1Q06 presentation slides
Sustained customer franchise growth
DBS Group Holdings 1Q 2006 financial results
April 28, 2006
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or
distributed to parties outside the presentation. DBS Bank accepts no liability whatsoever with respect to the use of this document or its contents.
First quarter net profit up 39%
(S$m)
Net profit
Return on equity
Return on assets
1Q 2006
1Q 2005
518
373
12.2%
9.0%
3.2% pts
0.83%
0.31% pts
1.14%
% change
39%
2
Strong operating trends; net interest income, net interest
margin at record high
Net interest income: $850 million, a record high,
24% from previous year
Net interest margin: 2.23%, highest since we started quarterly reporting in
September 2001
(S$m)
Net interest margin (%)
Net interest income
1.88%
665
1Q 2004
1.88%
684
2Q 2004
1.92%
2.23%
1.83%
1.82%
1.84%
1.92%
2.06%
850
677
665
685
712
3Q 2004
4Q 2004
1Q 2005
2Q 2005
746
3Q 2005
800
4Q 2005
1Q 2006
3
Strong operating trends; continued fee income growth
Fee income:
14% from previous year
Fee income reached
a record high, rose
for seven
consecutive years
to achieve
20% CAGR
(1998 – 2005)
(S$m)
Fee income
933
755
423
508
986
825
626
262
274
0
1998
1999
2000
2001
2002
2003
2004
2005 1Q 06
4
Higher contribution from customer franchise
Operating
profit
Customer franchise
Ö
Ö
Ö
$623 million
68%
Consumer
$304 million
64%
SME
$150 million
50%
Corporate and
Investment Banking
$169 million
99%
Operating profit is operating income excluding one-time gains less operating expenses and provisions
5
Asset quality, credit ratings remain strong
One of the best asset quality among Asian banks
Ö NPL rate of 2.1%
Ö Provision coverage of 100%
Strong capital ratios
Ö Tier 1:
10.2%
Ö Overall: 14.1%
One of the highest credit ratings among Asian banks
Ö DBS Bank: Moody’s Aa2, S&P’s AA- , Fitch’s AA-
Ö DBS Hong Kong (Limited): Moody’s A2, S&P’s AA-, Fitch’s AA-
6
Delivering progressively rising dividends
First-quarter dividend of 17 cents per share, from 11 cents
per share a year-ago, same as previous quarter
Dividend policy reflects our policy of rewarding shareholders
with sustainable, progressively rising dividends
7
Sustained customer franchise growth
DBS Group Holdings 1Q 2006 financial results
April 28, 2006
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or
distributed to parties outside the presentation. DBS Bank accepts no liability whatsoever with respect to the use of this document or its contents.
Strong growth in interest and non-interest income
boost operating profit by 28% on year
(S$m)
1Q
2006
YoY
%
QoQ
%
850
24
6
Fee income
262
14
9
Trading income
108
32
na
50
19
(45)
420
19
34
1,270
22
14
Staff costs
300
13
8
Other expenses
264
19
(3)
Operating expenses
564
16
2
Operating profit
706
28
25
31
(51)
(44)
518
39
35
Net interest income
Other income
Non-interest income
Operating income
Provisions
Net profit
Excluding one-time gains and goodwill charges
9
Key ratios improve
(%)
1Q
2006
4Q
2005
1Q
2005
Net interest margin
2.23
2.06
1.82
Fee income/total income
21
22
22
Non-interest income/total income
33
28
34
Cost/income
44
49
47
12.2
8.8
9.0
Loans/deposits
66
68
61
NPL ratio
2.1
2.1
2.4
ROE
Excluding one-time gains and goodwill charges
10
Interest income at quarterly record as margins rise
(S$m)
Net interest margin (%)
2,943
2,507
2,691
2.23
2.06
1.88
2003
1.87
2004
1.91
2005
1.92
1.82
1.84
746
800
850
685
712
1Q
2Q
3Q
4Q
1Q
2006
2005
11
Operating profit higher on year and on quarter
1Q
2006
YoY
%
Consumer Banking
307
51
26
Enterprise Banking
170
39
28
Corporate and Investment Banking
152
28
(18)
Global Financial Markets
118
42
>100
70
100
84
(111)
nm
nm
706
28
25
(S$m)
Central Treasury Unit
Central Operations
Total
QoQ
%
Operating profit is operating income excluding one-time gains less operating expenses
12
Loans expand 11% on year
(S$m)
DTDB loans
78,712 78,776 79,462 78,818
11%
0%
(1%)
1%
71,055
69,659 2%
67,216 4%
65,0483%
4%
2%
2,915
2,915
61,415 62,424
Dec
2003
Mar
Jun
Sep
2004
Dec
Mar
Jun
Sep
2005
Dec
Mar
2006
13
Fee income up 14% on year
Fee income
Dividends and rentals
Other income
Non-interest income /
total income (%) a
(S$m)
1,767
1,788
37
41
40
1,395
34
29
825
933
32
33
28
986
87
104
855
2003
751
2004
353
127
282
229
12
112
2005
1Q
421
274
36
111
2Q
420
307
314
242
241
27
38
52
21
3Q
2005
4Q
262
8
150
1Q
2006
Excluding one-time gains
14
Wealth management revenues increase
(S$m)
Structured deposits
9,006
9,242
Bancassurance
Unit trusts
7,428
7,227
5,908
4,334
429
200
247
2,905
2,847
2,066
1,157
41
868
2004
2005
1Q
1,578
2003
Sales (all products)
S’pore
4,162
3,874
3,560
HK
4,844
5,368
3,868
Fees (unit trusts and bancassurance only)
S’pore + HK
90
119
129
1,863
2,042
1,245
44
575
1,249
41
752
1,457
683
121
653
2Q
3Q
4Q
1,917
603
52
1,262
1Q
2006
2005
963
1,103
794
1,069
1,128
914
675
782
1,031
886
32
35
30
32
36
15
Cost-income ratio falls to 44%
(S$m)
Cost/Income (%)
1,956
2,026
1,801
42
2003
47
44
2004
2005
47
48
49
43
486
484
505
551
564
1Q
2Q
3Q
4Q
1Q
2005
Headcount
Staff costs (S$m)
44
2006
12,144
11,454
12,728
11,649
12,090
12,562
12,728
12,673
876
993
1,052
265
253
255
279
300
Cost-income ratio excludes one-time gains
16
Hong Kong’s operating profit up 36% on year
(S$m)
1Q
2006
YoY
%
Net interest income
278
36
1
Non-interest income
90
(8)
38
Operating income
368
21
8
Operating expenses
162
7
(9)
Operating profit
206
36
28
19
>100
(24)
156
29
33
Provisions
Net profit after tax
QoQ
%
Figures for Hong Kong geographical basis and converted to S$ using monthly closing rates.
Based on Singapore GAAP
17
Key Hong Kong ratios improve
(%)
1Q
2006
4Q
2005
1Q
2005
Net interest margin
2.64
2.42
1.98
Non-interest income/total income
24
20
32
Cost/income
44
53
50
1.34
0.94
1.07
77
78
75
ROA
Loans/deposits
18
Continued organic regional growth through branch
network
India
Assets S$1,263 m
114%
Branches 2 (Mumbai,
New Delhi)
Seoul
Beijing
Shanghai
Hong Kong
Yangon
Bangkok
Mumbai
Manila
Labuan
Kuala Lumpur
Indonesia
Assets S$2,120 m
108%
Branches 5 (Jakarta, Medan,
Bandung, Semarang, Surabaya)
Taipei
Tokyo
China
Assets S$5,806 m
13%
Branches 5 (Beijing, Guangzhou,
Shanghai, Shenzhen, Suzhou )
Rep offices 4 (Dongguan,
Fuzhou, Tianjin, Hangzhou)
Singapore
Jakarta
Assets as at March 31, 2006. Growth rates are year-on-year
19
NPL rate stable at 2.1%
(S$m)
Substandard
Doubtful
Loss
5.2
NPL rate (%)
2.5
3,780
2.1
2.4
2.2
2.0
2.1
2.1
1,928
1,896
1,807
1,865
1,750
72%
71%
68%
65%
63%
9%
19%
11%
18%
14%
18%
15%
20%
14%
22%
Mar
Jun
Sep
Dec
Mar
73%
1,919
1,865
71%
65%
5%
22%
9%
20%
15%
20%
2003
2004
2005
19%
2005
2006
20
New NPAs decline, recoveries rise
(S$m)
NPAs at start of period
New NPAs
Net recoveries of existing NPAs
Write-offs
NPAs at end of period
1Q
2006
1Q
2005
4Q
2005
1,865
1,919
1,807
170
185
250
(210)
(135)
(150)
(75)
(41)
(42)
1,750
1,928
1,865
21
Specific provision charges for loans decline
(S$m)
1Q
2006
1Q
2005
4Q
2005
New NPLs
39
53
86
Existing NPLs
33
33
33
72
86
119
3
2
1
Settlements
22
34
41
Recoveries
7
6
6
32
42
48
40
44
71
Add charges for
Subtract charges for
Upgrading
Total SP charges
tangerinesin\Analyst presentation\1H2001 Results\06 Analyst Presentation.ppt
22
Provision coverage rises to 100%
(S$m)
GP
SP
2,392
1,066
1,800
1,741
1,784
1,757
1,800
1,749
1,017
1,031
1,039
1,068
1,032
1,031
1,045
689
769
702
716
726
769
704
2004
2005
Mar
Jun
Sep
Dec
Mar
1,706
1,326
2003
SP+GP / Unsec NPAs
SP+GP / NPAs
2006
2005
Coverage ratios (%)
124
187
198
202
201
207
198
218
63
89
97
90
94
97
97
100
23
CAR lower as RWA expands
(%)
Tier-2
Tier-1
15.1
4.6
15.8
4.5
14.8
15.3
4.2
14.7
14.7
14.8
4.4
4.1
4.3
4.2
3.9
10.5
11.3
10.6
10.9
10.6
10.4
10.6
10.2
2003
2004
2005
Mar
Jun
Sep
Dec
Mar
2005
(S$bn)
Tier-1 capital
RWA
14.1
2006
9.6
11.8
13.1
11.8
12.2
12.6
13.1
13.5
92.1
104.0
123.8
108.8
114.8
121.2
123.8
131.8
24
Dividend up 55% on year to 17 cents per share
(S¢)
Final
Interim
Quarterly
58
40
30
30
22
16
16
14
14
18
2002
2003
2004
17
15
15
17
11
2005
2006
25
Sustained customer franchise growth
DBS Group Holdings 1Q 2006 financial results
April 28, 2006
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or
distributed to parties outside the presentation. DBS Bank accepts no liability whatsoever with respect to the use of this document or its contents.
DBS Group Holdings 1Q 2006 financial results
April 28, 2006
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or
distributed to parties outside the presentation. DBS Bank accepts no liability whatsoever with respect to the use of this document or its contents.
First quarter net profit up 39%
(S$m)
Net profit
Return on equity
Return on assets
1Q 2006
1Q 2005
518
373
12.2%
9.0%
3.2% pts
0.83%
0.31% pts
1.14%
% change
39%
2
Strong operating trends; net interest income, net interest
margin at record high
Net interest income: $850 million, a record high,
24% from previous year
Net interest margin: 2.23%, highest since we started quarterly reporting in
September 2001
(S$m)
Net interest margin (%)
Net interest income
1.88%
665
1Q 2004
1.88%
684
2Q 2004
1.92%
2.23%
1.83%
1.82%
1.84%
1.92%
2.06%
850
677
665
685
712
3Q 2004
4Q 2004
1Q 2005
2Q 2005
746
3Q 2005
800
4Q 2005
1Q 2006
3
Strong operating trends; continued fee income growth
Fee income:
14% from previous year
Fee income reached
a record high, rose
for seven
consecutive years
to achieve
20% CAGR
(1998 – 2005)
(S$m)
Fee income
933
755
423
508
986
825
626
262
274
0
1998
1999
2000
2001
2002
2003
2004
2005 1Q 06
4
Higher contribution from customer franchise
Operating
profit
Customer franchise
Ö
Ö
Ö
$623 million
68%
Consumer
$304 million
64%
SME
$150 million
50%
Corporate and
Investment Banking
$169 million
99%
Operating profit is operating income excluding one-time gains less operating expenses and provisions
5
Asset quality, credit ratings remain strong
One of the best asset quality among Asian banks
Ö NPL rate of 2.1%
Ö Provision coverage of 100%
Strong capital ratios
Ö Tier 1:
10.2%
Ö Overall: 14.1%
One of the highest credit ratings among Asian banks
Ö DBS Bank: Moody’s Aa2, S&P’s AA- , Fitch’s AA-
Ö DBS Hong Kong (Limited): Moody’s A2, S&P’s AA-, Fitch’s AA-
6
Delivering progressively rising dividends
First-quarter dividend of 17 cents per share, from 11 cents
per share a year-ago, same as previous quarter
Dividend policy reflects our policy of rewarding shareholders
with sustainable, progressively rising dividends
7
Sustained customer franchise growth
DBS Group Holdings 1Q 2006 financial results
April 28, 2006
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or
distributed to parties outside the presentation. DBS Bank accepts no liability whatsoever with respect to the use of this document or its contents.
Strong growth in interest and non-interest income
boost operating profit by 28% on year
(S$m)
1Q
2006
YoY
%
QoQ
%
850
24
6
Fee income
262
14
9
Trading income
108
32
na
50
19
(45)
420
19
34
1,270
22
14
Staff costs
300
13
8
Other expenses
264
19
(3)
Operating expenses
564
16
2
Operating profit
706
28
25
31
(51)
(44)
518
39
35
Net interest income
Other income
Non-interest income
Operating income
Provisions
Net profit
Excluding one-time gains and goodwill charges
9
Key ratios improve
(%)
1Q
2006
4Q
2005
1Q
2005
Net interest margin
2.23
2.06
1.82
Fee income/total income
21
22
22
Non-interest income/total income
33
28
34
Cost/income
44
49
47
12.2
8.8
9.0
Loans/deposits
66
68
61
NPL ratio
2.1
2.1
2.4
ROE
Excluding one-time gains and goodwill charges
10
Interest income at quarterly record as margins rise
(S$m)
Net interest margin (%)
2,943
2,507
2,691
2.23
2.06
1.88
2003
1.87
2004
1.91
2005
1.92
1.82
1.84
746
800
850
685
712
1Q
2Q
3Q
4Q
1Q
2006
2005
11
Operating profit higher on year and on quarter
1Q
2006
YoY
%
Consumer Banking
307
51
26
Enterprise Banking
170
39
28
Corporate and Investment Banking
152
28
(18)
Global Financial Markets
118
42
>100
70
100
84
(111)
nm
nm
706
28
25
(S$m)
Central Treasury Unit
Central Operations
Total
QoQ
%
Operating profit is operating income excluding one-time gains less operating expenses
12
Loans expand 11% on year
(S$m)
DTDB loans
78,712 78,776 79,462 78,818
11%
0%
(1%)
1%
71,055
69,659 2%
67,216 4%
65,0483%
4%
2%
2,915
2,915
61,415 62,424
Dec
2003
Mar
Jun
Sep
2004
Dec
Mar
Jun
Sep
2005
Dec
Mar
2006
13
Fee income up 14% on year
Fee income
Dividends and rentals
Other income
Non-interest income /
total income (%) a
(S$m)
1,767
1,788
37
41
40
1,395
34
29
825
933
32
33
28
986
87
104
855
2003
751
2004
353
127
282
229
12
112
2005
1Q
421
274
36
111
2Q
420
307
314
242
241
27
38
52
21
3Q
2005
4Q
262
8
150
1Q
2006
Excluding one-time gains
14
Wealth management revenues increase
(S$m)
Structured deposits
9,006
9,242
Bancassurance
Unit trusts
7,428
7,227
5,908
4,334
429
200
247
2,905
2,847
2,066
1,157
41
868
2004
2005
1Q
1,578
2003
Sales (all products)
S’pore
4,162
3,874
3,560
HK
4,844
5,368
3,868
Fees (unit trusts and bancassurance only)
S’pore + HK
90
119
129
1,863
2,042
1,245
44
575
1,249
41
752
1,457
683
121
653
2Q
3Q
4Q
1,917
603
52
1,262
1Q
2006
2005
963
1,103
794
1,069
1,128
914
675
782
1,031
886
32
35
30
32
36
15
Cost-income ratio falls to 44%
(S$m)
Cost/Income (%)
1,956
2,026
1,801
42
2003
47
44
2004
2005
47
48
49
43
486
484
505
551
564
1Q
2Q
3Q
4Q
1Q
2005
Headcount
Staff costs (S$m)
44
2006
12,144
11,454
12,728
11,649
12,090
12,562
12,728
12,673
876
993
1,052
265
253
255
279
300
Cost-income ratio excludes one-time gains
16
Hong Kong’s operating profit up 36% on year
(S$m)
1Q
2006
YoY
%
Net interest income
278
36
1
Non-interest income
90
(8)
38
Operating income
368
21
8
Operating expenses
162
7
(9)
Operating profit
206
36
28
19
>100
(24)
156
29
33
Provisions
Net profit after tax
QoQ
%
Figures for Hong Kong geographical basis and converted to S$ using monthly closing rates.
Based on Singapore GAAP
17
Key Hong Kong ratios improve
(%)
1Q
2006
4Q
2005
1Q
2005
Net interest margin
2.64
2.42
1.98
Non-interest income/total income
24
20
32
Cost/income
44
53
50
1.34
0.94
1.07
77
78
75
ROA
Loans/deposits
18
Continued organic regional growth through branch
network
India
Assets S$1,263 m
114%
Branches 2 (Mumbai,
New Delhi)
Seoul
Beijing
Shanghai
Hong Kong
Yangon
Bangkok
Mumbai
Manila
Labuan
Kuala Lumpur
Indonesia
Assets S$2,120 m
108%
Branches 5 (Jakarta, Medan,
Bandung, Semarang, Surabaya)
Taipei
Tokyo
China
Assets S$5,806 m
13%
Branches 5 (Beijing, Guangzhou,
Shanghai, Shenzhen, Suzhou )
Rep offices 4 (Dongguan,
Fuzhou, Tianjin, Hangzhou)
Singapore
Jakarta
Assets as at March 31, 2006. Growth rates are year-on-year
19
NPL rate stable at 2.1%
(S$m)
Substandard
Doubtful
Loss
5.2
NPL rate (%)
2.5
3,780
2.1
2.4
2.2
2.0
2.1
2.1
1,928
1,896
1,807
1,865
1,750
72%
71%
68%
65%
63%
9%
19%
11%
18%
14%
18%
15%
20%
14%
22%
Mar
Jun
Sep
Dec
Mar
73%
1,919
1,865
71%
65%
5%
22%
9%
20%
15%
20%
2003
2004
2005
19%
2005
2006
20
New NPAs decline, recoveries rise
(S$m)
NPAs at start of period
New NPAs
Net recoveries of existing NPAs
Write-offs
NPAs at end of period
1Q
2006
1Q
2005
4Q
2005
1,865
1,919
1,807
170
185
250
(210)
(135)
(150)
(75)
(41)
(42)
1,750
1,928
1,865
21
Specific provision charges for loans decline
(S$m)
1Q
2006
1Q
2005
4Q
2005
New NPLs
39
53
86
Existing NPLs
33
33
33
72
86
119
3
2
1
Settlements
22
34
41
Recoveries
7
6
6
32
42
48
40
44
71
Add charges for
Subtract charges for
Upgrading
Total SP charges
tangerinesin\Analyst presentation\1H2001 Results\06 Analyst Presentation.ppt
22
Provision coverage rises to 100%
(S$m)
GP
SP
2,392
1,066
1,800
1,741
1,784
1,757
1,800
1,749
1,017
1,031
1,039
1,068
1,032
1,031
1,045
689
769
702
716
726
769
704
2004
2005
Mar
Jun
Sep
Dec
Mar
1,706
1,326
2003
SP+GP / Unsec NPAs
SP+GP / NPAs
2006
2005
Coverage ratios (%)
124
187
198
202
201
207
198
218
63
89
97
90
94
97
97
100
23
CAR lower as RWA expands
(%)
Tier-2
Tier-1
15.1
4.6
15.8
4.5
14.8
15.3
4.2
14.7
14.7
14.8
4.4
4.1
4.3
4.2
3.9
10.5
11.3
10.6
10.9
10.6
10.4
10.6
10.2
2003
2004
2005
Mar
Jun
Sep
Dec
Mar
2005
(S$bn)
Tier-1 capital
RWA
14.1
2006
9.6
11.8
13.1
11.8
12.2
12.6
13.1
13.5
92.1
104.0
123.8
108.8
114.8
121.2
123.8
131.8
24
Dividend up 55% on year to 17 cents per share
(S¢)
Final
Interim
Quarterly
58
40
30
30
22
16
16
14
14
18
2002
2003
2004
17
15
15
17
11
2005
2006
25
Sustained customer franchise growth
DBS Group Holdings 1Q 2006 financial results
April 28, 2006
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