financial performance 1q10
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 first quarter ended 31 March 2010.
For the first quarter of 2010, the Directors have declared an interim one-tier tax-exempt dividend of 14
cents (first quarter 2009: 14 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 (first
quarter 2009: 14 cents) for each DBSH ordinary share. The DBSH Scrip Dividend Scheme will be
applied to these dividends.
The DBSH shares will be quoted ex-dividend on 20 May 2010. Notice is hereby given that the Share
Transfer Books and Register of Members of the Company will be closed on 25 May 2010. 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 May 2010 will be
registered to determine shareholders' entitlement to the first quarter 2010 dividend.
The issue price for new shares to be allotted to shareholders who have elected to receive the first
quarter 2010 dividend in scrip shall be the average of the last dealt prices of each DBSH ordinary share
on the Singapore Exchange Securities Trading Limited for each of May 20, 21 and 24, 2010, to which a
discount of 5% shall be applied.
The payment date for cash dividends / crediting of shares is 8 July 2010. In respect of ordinary shares
in the securities accounts with The Central Depository (Pte) Limited (“CDP”), the first quarter 2010 onetier tax-exempt dividend will be paid by DBSH to CDP, which will in turn distribute the dividend
entitlements to shareholders, either in cash or by crediting the securities accounts of shareholders with
the relevant shares.
Shareholders are advised to also refer to a separate announcement, dated 7 May 2010, which outlines
further administrative details with respect to the application of the DBSH Scrip Dividend Scheme to the
first quarter 2010 dividend.
By order of the Board
Linda Hoon
Group Secretary
6 May 2010
Singapore
More information on the above announcement is available at www.dbs.com/investor
Performance Summary
Unaudited Financial Results
For the First Quarter ended
31 March 2010
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
Confirmation by the Board
Page
2
4
5
5
6
6
7
10
12
13
16
17
17
18
19
19
20
20
21
22
23
24
25
25
26
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 2009, with the exception of the adoption of new or revised FRS and
Interpretations to FRS (“INT FRS”).
On 1 January 2010, 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 27 Consolidated and Separate Financial Statements
•
FRS 103 Business Combination
•
FRS 39 (Amendments) Financial Instruments: Recognition and Measurement
- Eligible Hedged Items
- Embedded Derivatives
•
FRS 102 (Amendments) Share-Based Payment – Group Cash-settled Share-based Payment Transactions
•
INT FRS 109 (Amendments): Reassessment of Embedded Derivatives
•
INT FRS 117: Distributions of Non-cash Assets to Owners
•
Improvements to FRSs
Refer to page 25 for more information.
1st Qtr
2010
1st Qtr
2009
% chg
4th Qtr
2009
% chg
1,066
341
306
1,713
702
1,011
355
678
532
1,076
317
269
1,662
638
1,024
414
630
456
(1)
8
14
3
10
(1)
(14)
8
17
1,127
358
87
1,572
700
872
384
494
493
(5)
(5)
>100
9
16
(8)
37
8
532
(23)
433
NM
23
493
8
Selected balance sheet items ($m)
Customer loans 2/
3/
Interbank assets
Total assets
133,908
18,672
262,036
130,557
30,261
273,252
3
(38)
(4)
130,583
24,189
258,644
3
(23)
1
Customer deposits 4/
Total liabilities
Shareholders’ funds
181,560
231,716
26,183
179,818
244,923
24,042
1
(5)
9
183,432
229,145
25,373
(1)
1
3
Key financial ratios (%) (excluding one-time
items) 5/
Net interest margin
Non-interest/total income
Cost/income ratio
Return on assets
6/
Return on equity
Loan/deposit ratio
NPL ratio
Specific allowances (loans)/average loans (bp)
1.93
37.8
41.0
0.82
8.24
73.8
2.7
97
1.99
35.3
38.4
0.69
8.01
72.6
2.0
70
2.02
28.3
44.5
0.76
7.76
71.2
2.9
116
Tier 1 capital adequacy ratio
Total capital adequacy ratio
13.4
17.1
12.5
16.7
13.1
16.7
Selected income statement items ($m)
Net interest income
Net fee and commission income
Other non-interest income
Total income
Expenses
Profit before allowances
Allowances for credit and other losses
Profit before tax
Net profit
One-time items 1/
Net profit including one-time items
2
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
1st Qtr
2010
1st Qtr
2009
4th Qtr
2009
0.92
0.85
0.85
0.92
11.20
0.84
10.27
0.85
10.85
0.89
0.83
0.83
0.89
10.99
0.82
10.10
0.83
10.65
Per share data ($)
Per basic share
– earnings excluding one-time items and goodwill
charges
– earnings
– net book value 6/
Per diluted share
– earnings excluding one-time items and goodwill
charges
– earnings
6/
– net book value
Notes:
1/ One-time items include impairment charges for Thai investment
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
NM Not Meaningful
First-quarter net profit of $532 million rose 17% from a
year ago and 8% from the previous quarter. Revenues
were higher and business volume growth was sustained
from recent quarters. While non-performing assets
declined, additional allowances were set aside to increase
their coverage.
Net interest income declined from both comparative
periods to $1.07 billion. While housing and corporate loans
increased, the impact was offset by a decline in interest
margins as the credit environment normalised.
Higher non-interest income resulted in an overall revenue
increase of 3% from a year ago and 9% from the previous
quarter. Net fee income of $341 million was 8% higher
than a year ago in line with better economic conditions.
Trading income was better than both comparative periods
from better market opportunities and was supported by
strong customer flows.
Expenses of $702 million were similar to the previous
quarter and the cost-income ratio was 41%.
The non-performing loan rate improved from 2.9% in the
previous quarter to 2.7% due to customer repayments.
Allowances of $355 million were lower than both
comparative periods. Allowance coverage of nonperforming assets improved to 92% and to 119% if
collateral was considered.
The total capital adequacy ratio stood at 17.1% with tier1 at 13.4%.
Return on assets was 0.82% while return on equity was
8.2%. Both ratios were better than a year ago and the
previous quarter.
3
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET INTEREST INCOME
1st Qtr 2010
Average balance
sheet
Average
balance
($m)
Interest-bearing
assets
Customer loans
Interbank assets
Securities
Total
Interest-bearing
liabilities
Customer deposits
Other borrowings
Total
1st Qtr 2009
4th Qtr 2009
Average
Average
balance Interest
rate
($m)
($m)
(%)
Interest
($m)
Average
rate
(%)
Average
balance
($m)
Interest
($m)
Average
rate
(%)
132,388
42,548
49,457
224,393
934
74
364
1,372
2.86
0.71
2.98
2.48
128,695
41,384
49,044
219,123
1,107
107
441
1,655
3.49
1.05
3.65
3.06
128,152
41,697
51,613
221,462
968
82
387
1,437
3.00
0.78
2.97
2.57
181,335
25,148
206,483
215
91
306
0.48
1.46
0.60
175,464
28,227
203,691
387
192
579
0.90
2.76
1.15
180,701
22,859
203,560
219
91
310
0.48
1.58
0.60
1,066
1.93
1,076
1.99
1,127
2.02
Net interest
income/margin 1/
Note:
1/ Net interest margin is net interest income expressed as a percentage of average interest-earning assets
Net interest income fell 1% from a year ago and 5% from
the previous quarter to $1.07 billion. While customer loans
were higher, yields on housing and trade finance loans
were lower due to a normalised credit environment.
With deposit costs remaining unchanged, interest margins
declined nine basis points from the previous quarter to
1.93%, offsetting the impact of higher asset volumes.
A fewer number of days accounted for part of the decline in
net interest income from the previous quarter.
1st Qtr 2010 versus 1st Qtr 2009
Volume and rate analysis ($m)
Increase/(decrease) due to change in
1st Qtr 2010 versus 4th Qtr 2009
Volume
Rate
Net
change
Customer loans
Interbank assets
Securities
32
3
4
(205)
(36)
(81)
(173)
(33)
(77)
Total
39
(322)
13
(20)
(7)
46
Volume
Rate
Net
change
32
2
(45)
(9)
(13)
(7)
(283)
(16)
18
1
(53)
(15)
(35)
(185)
(81)
(266)
(172)
(101)
(273)
1
6
7
(1)
(4)
(5)
2
2
(56)
(10)
11
(48)
(37)
Interest income
Interest expense
Customer deposits
Other borrowings
Total
Net impact on interest income
Due to change in number of days
Net Interest Income
-
(24)
(10)
(61)
4
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET FEE AND COMMISSION INCOME
($m)
1st Qtr
2010
1st Qtr
2009
% chg
4th Qtr
2009
% chg
42
27
59
100
13
21
33
5
27
14
341
28
17
74
96
15
20
33
5
16
13
317
50
59
(20)
4
(13)
5
69
8
8
41
59
55
85
14
21
36
4
30
13
358
2
(54)
7
18
(7)
(8)
25
(10)
8
(5)
Stockbroking
Investment banking
Trade and remittances
Loan related
Guarantees
Deposit related
Credit card
Fund management
Wealth management
Others
Total
Net fee and commission income rose 8% from a year ago
to $341 million from a range of activities, including
stockbroking, investment banking and wealth management,
as economic conditions strengthened.
Compared to the previous quarter, net fee and commission
income fell 5% with lower investment banking income as
the previous quarter included significant deal bookings.
Loan-related and trade and remittance activities remained
strong.
OTHER NON-INTEREST INCOME
($m)
Net trading income/(loss)
Net (loss)/income from financial instruments
designated at fair value
Net income on financial investments
Net gain on fixed assets
Others (include rental income)
Total
1st Qtr
2010
1st Qtr
2009
% chg
4th Qtr
2009
% chg
260
204
27
179
45
(30)
(54)
44
(124)
76
50
14
12
106
13
(53)
NM
(8)
3
13
16
>100
8
(25)
306
269
14
87
>100
Note:
NM Not Meaningful
Net trading income rose to $230 million from $150
million a year ago and $55 million in the previous
quarter. The improved performance reflected better
market opportunities and customer flows in interest rate,
foreign exchange and credit activities.
Customer flows accounted for more than half of the net
trading income for the quarter.
The higher trading income boosted other non-interest
income to $306 million from $269 million a year ago and
$87 million in the previous quarter.
5
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
EXPENSES
($m)
1st Qtr
2010
1st Qtr
2009
% chg
4th Qtr
2009
% chg
Staff
Occupancy
Computerisation
Revenue-related
Others
Total
Staff headcount at period-end
338
70
129
31
134
702
14,267
327
71
112
33
95
638
14,082
3
(1)
15
(6)
41
10
1
313
56
143
39
149
700
14,033
8
25
(10)
(21)
(10)
0
2
48
1
41
1
17
-
48
1
-
2
2
-
1
100
Included in the above table were:
Depreciation of properties and other fixed assets
Directors’ fees
Audit fees payable
Expenses of $702 million were similar to the previous
quarter. An increase in staff costs in line with revenues
was offset by lower non-staff costs. Compared to a year
ago, costs were 10% higher as both staff and non-staff
costs rose.
The cost-income ratio of 41% was better than the
previous quarter’s 45% but higher than the 38% a year
ago.
ALLOWANCES FOR CREDIT AND OTHER LOSSES
($m)
General allowances (GP)
Specific allowances (SP) for loans 1/
Singapore
Hong Kong
Rest of Greater China
South and South-east Asia
Rest of the world
Specific allowances (SP) for securities, properties and
other assets 2/
Total
1st Qtr
2010
1st Qtr
2009
% chg
4th Qtr
2009
% chg
25
182
(86)
(225)
NM
324
10
7
(3)
6
304
225
30
91
14
10
80
44
(67)
(92)
NM
(40)
>100
387
8
15
22
12
330
(16)
25
(53)
NM
(50)
(8)
6
7
(14)
222
(97)
355
414
(14)
384
(8)
Notes:
1/ Specific allowances for loans are classified according to where the borrower is incorporated. Historical comparatives have been restated to conform to the current year presentation
2/ Exclude one-time items
Specific allowances for loans have been reclassified
from where the loans are booked to where the
borrowers are incorporated. Comparative figures have
been restated to conform to the current presentation.
Specific allowances for loans fell to $324 million from
$387 million in the previous quarter. Most of the charges
were taken for existing corporate NPLs in Rest of the
World.
General allowances of $25 million were taken during the
quarter for loan growth.
6
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY BUSINESS SEGMENTS
1/
($m)
Consumer/
Private
Banking
Institutional
Banking
Treasury
Others
Total
Selected income items
1st Qtr 2010
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
359
157
516
350
12
154
23
131
474
330
804
247
328
6
235
28
208
214
161
375
81
5
289
50
239
19
(1)
18
24
10
16
(12)
(46)
1,066
647
1,713
702
355
22
678
89
532
4th 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
369
156
525
387
(9)
147
23
124
481
323
804
269
417
9
127
(9)
146
278
(72)
206
62
(43)
187
37
150
(1)
38
37
(18)
19
(3)
33
(98)
73
1,127
445
1,572
700
384
6
494
(47)
493
333
142
475
272
35
168
26
142
427
335
762
218
211
5
338
79
261
298
188
486
96
50
340
66
275
18
(79)
(61)
52
118
15
(216)
(56)
(222)
1,076
586
1,662
638
414
20
630
115
456
46,799
100,758
98,434
10,225
115,590
3
12
64,087
6
6
38,180
2
2
13,859
7
28
256,216
5,820
262,036
231,716
18
48
2/
1st 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
Selected balance sheet and other
3/
items
31 Mar 2010
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 1st Qtr 2010
Depreciation for 1st Qtr 2010
7
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
Consumer/
Private
Banking
31 Dec 2009
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 4th Qtr 2009
Depreciation for 4th 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
Institutional
Banking
Treasury
Others
45,094
100,649
97,959
9,095
115,194
14
14
69,084
5
6
31,262
3
2
13,605
37
26
40,145
103,804
113,078
10,378
114,916
4
12
63,846
5
6
48,368
3
1
17,793
37
22
Total
252,797
5,847
258,644
229,145
59
48
267,405
5,847
273,252
244,923
49
41
Notes:
1/ With effect from 1 January 2010, the Group has adopted a revised capital benefit and fund transfer policy. The business segments have also been reaggregated following a
review. Comparative figures have been restated to conform to the current year presentation
2/ Allowances for credit and other losses and profits exclude one-time items
3/ Refer to sections on Customer Loans and Non-Performing Assets and Loss Allowance Coverage for more information on business segments
The business segment results are prepared based on
the Group’s internal management reporting which
reflects the organisation management structure. As the
activities of the Group are highly integrated, internal
allocation has been made in preparing the segment
information. Amounts for each business segment are
shown after the allocation of certain centralised costs,
funding income and the application of transfer pricing,
where appropriate. Transactions between segments are
recorded within the segment as if they are third party
transactions and are eliminated on consolidation. During
the quarter, no one group of related customers
generated more than 10% of the Group’s revenues.
The external presentation of the business segment
results has been revised from first-quarter 2010 to better
reflect internal management reporting. In addition, the
Group adopted a revised capital benefit and fund
transfer policy with effect from 1 January 2010.
Comparative figures have been restated to conform to
the current presentation.
The various business segments are described below:
Consumer/ Private Banking
Consumer/ Private Banking provides individual customers
with a diverse range of banking and related financial
services. The products and services available to customers
include current and savings accounts, fixed deposits, loans
and home finance, cards, payments, investment and
insurance products.
Compared to the previous quarter, net interest income
declined due to lower housing loan yields. Expenses
declined due to seasonal expenses in the previous
quarter. There was a net specific allowance write-back for
private banking in the previous quarter.
Institutional Banking
Institutional Banking provides financial services and
products to large corporate, institutional clients and small
and medium-sized 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.
Institutional Banking 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.
Asset management activities also fall under this segment.
Net interest income and non-interest income were stable
compared to the previous quarter. Expenses declined due
to lower wage and non-staff cost accruals. Allowance
charges were largely for specific allowances for existing
NPLs in Rest of the World.
Treasury
Treasury 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
8
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
business segments, such as Consumer/Private
Banking and Institutional Banking, is reflected in the
respective segments. Treasury is also 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.
Treasury’s revenues were higher than the previous quarter
as better trading conditions and customer flows boosted
non-interest income. Expenses were higher as wage cost
accruals increased in line with revenues.
Others
Others encompasses a range of activities from corporate
decisions and income and expenses not attributed to other
business segments.
9
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY GEOGRAPHY
1/
($m)
S’pore
Hong
Kong
Rest of
Greater
China
South
and
Southeast Asia
Rest of
world
Total
Selected income items
1st Qtr 2010
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
657
369
1,026
419
278
3
332
26
249
202
165
367
147
7
213
33
180
76
31
107
69
6
4
36
6
30
77
54
131
53
11
15
82
20
62
54
28
82
14
53
15
4
11
1,066
647
1,713
702
355
22
678
89
532
4th 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
704
250
954
410
209
3
338
(45)
335
216
126
342
154
37
151
23
128
75
13
88
81
35
6
(22)
(9)
(13)
79
26
105
46
15
(3)
41
6
35
53
30
83
9
88
(14)
(22)
8
1,127
445
1,572
700
384
6
494
(47)
493
1st Qtr 2009 2/
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
163,380
171
163,551
1,478
77,723
49,718
5,649
55,367
518
34,008
15,724
15,724
143
10,798
14,313
14,313
43
7,483
13,081
13,081
1
6,983
256,216
5,820
262,036
2,183
136,995
Selected balance sheet items 3/
31 Mar 2010
Total assets before goodwill
Goodwill on consolidation
Total assets
Non-current assets 4/
Gross customer loans
10
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
S’pore
Hong
Kong
Rest of
Greater
China
South
and
Southeast Asia
Rest of
world
Total
31 Dec 2009
Total assets before goodwill
Goodwill on consolidation
Total assets
Non-current assets 4/
Gross customer loans
165,652
198
165,850
1,485
75,117
47,653
5,649
53,302
530
33,431
14,362
14,362
142
10,252
12,743
12,743
46
8,058
12,387
12,387
1
6,562
252,797
5,847
258,644
2,204
133,420
31 Mar 2009
Total assets before goodwill
Goodwill on consolidation
Total assets
Non-current assets 4/
Gross customer loans
180,978
198
181,176
1,580
74,981
46,173
5,649
51,822
611
32,814
14,438
14,438
25
9,439
12,898
12,898
67
7,920
12,918
12,918
2
7,630
267,405
5,847
273,252
2,285
132,784
Notes:
1/ The geographical segment analysis is based on the location where transactions and assets are booked
2/ Allowances for credit and other losses and profits exclude one-time items
3/ Refer to sections on Customer Loans and Non-Performing Assets and Loss Allowance Coverage for more information on business segments
4/ Includes investment in associates, properties and other fixed assets, and investment properties
The performance by geography is classified based on the
location in which income and assets are recorded.
Singapore
Net profit fell to $249 million from $335 million in the
previous quarter, which had the benefit of a tax writeback. Profit before tax was stable as higher non-interest
income was offset by an increase in allowances.
Net interest income fell 7% from lower interest margins
due to lower loan yields. Loans rose as housing and
corporate loans increased. Non-interest income rose 48%
from better trading income and customer flows for
treasury products.
Expenses were little changed. Allowances rose 33%.
Most of the charges were specific allowances for existing
NPLs booked in Singapore but whose borrower’s country
of incorporation was in Rest of the World.
Hong Kong
The first quarter’s results incorporate a depreciation of the
Singapore dollar against the Hong Kong dollar of 1% from
the previous quarter and an appreciation of 8% from a year
ago.
Net profit rose to $180m from $128 million in the previous
quarter as non-interest income, expenses and allowances
improved.
Net interest income decreased 6% from the previous
quarter as net interest margins declined nine basis points to
1.80% as loan yields fell. Loans rose 2% from the previous
quarter, led by housing and corporate loans.
Non-interest income rose 31% from the previous quarter,
boosted by sales of treasury products, better trading
opportunities and gains from sale of investment securities.
Expenses were lower than the previous quarter as general
expenses such as advertising fell. Specific allowances
declined as charges for new and existing NPLs fell and
writebacks for corporate loans increased. General
allowances also fell compared to the previous quarter in
line with lower loan growth.
11
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CUSTOMER LOANS
1/
($m)
31 Mar 2010
31 Dec 2009
31 Mar 2009
136,995
133,420
132,784
General allowances
Net total
1,748
1,339
133,908
1,512
1,325
130,583
1,051
1,176
130,557
By business unit 2/
Consumer/ Private Banking
Institutional Banking
Others
Total (Gross)
46,117
90,586
292
136,995
44,162
88,503
755
133,420
40,047
91,974
763
132,784
By geography 3/
Singapore
Hong Kong
Rest of Greater China
South and South-east Asia
Rest of the world
Total (Gross)
64,184
33,492
11,647
12,020
15,652
136,995
61,713
32,999
11,211
11,726
15,771
133,420
62,520
32,525
10,567
10,820
16,352
132,784
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)
17,098
18,852
34,949
13,617
12,598
16,813
10,397
12,671
136,995
16,239
18,433
33,120
13,335
12,277
16,710
10,873
12,433
133,420
16,946
18,786
29,882
12,426
13,073
16,988
10,346
14,337
132,784
58,238
24,468
33,770
30,876
619
30,257
31,047
2,680
28,367
16,834
2,725
14,109
136,995
56,712
22,489
34,223
30,274
621
29,653
29,449
2,500
26,949
16,985
2,940
14,045
133,420
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
Gross
Less:
Specific allowances
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)
Notes:
1/ Includes customer loans classified as financial assets at fair value through profit or loss on the balance sheet
2/ The business segments have been reaggregated following a review. Historical comparatives have been restated to conform to the current year presentation.
3/ Loans by geography are classified according to where the borrower is incorporated. Historical comparatives have been restated to conform to the current year presentation.
Gross customer loans rose 3% from the previous quarter to
$137.0 billion. Loan growth was more broad-based than
recent quarters as corporate loans expanded in addition to
housing loans.
Loans in Hong Kong rose 2% in local currency terms
from the previous quarter as housing and corporate
loans grew.
12
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NON-PERFORMING ASSETS AND LOSS ALLOWANCE COVERAGE
By business unit
1/
2/
31 Mar 2010
Consumer/ Private
Banking
Institutional Banking
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
31 Dec 2009
Consumer/ Private
Banking
Institutional Banking
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
NPA
($m)
SP
($m)
GP
($m)
NPL
(% of loans)
(GP+SP)/NPA
(%)
(GP+SP)/
unsecured
NPA
(%)
496
190
459
1.1
131
242
3,268
1,637
880
3.6
77
97
3,764
1,827
1,339
2.7
84
111
127
104
99
-
160
187
177
103
250
-
199
219
4,068
2,034
1,688
-
92
119
513
195
440
1.2
124
236
3,363
1,410
885
3.8
68
86
3,876
1,605
1,325
2.9
76
100
160
106
92
-
124
164
183
97
255
-
192
209
4,219
1,808
1,672
-
83
108
615
260
398
1.5
107
198
2,106
855
778
2.3
78
127
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
31 Mar 2009
Consumer/ Private
Banking
Institutional Banking
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
Notes:
1/ Allowances for credit and other losses exclude one-time items
2/ The business segments have been reaggregated following a review. Historical comparatives have been restated to conform to the current year presentation.
13
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By geography
31 Mar 2010
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 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
NPA
($m)
SP
($m)
GP
($m)
NPL
(% of loans)
(GP+SP)/NPA
(%)
(GP+SP)/
unsecured
NPA
(%)
700
540
361
211
308
199
559
335
126
1.1
1.6
3.1
110
119
90
277
180
143
149
72
170
1.2
162
180
2,014
1,037
149
12.9
59
64
3,764
1,827
1,339
2.7
84
111
127
104
99
-
160
187
177
103
250
-
199
219
4,068
2,034
1,688
-
92
119
731
567
352
213
327
213
546
330
121
1.2
1.7
3.1
104
116
95
244
173
143
157
82
174
1.3
163
186
2,069
770
154
13.1
45
49
3,876
1,605
1,325
2.9
76
100
160
106
92
-
124
164
183
97
255
-
192
209
4,219
1,808
1,672
-
83
108
747
860
494
316
381
249
359
324
115
1.2
2.6
4.7
90
82
74
160
152
122
184
72
183
1.7
139
181
436
97
195
2.7
67
101
2,721
1,115
1,176
2.0
84
142
293
251
338
-
201
216
219
54
213
-
122
202
3,233
1,420
1,727
-
97
156
14
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By industry
($m)
31 Mar 2010
31 Dec 2009
31 Mar 2009
NPA
SP
NPA
SP
NPA
SP
697
131
175
459
375
24
27
280
735
89
188
472
386
22
30
238
824
258
214
472
381
44
42
226
290
121
264
97
29
7
Financial institutions, investment &
holding companies
1,649
818
1,738
621
433
141
Professionals & private individuals
(except housing loans)
212
94
234
113
299
151
Manufacturing
Building and construction
Housing loans
General commerce
Transportation, storage &
communications
Others
151
88
156
98
192
123
3,764
127
1,827
104
3,876
160
1,605
106
2,721
293
1,115
251
Contingent liabilities & others
177
103
183
97
219
54
Total non-performing assets
4,068
2,034
1,808
3,233
1,420
By loan classification
($m)
31 Mar 2010
Total non-performing loans
Debt securities
Non-performing assets
Substandard
Doubtful
Loss
Total
Restructured assets
Substandard
Doubtful
Loss
Total
4,219
31 Dec 2009
31 Mar 2009
NPA
SP
NPA
SP
NPA
SP
2,078
1,311
679
4,068
269
1,086
679
2,034
2,155
1,431
633
4,219
195
977
636
1,808
1,931
950
352
3,233
219
849
352
1,420
402
106
34
542
47
86
34
167
389
90
54
533
51
73
54
178
282
61
44
387
61
51
44
156
By collateral type
($m)
31 Mar 2010
31 Dec 2009
31 Mar 2009
NPA
NPA
NPA
3,133
3,233
2,018
Secured non-performing assets by collateral type
Properties
520
540
817
Shares and debentures
Fixed deposits
Others
106
24
285
124
22
300
121
18
259
4,068
4,219
3,233
Unsecured non-performing assets
Total
15
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By period overdue
($m)
31 Mar 2010
31 Dec 2009
31 Mar 2009
NPA
NPA
NPA
Not overdue
180 days overdue
1,653
265
245
1,905
1,802
358
113
1,946
1,107
589
495
1,042
Total
4,068
4,219
3,233
Non-performing loans fell 3% from the previous quarter to
$3.76 billion or 2.7% of the loan portfolio from customer
loan repayments. Forty-one percent of non-performing
assets were still current in interest principal, similar to the
previous quarter.
Allowance coverage rose to 92% of non-performing
assets and to 119% if collateral was considered.
FUNDING SOURCES
($m)
Customer deposits 1/
Interbank liabilities 2/
Other borrowings and liabilities 2/
Shareholders’ funds
Total
31 Mar 2010
31 Dec 2009
31 Mar 2009
181,560
10,382
43,911
26,183
262,036
183,432
9,320
40,519
25,373
258,644
179,818
12,327
57,065
24,042
273,252
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
16
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
31 Mar 2010
31 Dec 2009
31 Mar 2009
104,748
18,691
71,473
13,213
1,371
23,195
12,040
7,526
3,477
152
27,282
14,490
3,412
7,253
2,127
26,335
19,405
2,124
2,485
2,321
181,560
64,626
84,535
26,428
5,971
103,842
20,617
69,160
12,697
1,368
23,625
12,285
7,932
3,254
154
29,018
14,912
3,468
8,846
1,792
26,947
20,441
2,191
2,908
1,407
183,432
68,255
82,751
27,705
4,721
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
Note:
1/ Includes customer deposits classified as financial liabilities at fair value through profit or loss on the balance sheet
Customer deposits fell 1% from the previous quarter to
$181.6 billion as fixed deposits declined. Singapore-dollar
savings deposits continued to increase.
The overall deposit mix improved further during the
quarter as the proportion of savings accounts increased.
OTHER BORROWINGS & LIABILITIES
($m)
Subordinated term debts1/
Other debt securities in issue
Due within 1 year
Due after 1 year
Comprising:
2/
Secured
Unsecured
Others
Total
31 Mar 2010
31 Dec 2009
31 Mar 2009
7,662
7,702
9,539
248
331
44
369
310
502
579
35,670
43,911
75
338
32,404
40,519
419
393
46,714
57,065
Notes:
1/ All subordinated term debts issued are unsecured
2/ These are mainly secured by properties and securities
17
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 April 2009 to 31 March 2010. The Group’s
trading book VaR methodology is based on Historical Simulation VaR.
($m)
1 April 2009 to 31 March 2010
Average
High
Low
As at 31 March 2010
Total
28
32
52
19
The charts below provide the range of VaR and the daily distribution of trading income in the trading portfolio for the
period from 1 April 2009 to 31 March 2010.
DBSH Gr o u p Va R f o r T r a d in g Bo o k
25
No. of Day s
20
15
10
5
> 47- 48
> 48- 49
> 49- 50
> 50- 51
> 51- 52
> 52- 53
> 36- 37
> 37- 38
> 38- 39
> 39- 40
> 40- 41
> 41- 42
> 42- 43
> 43- 44
> 44- 45
> 45- 46
> 46- 47
> 25- 26
> 26- 27
> 27- 28
> 28- 29
> 29- 30
> 30- 31
> 31- 32
> 32- 33
> 33- 34
> 34- 35
> 35- 36
> 19- 20
> 20- 21
> 21- 22
> 22- 23
> 23- 24
> 24- 25
0
VaR ( S$ 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 Treasury & Markets Group Trading Income
(1 Apr 2009 to 31 Mar 2010)
40
35
25
20
15
10
5
>28-30
>24-26
>20-22
>16-18
>12-14
>8-10
>4-6
>0-2
>(4)-(2)
>(8)-(6)
>(12)-(10)
>(16)-(14)
>(20)-(18)
>(24)-(22)
>(28)-(26)
>(32)-(30)
>(36)-(34)
>(40)-(38)
0
>(44)-(42)
No. of days
30
Trading income (S$ million)
18
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CAPITAL ADEQUACY
($m)
Tier 1
Share capital
Disclosed reserves and others
Less: Tier 1 Deductions
Eligible Tier 1
Tier 2
Loan allowances admitted as Tier 2
Subordinated debts
Revaluation surplus from equity securities
Less: Tier 2 Deductions
Total eligible capital
Risk-weighted assets
Capital adequacy ratio (%)
Tier 1 ratio
Tier 2 ratio
Total (Tier 1 & 2) ratio
31 Mar 2010
31 Dec 2009
31 Mar 2009
8,440
21,194
(6,084)
23,550
8,435
20,928
(6,098)
23,265
8,423
20,429
(6,034)
22,818
662
5,955
102
(142)
30,127
175,850
434
5,970
87
(128)
29,628
177,222
734
6,901
16
(112)
30,357
181,875
13.4
3.7
17.1
13.1
3.6
16.7
12.5
4.2
16.7
The Group’s capital adequacy ratio increased from 16.7% in the previous quarter to 17.1% due to profits for the quarter and
a reduction in risk-weighted assets.
UNREALISED VALUATION SURPLUS/(LOSSES)
($m)
Properties
Financial investments
Total
31 Mar 2010
31 Dec 2009
31 Mar 2009
499
73
572
511
119
630
513
(321)
192
The amount of unrealised valuation surplus decreased from $630 million in the previous quarter to $572 million mainly due to
disposal of financial investments.
19
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Consolidated Income Statement
1st Qtr
2010
1st Qtr
2009
+/(-)
%
4th Qtr
2009
+/(-)
%
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
1,372
306
1,066
341
260
(30)
50
26
1,655
579
1,076
317
204
(54)
106
13
(17)
(47)
(1)
8
27
44
(53)
100
1,437
310
1,127
358
179
(124)
3
29
(5)
(1)
(5)
(5)
45
76
>100
(10)
Total income
1,713
1,662
3
1,572
9
338
48
316
355
327
41
270
437
3
17
17
(19)
313
48
339
384
8
(7)
(8)
1,057
1,075
(2)
1,084
(2)
Profit
Share of profits of associates
Profit before tax
656
22
678
587
20
607
12
10
12
488
6
494
34
>100
37
Income tax expense
Net profit
89
589
115
492
(23)
20
(47)
541
NM
9
532
57
589
433
59
492
23
(3)
20
493
48
541
8
19
9
1st Qtr
2010
1st Qtr
2009
+/(-)
%
4th Qtr
2009
+/(-)
%
589
492
20
541
9
In $ millions
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
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 due to impairment
Transferred to income statement on sale
Tax on items taken directly to or transferred from equity
Other comprehensive income, net of tax
31
(3)
135
6
(77)
NM
(4)
2
NM
NM
230
23
(22)
259
(392)
(112)
46
(317)
NM
NM
NM
NM
32
(31)
(15)
(16)
>100
NM
(47)
NM
Total comprehensive income
848
175
>100
525
62
795
53
848
27
148
175
>100
(64)
>100
490
35
525
62
51
62
Attributable to:
Shareholders
Minority interests
20
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Balance Sheets
31 Mar
2010
GROUP
31 Dec
2009 1/
31 Mar
2009
31 Mar
2010
COMPANY
31 Dec
2009 1/
31 Mar
2009
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 fair 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
29,273
13,967
15,850
13,133
15,588
133,268
22,695
1,596
687
5,820
1,087
409
118
8,545
22,515
15,960
22,203
11,257
16,015
129,973
25,731
784
672
5,847
1,134
398
144
6,011
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
9,713
9,698
10,959
65
93
99
TOTAL ASSETS
262,036
258,644
273,252
9,778
9,791
11,058
Due to banks
Due to non-bank customers
Financial liabilities at fair value through profit or loss 3/
Negative fair values for financial derivatives
Bills payable
Current tax liabilities
Deferred tax liabilities
Other liabilities
Other debt securities in issue
Subordinated term debts
10,081
176,309
10,340
15,300
761
816
52
9,816
579
7,662
9,108
178,448
9,217
16,406
501
807
54
6,489
413
7,702
11,839
174,914
9,492
29,406
870
822
46
7,183
812
9,539
5
5
3
TOTAL LIABILITIES
231,716
229,145
244,923
5
5
3
30,320
29,499
28,329
9,773
9,786
11,055
Share capital
Treasury shares
Other reserves
Revenue reserves
8,440
(86)
7,124
10,705
8,435
(114)
6,879
10,173
8,423
(120)
5,870
9,869
8,440
53
1,280
8,435
71
1,280
8,423
43
2,589
SHAREHOLDERS’ FUNDS
26,183
25,373
24,042
9,773
9,786
11,055
Minority interests
4,137
4,126
4,287
TOTAL EQUITY
30,320
29,499
28,329
9,773
9,786
11,055
102,741
1,458,464
98,207
1,396,855
99,438
1,697,178
4.17
4.18
4.74
4.10
4.11
4.64
In $ millions
ASSETS
LIABILITIES
NET ASSETS
EQUITY
OFF BALANCE SHEET ITEMS
Contingent liabilities and commitments
Financial derivatives
OTHER INFORMATION
Net asset value per ordinary share ($)
(i) Based on existing ordinary share capital
(ii) Assuming conversion of outstanding preference
shares to ordinary shares
Notes:
1/ Audited
2/ Includes customer loans, interbank assets, other government securities and treasury bills, corporate debt securities and equity securities
3/ Includes customer deposits, interbank liabilities, other debt securities in issue and other financial liabilities
21
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Consolidated Statement of Changes in Equity
GROUP
In $ millions
Balance at 1 January 2010
Ordinary
shares
8,188
Exercise of share options
4
Reclassification of reserves upon exercise of
share options
1
Convertible
preference
shares
Treasury
shares
Other
reserves
Revenue
reserves
Total
Minority
interests
Total equity
247
(114)
6,879
10,173
25,373
4,126
29,499
Cost of share-based payments
Draw-down of reserves upon vesting of
28
performance shares
4
4
(1)
-
-
11
11
11
(28)
-
-
Dividends paid to minority interests
Total comprehensive income
263
532
795
(42)
(42)
53
848
Balance at 31 March 2010
8,193
247
(86)
7,124
10,705
26,183
4,137
30,320
Balance at 1 January 2009
4,149
66
(154)
6,322
9,436
19,819
4,184
24,003
Cost of share-based payments
9
9
9
Draw-down of reserves upon vesting of
55
performance shares
Purchase of Treasury shares
Issue of shares
Share issues expenses
(55)
(21)
4,029
181
(2)
-
-
(21)
(21)
4,210
4,210
(2)
Dividends paid to minority interests
Total comprehensive income
Balance at 31 March 2009
8,176
247
(120)
(2)
(45)
(45)
(406)
433
27
148
175
5,870
9,869
24,042
4,287
28,329
22
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Statement of Changes in Equity
COMPANY
In $ millions
Balance at 1 January 2010
Ordinary
shares
8,188
Exercise of share options
4
Reclassification of reserves upon exercise of share options
1
Convertible
preference
shares
247
Treasury
shares
Other
reserves
-
Cost of share-based payments
Draw-down of reserves upon vesting of performance shares
71
Revenue
reserves
1,280
Total equity
9,786
4
(1)
-
11
11
(28)
(28)
Balance at 31 March 2010
8,193
247
-
53
1,280
9,773
Balance at 1 January 2009
4,149
66
-
89
9
2,590
6,894
Cost of share-based payments
Issue of shares
Share issues expense
4,029
(55)
181
4,210
(2)
(2)
Total comprehensive income
Balance at 31 March 2009
9
(55)
Draw-down of reserves upon vesting of performance shares
8,176
247
-
43
(1)
(1)
2,589
11,055
23
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Consolidated Cash Flow Statement
In $ millions
1st Qtr
2010
1st Qtr
2009
Cash flows from operating activities
Net profit for the year
589
Adjustments for non-cash items:
Allowances for credit and other losses
Depreciation of properties and other fixed assets
Share of profits of associates
Net gain on disposal of properties and other fixed assets
Net gain on disposal of financial investments
Income tax expense
Profit before changes in operating assets & liabilities
355
48
(22)
(14)
(50)
89
995
437
41
(20)
(106)
115
959
Increase/(Decrease) in:
Due to banks
Due to non-bank customers
Financial liabilities at fair value through profit or loss
Other liabilities including bills payable
Debt securities and borrowings
973
(2,139)
1,123
2,863
(253)
2,818
11,555
(1,790)
(554)
131
(Increase)/Decrease in:
Change in restricted balances with central banks
Singapore Government securities and treasury bills
Due from banks
Financial assets at fair value through profit or loss
Loans and advances to customers
Financial investments
Other assets
(1,161)
1,993
6,355
(1,876)
(3,636)
3,081
(2,663)
(447)
485
(7,864)
(1,489)
(4,460)
(2,215)
837
(78)
(73)
Tax paid
Net cash generated from / (used in) operating activities (1)
Cash flows from investing activities
Dividends from associates
Purchase of properties and other fixed assets
Proceeds from disposal of properties and other fixed assets
Net cash generated from / (used in) investing activities (2)
492
5,577
(2,107)
18
(18)
22
19
(49)
4
22
(26)
Cash flows from financing activities
Increase in share capital and share premium
Purchase of treasury shares
Dividends paid to minority interests
5
(42)
4,208
(21)
(45)
Net cash (used in) / generated from financing activities (3)
Exchange translation adjustments (4)
(37)
35
4,142
46
Net change in cash and cash equivalents (1)+(2)+(3)+(4)
Cash and cash equivalents at 1 January
Cash and cash equivalents at 31 March
5,597
19,281
24,878
2,055
12,678
14,733
24
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Additional Information
ISSUANCE OF ORDINARY SHARES
(a)
The movement in the number of issued and fully paid-up ordinary shares for the first quarter ended 31 March 2010 is
as follows:
At 1 January 2010
Exercise of share options pursuant to the DBSH Share Option Plan
At 31 March 2010
2,282,452,288
344,376
2,282,796,664
Weighted average number of shares for first quarter 2010
- ordinary shares
- fully diluted
2,282,694,950
2,384,440,864
The fully diluted shares took into account the effect of a full conversion of non-voting convertible preference shares
(CPS) and non-voting redeemable CPS, and the exercise of all outstanding share options granted to employees when
such shares would be issued to a price lower than the average share price during the period.
(b)
New ordinary shares that would have been issued on conversion of preference shares and exercise of share option
are as follows:
31 Mar 2010
31 Dec 2009
31 Mar 2009
(Number)
180,654
180,654
180,654
Conversion of non-voting CPS
99,713,061
99,713,061
99,713,061
Conversion of non-voting redeemable CPS
14,653,519
14,898,637
16,844,741
Exercise of share options
(c)
The movement in the number of treasury shares for the first quarter ended 31 March 2010 is as follows:
7,784,454
At 1 January 2010
(1,863,122)
Vesting of performance shares
5,921,332
At 31 March 2010
ADOPTION OF NEW OR REVISED FRS AND INT FRS
FRS 27: Consolidated and Separate Financial Statements
The standard requires the effects of all transactions with non-controlling interests to be recorded in equity if there is no change
in control. Such transactions will have no impact on goodwill, nor will it give rise to a gain or loss. The standard also specifies
the accounting when control is lost. Any remaining interest in the entity is re-measured to fair value, and a gain or loss is
recognised in profit or loss.
The changes introduced by FRS 27 must be applied prospectively and will affect future transactions with non-controlling
interests.
FRS 103: Business Combination
The revised FRS 103 becomes effective for financial years beginning on or after 1 January 2010. It introduces a
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 first quarter ended 31 March 2010.
For the first quarter of 2010, the Directors have declared an interim one-tier tax-exempt dividend of 14
cents (first quarter 2009: 14 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 (first
quarter 2009: 14 cents) for each DBSH ordinary share. The DBSH Scrip Dividend Scheme will be
applied to these dividends.
The DBSH shares will be quoted ex-dividend on 20 May 2010. Notice is hereby given that the Share
Transfer Books and Register of Members of the Company will be closed on 25 May 2010. 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 May 2010 will be
registered to determine shareholders' entitlement to the first quarter 2010 dividend.
The issue price for new shares to be allotted to shareholders who have elected to receive the first
quarter 2010 dividend in scrip shall be the average of the last dealt prices of each DBSH ordinary share
on the Singapore Exchange Securities Trading Limited for each of May 20, 21 and 24, 2010, to which a
discount of 5% shall be applied.
The payment date for cash dividends / crediting of shares is 8 July 2010. In respect of ordinary shares
in the securities accounts with The Central Depository (Pte) Limited (“CDP”), the first quarter 2010 onetier tax-exempt dividend will be paid by DBSH to CDP, which will in turn distribute the dividend
entitlements to shareholders, either in cash or by crediting the securities accounts of shareholders with
the relevant shares.
Shareholders are advised to also refer to a separate announcement, dated 7 May 2010, which outlines
further administrative details with respect to the application of the DBSH Scrip Dividend Scheme to the
first quarter 2010 dividend.
By order of the Board
Linda Hoon
Group Secretary
6 May 2010
Singapore
More information on the above announcement is available at www.dbs.com/investor
Performance Summary
Unaudited Financial Results
For the First Quarter ended
31 March 2010
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
Confirmation by the Board
Page
2
4
5
5
6
6
7
10
12
13
16
17
17
18
19
19
20
20
21
22
23
24
25
25
26
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 2009, with the exception of the adoption of new or revised FRS and
Interpretations to FRS (“INT FRS”).
On 1 January 2010, 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 27 Consolidated and Separate Financial Statements
•
FRS 103 Business Combination
•
FRS 39 (Amendments) Financial Instruments: Recognition and Measurement
- Eligible Hedged Items
- Embedded Derivatives
•
FRS 102 (Amendments) Share-Based Payment – Group Cash-settled Share-based Payment Transactions
•
INT FRS 109 (Amendments): Reassessment of Embedded Derivatives
•
INT FRS 117: Distributions of Non-cash Assets to Owners
•
Improvements to FRSs
Refer to page 25 for more information.
1st Qtr
2010
1st Qtr
2009
% chg
4th Qtr
2009
% chg
1,066
341
306
1,713
702
1,011
355
678
532
1,076
317
269
1,662
638
1,024
414
630
456
(1)
8
14
3
10
(1)
(14)
8
17
1,127
358
87
1,572
700
872
384
494
493
(5)
(5)
>100
9
16
(8)
37
8
532
(23)
433
NM
23
493
8
Selected balance sheet items ($m)
Customer loans 2/
3/
Interbank assets
Total assets
133,908
18,672
262,036
130,557
30,261
273,252
3
(38)
(4)
130,583
24,189
258,644
3
(23)
1
Customer deposits 4/
Total liabilities
Shareholders’ funds
181,560
231,716
26,183
179,818
244,923
24,042
1
(5)
9
183,432
229,145
25,373
(1)
1
3
Key financial ratios (%) (excluding one-time
items) 5/
Net interest margin
Non-interest/total income
Cost/income ratio
Return on assets
6/
Return on equity
Loan/deposit ratio
NPL ratio
Specific allowances (loans)/average loans (bp)
1.93
37.8
41.0
0.82
8.24
73.8
2.7
97
1.99
35.3
38.4
0.69
8.01
72.6
2.0
70
2.02
28.3
44.5
0.76
7.76
71.2
2.9
116
Tier 1 capital adequacy ratio
Total capital adequacy ratio
13.4
17.1
12.5
16.7
13.1
16.7
Selected income statement items ($m)
Net interest income
Net fee and commission income
Other non-interest income
Total income
Expenses
Profit before allowances
Allowances for credit and other losses
Profit before tax
Net profit
One-time items 1/
Net profit including one-time items
2
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
1st Qtr
2010
1st Qtr
2009
4th Qtr
2009
0.92
0.85
0.85
0.92
11.20
0.84
10.27
0.85
10.85
0.89
0.83
0.83
0.89
10.99
0.82
10.10
0.83
10.65
Per share data ($)
Per basic share
– earnings excluding one-time items and goodwill
charges
– earnings
– net book value 6/
Per diluted share
– earnings excluding one-time items and goodwill
charges
– earnings
6/
– net book value
Notes:
1/ One-time items include impairment charges for Thai investment
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
NM Not Meaningful
First-quarter net profit of $532 million rose 17% from a
year ago and 8% from the previous quarter. Revenues
were higher and business volume growth was sustained
from recent quarters. While non-performing assets
declined, additional allowances were set aside to increase
their coverage.
Net interest income declined from both comparative
periods to $1.07 billion. While housing and corporate loans
increased, the impact was offset by a decline in interest
margins as the credit environment normalised.
Higher non-interest income resulted in an overall revenue
increase of 3% from a year ago and 9% from the previous
quarter. Net fee income of $341 million was 8% higher
than a year ago in line with better economic conditions.
Trading income was better than both comparative periods
from better market opportunities and was supported by
strong customer flows.
Expenses of $702 million were similar to the previous
quarter and the cost-income ratio was 41%.
The non-performing loan rate improved from 2.9% in the
previous quarter to 2.7% due to customer repayments.
Allowances of $355 million were lower than both
comparative periods. Allowance coverage of nonperforming assets improved to 92% and to 119% if
collateral was considered.
The total capital adequacy ratio stood at 17.1% with tier1 at 13.4%.
Return on assets was 0.82% while return on equity was
8.2%. Both ratios were better than a year ago and the
previous quarter.
3
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET INTEREST INCOME
1st Qtr 2010
Average balance
sheet
Average
balance
($m)
Interest-bearing
assets
Customer loans
Interbank assets
Securities
Total
Interest-bearing
liabilities
Customer deposits
Other borrowings
Total
1st Qtr 2009
4th Qtr 2009
Average
Average
balance Interest
rate
($m)
($m)
(%)
Interest
($m)
Average
rate
(%)
Average
balance
($m)
Interest
($m)
Average
rate
(%)
132,388
42,548
49,457
224,393
934
74
364
1,372
2.86
0.71
2.98
2.48
128,695
41,384
49,044
219,123
1,107
107
441
1,655
3.49
1.05
3.65
3.06
128,152
41,697
51,613
221,462
968
82
387
1,437
3.00
0.78
2.97
2.57
181,335
25,148
206,483
215
91
306
0.48
1.46
0.60
175,464
28,227
203,691
387
192
579
0.90
2.76
1.15
180,701
22,859
203,560
219
91
310
0.48
1.58
0.60
1,066
1.93
1,076
1.99
1,127
2.02
Net interest
income/margin 1/
Note:
1/ Net interest margin is net interest income expressed as a percentage of average interest-earning assets
Net interest income fell 1% from a year ago and 5% from
the previous quarter to $1.07 billion. While customer loans
were higher, yields on housing and trade finance loans
were lower due to a normalised credit environment.
With deposit costs remaining unchanged, interest margins
declined nine basis points from the previous quarter to
1.93%, offsetting the impact of higher asset volumes.
A fewer number of days accounted for part of the decline in
net interest income from the previous quarter.
1st Qtr 2010 versus 1st Qtr 2009
Volume and rate analysis ($m)
Increase/(decrease) due to change in
1st Qtr 2010 versus 4th Qtr 2009
Volume
Rate
Net
change
Customer loans
Interbank assets
Securities
32
3
4
(205)
(36)
(81)
(173)
(33)
(77)
Total
39
(322)
13
(20)
(7)
46
Volume
Rate
Net
change
32
2
(45)
(9)
(13)
(7)
(283)
(16)
18
1
(53)
(15)
(35)
(185)
(81)
(266)
(172)
(101)
(273)
1
6
7
(1)
(4)
(5)
2
2
(56)
(10)
11
(48)
(37)
Interest income
Interest expense
Customer deposits
Other borrowings
Total
Net impact on interest income
Due to change in number of days
Net Interest Income
-
(24)
(10)
(61)
4
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET FEE AND COMMISSION INCOME
($m)
1st Qtr
2010
1st Qtr
2009
% chg
4th Qtr
2009
% chg
42
27
59
100
13
21
33
5
27
14
341
28
17
74
96
15
20
33
5
16
13
317
50
59
(20)
4
(13)
5
69
8
8
41
59
55
85
14
21
36
4
30
13
358
2
(54)
7
18
(7)
(8)
25
(10)
8
(5)
Stockbroking
Investment banking
Trade and remittances
Loan related
Guarantees
Deposit related
Credit card
Fund management
Wealth management
Others
Total
Net fee and commission income rose 8% from a year ago
to $341 million from a range of activities, including
stockbroking, investment banking and wealth management,
as economic conditions strengthened.
Compared to the previous quarter, net fee and commission
income fell 5% with lower investment banking income as
the previous quarter included significant deal bookings.
Loan-related and trade and remittance activities remained
strong.
OTHER NON-INTEREST INCOME
($m)
Net trading income/(loss)
Net (loss)/income from financial instruments
designated at fair value
Net income on financial investments
Net gain on fixed assets
Others (include rental income)
Total
1st Qtr
2010
1st Qtr
2009
% chg
4th Qtr
2009
% chg
260
204
27
179
45
(30)
(54)
44
(124)
76
50
14
12
106
13
(53)
NM
(8)
3
13
16
>100
8
(25)
306
269
14
87
>100
Note:
NM Not Meaningful
Net trading income rose to $230 million from $150
million a year ago and $55 million in the previous
quarter. The improved performance reflected better
market opportunities and customer flows in interest rate,
foreign exchange and credit activities.
Customer flows accounted for more than half of the net
trading income for the quarter.
The higher trading income boosted other non-interest
income to $306 million from $269 million a year ago and
$87 million in the previous quarter.
5
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
EXPENSES
($m)
1st Qtr
2010
1st Qtr
2009
% chg
4th Qtr
2009
% chg
Staff
Occupancy
Computerisation
Revenue-related
Others
Total
Staff headcount at period-end
338
70
129
31
134
702
14,267
327
71
112
33
95
638
14,082
3
(1)
15
(6)
41
10
1
313
56
143
39
149
700
14,033
8
25
(10)
(21)
(10)
0
2
48
1
41
1
17
-
48
1
-
2
2
-
1
100
Included in the above table were:
Depreciation of properties and other fixed assets
Directors’ fees
Audit fees payable
Expenses of $702 million were similar to the previous
quarter. An increase in staff costs in line with revenues
was offset by lower non-staff costs. Compared to a year
ago, costs were 10% higher as both staff and non-staff
costs rose.
The cost-income ratio of 41% was better than the
previous quarter’s 45% but higher than the 38% a year
ago.
ALLOWANCES FOR CREDIT AND OTHER LOSSES
($m)
General allowances (GP)
Specific allowances (SP) for loans 1/
Singapore
Hong Kong
Rest of Greater China
South and South-east Asia
Rest of the world
Specific allowances (SP) for securities, properties and
other assets 2/
Total
1st Qtr
2010
1st Qtr
2009
% chg
4th Qtr
2009
% chg
25
182
(86)
(225)
NM
324
10
7
(3)
6
304
225
30
91
14
10
80
44
(67)
(92)
NM
(40)
>100
387
8
15
22
12
330
(16)
25
(53)
NM
(50)
(8)
6
7
(14)
222
(97)
355
414
(14)
384
(8)
Notes:
1/ Specific allowances for loans are classified according to where the borrower is incorporated. Historical comparatives have been restated to conform to the current year presentation
2/ Exclude one-time items
Specific allowances for loans have been reclassified
from where the loans are booked to where the
borrowers are incorporated. Comparative figures have
been restated to conform to the current presentation.
Specific allowances for loans fell to $324 million from
$387 million in the previous quarter. Most of the charges
were taken for existing corporate NPLs in Rest of the
World.
General allowances of $25 million were taken during the
quarter for loan growth.
6
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY BUSINESS SEGMENTS
1/
($m)
Consumer/
Private
Banking
Institutional
Banking
Treasury
Others
Total
Selected income items
1st Qtr 2010
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
359
157
516
350
12
154
23
131
474
330
804
247
328
6
235
28
208
214
161
375
81
5
289
50
239
19
(1)
18
24
10
16
(12)
(46)
1,066
647
1,713
702
355
22
678
89
532
4th 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
369
156
525
387
(9)
147
23
124
481
323
804
269
417
9
127
(9)
146
278
(72)
206
62
(43)
187
37
150
(1)
38
37
(18)
19
(3)
33
(98)
73
1,127
445
1,572
700
384
6
494
(47)
493
333
142
475
272
35
168
26
142
427
335
762
218
211
5
338
79
261
298
188
486
96
50
340
66
275
18
(79)
(61)
52
118
15
(216)
(56)
(222)
1,076
586
1,662
638
414
20
630
115
456
46,799
100,758
98,434
10,225
115,590
3
12
64,087
6
6
38,180
2
2
13,859
7
28
256,216
5,820
262,036
231,716
18
48
2/
1st 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
Selected balance sheet and other
3/
items
31 Mar 2010
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 1st Qtr 2010
Depreciation for 1st Qtr 2010
7
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
Consumer/
Private
Banking
31 Dec 2009
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 4th Qtr 2009
Depreciation for 4th 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
Institutional
Banking
Treasury
Others
45,094
100,649
97,959
9,095
115,194
14
14
69,084
5
6
31,262
3
2
13,605
37
26
40,145
103,804
113,078
10,378
114,916
4
12
63,846
5
6
48,368
3
1
17,793
37
22
Total
252,797
5,847
258,644
229,145
59
48
267,405
5,847
273,252
244,923
49
41
Notes:
1/ With effect from 1 January 2010, the Group has adopted a revised capital benefit and fund transfer policy. The business segments have also been reaggregated following a
review. Comparative figures have been restated to conform to the current year presentation
2/ Allowances for credit and other losses and profits exclude one-time items
3/ Refer to sections on Customer Loans and Non-Performing Assets and Loss Allowance Coverage for more information on business segments
The business segment results are prepared based on
the Group’s internal management reporting which
reflects the organisation management structure. As the
activities of the Group are highly integrated, internal
allocation has been made in preparing the segment
information. Amounts for each business segment are
shown after the allocation of certain centralised costs,
funding income and the application of transfer pricing,
where appropriate. Transactions between segments are
recorded within the segment as if they are third party
transactions and are eliminated on consolidation. During
the quarter, no one group of related customers
generated more than 10% of the Group’s revenues.
The external presentation of the business segment
results has been revised from first-quarter 2010 to better
reflect internal management reporting. In addition, the
Group adopted a revised capital benefit and fund
transfer policy with effect from 1 January 2010.
Comparative figures have been restated to conform to
the current presentation.
The various business segments are described below:
Consumer/ Private Banking
Consumer/ Private Banking provides individual customers
with a diverse range of banking and related financial
services. The products and services available to customers
include current and savings accounts, fixed deposits, loans
and home finance, cards, payments, investment and
insurance products.
Compared to the previous quarter, net interest income
declined due to lower housing loan yields. Expenses
declined due to seasonal expenses in the previous
quarter. There was a net specific allowance write-back for
private banking in the previous quarter.
Institutional Banking
Institutional Banking provides financial services and
products to large corporate, institutional clients and small
and medium-sized 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.
Institutional Banking 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.
Asset management activities also fall under this segment.
Net interest income and non-interest income were stable
compared to the previous quarter. Expenses declined due
to lower wage and non-staff cost accruals. Allowance
charges were largely for specific allowances for existing
NPLs in Rest of the World.
Treasury
Treasury 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
8
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
business segments, such as Consumer/Private
Banking and Institutional Banking, is reflected in the
respective segments. Treasury is also 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.
Treasury’s revenues were higher than the previous quarter
as better trading conditions and customer flows boosted
non-interest income. Expenses were higher as wage cost
accruals increased in line with revenues.
Others
Others encompasses a range of activities from corporate
decisions and income and expenses not attributed to other
business segments.
9
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY GEOGRAPHY
1/
($m)
S’pore
Hong
Kong
Rest of
Greater
China
South
and
Southeast Asia
Rest of
world
Total
Selected income items
1st Qtr 2010
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
657
369
1,026
419
278
3
332
26
249
202
165
367
147
7
213
33
180
76
31
107
69
6
4
36
6
30
77
54
131
53
11
15
82
20
62
54
28
82
14
53
15
4
11
1,066
647
1,713
702
355
22
678
89
532
4th 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
704
250
954
410
209
3
338
(45)
335
216
126
342
154
37
151
23
128
75
13
88
81
35
6
(22)
(9)
(13)
79
26
105
46
15
(3)
41
6
35
53
30
83
9
88
(14)
(22)
8
1,127
445
1,572
700
384
6
494
(47)
493
1st Qtr 2009 2/
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
163,380
171
163,551
1,478
77,723
49,718
5,649
55,367
518
34,008
15,724
15,724
143
10,798
14,313
14,313
43
7,483
13,081
13,081
1
6,983
256,216
5,820
262,036
2,183
136,995
Selected balance sheet items 3/
31 Mar 2010
Total assets before goodwill
Goodwill on consolidation
Total assets
Non-current assets 4/
Gross customer loans
10
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
S’pore
Hong
Kong
Rest of
Greater
China
South
and
Southeast Asia
Rest of
world
Total
31 Dec 2009
Total assets before goodwill
Goodwill on consolidation
Total assets
Non-current assets 4/
Gross customer loans
165,652
198
165,850
1,485
75,117
47,653
5,649
53,302
530
33,431
14,362
14,362
142
10,252
12,743
12,743
46
8,058
12,387
12,387
1
6,562
252,797
5,847
258,644
2,204
133,420
31 Mar 2009
Total assets before goodwill
Goodwill on consolidation
Total assets
Non-current assets 4/
Gross customer loans
180,978
198
181,176
1,580
74,981
46,173
5,649
51,822
611
32,814
14,438
14,438
25
9,439
12,898
12,898
67
7,920
12,918
12,918
2
7,630
267,405
5,847
273,252
2,285
132,784
Notes:
1/ The geographical segment analysis is based on the location where transactions and assets are booked
2/ Allowances for credit and other losses and profits exclude one-time items
3/ Refer to sections on Customer Loans and Non-Performing Assets and Loss Allowance Coverage for more information on business segments
4/ Includes investment in associates, properties and other fixed assets, and investment properties
The performance by geography is classified based on the
location in which income and assets are recorded.
Singapore
Net profit fell to $249 million from $335 million in the
previous quarter, which had the benefit of a tax writeback. Profit before tax was stable as higher non-interest
income was offset by an increase in allowances.
Net interest income fell 7% from lower interest margins
due to lower loan yields. Loans rose as housing and
corporate loans increased. Non-interest income rose 48%
from better trading income and customer flows for
treasury products.
Expenses were little changed. Allowances rose 33%.
Most of the charges were specific allowances for existing
NPLs booked in Singapore but whose borrower’s country
of incorporation was in Rest of the World.
Hong Kong
The first quarter’s results incorporate a depreciation of the
Singapore dollar against the Hong Kong dollar of 1% from
the previous quarter and an appreciation of 8% from a year
ago.
Net profit rose to $180m from $128 million in the previous
quarter as non-interest income, expenses and allowances
improved.
Net interest income decreased 6% from the previous
quarter as net interest margins declined nine basis points to
1.80% as loan yields fell. Loans rose 2% from the previous
quarter, led by housing and corporate loans.
Non-interest income rose 31% from the previous quarter,
boosted by sales of treasury products, better trading
opportunities and gains from sale of investment securities.
Expenses were lower than the previous quarter as general
expenses such as advertising fell. Specific allowances
declined as charges for new and existing NPLs fell and
writebacks for corporate loans increased. General
allowances also fell compared to the previous quarter in
line with lower loan growth.
11
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CUSTOMER LOANS
1/
($m)
31 Mar 2010
31 Dec 2009
31 Mar 2009
136,995
133,420
132,784
General allowances
Net total
1,748
1,339
133,908
1,512
1,325
130,583
1,051
1,176
130,557
By business unit 2/
Consumer/ Private Banking
Institutional Banking
Others
Total (Gross)
46,117
90,586
292
136,995
44,162
88,503
755
133,420
40,047
91,974
763
132,784
By geography 3/
Singapore
Hong Kong
Rest of Greater China
South and South-east Asia
Rest of the world
Total (Gross)
64,184
33,492
11,647
12,020
15,652
136,995
61,713
32,999
11,211
11,726
15,771
133,420
62,520
32,525
10,567
10,820
16,352
132,784
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)
17,098
18,852
34,949
13,617
12,598
16,813
10,397
12,671
136,995
16,239
18,433
33,120
13,335
12,277
16,710
10,873
12,433
133,420
16,946
18,786
29,882
12,426
13,073
16,988
10,346
14,337
132,784
58,238
24,468
33,770
30,876
619
30,257
31,047
2,680
28,367
16,834
2,725
14,109
136,995
56,712
22,489
34,223
30,274
621
29,653
29,449
2,500
26,949
16,985
2,940
14,045
133,420
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
Gross
Less:
Specific allowances
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)
Notes:
1/ Includes customer loans classified as financial assets at fair value through profit or loss on the balance sheet
2/ The business segments have been reaggregated following a review. Historical comparatives have been restated to conform to the current year presentation.
3/ Loans by geography are classified according to where the borrower is incorporated. Historical comparatives have been restated to conform to the current year presentation.
Gross customer loans rose 3% from the previous quarter to
$137.0 billion. Loan growth was more broad-based than
recent quarters as corporate loans expanded in addition to
housing loans.
Loans in Hong Kong rose 2% in local currency terms
from the previous quarter as housing and corporate
loans grew.
12
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NON-PERFORMING ASSETS AND LOSS ALLOWANCE COVERAGE
By business unit
1/
2/
31 Mar 2010
Consumer/ Private
Banking
Institutional Banking
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
31 Dec 2009
Consumer/ Private
Banking
Institutional Banking
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
NPA
($m)
SP
($m)
GP
($m)
NPL
(% of loans)
(GP+SP)/NPA
(%)
(GP+SP)/
unsecured
NPA
(%)
496
190
459
1.1
131
242
3,268
1,637
880
3.6
77
97
3,764
1,827
1,339
2.7
84
111
127
104
99
-
160
187
177
103
250
-
199
219
4,068
2,034
1,688
-
92
119
513
195
440
1.2
124
236
3,363
1,410
885
3.8
68
86
3,876
1,605
1,325
2.9
76
100
160
106
92
-
124
164
183
97
255
-
192
209
4,219
1,808
1,672
-
83
108
615
260
398
1.5
107
198
2,106
855
778
2.3
78
127
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
31 Mar 2009
Consumer/ Private
Banking
Institutional Banking
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
Notes:
1/ Allowances for credit and other losses exclude one-time items
2/ The business segments have been reaggregated following a review. Historical comparatives have been restated to conform to the current year presentation.
13
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By geography
31 Mar 2010
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 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
NPA
($m)
SP
($m)
GP
($m)
NPL
(% of loans)
(GP+SP)/NPA
(%)
(GP+SP)/
unsecured
NPA
(%)
700
540
361
211
308
199
559
335
126
1.1
1.6
3.1
110
119
90
277
180
143
149
72
170
1.2
162
180
2,014
1,037
149
12.9
59
64
3,764
1,827
1,339
2.7
84
111
127
104
99
-
160
187
177
103
250
-
199
219
4,068
2,034
1,688
-
92
119
731
567
352
213
327
213
546
330
121
1.2
1.7
3.1
104
116
95
244
173
143
157
82
174
1.3
163
186
2,069
770
154
13.1
45
49
3,876
1,605
1,325
2.9
76
100
160
106
92
-
124
164
183
97
255
-
192
209
4,219
1,808
1,672
-
83
108
747
860
494
316
381
249
359
324
115
1.2
2.6
4.7
90
82
74
160
152
122
184
72
183
1.7
139
181
436
97
195
2.7
67
101
2,721
1,115
1,176
2.0
84
142
293
251
338
-
201
216
219
54
213
-
122
202
3,233
1,420
1,727
-
97
156
14
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By industry
($m)
31 Mar 2010
31 Dec 2009
31 Mar 2009
NPA
SP
NPA
SP
NPA
SP
697
131
175
459
375
24
27
280
735
89
188
472
386
22
30
238
824
258
214
472
381
44
42
226
290
121
264
97
29
7
Financial institutions, investment &
holding companies
1,649
818
1,738
621
433
141
Professionals & private individuals
(except housing loans)
212
94
234
113
299
151
Manufacturing
Building and construction
Housing loans
General commerce
Transportation, storage &
communications
Others
151
88
156
98
192
123
3,764
127
1,827
104
3,876
160
1,605
106
2,721
293
1,115
251
Contingent liabilities & others
177
103
183
97
219
54
Total non-performing assets
4,068
2,034
1,808
3,233
1,420
By loan classification
($m)
31 Mar 2010
Total non-performing loans
Debt securities
Non-performing assets
Substandard
Doubtful
Loss
Total
Restructured assets
Substandard
Doubtful
Loss
Total
4,219
31 Dec 2009
31 Mar 2009
NPA
SP
NPA
SP
NPA
SP
2,078
1,311
679
4,068
269
1,086
679
2,034
2,155
1,431
633
4,219
195
977
636
1,808
1,931
950
352
3,233
219
849
352
1,420
402
106
34
542
47
86
34
167
389
90
54
533
51
73
54
178
282
61
44
387
61
51
44
156
By collateral type
($m)
31 Mar 2010
31 Dec 2009
31 Mar 2009
NPA
NPA
NPA
3,133
3,233
2,018
Secured non-performing assets by collateral type
Properties
520
540
817
Shares and debentures
Fixed deposits
Others
106
24
285
124
22
300
121
18
259
4,068
4,219
3,233
Unsecured non-performing assets
Total
15
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By period overdue
($m)
31 Mar 2010
31 Dec 2009
31 Mar 2009
NPA
NPA
NPA
Not overdue
180 days overdue
1,653
265
245
1,905
1,802
358
113
1,946
1,107
589
495
1,042
Total
4,068
4,219
3,233
Non-performing loans fell 3% from the previous quarter to
$3.76 billion or 2.7% of the loan portfolio from customer
loan repayments. Forty-one percent of non-performing
assets were still current in interest principal, similar to the
previous quarter.
Allowance coverage rose to 92% of non-performing
assets and to 119% if collateral was considered.
FUNDING SOURCES
($m)
Customer deposits 1/
Interbank liabilities 2/
Other borrowings and liabilities 2/
Shareholders’ funds
Total
31 Mar 2010
31 Dec 2009
31 Mar 2009
181,560
10,382
43,911
26,183
262,036
183,432
9,320
40,519
25,373
258,644
179,818
12,327
57,065
24,042
273,252
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
16
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
31 Mar 2010
31 Dec 2009
31 Mar 2009
104,748
18,691
71,473
13,213
1,371
23,195
12,040
7,526
3,477
152
27,282
14,490
3,412
7,253
2,127
26,335
19,405
2,124
2,485
2,321
181,560
64,626
84,535
26,428
5,971
103,842
20,617
69,160
12,697
1,368
23,625
12,285
7,932
3,254
154
29,018
14,912
3,468
8,846
1,792
26,947
20,441
2,191
2,908
1,407
183,432
68,255
82,751
27,705
4,721
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
Note:
1/ Includes customer deposits classified as financial liabilities at fair value through profit or loss on the balance sheet
Customer deposits fell 1% from the previous quarter to
$181.6 billion as fixed deposits declined. Singapore-dollar
savings deposits continued to increase.
The overall deposit mix improved further during the
quarter as the proportion of savings accounts increased.
OTHER BORROWINGS & LIABILITIES
($m)
Subordinated term debts1/
Other debt securities in issue
Due within 1 year
Due after 1 year
Comprising:
2/
Secured
Unsecured
Others
Total
31 Mar 2010
31 Dec 2009
31 Mar 2009
7,662
7,702
9,539
248
331
44
369
310
502
579
35,670
43,911
75
338
32,404
40,519
419
393
46,714
57,065
Notes:
1/ All subordinated term debts issued are unsecured
2/ These are mainly secured by properties and securities
17
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 April 2009 to 31 March 2010. The Group’s
trading book VaR methodology is based on Historical Simulation VaR.
($m)
1 April 2009 to 31 March 2010
Average
High
Low
As at 31 March 2010
Total
28
32
52
19
The charts below provide the range of VaR and the daily distribution of trading income in the trading portfolio for the
period from 1 April 2009 to 31 March 2010.
DBSH Gr o u p Va R f o r T r a d in g Bo o k
25
No. of Day s
20
15
10
5
> 47- 48
> 48- 49
> 49- 50
> 50- 51
> 51- 52
> 52- 53
> 36- 37
> 37- 38
> 38- 39
> 39- 40
> 40- 41
> 41- 42
> 42- 43
> 43- 44
> 44- 45
> 45- 46
> 46- 47
> 25- 26
> 26- 27
> 27- 28
> 28- 29
> 29- 30
> 30- 31
> 31- 32
> 32- 33
> 33- 34
> 34- 35
> 35- 36
> 19- 20
> 20- 21
> 21- 22
> 22- 23
> 23- 24
> 24- 25
0
VaR ( S$ 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 Treasury & Markets Group Trading Income
(1 Apr 2009 to 31 Mar 2010)
40
35
25
20
15
10
5
>28-30
>24-26
>20-22
>16-18
>12-14
>8-10
>4-6
>0-2
>(4)-(2)
>(8)-(6)
>(12)-(10)
>(16)-(14)
>(20)-(18)
>(24)-(22)
>(28)-(26)
>(32)-(30)
>(36)-(34)
>(40)-(38)
0
>(44)-(42)
No. of days
30
Trading income (S$ million)
18
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CAPITAL ADEQUACY
($m)
Tier 1
Share capital
Disclosed reserves and others
Less: Tier 1 Deductions
Eligible Tier 1
Tier 2
Loan allowances admitted as Tier 2
Subordinated debts
Revaluation surplus from equity securities
Less: Tier 2 Deductions
Total eligible capital
Risk-weighted assets
Capital adequacy ratio (%)
Tier 1 ratio
Tier 2 ratio
Total (Tier 1 & 2) ratio
31 Mar 2010
31 Dec 2009
31 Mar 2009
8,440
21,194
(6,084)
23,550
8,435
20,928
(6,098)
23,265
8,423
20,429
(6,034)
22,818
662
5,955
102
(142)
30,127
175,850
434
5,970
87
(128)
29,628
177,222
734
6,901
16
(112)
30,357
181,875
13.4
3.7
17.1
13.1
3.6
16.7
12.5
4.2
16.7
The Group’s capital adequacy ratio increased from 16.7% in the previous quarter to 17.1% due to profits for the quarter and
a reduction in risk-weighted assets.
UNREALISED VALUATION SURPLUS/(LOSSES)
($m)
Properties
Financial investments
Total
31 Mar 2010
31 Dec 2009
31 Mar 2009
499
73
572
511
119
630
513
(321)
192
The amount of unrealised valuation surplus decreased from $630 million in the previous quarter to $572 million mainly due to
disposal of financial investments.
19
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Consolidated Income Statement
1st Qtr
2010
1st Qtr
2009
+/(-)
%
4th Qtr
2009
+/(-)
%
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
1,372
306
1,066
341
260
(30)
50
26
1,655
579
1,076
317
204
(54)
106
13
(17)
(47)
(1)
8
27
44
(53)
100
1,437
310
1,127
358
179
(124)
3
29
(5)
(1)
(5)
(5)
45
76
>100
(10)
Total income
1,713
1,662
3
1,572
9
338
48
316
355
327
41
270
437
3
17
17
(19)
313
48
339
384
8
(7)
(8)
1,057
1,075
(2)
1,084
(2)
Profit
Share of profits of associates
Profit before tax
656
22
678
587
20
607
12
10
12
488
6
494
34
>100
37
Income tax expense
Net profit
89
589
115
492
(23)
20
(47)
541
NM
9
532
57
589
433
59
492
23
(3)
20
493
48
541
8
19
9
1st Qtr
2010
1st Qtr
2009
+/(-)
%
4th Qtr
2009
+/(-)
%
589
492
20
541
9
In $ millions
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
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 due to impairment
Transferred to income statement on sale
Tax on items taken directly to or transferred from equity
Other comprehensive income, net of tax
31
(3)
135
6
(77)
NM
(4)
2
NM
NM
230
23
(22)
259
(392)
(112)
46
(317)
NM
NM
NM
NM
32
(31)
(15)
(16)
>100
NM
(47)
NM
Total comprehensive income
848
175
>100
525
62
795
53
848
27
148
175
>100
(64)
>100
490
35
525
62
51
62
Attributable to:
Shareholders
Minority interests
20
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Balance Sheets
31 Mar
2010
GROUP
31 Dec
2009 1/
31 Mar
2009
31 Mar
2010
COMPANY
31 Dec
2009 1/
31 Mar
2009
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 fair 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
29,273
13,967
15,850
13,133
15,588
133,268
22,695
1,596
687
5,820
1,087
409
118
8,545
22,515
15,960
22,203
11,257
16,015
129,973
25,731
784
672
5,847
1,134
398
144
6,011
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
9,713
9,698
10,959
65
93
99
TOTAL ASSETS
262,036
258,644
273,252
9,778
9,791
11,058
Due to banks
Due to non-bank customers
Financial liabilities at fair value through profit or loss 3/
Negative fair values for financial derivatives
Bills payable
Current tax liabilities
Deferred tax liabilities
Other liabilities
Other debt securities in issue
Subordinated term debts
10,081
176,309
10,340
15,300
761
816
52
9,816
579
7,662
9,108
178,448
9,217
16,406
501
807
54
6,489
413
7,702
11,839
174,914
9,492
29,406
870
822
46
7,183
812
9,539
5
5
3
TOTAL LIABILITIES
231,716
229,145
244,923
5
5
3
30,320
29,499
28,329
9,773
9,786
11,055
Share capital
Treasury shares
Other reserves
Revenue reserves
8,440
(86)
7,124
10,705
8,435
(114)
6,879
10,173
8,423
(120)
5,870
9,869
8,440
53
1,280
8,435
71
1,280
8,423
43
2,589
SHAREHOLDERS’ FUNDS
26,183
25,373
24,042
9,773
9,786
11,055
Minority interests
4,137
4,126
4,287
TOTAL EQUITY
30,320
29,499
28,329
9,773
9,786
11,055
102,741
1,458,464
98,207
1,396,855
99,438
1,697,178
4.17
4.18
4.74
4.10
4.11
4.64
In $ millions
ASSETS
LIABILITIES
NET ASSETS
EQUITY
OFF BALANCE SHEET ITEMS
Contingent liabilities and commitments
Financial derivatives
OTHER INFORMATION
Net asset value per ordinary share ($)
(i) Based on existing ordinary share capital
(ii) Assuming conversion of outstanding preference
shares to ordinary shares
Notes:
1/ Audited
2/ Includes customer loans, interbank assets, other government securities and treasury bills, corporate debt securities and equity securities
3/ Includes customer deposits, interbank liabilities, other debt securities in issue and other financial liabilities
21
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Consolidated Statement of Changes in Equity
GROUP
In $ millions
Balance at 1 January 2010
Ordinary
shares
8,188
Exercise of share options
4
Reclassification of reserves upon exercise of
share options
1
Convertible
preference
shares
Treasury
shares
Other
reserves
Revenue
reserves
Total
Minority
interests
Total equity
247
(114)
6,879
10,173
25,373
4,126
29,499
Cost of share-based payments
Draw-down of reserves upon vesting of
28
performance shares
4
4
(1)
-
-
11
11
11
(28)
-
-
Dividends paid to minority interests
Total comprehensive income
263
532
795
(42)
(42)
53
848
Balance at 31 March 2010
8,193
247
(86)
7,124
10,705
26,183
4,137
30,320
Balance at 1 January 2009
4,149
66
(154)
6,322
9,436
19,819
4,184
24,003
Cost of share-based payments
9
9
9
Draw-down of reserves upon vesting of
55
performance shares
Purchase of Treasury shares
Issue of shares
Share issues expenses
(55)
(21)
4,029
181
(2)
-
-
(21)
(21)
4,210
4,210
(2)
Dividends paid to minority interests
Total comprehensive income
Balance at 31 March 2009
8,176
247
(120)
(2)
(45)
(45)
(406)
433
27
148
175
5,870
9,869
24,042
4,287
28,329
22
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Statement of Changes in Equity
COMPANY
In $ millions
Balance at 1 January 2010
Ordinary
shares
8,188
Exercise of share options
4
Reclassification of reserves upon exercise of share options
1
Convertible
preference
shares
247
Treasury
shares
Other
reserves
-
Cost of share-based payments
Draw-down of reserves upon vesting of performance shares
71
Revenue
reserves
1,280
Total equity
9,786
4
(1)
-
11
11
(28)
(28)
Balance at 31 March 2010
8,193
247
-
53
1,280
9,773
Balance at 1 January 2009
4,149
66
-
89
9
2,590
6,894
Cost of share-based payments
Issue of shares
Share issues expense
4,029
(55)
181
4,210
(2)
(2)
Total comprehensive income
Balance at 31 March 2009
9
(55)
Draw-down of reserves upon vesting of performance shares
8,176
247
-
43
(1)
(1)
2,589
11,055
23
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Consolidated Cash Flow Statement
In $ millions
1st Qtr
2010
1st Qtr
2009
Cash flows from operating activities
Net profit for the year
589
Adjustments for non-cash items:
Allowances for credit and other losses
Depreciation of properties and other fixed assets
Share of profits of associates
Net gain on disposal of properties and other fixed assets
Net gain on disposal of financial investments
Income tax expense
Profit before changes in operating assets & liabilities
355
48
(22)
(14)
(50)
89
995
437
41
(20)
(106)
115
959
Increase/(Decrease) in:
Due to banks
Due to non-bank customers
Financial liabilities at fair value through profit or loss
Other liabilities including bills payable
Debt securities and borrowings
973
(2,139)
1,123
2,863
(253)
2,818
11,555
(1,790)
(554)
131
(Increase)/Decrease in:
Change in restricted balances with central banks
Singapore Government securities and treasury bills
Due from banks
Financial assets at fair value through profit or loss
Loans and advances to customers
Financial investments
Other assets
(1,161)
1,993
6,355
(1,876)
(3,636)
3,081
(2,663)
(447)
485
(7,864)
(1,489)
(4,460)
(2,215)
837
(78)
(73)
Tax paid
Net cash generated from / (used in) operating activities (1)
Cash flows from investing activities
Dividends from associates
Purchase of properties and other fixed assets
Proceeds from disposal of properties and other fixed assets
Net cash generated from / (used in) investing activities (2)
492
5,577
(2,107)
18
(18)
22
19
(49)
4
22
(26)
Cash flows from financing activities
Increase in share capital and share premium
Purchase of treasury shares
Dividends paid to minority interests
5
(42)
4,208
(21)
(45)
Net cash (used in) / generated from financing activities (3)
Exchange translation adjustments (4)
(37)
35
4,142
46
Net change in cash and cash equivalents (1)+(2)+(3)+(4)
Cash and cash equivalents at 1 January
Cash and cash equivalents at 31 March
5,597
19,281
24,878
2,055
12,678
14,733
24
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Additional Information
ISSUANCE OF ORDINARY SHARES
(a)
The movement in the number of issued and fully paid-up ordinary shares for the first quarter ended 31 March 2010 is
as follows:
At 1 January 2010
Exercise of share options pursuant to the DBSH Share Option Plan
At 31 March 2010
2,282,452,288
344,376
2,282,796,664
Weighted average number of shares for first quarter 2010
- ordinary shares
- fully diluted
2,282,694,950
2,384,440,864
The fully diluted shares took into account the effect of a full conversion of non-voting convertible preference shares
(CPS) and non-voting redeemable CPS, and the exercise of all outstanding share options granted to employees when
such shares would be issued to a price lower than the average share price during the period.
(b)
New ordinary shares that would have been issued on conversion of preference shares and exercise of share option
are as follows:
31 Mar 2010
31 Dec 2009
31 Mar 2009
(Number)
180,654
180,654
180,654
Conversion of non-voting CPS
99,713,061
99,713,061
99,713,061
Conversion of non-voting redeemable CPS
14,653,519
14,898,637
16,844,741
Exercise of share options
(c)
The movement in the number of treasury shares for the first quarter ended 31 March 2010 is as follows:
7,784,454
At 1 January 2010
(1,863,122)
Vesting of performance shares
5,921,332
At 31 March 2010
ADOPTION OF NEW OR REVISED FRS AND INT FRS
FRS 27: Consolidated and Separate Financial Statements
The standard requires the effects of all transactions with non-controlling interests to be recorded in equity if there is no change
in control. Such transactions will have no impact on goodwill, nor will it give rise to a gain or loss. The standard also specifies
the accounting when control is lost. Any remaining interest in the entity is re-measured to fair value, and a gain or loss is
recognised in profit or loss.
The changes introduced by FRS 27 must be applied prospectively and will affect future transactions with non-controlling
interests.
FRS 103: Business Combination
The revised FRS 103 becomes effective for financial years beginning on or after 1 January 2010. It introduces a