit
Consumer Banking
Institutional Banking
Others
Total (Gross)
35,458
88,418
6,530
130,406
35,237
91,184
6,363
132,784
34,758
87,415
6,192
128,365
33,166
80,153
6,995
120,314
By geography
Singapore
Hong Kong
Rest of Greater China
South and South-east Asia
Rest of the world
Total (Gross)
73,610
31,951
9,154
8,437
7,254
130,406
74,981
32,814
9,439
7,920
7,630
132,784
74,377
32,085
9,683
5,557
6,663
128,365
68,056
30,679
9,542
5,062
6,975
120,314
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)
15,589
18,220
29,821
12,117
13,043
17,107
10,660
13,849
130,406
16,946
18,786
29,882
12,426
13,073
16,988
10,346
14,337
132,784
15,958
17,931
29,375
13,075
12,457
14,490
10,478
14,601
128,365
15,417
15,906
28,039
12,303
11,854
12,499
10,697
13,599
120,314
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
56,469
17,628
38,841
30,272
680
29,592
29,194
1,686
27,508
16,849
2,436
14,413
132,784
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
46,778
13,802
32,976
27,340
644
26,696
27,871
1,475
26,396
18,325
3,109
15,216
120,314
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
Customer loans fell 2% from the previous quarter due to
currency translation effects. Underlying loan volumes were
stable. Singapore-dollar loans were little changed after
growing for several quarters.
Loans in Hong Kong rose 2% in local currency terms from
the previous quarter as consumer loans increased.
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
(%)
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
326
81
351
0.9
133
289
2,028
830
904
2.2
86
144
367
204
(79)
5.8
34
48
2,721
1,115
1,176
2.0
84
142
293
251
338
-
201
216
219
54
213
-
122
202
3,233
1,420
1,727
-
97
156
30 Jun 2009
Consumer Banking
Institutional Banking
Others
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
31 Mar 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)
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
30 Jun 2008
Consumer Banking
Institutional Banking
Others
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
327
129
331
1.0
141
253
1,187
553
789
1.5
113
189
168
71
(64)
2.2
4
10
1,682
753
1,056
1.4
108
189
198
191
158
-
176
181
98
7
134
-
144
463
1,978
951
1,348
-
116
195
Note:
1/ Allowances for credit and other losses exclude one-time items
16
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By geography
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 Mar 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 Jun 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
(%)
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
747
860
494
316
381
249
359
324
115
1.2
2.6
4.7
90
82
74
160
152
122
184
72
183
1.7
139
181
436
97
195
2.7
67
101
2,721
1,115
1,176
2.0
84
142
293
251
338
-
201
216
219
54
213
-
122
202
3,233
1,420
1,727
-
97
156
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
558
437
483
219
200
273
398
301
119
1.0
1.5
4.4
110
115
81
221
217
124
90
42
131
1.0
193
221
114
19
107
0.8
111
229
1,682
753
1,056
1.4
108
189
198
191
158
-
176
181
98
7
134
-
144
463
1,978
951
1,348
-
116
195
17
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By industry
($m)
30 Jun 2009
31 Mar 2009
31 Dec 2008
30 Jun 2008
NPA
SP
NPA
SP
NPA
SP
NPA
SP
Manufacturing
Building and construction
Housing loans
782
203
242
361
46
42
824
258
214
381
44
42
720
96
193
351
30
43
453
105
202
216
41
61
General commerce
Transportation, storage &
communications
509
221
185
10
472
29
226
7
381
24
187
6
369
23
187
8
1,209
236
433
141
145
66
160
25
310
146
299
151
223
129
192
102
216
3,692
125
1,151
192
2,721
123
1,115
176
1,958
108
920
178
1,682
113
753
192
167
134
79
293
219
251
54
277
157
236
52
198
98
191
7
Total non-performing assets
4,051
1,364
3,233
1,420
2,392
1,208
1,978
951
By loan classification
($m)
30 Jun 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
31 Mar 2009
31 Dec 2008
30 Jun 2008
NPA
SP
NPA
SP
NPA
SP
NPA
SP
2,816
791
444
4,051
268
652
444
1,364
1,931
950
352
3,233
219
849
352
1,420
1,328
800
264
2,392
213
730
265
1,208
1,159
491
328
1,978
171
451
329
951
467
169
57
693
69
105
56
230
282
61
44
387
61
51
44
156
213
57
49
319
46
49
46
141
231
31
128
390
67
28
128
223
By collateral type
($m)
30 Jun 2009
31 Mar 2009
31 Dec 2008
NPA
NPA
NPA
NPA
2,741
2,018
1,554
1,182
Secured non-performing assets by collateral type
Properties
800
817
556
472
Shares and debentures
231
121
43
93
Fixed deposits
Others
13
266
18
259
16
223
22
209
4,051
3,233
2,392
1,978
Unsecured non-performing assets
Total
30 Jun 2008
18
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By period overdue
($m)
30 Jun 2009
31 Mar 2009
31 Dec 2008
30 Jun 2008
NPA
NPA
NPA
NPA
Not overdue
180 days overdue
Total
1,000
4,051
1,042
3,233
746
2,392
652
1,978
Non-performing loans rose 36% from the previous quarter
to $3.69 billion or 2.8% of the loan portfolio. A majority of
the increase was accounted for by a few corporate
exposures in Rest of the World.
Allowance coverage for non-performing assets after
considering collateral was 119% compared to 156% in the
previous quarter.
Including debt securities and contingent liabilities, nonperforming assets amounted to $4.05 billion, of which 38%
were still current in principal and interest and were
classified for prudent reasons.
FUNDING SOURCES
($m)
1/
Customer deposits
2/
Interbank liabilities
Other borrowings and liabilities 2/
Shareholders’ funds
Total
30 Jun 2009
31 Mar 2009
31 Dec 2008
30 Jun 2008
179,033
11,177
48,273
179,818
12,327
57,065
169,858
9,571
57,470
158,726
19,921
49,757
24,465
262,948
24,042
273,252
19,819
256,718
20,284
248,688
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
Total
Fixed deposits
Savings accounts
Current accounts
Others
30 Jun 2009
31 Mar 2009
31 Dec 2008
30 Jun 2008
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
98,356
19,692
65,803
12,198
663
25,147
15,579
6,537
2,702
329
30,615
19,926
2,607
7,309
773
25,700
20,693
1,441
2,295
1,271
179,818
75,890
76,388
24,504
3,036
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
88,973
24,149
53,496
10,712
616
21,032
14,137
4,410
1,831
654
26,717
17,891
1,657
4,248
2,921
22,004
17,708
1,294
1,858
1,144
158,726
73,885
60,857
18,649
5,335
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 were little changed from the previous
quarter at $179.0 billion as increases in Singapore- and
Hong Kong-dollar savings and current accounts were offset
by exchange translation effects. Hong Kong-dollar deposits
rose 6% in local currency terms during the quarter.
OTHER BORROWINGS & LIABILITIES
($m)
1/
Subordinated term debts
Other debt securities in issue
Due within 1 year
Due after 1 year
Comprising:
2/
Secured
Unsecured
Others
Total
30 Jun 2009
31 Mar 2009
31 Dec 2008
30 Jun 2008
9,047
9,539
9,085
8,470
248
497
310
502
263
375
1,458
831
426
319
38,481
48,273
419
393
46,714
57,065
333
305
47,747
57,470
473
1,816
38,998
49,757
Notes:
1/ All subordinated term debts issued are unsecured and due after 1 year
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 July 2008 to 30 June 2009. The Group’s
trading book VaR methodology is based on Historical Simulation VaR.
($m)
As at 30 June 2009
Total
Average
38
1 July 2008 to 30 June 2009
High
Low
36
60
22
The charts below provide the range of VaR and the daily distribution of trading income in the trading portfolio for the
period from 1 July 2008 to 30 June 2009.
D BSH Group Va R for Trading Book
25
No. of Day s
20
15
10
5
> 21-22
> 22-23
> 23-24
> 24-25
> 25-26
> 26-27
> 27-28
> 28-29
> 29-30
> 30-31
> 31-32
> 32-33
> 33-34
> 34-35
> 35-36
> 36-37
> 37-38
> 38-39
> 39-40
> 40-41
> 41-42
> 42-43
> 43-44
> 44-45
> 45-46
> 46-47
> 47-48
> 48-49
> 49-50
> 50-51
> 51-52
> 52-53
> 53-54
> 54-55
> 55-56
> 56-57
> 57-58
> 58-59
> 59-60
0
VaR ( S$ 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 Group Trading Income
(1 Jul 2008 to 30 Jun 2009)
25
15
10
5
0
>(76)-(74)
>(74)-(72)
>(72)-(70)
>(70)-(68)
>(68)-(66)
>(66)-(64)
>(64)-(62)
>(62)-(60)
>(60)-(58)
>(58)-(56)
>(56)-(54)
>(54)-(52)
>(52)-(50)
>(50)-(48)
>(48)-(46)
>(46)-(44)
>(44)-(42)
>(42)-(40)
>(40)-(38)
>(38)-(36)
>(36)-(34)
>(34)-(32)
>(32)-(30)
>(30)-(28)
>(28)-(26)
>(26)-(24)
>(24)-(22)
>(22)-(20)
>(20)-(18)
>(18)-(16)
>(16)-(14)
>(14)-(12)
>(12)-(10)
>(10)-(8)
>(8)-(6)
>(6)-(4)
>(4)-(2)
>(2)-0
>0-2
>2-4
>4-6
>6-8
>8-10
>10-12
>12-14
>14-16
>16-18
>18-20
>20-22
>22-24
>24-26
>26-28
>28-30
>30-32
>32-34
>34-36
>36-38
>38-40
>40-42
>42-44
>44-46
>46-48
>48-50
>50-52
>52-54
>54-56
>56-58
>58-60
>60-62
No. of days
20
Trading income (S$ million)
21
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CAPITAL ADEQUACY
($m)
Tier 1
Share capital
Disclosed reserves and others
Less: Tier 1 Deductions
Eligible Tier 1
Tier 2
Loan allowances admitted as Tier 2
Subordinated debts
Revaluation surplus from equity securities
Less: Tier 2 Deductions
Total eligible capital
Risk-weighted assets
Capital adequacy ratio (%)
Tier 1 ratio
Tier 2 ratio
Total (Tier 1 & 2) ratio
30 Jun 2009
31 Mar 2009
31 Dec 2008
30 Jun 2008
8,424
20,557
(6,068)
22,913
8,423
20,429
(6,034)
22,818
4,215
20,180
(6,022)
18,373
4,206
20,080
(5,987)
18,299
580
6,140
42
(136)
29,539
182,635
734
6,901
16
(112)
30,357
181,875
656
6,571
27
(106)
25,521
182,685
564
6,323
84
(102)
25,168
182,254
12.6
3.6
16.2
12.5
4.2
16.7
10.1
3.9
14.0
10.0
3.8
13.8
The Group’s capital adequacy ratio declined from 16.7% in the previous quarter to 16.2% due primarily to Tier 2
subordinated debts amortisation.
UNREALISED VALUATION SURPLUS/(LOSSES)
($m)
Properties
Financial investments
Total
30 Jun 2009
31 Mar 2009
31 Dec 2008
30 Jun 2008
542
(132)
410
513
(321)
192
532
(246)
286
704
(11)
693
The amount of unrealised valuation surplus increased from $192 million in the previous quarter to $410 million mainly due to
higher valuations for financial investments.
22
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Consolidated Income Statement
In $ millions
2nd Qtr 2nd Qtr
2009
2008
+/(-) 1st Qtr
%
2009
+/(-) 1st Half 1st Half
%
2009
2008
+/(-)
%
Income
Interest income
Interest expense
Net interest income
Net fee and commission income
Net trading income/(loss)
Net (loss)/income from financial instruments designated at fair value
Net income from financial investments
Other income
1,543
431
1,112
358
234
(62)
138
12
1,935
877
1,058
342
111
26
49
31
(20)
(51)
5
5
>100
NM
>100
(61)
1,655
579
1,076
317
204
(54)
106
13
(7)
(26)
3
13
15
(15)
30
(8)
3,198
1,010
2,188
675
438
(116)
244
25
4,082
1,967
2,115
695
(50)
111
260
49
(22)
(49)
3
(3)
NM
NM
(6)
(49)
Total income
1,792
1,617
11
1,662
8
3,454
3,180
9
330
42
259
466
370
37
280
90
(11)
14
(8)
>100
327
41
270
437
1
2
(4)
7
657
83
529
903
722
71
550
230
(9)
17
(4)
>100
1,097
777
41
1,075
2
2,172
1,573
38
Profit
Share of profits of associates
Profit before tax
695
13
708
840
21
861
(17)
(38)
(18)
587
20
607
18
(35)
17
1,282
33
1,315
1,607
44
1,651
(20)
(25)
(20)
Income tax expense
Net profit
104
604
159
702
(35)
(14)
115
492
(10)
23
219
1,096
310
1,341
(29)
(18)
552
52
604
652
50
702
(15)
4
(14)
433
59
492
27
(12)
23
985
111
1,096
1,255
86
1,341
(22)
29
(18)
+/(-) 1st Half 1st Half
%
2009
2008
+/(-)
%
Expenses
Employee benefits
Depreciation of properties and other fixed assets
Other expenses
Allowances for credit and other losses
Total expenses
Attributable to:
Shareholders
Minority interests
Unaudited Consolidated Statement of Comprehensive Income
In $ millions
Net profit
2nd Qtr 2nd Qtr
2009
2008
+/(-) 1st Qtr
%
2009
604
702
(14)
492
23
1,096
1,341
(18)
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
(82)
9
(40)
(28)
(>100)
NM
135
6
NM
50
53
15
(119)
(47)
NM
NM
752
(140)
(76)
463
(604)
(34)
54
(652)
NM
(>100)
NM
NM
(392)
(112)
46
(317)
NM
(25)
NM
NM
360
(252)
(30)
146
(701)
(227)
128
(966)
NM
(11)
NM
NM
Total comprehensive income
1,067
50
>100
175
>100
1,242
375
>100
1,070
(3)
1,067
22
28
50
>100
NM
>100
27
148
175
>100
NM
>100
1,097
145
1,242
375
375
>100
NM
>100
Attributable to:
Shareholders
Minority interests
23
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Balance Sheets
In $ millions
30 Jun
2009
GROUP
31 Mar
31 Dec
2009
2008 1/
30 Jun
2008
30 Jun
2009
COMPANY
31 Mar
31 Dec
2009
2008 1/
10,312
10,959
6,745
6,779
99
99
154
-
10,411
11,058
6,899
6,779
4
3
5
4
30 Jun
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
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
18,292
14,312
28,331
10,890
30,153
129,936
25,025
1,181
640
5,847
1,364
281
219
6,781
15,790
14,797
20,467
9,401
32,328
125,841
22,782
997
604
5,847
1,311
293
171
6,089
13,593
16,001
28,164
17,278
19,313
117,844
20,779
2,129
608
5,838
1,300
285
26
5,530
TOTAL ASSETS
262,948
273,252
256,718
248,688
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 pa
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 second quarter ended 30 June 2009.
For the second quarter of 2009, the Directors have declared an interim one-tier tax-exempt dividend of
14 cents (second quarter 2008: 8.5 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 (second quarter 2008: 17 cents) for each DBSH ordinary share. Historical comparisons have
been adjusted for the one-for-two rights issue.
The second quarter 2009 dividends will be payable on 4 September 2009. The DBSH shares will be
quoted ex-dividend on 20 August 2009. Notice is hereby given that the Share Transfer Books and
Register of Members of the Company will be closed on 25 August 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 24 August 2009 will be registered to
determine shareholders' entitlement to the second quarter 2009 dividend. In respect of ordinary shares
in the securities accounts with The Central Depository (Pte) Limited (“CDP”), the second 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
6 Aug 2009
Singapore
More information on the above announcement is available at www.dbs.com/investor
Performance Summary
Unaudited Financial Results
For the Second Quarter ended
30 June 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 2009, 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
Refer to page 28 for more information.
2nd Qtr
2009
2nd Qtr
2008
%
chg
1st Qtr
2009
%
chg
1st Half
2009
1st Half
2008
%
chg
1,112
358
322
1,792
631
1,161
466
708
1,058
342
199
1,599
687
912
56
877
5
5
62
12
(8)
27
>100
(19)
1,076
317
269
1,662
638
1,024
414
630
3
13
20
8
(1)
13
13
12
2,188
675
591
3,454
1,269
2,185
880
1,338
2,115
695
352
3,162
1,343
1,819
196
1,667
3
(3)
68
9
(6)
20
>100
(20)
552
668
(17)
456
21
1,008
1,271
(21)
552
(16)
652
NM
(15)
(23)
433
NM
27
(23)
985
(16)
1,255
(44)
(22)
127,970
35,204
262,948
118,615
30,535
248,688
8
15
6
130,557
30,261
273,252
(2)
16
(4)
127,970
35,204
262,948
118,615
30,535
248,688
8
15
6
179,033
234,274
24,465
158,726
224,300
20,284
13
4
21
179,818
244,923
24,042
(4)
2
179,033
234,274
24,465
158,726
224,300
20,284
13
4
21
Key financial ratios (%) (excluding one-time
5/
items)
Net interest margin
Non-interest/total income
Cost/income ratio
Return on assets
6/
Return on equity
Loan/deposit ratio
NPL ratio
Specific allowances (loans)/average loans (bp)
2.01
37.9
35.2
0.82
9.10
71.5
2.8
83
2.04
33.8
43.0
1.07
13.00
74.7
1.4
18
1.99
35.3
38.4
0.69
8.01
72.6
2.0
70
2.01
36.7
36.7
0.78
8.52
71.5
2.8
77
2.07
33.1
42.5
1.05
12.41
74.7
1.4
16
Tier 1 capital adequacy ratio
Total capital adequacy ratio
12.6
16.2
10.0
13.8
12.5
16.7
12.6
16.2
10.0
13.8
Selected income statement items ($m)
Net interest income
Net fee and commission income
Other non-interest income
Total income
Expenses
Profit before allowances
Allowances for credit and other losses
Profit before tax
Net profit
1/
One-time items
Net profit including one-time items
Selected balance sheet items ($m)
2/
Customer loans
3/
Interbank assets
Total assets
4/
Customer deposits
Total liabilities
Shareholders’ funds
2
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
2nd Qtr
2009
2nd Qtr
2008
1st Qtr
2009
1st Half
2009
1st Half
2008
0.96
1.49
0.85
0.91
1.42
0.96
10.45
1.48
10.46
0.84
10.27
0.90
10.45
1.41
10.46
0.93
1.43
0.83
0.88
1.36
0.93
10.27
1.43
10.29
0.82
10.10
0.87
10.27
1.36
10.29
Per share data ($) 7/
Per basic share
– earnings excluding one-time items and
goodwill charges
– earnings
6/
– net book value
Per diluted share
– earnings excluding one-time items and
goodwill charges
– earnings
– net book value 6/
Notes:
1/ One-time items include restructuring costs, impairment charges for Thai investment and gains on sale of office buildings in Hong Kong
2/ Includes customer loans classified as financial assets at fair value through profit or loss on the balance sheet
3/ Includes interbank assets classified as financial assets at fair value through profit or loss on the balance sheet
4/ Includes customer deposits classified as financial liabilities at fair value through profit or loss on the balance sheet
5/ Return on assets, return on equity, specific allowances (loan)/average loan and per share data for the quarters are computed on an annualised basis
6/ Minority interests are not included as equity in the computation of net book value and return on equity
7/ Adjusted for shares arising from the rights issue in January 2009
NM Not Meaningful
Second-quarter net profit rose 21% from the previous
quarter to $552 million as revenue growth boosted
earnings before allowances to a record $1.16 billion.
Allowances increased as asset quality declined.
Compared to a year ago, net profit fell 17% as the
improved operating performance was offset by higher
allowances.
Revenues increased 8% from the previous quarter and
12% from a year ago to a record $1.79 billion from broadbased revenue growth. Net interest income rose 3% from
the previous quarter and 5% from a year ago to $1.11
billion as average asset volumes and credit spreads were
higher. Capital markets showed signs of improvement and
boosted net fee income 13% from the previous quarter
and 5% from a year ago to $358 million. Trading income
was higher as spreads tightened and investment gains
were made opportunistically.
Ongoing management focus on productivity improvements
resulted in expenses being maintained around the
previous quarter’s levels and 8% lower from a year ago to
$631 million. The cost-income ratio fell to 35% from 38%
in the previous quarter and 43% a year ago, and was the
best in several years.
Allowances rose 13% from the previous quarter to $466
million, which included $183 million of general
allowances to reinforce the balance sheet against
economic uncertainties. Specific allowances reached 83
basis points of loans from 70 basis points in the previous
quarter and 18 basis points a year ago.
The non-performing loan rate rose from 2.0% in the
previous quarter to 2.8%. The majority of the increase
was due to exposures to shipping and Middle East
corporates and institutions. Allowance coverage taking
into account collateral remained sound at 119% of nonperforming assets, of which 38% were still current in
principal and interest.
The total capital adequacy ratio stood at 16.2% with tier-1
at 12.6%.
Return on assets was 0.82% while return on equity was
9.1%, both improving from the previous quarter but below
a year ago.
For the first half, net earnings fell 21% to $1.01 billion,
with a 20% improvement in profit before allowances
offset by higher allowances.
3
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET INTEREST INCOME
Average balance
sheet
2nd Qtr 2009
Average
Average
rate
balance Interest
(%)
($m)
($m)
2nd Qtr 2008
Average
Average
rate
balance Interest
(%)
($m)
($m)
1st Qtr 2009
Average
balance
($m)
Interest
($m)
Average
rate
(%)
Interest-bearing
assets
Customer loans
Interbank assets
Securities
Total
127,447
42,582
51,638
221,667
1,017
95
431
1,543
3.20
0.90
3.34
2.79
113,462
41,293
53,628
208,383
1,154
262
519
1,935
4.09
2.54
3.89
3.73
128,695
41,384
49,044
219,123
1,107
107
441
1,655
3.49
1.05
3.65
3.06
Interest-bearing
liabilities
Customer deposits
Other borrowings
Total
177,983
28,067
206,050
297
134
431
0.67
1.90
0.84
157,807
40,799
198,606
487
390
877
1.24
3.84
1.77
175,464
28,227
203,691
387
192
579
0.90
2.76
1.15
1,112
2.01
1,058
2.04
1,076
1.99
Net interest
1/
income/margin
Average balance
sheet
1st Half 2009
1st Half 2008
Average
Average Average
Average
balance Interest
rate balance Interest
rate
($m)
($m)
(%)
($m)
($m)
(%)
Interest-bearing
assets
Customer loans
Interbank assets
Securities
Total
127,791
41,604
50,347
219,742
2,125
202
871
3,198
3.36
0.98
3.50
2.94
112,002
39,955
53,689
205,646
2,462
520
1,100
4,082
4.42
2.61
4.12
3.99
Interest-bearing
liabilities
Customer deposits
Other borrowings
Total
176,283
28,022
204,305
685
325
1,010
0.79
2.34
1.00
155,947
40,364
196,311
1,160
807
1,967
1.50
4.02
2.01
2,188
2.01
2,115
2.07
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
$1.11 billion from higher average asset volumes and an
improvement in net interest margins to 2.01%.
Compared to a year ago, net interest income was 5%
higher as the impact of higher customer loans was
partially offset by a decline in margins due to lower
interbank rates.
The better margins were due to improved credit spreads
and reduced funding costs partially offset by lower yields on
interbank assets as interbank rates remained soft during
the quarter.
4
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
2nd Qtr 2009 versus 2nd Qtr 2008
Volume and rate analysis ($m)
Increase/(decrease) due to change in
2nd Qtr 2009 versus 1st Qtr 2009
Volume
Rate
Net
change
Volume
Rate
Net
change
Customer loans
Interbank assets
Securities
142
8
(19)
(280)
(174)
(69)
(138)
(166)
(88)
(11)
3
23
(89)
(16)
(39)
(100)
(13)
(16)
Total
131
(523)
(392)
15
(144)
(129)
62
(131)
(69)
(252)
(125)
(377)
(190)
(256)
(446)
5
1
6
(99)
(60)
(159)
(94)
(59)
(153)
200
(146)
54
9
15
24
Interest income
Interest expense
Customer deposits
Other borrowings
Total
Net impact on interest income
Due to change in number of days
Net Interest Income
-
12
54
36
1st Half 2009 versus 1st Half 2008
Volume and rate analysis ($m)
Increase/(decrease) due to change in
Volume
Rate
Net
change
347
21
(68)
300
(672)
(338)
(155)
(1,165)
(325)
(317)
(223)
(865)
151
(256)
(105)
(622)
(223)
(845)
(471)
(479)
(950)
405
(320)
85
Interest income
Customer loans
Interbank assets
Securities
Total
Interest expense
Customer deposits
Other borrowings
Total
Net impact on interest income
Due to change in number of days
Net Interest Income
(12)
73
5
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET FEE AND COMMISSION INCOME
($m)
Stockbroking
Investment banking
Trade and remittances
Loan related
Guarantees
Deposit related
Credit card
Fund management
Wealth management
Others
Total
2nd Qtr
2009
2nd Qtr
2008
% chg
1st Qtr
2009
% chg
1st Half
2009
1st Half
2008
% chg
50
27
59
108
14
22
37
6
21
14
358
39
25
56
82
14
22
38
9
45
12
342
28
8
5
32
(3)
(33)
(53)
17
5
28
17
74
96
15
20
33
5
16
13
317
79
59
(20)
13
(7)
10
12
20
31
8
13
78
44
133
204
29
42
70
11
37
27
675
89
54
108
172
25
41
69
23
85
29
695
(12)
(19)
23
19
16
2
1
(52)
(56)
(7)
(3)
Compared to a year ago, fee income rose 5% as higher
revenues from stockbroking and loan syndication were
partially offset by declines in wealth management sales.
Net fee and commission income rose 13% from the
previous quarter to $358 million as revenues from capital
market activities – stockbroking, investment banking and
wealth management – increased. Loan syndication fees
were also higher.
OTHER NON-INTEREST INCOME
($m)
2nd Qtr
2009
2nd Qtr
2008
%
chg
1st Qtr
2009
Net trading income/(loss)
234
111
>100
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)
246
(12)
88
23
>100
NM
(62)
26
138
12
322
Total
%
chg
1st Half
2009
1st Half
2008
%
chg
204
15
438
(50)
NM
259
(55)
(5)
78
505
(67)
(64)
14
NM
NM
NM
(54)
(116)
111
NM
49
13
>100
(8)
106
13
(15)
30
(8)
244
25
260
3
28
NM
(11)
199
62
269
20
591
352
68
(6)
Notes:
1/ Exclude one-time items
NM Not Meaningful
Other non-interest income rose from $269 million in the
previous quarter to $322 million as trading income and
investment gains rose.
Net gain on investment securities of $138 million was due
largely to the sale of equity holdings and was higher than
the previous quarter and a year ago.
Trading income of $172 million was higher than the previous
quarter from gains in foreign exchange and interest rate
activities and from better asset valuations.
6
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
EXPENSES
($m)
Staff 1/
Occupancy
Computerisation
Revenue-related
Others
Total
Staff headcount at period-end
Included in the above table were:
Depreciation of properties and other
fixed assets
Director’s fees
Audit fees payable
2nd Qtr
2009
2nd Qtr
2008
% chg
1st Qtr
2009
% chg
1st Half
2009
1st Half
2008
% chg
330
67
104
33
97
631
13,928
370
61
109
40
107
687
14,800
(11)
10
(5)
(18)
(9)
(8)
(6)
327
71
112
33
95
638
14,082
1
(6)
(7)
2
(1)
(1)
657
138
216
66
192
1,269
13,928
722
119
211
74
217
1,343
14,800
(9)
16
2
(11)
(12)
(6)
(6)
42
1
37
1
14
-
41
1
83
2
71
2
17
-
2
2
-
2
2
-
4
4
-
Note:
1/ Exclude one-time items
Expenses fell 1% from the previous quarter to $631 million
as ongoing efforts to improve productivity yielded savings
in non-staff expenses. Investments for growth in emerging
markets continued to be made.
Compared to a year ago, costs were 8% lower. Staff
costs fell 11% due to a 6% reduction in headcount from
an organisational streamlining in fourth quarter 2008.
Non-staff costs were also lower.
7
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
ALLOWANCES FOR CREDIT AND OTHER LOSSES
($m)
2nd Qtr
2009
2nd Qtr
2008
% chg
1st Qtr
2009
General allowances (GP)
183
(31)
NM
182
1
Specific allowances (SP) for loans
Singapore
Hong Kong
Other countries
272
177
66
29
52
9
37
6
>100
>100
78
>100
225
64
93
68
11
35
(69)
466
56
>100
Specific allowances (SP) for
securities, properties and other
1/
assets
Total
% chg 1st Half
2009
1st Half
2008
% chg
365
59
>100
21
>100
(29)
(57)
497
241
159
97
89
32
52
5
>100
>100
>100
>100
7
57
18
48
(63)
414
13
880
196
>100
Notes:
1/ Exclude one-time items
NM Not Meaningful
Specific allowances for loans rose to $272 million from
$225 million in the previous quarter. The amounts
shown in the table above are by booking centre.
The increase in specific loan allowances from $64
million in the previous quarter to $177 million for
Singapore was due to corporate loans booked in
Singapore but for use in other regions. In Hong Kong,
specific loan allowances fell from $93 million in the
previous quarter to $66 million as NPL pressures eased.
As with the previous quarter, general allowances were
taken to buffer the balance sheet against economic
uncertainties, compared to a write-back a year ago.
8
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY BUSINESS SEGMENTS
($m)
CBG
IBG
GFM
CTU
Central
Ops
Total
Selected income items
1/
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
1st Qtr 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
192
113
305
238
10
57
7
50
467
286
753
178
198
377
88
289
287
100
387
118
7
1
263
59
204
173
130
303
11
50
242
36
206
(43)
(43)
(86)
93
149
19
(309)
(75)
(293)
1,076
586
1,662
638
414
20
630
115
456
293
175
468
277
11
180
31
149
409
264
673
199
25
449
82
367
294
59
353
153
1
(2)
197
45
152
164
(54)
110
8
5
97
17
80
(102)
97
(5)
50
14
23
(46)
(16)
(80)
1,058
541
1,599
687
56
21
877
159
668
393
236
629
491
42
96
14
82
945
574
1,519
379
419
721
151
570
600
228
828
234
13
4
585
125
460
346
9
355
25
49
281
46
235
(96)
219
123
140
357
29
(345)
(117)
(339)
2,188
1,266
3,454
1,269
880
33
1,338
219
1,008
1/
2nd 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/
1st Half 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
619
335
954
531
17
406
69
337
804
542
1,346
391
116
839
158
681
619
40
659
286
24
349
94
255
294
(14)
280
21
18
241
37
204
(221)
144
(77)
114
21
44
(168)
(48)
(206)
2,115
1,047
3,162
1,343
196
44
1,667
310
1,271
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
257,101
5,847
262,948
234,274
21
42
-
37,407
100,493
91,310
32,350
5,845
101,680
4
11
63,392
5
4
49,734
3
3
2,898
-
27,219
37
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
34,214
90,687
85,560
27,980
4,409
88,978
21
8
54,637
1
2
52,895
3
3
1,582
-
26,208
139
24
1/
1st Half 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 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 Mar 2009
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 1st Qtr 2009
Depreciation for 1st Qtr 2009
Goodwill charge for 1st 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 Jun 2008
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 2nd Qtr 2008
Depreciation for 2nd Qtr 2008
Goodwill charge for 2nd 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
267,405
5,847
273,252
244,923
49
41
-
250,871
5,847
256,718
232,715
54
36
-
242,850
5,838
248,688
224,300
164
37
-
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, CBG’s net interest
income rose due to lower deposit costs as well as higher
loan and deposit volumes. Non-interest income was
higher from better credit card activities in Singapore and
wealth management sales in Hong Kong. Expenses were
increased as business volumes rose. Allowances rose as
general allowances were taken compared to a writeback
in the previous quarter. Specific allowances were also
higher.
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, net interest income
increased due to better credit spreads. Non-interest income was
stable as an increase in loan-related fees was offset by a
decline in other non-interest income. Expenses were higher due
to staff costs and investments to support growth opportunities.
Allowances rose due to higher specific allowances for corporate
loans.
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 net interest income
was higher. Non-interest income benefited from interest rate
and foreign exchange activities, better asset valuations in the
trading portfolio as well as higher stockmarket volumes.
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
2nd Qtr 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
673
471
1,144
360
372
4
416
44
320
222
120
342
151
71
120
21
99
74
29
103
63
13
3
30
5
25
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
1st Qtr 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
655
304
959
375
226
3
361
43
259
224
127
351
150
88
113
19
94
80
37
117
60
12
3
48
9
39
73
82
155
41
34
14
94
31
63
44
36
80
12
54
14
13
1
1,076
586
1,662
638
414
20
630
115
456
2nd Qtr 2008 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
709
275
984
412
11
2
563
99
414
214
138
352
175
40
137
19
118
66
17
83
39
2
9
51
6
45
38
75
113
44
(2)
10
81
19
62
31
36
67
17
5
45
16
29
1,058
541
1,599
687
56
21
877
159
668
1,328
775
2,103
735
598
7
777
87
579
446
247
693
301
159
233
40
193
154
66
220
123
25
6
78
14
64
163
113
276
82
44
20
170
49
121
97
65
162
28
54
80
29
51
2,188
1,266
3,454
1,269
880
33
1,338
219
1,008
1/
1st Half 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
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
1,430
522
1,952
813
108
5
1,036
189
761
439
315
754
348
59
347
49
298
107
53
160
73
14
11
84
14
70
79
115
194
78
5
28
139
33
106
60
42
102
31
10
61
25
36
2,115
1,047
3,162
1,343
196
44
1,667
310
1,271
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 Mar 2009
Total assets before goodwill
Goodwill on consolidation
Total assets
3/
Non-current assets
180,978
198
181,176
1,580
46,173
5,649
51,822
611
14,438
14,438
25
12,898
12,898
67
12,918
12,918
2
267,405
5,847
273,252
2,285
31 Dec 2008
Total assets before goodwill
Goodwill on consolidation
Total assets
Non-current assets 3/
170,132
198
170,330
1,575
44,119
5,649
49,768
570
16,563
16,563
23
9,889
9,889
38
10,168
10,168
2
250,871
5,847
256,718
2,208
30 Jun 2008
Total assets before goodwill
Goodwill on consolidation
Total assets
3/
Non-current assets
159,295
189
159,484
1,490
45,284
5,649
50,933
535
16,115
16,115
136
10,059
10,059
29
12,097
12,097
3
242,850
5,838
248,688
2,193
1/
1st Half 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 items
30 Jun 2009
Total assets before goodwill
Goodwill on consolidation
Total assets
Non-current assets 3/
2/
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 rose to $320 million from $259 million in the
previous quarter but was below the $414 million a year
ago. The improvement over the previous quarter was due
to higher non-interest income partially offset by an
increase in allowances. Compared to a year ago, a better
operating performance was more than offset by higher
allowances.
Net interest income rose 3% from the previous quarter
from better credit spreads and average asset volumes,
partially offset by reduced yields on interbank assets and
securities.
Non-interest income was better than the previous quarter
due to capital market and loan syndication fee activities
as well as higher trading contributions.
Expenses were 4% lower than the previous quarter from
ongoing efforts to improve productivity. Allowances rose
due to specific allowances for corporate loans booked in
Singapore but for use in other regions.
Hong Kong
The second quarter’s results incorporate an appreciation of
the Singapore dollar against the Hong Kong dollar of 4%
from the previous quarter and a depreciation of 8% from a
year ago.
Net profit rose to $99 million from $94 million in the
previous quarter but was below the $118 million a year ago.
Net interest income was little changed from the previous
quarter as currency effects offset the benefit of higher
interest margins, which rose three basis points to 1.94%.
Prime-Hibor spreads widened and loan pricing improved,
but the benefit was partially dampened by low returns on
Hibor-based assets.
Non-interest income was lower than the previous quarter as
higher fee contributions from capital market activities and
trade finance were offset by lower trading gains.
Expenses were stable from the previous quarter as
currency effects offset the impact of higher non-staff costs.
Allowances fell 19% as specific allowances for SME and
private banking customers continued to fall.
14
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CUSTOMER LOANS
1/
($m)
30 Jun 2009
31 Mar 2009
31 Dec 2008
30 Jun 2008
Gross
Less:
Specific allowances
130,406
132,784
128,365
120,314
1,090
1,051
868
702
General allowances
Net total
1,346
127,970
1,176
130,557
1,016
126,481
997
118,615
By business unit
Consumer Banking
Institutional Banking
Others
Total (Gross)
35,458
88,418
6,530
130,406
35,237
91,184
6,363
132,784
34,758
87,415
6,192
128,365
33,166
80,153
6,995
120,314
By geography
Singapore
Hong Kong
Rest of Greater China
South and South-east Asia
Rest of the world
Total (Gross)
73,610
31,951
9,154
8,437
7,254
130,406
74,981
32,814
9,439
7,920
7,630
132,784
74,377
32,085
9,683
5,557
6,663
128,365
68,056
30,679
9,542
5,062
6,975
120,314
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)
15,589
18,220
29,821
12,117
13,043
17,107
10,660
13,849
130,406
16,946
18,786
29,882
12,426
13,073
16,988
10,346
14,337
132,784
15,958
17,931
29,375
13,075
12,457
14,490
10,478
14,601
128,365
15,417
15,906
28,039
12,303
11,854
12,499
10,697
13,599
120,314
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
56,469
17,628
38,841
30,272
680
29,592
29,194
1,686
27,508
16,849
2,436
14,413
132,784
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
46,778
13,802
32,976
27,340
644
26,696
27,871
1,475
26,396
18,325
3,109
15,216
120,314
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
Customer loans fell 2% from the previous quarter due to
currency translation effects. Underlying loan volumes were
stable. Singapore-dollar loans were little changed after
growing for several quarters.
Loans in Hong Kong rose 2% in local currency terms from
the previous quarter as consumer loans increased.
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
(%)
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
326
81
351
0.9
133
289
2,028
830
904
2.2
86
144
367
204
(79)
5.8
34
48
2,721
1,115
1,176
2.0
84
142
293
251
338
-
201
216
219
54
213
-
122
202
3,233
1,420
1,727
-
97
156
30 Jun 2009
Consumer Banking
Institutional Banking
Others
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
31 Mar 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)
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
30 Jun 2008
Consumer Banking
Institutional Banking
Others
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
327
129
331
1.0
141
253
1,187
553
789
1.5
113
189
168
71
(64)
2.2
4
10
1,682
753
1,056
1.4
108
189
198
191
158
-
176
181
98
7
134
-
144
463
1,978
951
1,348
-
116
195
Note:
1/ Allowances for credit and other losses exclude one-time items
16
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By geography
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 Mar 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 Jun 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
(%)
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
747
860
494
316
381
249
359
324
115
1.2
2.6
4.7
90
82
74
160
152
122
184
72
183
1.7
139
181
436
97
195
2.7
67
101
2,721
1,115
1,176
2.0
84
142
293
251
338
-
201
216
219
54
213
-
122
202
3,233
1,420
1,727
-
97
156
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
558
437
483
219
200
273
398
301
119
1.0
1.5
4.4
110
115
81
221
217
124
90
42
131
1.0
193
221
114
19
107
0.8
111
229
1,682
753
1,056
1.4
108
189
198
191
158
-
176
181
98
7
134
-
144
463
1,978
951
1,348
-
116
195
17
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By industry
($m)
30 Jun 2009
31 Mar 2009
31 Dec 2008
30 Jun 2008
NPA
SP
NPA
SP
NPA
SP
NPA
SP
Manufacturing
Building and construction
Housing loans
782
203
242
361
46
42
824
258
214
381
44
42
720
96
193
351
30
43
453
105
202
216
41
61
General commerce
Transportation, storage &
communications
509
221
185
10
472
29
226
7
381
24
187
6
369
23
187
8
1,209
236
433
141
145
66
160
25
310
146
299
151
223
129
192
102
216
3,692
125
1,151
192
2,721
123
1,115
176
1,958
108
920
178
1,682
113
753
192
167
134
79
293
219
251
54
277
157
236
52
198
98
191
7
Total non-performing assets
4,051
1,364
3,233
1,420
2,392
1,208
1,978
951
By loan classification
($m)
30 Jun 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
31 Mar 2009
31 Dec 2008
30 Jun 2008
NPA
SP
NPA
SP
NPA
SP
NPA
SP
2,816
791
444
4,051
268
652
444
1,364
1,931
950
352
3,233
219
849
352
1,420
1,328
800
264
2,392
213
730
265
1,208
1,159
491
328
1,978
171
451
329
951
467
169
57
693
69
105
56
230
282
61
44
387
61
51
44
156
213
57
49
319
46
49
46
141
231
31
128
390
67
28
128
223
By collateral type
($m)
30 Jun 2009
31 Mar 2009
31 Dec 2008
NPA
NPA
NPA
NPA
2,741
2,018
1,554
1,182
Secured non-performing assets by collateral type
Properties
800
817
556
472
Shares and debentures
231
121
43
93
Fixed deposits
Others
13
266
18
259
16
223
22
209
4,051
3,233
2,392
1,978
Unsecured non-performing assets
Total
30 Jun 2008
18
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By period overdue
($m)
30 Jun 2009
31 Mar 2009
31 Dec 2008
30 Jun 2008
NPA
NPA
NPA
NPA
Not overdue
180 days overdue
Total
1,000
4,051
1,042
3,233
746
2,392
652
1,978
Non-performing loans rose 36% from the previous quarter
to $3.69 billion or 2.8% of the loan portfolio. A majority of
the increase was accounted for by a few corporate
exposures in Rest of the World.
Allowance coverage for non-performing assets after
considering collateral was 119% compared to 156% in the
previous quarter.
Including debt securities and contingent liabilities, nonperforming assets amounted to $4.05 billion, of which 38%
were still current in principal and interest and were
classified for prudent reasons.
FUNDING SOURCES
($m)
1/
Customer deposits
2/
Interbank liabilities
Other borrowings and liabilities 2/
Shareholders’ funds
Total
30 Jun 2009
31 Mar 2009
31 Dec 2008
30 Jun 2008
179,033
11,177
48,273
179,818
12,327
57,065
169,858
9,571
57,470
158,726
19,921
49,757
24,465
262,948
24,042
273,252
19,819
256,718
20,284
248,688
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
Total
Fixed deposits
Savings accounts
Current accounts
Others
30 Jun 2009
31 Mar 2009
31 Dec 2008
30 Jun 2008
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
98,356
19,692
65,803
12,198
663
25,147
15,579
6,537
2,702
329
30,615
19,926
2,607
7,309
773
25,700
20,693
1,441
2,295
1,271
179,818
75,890
76,388
24,504
3,036
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
88,973
24,149
53,496
10,712
616
21,032
14,137
4,410
1,831
654
26,717
17,891
1,657
4,248
2,921
22,004
17,708
1,294
1,858
1,144
158,726
73,885
60,857
18,649
5,335
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 were little changed from the previous
quarter at $179.0 billion as increases in Singapore- and
Hong Kong-dollar savings and current accounts were offset
by exchange translation effects. Hong Kong-dollar deposits
rose 6% in local currency terms during the quarter.
OTHER BORROWINGS & LIABILITIES
($m)
1/
Subordinated term debts
Other debt securities in issue
Due within 1 year
Due after 1 year
Comprising:
2/
Secured
Unsecured
Others
Total
30 Jun 2009
31 Mar 2009
31 Dec 2008
30 Jun 2008
9,047
9,539
9,085
8,470
248
497
310
502
263
375
1,458
831
426
319
38,481
48,273
419
393
46,714
57,065
333
305
47,747
57,470
473
1,816
38,998
49,757
Notes:
1/ All subordinated term debts issued are unsecured and due after 1 year
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 July 2008 to 30 June 2009. The Group’s
trading book VaR methodology is based on Historical Simulation VaR.
($m)
As at 30 June 2009
Total
Average
38
1 July 2008 to 30 June 2009
High
Low
36
60
22
The charts below provide the range of VaR and the daily distribution of trading income in the trading portfolio for the
period from 1 July 2008 to 30 June 2009.
D BSH Group Va R for Trading Book
25
No. of Day s
20
15
10
5
> 21-22
> 22-23
> 23-24
> 24-25
> 25-26
> 26-27
> 27-28
> 28-29
> 29-30
> 30-31
> 31-32
> 32-33
> 33-34
> 34-35
> 35-36
> 36-37
> 37-38
> 38-39
> 39-40
> 40-41
> 41-42
> 42-43
> 43-44
> 44-45
> 45-46
> 46-47
> 47-48
> 48-49
> 49-50
> 50-51
> 51-52
> 52-53
> 53-54
> 54-55
> 55-56
> 56-57
> 57-58
> 58-59
> 59-60
0
VaR ( S$ 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 Group Trading Income
(1 Jul 2008 to 30 Jun 2009)
25
15
10
5
0
>(76)-(74)
>(74)-(72)
>(72)-(70)
>(70)-(68)
>(68)-(66)
>(66)-(64)
>(64)-(62)
>(62)-(60)
>(60)-(58)
>(58)-(56)
>(56)-(54)
>(54)-(52)
>(52)-(50)
>(50)-(48)
>(48)-(46)
>(46)-(44)
>(44)-(42)
>(42)-(40)
>(40)-(38)
>(38)-(36)
>(36)-(34)
>(34)-(32)
>(32)-(30)
>(30)-(28)
>(28)-(26)
>(26)-(24)
>(24)-(22)
>(22)-(20)
>(20)-(18)
>(18)-(16)
>(16)-(14)
>(14)-(12)
>(12)-(10)
>(10)-(8)
>(8)-(6)
>(6)-(4)
>(4)-(2)
>(2)-0
>0-2
>2-4
>4-6
>6-8
>8-10
>10-12
>12-14
>14-16
>16-18
>18-20
>20-22
>22-24
>24-26
>26-28
>28-30
>30-32
>32-34
>34-36
>36-38
>38-40
>40-42
>42-44
>44-46
>46-48
>48-50
>50-52
>52-54
>54-56
>56-58
>58-60
>60-62
No. of days
20
Trading income (S$ million)
21
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CAPITAL ADEQUACY
($m)
Tier 1
Share capital
Disclosed reserves and others
Less: Tier 1 Deductions
Eligible Tier 1
Tier 2
Loan allowances admitted as Tier 2
Subordinated debts
Revaluation surplus from equity securities
Less: Tier 2 Deductions
Total eligible capital
Risk-weighted assets
Capital adequacy ratio (%)
Tier 1 ratio
Tier 2 ratio
Total (Tier 1 & 2) ratio
30 Jun 2009
31 Mar 2009
31 Dec 2008
30 Jun 2008
8,424
20,557
(6,068)
22,913
8,423
20,429
(6,034)
22,818
4,215
20,180
(6,022)
18,373
4,206
20,080
(5,987)
18,299
580
6,140
42
(136)
29,539
182,635
734
6,901
16
(112)
30,357
181,875
656
6,571
27
(106)
25,521
182,685
564
6,323
84
(102)
25,168
182,254
12.6
3.6
16.2
12.5
4.2
16.7
10.1
3.9
14.0
10.0
3.8
13.8
The Group’s capital adequacy ratio declined from 16.7% in the previous quarter to 16.2% due primarily to Tier 2
subordinated debts amortisation.
UNREALISED VALUATION SURPLUS/(LOSSES)
($m)
Properties
Financial investments
Total
30 Jun 2009
31 Mar 2009
31 Dec 2008
30 Jun 2008
542
(132)
410
513
(321)
192
532
(246)
286
704
(11)
693
The amount of unrealised valuation surplus increased from $192 million in the previous quarter to $410 million mainly due to
higher valuations for financial investments.
22
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Consolidated Income Statement
In $ millions
2nd Qtr 2nd Qtr
2009
2008
+/(-) 1st Qtr
%
2009
+/(-) 1st Half 1st Half
%
2009
2008
+/(-)
%
Income
Interest income
Interest expense
Net interest income
Net fee and commission income
Net trading income/(loss)
Net (loss)/income from financial instruments designated at fair value
Net income from financial investments
Other income
1,543
431
1,112
358
234
(62)
138
12
1,935
877
1,058
342
111
26
49
31
(20)
(51)
5
5
>100
NM
>100
(61)
1,655
579
1,076
317
204
(54)
106
13
(7)
(26)
3
13
15
(15)
30
(8)
3,198
1,010
2,188
675
438
(116)
244
25
4,082
1,967
2,115
695
(50)
111
260
49
(22)
(49)
3
(3)
NM
NM
(6)
(49)
Total income
1,792
1,617
11
1,662
8
3,454
3,180
9
330
42
259
466
370
37
280
90
(11)
14
(8)
>100
327
41
270
437
1
2
(4)
7
657
83
529
903
722
71
550
230
(9)
17
(4)
>100
1,097
777
41
1,075
2
2,172
1,573
38
Profit
Share of profits of associates
Profit before tax
695
13
708
840
21
861
(17)
(38)
(18)
587
20
607
18
(35)
17
1,282
33
1,315
1,607
44
1,651
(20)
(25)
(20)
Income tax expense
Net profit
104
604
159
702
(35)
(14)
115
492
(10)
23
219
1,096
310
1,341
(29)
(18)
552
52
604
652
50
702
(15)
4
(14)
433
59
492
27
(12)
23
985
111
1,096
1,255
86
1,341
(22)
29
(18)
+/(-) 1st Half 1st Half
%
2009
2008
+/(-)
%
Expenses
Employee benefits
Depreciation of properties and other fixed assets
Other expenses
Allowances for credit and other losses
Total expenses
Attributable to:
Shareholders
Minority interests
Unaudited Consolidated Statement of Comprehensive Income
In $ millions
Net profit
2nd Qtr 2nd Qtr
2009
2008
+/(-) 1st Qtr
%
2009
604
702
(14)
492
23
1,096
1,341
(18)
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
(82)
9
(40)
(28)
(>100)
NM
135
6
NM
50
53
15
(119)
(47)
NM
NM
752
(140)
(76)
463
(604)
(34)
54
(652)
NM
(>100)
NM
NM
(392)
(112)
46
(317)
NM
(25)
NM
NM
360
(252)
(30)
146
(701)
(227)
128
(966)
NM
(11)
NM
NM
Total comprehensive income
1,067
50
>100
175
>100
1,242
375
>100
1,070
(3)
1,067
22
28
50
>100
NM
>100
27
148
175
>100
NM
>100
1,097
145
1,242
375
375
>100
NM
>100
Attributable to:
Shareholders
Minority interests
23
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Balance Sheets
In $ millions
30 Jun
2009
GROUP
31 Mar
31 Dec
2009
2008 1/
30 Jun
2008
30 Jun
2009
COMPANY
31 Mar
31 Dec
2009
2008 1/
10,312
10,959
6,745
6,779
99
99
154
-
10,411
11,058
6,899
6,779
4
3
5
4
30 Jun
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
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
18,292
14,312
28,331
10,890
30,153
129,936
25,025
1,181
640
5,847
1,364
281
219
6,781
15,790
14,797
20,467
9,401
32,328
125,841
22,782
997
604
5,847
1,311
293
171
6,089
13,593
16,001
28,164
17,278
19,313
117,844
20,779
2,129
608
5,838
1,300
285
26
5,530
TOTAL ASSETS
262,948
273,252
256,718
248,688
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 pa