financial performance 2Q07
DBS Group Holdings Ltd
Incorporated in the Republic of Singapore
Company Registration Number: 199901152M
To: Shareholders
The DBS Group Holdings Ltd (“DBSH” or “the Company”) Board of Directors report unaudited financial
results for the second quarter ended 30 June 2007.
For the second quarter of 2007, the Directors have declared an interim gross dividend of 10 cents (second
quarter 2006: 13 cents) for each DBSH non-voting convertible preference share (“CPS”) and each DBSH
non-voting redeemable CPS, and 20 cents (second quarter 2006: 17 cents) for each DBSH ordinary
share.
The second quarter 2007 dividends will be paid less 18% Singapore income tax.
The second quarter ended 2007 dividends will be payable on 23 August 2007. DBS shares will be
quoted ex-dividend on 7 August 2007. Notice is hereby given that the Share Transfer Books and
Register of Members of the Company will be closed on 13 August 2007. 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 10 August 2007 will be registered to
determine shareholders' entitlement to the second quarter 2007 dividends. In respect of ordinary
shares in the securities accounts with The Central Depository (Pte) Limited (“CDP”), the second quarter
2007 dividends will be paid by DBSH to CDP, which will in turn distribute the dividend entitlements to
shareholders.
By order of the Board
Heng Lee Cheng (Ms)
Group Secretary
26 July 2007
Singapore
More information on the above announcement is available at www.dbs.com/investor
Performance Summary
Unaudited Financial Results
For the Second Quarter ended
30 June 2007
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
Value at Risk and Trading Income
Capital Adequacy
Unrealised Valuation Surplus
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
Confirmation by the Board
Page
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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 2006, with the exception of the adoption of new or revised FRS and
Interpretations to FRS (“INT FRS”).
The Council on Corporate Disclosure and Governance (“CCDG”) issued several new or revised FRS and INT FRS, which are
effective 1 January 2007 for the Group.
•
•
•
•
•
•
•
Amendment to FRS 1: Presentation of Financial Statements – Capital Disclosures
FRS 32 (revised): Financial Instruments – Presentation
FRS 40 (new): Investment Property
FRS 107 (new): Financial Instruments – Disclosures
INT FRS 108: Scope of FRS 102 – Share-based Payment
INT FRS 109: Reassessment of Embedded Derivatives
INT FRS 110: Interim Financial Reporting and Impairment
2nd Qtr
2007
2nd Qtr
1/
2006
% chg
1st Qtr
2007
1st Half
2007
1st Half
1/
2006
1,027
371
97
897
296
173
14
25
(44)
974
309
171
2,001
680
268
1,747
558
336
(49)
(59)
17
(46)
(95)
(111)
14
79
26
1,551
12
35
1,354
>100
(26)
15
121
13
1,542
200
39
3,093
50
44
2,624
>100
(11)
18
660
891
594
760
11
17
658
884
1,318
1,775
1,158
1,466
14
21
Less: Allowances for credit and other losses
64
62
3
105
169
93
82
Share of profits of associates
25
20
25
26
51
32
59
852
718
19
805
1,657
1,405
18
664
549
21
617
1,281
1,067
20
(104)
54
NM
-
(104)
54
NM
560
603
(7)
617
1,177
1,121
5
98,957
30,858
222,891
141,272
200,602
19,641
83,410
20,411
189,589
120,875
169,780
17,408
19
51
18
17
18
13
94,294
25,619
209,921
136,443
188,144
19,430
98,957
30,858
222,891
141,272
200,602
19,641
83,410
20,411
189,589
120,875
169,780
17,408
19
51
18
17
18
13
Selected profit and loss items ($m)
Net interest income
Net fee and commission income
Net trading income
Net income from financial instruments
designated at fair value
Net income from financial investments
Other income
Total income
Less: Expenses
Profit before allowances
Profit before tax
Net profit attributable to shareholders
(“Net profit”)
2/
Add: One-time gains/(charge)
Net profit including one-time gains/(charge)
and goodwill charges
Selected balance sheet items
3/
Customer loans
4/
Interbank assets
Total assets
5/
Customer deposits
Total liabilities
Shareholders’ funds
Key financial ratio (%) (excluding one-time gains/(charge))
6/
Net interest margin
Non-interest/total income
Cost/income ratio
Return on assets
Return on equity 7/
Loan/deposit ratio
NPL ratio
Specific allowances (loans)/average loans
(bp)
Tier 1 capital adequacy ratio
Total capital adequacy ratio
2.21
33.8
42.6
1.23
13.60
70.0
1.4
2.23
33.8
43.9
1.18
12.70
69.0
1.9
2.21
36.8
42.7
1.21
12.99
69.1
1.5
2.21
35.3
42.6
1.22
13.41
70.0
1.4
2.23
33.4
44.1
1.15
12.55
69.0
1.9
19
16
-
10
18
9.4
14.7
10.1
14.4
9.6
13.6
9.4
14.7
10.1
14.4
2
% chg
15
22
(20)
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Per share data ($)
Per basic share
– earnings excluding one-time
gains/(charge) and goodwill charges
– earnings
7/
– net book value
Per diluted share
– earnings excluding one-time
gains/(charge) and goodwill charges
– earnings
– net book value 7/
2nd Qtr
2007
2nd Qtr
2006 1/
1.76
% chg
1st Qtr
2007
1st Half
2007
1st Half
20061/
1.46
1.63
1.69
1.42
1.69
12.66
1.50
11.29
1.63
12.54
1.63
12.66
1.45
11.29
1.69
1.40
1.56
1.63
1.36
1.63
12.45
1.44
11.08
1.56
12.39
1.56
12.45
1.40
11.08
% chg
Notes:
1/ Figures for 2006 have been reclassified to make them consistent with the current year’s presentation
2/ One-time gains include gains from sale of buildings in Hong Kong and allowance write-back for a Singapore property; one-time charge includes impairment charge for Thai
investment
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 asset value and return on equity
Net profit for the second quarter rose 21% from a year
ago and 8% from the previous quarter to $664 million
before one-time items. Net interest and fee income
reached new highs as DBS has continued to capture
higher business volumes across a wide range of
activities and customer segments.
An impairment charge of $159 million was recorded
during the quarter for DBS’ 16.1% stake in TMB Bank
in Thailand to reflect current market valuation for the
investment. In addition, there was a $55 million
allowance write-back for a Singapore property as
market valuations improved. Including both one-time
items, net profit amounted to $560 million.
Net interest income increased 5% from the previous
quarter and 14% from a year ago to $1.03 billion, the
first time quarterly net interest income has crossed
$1 billion. The rise was driven by higher loan
volumes, which expanded 5% for the quarter and
19% for the year. Net fee income of $371 million was
25% higher than a year ago, with both corporate and
consumer activities contributing to the increase. Net
trading income fell to $97 million as customer flows
and trading gains were not as favourable. Total
income rose 15% from a year ago to $1.55 billion but
was little changed from the previous quarter.
Total expenses grew 11% from a year ago to $660
million. As with recent quarters, the year-on-year
increase was led by staff and computerisation costs.
Total expenses were stable from the previous
quarter, with a decline in staff costs being offset by
higher revenue-related expenses. The cost-income
ratio of 43% was unchanged from the previous
quarter and better than the 44% a year ago.
Asset quality continued to improve as the non-performing
loan ratio fell to 1.4% from 1.5% in the previous quarter
and 1.9% a year ago. Specific allowances for loans of $47
million corresponded to a charge of 19 basis points of
loans, within the range of recent quarters. Total cumulative
allowances amounted to 124% of total non-performing
assets.
For the first half, net profit before one-time items rose 20%
to $1.28 billion as an 18% increase in total income
surpassed a 14% rise in total expenses from a year ago.
Return on equity for the first half rose from 12.6% in
the previous year to 13.4% as return on assets
improved from 1.15% to 1.22%.
3
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET INTEREST INCOME
Average balance
sheet
2nd Qtr 2007
Average
Average
rate
balance Interest
(%)
($m)
($m)
2nd Qtr 2006
Average
Average
rate
balance Interest
(%)
($m)
($m)
1st Qtr 2007
Average
balance
($m)
Interest
($m)
Average
rate
(%)
Interest-bearing
assets
Customer loans
Interbank assets
Securities
Total
94,742
36,341
55,368
186,451
1,322
303
627
2,252
5.60
3.35
4.54
4.85
80,794
30,966
49,934
161,694
1,134
249
548
1,931
5.63
3.23
4.40
4.79
90,121
34,765
52,923
177,809
1,248
301
575
2,124
5.62
3.51
4.40
4.84
Interest-bearing
liabilities
Customer deposits
Other borrowings
Total
139,705
36,900
176,605
754
471
1,225
2.17
5.12
2.78
120,945
32,484
153,429
665
369
1,034
2.20
4.56
2.70
134,312
34,236
168,548
746
404
1,150
2.25
4.79
2.77
1,027
2.21
897
2.23
974
2.21
Net interest
1/
income/margin
Average balance
sheet
1st Half 2007
1st Half 2006
Average
Average Average
Average
balance Interest
rate balance Interest
rate
($m)
($m)
(%)
($m)
($m)
(%)
Interest-bearing
assets
Customer loans
Interbank assets
Securities
Total
92,108
35,880
54,005
181,993
2,570
604
1,202
4,376
5.63
3.40
4.49
4.85
80,075
28,992
49,355
158,422
2,172
443
1,051
3,666
5.47
3.09
4.29
4.67
Interest-bearing
liabilities
Customer deposits
Other borrowings
Total
137,089
35,447
172,536
1,500
875
2,375
2.21
4.98
2.78
119,242
31,502
150,744
1,233
686
1,919
2.08
4.39
2.57
2,001
2.21
1,747
2.23
Net interest
1/
income/margin
Note:
1/ Net interest margin is net interest income expressed as a percentage of average interest-earning assets
Compared to both the previous quarter and a year
ago, the increase in net interest income was due to
higher asset volumes as customer loans, interbank
assets and securities volume grew.
lower cost of deposits was offset by higher costs for
other borrowings, which was due to the inclusion of
interest costs for US$2 billion subordinated debts
issued in May.
Net interest margin was stable at 2.21%. Compared to
the previous quarter, an increase in yields for
securities was offset by lower customer loan and
interbank asset yields. Customer deposit costs fell as
a result of an improved deposit mix. The benefit from
For the first half, net interest income rose 15% from a
year ago to $2.00 billion on higher asset volumes. Net
interest margin was little changed at 2.21%.
4
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
2nd Qtr 2007 versus 2nd Qtr 2006
Volume and rate analysis ($m)
Increase/(decrease) due to change in
2nd Qtr 2007 versus 1st Qtr 2007
Volume
Rate
Net
change
Customer loans
Interbank assets
Securities
Total
195
44
59
298
(7)
10
20
23
188
54
79
321
64
14
27
105
(5)
(15)
19
(1)
59
(1)
46
104
Interest expense
Customer deposits
Other borrowings
Total
103
43
146
(14)
59
45
89
102
191
30
31
61
(29)
30
1
1
61
62
Net impact on interest income
152
(22)
130
44
(2)
42
Volume
Rate
Net
change
Interest income
Due to change in number of days
Net Interest Income
-
11
130
53
1st Half 2007 versus 1st Half 2006
Volume and rate analysis ($m)
Increase/(decrease) due to change in
Volume
Rate
Net
change
Customer loans
Interbank assets
Securities
Total
326
106
99
531
72
55
52
179
398
161
151
710
Interest expense
Customer deposits
Other borrowings
Total
184
77
261
83
112
195
267
189
456
Net impact on interest income
270
(16)
254
Interest income
Due to change in number of days
Net Interest Income
254
5
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET FEE AND COMMISSION INCOME
($m)
2nd Qtr
2007
2nd Qtr
2006
% chg
1st Qtr
2007
1st Half
2007
1st Half
2006
% chg
58
48
50
55
9
22
35
13
68
13
371
33
44
47
50
7
21
28
15
38
13
296
76
9
6
10
29
5
25
(13)
79
25
53
29
48
58
8
19
27
9
47
11
309
111
77
98
113
17
41
62
22
115
24
680
70
63
91
84
15
40
52
37
80
26
558
59
22
7
35
13
3
19
(41)
44
(8)
22
Stockbroking
Investment banking
Trade and remittances
Loan related
Guarantees
Deposit related
Credit card
Fund management
Wealth management
Others
Total
wealth management, stockbroking, credit cards
and investment banking activities.
Net fee and commission income grew 25% from a
year ago and 20% from the previous quarter to $371
million as contributions from most corporate and
consumer activities increased with improved economic
conditions. The increase this quarter was led by
For the first half, net fee and commission income
grew 22% from a year ago to $680 million.
OTHER NON-INTEREST INCOME
($m)
Net trading income
From trading businesses
From other businesses
Net income from financial instruments
designated at fair value
Net income on financial investments
Net gain on fixed assets 1/
Others (include dividend and rental
income)
Total
2nd Qtr
2007
2nd Qtr
2006
% chg
1st Qtr
2007
1st Half
2007
1st Half
2006
% chg
97
100
(3)
173
180
(7)
(44)
(44)
57
171
169
2
268
269
(1)
336
348
(12)
(20)
(49)
(59)
17
(46)
(95)
(111)
14
79
2
12
2
>100
-
121
2
200
4
50
2
>100
24
33
(27)
11
35
42
(17)
153
161
(5)
259
412
319
29
Note:
1/ Excludes one-time gains
Net trading income from trading businesses fell to
$100 million from $169 million in the previous
quarter and $180 million a year ago. In both
comparative periods there had been stronger
customer flows for hedging products as well as
higher trading gains in foreign exchange, interest
rate and equity instruments.
Net income from sales of investment securities
amounted to $79 million from the sale of debt and
equity investments as market conditions were
conducive. The gains were higher than the $12
million a year ago but below the $121 million in the
previous quarter.
For the first half, net trading income from trading
businesses fell 23% from a year ago to $269
million, while net income from sales of investment
securities increased from $50 million to $200
million.
6
(23)
92
100
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
EXPENSES
($m)
Staff
Occupancy
Computerisation
Revenue-related
Others
Total
Staff headcount at period-end
2nd Qtr
2007
2nd Qtr
2006
% chg
1st Qtr
2007
1st Half
2007
1st Half
2006
% chg
354
51
111
35
109
660
13,364
321
45
97
26
105
594
12,453
10
13
14
35
4
11
7
360
53
112
25
108
658
13,177
714
104
223
60
217
1,318
13,364
621
91
189
49
208
1,158
12,453
15
14
18
22
4
14
7
Total expenses increased 11% from a year ago to $660
million, but were stable on quarter.
in technology to support business expansion. They were
little changed from the previous quarter.
Staff costs rose 10% from a year ago on a 7% increase
in headcount, but they were 2% below the previous
quarter as salary pressures were managed.
For the first half, total expenses increased 14% from the
previous year to $1.32 billion.
Computerisation costs rose 14% from a year ago from
higher depreciation charges and continued investments
ALLOWANCES FOR CREDIT AND OTHER LOSSES
($m)
2nd Qtr
2007
2nd Qtr
2006
% chg
1st Qtr
2007
1st Half
2007
1st Half
2006
% chg
General allowances (“GP”)
24
34
(29)
102
126
48
>100
Specific allowances (“SP”) for loans
Singapore
Hong Kong
Other countries
47
9
18
20
33
23
19
(9)
42
(61)
(5)
NM
1
(18)
19
-
48
(9)
37
20
73
36
37
-
(34)
NM
NM
Specific allowances (“SP”) for securities,
1/
properties and other assets
(7)
(5)
(40)
2
(5)
(28)
82
Total
64
62
3
105
169
93
82
Note:
1/ Excludes one-time gain/(charge)
Specific allowances for loans rose to $47 million for
corporate and SME loans in Singapore, Hong Kong and
the rest of the region. In the previous quarter there had
been a net write-back for loans in Singapore, which offset
a charge in Hong Kong.
For the first half, total allowances rose 82% to $169
million as a result of higher general allowances for new
loans. Specific allowances for loans declined 34% to $48
million, corresponding to 10 basis points of loans
compared with 18 basis points in first half 2006.
General allowances of $24 million were taken for new
loans and off-balance sheet commitments booked during
the quarter.
7
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY BUSINESS UNIT
($m)
CBG
EB
CIB
GFM
CTU
Central
Ops
Total
423
175
258
5
335
201
91
87
45
160
172
188
102
36
222
236
51
125
3
163
94
(8)
9
77
(99)
27
79
(25)
(105)
1,027
524
660
64
852
450
144
266
9
319
194
118
91
18
203
158
192
88
43
219
180
68
128
1
124
62
18
11
69
(70)
28
74
34
(129)
974
568
658
105
805
436
130
244
11
311
176
75
86
16
149
142
161
94
44
165
152
95
111
137
81
(28)
9
44
(90)
24
50
(9)
(88)
897
457
594
62
718
Profit before tax
873
319
524
14
654
395
209
178
63
363
330
380
190
79
441
416
119
253
4
287
156
10
20
146
(169)
55
153
9
(234)
2,001
1,092
1,318
169
1,657
1st Half 2006 1/
Net interest income
Non-interest income
Expenses
Allowances for credit and other losses
Profit before tax
857
251
476
18
614
348
159
167
41
299
274
274
182
32
334
297
163
207
1
255
149
(17)
18
(1)
115
(178)
47
108
2
(212)
1,747
877
1,158
93
1,405
Selected balance sheet and other
items
30 June 2007
Total assets before goodwill
Total liabilities
Capital expenditure for 2nd Qtr 2007
Depreciation for 2nd Qtr 2007
31,871
81,168
11
7
22,028
19,898
1
-
47,354
22,305
4
1
85,218
49,193
2
2
27,228
1,404
-
3,452
26,689
18
20
217,151
200,657
36
30
31 Mar 2007
Total assets before goodwill
Total liabilities
Capital expenditure for 1st Qtr 2007
Depreciation for 1st Qtr 2007
31,018
77,803
13
6
20,956
19,697
1
45,097
23,438
2
1
75,205
42,141
9
3
28,698
1,384
-
3,107
23,681
6
21
204,081
188,144
30
32
Selected income items
2nd Qtr 2007 1/
Net interest income
Non-interest income
Expenses
Allowances for credit and other losses
Profit before tax
1st Qtr 2007
Net interest income
Non-interest income
Expenses
Allowances for credit and other losses
Profit before tax
1/
2nd Qtr 2006
Net interest income
Non-interest income
Expenses
Allowances for credit and other losses
Profit before tax
1st Half 2007 1/
Net interest income
Non-interest income
Expenses
Allowances for credit and other losses
8
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
31 Dec 2006
Total assets before goodwill
Total liabilities
Capital expenditure for 4th Qtr 2006
Depreciation for 4th Qtr 2006
30 Jun 2006
Total assets before goodwill
Total liabilities
Capital expenditure for 2nd Qtr 2006
Depreciation for 2nd Qtr 2006
Central
Ops
Total
28,119
3,175
191,532
998
-
24,418
56
19
176,327
113
35
28,482
1,240
2
2
1,895
19,794
27
14
183,756
169,780
52
30
CBG
EB
CIB
GFM
CTU
30,655
20,067
40,090
76,237
20
10
18,827
1
1
19,733
32
3
69,426
36,114
4
2
28,985
71,977
12
6
18,988
17,660
5
4
38,164
16,707
1
1
67,242
42,402
5
3
Note:
1/ Income, allowances for credit and other losses and profits exclude one-time gains/(charge)
Consumer Banking’s (CBG) net interest income fell
from the previous quarter and a year ago as
increased loan and deposit volumes as well as
higher loan spreads were more than offset by a
decline in deposit spreads in Singapore. Noninterest income was higher than both comparative
periods from higher unit trust sales, particularly in
Singapore. Expenses were lower than the previous
quarter as staff costs declined. Total allowances
fell during the quarter as higher general allowances
were more than offset by a write-back of specific
allowances in Singapore.
Enterprise Banking’s (EB) net interest income was
higher than both comparative periods due to an
increase in loan and deposit volumes as well as
higher loan spreads. Non-interest income was
below the previous quarter, when there were strong
sales of foreign exchange products to SME and
corporate clients in Hong Kong. Expenses were
lower than the previous quarter as bonus accruals
declined in line with the lower income. Total
allowances rose due to higher specific allowances
in Singapore.
loan volumes increased. Non-interest income was
higher than a year ago from increased fee-based
activities. There was a slight decline in non-interest
income from the previous quarter, when capital gains
from the sale of equity investments had been higher.
Expenses increased due to higher allocations for
support costs, while staff costs were little changed from
both comparative periods. Total allowances fell due to
lower general allowances. There was a charge for
specific allowances this quarter, compared with a writeback in both comparative periods.
Global Financial Markets’ (GFM) net interest income
rose from both comparative periods due to higher
contributions from money markets, while non-interest
income declined due to lower trading gains.
Central Treasury Unit (CTU) manages the Group’s
asset and liability interest rate positions as well as
investments of the Group’s excess liquidity. 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 was higher than both comparative periods as
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
2nd Qtr 2007
Net interest income
Non-interest income
Expenses
Allowances for credit and other losses
Profit before tax
672
317
414
(8)
591
277
127
163
21
220
25
28
29
21
3
35
34
38
21
27
18
18
16
9
11
1,027
524
660
64
852
1st Qtr 2007
Net interest income
Non-interest income
Expenses
Allowances for credit and other losses
Profit before tax
648
343
428
59
511
271
135
170
22
214
17
28
21
24
22
52
27
6
60
16
10
12
18
(4)
974
568
658
105
805
2nd Qtr 2006
Net interest income
Non-interest income
Expenses
Allowances for credit and other losses
563
299
375
48
286
87
164
25
10
30
20
(1)
24
26
20
(5)
14
15
15
(5)
897
457
594
62
Profit before tax
444
184
21
50
19
718
1st Half 2007 1/
Net interest income
Non-interest income
Expenses
Allowances for credit and other losses
Profit before tax
1,320
660
842
51
1,102
548
262
333
43
434
42
56
50
21
27
57
86
65
27
87
34
28
28
27
7
2,001
1,092
1,318
169
1,657
1st Half 2006 1/
Net interest income
Non-interest income
Expenses
Allowances for credit and other losses
Profit before tax
1,089
589
730
45
905
564
177
326
44
371
19
49
34
3
31
46
40
42
(6)
80
29
22
26
7
18
1,747
877
1,158
93
1,405
143,341
133,324
126,499
124,078
46,819
45,960
44,868
38,820
9,137
7,944
7,792
7,258
7,265
6,142
5,131
4,487
10,589
10,711
7,242
9,113
217,151
204,081
191,532
183,756
Selected income items
1/
1/
Total assets before goodwill
30 Jun 2007
31 Mar 2007
31 Dec 2006
30 Jun 2006
Note
1/ Income, allowances for credit and other losses and profits exclude one-time gains/(charge)
10
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Singapore
Net interest income was higher than both comparative
periods as loans and deposits expanded. Non-interest
income increased from a year ago due to higher feebased activities, but was below the previous quarter as
trading income and gains from the sale of investment
securities fell.
Expenses fell from the previous quarter as staff costs
declined. Compared to a year ago, the increase in
expenses was led by computerisation and staff expenses.
year ago. Exchange translation effects from the previous
quarter were minimal.
Net interest income rose from the previous quarter due to
higher loan volumes. It was lower than a year ago from
exchange translation effects.
Non-interest income fell from the previous quarter as a
decline in contributions from the sale of foreign exchange
hedging products to SME and corporate customers was
partially offset by increased unit trusts sales to individual
customers. Sales of both products were higher than a year
ago.
Compared to the previous quarter, general allowances
declined. There was a charge for specific allowances for
loans this quarter compared to a write-back in the
previous quarter.
Expenses fell from the previous quarter due to lower bonus
accruals. Compared to a year ago, lower bonus accruals
were offset by higher non-staff expenses.
Hong Kong
Other regions
The second quarter’s results incorporate an appreciation of
the Singapore dollar against Hong Kong dollar of 4% from a
Outside of Singapore and Hong Kong, the largest
contributions are from Indonesia and Greater China.
11
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CUSTOMER LOANS
1/
($m)
30 Jun 2007
31 Mar 2007
31 Dec 2006
30 Jun 2006
100,475
95,785
88,080
84,835
544
974
98,957
532
959
94,294
564
886
86,630
574
851
83,410
By business unit
Consumer Banking
Enterprise Banking
Corporate and Investment Banking
Others
Total (Gross)
31,082
21,984
40,374
7,035
100,475
30,196
20,915
38,757
5,917
95,785
29,538
20,101
33,764
4,677
88,080
28,509
19,488
30,937
5,901
84,835
By geography
Singapore
Hong Kong
Rest of Greater China
South and South-east Asia
Rest of the world
Total (Gross)
54,954
29,729
4,884
3,784
7,124
100,475
52,585
28,647
4,770
3,546
6,237
95,785
48,789
27,216
4,443
2,993
4,639
88,080
47,267
26,505
4,086
2,662
4,315
84,835
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)
13,321
12,179
26,124
9,677
9,984
11,979
9,269
7,942
100,475
12,512
10,700
25,776
8,852
9,249
12,703
8,693
7,300
95,785
10,867
10,883
25,043
8,930
7,709
9,827
8,110
6,711
88,080
10,506
10,500
23,994
8,835
7,560
10,112
7,502
5,826
84,835
By currency
Singapore dollar
Hong Kong dollar
US dollar
Others
Total (Gross)
39,328
27,536
19,763
13,848
100,475
38,066
26,592
17,542
13,585
95,785
35,708
24,942
15,895
11,535
88,080
34,694
24,213
15,737
10,191
84,835
Gross
Less:
Specific allowances
General allowances
Net total
Note:
1/ Includes customer loans classified as financial assets at fair value through profit or loss on the balance sheet
Net customer loans expanded 19% from a year ago and
5% from the previous quarter to $99.0 billion. The growth
during the quarter was led by corporate and SME loans in
Singapore, Hong Kong and other parts of the region.
Consumer loans in Singapore also increased as new
disbursements and applications for housing loans
remained higher than a year ago.
Loans in Hong Kong rose 4% in local currency terms
during the quarter, with SME and corporate loans
contributing to the increase.
12
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NON-PERFORMING ASSETS AND LOSS ALLOWANCE COVERAGE
1/
By business unit
NPA
($m)
SP
($m)
GP
($m)
NPL
(% of loans)
(GP+SP)/NPA
(%)
(GP+SP)/
unsecured
NPA
(%)
30 Jun 2007
Consumer Banking
282
76
310
0.9
137
330
Enterprise Banking
729
349
217
3.3
78
150
Corporate and Investment
Banking
324
149
413
0.8
173
295
37
28
83
0.6
297
460
1,372
602
1,023
1.4
118
229
37
85
17
5
80
129
-
260
158
587
2,137
1,494
624
1,232
-
124
254
318
730
88
363
301
206
1.1
3.5
122
78
284
145
282
124
386
0.7
181
366
70
26
107
1.2
190
538
1,400
601
1,000
1.5
114
231
Debt securities
37
16
76
-
249
565
Contingent liabilities
Total non-performing
assets
23
8
126
-
571
1,147
1,460
625
1,202
-
125
254
307
691
95
324
294
198
1.0
3.4
127
76
356
150
396
183
336
1.2
131
224
66
23
100
1.4
185
499
1,460
625
928
1.7
106
217
36
37
15
9
66
114
-
223
327
531
1,173
1,533
649
1,108
-
115
237
Others
Total non-performing loans
(“NPL”)
Debt securities
Contingent liabilities
Total non-performing
assets (“NPA”)
31 Mar 2007
Consumer Banking
Enterprise Banking
Corporate and Investment
Banking
Others
Total non-performing loans
31 Dec 2006
Consumer Banking
Enterprise Banking
Corporate and Investment
Banking
Others
Total non-performing loans
Debt securities
Contingent liabilities
Total non-performing
assets
13
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By business unit
NPA
($m)
SP
($m)
GP
($m)
NPL
(% of loans)
(GP+SP)/NPA
(%)
(GP+SP)/
unsecured
NPA
(%)
Consumer Banking
331
110
284
1.2
119
320
Enterprise Banking
721
300
192
3.7
68
144
Corporate and Investment
Banking
438
189
308
1.4
113
228
98
28
108
1.7
141
443
1,588
627
892
1.9
96
213
37
21
15
9
75
107
-
243
552
611
1,104
1,646
651
1,074
-
105
234
30 Jun 2006
Others
Total non-performing loans
(“NPL”)
Debt securities
Contingent liabilities
Total non-performing
assets (“NPA”)
Note
1/ Allowances for credit and other losses exclude one-time gain/(charge)
14
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By geography
30 Jun 2007
Singapore
Hong Kong
Rest of Greater China
South and South-east
Asia
Rest of the World
Total non-performing
loans
Debt securities
Contingent liabilities
Total non-performing
assets
31 Mar 2007
Singapore
Hong Kong
Rest of Greater China
South and South-east
Asia
Rest of the World
Total non-performing
loans
NPA
($m)
SP
($m)
GP
($m)
NPL
(% of loans)
(GP+SP)/NPA
(%)
(GP+SP)/
unsecured
NPA
(%)
707
356
72
321
159
24
487
299
70
1.4
1.2
1.1
114
129
131
239
246
395
147
74
88
2.5
111
127
90
24
79
0.9
114
325
1,372
602
1,023
1.4
118
229
37
85
17
5
80
129
-
260
158
587
2,137
1,494
624
1,232
-
124
254
780
361
67
332
161
20
465
291
63
1.7
1.3
1.2
102
125
124
221
233
389
111
63
79
2.0
127
172
81
25
102
0.9
157
380
1,400
601
1,000
1.5
114
231
37
23
16
8
76
126
-
249
571
565
1,147
1,460
625
1,202
-
125
254
811
363
68
359
150
20
443
278
56
1.8
1.3
1.3
99
118
112
212
245
358
112
61
72
2.5
119
161
106
35
79
1.6
109
199
1,460
625
928
1.7
106
217
Debt securities
36
15
66
-
223
531
Contingent liabilities
Total non-performing
assets
37
9
114
-
327
1,173
1,533
649
1,108
-
115
237
851
394
87
341
144
36
442
281
44
1.9
1.5
2.1
92
108
93
218
243
230
125
68
69
2.8
110
183
131
38
56
2.5
71
135
1,588
627
892
1.9
96
213
Debt securities
37
15
75
-
243
611
Contingent liabilities
Total non-performing
assets
21
9
107
-
552
1,104
1,646
651
1,074
-
105
234
Debt securities
Contingent liabilities
Total non-performing
assets
31 Dec 2006
Singapore
Hong Kong
Rest of Greater China
South and South-east
Asia
Rest of the World
Total non-performing
loans
30 Jun 2006
Singapore
Hong Kong
Rest of Greater China
South and South-east
Asia
Rest of the World
Total non-performing
loans
15
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By industry
($m)
30 Jun 2007
31 Mar 2007
31 Dec 2006
30 Jun 2006
NPA
SP
NPA
SP
NPA
SP
NPA
SP
Manufacturing
Building and construction
Housing loans
General commerce
Transportation, storage &
communications
338
91
184
339
34
197
39
43
150
11
278
80
197
333
25
155
39
51
151
12
314
107
224
336
25
170
50
56
146
12
349
119
246
339
31
178
39
68
133
14
Financial institutions, investment
& holding companies
101
19
170
47
173
47
189
47
Professionals & private
individuals (except housing
loans)
Others
Total non-performing loans
142
61
173
63
142
65
181
75
143
1,372
82
602
144
1,400
83
601
139
1,460
79
625
134
1,588
73
627
37
85
17
5
37
23
16
8
36
37
15
9
37
21
15
9
Total non-performing assets
1,494
624
1,460
625
1,533
649
1,646
651
By loan classification
($m)
30 Jun 2007
Debt securities
Contingent liabilities
Non-performing assets
Substandard
Doubtful
Loss
Total
Restructured assets
Substandard
Doubtful
Loss
Total
31 Mar 2007
31 Dec 2006
30 Jun 2006
NPA
SP
NPA
SP
NPA
SP
NPA
SP
904
273
317
1,494
73
232
319
624
890
215
355
1,460
69
201
355
625
939
243
351
1,533
82
216
351
649
1,053
224
369
1,646
82
200
369
651
200
47
55
302
28
45
55
128
200
52
43
295
25
49
43
117
218
66
42
326
29
48
42
119
318
48
39
405
41
34
39
114
By collateral type
($m)
30 Jun 2007
31 Mar 2007
31 Dec 2006
30 Jun 2006
NPA
NPA
NPA
NPA
Unsecured non-performing assets
731
720
740
738
Secured non-performing assets by collateral type
Properties
Shares and debentures
Fixed deposits
Others
454
47
41
221
497
53
39
151
556
46
38
153
666
35
38
169
1,494
1,460
1,533
1,646
Total
16
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By period overdue
($m)
Not overdue
180 days overdue
total
30 Jun 2007
31 Mar 2007
31 Dec 2006
30 Jun 2006
NPA
NPA
NPA
NPA
333
388
144
629
1,494
332
297
160
671
1,460
413
332
128
660
1,533
447
381
138
680
1,646
Including debt securities and contingent liabilities, the
amount of non-performing assets fell 9% from a year
ago to $1.49 billion, but was 2% higher than the
previous quarter.
Non-performing loans (NPLs) fell 14% from a year ago
and 2% from the previous quarter to $1.37 billion. NPL
rates for consumer and SME loans improved from the
previous quarter. By region, NPL rates for Singapore,
Hong Kong and Greater China were better than in
March 2007.
FUNDING SOURCES
($m)
30 Jun 2007
31 Mar 2007
31 Dec 2006
30 Jun 2006
141,272
11,898
50,080
19,641
222,891
136,443
12,205
41,843
19,430
209,921
131,373
8,537
38,787
18,675
197,372
120,875
11,769
39,537
17,408
189,589
30 Jun 2007
31 Mar 2007
31 Dec 2006
30 Jun 2006
79,798
25,556
23,583
12,335
141,272
74,591
25,918
23,493
12,441
136,443
71,242
24,758
23,059
12,314
131,373
66,055
22,436
21,203
11,181
120,875
52,607
15,540
69,071
4,054
141,272
48,767
14,305
69,975
3,396
136,443
47,491
14,109
66,718
3,055
131,373
44,991
13,127
60,403
2,354
120,875
1/
Customer deposits
2/
Interbank liabilities
2/
Other borrowings and liabilities
Shareholders’ funds
Total
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
CUSTOMER DEPOSITS
($m)
By currency
Singapore dollar
US dollar
Hong Kong dollar
Others
Total
1/
By product
Savings accounts
Current accounts
Fixed deposits
Other deposits
Total
Note:
1/ Includes customer deposits classified as financial liabilities at fair value through profit or loss on the balance sheet
Customer deposits rose 4% from the previous quarter and
17% from a year ago to $141.3 billion. Unlike recent
quarters, savings accounts led the increase, while fixed
deposits declined.
Singapore-dollar deposits rose 7% during the quarter,
with savings deposits accounting for more than half of
the increase. Hong Kong-dollar deposits fell 1% in local
currency terms as fixed deposits declined.
17
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
VALUE AT RISK AND TRADING INCOME
The Group uses a Value at Risk (“VaR”) measure as one mechanism for monitoring and controlling trading risk. The VaR is
calculated using a one-day time horizon and a 99% confidence interval. The following table shows the period-end, average,
high and low VaR for the trading risk exposure of the DBSH Group for the period from 1 July 2006 to 30 June 2007. DBS
changed its trading book VaR methodology from Parametric VaR (PVaR) to Historical Simulation VaR (HSVaR) in September
2006. The histogram below which is based on PVaR for the period from July to August 2006 and HSVaR from September
2006 to June 2007.
($m)
As at 30 Jun 2007
Total
Average
12
1 July 2006 to 30 June 2007
High
13
Low
28
6
The charts below provide the range of VaR and the daily distribution of trading income in the trading portfolio for the
period from 1 July 2006 to 30 June 2007.
DBSH Group VaR for Trading Book
45
40
No. of Days
35
30
25
20
15
10
5
>26-27
>27-28
>28-29
>28-30
>30-32
>32-34
>29-30
>25-26
>26-28
>24-25
>23-24
>22-23
>21-22
>20-21
>19-20
>18-19
>17-18
>16-17
>15-16
>14-15
>13-14
>12-13
>11-12
>10-11
>9-10
>8-9
>7-8
>6-7
>5-6
0
VaR (S$ million)
Daily Distribution of Group Trading Income
(1 Jul 2006 to 30 Jun 2007)
50
45
40
30
25
20
15
10
5
Trading income (S$ million)
18
>34-36
>24-26
>22-24
>20-22
>18-20
>16-18
>14-16
>12-14
>10-12
>8-10
>6-8
>4-6
>2-4
>0-2
>(2)-0
>(4)-(2)
>(6)-(4)
>(8)-(6)
>(10)-(8)
>(12)-(10)
>(14)-(12)
>(16)-(14)
>(18)-(16)
0
>(20)-(18)
No. of days
35
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CAPITAL ADEQUACY
($m)
Tier 1
Share capital
Disclosed reserves and others
Less: Goodwill
Total
Tier 2
Cumulative general allowances
Subordinated debts
Others
Total
Total capital
Risk-weighted assets
Capital adequacy ratio (%)
Tier I ratio
Tier II ratio
Total (Tier I & II) ratio
30 Jun 2007
31 Mar 2007
31 Dec 2006
30 Jun 2006
4,127
17,479
(5,843)
15,763
4,094
16,794
(5,840)
15,048
4,042
16,556
(5,840)
14,758
3,942
15,710
(5,833)
13,819
1,157
7,612
119
8,888
1,127
4,998
197
6,322
1,033
5,038
103
6,174
1,001
4,893
19
5,913
24,651
167,830
21,370
156,991
20,932
144,086
19,732
137,375
9.4
5.3
14.7
9.6
4.0
13.6
10.2
4.3
14.5
10.1
4.3
14.4
Based on regulatory guidelines, the Group’s tier-1 fell to 9.4% from 9.6% in the previous quarter as the amount of risk
weighted assets increased with a higher customer loan base.
UNREALISED VALUATION SURPLUS
($m)
Properties
Financial investments
Total
30 Jun 2007
31 Mar 2007
31 Dec 2006
30 Jun 2006
406
17
423
384
25
409
371
11
382
415
16
431
The amount of unrealised valuation surplus for properties and financial investments increased to $423 million from $409
million in the previous quarter as market valuations improved.
19
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Consolidated Income Statement
2nd Qtr
2007
2nd Qtr
20061/
+/(-)
%
1st Qtr
2007
1st Half
2007
1st Half
20061/
+/(-)
%
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
2,252
1,225
1,027
371
97
(49)
79
26
1,931
1,034
897
296
173
(59)
12
89
17
18
14
25
(44)
17
>100
(71)
2,124
1,150
974
309
171
(46)
121
13
4,376
2,375
2,001
680
268
(95)
200
39
3,666
1,919
1,747
558
336
(111)
50
98
19
24
15
22
(20)
14
>100
(60)
Total income
1,551
1,408
10
1,542
3093
2,678
15
Expenses
Employee benefits
Depreciation of properties and other fixed assets
Other expenses
Allowances for credit and other losses
354
30
276
145
321
30
243
62
10
14
>100
360
32
266
105
714
62
542
250
621
63
474
93
15
(2)
14
>100
Total expenses
805
656
23
763
1,568
1,251
25
Profit
Share of profits of associates
Profit before tax
746
25
771
752
20
772
(1)
25
-
779
26
805
1,525
51
1,576
1,427
32
1,459
7
59
8
Income tax expense
Net profit
151
620
131
641
15
(3)
152
653
303
1,273
264
1,195
15
7
560
60
620
603
38
641
(7)
58
(3)
617
36
653
1,177
96
1,273
1,121
74
1,195
5
30
7
In $ millions
Attributable to:
Shareholders
Minority interests
Note:
1/
Figures for 2006 have been reclassified to make them consistent with the current year’s presentation
20
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Balance Sheets
30 Jun
2007
GROUP
31 Mar
31 Dec
2007
2006 2/
30 Jun
20061/
11,848
14,909
28,161
21,103
9,627
96,909
23,026
2,517
643
5,843
1,524
20
6,761
10,570
15,333
22,872
20,042
8,516
92,568
23,656
3,299
597
5,840
1,446
18
5,164
11,846
12,843
25,273
16,496
8,215
85,149
22,261
2,866
603
5,840
1,481
20
4,479
8,103
14,416
18,150
19,598
9,955
81,245
22,258
3,125
551
5,833
1,556
56
4,743
222,891
209,921
197,372
189,589
Due to banks
Due to non-bank customers
Financial liabilities at fair value through profit or loss 4/
Negative replacement values
Bills payable
Current tax liabilities
Deferred tax liabilities
Other liabilities
Other debt securities in issue 5/
- due within one year
- due after one year
Subordinated term debts
9,956
132,294
22,903
9,766
539
874
140
8,873
5,933
5,755
178
9,324
11,165
126,913
21,898
8,257
497
830
119
7,840
4,332
4,038
294
6,293
7,863
122,092
19,708
7,873
511
766
137
6,677
3,950
3,682
268
6,749
10,971
110,085
22,503
9,703
373
660
51
6,109
2,919
1,529
1,390
6,406
TOTAL LIABILITIES
200,602
188,144
176,326
22,289
21,777
4,127
(74)
7,449
8,139
In $ millions
30 Jun
2007
COMPANY
31 Mar
31 Dec
2007
2006 2/
30 Jun
20061/
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 3/
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
-
-
-
-
6,744
6,977
6,927
6,822
6,744
6,977
6,927
6,822
6
6
8
6
169,780
6
6
8
6
21,046
19,809
6,738
6,971
6,919
6,816
4,094
(111)
7,298
8,149
4,042
(111)
7,182
7,562
3,942
(111)
6,705
6,872
4,127
53
2,558
4,094
53
2,824
4,042
53
2,824
3,942
51
2,823
19,641
19,430
18,675
17,408
6,738
6,971
6,919
6,816
Minority interests
2,648
2,347
2,371
2,401
-
-
-
-
TOTAL EQUITY
22,289
21,777
21,046
19,809
6,738
6,971
6,919
6,816
13,790
93,567
1,818,734
12,984
87,880
1,636,225
12,187
86,065
1,378,916
11,124
77,982
1,403,137
4.56
4.54
4.49
4.45
4.39
4.34
TOTAL ASSETS
LIABILITIES
NET ASSETS
EQUITY
Share capital
Treasury shares
Other reserves
Revenue reserves
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/
2/
3/
4/
5/
Figures for 2006 have been reclassified to make them consistent with the current year’s presentation
Audited
Includes customer loans, interbank assets, other government securities and treasury bills, corporate debt securities and equity securities
Includes customer deposits, interbank liabilities, other debt securities in issue and other financial liabilities
Includes secured amount of $3,953 million as at 30 June 2007 (31 March 2007: $3,124 million; 31 December 2006: $2,743 million; 30 June 2006: $2,384 million). These are mainly secured by properties and securities
21
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Consolidated Statement of Changes in Equity
GROUP
In $ millions
Balance at 1 January 2007
Exercise of share options
Ordinary
shares
3,976
Convertible
preference
shares
66
Share
premium
-
Treasury
shares
Other
reserves
(111)
7,182
Revenue
reserve
7,562
Minority
interests
2,371
85
Total
equity
21,046
85
Net exchange translation adjustments
18
Share of associates’ reserves
18
18
Cost of share-based payments
18
18
(37)
-
Draw-down of reserves upon vesting of performance shares
37
(1)
17
Available-for-sale investments/Cash flow hedge:
- Net valuation taken to equity
- Transferred to income statement on sale
- Tax on items taken directly to or transferred from equity
334
334
(105)
(105)
(9)
Net profit for the period
(9)
1,177
Appropriation from income statement 1/
30
96
1,273
(30)
-
Final dividends paid for previous year
(310)
(310)
Interim dividends paid for current year
(260)
(260)
Dividends paid to minority interests
(72)
(72)
Change in minority interests
254
254
Balance at 30 June 2007
4,061
66
-
(74)
7,449
8,139
2,648
22,289
Balance at 1 January 2006
1,498
66
2,269
(117)
6,841
6,167
2,466
19,190
Exercise of share options
Effects of Companies (Amendment) Act 2005
74
7
2,304
(2,276)
81
(28)
Net exchange translation adjustments
-
(24)
(60)
(84)
Share of associates’ reserves
(5)
(5)
Cost of share-based payments
15
15
(6)
-
- Net valuation taken to equity
(66)
(66)
- Transferred to income statement on sale
(25)
(25)
Draw-down of reserves upon vesting of performance shares
6
Available-for-sale investments/Cash flow hedge:
- Tax on items taken directly to or transferred from equity
3
3
Net profit for the period
1,121
Final dividends paid for previous year
(212)
(212)
Interim dividends paid for current year
(204)
(204)
Dividends paid to minority interests
Change in minority interests
Balance at 30 June 2006
3,876
66
-
(111)
6,705
6,872
74
1,195
(74)
(74)
(5)
(5)
2,401
19,809
Note:
1/
Includes appropriation from prior year’s net profit
22
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Statement of Changes in Equity
COMPANY
Convertible
preference
shares
Share
premium
Revenue
reserve
Total equity
2,824
6,919
304
304
Final dividends paid for previous year
(310)
(310)
Interim dividends paid for current year
Balance at 30 June 2007
4,061
66
-
53
(260)
2,558
(260)
6,738
Balance at 1 January 2006
1,498
66
2,269
7
(2,276)
77
2,874
6,784
In $ millions
Balance at 1 January 2007
Exercise of share options
Ordinary
shares
3,976
66
Other
reserves
-
53
85
85
Net profit for the period
Exercise of share options
Effects of Companies (Amendment) Act 2005
74
2,304
Cost of share-based payments
Net profit for the period
81
(28)
-
2
365
2
365
Final dividends paid for previous year
(212)
(212)
Interim dividends paid for current year
Balance at 30 June 2006
(204)
2,823
(204)
6,816
3,876
66
-
51
23
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Consolidated Cash Flow Statement
I In $ millions
1st Half
2007
1st Half
20061/
Cash flows from operating activities
Profit before tax
1,576
1,459
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
Profit before changes in operating assets & liabilities
250
62
(51)
(2)
(85)
1,750
93
63
(32)
(2)
(50)
1,531
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
2,093
10,202
3,195
3,074
2,580
2,021
3,654
(320)
1,463
440
Decrease/(Increase) 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
614
(1,556)
(2,891)
(5,803)
(11,894)
(626)
(3,143)
28
(4,655)
3,970
1,311
(3,694)
858
(2,079)
(177)
(63)
Tax paid
Net cash (used in)/generated from 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
Acquisition of interest in associates
Net cash generated from investing activities (2)
(2,582)
4,465
35
(66)
43
(4)
15
(91)
91
(5)
8
10
Cash flows from financing activities
Increase in share capital and share premium
Proceeds from issuance of subordinated term debts
Dividends paid to shareholders of the Company
Dividends paid to minority interests
85
3,044
(570)
(72)
81
1,428
(416)
(74)
Net cash generated from financing activities (3)
Exchange translation adjustments (4)
2,487
17
1,019
(27)
Net change in cash and cash equivalents (1)+(2)+(3)+(4)
Cash and cash equivalents at 1 January
Cash and cash equivalents at 30 June
Note:
1/
(70)
15,118
15,048
5,467
9,408
14,875
Figures for 2006 have been reclassified to make them consistent with the current year’s presentation
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 half ended 30 June 2007
is as follows:
1,510,835,033
At 1 January 2007
5,524,420
Exercise of share options pursuant to the DBSH Share Option Plan
At 30 June 2007
1,516,359,453
Weighted average number of shares for 1st half 2007
- ordinary shares
- fully diluted
1,513,970,755
1,586,495,248
The fully diluted shares took into account the effect of a full con
Incorporated in the Republic of Singapore
Company Registration Number: 199901152M
To: Shareholders
The DBS Group Holdings Ltd (“DBSH” or “the Company”) Board of Directors report unaudited financial
results for the second quarter ended 30 June 2007.
For the second quarter of 2007, the Directors have declared an interim gross dividend of 10 cents (second
quarter 2006: 13 cents) for each DBSH non-voting convertible preference share (“CPS”) and each DBSH
non-voting redeemable CPS, and 20 cents (second quarter 2006: 17 cents) for each DBSH ordinary
share.
The second quarter 2007 dividends will be paid less 18% Singapore income tax.
The second quarter ended 2007 dividends will be payable on 23 August 2007. DBS shares will be
quoted ex-dividend on 7 August 2007. Notice is hereby given that the Share Transfer Books and
Register of Members of the Company will be closed on 13 August 2007. 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 10 August 2007 will be registered to
determine shareholders' entitlement to the second quarter 2007 dividends. In respect of ordinary
shares in the securities accounts with The Central Depository (Pte) Limited (“CDP”), the second quarter
2007 dividends will be paid by DBSH to CDP, which will in turn distribute the dividend entitlements to
shareholders.
By order of the Board
Heng Lee Cheng (Ms)
Group Secretary
26 July 2007
Singapore
More information on the above announcement is available at www.dbs.com/investor
Performance Summary
Unaudited Financial Results
For the Second Quarter ended
30 June 2007
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
Value at Risk and Trading Income
Capital Adequacy
Unrealised Valuation Surplus
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
Confirmation by the Board
Page
2
4
6
6
7
7
8
10
12
13
17
17
18
19
19
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 2006, with the exception of the adoption of new or revised FRS and
Interpretations to FRS (“INT FRS”).
The Council on Corporate Disclosure and Governance (“CCDG”) issued several new or revised FRS and INT FRS, which are
effective 1 January 2007 for the Group.
•
•
•
•
•
•
•
Amendment to FRS 1: Presentation of Financial Statements – Capital Disclosures
FRS 32 (revised): Financial Instruments – Presentation
FRS 40 (new): Investment Property
FRS 107 (new): Financial Instruments – Disclosures
INT FRS 108: Scope of FRS 102 – Share-based Payment
INT FRS 109: Reassessment of Embedded Derivatives
INT FRS 110: Interim Financial Reporting and Impairment
2nd Qtr
2007
2nd Qtr
1/
2006
% chg
1st Qtr
2007
1st Half
2007
1st Half
1/
2006
1,027
371
97
897
296
173
14
25
(44)
974
309
171
2,001
680
268
1,747
558
336
(49)
(59)
17
(46)
(95)
(111)
14
79
26
1,551
12
35
1,354
>100
(26)
15
121
13
1,542
200
39
3,093
50
44
2,624
>100
(11)
18
660
891
594
760
11
17
658
884
1,318
1,775
1,158
1,466
14
21
Less: Allowances for credit and other losses
64
62
3
105
169
93
82
Share of profits of associates
25
20
25
26
51
32
59
852
718
19
805
1,657
1,405
18
664
549
21
617
1,281
1,067
20
(104)
54
NM
-
(104)
54
NM
560
603
(7)
617
1,177
1,121
5
98,957
30,858
222,891
141,272
200,602
19,641
83,410
20,411
189,589
120,875
169,780
17,408
19
51
18
17
18
13
94,294
25,619
209,921
136,443
188,144
19,430
98,957
30,858
222,891
141,272
200,602
19,641
83,410
20,411
189,589
120,875
169,780
17,408
19
51
18
17
18
13
Selected profit and loss items ($m)
Net interest income
Net fee and commission income
Net trading income
Net income from financial instruments
designated at fair value
Net income from financial investments
Other income
Total income
Less: Expenses
Profit before allowances
Profit before tax
Net profit attributable to shareholders
(“Net profit”)
2/
Add: One-time gains/(charge)
Net profit including one-time gains/(charge)
and goodwill charges
Selected balance sheet items
3/
Customer loans
4/
Interbank assets
Total assets
5/
Customer deposits
Total liabilities
Shareholders’ funds
Key financial ratio (%) (excluding one-time gains/(charge))
6/
Net interest margin
Non-interest/total income
Cost/income ratio
Return on assets
Return on equity 7/
Loan/deposit ratio
NPL ratio
Specific allowances (loans)/average loans
(bp)
Tier 1 capital adequacy ratio
Total capital adequacy ratio
2.21
33.8
42.6
1.23
13.60
70.0
1.4
2.23
33.8
43.9
1.18
12.70
69.0
1.9
2.21
36.8
42.7
1.21
12.99
69.1
1.5
2.21
35.3
42.6
1.22
13.41
70.0
1.4
2.23
33.4
44.1
1.15
12.55
69.0
1.9
19
16
-
10
18
9.4
14.7
10.1
14.4
9.6
13.6
9.4
14.7
10.1
14.4
2
% chg
15
22
(20)
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Per share data ($)
Per basic share
– earnings excluding one-time
gains/(charge) and goodwill charges
– earnings
7/
– net book value
Per diluted share
– earnings excluding one-time
gains/(charge) and goodwill charges
– earnings
– net book value 7/
2nd Qtr
2007
2nd Qtr
2006 1/
1.76
% chg
1st Qtr
2007
1st Half
2007
1st Half
20061/
1.46
1.63
1.69
1.42
1.69
12.66
1.50
11.29
1.63
12.54
1.63
12.66
1.45
11.29
1.69
1.40
1.56
1.63
1.36
1.63
12.45
1.44
11.08
1.56
12.39
1.56
12.45
1.40
11.08
% chg
Notes:
1/ Figures for 2006 have been reclassified to make them consistent with the current year’s presentation
2/ One-time gains include gains from sale of buildings in Hong Kong and allowance write-back for a Singapore property; one-time charge includes impairment charge for Thai
investment
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 asset value and return on equity
Net profit for the second quarter rose 21% from a year
ago and 8% from the previous quarter to $664 million
before one-time items. Net interest and fee income
reached new highs as DBS has continued to capture
higher business volumes across a wide range of
activities and customer segments.
An impairment charge of $159 million was recorded
during the quarter for DBS’ 16.1% stake in TMB Bank
in Thailand to reflect current market valuation for the
investment. In addition, there was a $55 million
allowance write-back for a Singapore property as
market valuations improved. Including both one-time
items, net profit amounted to $560 million.
Net interest income increased 5% from the previous
quarter and 14% from a year ago to $1.03 billion, the
first time quarterly net interest income has crossed
$1 billion. The rise was driven by higher loan
volumes, which expanded 5% for the quarter and
19% for the year. Net fee income of $371 million was
25% higher than a year ago, with both corporate and
consumer activities contributing to the increase. Net
trading income fell to $97 million as customer flows
and trading gains were not as favourable. Total
income rose 15% from a year ago to $1.55 billion but
was little changed from the previous quarter.
Total expenses grew 11% from a year ago to $660
million. As with recent quarters, the year-on-year
increase was led by staff and computerisation costs.
Total expenses were stable from the previous
quarter, with a decline in staff costs being offset by
higher revenue-related expenses. The cost-income
ratio of 43% was unchanged from the previous
quarter and better than the 44% a year ago.
Asset quality continued to improve as the non-performing
loan ratio fell to 1.4% from 1.5% in the previous quarter
and 1.9% a year ago. Specific allowances for loans of $47
million corresponded to a charge of 19 basis points of
loans, within the range of recent quarters. Total cumulative
allowances amounted to 124% of total non-performing
assets.
For the first half, net profit before one-time items rose 20%
to $1.28 billion as an 18% increase in total income
surpassed a 14% rise in total expenses from a year ago.
Return on equity for the first half rose from 12.6% in
the previous year to 13.4% as return on assets
improved from 1.15% to 1.22%.
3
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET INTEREST INCOME
Average balance
sheet
2nd Qtr 2007
Average
Average
rate
balance Interest
(%)
($m)
($m)
2nd Qtr 2006
Average
Average
rate
balance Interest
(%)
($m)
($m)
1st Qtr 2007
Average
balance
($m)
Interest
($m)
Average
rate
(%)
Interest-bearing
assets
Customer loans
Interbank assets
Securities
Total
94,742
36,341
55,368
186,451
1,322
303
627
2,252
5.60
3.35
4.54
4.85
80,794
30,966
49,934
161,694
1,134
249
548
1,931
5.63
3.23
4.40
4.79
90,121
34,765
52,923
177,809
1,248
301
575
2,124
5.62
3.51
4.40
4.84
Interest-bearing
liabilities
Customer deposits
Other borrowings
Total
139,705
36,900
176,605
754
471
1,225
2.17
5.12
2.78
120,945
32,484
153,429
665
369
1,034
2.20
4.56
2.70
134,312
34,236
168,548
746
404
1,150
2.25
4.79
2.77
1,027
2.21
897
2.23
974
2.21
Net interest
1/
income/margin
Average balance
sheet
1st Half 2007
1st Half 2006
Average
Average Average
Average
balance Interest
rate balance Interest
rate
($m)
($m)
(%)
($m)
($m)
(%)
Interest-bearing
assets
Customer loans
Interbank assets
Securities
Total
92,108
35,880
54,005
181,993
2,570
604
1,202
4,376
5.63
3.40
4.49
4.85
80,075
28,992
49,355
158,422
2,172
443
1,051
3,666
5.47
3.09
4.29
4.67
Interest-bearing
liabilities
Customer deposits
Other borrowings
Total
137,089
35,447
172,536
1,500
875
2,375
2.21
4.98
2.78
119,242
31,502
150,744
1,233
686
1,919
2.08
4.39
2.57
2,001
2.21
1,747
2.23
Net interest
1/
income/margin
Note:
1/ Net interest margin is net interest income expressed as a percentage of average interest-earning assets
Compared to both the previous quarter and a year
ago, the increase in net interest income was due to
higher asset volumes as customer loans, interbank
assets and securities volume grew.
lower cost of deposits was offset by higher costs for
other borrowings, which was due to the inclusion of
interest costs for US$2 billion subordinated debts
issued in May.
Net interest margin was stable at 2.21%. Compared to
the previous quarter, an increase in yields for
securities was offset by lower customer loan and
interbank asset yields. Customer deposit costs fell as
a result of an improved deposit mix. The benefit from
For the first half, net interest income rose 15% from a
year ago to $2.00 billion on higher asset volumes. Net
interest margin was little changed at 2.21%.
4
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
2nd Qtr 2007 versus 2nd Qtr 2006
Volume and rate analysis ($m)
Increase/(decrease) due to change in
2nd Qtr 2007 versus 1st Qtr 2007
Volume
Rate
Net
change
Customer loans
Interbank assets
Securities
Total
195
44
59
298
(7)
10
20
23
188
54
79
321
64
14
27
105
(5)
(15)
19
(1)
59
(1)
46
104
Interest expense
Customer deposits
Other borrowings
Total
103
43
146
(14)
59
45
89
102
191
30
31
61
(29)
30
1
1
61
62
Net impact on interest income
152
(22)
130
44
(2)
42
Volume
Rate
Net
change
Interest income
Due to change in number of days
Net Interest Income
-
11
130
53
1st Half 2007 versus 1st Half 2006
Volume and rate analysis ($m)
Increase/(decrease) due to change in
Volume
Rate
Net
change
Customer loans
Interbank assets
Securities
Total
326
106
99
531
72
55
52
179
398
161
151
710
Interest expense
Customer deposits
Other borrowings
Total
184
77
261
83
112
195
267
189
456
Net impact on interest income
270
(16)
254
Interest income
Due to change in number of days
Net Interest Income
254
5
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET FEE AND COMMISSION INCOME
($m)
2nd Qtr
2007
2nd Qtr
2006
% chg
1st Qtr
2007
1st Half
2007
1st Half
2006
% chg
58
48
50
55
9
22
35
13
68
13
371
33
44
47
50
7
21
28
15
38
13
296
76
9
6
10
29
5
25
(13)
79
25
53
29
48
58
8
19
27
9
47
11
309
111
77
98
113
17
41
62
22
115
24
680
70
63
91
84
15
40
52
37
80
26
558
59
22
7
35
13
3
19
(41)
44
(8)
22
Stockbroking
Investment banking
Trade and remittances
Loan related
Guarantees
Deposit related
Credit card
Fund management
Wealth management
Others
Total
wealth management, stockbroking, credit cards
and investment banking activities.
Net fee and commission income grew 25% from a
year ago and 20% from the previous quarter to $371
million as contributions from most corporate and
consumer activities increased with improved economic
conditions. The increase this quarter was led by
For the first half, net fee and commission income
grew 22% from a year ago to $680 million.
OTHER NON-INTEREST INCOME
($m)
Net trading income
From trading businesses
From other businesses
Net income from financial instruments
designated at fair value
Net income on financial investments
Net gain on fixed assets 1/
Others (include dividend and rental
income)
Total
2nd Qtr
2007
2nd Qtr
2006
% chg
1st Qtr
2007
1st Half
2007
1st Half
2006
% chg
97
100
(3)
173
180
(7)
(44)
(44)
57
171
169
2
268
269
(1)
336
348
(12)
(20)
(49)
(59)
17
(46)
(95)
(111)
14
79
2
12
2
>100
-
121
2
200
4
50
2
>100
24
33
(27)
11
35
42
(17)
153
161
(5)
259
412
319
29
Note:
1/ Excludes one-time gains
Net trading income from trading businesses fell to
$100 million from $169 million in the previous
quarter and $180 million a year ago. In both
comparative periods there had been stronger
customer flows for hedging products as well as
higher trading gains in foreign exchange, interest
rate and equity instruments.
Net income from sales of investment securities
amounted to $79 million from the sale of debt and
equity investments as market conditions were
conducive. The gains were higher than the $12
million a year ago but below the $121 million in the
previous quarter.
For the first half, net trading income from trading
businesses fell 23% from a year ago to $269
million, while net income from sales of investment
securities increased from $50 million to $200
million.
6
(23)
92
100
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
EXPENSES
($m)
Staff
Occupancy
Computerisation
Revenue-related
Others
Total
Staff headcount at period-end
2nd Qtr
2007
2nd Qtr
2006
% chg
1st Qtr
2007
1st Half
2007
1st Half
2006
% chg
354
51
111
35
109
660
13,364
321
45
97
26
105
594
12,453
10
13
14
35
4
11
7
360
53
112
25
108
658
13,177
714
104
223
60
217
1,318
13,364
621
91
189
49
208
1,158
12,453
15
14
18
22
4
14
7
Total expenses increased 11% from a year ago to $660
million, but were stable on quarter.
in technology to support business expansion. They were
little changed from the previous quarter.
Staff costs rose 10% from a year ago on a 7% increase
in headcount, but they were 2% below the previous
quarter as salary pressures were managed.
For the first half, total expenses increased 14% from the
previous year to $1.32 billion.
Computerisation costs rose 14% from a year ago from
higher depreciation charges and continued investments
ALLOWANCES FOR CREDIT AND OTHER LOSSES
($m)
2nd Qtr
2007
2nd Qtr
2006
% chg
1st Qtr
2007
1st Half
2007
1st Half
2006
% chg
General allowances (“GP”)
24
34
(29)
102
126
48
>100
Specific allowances (“SP”) for loans
Singapore
Hong Kong
Other countries
47
9
18
20
33
23
19
(9)
42
(61)
(5)
NM
1
(18)
19
-
48
(9)
37
20
73
36
37
-
(34)
NM
NM
Specific allowances (“SP”) for securities,
1/
properties and other assets
(7)
(5)
(40)
2
(5)
(28)
82
Total
64
62
3
105
169
93
82
Note:
1/ Excludes one-time gain/(charge)
Specific allowances for loans rose to $47 million for
corporate and SME loans in Singapore, Hong Kong and
the rest of the region. In the previous quarter there had
been a net write-back for loans in Singapore, which offset
a charge in Hong Kong.
For the first half, total allowances rose 82% to $169
million as a result of higher general allowances for new
loans. Specific allowances for loans declined 34% to $48
million, corresponding to 10 basis points of loans
compared with 18 basis points in first half 2006.
General allowances of $24 million were taken for new
loans and off-balance sheet commitments booked during
the quarter.
7
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY BUSINESS UNIT
($m)
CBG
EB
CIB
GFM
CTU
Central
Ops
Total
423
175
258
5
335
201
91
87
45
160
172
188
102
36
222
236
51
125
3
163
94
(8)
9
77
(99)
27
79
(25)
(105)
1,027
524
660
64
852
450
144
266
9
319
194
118
91
18
203
158
192
88
43
219
180
68
128
1
124
62
18
11
69
(70)
28
74
34
(129)
974
568
658
105
805
436
130
244
11
311
176
75
86
16
149
142
161
94
44
165
152
95
111
137
81
(28)
9
44
(90)
24
50
(9)
(88)
897
457
594
62
718
Profit before tax
873
319
524
14
654
395
209
178
63
363
330
380
190
79
441
416
119
253
4
287
156
10
20
146
(169)
55
153
9
(234)
2,001
1,092
1,318
169
1,657
1st Half 2006 1/
Net interest income
Non-interest income
Expenses
Allowances for credit and other losses
Profit before tax
857
251
476
18
614
348
159
167
41
299
274
274
182
32
334
297
163
207
1
255
149
(17)
18
(1)
115
(178)
47
108
2
(212)
1,747
877
1,158
93
1,405
Selected balance sheet and other
items
30 June 2007
Total assets before goodwill
Total liabilities
Capital expenditure for 2nd Qtr 2007
Depreciation for 2nd Qtr 2007
31,871
81,168
11
7
22,028
19,898
1
-
47,354
22,305
4
1
85,218
49,193
2
2
27,228
1,404
-
3,452
26,689
18
20
217,151
200,657
36
30
31 Mar 2007
Total assets before goodwill
Total liabilities
Capital expenditure for 1st Qtr 2007
Depreciation for 1st Qtr 2007
31,018
77,803
13
6
20,956
19,697
1
45,097
23,438
2
1
75,205
42,141
9
3
28,698
1,384
-
3,107
23,681
6
21
204,081
188,144
30
32
Selected income items
2nd Qtr 2007 1/
Net interest income
Non-interest income
Expenses
Allowances for credit and other losses
Profit before tax
1st Qtr 2007
Net interest income
Non-interest income
Expenses
Allowances for credit and other losses
Profit before tax
1/
2nd Qtr 2006
Net interest income
Non-interest income
Expenses
Allowances for credit and other losses
Profit before tax
1st Half 2007 1/
Net interest income
Non-interest income
Expenses
Allowances for credit and other losses
8
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
31 Dec 2006
Total assets before goodwill
Total liabilities
Capital expenditure for 4th Qtr 2006
Depreciation for 4th Qtr 2006
30 Jun 2006
Total assets before goodwill
Total liabilities
Capital expenditure for 2nd Qtr 2006
Depreciation for 2nd Qtr 2006
Central
Ops
Total
28,119
3,175
191,532
998
-
24,418
56
19
176,327
113
35
28,482
1,240
2
2
1,895
19,794
27
14
183,756
169,780
52
30
CBG
EB
CIB
GFM
CTU
30,655
20,067
40,090
76,237
20
10
18,827
1
1
19,733
32
3
69,426
36,114
4
2
28,985
71,977
12
6
18,988
17,660
5
4
38,164
16,707
1
1
67,242
42,402
5
3
Note:
1/ Income, allowances for credit and other losses and profits exclude one-time gains/(charge)
Consumer Banking’s (CBG) net interest income fell
from the previous quarter and a year ago as
increased loan and deposit volumes as well as
higher loan spreads were more than offset by a
decline in deposit spreads in Singapore. Noninterest income was higher than both comparative
periods from higher unit trust sales, particularly in
Singapore. Expenses were lower than the previous
quarter as staff costs declined. Total allowances
fell during the quarter as higher general allowances
were more than offset by a write-back of specific
allowances in Singapore.
Enterprise Banking’s (EB) net interest income was
higher than both comparative periods due to an
increase in loan and deposit volumes as well as
higher loan spreads. Non-interest income was
below the previous quarter, when there were strong
sales of foreign exchange products to SME and
corporate clients in Hong Kong. Expenses were
lower than the previous quarter as bonus accruals
declined in line with the lower income. Total
allowances rose due to higher specific allowances
in Singapore.
loan volumes increased. Non-interest income was
higher than a year ago from increased fee-based
activities. There was a slight decline in non-interest
income from the previous quarter, when capital gains
from the sale of equity investments had been higher.
Expenses increased due to higher allocations for
support costs, while staff costs were little changed from
both comparative periods. Total allowances fell due to
lower general allowances. There was a charge for
specific allowances this quarter, compared with a writeback in both comparative periods.
Global Financial Markets’ (GFM) net interest income
rose from both comparative periods due to higher
contributions from money markets, while non-interest
income declined due to lower trading gains.
Central Treasury Unit (CTU) manages the Group’s
asset and liability interest rate positions as well as
investments of the Group’s excess liquidity. 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 was higher than both comparative periods as
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
2nd Qtr 2007
Net interest income
Non-interest income
Expenses
Allowances for credit and other losses
Profit before tax
672
317
414
(8)
591
277
127
163
21
220
25
28
29
21
3
35
34
38
21
27
18
18
16
9
11
1,027
524
660
64
852
1st Qtr 2007
Net interest income
Non-interest income
Expenses
Allowances for credit and other losses
Profit before tax
648
343
428
59
511
271
135
170
22
214
17
28
21
24
22
52
27
6
60
16
10
12
18
(4)
974
568
658
105
805
2nd Qtr 2006
Net interest income
Non-interest income
Expenses
Allowances for credit and other losses
563
299
375
48
286
87
164
25
10
30
20
(1)
24
26
20
(5)
14
15
15
(5)
897
457
594
62
Profit before tax
444
184
21
50
19
718
1st Half 2007 1/
Net interest income
Non-interest income
Expenses
Allowances for credit and other losses
Profit before tax
1,320
660
842
51
1,102
548
262
333
43
434
42
56
50
21
27
57
86
65
27
87
34
28
28
27
7
2,001
1,092
1,318
169
1,657
1st Half 2006 1/
Net interest income
Non-interest income
Expenses
Allowances for credit and other losses
Profit before tax
1,089
589
730
45
905
564
177
326
44
371
19
49
34
3
31
46
40
42
(6)
80
29
22
26
7
18
1,747
877
1,158
93
1,405
143,341
133,324
126,499
124,078
46,819
45,960
44,868
38,820
9,137
7,944
7,792
7,258
7,265
6,142
5,131
4,487
10,589
10,711
7,242
9,113
217,151
204,081
191,532
183,756
Selected income items
1/
1/
Total assets before goodwill
30 Jun 2007
31 Mar 2007
31 Dec 2006
30 Jun 2006
Note
1/ Income, allowances for credit and other losses and profits exclude one-time gains/(charge)
10
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Singapore
Net interest income was higher than both comparative
periods as loans and deposits expanded. Non-interest
income increased from a year ago due to higher feebased activities, but was below the previous quarter as
trading income and gains from the sale of investment
securities fell.
Expenses fell from the previous quarter as staff costs
declined. Compared to a year ago, the increase in
expenses was led by computerisation and staff expenses.
year ago. Exchange translation effects from the previous
quarter were minimal.
Net interest income rose from the previous quarter due to
higher loan volumes. It was lower than a year ago from
exchange translation effects.
Non-interest income fell from the previous quarter as a
decline in contributions from the sale of foreign exchange
hedging products to SME and corporate customers was
partially offset by increased unit trusts sales to individual
customers. Sales of both products were higher than a year
ago.
Compared to the previous quarter, general allowances
declined. There was a charge for specific allowances for
loans this quarter compared to a write-back in the
previous quarter.
Expenses fell from the previous quarter due to lower bonus
accruals. Compared to a year ago, lower bonus accruals
were offset by higher non-staff expenses.
Hong Kong
Other regions
The second quarter’s results incorporate an appreciation of
the Singapore dollar against Hong Kong dollar of 4% from a
Outside of Singapore and Hong Kong, the largest
contributions are from Indonesia and Greater China.
11
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CUSTOMER LOANS
1/
($m)
30 Jun 2007
31 Mar 2007
31 Dec 2006
30 Jun 2006
100,475
95,785
88,080
84,835
544
974
98,957
532
959
94,294
564
886
86,630
574
851
83,410
By business unit
Consumer Banking
Enterprise Banking
Corporate and Investment Banking
Others
Total (Gross)
31,082
21,984
40,374
7,035
100,475
30,196
20,915
38,757
5,917
95,785
29,538
20,101
33,764
4,677
88,080
28,509
19,488
30,937
5,901
84,835
By geography
Singapore
Hong Kong
Rest of Greater China
South and South-east Asia
Rest of the world
Total (Gross)
54,954
29,729
4,884
3,784
7,124
100,475
52,585
28,647
4,770
3,546
6,237
95,785
48,789
27,216
4,443
2,993
4,639
88,080
47,267
26,505
4,086
2,662
4,315
84,835
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)
13,321
12,179
26,124
9,677
9,984
11,979
9,269
7,942
100,475
12,512
10,700
25,776
8,852
9,249
12,703
8,693
7,300
95,785
10,867
10,883
25,043
8,930
7,709
9,827
8,110
6,711
88,080
10,506
10,500
23,994
8,835
7,560
10,112
7,502
5,826
84,835
By currency
Singapore dollar
Hong Kong dollar
US dollar
Others
Total (Gross)
39,328
27,536
19,763
13,848
100,475
38,066
26,592
17,542
13,585
95,785
35,708
24,942
15,895
11,535
88,080
34,694
24,213
15,737
10,191
84,835
Gross
Less:
Specific allowances
General allowances
Net total
Note:
1/ Includes customer loans classified as financial assets at fair value through profit or loss on the balance sheet
Net customer loans expanded 19% from a year ago and
5% from the previous quarter to $99.0 billion. The growth
during the quarter was led by corporate and SME loans in
Singapore, Hong Kong and other parts of the region.
Consumer loans in Singapore also increased as new
disbursements and applications for housing loans
remained higher than a year ago.
Loans in Hong Kong rose 4% in local currency terms
during the quarter, with SME and corporate loans
contributing to the increase.
12
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NON-PERFORMING ASSETS AND LOSS ALLOWANCE COVERAGE
1/
By business unit
NPA
($m)
SP
($m)
GP
($m)
NPL
(% of loans)
(GP+SP)/NPA
(%)
(GP+SP)/
unsecured
NPA
(%)
30 Jun 2007
Consumer Banking
282
76
310
0.9
137
330
Enterprise Banking
729
349
217
3.3
78
150
Corporate and Investment
Banking
324
149
413
0.8
173
295
37
28
83
0.6
297
460
1,372
602
1,023
1.4
118
229
37
85
17
5
80
129
-
260
158
587
2,137
1,494
624
1,232
-
124
254
318
730
88
363
301
206
1.1
3.5
122
78
284
145
282
124
386
0.7
181
366
70
26
107
1.2
190
538
1,400
601
1,000
1.5
114
231
Debt securities
37
16
76
-
249
565
Contingent liabilities
Total non-performing
assets
23
8
126
-
571
1,147
1,460
625
1,202
-
125
254
307
691
95
324
294
198
1.0
3.4
127
76
356
150
396
183
336
1.2
131
224
66
23
100
1.4
185
499
1,460
625
928
1.7
106
217
36
37
15
9
66
114
-
223
327
531
1,173
1,533
649
1,108
-
115
237
Others
Total non-performing loans
(“NPL”)
Debt securities
Contingent liabilities
Total non-performing
assets (“NPA”)
31 Mar 2007
Consumer Banking
Enterprise Banking
Corporate and Investment
Banking
Others
Total non-performing loans
31 Dec 2006
Consumer Banking
Enterprise Banking
Corporate and Investment
Banking
Others
Total non-performing loans
Debt securities
Contingent liabilities
Total non-performing
assets
13
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By business unit
NPA
($m)
SP
($m)
GP
($m)
NPL
(% of loans)
(GP+SP)/NPA
(%)
(GP+SP)/
unsecured
NPA
(%)
Consumer Banking
331
110
284
1.2
119
320
Enterprise Banking
721
300
192
3.7
68
144
Corporate and Investment
Banking
438
189
308
1.4
113
228
98
28
108
1.7
141
443
1,588
627
892
1.9
96
213
37
21
15
9
75
107
-
243
552
611
1,104
1,646
651
1,074
-
105
234
30 Jun 2006
Others
Total non-performing loans
(“NPL”)
Debt securities
Contingent liabilities
Total non-performing
assets (“NPA”)
Note
1/ Allowances for credit and other losses exclude one-time gain/(charge)
14
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By geography
30 Jun 2007
Singapore
Hong Kong
Rest of Greater China
South and South-east
Asia
Rest of the World
Total non-performing
loans
Debt securities
Contingent liabilities
Total non-performing
assets
31 Mar 2007
Singapore
Hong Kong
Rest of Greater China
South and South-east
Asia
Rest of the World
Total non-performing
loans
NPA
($m)
SP
($m)
GP
($m)
NPL
(% of loans)
(GP+SP)/NPA
(%)
(GP+SP)/
unsecured
NPA
(%)
707
356
72
321
159
24
487
299
70
1.4
1.2
1.1
114
129
131
239
246
395
147
74
88
2.5
111
127
90
24
79
0.9
114
325
1,372
602
1,023
1.4
118
229
37
85
17
5
80
129
-
260
158
587
2,137
1,494
624
1,232
-
124
254
780
361
67
332
161
20
465
291
63
1.7
1.3
1.2
102
125
124
221
233
389
111
63
79
2.0
127
172
81
25
102
0.9
157
380
1,400
601
1,000
1.5
114
231
37
23
16
8
76
126
-
249
571
565
1,147
1,460
625
1,202
-
125
254
811
363
68
359
150
20
443
278
56
1.8
1.3
1.3
99
118
112
212
245
358
112
61
72
2.5
119
161
106
35
79
1.6
109
199
1,460
625
928
1.7
106
217
Debt securities
36
15
66
-
223
531
Contingent liabilities
Total non-performing
assets
37
9
114
-
327
1,173
1,533
649
1,108
-
115
237
851
394
87
341
144
36
442
281
44
1.9
1.5
2.1
92
108
93
218
243
230
125
68
69
2.8
110
183
131
38
56
2.5
71
135
1,588
627
892
1.9
96
213
Debt securities
37
15
75
-
243
611
Contingent liabilities
Total non-performing
assets
21
9
107
-
552
1,104
1,646
651
1,074
-
105
234
Debt securities
Contingent liabilities
Total non-performing
assets
31 Dec 2006
Singapore
Hong Kong
Rest of Greater China
South and South-east
Asia
Rest of the World
Total non-performing
loans
30 Jun 2006
Singapore
Hong Kong
Rest of Greater China
South and South-east
Asia
Rest of the World
Total non-performing
loans
15
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By industry
($m)
30 Jun 2007
31 Mar 2007
31 Dec 2006
30 Jun 2006
NPA
SP
NPA
SP
NPA
SP
NPA
SP
Manufacturing
Building and construction
Housing loans
General commerce
Transportation, storage &
communications
338
91
184
339
34
197
39
43
150
11
278
80
197
333
25
155
39
51
151
12
314
107
224
336
25
170
50
56
146
12
349
119
246
339
31
178
39
68
133
14
Financial institutions, investment
& holding companies
101
19
170
47
173
47
189
47
Professionals & private
individuals (except housing
loans)
Others
Total non-performing loans
142
61
173
63
142
65
181
75
143
1,372
82
602
144
1,400
83
601
139
1,460
79
625
134
1,588
73
627
37
85
17
5
37
23
16
8
36
37
15
9
37
21
15
9
Total non-performing assets
1,494
624
1,460
625
1,533
649
1,646
651
By loan classification
($m)
30 Jun 2007
Debt securities
Contingent liabilities
Non-performing assets
Substandard
Doubtful
Loss
Total
Restructured assets
Substandard
Doubtful
Loss
Total
31 Mar 2007
31 Dec 2006
30 Jun 2006
NPA
SP
NPA
SP
NPA
SP
NPA
SP
904
273
317
1,494
73
232
319
624
890
215
355
1,460
69
201
355
625
939
243
351
1,533
82
216
351
649
1,053
224
369
1,646
82
200
369
651
200
47
55
302
28
45
55
128
200
52
43
295
25
49
43
117
218
66
42
326
29
48
42
119
318
48
39
405
41
34
39
114
By collateral type
($m)
30 Jun 2007
31 Mar 2007
31 Dec 2006
30 Jun 2006
NPA
NPA
NPA
NPA
Unsecured non-performing assets
731
720
740
738
Secured non-performing assets by collateral type
Properties
Shares and debentures
Fixed deposits
Others
454
47
41
221
497
53
39
151
556
46
38
153
666
35
38
169
1,494
1,460
1,533
1,646
Total
16
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By period overdue
($m)
Not overdue
180 days overdue
total
30 Jun 2007
31 Mar 2007
31 Dec 2006
30 Jun 2006
NPA
NPA
NPA
NPA
333
388
144
629
1,494
332
297
160
671
1,460
413
332
128
660
1,533
447
381
138
680
1,646
Including debt securities and contingent liabilities, the
amount of non-performing assets fell 9% from a year
ago to $1.49 billion, but was 2% higher than the
previous quarter.
Non-performing loans (NPLs) fell 14% from a year ago
and 2% from the previous quarter to $1.37 billion. NPL
rates for consumer and SME loans improved from the
previous quarter. By region, NPL rates for Singapore,
Hong Kong and Greater China were better than in
March 2007.
FUNDING SOURCES
($m)
30 Jun 2007
31 Mar 2007
31 Dec 2006
30 Jun 2006
141,272
11,898
50,080
19,641
222,891
136,443
12,205
41,843
19,430
209,921
131,373
8,537
38,787
18,675
197,372
120,875
11,769
39,537
17,408
189,589
30 Jun 2007
31 Mar 2007
31 Dec 2006
30 Jun 2006
79,798
25,556
23,583
12,335
141,272
74,591
25,918
23,493
12,441
136,443
71,242
24,758
23,059
12,314
131,373
66,055
22,436
21,203
11,181
120,875
52,607
15,540
69,071
4,054
141,272
48,767
14,305
69,975
3,396
136,443
47,491
14,109
66,718
3,055
131,373
44,991
13,127
60,403
2,354
120,875
1/
Customer deposits
2/
Interbank liabilities
2/
Other borrowings and liabilities
Shareholders’ funds
Total
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
CUSTOMER DEPOSITS
($m)
By currency
Singapore dollar
US dollar
Hong Kong dollar
Others
Total
1/
By product
Savings accounts
Current accounts
Fixed deposits
Other deposits
Total
Note:
1/ Includes customer deposits classified as financial liabilities at fair value through profit or loss on the balance sheet
Customer deposits rose 4% from the previous quarter and
17% from a year ago to $141.3 billion. Unlike recent
quarters, savings accounts led the increase, while fixed
deposits declined.
Singapore-dollar deposits rose 7% during the quarter,
with savings deposits accounting for more than half of
the increase. Hong Kong-dollar deposits fell 1% in local
currency terms as fixed deposits declined.
17
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
VALUE AT RISK AND TRADING INCOME
The Group uses a Value at Risk (“VaR”) measure as one mechanism for monitoring and controlling trading risk. The VaR is
calculated using a one-day time horizon and a 99% confidence interval. The following table shows the period-end, average,
high and low VaR for the trading risk exposure of the DBSH Group for the period from 1 July 2006 to 30 June 2007. DBS
changed its trading book VaR methodology from Parametric VaR (PVaR) to Historical Simulation VaR (HSVaR) in September
2006. The histogram below which is based on PVaR for the period from July to August 2006 and HSVaR from September
2006 to June 2007.
($m)
As at 30 Jun 2007
Total
Average
12
1 July 2006 to 30 June 2007
High
13
Low
28
6
The charts below provide the range of VaR and the daily distribution of trading income in the trading portfolio for the
period from 1 July 2006 to 30 June 2007.
DBSH Group VaR for Trading Book
45
40
No. of Days
35
30
25
20
15
10
5
>26-27
>27-28
>28-29
>28-30
>30-32
>32-34
>29-30
>25-26
>26-28
>24-25
>23-24
>22-23
>21-22
>20-21
>19-20
>18-19
>17-18
>16-17
>15-16
>14-15
>13-14
>12-13
>11-12
>10-11
>9-10
>8-9
>7-8
>6-7
>5-6
0
VaR (S$ million)
Daily Distribution of Group Trading Income
(1 Jul 2006 to 30 Jun 2007)
50
45
40
30
25
20
15
10
5
Trading income (S$ million)
18
>34-36
>24-26
>22-24
>20-22
>18-20
>16-18
>14-16
>12-14
>10-12
>8-10
>6-8
>4-6
>2-4
>0-2
>(2)-0
>(4)-(2)
>(6)-(4)
>(8)-(6)
>(10)-(8)
>(12)-(10)
>(14)-(12)
>(16)-(14)
>(18)-(16)
0
>(20)-(18)
No. of days
35
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CAPITAL ADEQUACY
($m)
Tier 1
Share capital
Disclosed reserves and others
Less: Goodwill
Total
Tier 2
Cumulative general allowances
Subordinated debts
Others
Total
Total capital
Risk-weighted assets
Capital adequacy ratio (%)
Tier I ratio
Tier II ratio
Total (Tier I & II) ratio
30 Jun 2007
31 Mar 2007
31 Dec 2006
30 Jun 2006
4,127
17,479
(5,843)
15,763
4,094
16,794
(5,840)
15,048
4,042
16,556
(5,840)
14,758
3,942
15,710
(5,833)
13,819
1,157
7,612
119
8,888
1,127
4,998
197
6,322
1,033
5,038
103
6,174
1,001
4,893
19
5,913
24,651
167,830
21,370
156,991
20,932
144,086
19,732
137,375
9.4
5.3
14.7
9.6
4.0
13.6
10.2
4.3
14.5
10.1
4.3
14.4
Based on regulatory guidelines, the Group’s tier-1 fell to 9.4% from 9.6% in the previous quarter as the amount of risk
weighted assets increased with a higher customer loan base.
UNREALISED VALUATION SURPLUS
($m)
Properties
Financial investments
Total
30 Jun 2007
31 Mar 2007
31 Dec 2006
30 Jun 2006
406
17
423
384
25
409
371
11
382
415
16
431
The amount of unrealised valuation surplus for properties and financial investments increased to $423 million from $409
million in the previous quarter as market valuations improved.
19
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Consolidated Income Statement
2nd Qtr
2007
2nd Qtr
20061/
+/(-)
%
1st Qtr
2007
1st Half
2007
1st Half
20061/
+/(-)
%
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
2,252
1,225
1,027
371
97
(49)
79
26
1,931
1,034
897
296
173
(59)
12
89
17
18
14
25
(44)
17
>100
(71)
2,124
1,150
974
309
171
(46)
121
13
4,376
2,375
2,001
680
268
(95)
200
39
3,666
1,919
1,747
558
336
(111)
50
98
19
24
15
22
(20)
14
>100
(60)
Total income
1,551
1,408
10
1,542
3093
2,678
15
Expenses
Employee benefits
Depreciation of properties and other fixed assets
Other expenses
Allowances for credit and other losses
354
30
276
145
321
30
243
62
10
14
>100
360
32
266
105
714
62
542
250
621
63
474
93
15
(2)
14
>100
Total expenses
805
656
23
763
1,568
1,251
25
Profit
Share of profits of associates
Profit before tax
746
25
771
752
20
772
(1)
25
-
779
26
805
1,525
51
1,576
1,427
32
1,459
7
59
8
Income tax expense
Net profit
151
620
131
641
15
(3)
152
653
303
1,273
264
1,195
15
7
560
60
620
603
38
641
(7)
58
(3)
617
36
653
1,177
96
1,273
1,121
74
1,195
5
30
7
In $ millions
Attributable to:
Shareholders
Minority interests
Note:
1/
Figures for 2006 have been reclassified to make them consistent with the current year’s presentation
20
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Balance Sheets
30 Jun
2007
GROUP
31 Mar
31 Dec
2007
2006 2/
30 Jun
20061/
11,848
14,909
28,161
21,103
9,627
96,909
23,026
2,517
643
5,843
1,524
20
6,761
10,570
15,333
22,872
20,042
8,516
92,568
23,656
3,299
597
5,840
1,446
18
5,164
11,846
12,843
25,273
16,496
8,215
85,149
22,261
2,866
603
5,840
1,481
20
4,479
8,103
14,416
18,150
19,598
9,955
81,245
22,258
3,125
551
5,833
1,556
56
4,743
222,891
209,921
197,372
189,589
Due to banks
Due to non-bank customers
Financial liabilities at fair value through profit or loss 4/
Negative replacement values
Bills payable
Current tax liabilities
Deferred tax liabilities
Other liabilities
Other debt securities in issue 5/
- due within one year
- due after one year
Subordinated term debts
9,956
132,294
22,903
9,766
539
874
140
8,873
5,933
5,755
178
9,324
11,165
126,913
21,898
8,257
497
830
119
7,840
4,332
4,038
294
6,293
7,863
122,092
19,708
7,873
511
766
137
6,677
3,950
3,682
268
6,749
10,971
110,085
22,503
9,703
373
660
51
6,109
2,919
1,529
1,390
6,406
TOTAL LIABILITIES
200,602
188,144
176,326
22,289
21,777
4,127
(74)
7,449
8,139
In $ millions
30 Jun
2007
COMPANY
31 Mar
31 Dec
2007
2006 2/
30 Jun
20061/
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 3/
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
-
-
-
-
6,744
6,977
6,927
6,822
6,744
6,977
6,927
6,822
6
6
8
6
169,780
6
6
8
6
21,046
19,809
6,738
6,971
6,919
6,816
4,094
(111)
7,298
8,149
4,042
(111)
7,182
7,562
3,942
(111)
6,705
6,872
4,127
53
2,558
4,094
53
2,824
4,042
53
2,824
3,942
51
2,823
19,641
19,430
18,675
17,408
6,738
6,971
6,919
6,816
Minority interests
2,648
2,347
2,371
2,401
-
-
-
-
TOTAL EQUITY
22,289
21,777
21,046
19,809
6,738
6,971
6,919
6,816
13,790
93,567
1,818,734
12,984
87,880
1,636,225
12,187
86,065
1,378,916
11,124
77,982
1,403,137
4.56
4.54
4.49
4.45
4.39
4.34
TOTAL ASSETS
LIABILITIES
NET ASSETS
EQUITY
Share capital
Treasury shares
Other reserves
Revenue reserves
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/
2/
3/
4/
5/
Figures for 2006 have been reclassified to make them consistent with the current year’s presentation
Audited
Includes customer loans, interbank assets, other government securities and treasury bills, corporate debt securities and equity securities
Includes customer deposits, interbank liabilities, other debt securities in issue and other financial liabilities
Includes secured amount of $3,953 million as at 30 June 2007 (31 March 2007: $3,124 million; 31 December 2006: $2,743 million; 30 June 2006: $2,384 million). These are mainly secured by properties and securities
21
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Consolidated Statement of Changes in Equity
GROUP
In $ millions
Balance at 1 January 2007
Exercise of share options
Ordinary
shares
3,976
Convertible
preference
shares
66
Share
premium
-
Treasury
shares
Other
reserves
(111)
7,182
Revenue
reserve
7,562
Minority
interests
2,371
85
Total
equity
21,046
85
Net exchange translation adjustments
18
Share of associates’ reserves
18
18
Cost of share-based payments
18
18
(37)
-
Draw-down of reserves upon vesting of performance shares
37
(1)
17
Available-for-sale investments/Cash flow hedge:
- Net valuation taken to equity
- Transferred to income statement on sale
- Tax on items taken directly to or transferred from equity
334
334
(105)
(105)
(9)
Net profit for the period
(9)
1,177
Appropriation from income statement 1/
30
96
1,273
(30)
-
Final dividends paid for previous year
(310)
(310)
Interim dividends paid for current year
(260)
(260)
Dividends paid to minority interests
(72)
(72)
Change in minority interests
254
254
Balance at 30 June 2007
4,061
66
-
(74)
7,449
8,139
2,648
22,289
Balance at 1 January 2006
1,498
66
2,269
(117)
6,841
6,167
2,466
19,190
Exercise of share options
Effects of Companies (Amendment) Act 2005
74
7
2,304
(2,276)
81
(28)
Net exchange translation adjustments
-
(24)
(60)
(84)
Share of associates’ reserves
(5)
(5)
Cost of share-based payments
15
15
(6)
-
- Net valuation taken to equity
(66)
(66)
- Transferred to income statement on sale
(25)
(25)
Draw-down of reserves upon vesting of performance shares
6
Available-for-sale investments/Cash flow hedge:
- Tax on items taken directly to or transferred from equity
3
3
Net profit for the period
1,121
Final dividends paid for previous year
(212)
(212)
Interim dividends paid for current year
(204)
(204)
Dividends paid to minority interests
Change in minority interests
Balance at 30 June 2006
3,876
66
-
(111)
6,705
6,872
74
1,195
(74)
(74)
(5)
(5)
2,401
19,809
Note:
1/
Includes appropriation from prior year’s net profit
22
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Statement of Changes in Equity
COMPANY
Convertible
preference
shares
Share
premium
Revenue
reserve
Total equity
2,824
6,919
304
304
Final dividends paid for previous year
(310)
(310)
Interim dividends paid for current year
Balance at 30 June 2007
4,061
66
-
53
(260)
2,558
(260)
6,738
Balance at 1 January 2006
1,498
66
2,269
7
(2,276)
77
2,874
6,784
In $ millions
Balance at 1 January 2007
Exercise of share options
Ordinary
shares
3,976
66
Other
reserves
-
53
85
85
Net profit for the period
Exercise of share options
Effects of Companies (Amendment) Act 2005
74
2,304
Cost of share-based payments
Net profit for the period
81
(28)
-
2
365
2
365
Final dividends paid for previous year
(212)
(212)
Interim dividends paid for current year
Balance at 30 June 2006
(204)
2,823
(204)
6,816
3,876
66
-
51
23
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Consolidated Cash Flow Statement
I In $ millions
1st Half
2007
1st Half
20061/
Cash flows from operating activities
Profit before tax
1,576
1,459
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
Profit before changes in operating assets & liabilities
250
62
(51)
(2)
(85)
1,750
93
63
(32)
(2)
(50)
1,531
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
2,093
10,202
3,195
3,074
2,580
2,021
3,654
(320)
1,463
440
Decrease/(Increase) 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
614
(1,556)
(2,891)
(5,803)
(11,894)
(626)
(3,143)
28
(4,655)
3,970
1,311
(3,694)
858
(2,079)
(177)
(63)
Tax paid
Net cash (used in)/generated from 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
Acquisition of interest in associates
Net cash generated from investing activities (2)
(2,582)
4,465
35
(66)
43
(4)
15
(91)
91
(5)
8
10
Cash flows from financing activities
Increase in share capital and share premium
Proceeds from issuance of subordinated term debts
Dividends paid to shareholders of the Company
Dividends paid to minority interests
85
3,044
(570)
(72)
81
1,428
(416)
(74)
Net cash generated from financing activities (3)
Exchange translation adjustments (4)
2,487
17
1,019
(27)
Net change in cash and cash equivalents (1)+(2)+(3)+(4)
Cash and cash equivalents at 1 January
Cash and cash equivalents at 30 June
Note:
1/
(70)
15,118
15,048
5,467
9,408
14,875
Figures for 2006 have been reclassified to make them consistent with the current year’s presentation
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 half ended 30 June 2007
is as follows:
1,510,835,033
At 1 January 2007
5,524,420
Exercise of share options pursuant to the DBSH Share Option Plan
At 30 June 2007
1,516,359,453
Weighted average number of shares for 1st half 2007
- ordinary shares
- fully diluted
1,513,970,755
1,586,495,248
The fully diluted shares took into account the effect of a full con