financial performance 3Q08

DBS Group Holdings Ltd
Incorporated in the Republic of Singapore
Company Registration Number: 199901152M

To: Shareholders

The DBS Group Holdings Ltd (“DBSH” or “the Company”) Board of Directors report unaudited financial
results for the third quarter ended 30 September 2008.
For the third quarter of 2008, the Directors have declared an interim one-tier tax-exempt dividend of 20
cents (third quarter 2007: 20 cents less 18% tax) for each DBSH ordinary share.
The third quarter 2008 dividend will be payable on 4 December 2008. The DBSH shares will be quoted
ex-dividend on 19 November 2008. Notice is hereby given that the Share Transfer Books and Register
of Members of the Company will be closed on 24 November 2008. 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 21 November 2008 will be registered to determine
shareholders' entitlement to the third quarter 2008 dividend. In respect of ordinary shares in the
securities accounts with The Central Depository (Pte) Limited (“CDP”), the third quarter 2008 dividend
will be paid by DBSH to CDP, which will in turn distribute the dividend entitlements to shareholders.

By order of the Board
Linda Hoon

Group Secretary
6 November 2008
Singapore
More information on the above announcement is available at www.dbs.com/investor

Performance Summary
Unaudited Financial Results
For the Third Quarter ended
30 September 2008

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 Unit
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 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
Amendments to FRS 39 Financial Instruments: Recognition and Measurement and
FRS 107 Financial Instruments: Disclosures – Reclassification of Financial Assets
Disclosure on Certain Financial Instruments
Confirmation by the Board

Page

2
4
6
6
7
7
8
10
12
13
17
18

18
19
20
20
21
22
23
24
25
26
26
27
28
30

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 2007, with the exception of the adoption of new or revised FRS and
Interpretations to FRS (“INT FRS”).
On 1 January 2008, the Group adopted the new or revised INT FRS, which are issued by the Accounting Standard Council
(“ASC”), that are relevant for the Group.
• INT FRS 111: FRS 102 – Group and Treasury Share Transactions
• INT FRS 114: FRS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction
Arising from the recent amendments by the International Accounting Standards Board (IASB) to FRS 39 Financial Instruments:
Recognition and Measurement and FRS 107 Financial Instruments: Disclosures – Reclassification of Financial Assets, the
Group has reclassified some financial assets from the “Held for Trading” (HFT) to the “Available for Sale” (AFS) category.
Additional disclosures on these financial assets are on page 27.
The Group has also initiated a review process which could result in the reclassification of certain financial assets from the AFS
to the “Loans & Receivables” category. The financial impact of this review, should it result in any reclassification, will be
reflected in the Fourth Quarter 2008 results announcement.

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
2/
One-time items
Net profit including one-time items

Selected balance sheet items ($m)
Customer loans 3/
Interbank assets 4/
Total assets
5/
Customer deposits
Total liabilities

Shareholders’ funds

3rd Qtr
2008

3rd Qtr
2007 1/

% chg

2nd Qtr
2008

% chg

9 Mths
2008

9 Mths
2007 1/


% chg

1,071
316
11
1,398
578
820

1,048
403
86
1,537
652
885

2
(22)
(87)

(9)
(11)
(7)

1,058
342
199
1,599
687
912

1
(8)
(94)
(13)
(16)
(10)

3,186
1,011

363
4,560
1,921
2,639

3,049
1,083
498
4,630
1,970
2,660

4
(7)
(27)
(2)
(2)
(1)

319


80

>100

56

>100

515

249

>100

522
402
(23)
379

832
648
(38)
610

(37)
(38)
39
(38)

877
668
(16)
652

(40)
(40)
44
(42)

2,189
1,673
(39)
1,634

2,489
1,929
(142)
1,787

(12)
(13)
73
(9)

127,541
29,592
260,241
166,448
235,908
20,141

104,714
32,478
230,577
144,185
207,548
20,311

22
(9)
13
15
14
(1)

118,615
30,535
248,688
158,726
224,300
20,284

8
(3)
5
5

127,541
29,592
260,241
166,448
235,908
20,141

104,714
32,478
230,577
144,185
207,548
20,311

22
(9)
13
15
14
(1)

5
(1)

2

DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES

Key financial ratios (%) (excluding
one-time items) 6/
Net interest margin
Non-interest/total income
Cost/income ratio
Return on assets
7/
Return on equity
Loan/deposit ratio
NPL ratio
Specific allowances (loans)/average
loans (bp)
Tier 1 capital adequacy ratio
Total capital adequacy ratio
Per share data ($)
Per basic share
– earnings excluding one-time items
and goodwill charges
– earnings
7/
– net book value
Per diluted share
– earnings excluding one-time items
and goodwill charges
– earnings
– net book value 7/

3rd Qtr
2008

3rd Qtr
2007

2nd Qtr
2008

9 Mths
2008

9 Mths
2007

1.99
23.4
41.3
0.63
7.93
76.6
1.3

2.14
31.8
42.4
1.14
12.96
72.6
1.2

2.04
33.8
43.0
1.07
13.00
74.7
1.4

2.04
30.1
42.1
0.90
10.91
76.6
1.3

2.19
34.1
42.5
1.20
13.21
72.6
1.2

34

11

18

22

10

9.7
13.4

9.2
14.0

10.0
13.8

9.7
13.4

9.2
14.0

1.05

1.70

1.76

1.46

1.69

1.03
12.95

1.68
13.10

1.74
13.05

1.44
12.95

1.60
13.10

1.01

1.63

1.69

1.41

1.62

1.00
12.69

1.61
12.82

1.68
12.78

1.38
12.69

1.53
12.82

Notes:
1/ Figures have been reclassified to make them consistent with the current period’s presentation
2/ One-time items include impairment charges for Thai investment, gains on sale of office buildings in Hong Kong and allowance write-back for a Singapore property
3/ Includes customer loans classified as financial assets at fair value through profit or loss on the balance sheet
4/ Includes interbank assets classified as financial assets at fair value through profit or loss on the balance sheet
5/ Includes customer deposits classified as financial liabilities at fair value through profit or loss on the balance sheet
6/ Return on assets, return on equity, specific allowances (loan)/average loan and per share data for the quarters are computed on an annualised basis
7/ Minority interests are not included as equity in the computation of net book value and return on equity
NM Not Meaningful

Third-quarter net profit amounted to $402 million, 40%
lower than the previous quarter and 38% below a year
ago. Revenues fell 13% from the previous quarter to
$1.40 billion as dislocations in financial markets
affected market-related income streams. General and
specific allowances were also higher. The results
included a $70 million charge set aside for
compensation to certain customers who bought
Lehman-exposed investments.
Net interest income rose 1% from the previous quarter
to $1.07 billion as loans rose 8%, more than offsetting
the impact of a five basis point decline in interest
margins to 1.99%. Fee income outside of capital market
activities was little changed from the previous quarter
and was higher than a year ago.
Total fee income, however, fell 8% from the previous
quarter and 22% from a year ago to $316 million due to
significant declines in market-related fee income
streams. A weaker trading performance reduced other
non-interest income to $11 million from $199 million in
the previous quarter.
Partially offsetting the lower revenues was a 16%
reduction in expenses to $578 million as wage bonus
accruals fell. The cost-income ratio of 41% improved
from the 43% in the previous quarter.

The amount of non-performing loans was little changed
from the previous quarter at $1.69 billion, with the NPL
rate also little changed at 1.3%. Specific allowances for
loans, however, rose to 34 basis points from 18 basis
points in the previous quarter, with the biggest increase
due to NPLs to individuals for equity market financing.
General allowances were also increased to further
strengthen the balance sheet against increased
macroeconomic uncertainties. These additional
allowances enabled the coverage for non-asset-backed
CDOs to be raised from 6% previously to 25%.
Total cumulative allowances amounted to 123% of nonperforming assets from 116% in the previous quarter.
Return on assets was 0.63% compared to 1.14% a year
ago and 1.07% in the previous quarter. Return on
equity fell to 7.9% from 13.0% a year ago as well as the
previous quarter.
There was a separate impairment charge of $23 million
for the group’s investment in TMB Bank which, if
included, would bring net earnings to $379 million.
For the nine months, net profit excluding one-time
items fell 13% from a year ago to $1.67 billion, with
return on equity declining from 13.2% to 10.9%.

3

DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET INTEREST INCOME

Average balance
sheet

3rd Qtr 2008
Average
Average
rate
balance Interest
(%)
($m)
($m)

3rd Qtr 2007
Average
Average
rate
balance Interest
(%)
($m)
($m)

2nd Qtr 2008
Average
Average
rate
balance Interest
(%)
($m)
($m)

Interest-bearing
assets
Customer loans
Interbank assets
Securities
Total

122,205
41,233
50,841
214,279

1,254
243
528
2,025

4.08
2.35
4.13
3.76

100,608
39,693
54,344
194,645

1,405
344
613
2,362

5.54
3.44
4.47
4.81

113,462
41,293
53,628
208,383

1,154
262
519
1,935

4.09
2.54
3.89
3.73

Interest-bearing
liabilities
Customer deposits
Other borrowings
Total

162,150
40,429
202,579

582
372
954

1.43
3.66
1.87

142,616
42,880
185,496

777
537
1,314

2.16
4.97
2.81

157,807
40,799
198,606

487
390
877

1.24
3.84
1.77

1,071

1.99

1,048

2.14

1,058

2.04

Net interest
1/
income/margin

9 Mths 2008
Average balance
sheet

Average
balance
($m)

9 Mths 2007

Average Average
Interest
rate balance
($m)
(%)
($m)

Interest
($m)

Average
rate
(%)

Interest-bearing
assets
Customer loans
Interbank assets
Securities
Total

115,474
40,385
52,765
208,624

3,716
763
1,628
6,107

4.30
2.52
4.12
3.91

94,823
37,005
54,155
185,983

3,975
948
1,815
6,738

5.61
3.43
4.48
4.84

Interest-bearing
liabilities
Customer deposits
Other borrowings
Total

158,151
40,242
198,393

1,742
1,179
2,921

1.47
3.91
1.97

138,882
37,789
176,671

2,277
1,412
3,689

2.19
5.00
2.79

3,186

2.04

3,049

2.19

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 rose 1% from the previous quarter
and 2% from a year ago to $1.07 billion due to higher
asset volumes, particularly customer loans. The benefit
was partially offset by lower interest margins as asset
yields rose less than liability costs.
While customer loan yields were stable and securities
yields were higher compared to the previous quarter,
interbank assets yields declined as tenors were
shortened as part of the group’s liquidity risk
management.

Customer deposit costs rose from the previous quarter
as the deposit mix shifted towards higher-yielding
foreign currencies during the quarter. Deposit costs in
Hong Kong also rose.
For the nine months, net interest income rose 4% to
$3.19 billion as the impact of higher asset volumes was
partially offset by lower interest margins.

4

DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
3rd Qtr 2008 versus 3rd Qtr 2007
Volume and rate analysis ($m)
Increase/(decrease) due to change in

3rd Qtr 2008 versus 2nd Qtr 2008

Volume

Rate

Net
change

Volume

Rate

Net
change

Customer loans
Interbank assets
Securities

301
13
(40)

(453)
(114)
(45)

(152)
(101)
(85)

89
(27)

(3)
(20)
30

86
(20)
3

Total

274

(612)

(338)

62

7

69

Interest expense
Customer deposits
Other borrowings
Total

106
(35)
71

(302)
(130)
(432)

(196)
(165)
(361)

13
(4)
9

76
(18)
58

89
(22)
67

Net impact on interest income

203

(180)

23

53

(51)

2

Interest income

Due to change in number of days
Net Interest Income

-

11

23

13

9 Mths 2008 versus 9 Mths 2007
Volume and rate analysis ($m)
Increase/(decrease) due to change in

Volume

Rate

Net
change

Customer loans
Interbank assets
Securities
Total

866
87
(46)
907

(1,139)
(276)
(146)
(1,561)

(273)
(189)
(192)
(654)

Interest expense
Customer deposits
Other borrowings
Total

316
106
422

(858)
(344)
(1,202)

(542)
(238)
(780)

Net impact on interest income

485

(359)

126

Interest income

Due to change in number of days
Net Interest Income

11
137

5

DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET FEE AND COMMISSION INCOME
($m)
Stockbroking
Investment banking
Trade and remittances
Loan related
Guarantees
Deposit related
Credit card
Fund management
Wealth management
Others
Total

3rd Qtr
2008

3rd Qtr
2007

% chg

2nd Qtr
2008

9 Mths
2008

9 Mths
2007

% chg

31
20
61
77
13
19
38
4
35
18
316

72
57
52
66
9
20
36
10
64
17
403

(57)
(65)
17
17
44
(5)
6
(60)
(45)
6
(22)

39
25
56
82
14
22
38
9
45
12
342

120
74
169
249
38
60
107
27
120
47
1,011

183
134
150
179
26
61
98
32
179
41
1,083

(34)
(45)
13
39
46
(2)
9
(16)
(33)
15
(7)

Revenues from other fee income segments was little
changed from the previous quarter and rose 10% from a
year ago.

Net fee and commission income fell 8% from the
previous quarter and 22% from a year ago to $316
million due to significantly lower contributions from
capital market activities. Stockbroking, investment
banking and wealth management revenues decreased
21% from the previous quarter and 55% from a year
ago.

For the nine months, net fee income declined 7% to
$1.01 billion as lower contributions from capital market
activities were partially offset by stronger revenues from
other areas such as loan syndication and trade and
remittances.

OTHER NON-INTEREST INCOME
($m)

3rd Qtr
2008

3rd Qtr
2007 1/

% chg

2nd Qtr
2008

9 Mths
2008

9 Mths
2007 1/

% chg

Net trading (loss)/income

(281)

(63)

(>100)

111

(331)

205

NM

From trading businesses
From other businesses
Net income/(loss) from financial instruments
designated at fair value
Net income on financial investments
Net gain on fixed assets 2/

(303)
22

(47)
(16)

(>100)
NM

88
23

(367)
36

222
(17)

NM
NM

268

5

>100

26

379

(90)

NM

3
2

128
2

(98)
-

49
-

263
5

346
6

(24)
(17)

Others (include rental income)

19

14

36

13

47

31

52

Total

11

86

(87)

199

363

498

(27)

Notes:
1/ Figures have been reclassified to make them consistent with the current period’s presentation
2/ Exclude one-time items
NM Not Meaningful

Trading activities (including financial instruments
designated at fair value) recorded a loss of $13 million
and included net losses related to the unwinding of
Lehman-exposed investment products. The trading
results included $74 million of gains from the
reclassification of certain trading assets as available-forsale investment securities in line with recent
amendments to accounting standards.

Net income from the sale of financial investments fell to
$3 million, significantly below both comparative periods
when conditions were conducive for profit taking on
equity investments.
For the nine months, trading activities recorded a gain of
$48 million compared to a gain of $115 million a year
ago. Net income from the sale of financial investments
was also lower, falling 24% to $263 million.

6

DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
EXPENSES
($m)

3rd Qtr
2008

3rd Qtr
2007

% chg

2nd Qtr
2008

9 Mths
2008

9 Mths
2007

% chg

Staff
Occupancy
Computerisation
Revenue-related
Others
Total
Staff headcount at period-end

188
66
115
38
171
578
15,591

347
53
106
38
108
652
13,842

(46)
25
8
58
(11)
13

370
61
109
40
107
687
15,219

910
185
326
112
388
1,921
15,591

1,061
157
329
98
325
1,970
13,842

(14)
18
(1)
14
19
(2)
13

42
1

32
#

31
NM

37
1

113
3

94
1

20
>100

1

2

(50)

2

5

5

-

Included in the above table were:
Depreciation of properties and other
fixed assets
Director’s fees
Audit fees payable
# Amount under $500,000
NM Not Meaningful

Expenses fell 16% from the previous quarter and 11%
from a year ago to $578 million through disciplined
management of controllable expenses.

Non-staff costs rose 23% from the previous quarter and
28% from a year ago due to a $70 million charge for
compensation to certain structured investment
customers.

Staff costs fell 49% from the previous quarter and 46%
from a year ago to $188 million as bonus accruals fell.
Headcount rose 2% from the previous quarter, with all of
the increase coming from outside Singapore and Hong
Kong.

For the nine months, expenses fell 2% to $1.92 billion
mainly due to lower wage costs. The decrease was in
line with revenues, leaving the cost-income ratio little
changed at 42%.

ALLOWANCES FOR CREDIT AND OTHER LOSSES
($m)

3rd Qtr
2008

3rd Qtr
2007

% chg

2nd Qtr
2008

9 Mths
2008

9 Mths
2007

% chg

General allowances (GP)

129

10

>100

(31)

188

136

38

Specific allowances (SP) for loans
Singapore
Hong Kong
Other countries

106
31
58
17

28
(8)
17
19

>100
NM
>100
(11)

52
9
37
6

195
63
110
22

76
(17)
54
39

>100
NM
>100
(44)

84

42

100

35

132

37

>100

319

80

>100

56

515

249

>100

Specific allowances (SP) for securities, properties
and other assets 1/
Total
Note:
1/ Exclude one-time items
NM Not Meaningful

Specific allowances for loans rose from $52 million in the
previous quarter to $106 million. Half of the increase was
due to charges for equity financing to individuals in
Singapore and Hong Kong. Charges for SMEs in Hong
Kong and corporates in other countries also rose.

General allowances of $129 million were taken to increase
the coverage of non-asset-backed CDO investments to
25%. General allowances for loans were not taken during
the quarter as existing allowances continued to be
adequate for total loan exposures net of collateral.

Specific allowances for other assets increased from $35
million in the previous quarter to $84 million and was for
investments in debt securities issued by certain US and
European financial institutions. The amounts represented
substantially all of the exposure to these institutions.

For the nine months, total allowances more than doubled
to $515 million, with specific allowances for loans and
securities accounting for most of the increase.

7

DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES

PERFORMANCE BY BUSINESS UNIT
($m)
CBG

EB

CIB

GFM

CTU

Central
Ops

Total

Selected income items
1/
3rd Qtr 2008
Net interest income
Non-interest income
Expenses
Allowances for credit and other losses
Profit before tax

269
152
353
14
54

190
99
101
60
128

231
133
102
106
156

262
(40)
132
26
66

177
(40)
12
201
(76)

(58)
23
(122)
(88)
194

1,071
327
578
319
522

2nd Qtr 2008 1/
Net interest income
Non-interest income
Expenses
Allowances for credit and other losses
Profit before tax

292
174
276
11
179

189
102
96
31
164

219
162
103
(6)
284

294
60
154
1
197

164
(54)
8
5
97

(100)
97
50
14
(44)

1,058
541
687
56
877

3rd Qtr 2007 1/
Net interest income
Non-interest income
Expenses
Allowances for credit and other losses
Profit before tax

427
182
278
5
326

195
89
92
19
173

188
134
105
82
135

254
(66)
108
1
81

95
(6)
6
68
15

(111)
156
63
(95)
102

1,048
489
652
80
832

887
487
884
31
459

568
321
291
105
493

656
454
303
177
630

881
0
418
50
415

472
(54)
33
219
166

(278)
166
(8)
(67)
26

3,186
1,374
1,921
515
2,189

1,300
501
802
19
980

590
298
270
82
536

518
514
295
161
576

670
53
361
5
368

251
4
26
68
161

(280)
211
216
(86)
(132)

3,049
1,581
1,970
249
2,489

Selected balance sheet and other
items
30 Sept 2008
Total assets before goodwill
Total liabilities
Capital expenditure for 3rd Qtr 2008
Depreciation for 3rd Qtr 2008

35,575
90,899
9
10

29,281
25,898
2
-

67,948
34,090
6
2

88,389
56,088
11
3

28,336
1,890
-

4,865
27,043
39
27

254,394
235,908
67
42

30 Jun 2008
Total assets before goodwill
Total liabilities
Capital expenditure for 2nd Qtr 2008
Depreciation for 2nd Qtr 2008

34,214
88,978
21
8

26,424
22,842
1

64,263
31,795
1
1

85,560
52,895
3
3

27,980
1,582
-

4,409
26,208
139
24

242,850
224,300
164
37

9 Mths 2008 1/
Net interest income
Non-interest income
Expenses
Allowances for credit and other losses
Profit before tax
9 Mths 2007 1/
Net interest income
Non-interest income
Expenses
Allowances for credit and other losses
Profit before tax

Note:
1/ Allowances for credit and other losses and profits exclude one-time items

8

DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES

($m)
CBG

EB

CIB

GFM

CTU

Central
Ops

Total

31 Dec 2007
Total assets before goodwill
Total liabilities
Capital expenditure for 4th Qtr 2007
Depreciation for 4th Qtr 2007

32,148
83,171
27
6

22,738
21,311
1
1

56,569
30,733
3
2

84,444
47,667
4
3

27,930
1,458
-

3,920
26,093
42
20

227,749
210,433
77
32

30 Sept 2007
Total assets before goodwill
Total liabilities
Capital expenditure for 3rd Qtr 2007
Depreciation for 3rd Qtr 2007

32,116
80,457
11
6

22,599
20,122
1
1

52,061
24,809
1
2

86,083
53,119
2
3

28,007
1,791
-

3,868
27,250
38
20

224,734
207,548
53
32

Consumer Banking’s (CBG) net interest income fell
from both the previous quarter and a year ago due to
lower deposit and loan margins despite higher
deposit volumes. Non-interest income was also
lower than both comparative periods from lower
wealth management sales. The increase in
expenses from both comparative periods was due to
operating costs, including a $70 million charge for
compensation to certain structured investment
customers. Allowances were higher due to specific
allowances.
Enterprise Banking’s (EB) net interest income was
stable from the previous quarter as loan growth was
offset by lower Hong Kong loan margins. Non-interest
income was little changed from the previous quarter
but rose from a year ago as fee-based activities
increased. Higher operating costs accounted for the
increase in expenses from the previous quarter and a
year ago. The increase in allowances from both
comparative periods was due to higher general
allowances and Hong Kong specific allowances.

due to higher loan volumes. Loan margins were higher
than a year ago but offset by lower deposit margins.
Non-interest income was lower than the previous
quarter due to a decline in capital market activities.
Expenses were stable compared to both earlier
periods. Higher general allowances accounted for most
of the increase in total allowances from the previous
quarter (when there had been a general allowance
write-back) while specific allowances were higher than
a year ago.
Global Financial Markets’ (GFM) non-interest income
recorded a loss from credit market activities. Expenses
fell from the previous quarter due to lower staff costs.
Central Treasury Unit (CTU) manages the Group’s
asset and liability interest rate positions as well as its
investments. Central Operations encompasses a range
of activities from corporate decisions and income and
expenses not attributed to other business segments.
Asset management and private banking activities are
included in this segment.

Corporate and Investment Banking’s (CIB) net interest
income rose from the previous quarter and a year ago

9

DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY GEOGRAPHY
($m)
S’pore

Hong
Kong

Rest of
Greater
China

South
and
Southeast Asia

Rest of
world

Total

696
188
286
214
394

213
109
170
62
90

86
7
65
18
13

41
21
42
17
11

35
2
15
8
14

1,071
327
578
319
522

709
275
412
11
563

214
138
175
40
137

66
17
39
2
51

38
75
44
(2)
81

31
36
17
5
45

1,058
541
687
56
877

3rd Qtr 2007
Net interest income
Non-interest income
Expenses
Allowances for credit and other losses

693
303
398
23

265
136
176
26

23
24
29
6

50
14
35
28

17
12
14
(3)

1,048
489
652
80

Profit before tax

581

199

18

16

18

832

Selected income items
1/

3rd Qtr 2008
Net interest income
Non-interest income
Expenses
Allowances for credit and other losses
Profit before tax
1/

2nd Qtr 2008
Net interest income
Non-interest income
Expenses
Allowances for credit and other losses
Profit before tax
1/

9 Mths 2008 1/
Net interest income
Non-interest income
Expenses
Allowances for credit and other losses
Profit before tax

2,126
710
1,099
322
1,430

652
424
518
121
437

193
60
138
32
97

120
136
120
22
150

95
44
46
18
75

3,186
1,374
1,921
515
2,189

9 Mths 2007 1/
Net interest income
Non-interest income
Expenses
Allowances for credit and other losses
Profit before tax

2,013
963
1,240
74
1,683

813
398
509
69
633

65
80
79
27
45

107
100
100
55
103

51
40
42
24
25

3,049
1,581
1,970
249
2,489

16,717
16,115
10,905
10,045

10,502
10,059
8,199
7,631

12,790
12,097
11,519
10,515

254,394
242,850
227,749
224,734

Total assets before goodwill
30 Sept 2008
30 Jun 2008
31 Dec 2007
30 Sept 2007

165,603
159,295
149,462
146,606

48,782
45,284
47,664
49,937

Note:
1/ Allowances for credit and other losses and profits exclude one-time items

10

DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Singapore

Hong Kong

Net interest income was lower than the previous quarter
as the benefit of higher asset volumes was more than
offset by lower margins. Non-interest income was lower
than both comparative periods because of lower capital
market activities.

The third quarter’s results incorporate an appreciation of
the Singapore dollar against the Hong Kong dollar of 7%
from a year ago and a depreciation of 3% from the
previous quarter.

Expenses declined as staff costs were lower than both
comparative periods.
Allowances rose due to an increase in general allowances
and specific allowances for both loans and investment
securities.

Net interest income was similar to the previous quarter as
the impact of higher asset volumes was offset by a
decline in margins. It was below a year ago due to lower
margins. Non-interest income was lower than both
comparative periods as a result of lower sales of wealth
management products and capital market activities.
Both staff and operating costs were lower than the
previous quarter. The increase in allowances from both
comparative periods was due to higher specific
allowances for Enterprise Banking and for margin lending
to individuals.

11

DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CUSTOMER LOANS

1/

($m)

30 Sept 2008

30 Jun 2008

31 Dec 2007

30 Sept 2007

Gross
Less:
Specific allowances

129,255

120,314

109,774

106,161

711

702

436

505

General allowances
Net total

1,003
127,541

997
118,615

905
108,433

942
104,714

By business unit
Consumer Banking
Enterprise Banking
Corporate and Investment Banking
Others
Total (Gross)

34,111
27,995
60,105
7,044
129,255

33,166
25,167
54,986
6,995
120,314

31,213
22,334
48,940
7,287
109,774

31,367
22,531
45,675
6,588
106,161

By geography
Singapore
Hong Kong
Rest of Greater China
South and South-east Asia
Rest of the world
Total (Gross)

72,622
33,405
10,123
5,915
7,190
129,255

68,056
30,679
9,542
5,062
6,975
120,314

62,019
29,141
6,371
4,737
7,506
109,774

57,996
31,254
5,473
4,425
7,013
106,161

17,108
17,445
28,843
12,588
12,878
14,695
10,685

15,417
15,906
28,039
12,303
11,854
12,499
10,697

14,469
13,004
26,306
10,042
11,169
13,919
9,758

13,948
12,225
26,494
9,865
10,075
13,781
9,770

15,013
129,255

13,599
120,314

11,107
109,774

10,003
106,161

51,387
14,958
36,429
29,900
694
29,206
29,428
2,054
27,374
18,540
3,247
15,293
129,255

46,778
13,802
32,976
27,340
644
26,696
27,871
1,475
26,396
18,325
3,109
15,216
120,314

42,675
10,597
32,078
26,012
614
25,398
25,595
1,595
24,000
15,492
2,858
12,634
109,774

41,974
9,735
32,239
28,317
783
27,534
20,461
559
19,902
15,409
1,452
13,957
106,161

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)
By currency and fixed/variable pricing
Singapore dollar
Fixed rates
Floating or adjustable rates
Hong Kong dollar
Fixed rates
Floating or adjustable rates
US dollar
Fixed rates
Floating or adjustable rates
Others
Fixed rates
Floating or adjustable rates
Total (Gross)

Note:
1/ Includes customer loans classified as financial assets at fair value through profit or loss on the balance sheet

Gross customer loans rose 7% from the previous quarter,
with 2% points accounted for by the appreciation of the US
and Hong Kong currencies against the Singapore dollar
during the quarter. The growth was led by Singapore-dollar

loans to a wide range of sectors and by loans in Hong
Kong. For the nine months, gross loans rose 18%, led by
Singapore-dollar loans to corporates.

12

DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NON-PERFORMING ASSETS AND LOSS ALLOWANCE COVERAGE

1/

By business unit
NPA
($m)

SP
($m)

GP
($m)

NPL
(% of loans)

(GP+SP)/NPA
(%)

(GP+SP)/
unsecured
NPA
(%)

Consumer Banking

309

107

340

0.9

145

297

Enterprise Banking
Corporate and
Investment Banking
Others
Total non-performing
loans (NPL)

927

455

276

3.3

79

137

252

107

600

0.4

280

446

199

118

(160)

2.8

(21)

(38)

1,687

787

1,056

1.3

109

193

285

252

290

-

190

216

82

7

137

-

176

2,171

2,054

1,046

1,483

-

123

209

327
972

129
482

331
247

1.0
3.9

141
75

253
130

215

71

542

0.4

285

413

168

71

(64)

2.2

4

10

1,682

753

1,056

1.4

108

189

198

191

158

-

176

181

98

7

134

-

144

463

1,978

951

1,348

-

116

195

238
690

65
342

312
220

0.8
3.1

158
82

368
154

178

50

489

0.4

302

641

62

34

(41)

0.9

(10)

(13)

1,168

491

980

1.1

126

246

Debt securities

160

152

192

-

215

224

Contingent liabilities
Total non-performing
assets (NPA)

114

9

120

-

113

304

1,442

652

1,292

-

135

245

30 Sept 2008

Debt securities
Contingent liabilities
Total non-performing
assets (NPA)
30 Jun 2008
Consumer Banking
Enterprise Banking
Corporate and
Investment Banking
Others
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities
Total non-performing
assets (NPA)
31 Dec 2007
Consumer Banking
Enterprise Banking
Corporate and
Investment Banking
Others
Total non-performing
loans (NPL)

Note:
1/ Allowances for credit and other losses exclude one-time items

13

DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By business unit
NPA
($m)

SP
($m)

GP
($m)

NPL
(% of loans)

(GP+SP)/NPA
(%)

(GP+SP)/
unsecured
NPA
(%)

Consumer Banking

258

69

315

0.8

149

360

Enterprise Banking

726

350

235

3.2

81

153

Corporate and Investment
Banking

246

116

439

0.5

225

426

35

30

6

0.5

106

164

1,265

565

995

1.2

123

243

42
119

36
9

114
130

-

357
117

416
318

1,426

610

1,239

-

130

256

30 Sept 2007

Others
Total non-performing loans
(“NPL”)
Debt securities
Contingent liabilities
Total non-performing
assets (“NPA”)

Note:
1/ Allowances for credit and other losses exclude one-time items

14

DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By geography

30 Sept 2008
Singapore
Hong Kong
Rest of Greater China
South and South-east
Asia
Rest of the World
Total non-performing
loans
Debt securities
Contingent liabilities
Total non-performing
assets
30 Jun 2008
Singapore
Hong Kong
Rest of Greater China
South and South-east
Asia
Rest of the World
Total non-performing
loans
Debt securities
Contingent liabilities
Total non-performing
assets
31 Dec 2007
Singapore
Hong Kong
Rest of Greater China
South and South-east
Asia
Rest of the World
Total non-performing
loans
Debt securities
Contingent liabilities
Total non-performing
assets
30 Sept 2007
Singapore
Hong Kong
Rest of Greater China
South and South-east
Asia
Rest of the World
Total non-performing
loans
Debt securities
Contingent liabilities
Total non-performing
assets

NPA
($m)

SP
($m)

GP
($m)

NPL
(% of loans)

(GP+SP)/NPA
(%)

(GP+SP)/
unsecured
NPA
(%)

531
467
437

235
223
226

338
330
124

0.8
1.4
3.8

108
119
80

213
212
139

110

56

145

1.1

182

194

142

47

119

1.2

117

242

1,687

787

1,056

1.3

109

193

285
82

252
7

290
137

-

190
176

216
2,171

2,054

1,046

1,483

-

123

209

558
437
483

219
200
273

398
301
119

0.9
1.5
4.4

110
115
81

221
217
124

90

42

131

1.0

193

221

114

19

107

1.1

111

229

1,682

753

1,056

1.4

108

189

198
98

191
7

158
134

-

176
144

181
463

1,978

951

1,348

-

116

195

533
418
80

237
174
28

414
284
87

1.0
1.5
1.0

122
109
144

244
190
463

71

41

116

0.9

221

281

66

11

79

0.5

137

849

1,168

491

980

1.1

126

246

160
114

152
9

192
120

-

215
113

224
304

1,442

652

1,292

-

135

245

627
352
77

273
159
27

421
310
79

1.2
1.1
1.1

111
133
138

228
257
446

138

94

106

1.9

146

170

71

12

79

0.8

127

682

1,265

565

995

1.2

123

243

42
119

36
9

114
130

-

357
117

416
318

1,426

610

1,239

-

130

256

15

DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By industry
($m)

30 Sept 2008

30 Jun 2008

31 Dec 2007

30 Sept 2007

NPA

SP

NPA

SP

NPA

SP

NPA

SP

Manufacturing
Building and construction
Housing loans

485
92
190

246
28
46

453
105
202

216
41
61

336
69
152

160
19
35

361
81
168

212
25
37

General commerce
Transportation, storage &
communications

331
13

175
7

369
23

187
8

286
21

143
5

290
29

143
12

Financial institutions, investment
& holding companies

191

78

160

25

54

8

82

11

Professionals & private
individuals (except housing
loans)
Others
Total non-performing loans

206

108

192

102

126

55

134

60

179
1,687

99
787

178
1,682

113
753

124
1,168

66
491

120
1,265

65
565

285
82

252
7

198
98

191
7

160
114

152
9

42
119

36
9

Total non-performing assets

2,054

1,046

1,978

951

1,442

652

1,426

610

By loan classification
($m)

30 Sept 2008

Debt securities
Contingent liabilities

Non-performing assets
Substandard
Doubtful
Loss
Total
Restructured assets
Substandard
Doubtful
Loss
Total

31 Dec 2007

30 Sept 2007

NPA

SP

NPA

SP

NPA

SP

NPA

SP

1,141
644
269
2,054

201
575
270
1,046

1,159
491
328
1,978

171
451
329
951

845
338
259
1,442

73
319
260
652

878
276
272
1,426

63
275
272
610

246
29
53
328

72
27
53
152

231
31
128
390

67
28
128
223

168
25
38
231

27
23
38
88

189
32
28
249

24
37
28
89

By collateral type
($m)
Unsecured non-performing assets
Secured non-performing assets by collateral type
Properties
Shares and debentures
Fixed deposits
Others
Total

30 Jun 2008

30 Sept 2008

30 Jun 2008

31 Dec 2007

30 Sept 2007

NPA

NPA

NPA

NPA

1,211

1,182

794

722

505
76
22
240

472
93
22
209

376
24
13
235

410
40
8
246

2,054

1,978

1,442

1,426

16

DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By period overdue
($m)

30 Sept 2008

Not overdue
180 days overdue
Total

30 Jun 2008

31 Dec 2007

30 Sept 2007

NPA

NPA

NPA

NPA

832
281
307

826
309
191

542
255
94

400
246
180

634
2,054

652
1,978

551
1,442

600
1,426

The amount of NPLs was stable from the previous
quarter at $1.69 billion, while the NPL rate declined
slightly from 1.4% to 1.3% on a larger loan base. New
NPLs due to individuals and SMEs in Hong Kong as well
as corporate loans in Rest of the World were offset by
recoveries in corporate loans in Singapore and write-offs
in SME loans in Taiwan arising from the acquisition of

Bowa.
The amount of non-performing assets rose 4% to
$2.05 billion due to an increase in non-performing
debt securities. Allowance coverage for nonperforming assets increased to 123% from 116% in
the previous quarter.

FUNDING SOURCES
($m)
1/

Customer deposits
2/
Interbank liabilities
Other borrowings and liabilities 2/
Shareholders’ funds
Total

30 Sept 2008

30 Jun 2008

31 Dec 2007

30 Sept 2007

166,448
19,616
54,036

158,726
19,921
49,757

153,572
16,481
43,057

144,185
15,360
50,721

20,141
260,241

20,284
248,688

20,481
233,591

20,311
230,577

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

17

DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CUSTOMER DEPOSITS

1/

($m)
By currency and product
Singapore dollar
Fixed deposits
Savings accounts
Current accounts
Others
Hong Kong dollar
Fixed deposits
Savings accounts
Current accounts
Others
US dollar
Fixed deposits
Savings accounts
Current accounts
Others
Others
Fixed deposits
Savings accounts
Current accounts
Others

30 Sept 2008

30 Jun 2008

31 Dec 2007

30 Sept 2007

89,666
21,821
57,256
9,775
814
23,503
16,917
3,970
1,856
760
29,018
19,536
1,851
4,833
2,798
24,261
20,163
1,233
1,771
1,094
166,448
78,437
64,310
18,235
5,466

88,973
24,149
53,496
10,712
616
21,032
14,137
4,410
1,831
654
26,717
17,891
1,657
4,248
2,921
22,004
17,708
1,294
1,858
1,144
158,726
73,885
60,857
18,649
5,335

84,099
27,708
46,622
9,258
511
24,775
17,302
4,556
1,935
982
28,507
20,375
1,849
3,976
2,307
16,191
13,152
778
1,477
784
153,572
78,537
53,805
16,646
4,584

78,493
23,082
45,733
9,029
649
24,274
17,448
3,967
1,777
1,082
28,073
19,798
2,143
3,628
2,504
13,345
10,756
492
1,489
608
144,185
71,084
52,335
15,923
4,843

Total
Fixed deposits
Savings accounts
Current accounts
Others

Note:
1/ Includes customer deposits classified as financial liabilities at fair value through profit or loss on the balance sheet

For the nine months, customer deposits rose 8%, led by
Singapore-dollar savings accounts.

Customer deposits rose 5% from the previous quarter to
$166.4 billion. The increase was in foreign currency fixed
deposits and Singapore-dollar savings deposits. The mix
of Singapore dollar deposits shifted towards savings
accounts as fixed deposits fell.

OTHER BORROWINGS & LIABILITIES
($m)
Subordinated term debts1/
Other debt securities in issue
Due within 1 year
Due after 1 year
Comprising:
2/
Secured
Unsecured
Others
Total

30 Sept 2008

30 Jun 2008

31 Dec 2007

30 Sept 2007

8,882

8,470

8,954

9,171

830
1,094

1,458
831

960
239

4,705
403

269
1,655
43,230
54,036

473
1,816
38,998
49,757

369
830
32,904
43,057

1,106
4,002
36,442
50,721

Notes:
1/ All subordinated term debts issued are unsecured and due after 1 year
2/ These are mainly secured by properties and securities

18

DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
VALUE AT RISK AND TRADING INCOME
The Group uses a Value at Risk (VaR) measure as one mechanism for monitoring and controlling trading risk. The VaR is
calculated using a one-day time horizon and a 99% confidence interval. The following table shows the period-end, average,
high and low VaR for the trading risk exposure of the Group for the period from 1 October 2007 to 30 September 2008. The
Group’s trading book VaR methodology is based on Historical Simulation VaR.

($m)

As at 30 September 2008

Total

1 October 2007 to 30 September 2008
Average
High
Low

51

27

53

17

The charts below provide the range of VaR and the daily distribution of trading income in the trading portfolio for the
period from 1 October 2007 to 30 September 2008.
DBSH Group VaR for Trading Book
25

No. of Days

20

15

10

5

>15-16
>16-17
>17-18
>18-19
>19-20
>20-21
>21-22
>22-23
>23-24
>24-25
>25-26
>26-27
>27-28
>28-29
>29-30
>30-31
>31-32
>32-33
>33-34
>34-35
>35-36
>36-37
>37-38
>38-39
>39-40
>40-41
>41-42
>42-43
>43-44
>44-45
>45-46
>46-47
>47-48
>48-49
>49-50
>50-51
>51-52
>52-53
>53-54

0

VaR (S$ million)

Daily Distribution of Group Trading Income
(1 Oct 2007 to 30 Sep2008)
30

25

15

10

5

0
>(82)-(80)
>(80)-(78)
>(78)-(76)
>(76)-(74)
>(74)-(72)
>(72)-(70)
>(70)-(68)
>(68)-(66)
>(66)-(64)
>(64)-(62)
>(62)-(60)
>(60)-(58)
>(58)-(56)
>(56)-(54)
>(54)-(52)
>(52)-(50)
>(50)-(48)
>(48)-(46)
>(46)-(44)
>(44)-(42)
>(42)-(40)
>(40)-(38)
>(38)-(36)
>(36)-(34)
>(34)-(32)
>(32)-(30)
>(30)-(28)
>(28)-(26)
>(26)-(24)
>(24)-(22)
>(22)-(20)
>(20)-(18)
>(18)-(16)
>(16)-(14)
>(14)-(12)
>(12)-(10)
>(10)-(8)
>(8)-(6)
>(6)-(4)
>(4)-(2)
>(2)-0
>0-2
>2-4
>4-6
>6-8
>8-10
>10-12
>12-14
>14-16
>16-18
>18-20
>20-22
>22-24
>24-26
>26-28
>28-30
>30-32
>32-34
>34-36
>36-38
>38-40
>40-42

No. of days

20

Trading income (S$ million)

19

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 Dec 2007

1/

30 Sept 2007

1/

30 Sept 2008

30 Jun 2008

4,214
20,268
(6,011)
18,471

4,206
20,080
(5,987)
18,299

4,164
18,092
(5,897)
16,359

4,138
17,922
(5,888)
16,172

680
6,413
27
(117)
25,474
190,188

564
6,323
84
(102)
25,168
182,254

1,210
7,087
177
(102)
24,731
184,601

1,170
7,254
239
(101)
24,734
176,533

9.7
3.7
13.4

10.0
3.8
13.8

8.9
4.5
13.4

9.2
4.8
14.0

Note:
1/ Figures have been reclassified to make them consistent with the current period’s presentation

The Group’s total capital adequacy ratio decreased from 13.8% in June 2008 to 13.4% in September 2008 due mainly to an
increase in credit risk weighted assets.
UNREALISED VALUATION SURPLUS/(LOSSES)
($m)
Properties
Financial investments
Total

30 Sept 2008

30 Jun 2008

31 Dec 2007

30 Sept 2007

687
62
749

704
(11)
693

650
43
693

423
(73)
350

The amount of unrealised valuation surplus increased from $693 million in the previous quarter to $749 million as the
valuation surplus for financial investments rose due to an increase in general allowances.

20

DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Consolidated Income Statement
3rd Qtr
2008

3rd Qtr
1/
2007

9 Mths
2008

9 Mths
1/
2007

+/(-)
%

Income
Interest income
Interest expense
Net interest income
Net fee and commission income
Net trading income
Net income from financial instruments designated at fair value
Net income from financial investments
Other income

2,025
954
1,071
316
(281)
268
3
21

2,362
1,314
1,048
403
(63)
5
128
16

(14)
(27)
2
(22)
(>100)
>100
(98)
31

1,935
877
1,058
342
111
26
49
31

6,107
2,921
3,186
1,011
(331)
379
263
70

6,738
3,689
3,049
1,083
205
(90)
346
37

(9)
(21)
4
(7)
NM
NM
(24)
89

Total income

1,398

1,537

(9)

1,617

4,578

4,630

(1)

Expenses
Employee benefits
Depreciation of properties and other fixed assets
Other expenses
Allowances for credit and other losses

188
42
348
342

347
32
273
118

(46)
31
27
>100

370
37
280
90

910
113
898
572

1,061
94
815
368

(14)
20
10
55

Total expenses

920

770

19

777

2,493

2,338

7

Profit
Share of profits of associates
Profit before tax

478
21
499

767
27
794

(38)
(22)
(37)

840
21
861

2,085
65
2,150

2,292
78
2,370

(9)
(17)
(9)

Income tax expense
Net profit

59
440

146
648

(60)
(32)

159
702

369
1,781

449
1,921

(18)
(7)

379
61
440

610
38
648

(38)
61
(32)

652
50
702

1,634
147
1,781

1,787
134
1,921

(9)
10
(7)

In $ millions

Attributable to:
Shareholders
Minority interests

+/(-) 2nd Qtr
%
2008

Note:
1/ Figures have been reclassified to make them consistent with the current period’s presentation

21

DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Balance Sheets

In $ millions

30 Sept
2008

GROUP
30 Jun
31 Dec
2008
2007 1/

30 Sept
2007

30 Sept
2008

COMPANY
30 Jun
31 Dec
2008
2007 1/

30 Sept
2007

ASSETS
Cash and balances with central banks
Singapore Government securities and treasury bills
Due from banks
Financial assets at fair value though profit or loss 2/
Positive replacement values
Loans and advances to customers
Financial investments
Securities pledged
Subsidiaries
Investments in associates
Goodwill on consolidation
Properties and other fixed assets
Deferred tax assets
Other assets

15,044
15,000
27,331
11,575
23,007
126,893
23,996
3,218
620
5,847
1,632
41
6,037

13,593
16,001
28,164
17,278
19,313
117,844
20,779
2,129
608
5,838
1,585
26
5,530

18,564
15,433
23,304
19,543
13,119
106,344
19,182
4,115
715
5,842
1,534
25
5,871

8,450
16,646
30,465
20,748
10,925
103,405
21,855
2,706
666
5,843
1,511
17
7,340

TOTAL ASSETS

260,241

248,688

233,591

230,577

Due to banks
Due to non-bank customers
Financial liabilities at fair value through profit or loss 3/
Negative replacement values
Bills payable
Current tax liabilities
Deferred tax liabilities
Other liabilities
Other debt securities in issue
Subordinated term debts

19,200
158,340
15,161
23,535
762
885
11
7,208
1,924
8,882

19,331
150,390
15,967
18,354
1,262
938
41
7,258
2,289
8,470

15,464
145,368
18,242
12,554
380
882
172
7,218
1,199
8,954

13,678
133,941
23,271
10,863
590
943
191
9,792
5,108
9,171

TOTAL LIABILITIES

235,908

224,300

210,433

24,333

24,388

4,213
(137)
6,605
9,460

6,767

6,779

6,748

6,736

74

-

-

-

6,841

6,779

6,748

6,736

18

4

7

7

207,548

18

4

7

7

23,158

23,029

6,823

6,775

6,741

6,729

4,206
(106)
6,798
9,386

4,164
(102)
7,680
8,739

4,138
(74)
7,751
8,496

4,213
(62)
82
2,590

4,206
(31)
32
2,568

4,164
(27)
37
2,567

4,138
53
2,538

6,823

6,775

6,741

6,729

6,823

6,775

6,741

6,729

4.43

4.40

4.39

4.39

4.30

4.27

4.25

4.25

LIABILITIES

NET ASSETS
EQUITY
Share capital
Treasury shares
Other reserves
Revenue reserves

20,141

20,284

20,481

20,311

Minority interests

4,192

4,104

2,677

2,718

TOTAL EQUITY

24,333

24,388

23,158

23,029

17,063
93,129
2,005,986

16,799
89,095
1,918,487

14,656
92,305
1,816,007

13,808
90,334
1,887,740

SHAREHOLDERS’ FUNDS

OFF BALANCE SHEET ITEMS
Contingent liabilities
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

22

DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Consolidated Statement of Changes in Equity
GROUP

In $ millions
Balance at 1 January 2008
Exercise of share options

Ordinary
shares
4,098

Convertible
preference
shares

Treasury
shares

Other
reserves

Revenue
reserve

Minority
interests

Total equity

66

(102)

7,680

8,739

2,677

23,158

(17)

(11)

43

43

Net exchange translation adjustments

6

Share of associates’ reserves

(24)

Cost of share-based payments

22

Share buyback during the period
Reclassification of reserves upon exercise of share options

(24)
22

(35)
6

(35)
(6)

-

Available-for-sale investments/Cash flow hedge:
- Net valuation taken to equity

(992)

(992)

- Transferred to income statement on sale

(238)

(238)

- Tax on items taken directly to or transferred from equity

173

Transfer from / (to) revenue reserve

(16)

173
16

Net profit for the period

1,634

Final dividends paid for previous year

(302)

Interim dividends paid for current year

(627)

147

1,781
(302)
(627)

Dividends paid to minority interests

(116)

(116)

Change in minority interests

1,501

1,501

Balance at 30 September 2008

4,147

66

(137)

6,605

9,460

4,192

24,333

Balance at 1 January 2007

3,976

66

(111)

7,182

7,562

2,371

21,046

(41)

(66)

Exercise of share options

96

96

Net exchange translation adjustments

(25)

Share of associates’ reserves

18

18

Cost of share-based payments

26

26

(37)

-

Draw-down of reserves upon vesting of performance shares

37

Available-for-sale investments/Cash flow hedge:
- Net valuation taken to equity
- Transferred to income statement on sale

798

798

(177)

(177)

(64)

- Tax on items taken directly to or transferred from equity
Net profit for the period

(64)
1,787

Appropriation from income statement 1/

30

134

1,921

(30)

-

Final dividends paid for previous year

(310)

(310)

Interim dividends paid for current year

(513)

Dividends paid to minority interests
Change in minority interests
Balance at 30 September 2007

4,072

66

(74)

7,751

8,496

(513)
(116)

(116)

370

370

2,718

23,029

Note:
1/ Includes appropriation from prior year’s net profit

23

DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Statement of Changes in Equity
COMPANY

In $ millions
Balance at 1 January 2008
Exercise of share options

Ordinary
shares
4,098

Convertible
preference
shares
66

Other
reserves

Treasury
shares
(27)

Total equity

2,567

6,741

43

43
51

Cost of share-based payments
Reclassification of reserves upon exercise of share options

37

Revenue
reserve

51

(6)

6

Net profit for the period

954

954

(304)

(304)

(35)

Share buyback during the period

(35)

Final dividends paid for previous year
Interim dividends paid for current year
Balance at 30 September 2008

4,147

66

(62)

82

(627)
2,590

(627)
6,823

Balance at 1 January