financial performance 2q11
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 2011.
For the first half of 2011, the Directors have declared an interim one-tier tax-exempt dividend of 28
cents (first half 2010: 28 cents) for each DBSH non-voting convertible preference share (“CPS”) and
each DBSH non-voting redeemable CPS, and an interim one-tier tax-exempt dividend of 28 cents (first
half 2010: 28 cents) for each DBSH ordinary share. The DBSH Scrip Dividend Scheme will be applied
to these dividends.
The first half 2011 one-tier tax exempt dividend is currently scheduled to be paid on or about 30
September 2011. The DBSH shares will be quoted ex-dividend on 8 August 2011. Notice is hereby
given that the Share Transfer Books and Register of Members of the Company will be closed on 12
August 2011. 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 11
August 2011 will be registered to determine shareholders' entitlement to the first half 2011 one-tier tax
exempt dividend. In respect of ordinary shares in the securities accounts with The Central Depository
(Pte) Limited (“CDP”), the 2011 one-tier tax exempt dividend will be paid by DBSH to CDP, which will in
turn distribute the dividend entitlements to shareholders.
A separate announcement which will outline further administrative details on the application of the
DBSH Scrip Dividend Scheme to the first half 2011 dividend will be made in due course.
By order of the Board
Linda Hoon
Group Secretary
27 July 2011
Singapore
More information on the above announcement is available at www.dbs.com/investor
Performance Summary
Unaudited Financial Results
For the First Half / Second Quarter ended
30 June 2011
DBS Group Holdings Ltd
Incorporated in the Republic of Singapore
Company Registration Number: 199901152M
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Contents
Overview
Net Interest Income
Net Fee and Commission Income
Other Non-Interest Income
Expenses
Allowances for Credit and Other Losses
Performance by Business Segments
Performance by Geography
Customer Loans
Non-Performing Assets and Loss Allowance Coverage
Funding Sources
Customer Deposits
Other Borrowings & Liabilities
Value at Risk and Trading Income
Capital Adequacy
Unrealised Valuation Surplus/(Losses)
Unaudited Consolidated Income Statement
Unaudited Consolidated Statement of Comprehensive Income
Unaudited Balance Sheets
Unaudited Consolidated Statement of Changes in Equity
Unaudited Statement of Changes in Equity
Unaudited Consolidated Cash Flow Statement
Additional Information
Issuance of Ordinary Shares
Adoption of New or Revised FRS and INT FRS
Confirmation by the Board
Page
2
4
6
6
7
7
8
11
14
15
18
19
19
20
21
21
22
22
23
24
25
26
27
27
28
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 2010, with the exception of the adoption of new or revised FRS and
Interpretations to FRS (“INT FRS”).
On 1 January 2011, the Group adopted the following new or revised FRS and INT FRS that are issued by the Accounting
Standard Council (ASC), and are relevant for the Group:
•
•
FRS 24 Related Party Disclosures (2009)
Improvements to FRSs (2010)
Refer to page 27 for more information.
2nd Qtr
2011
2nd Qtr
2010
%
chg
1st Qtr
2011
%
chg
1st Half
2011
1st Half
2010
%
chg
1,199
387
252
1,838
798
1,040
137
934
735
-
1,067
358
390
1,815
717
1,098
204
919
718
(1,018)
12
8
(35)
1
11
(5)
(33)
2
2
NM
1,122
416
371
1,909
773
1,136
125
1,035
807
-
7
(7)
(32)
(4)
3
(8)
10
(10)
(9)
-
2,321
803
623
3,747
1,571
2,176
262
1,969
1,542
-
2,133
699
696
3,528
1,419
2,109
559
1,597
1,250
(1,018)
9
15
(10)
6
11
3
(53)
23
23
NM
735
(300)
NM
807
(9)
1,542
232
>100
Selected balance sheet items ($m)
Customer loans 1/
2/
Interbank assets
Total assets
168,706
24,577
309,492
146,070
21,846
276,250
15
13
12
157,455
26,097
292,937
7
(6)
6
168,706
24,577
309,492
146,070
21,846
276,250
15
13
12
Customer deposits 3/
Total liabilities
Shareholders’ funds
210,536
277,208
28,014
183,929
246,522
25,616
14
12
9
199,536
259,986
27,430
6
7
2
210,536
277,208
28,014
183,929
246,522
25,616
14
12
9
1.80
34.8
43.4
0.98
10.62
80.1
1.5
1.84
41.2
39.5
1.07
11.08
79.4
2.3
1.80
41.2
40.5
1.14
12.12
78.9
1.8
1.80
38.1
41.9
1.05
11.38
80.1
1.5
1.88
39.5
40.2
0.93
9.80
79.4
2.3
7
19
9
8
56
Core Tier 1 capital adequacy ratio
11.5
11.1
11.5
11.5
11.1
Tier 1 capital adequacy ratio
Total capital adequacy ratio
13.5
16.5
13.1
16.5
14.2
17.2
13.5
16.5
13.1
16.5
Selected income statement items ($m)
Net interest income
Net fee and commission income
Other non-interest income
Total income
Expenses
Profit before allowances
Allowances for credit and other losses
Profit before tax
Net profit
Goodwill charges
Net profit/(loss) including goodwill charges
Key financial ratios (%) (excluding
4/
goodwill charges
Net interest margin
Non-interest/total income
Cost/income ratio
Return on assets
5/
Return on equity
Loan/deposit ratio
NPL ratio
Specific allowances (loans)/average loans
(bp)
2
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
2nd Qtr
2011
2nd Qtr
2010
1st Qtr
2011
1st Half
2011
1st Half
2010
1.26
1.25
1.41
1.33
1.09
1.26
11.69
0.80
10.88
1.41
11.61
1.33
11.69
0.64
10.88
1.21
1.20
1.36
1.27
1.04
1.21
11.47
0.78
10.68
1.36
11.39
1.27
11.47
0.62
10.68
Per share data ($)
Per basic share
– earnings excluding one-time items and
goodwill charges
– earnings
– net book value 5/ 6/
Per diluted share
– earnings excluding one-time items and
goodwill charges
– earnings
5/ 6/
– net book value
Notes:
1/ Includes customer loans classified as financial assets at fair value through profit or loss on the balance sheet
2/ Includes interbank assets classified as financial assets at fair value through profit or loss on the balance sheet
3/ Includes customer deposits classified as financial liabilities at fair value through profit or loss on the balance sheet
4/ Return on assets, return on equity, specific allowances (loan)/average loan and per share data for the quarters are computed on an annualised basis
5/ Non-controlling interests are not included as equity in the computation of net book value and return on equity
6/ Takes into account 33.6 million shares to be issued on 5 July 2011 pursuant to the Scrip Dividend Scheme
NM Not Meaningful
Second-quarter net profit fell 9% from the previous quarter
as market-related income declined. Underlying operating
trends were positive as customer-related income
continued to grow.
Net interest income rose 7% from the previous quarter to a
record $1.20 billion. Loans rose 7% from regional
corporate borrowing. Net interest margin was stable at
1.80%.
Fee income fell 7% from the previous quarter to $387
million. Lower contributions from investment banking and
stockbroking more than offset improvements in customer
fees from wealth management, trade and remittances and
credit cards. Other non-interest income fell 32% to $252
million as trading gains declined. Income from customer
flows for treasury products was comparable to the
previous quarter.
Expenses rose 3% from the previous quarter to $798
million, and the cost-income ratio rose to 43%.
The non-performing loan rate improved from 1.8% in the
previous quarter to 1.5% due to customer repayments
and loan upgrading. Specific allowances remained low
at seven basis points of loans compared to nine basis
points in the previous quarter. General allowances were
higher in line with loan growth. Allowance coverage rose
to 113% of non-performing assets and to 148% if
collateral was considered.
Compared to a year ago, net profit was 2% higher than
second quarter 2010. Net interest income and
customer-driven non-interest income were higher, and
allowances were lower. These were offset by lower
trading gains and higher expenses.
Return on assets was 0.98% while return on equity was
10.6%. The total capital adequacy ratio stood at 16.5%
with Tier 1 at 13.5% and core Tier 1 at 11.5%.
For the first half, net profit rose 23% to a record $1.54
billion as higher business volumes drove net interest
income and non-interest income to a new high.
3
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET INTEREST INCOME
Average balance
sheet
2nd Qtr 2011
Average
Average
balance Interest
rate
($m)
($m)
(%)
2nd Qtr 2010
Average
Average
balance Interest
rate
($m)
($m)
(%)
1st Qtr 2011
Average
balance
($m)
Interest
($m)
Average
rate
(%)
Interest-bearing
assets
Customer loans
Interbank assets
Securities
Total
161,278
53,737
51,333
266,348
1,080
127
373
1,580
2.68
0.95
2.92
2.38
138,617
43,195
51,138
232,950
984
82
343
1,409
2.85
0.76
2.69
2.43
154,232
49,926
48,564
252,722
1,018
123
344
1,485
2.68
1.00
2.87
2.38
Interest-bearing
liabilities
Customer deposits
Other borrowings
Total
205,628
39,618
245,246
281
100
381
0.55
1.02
0.62
182,951
31,270
214,221
241
101
342
0.53
1.30
0.64
195,404
36,307
231,711
263
100
363
0.55
1.12
0.64
1,199
1.80
1,067
1.84
1,122
1.80
Net interest
income/margin 1/
Average balance
sheet
1st Half 2011
1st Half 2010
Average
Average Average
Average
balance Interest
rate balance Interest
rate
($m)
($m)
(%)
($m)
($m)
(%)
Interest-bearing
assets
Customer loans
Interbank assets
Securities
Total
157,857
51,978
50,011
259,846
2,098
250
717
3,065
2.68
0.97
2.89
2.38
135,532
42,275
51,004
228,811
1,918
156
707
2,781
2.85
0.74
2.80
2.45
Interest-bearing
liabilities
Customer deposits
Other borrowings
Total
200,656
38,132
238,788
544
200
744
0.55
1.06
0.63
182,002
28,648
210,650
456
192
648
0.51
1.35
0.62
2,321
1.80
2,133
1.88
Net interest
income/margin 1/
Note:
1/ Net interest margin is net interest income expressed as a percentage of average interest-earning assets
Net interest income rose 7% from the previous quarter to
$1.20 billion as interest asset volumes, led by customer
loans, increased. Net interest margins were stable at
1.80%. Customer loan yields and deposit costs were
unchanged from the previous quarter, while other asset
yields and liability costs were little changed.
Compared to a year ago, net interest income was 12%
higher as an increase in interest asset volumes was
partially offset by a four basis point reduction in net interest
margins.
For the first half, net interest income rose 9% to a record
$2.32 billion as higher customer loan volumes were partially
offset by lower net interest margins.
4
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
2nd Qtr 2011 versus 2nd Qtr 2010
Volume and rate analysis ($m)
Increase/(decrease) due to change in
2nd Qtr 2011 versus 1st Qtr 2011
Volume
Rate
Net
change
Volume
Rate
Net
change
Customer loans
Interbank assets
Securities
161
20
1
(65)
25
29
96
45
30
47
9
3
(7)
50
2
Total
182
(11)
171
20
76
6
2
26
78
30
16
46
10
(17)
(7)
40
(1)
39
14
5
19
(5)
(5)
14
14
136
(4)
132
57
7
64
Interest income
Interest expense
Customer deposits
Other borrowings
Total
Net impact on interest income
Due to change in number of days
Net Interest Income
-
13
132
77
1st Half 2011 versus 1st Half 2010
Volume and rate analysis ($m)
Increase/(decrease) due to change in
Volume
Rate
Net
change
316
36
(14)
338
(136)
58
24
(54)
180
94
10
284
47
37
84
41
(29)
12
88
8
96
254
(66)
188
Interest income
Customer loans
Interbank assets
Securities
Total
Interest expense
Customer deposits
Other borrowings
Total
Net impact on interest income
Due to change in number of days
Net Interest Income
188
5
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET FEE AND COMMISSION INCOME
($m)
Stockbroking
Investment banking
Trade and remittances
Loan related
Guarantees
Deposit related
Credit card
Fund management
Wealth management
Others
Total
2nd Qtr
2011
2nd Qtr
2010
% chg
1st Qtr
2011
% chg
1st Half
2011
1st Half
2010
% chg
34
44
66
95
16
22
37
6
52
15
387
42
29
57
101
16
22
37
6
34
14
358
(19)
52
16
(6)
53
7
8
43
73
63
93
20
20
34
5
51
14
416
(21)
(40)
5
2
(20)
10
9
20
2
7
(7)
77
117
129
188
36
42
71
11
103
29
803
84
56
116
201
29
42
72
11
61
27
699
(8)
>100
11
(6)
24
(1)
69
7
15
Net fee and commission income decreased 7% from the
previous quarter to $387 million. Stockbroking commissions
declined due to lower market volumes. Investment banking
fees, which had benefited from strong IPO activity in the
previous quarter, also fell. These declines more than offset
gains in trade and remittances, wealth management and
credit cards.
Compared to a year ago, net fee and commission income
was 8% higher as improved contributions from investment
banking, trade and remittances and wealth management
were partially offset by a decline in stockbroking
commissions.
Net fee and commission income for the first half rose 15%
to $803 million as contributions increased in a broad range
of activities.
OTHER NON-INTEREST INCOME
($m)
2nd Qtr
2011
2nd Qtr
2010
% chg
1st Qtr
2011
% chg
1st Half
2011
1st Half
2010
% chg
Net trading income
Net income/(loss) from financial
instruments designated at fair value
Net income on financial
investments
Net gain on fixed assets
Others (include rental income)
146
266
(45)
269
(46)
415
526
(21)
-
12
NM
(11)
NM
(11)
(18)
39
82
98
(16)
84
(2)
166
148
12
9
15
3
11
>100
36
6
23
50
(35)
15
38
17
23
(12)
65
Total
252
390
(35)
371
(32)
623
696
(10)
Note:
NM Not Meaningful
Net trading income (including net income from financial
instruments designated at fair value) fell to $146 million
from $258 million in the previous quarter and $278
million a year ago. The decline was due to the markedto-market impact of hedges taken for fixed income
investments. Income from customer flows was
comparable to the previous quarter and higher than a
year ago.
For the first half, net trading income fell 20% from a year
ago to $404 million. Higher income from customer flows
was more than offset by a decline in trading gains. Total
other non-interest income fell 10% to $623 million as the
decline in net trading income was partially offset by
higher net income from financial investments.
6
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
EXPENSES
($m)
Staff
Occupancy
Computerisation
Revenue-related
Others
Total
Staff headcount at period-end
2nd Qtr 2nd Qtr
2011
2010
% chg
1st Qtr
2011
% chg 1st Half 1st Half
2011
2010
% chg
423
72
147
39
117
798
17,274
362
65
131
35
124
717
14,615
17
11
12
11
(6)
11
18
405
70
152
38
108
773
16,617
4
3
(3)
3
8
3
4
828
142
299
77
225
1,571
17,274
700
135
260
66
258
1,419
14,615
18
5
15
17
(13)
11
18
44
1
46
1
(4)
-
46
1
(4)
-
90
2
94
2
(4)
-
2
2
-
1
100
3
4
(25)
Included in the above table were:
Depreciation of properties and other fixed
assets
Directors’ fees
Audit fees payable
Expenses of $798 million were 3% above the previous
quarter. Staff costs rose with a higher headcount, while
non-staff costs also rose. Compared to a year ago, costs
were 11% higher.
For the first half, costs rose 11% to $1.57 billion as
headcount was increased and investments were made
to support higher business volumes and build capacity
for future growth.
ALLOWANCES FOR CREDIT AND OTHER LOSSES
($m)
General allowances (GP)
2nd Qtr 2nd Qtr
2011
2010
% chg
1st Qtr
2011
% chg 1st Half 1st Half % chg
2011
2010
99
124
(20)
61
62
160
149
7
Specific allowances (SP) for loans 1/
Singapore
Hong Kong
Rest of Greater China
South and South-east Asia
Rest of the world
27
(10)
8
(6)
4
31
68
1
(4)
13
6
52
(60)
NM
NM
NM
(33)
(40)
34
2
3
(8)
2
35
(21)
NM
>100
25
100
(11)
61
(8)
11
(14)
6
66
392
11
3
10
12
356
(84)
(NM)
>100
NM
(50)
(81)
Specific allowances (SP) for securities,
properties and other assets
11
12
(8)
30
(63)
41
18
>100
137
204
(33)
125
10
262
559
(53)
Total
Note:
1/
Specific allowances for loans are classified according to where the borrower is incorporated.
Specific allowances for loans fell to $27 million from $34
million in the previous quarter and $68 million a year ago
as customer repayments increased. General allowances
rose 62% from the previous quarter to $99 million in line
with loan growth.
For the first half, total allowances fell 53% to $262
million, with an 84% decline in specific allowances for
loans partially offset by higher specific allowances for
non-loan assets and general allowances.
7
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY BUSINESS SEGMENTS
($m)
Consumer/
Private
Banking
Selected income items
2nd Qtr 2011
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
1st Qtr 2011
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Institutional
Banking
Treasury
Others
Total
375
187
562
377
26
159
552
435
987
318
72
7
604
247
(14)
233
103
(4)
134
25
31
56
43
24
37
1,199
639
1,838
798
137
31
934
342
171
513
364
16
133
519
468
987
294
56
7
644
224
80
304
94
7
203
37
68
105
21
46
17
55
1,122
787
1,909
773
125
24
1,035
353
168
521
363
23
135
503
417
920
259
175
8
494
183
173
356
90
266
28
(10)
18
5
6
17
24
1,067
748
1,815
717
204
25
919
717
358
1,075
741
42
292
1,071
903
1,974
612
128
14
1,248
471
66
537
197
3
337
62
99
161
21
89
41
92
2,321
1,426
3,747
1,571
262
55
1,969
1/
2nd Qtr 2010
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
1st Half 2011
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
8
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
Consumer/
Private
Banking
1st Half 2010 1/
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Institutional
Banking
Treasury
Others
Total
712
325
1,037
713
35
289
977
747
1,724
506
503
14
729
397
334
731
171
5
555
47
(11)
36
29
16
33
24
2,133
1,395
3,528
1,419
559
47
1,597
52,591
135,095
102,305
14,699
122,424
6
10
88,004
12
5
59,869
7
2
6,911
11
27
304,690
4,802
309,492
277,208
36
44
-
52,031
125,510
96,656
13,938
112,885
9
12
85,494
4
6
51,746
1
2
9,861
20
26
49,247
113,994
100,057
8,150
115,824
11
13
68,520
3
5
49,489
2
12,689
19
26
1,018
Selected balance sheet and other
2/
items
30 Jun 2011
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 2nd Qtr 2011
Depreciation for 2nd Qtr 2011
Goodwill charge for 2nd Qtr 2011
31 Mar 2011
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 1st Qtr 2011
Depreciation for 1st Qtr 2011
Goodwill charge for 1st Qtr 2011
30 Jun 2010
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 2nd Qtr 2010
Depreciation for 2nd Qtr 2010
Goodwill charge for 2nd Qtr 2010
288,135
4,802
292,937
259,986
34
46
-
271,448
4,802
276,250
246,522
33
46
1,018
Notes:
1 Allowances for credit and other losses and profits exclude goodwill charges
2/ Refer to sections on Customer Loans and Non-Performing Assets and Loss Allowance Coverage for more information on business segments
The business segment results are prepared based on
the Group’s internal management reporting which
reflects the organisation management structure. As the
activities of the Group are highly integrated, internal
allocation has been made in preparing the segment
information. Amounts for each business segment are
shown after the allocation of certain centralised costs,
funding income and the application of transfer pricing,
where appropriate. Transactions between segments are
recorded within the segment as if they are third party
transactions and are eliminated on consolidation. During the
quarter, no one group of related customers generated more
than 10% of the Group’s revenues.
The various business segments are described below:
9
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Consumer/ Private Banking
Consumer/ Private Banking provides individual customers
with a diverse range of banking and related financial
services. The products and services available to customers
include current and savings accounts, fixed deposits, loans
and home finance, cards, payments, investment and
insurance products.
Compared to the previous quarter, total income rose 10%
to $562 million. Net interest income rose on loan and
deposit volume growth. Expenses rose 4% to $377
million due mainly to higher staff costs. Higher specific
allowances accounted for most of the increase in
allowance charges.
Compared to a year ago, total income increased 8%. The
increase in net interest income was due to higher loan
and deposit volumes partially offset by lower interest
margins. Non-interest interest income benefited from
higher wealth management contributions. Staff and nonstaff costs were higher. Allowances were little changed.
Institutional Banking
Institutional Banking provides financial services and
products to institutional clients including non bank
financial institutions, government linked companies,
large corporates and small and medium-sized
businesses. The business focus is to broaden and
deepen the financial relationship with clients. The
products and services available to customers include
long and short term credit facilities ranging from
specialised lending such as asset financing, project
financing and real estate financing to overdraft, trade,
receivables financing and structured trade; cash
management and deposit; treasury and markets;
corporate finance and advisory banking services for
mergers and acquisitions, capital raising through debt
and equity markets, capital restructuring, syndicated
finance, securities and fiduciary services and private
equity. Institutional Banking also provides equity
services through DBS Vickers Securities (DBSV).
DBSV offers a wide range of services to retail and
corporate customers including research, sales and
trading, share placement, nominees and securities
custodian services and distribution of primary and
secondary issues.
Compared to the previous quarter, total income was
unchanged at $987 million. An increase in net interest
income due to higher loan and deposit volumes was offset
by a decline in non-interest income. Expenses increased
8% to $318 million on higher staff and non-staff costs.
General allowances were higher.
Compared to a year ago, total income grew 7% on higher
loan and deposit volumes as well as better treasury
product cross-seling. Expenses were 23% higher due to
increased headcount and investment costs to support
higher business volumes. Allowances declined 59% as
specific allowances fell.
Treasury
Treasury provides treasury services to corporations,
institutional and private investors, financial institutions and
other market participants. It is primarily involved in sales,
structuring, market making and trading across a broad
range of financial products including foreign exchange,
interest rate, debt, credit, equity and other structured
derivatives. Income from these financial products and
services offered to the customer of other business
segments, such as Consumer/Private Banking and
Institutional Banking, is reflected in the respective
segments. Treasury is also responsible for
facilitating the execution of Group’s asset and liability
interest rate positions and management of the investment
of the Group’s excess liquidity and shareholders’ funds.
Treasury income fell 23% from the previous quarter and
35% from a year ago to $233 million as an increase in net
interest income was more than offset by a decline in noninterest income.
Others
Others encompasses a range of activities from corporate
decisions and income and expenses not attributed to other
business segments.
10
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY GEOGRAPHY 1/
($m)
S’pore
Hong
Kong
Rest of
Greater
China
South
and
Southeast Asia
Rest of
world
Total
Selected income items
2nd Qtr 2011
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
728
394
1,122
476
61
5
590
68
459
199
177
376
154
54
168
25
143
124
25
149
94
4
5
56
13
43
91
33
124
58
10
21
77
15
62
57
10
67
16
8
43
15
28
1,199
639
1,838
798
137
31
934
136
735
1st Qtr 2011
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
700
466
1,166
465
113
3
591
61
442
190
200
390
155
9
226
36
190
104
37
141
84
(2)
5
64
11
53
74
57
131
54
2
16
91
16
75
54
27
81
15
3
63
16
47
1,122
787
1,909
773
125
24
1,035
140
807
2nd Qtr 2010
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
643
513
1,156
323
148
2
687
96
538
198
165
363
249
32
82
17
65
79
25
104
78
18
7
15
3
12
70
52
122
52
14
16
72
17
55
77
(7)
70
15
(8)
63
15
48
1,067
748
1,815
717
204
25
919
148
718
1st Half 2011
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
1,428
860
2,288
941
174
8
1,181
129
901
389
377
766
309
63
394
61
333
228
62
290
178
2
10
120
24
96
165
90
255
112
12
37
168
31
137
111
37
148
31
11
106
31
75
2,321
1,426
3,747
1,571
262
55
1,969
276
1,542
2/
11
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
S’pore
1st Half 2010 2/
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
Hong
Kong
Rest of
Greater
China
South
and
Southeast Asia
Rest of
world
Total
1,300
882
2,182
742
426
5
1,019
122
787
400
330
730
396
39
295
50
245
155
56
211
147
24
11
51
9
42
147
106
253
105
25
31
154
37
117
131
21
152
29
45
78
19
59
2,133
1,395
3,528
1,419
559
47
1,597
237
1,250
Selected balance sheet items
30 Jun 2011
Total assets before goodwill
Goodwill on consolidation
Total assets
Non-current assets 3/
Gross customer loans
191,570
4,802
196,372
1,639
101,450
59,749
59,749
364
40,095
25,727
25,727
138
14,379
15,152
15,152
34
9,586
12,492
12,492
2
5,947
304,690
4,802
309,492
2,177
171,457
31 Mar 2011
Total assets before goodwill
Goodwill on consolidation
Total assets
Non-current assets 3/
Gross customer loans
179,393
4,802
184,195
1,622
95,294
58,571
58,571
386
36,177
23,097
23,097
127
13,028
14,344
14,344
36
9,116
12,730
12,730
1
6,486
288,135
4,802
292,937
2,172
160,101
30 Jun 2010
Total assets before goodwill
Goodwill on consolidation
Total assets
Non-current assets 3/
Gross customer loans
172,591
4,802
177,393
1,486
84,467
54,420
54,420
508
38,052
16,974
16,974
131
11,524
14,344
14,344
40
8,664
13,119
13,119
2
6,441
271,448
4,802
276,250
2,167
149,148
Notes:
1/ The geographical segment analysis is based on the location where transactions and assets are booked
2/ Allowances for credit and other losses and profits exclude goodwill charges
3/ Includes investment in associates, properties and other fixed assets, and investment properties
12
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
The performance by geography is classified based on the
location in which income and assets are recorded.
Singapore
Compared to the previous quarter, net profit rose 4% to
$459 million.
Net interest income grew 4% to $728 million as corporate
and consumer loans increased. Non-interest income fell
15% to $394 million due to lower trading gains.
Expenses rose 2% to $476 million from higher staff costs.
Allowances halved to $61 million, helped by write-backs
of specific allowances as a result of customer repayments.
General allowances were higher in line with stronger loan
growth.
Compared to a year ago, net profit was 15% lower. The
increase in net interest income was more than offset by
non-interest income decline and higher expenses. In 2010,
there was a reversal of compensation to Constellation
note holders from Singapore to Hong Kong.
Hong Kong
The second quarter’s results incorporate an appreciation
of the Singapore dollar against the Hong Kong dollar of
3% from the previous quarter and 11% from a year ago.
Net profit fell 25% from the previous quarter to $143
million. Net interest income rose 5% to $199m as loans
increased 14% in local currency terms. Net interest
margins were stable. Non-interest income fell 12% to
$177 million. Higher fee income from loans, wealth
management and trade were offset by lower Treasury
income.
Expenses were comparable to the previous quarter at
$154 million. Total allowances increased five-fold to $54
million, with most of the increase due to general
allowances in line with loan growth. Specific allowances
were also higher.
Compared to a year ago, net profit more than doubled,
mainly due to higher total income and lower expenses
due to compensation to Constellation note holders in the
previous year, partly offset by higher allowances.
Other countries
Net profit for Rest of Greater China declined 19% from
the previous quarter to $43 million. The increase in net
interest income from higher loan and deposit volumes
was partly offset by a decline in non-interest income.
Expenses increased 12% mainly from higher staff and
marketing costs. Total allowances increased due to
higher recoveries in the previous quarter.
Compared to a year ago, net profit grew 258%. Higher
net interest income and lower specific allowances were
partially offset by an increase in expenses.
Net profit for South and South-east Asia declined 17%
from the previous quarter to $62 million. The increase in
net interest income from higher securities and loan
volumes was offset by lower non-interest income.
Expenses increased 7% mainly from higher staff costs.
Specific allowances were unchanged while general
allowances rose driven by increase in loan volumes.
Compared to a year ago, net profit rose 13%. Increase in
net interest income and lower specific allowances were
partially offset by a fall in non interest income and higher
expenses.
13
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CUSTOMER LOANS
1/
($m)
30 Jun 2011
31 Mar 2011
31 Dec 2010
30 Jun 2010
171,457
160,101
154,722
149,148
General allowances
Net total
1,123
1,628
168,706
1,107
1,539
157,455
1,152
1,476
152,094
1,645
1,433
146,070
By business unit
Consumer/ Private Banking
Institutional Banking
Others
Total (Gross)
52,982
116,714
1,761
171,457
51,083
107,637
1,381
160,101
50,256
103,219
1,247
154,722
48,386
100,427
335
149,148
By geography 2/
Singapore
Hong Kong
Rest of Greater China
South and South-east Asia
Rest of the world
Total (Gross)
83,466
36,933
19,121
15,918
16,019
171,457
77,824
36,556
14,262
15,430
16,029
160,101
74,595
36,688
13,495
13,976
15,968
154,722
70,698
36,982
11,455
13,653
16,360
149,148
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)
22,508
24,555
39,368
23,545
15,938
16,104
12,526
16,913
171,457
19,820
23,537
38,929
17,554
14,872
17,698
11,447
16,244
160,101
19,217
21,385
38,676
16,732
14,378
18,517
11,142
14,675
154,722
18,404
20,282
37,082
14,798
13,294
20,202
10,480
14,606
149,148
72,334
29,376
49,309
20,438
171,457
69,075
30,242
41,493
19,291
160,101
67,439
30,478
38,094
18,711
154,722
60,852
33,073
36,355
18,868
149,148
Gross
Less:
Specific allowances
By currency
Singapore dollar
Hong Kong dollar
US dollar
Others
Total (Gross)
Notes:
1/ Includes customer loans classified as financial assets at fair value through profit or loss on the balance sheet
2/ Loans by geography are classified according to where the borrower is incorporated
Gross customer loans rose 7% from the previous
quarter to $171.5 billion. The growth was led by
corporate borrowing in Singapore and rest of Greater
China. Part of the increase was due to short-term trade
financing for China-incorporated corporates.
Gross loans were 15% higher than a year ago, with the
expansion spread across regions and across corporate
and consumer borrowers.
14
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NON-PERFORMING ASSETS AND LOSS ALLOWANCE COVERAGE
1/
By business unit
30 Jun 2011
Consumer/ Private
Banking
Institutional Banking
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
31 Mar 2011
Consumer/ Private
Banking
Institutional Banking
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
31 Dec 2010
Consumer/ Private
Banking
Institutional Banking
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
NPA
($m)
SP
($m)
GP
($m)
NPL
(% of loans)
(GP+SP)/NPA
(%)
(GP+SP)/
unsecured
NPA
(%)
302
94
529
0.6
206
356
2,295
1,069
1,099
2.0
94
120
2,597
1,163
1,628
1.5
107
141
10
3
103
-
1,060
2,120
276
109
260
-
134
167
2,883
1,275
1,991
-
113
148
312
104
510
0.6
197
332
2,494
1,058
1,029
2.3
84
107
2,806
1,162
1,539
1.8
96
127
25
6
105
-
444
1,586
267
105
259
-
136
153
3,098
1,273
1,903
-
103
134
317
107
502
0.6
192
323
2,561
1,105
974
2.5
81
102
2,878
1,212
1,476
1.9
93
121
28
6
124
-
464
1,300
307
127
252
-
123
134
3,213
1,345
1,852
-
100
127
396
168
482
0.8
164
263
3,035
1,570
951
3.0
83
102
3,431
1,738
1,433
2.3
92
117
101
80
116
-
194
239
192
120
260
-
198
216
3,724
1,938
1,809
-
101
126
30 Jun 2010
Consumer/ Private
Banking
Institutional Banking
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
Notes:
1/ Allowances for credit and other losses exclude one-time items
15
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By geography
30 Jun 2011
Singapore
Hong Kong
Rest of Greater China
South and South-east
Asia
Rest of the World
Total non-performing
loans
Debt securities
Contingent liabilities
& others
Total non-performing
assets
31 Mar 2011
Singapore
Hong Kong
Rest of Greater China
South and South-east
Asia
Rest of the World
Total non-performing
loans
Debt securities
Contingent liabilities
& others
Total non-performing
assets
31 Dec 2010
Singapore
Hong Kong
Rest of Greater China
South and South-east
Asia
Rest of the World
Total non-performing
loans
Debt securities
Contingent liabilities
& others
Total non-performing
assets
30 Jun 2010
Singapore
Hong Kong
Rest of Greater China
South and South-east
Asia
Rest of the World
Total non-performing
loans
Debt securities
Contingent liabilities
& others
Total non-performing
assets
NPA
($m)
SP
($m)
GP
($m)
NPL
(% of loans)
(GP+SP)/NPA
(%)
(GP+SP)/
unsecured
NPA
(%)
512
300
233
189
169
151
683
372
201
0.6
0.8
1.2
170
180
151
339
259
219
174
98
212
1.1
178
235
1,378
556
160
8.6
52
58
2,597
1,163
1,628
1.5
107
141
10
3
103
-
1,060
2,120
276
109
260
-
134
167
2,883
1,275
1,991
-
113
148
571
328
240
193
186
155
648
368
151
0.7
0.9
1.7
147
169
128
321
244
184
175
99
212
1.1
178
211
1,492
529
160
9.3
46
52
2,806
1,162
1,539
1.8
96
127
25
6
105
-
444
1,586
267
105
259
-
136
153
3,098
1,273
1,903
-
103
134
594
359
250
196
212
166
613
369
145
0.8
1.0
1.9
136
162
124
300
230
176
164
107
189
1.2
180
185
1,511
531
160
9.5
46
50
2,878
1,212
1,476
1.9
93
121
28
6
124
-
464
1,300
307
127
252
-
123
134
3,213
1,345
1,852
-
100
127
648
442
316
203
253
190
588
371
125
0.9
1.2
2.8
122
141
100
258
210
140
138
80
191
1.0
197
203
1,887
1,012
158
11.5
62
67
3,431
1,738
1,433
2.3
92
117
101
80
116
-
194
239
192
120
260
-
198
216
3,724
1,938
1,809
-
101
126
16
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By industry
($m)
Manufacturing
Building and construction
Housing loans
General commerce
Transportation, storage &
communications
Financial institutions, investment &
holding companies
Professionals & private individuals
(except housing loans)
Others
30 Jun 2011
31 Mar 2011
31 Dec 2010
30 Jun 2010
NPA
SP
NPA
SP
NPA
SP
NPA
SP
415
84
107
252
280
32
14
105
462
98
115
274
284
32
16
120
502
90
118
248
325
25
17
107
612
47
140
411
351
13
21
197
575
229
630
212
646
183
284
115
867
366
948
374
960
399
1,622
882
180
69
179
76
173
74
176
75
117
68
100
48
141
82
139
84
2,597
10
1,163
3
2,806
25
1,162
6
2,878
28
1,212
6
3,431
101
1,738
80
276
109
267
105
307
127
192
120
Total non-performing assets
2,883
1,275
3,098
1,273
1,345
3,724
1,938
By loan classification
($m)
30 Jun 2011
Total non-performing loans
Debt securities
Contingent liabilities & others
31 Mar 2011
3,213
31 Dec 2010
30 Jun 2010
NPA
SP
NPA
SP
NPA
SP
NPA
SP
Non-performing assets
Substandard
Doubtful
Loss
Total
1,907
596
380
2,883
431
464
380
1,275
2,091
622
385
3,098
409
479
385
1,273
2,086
737
390
3,213
374
580
391
1,345
1,798
1,390
536
3,724
249
1,153
536
1,938
Restructured assets
Substandard
Doubtful
Loss
Total
951
122
28
1,101
209
105
28
342
443
109
30
582
48
97
31
176
443
145
28
616
47
128
28
203
385
116
35
536
40
94
36
170
By collateral type
($m)
30 Jun 2011
31 Mar 2011
31 Dec 2010
30 Jun 2010
NPA
NPA
NPA
NPA
2,210
2,375
2,523
2,972
Secured non-performing assets by collateral type
Properties
269
274
250
349
Shares and debentures
Fixed deposits
Others
106
40
258
99
40
310
85
38
317
116
45
242
2,883
3,098
3,213
3,724
Unsecured non-performing assets
Total
17
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By period overdue
($m)
30 Jun 2011
31 Mar 2011
31 Dec 2010
30 Jun 2010
NPA
NPA
NPA
NPA
Not overdue
180 days overdue
1,592
221
134
936
1,178
328
93
1,499
1,294
225
124
1,570
969
771
141
1,843
Total
2,883
3,098
3,213
3,724
Non-performing loans fell 7% from the previous quarter to
$2.60 billion or 1.5% of the loan portfolio from customer
loan repayments. The improvement was across regions
and led by corporate loans. More than half of assets
classified as non-performing were still current in principal
and interest.
Allowance coverage rose to 113% of non-performing
assets and to 148% if collateral was considered,
compared to 103% and 134% respectively in the
previous quarter.
FUNDING SOURCES
($m)
Customer deposits 1/
Interbank liabilities 2/
Other borrowings and liabilities 2/
Shareholders’ funds
Total
30 Jun 2011
31 Mar 2011
31 Dec 2010
30 Jun 2010
210,536
26,799
44,143
28,014
309,492
199,536
21,185
44,786
27,430
292,937
193,692
18,854
44,565
26,599
283,710
183,929
21,152
45,553
25,616
276,250
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
18
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CUSTOMER DEPOSITS 1/
($m)
By currency and product
Singapore dollar
Fixed deposits
Savings accounts
Current accounts
Others
Hong Kong dollar
Fixed deposits
Savings accounts
Current accounts
Others
US dollar
Fixed deposits
Savings accounts
Current accounts
Others
Others
Fixed deposits
Savings accounts
Current accounts
Others
Total
Fixed deposits
Savings accounts
Current accounts
Others
30 Jun 2011
31 Mar 2011
31 Dec 2010
30 Jun 2010
119,723
20,787
81,169
17,143
624
20,217
10,694
6,263
2,929
331
33,868
16,134
2,925
12,767
2,042
36,728
29,801
2,041
2,917
1,969
210,536
77,416
92,398
35,756
4,966
115,409
20,078
78,983
15,619
729
21,188
10,801
6,622
3,261
504
29,111
15,187
3,218
8,965
1,741
33,828
27,755
1,861
2,586
1,626
199,536
73,821
90,684
30,431
4,600
112,228
20,081
76,417
14,916
814
23,220
12,946
7,082
3,081
111
30,022
16,064
3,255
9,777
926
28,222
22,289
2,035
2,341
1,557
193,692
71,380
88,789
30,115
3,408
105,209
17,921
72,073
14,392
823
23,555
13,281
6,942
3,252
80
26,104
13,185
3,193
7,053
2,673
29,061
22,636
1,981
2,499
1,945
183,929
67,023
84,189
27,196
5,521
Note:
1/ Includes customer deposits classified as financial liabilities at fair value through profit or loss on the balance sheet
Customer deposits rose 6% from the previous quarter to
$210.5 billion, led by Singapore dollar current and savings
accounts and US dollar current accounts. Chinese yuan
fixed deposits also grew.
Compared to a year ago, customer deposits were 14%
higher, with the growth led by Singapore dollar, Chinese
yuan and US dollar deposits.
OTHER BORROWINGS & LIABILITIES
($m)
Subordinated term debts1/
Other debt securities in issue1/
Due within 1 year
Due after 1 year
Others
Total
30 Jun 2011
31 Mar 2011
31 Dec 2010
30 Jun 2010
5,058
6,252
6,398
6,956
957
1,835
36,293
44,143
585
1,683
36,266
44,786
505
1,655
36,007
44,565
601
312
37,684
45,553
Notes:
1/ Unsecured
19
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
VALUE AT RISK AND TRADING INCOME
The Group uses a Value at Risk (VaR) measure as one mechanism for monitoring and controlling trading risk. The VaR is
calculated using a one-day time horizon and a 99% confidence interval. The following table shows the period-end, average,
high and low VaR for the trading risk exposure of the Group for the period from 1 July 2010 to 30 June 2011. The Group’s
trading book VaR methodology is based on Historical Simulation VaR.
($m)
As at 30 Jun 2011
Total
1 Jul 2010 to 30 Jun 2011
High
Average
17
27
Low
42
15
The charts below provide the range of VaR and the daily distribution of trading income in the trading portfolio for the
period from 1 July 2010 to 30 June 2011.
D BSH Gr ou p V a R f or Tr a d in g Book
25
No. of Days
20
15
10
5
> 43- 44
> 42- 43
> 41- 42
> 40- 41
> 39- 40
> 38- 39
> 37- 38
> 36- 37
> 35- 36
> 34- 35
> 33- 34
> 32- 33
> 31- 32
> 30- 31
> 29- 30
> 28- 29
> 27- 28
> 26- 27
> 25- 26
> 24- 25
> 23- 24
> 22- 23
> 21- 22
> 20- 21
> 19- 20
> 18- 19
> 17- 18
> 16- 17
> 15- 16
0
VaR ( S$ m illion)
Daily Distribution of Treasury & Markets Group Trading Income
(1 Jul 2010 to 30 Jun 2011)
45
40
35
25
20
15
10
5
Trading income (S$ million)
20
>28-30
>26-28
>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)
>(20)-(18)
>(22)-(20)
>(24)-(22)
>(26)-(24)
>(28)-(26)
>(30)-(28)
>(32)-(30)
0
>(34)-(32)
No. of days
30
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CAPITAL ADEQUACY
($m)
30 Jun 2011
31 Mar 2011
31 Dec 2010
30 Jun 2010
9,256
22,596
(5,025)
26,827
8,784
23,103
(5,051)
26,836
8,780
23,927
(5,064)
27,643
8,650
20,547
(5,044)
24,153
820
5,058
79
(101)
32,683
198,445
667
5,174
112
(134)
32,655
189,644
696
5,281
149
(142)
33,627
182,694
757
5,714
94
(139)
30,579
184,824
11.5
13.5
3.0
16.5
11.5
14.2
3.0
17.2
11.8
15.1
3.3
18.4
11.1
13.1
3.4
16.5
Tier 1
Share capital
Disclosed reserves and others
Less: Tier 1 Deductions
Eligible Tier 1
Tier 2
Loan allowances admitted as Tier 2
Subordinated debts
Revaluation surplus from equity securities
Less: Tier 2 Deductions
Total eligible capital
Risk-weighted assets
Capital adequacy ratio (%)
Core Tier 1 ratio
Tier 1 ratio
Tier 2 ratio
Total (Tier 1 & 2) ratio
The Group’s capital adequacy ratio declined from 17.2% to 16.5% due primarily to an increase in risk-weighted assets. The
impact of the redemption of the DBS Bank S$1.1 billion 6% preference shares in May 2011 was offset by dividends retained
through the DBSH Scrip Dividend Scheme and profits for the quarter.
UNREALISED VALUATION SURPLUS/(LOSSES)
($m)
1/
30 Jun 2011
31 Mar 2011
31 Dec 2010
30 Jun 2010
513
119
632
527
72
599
507
26
533
507
94
601
Properties
Financial investments
Total
Note:
1/ Valuation surplus/(loss) was not recognised in the total comprehensive income
The amount of unrealised valuation surplus increased from $599 million in the previous quarter to $632 million mainly due to
improved valuations of financial investments.
21
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Consolidated Income Statement
In $ millions
Income
Interest income
Interest expense
Net interest income
Net fee and commission income
Net trading income
2nd Qtr 2nd Qtr +/(-)
2011
2010
%
1st Qtr +/(-) 1st Half 1st Half +/(-)
2011
%
2011
2010
%
1,580
381
1,199
387
146
1,409
342
1,067
358
266
12
11
12
8
(45)
1,485
363
1,122
416
269
6
5
7
(7)
(46)
3,065
744
2,321
803
415
2,781
648
2,133
699
526
10
15
9
15
(21)
82
24
12
98
14
NM
(16)
71
(11)
84
29
NM
(2)
(17)
(11)
166
53
(18)
148
40
39
12
33
1,838
1,815
1
1,909
(4)
3,747
3,528
6
Expenses
Employee benefits
Depreciation of properties and other fixed assets
Other expenses
423
44
331
362
46
309
17
(4)
7
405
46
322
4
(4)
3
828
90
653
700
94
625
18
(4)
4
Goodwill charges
Allowances for credit and other losses
137
1,018
204
NM
(33)
125
10
262
1,018
559
NM
(53)
Total expenses
935
1,939
(52)
898
4
1,833
2,996
(39)
Profit/(Loss)
Share of profits of associates
Profit/(Loss) before tax
903
31
934
(124)
25
(99)
NM
24
NM
1,011
24
1,035
(11)
29
(10)
1,914
55
1,969
532 >100
47
17
579 >100
Income tax expense
Net profit/(loss)
136
798
148
(247)
(8)
NM
140
895
(3)
(11)
276
1,693
237
16
342 >100
735
63
798
(300)
53
(247)
NM
19
NM
807
88
895
(9)
(28)
(11)
1,542
151
1,693
232 >100
110
37
342 >100
Net income/(loss) from financial instruments designated at fair value
Net income from financial investments
Other income
Total income
Attributable to:
Shareholders
Non-controlling interests
Unaudited Consolidated Statement of Comprehensive Income
In $ millions
Net profit/(loss)
Other comprehensive income:
Foreign currency translation differences for foreign operations
Share of other comprehensive income of associates
Available-for-sale financial assets
Net valuation taken to equity
Transferred to income statement on sale
Tax on items taken directly to or transferred from equity
Other comprehensive income, net of tax
Total comprehensive income
Attributable to:
Shareholders
Non-controlling interests
2nd Qtr 2nd Qtr
2011
2010
+/(-)
%
1st Qtr
2011
+/(-) 1st Half 1st Half
%
2011
2010
+/(-)
%
798
(247)
NM
895
(11)
1,693
342
>100
(20)
7
(12)
7
(67)
-
(19)
(18)
(5)
NM
(39)
(11)
19
4
NM
NM
98
(78)
2
9
227
(59)
(1)
162
(57)
(32)
NM
(94)
92
(66)
3
(8)
7
(18)
(33)
NM
190
(144)
5
1
457
(58)
(36) (>100)
(23)
NM
421 (100)
807
(85)
NM
887
(9)
1,694
763
>100
748
59
807
(135)
50
(85)
NM
18
NM
818
69
887
(9)
(14)
(9)
1,566
128
1,694
660
103
763
>100
24
>100
22
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Balance Sheets
In $ millions
30 Jun
2011
GROUP
31 Mar
31 Dec
2011
2010 1/
30 Jun
2010
30 Jun
2011
COMPANY
31 Mar
31 Dec
2011
2010 1/
30 Jun
2010
ASSETS
Cash and balances with central banks
Singapore Government securities and treasury bills
Due from banks
Financial assets at fair value though profit or loss 2/
Positive fair values for financial derivatives
Loans and advances to customers
Financial investments
Securities pledged
Subsidiaries
Investments in associates
Goodwill on consolidation
Properties and other fixed assets
Investment properties
Deferred tax assets
Other assets
31,235
12,894
23,579
11,551
16,839
168,272
26,980
2,159
29,344
11,697
23,916
11,452
16,241
157,060
26,670
1,972
31,203
11,546
20,306
10,179
16,767
151,698
26,550
1,982
22,571
15,364
19,237
11,660
17,558
145,403
27,420
2,076
10,464
10,451
10,438
9,726
839
4,802
981
357
100
8,904
811
4,802
1,006
355
98
7,513
813
4,802
1,025
358
102
6,379
694
4,802
1,066
407
105
7,887
21
22
63
65
TOTAL ASSETS
309,492
292,937
283,710
276,250
10,485
10,473
10,501
9,791
Due to banks
Due to non-bank customers
Financial liabilities at fair value through profit or loss 3/
Negative fair values for financial derivatives
Bills payable
Current tax liabilities
Deferred tax liabilities
Other liabilities
Other debt securities in issue
Subordinated term debts
26,629
203,466
12,047
17,352
399
948
36
8,481
2,792
5,058
21,084
193,030
11,571
16,913
675
914
37
7,242
2,268
6,252
18,811
187,695
10,228
17,222
601
879
40
6,574
2,160
6,398
21,066
178,540
10,919
17,443
744
873
53
9,015
913
6,956
185
6
5
451
TOTAL LIABILITIES
277,208
259,986
250,608
246,522
185
6
5
451
32,284
32,951
33,102
29,728
10,300
10,467
10,496
9,340
Share capital
Treasury shares
Other reserves
Revenue reserves
9,256
(42)
7,086
11,714
8,784
(43)
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 2011.
For the first half of 2011, the Directors have declared an interim one-tier tax-exempt dividend of 28
cents (first half 2010: 28 cents) for each DBSH non-voting convertible preference share (“CPS”) and
each DBSH non-voting redeemable CPS, and an interim one-tier tax-exempt dividend of 28 cents (first
half 2010: 28 cents) for each DBSH ordinary share. The DBSH Scrip Dividend Scheme will be applied
to these dividends.
The first half 2011 one-tier tax exempt dividend is currently scheduled to be paid on or about 30
September 2011. The DBSH shares will be quoted ex-dividend on 8 August 2011. Notice is hereby
given that the Share Transfer Books and Register of Members of the Company will be closed on 12
August 2011. 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 11
August 2011 will be registered to determine shareholders' entitlement to the first half 2011 one-tier tax
exempt dividend. In respect of ordinary shares in the securities accounts with The Central Depository
(Pte) Limited (“CDP”), the 2011 one-tier tax exempt dividend will be paid by DBSH to CDP, which will in
turn distribute the dividend entitlements to shareholders.
A separate announcement which will outline further administrative details on the application of the
DBSH Scrip Dividend Scheme to the first half 2011 dividend will be made in due course.
By order of the Board
Linda Hoon
Group Secretary
27 July 2011
Singapore
More information on the above announcement is available at www.dbs.com/investor
Performance Summary
Unaudited Financial Results
For the First Half / Second Quarter ended
30 June 2011
DBS Group Holdings Ltd
Incorporated in the Republic of Singapore
Company Registration Number: 199901152M
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Contents
Overview
Net Interest Income
Net Fee and Commission Income
Other Non-Interest Income
Expenses
Allowances for Credit and Other Losses
Performance by Business Segments
Performance by Geography
Customer Loans
Non-Performing Assets and Loss Allowance Coverage
Funding Sources
Customer Deposits
Other Borrowings & Liabilities
Value at Risk and Trading Income
Capital Adequacy
Unrealised Valuation Surplus/(Losses)
Unaudited Consolidated Income Statement
Unaudited Consolidated Statement of Comprehensive Income
Unaudited Balance Sheets
Unaudited Consolidated Statement of Changes in Equity
Unaudited Statement of Changes in Equity
Unaudited Consolidated Cash Flow Statement
Additional Information
Issuance of Ordinary Shares
Adoption of New or Revised FRS and INT FRS
Confirmation by the Board
Page
2
4
6
6
7
7
8
11
14
15
18
19
19
20
21
21
22
22
23
24
25
26
27
27
28
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 2010, with the exception of the adoption of new or revised FRS and
Interpretations to FRS (“INT FRS”).
On 1 January 2011, the Group adopted the following new or revised FRS and INT FRS that are issued by the Accounting
Standard Council (ASC), and are relevant for the Group:
•
•
FRS 24 Related Party Disclosures (2009)
Improvements to FRSs (2010)
Refer to page 27 for more information.
2nd Qtr
2011
2nd Qtr
2010
%
chg
1st Qtr
2011
%
chg
1st Half
2011
1st Half
2010
%
chg
1,199
387
252
1,838
798
1,040
137
934
735
-
1,067
358
390
1,815
717
1,098
204
919
718
(1,018)
12
8
(35)
1
11
(5)
(33)
2
2
NM
1,122
416
371
1,909
773
1,136
125
1,035
807
-
7
(7)
(32)
(4)
3
(8)
10
(10)
(9)
-
2,321
803
623
3,747
1,571
2,176
262
1,969
1,542
-
2,133
699
696
3,528
1,419
2,109
559
1,597
1,250
(1,018)
9
15
(10)
6
11
3
(53)
23
23
NM
735
(300)
NM
807
(9)
1,542
232
>100
Selected balance sheet items ($m)
Customer loans 1/
2/
Interbank assets
Total assets
168,706
24,577
309,492
146,070
21,846
276,250
15
13
12
157,455
26,097
292,937
7
(6)
6
168,706
24,577
309,492
146,070
21,846
276,250
15
13
12
Customer deposits 3/
Total liabilities
Shareholders’ funds
210,536
277,208
28,014
183,929
246,522
25,616
14
12
9
199,536
259,986
27,430
6
7
2
210,536
277,208
28,014
183,929
246,522
25,616
14
12
9
1.80
34.8
43.4
0.98
10.62
80.1
1.5
1.84
41.2
39.5
1.07
11.08
79.4
2.3
1.80
41.2
40.5
1.14
12.12
78.9
1.8
1.80
38.1
41.9
1.05
11.38
80.1
1.5
1.88
39.5
40.2
0.93
9.80
79.4
2.3
7
19
9
8
56
Core Tier 1 capital adequacy ratio
11.5
11.1
11.5
11.5
11.1
Tier 1 capital adequacy ratio
Total capital adequacy ratio
13.5
16.5
13.1
16.5
14.2
17.2
13.5
16.5
13.1
16.5
Selected income statement items ($m)
Net interest income
Net fee and commission income
Other non-interest income
Total income
Expenses
Profit before allowances
Allowances for credit and other losses
Profit before tax
Net profit
Goodwill charges
Net profit/(loss) including goodwill charges
Key financial ratios (%) (excluding
4/
goodwill charges
Net interest margin
Non-interest/total income
Cost/income ratio
Return on assets
5/
Return on equity
Loan/deposit ratio
NPL ratio
Specific allowances (loans)/average loans
(bp)
2
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
2nd Qtr
2011
2nd Qtr
2010
1st Qtr
2011
1st Half
2011
1st Half
2010
1.26
1.25
1.41
1.33
1.09
1.26
11.69
0.80
10.88
1.41
11.61
1.33
11.69
0.64
10.88
1.21
1.20
1.36
1.27
1.04
1.21
11.47
0.78
10.68
1.36
11.39
1.27
11.47
0.62
10.68
Per share data ($)
Per basic share
– earnings excluding one-time items and
goodwill charges
– earnings
– net book value 5/ 6/
Per diluted share
– earnings excluding one-time items and
goodwill charges
– earnings
5/ 6/
– net book value
Notes:
1/ Includes customer loans classified as financial assets at fair value through profit or loss on the balance sheet
2/ Includes interbank assets classified as financial assets at fair value through profit or loss on the balance sheet
3/ Includes customer deposits classified as financial liabilities at fair value through profit or loss on the balance sheet
4/ Return on assets, return on equity, specific allowances (loan)/average loan and per share data for the quarters are computed on an annualised basis
5/ Non-controlling interests are not included as equity in the computation of net book value and return on equity
6/ Takes into account 33.6 million shares to be issued on 5 July 2011 pursuant to the Scrip Dividend Scheme
NM Not Meaningful
Second-quarter net profit fell 9% from the previous quarter
as market-related income declined. Underlying operating
trends were positive as customer-related income
continued to grow.
Net interest income rose 7% from the previous quarter to a
record $1.20 billion. Loans rose 7% from regional
corporate borrowing. Net interest margin was stable at
1.80%.
Fee income fell 7% from the previous quarter to $387
million. Lower contributions from investment banking and
stockbroking more than offset improvements in customer
fees from wealth management, trade and remittances and
credit cards. Other non-interest income fell 32% to $252
million as trading gains declined. Income from customer
flows for treasury products was comparable to the
previous quarter.
Expenses rose 3% from the previous quarter to $798
million, and the cost-income ratio rose to 43%.
The non-performing loan rate improved from 1.8% in the
previous quarter to 1.5% due to customer repayments
and loan upgrading. Specific allowances remained low
at seven basis points of loans compared to nine basis
points in the previous quarter. General allowances were
higher in line with loan growth. Allowance coverage rose
to 113% of non-performing assets and to 148% if
collateral was considered.
Compared to a year ago, net profit was 2% higher than
second quarter 2010. Net interest income and
customer-driven non-interest income were higher, and
allowances were lower. These were offset by lower
trading gains and higher expenses.
Return on assets was 0.98% while return on equity was
10.6%. The total capital adequacy ratio stood at 16.5%
with Tier 1 at 13.5% and core Tier 1 at 11.5%.
For the first half, net profit rose 23% to a record $1.54
billion as higher business volumes drove net interest
income and non-interest income to a new high.
3
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET INTEREST INCOME
Average balance
sheet
2nd Qtr 2011
Average
Average
balance Interest
rate
($m)
($m)
(%)
2nd Qtr 2010
Average
Average
balance Interest
rate
($m)
($m)
(%)
1st Qtr 2011
Average
balance
($m)
Interest
($m)
Average
rate
(%)
Interest-bearing
assets
Customer loans
Interbank assets
Securities
Total
161,278
53,737
51,333
266,348
1,080
127
373
1,580
2.68
0.95
2.92
2.38
138,617
43,195
51,138
232,950
984
82
343
1,409
2.85
0.76
2.69
2.43
154,232
49,926
48,564
252,722
1,018
123
344
1,485
2.68
1.00
2.87
2.38
Interest-bearing
liabilities
Customer deposits
Other borrowings
Total
205,628
39,618
245,246
281
100
381
0.55
1.02
0.62
182,951
31,270
214,221
241
101
342
0.53
1.30
0.64
195,404
36,307
231,711
263
100
363
0.55
1.12
0.64
1,199
1.80
1,067
1.84
1,122
1.80
Net interest
income/margin 1/
Average balance
sheet
1st Half 2011
1st Half 2010
Average
Average Average
Average
balance Interest
rate balance Interest
rate
($m)
($m)
(%)
($m)
($m)
(%)
Interest-bearing
assets
Customer loans
Interbank assets
Securities
Total
157,857
51,978
50,011
259,846
2,098
250
717
3,065
2.68
0.97
2.89
2.38
135,532
42,275
51,004
228,811
1,918
156
707
2,781
2.85
0.74
2.80
2.45
Interest-bearing
liabilities
Customer deposits
Other borrowings
Total
200,656
38,132
238,788
544
200
744
0.55
1.06
0.63
182,002
28,648
210,650
456
192
648
0.51
1.35
0.62
2,321
1.80
2,133
1.88
Net interest
income/margin 1/
Note:
1/ Net interest margin is net interest income expressed as a percentage of average interest-earning assets
Net interest income rose 7% from the previous quarter to
$1.20 billion as interest asset volumes, led by customer
loans, increased. Net interest margins were stable at
1.80%. Customer loan yields and deposit costs were
unchanged from the previous quarter, while other asset
yields and liability costs were little changed.
Compared to a year ago, net interest income was 12%
higher as an increase in interest asset volumes was
partially offset by a four basis point reduction in net interest
margins.
For the first half, net interest income rose 9% to a record
$2.32 billion as higher customer loan volumes were partially
offset by lower net interest margins.
4
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
2nd Qtr 2011 versus 2nd Qtr 2010
Volume and rate analysis ($m)
Increase/(decrease) due to change in
2nd Qtr 2011 versus 1st Qtr 2011
Volume
Rate
Net
change
Volume
Rate
Net
change
Customer loans
Interbank assets
Securities
161
20
1
(65)
25
29
96
45
30
47
9
3
(7)
50
2
Total
182
(11)
171
20
76
6
2
26
78
30
16
46
10
(17)
(7)
40
(1)
39
14
5
19
(5)
(5)
14
14
136
(4)
132
57
7
64
Interest income
Interest expense
Customer deposits
Other borrowings
Total
Net impact on interest income
Due to change in number of days
Net Interest Income
-
13
132
77
1st Half 2011 versus 1st Half 2010
Volume and rate analysis ($m)
Increase/(decrease) due to change in
Volume
Rate
Net
change
316
36
(14)
338
(136)
58
24
(54)
180
94
10
284
47
37
84
41
(29)
12
88
8
96
254
(66)
188
Interest income
Customer loans
Interbank assets
Securities
Total
Interest expense
Customer deposits
Other borrowings
Total
Net impact on interest income
Due to change in number of days
Net Interest Income
188
5
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NET FEE AND COMMISSION INCOME
($m)
Stockbroking
Investment banking
Trade and remittances
Loan related
Guarantees
Deposit related
Credit card
Fund management
Wealth management
Others
Total
2nd Qtr
2011
2nd Qtr
2010
% chg
1st Qtr
2011
% chg
1st Half
2011
1st Half
2010
% chg
34
44
66
95
16
22
37
6
52
15
387
42
29
57
101
16
22
37
6
34
14
358
(19)
52
16
(6)
53
7
8
43
73
63
93
20
20
34
5
51
14
416
(21)
(40)
5
2
(20)
10
9
20
2
7
(7)
77
117
129
188
36
42
71
11
103
29
803
84
56
116
201
29
42
72
11
61
27
699
(8)
>100
11
(6)
24
(1)
69
7
15
Net fee and commission income decreased 7% from the
previous quarter to $387 million. Stockbroking commissions
declined due to lower market volumes. Investment banking
fees, which had benefited from strong IPO activity in the
previous quarter, also fell. These declines more than offset
gains in trade and remittances, wealth management and
credit cards.
Compared to a year ago, net fee and commission income
was 8% higher as improved contributions from investment
banking, trade and remittances and wealth management
were partially offset by a decline in stockbroking
commissions.
Net fee and commission income for the first half rose 15%
to $803 million as contributions increased in a broad range
of activities.
OTHER NON-INTEREST INCOME
($m)
2nd Qtr
2011
2nd Qtr
2010
% chg
1st Qtr
2011
% chg
1st Half
2011
1st Half
2010
% chg
Net trading income
Net income/(loss) from financial
instruments designated at fair value
Net income on financial
investments
Net gain on fixed assets
Others (include rental income)
146
266
(45)
269
(46)
415
526
(21)
-
12
NM
(11)
NM
(11)
(18)
39
82
98
(16)
84
(2)
166
148
12
9
15
3
11
>100
36
6
23
50
(35)
15
38
17
23
(12)
65
Total
252
390
(35)
371
(32)
623
696
(10)
Note:
NM Not Meaningful
Net trading income (including net income from financial
instruments designated at fair value) fell to $146 million
from $258 million in the previous quarter and $278
million a year ago. The decline was due to the markedto-market impact of hedges taken for fixed income
investments. Income from customer flows was
comparable to the previous quarter and higher than a
year ago.
For the first half, net trading income fell 20% from a year
ago to $404 million. Higher income from customer flows
was more than offset by a decline in trading gains. Total
other non-interest income fell 10% to $623 million as the
decline in net trading income was partially offset by
higher net income from financial investments.
6
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
EXPENSES
($m)
Staff
Occupancy
Computerisation
Revenue-related
Others
Total
Staff headcount at period-end
2nd Qtr 2nd Qtr
2011
2010
% chg
1st Qtr
2011
% chg 1st Half 1st Half
2011
2010
% chg
423
72
147
39
117
798
17,274
362
65
131
35
124
717
14,615
17
11
12
11
(6)
11
18
405
70
152
38
108
773
16,617
4
3
(3)
3
8
3
4
828
142
299
77
225
1,571
17,274
700
135
260
66
258
1,419
14,615
18
5
15
17
(13)
11
18
44
1
46
1
(4)
-
46
1
(4)
-
90
2
94
2
(4)
-
2
2
-
1
100
3
4
(25)
Included in the above table were:
Depreciation of properties and other fixed
assets
Directors’ fees
Audit fees payable
Expenses of $798 million were 3% above the previous
quarter. Staff costs rose with a higher headcount, while
non-staff costs also rose. Compared to a year ago, costs
were 11% higher.
For the first half, costs rose 11% to $1.57 billion as
headcount was increased and investments were made
to support higher business volumes and build capacity
for future growth.
ALLOWANCES FOR CREDIT AND OTHER LOSSES
($m)
General allowances (GP)
2nd Qtr 2nd Qtr
2011
2010
% chg
1st Qtr
2011
% chg 1st Half 1st Half % chg
2011
2010
99
124
(20)
61
62
160
149
7
Specific allowances (SP) for loans 1/
Singapore
Hong Kong
Rest of Greater China
South and South-east Asia
Rest of the world
27
(10)
8
(6)
4
31
68
1
(4)
13
6
52
(60)
NM
NM
NM
(33)
(40)
34
2
3
(8)
2
35
(21)
NM
>100
25
100
(11)
61
(8)
11
(14)
6
66
392
11
3
10
12
356
(84)
(NM)
>100
NM
(50)
(81)
Specific allowances (SP) for securities,
properties and other assets
11
12
(8)
30
(63)
41
18
>100
137
204
(33)
125
10
262
559
(53)
Total
Note:
1/
Specific allowances for loans are classified according to where the borrower is incorporated.
Specific allowances for loans fell to $27 million from $34
million in the previous quarter and $68 million a year ago
as customer repayments increased. General allowances
rose 62% from the previous quarter to $99 million in line
with loan growth.
For the first half, total allowances fell 53% to $262
million, with an 84% decline in specific allowances for
loans partially offset by higher specific allowances for
non-loan assets and general allowances.
7
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY BUSINESS SEGMENTS
($m)
Consumer/
Private
Banking
Selected income items
2nd Qtr 2011
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
1st Qtr 2011
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Institutional
Banking
Treasury
Others
Total
375
187
562
377
26
159
552
435
987
318
72
7
604
247
(14)
233
103
(4)
134
25
31
56
43
24
37
1,199
639
1,838
798
137
31
934
342
171
513
364
16
133
519
468
987
294
56
7
644
224
80
304
94
7
203
37
68
105
21
46
17
55
1,122
787
1,909
773
125
24
1,035
353
168
521
363
23
135
503
417
920
259
175
8
494
183
173
356
90
266
28
(10)
18
5
6
17
24
1,067
748
1,815
717
204
25
919
717
358
1,075
741
42
292
1,071
903
1,974
612
128
14
1,248
471
66
537
197
3
337
62
99
161
21
89
41
92
2,321
1,426
3,747
1,571
262
55
1,969
1/
2nd Qtr 2010
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
1st Half 2011
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
8
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
Consumer/
Private
Banking
1st Half 2010 1/
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Institutional
Banking
Treasury
Others
Total
712
325
1,037
713
35
289
977
747
1,724
506
503
14
729
397
334
731
171
5
555
47
(11)
36
29
16
33
24
2,133
1,395
3,528
1,419
559
47
1,597
52,591
135,095
102,305
14,699
122,424
6
10
88,004
12
5
59,869
7
2
6,911
11
27
304,690
4,802
309,492
277,208
36
44
-
52,031
125,510
96,656
13,938
112,885
9
12
85,494
4
6
51,746
1
2
9,861
20
26
49,247
113,994
100,057
8,150
115,824
11
13
68,520
3
5
49,489
2
12,689
19
26
1,018
Selected balance sheet and other
2/
items
30 Jun 2011
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 2nd Qtr 2011
Depreciation for 2nd Qtr 2011
Goodwill charge for 2nd Qtr 2011
31 Mar 2011
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 1st Qtr 2011
Depreciation for 1st Qtr 2011
Goodwill charge for 1st Qtr 2011
30 Jun 2010
Total assets before goodwill
Goodwill on consolidation
Total assets
Total liabilities
Capital expenditure for 2nd Qtr 2010
Depreciation for 2nd Qtr 2010
Goodwill charge for 2nd Qtr 2010
288,135
4,802
292,937
259,986
34
46
-
271,448
4,802
276,250
246,522
33
46
1,018
Notes:
1 Allowances for credit and other losses and profits exclude goodwill charges
2/ Refer to sections on Customer Loans and Non-Performing Assets and Loss Allowance Coverage for more information on business segments
The business segment results are prepared based on
the Group’s internal management reporting which
reflects the organisation management structure. As the
activities of the Group are highly integrated, internal
allocation has been made in preparing the segment
information. Amounts for each business segment are
shown after the allocation of certain centralised costs,
funding income and the application of transfer pricing,
where appropriate. Transactions between segments are
recorded within the segment as if they are third party
transactions and are eliminated on consolidation. During the
quarter, no one group of related customers generated more
than 10% of the Group’s revenues.
The various business segments are described below:
9
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Consumer/ Private Banking
Consumer/ Private Banking provides individual customers
with a diverse range of banking and related financial
services. The products and services available to customers
include current and savings accounts, fixed deposits, loans
and home finance, cards, payments, investment and
insurance products.
Compared to the previous quarter, total income rose 10%
to $562 million. Net interest income rose on loan and
deposit volume growth. Expenses rose 4% to $377
million due mainly to higher staff costs. Higher specific
allowances accounted for most of the increase in
allowance charges.
Compared to a year ago, total income increased 8%. The
increase in net interest income was due to higher loan
and deposit volumes partially offset by lower interest
margins. Non-interest interest income benefited from
higher wealth management contributions. Staff and nonstaff costs were higher. Allowances were little changed.
Institutional Banking
Institutional Banking provides financial services and
products to institutional clients including non bank
financial institutions, government linked companies,
large corporates and small and medium-sized
businesses. The business focus is to broaden and
deepen the financial relationship with clients. The
products and services available to customers include
long and short term credit facilities ranging from
specialised lending such as asset financing, project
financing and real estate financing to overdraft, trade,
receivables financing and structured trade; cash
management and deposit; treasury and markets;
corporate finance and advisory banking services for
mergers and acquisitions, capital raising through debt
and equity markets, capital restructuring, syndicated
finance, securities and fiduciary services and private
equity. Institutional Banking also provides equity
services through DBS Vickers Securities (DBSV).
DBSV offers a wide range of services to retail and
corporate customers including research, sales and
trading, share placement, nominees and securities
custodian services and distribution of primary and
secondary issues.
Compared to the previous quarter, total income was
unchanged at $987 million. An increase in net interest
income due to higher loan and deposit volumes was offset
by a decline in non-interest income. Expenses increased
8% to $318 million on higher staff and non-staff costs.
General allowances were higher.
Compared to a year ago, total income grew 7% on higher
loan and deposit volumes as well as better treasury
product cross-seling. Expenses were 23% higher due to
increased headcount and investment costs to support
higher business volumes. Allowances declined 59% as
specific allowances fell.
Treasury
Treasury provides treasury services to corporations,
institutional and private investors, financial institutions and
other market participants. It is primarily involved in sales,
structuring, market making and trading across a broad
range of financial products including foreign exchange,
interest rate, debt, credit, equity and other structured
derivatives. Income from these financial products and
services offered to the customer of other business
segments, such as Consumer/Private Banking and
Institutional Banking, is reflected in the respective
segments. Treasury is also responsible for
facilitating the execution of Group’s asset and liability
interest rate positions and management of the investment
of the Group’s excess liquidity and shareholders’ funds.
Treasury income fell 23% from the previous quarter and
35% from a year ago to $233 million as an increase in net
interest income was more than offset by a decline in noninterest income.
Others
Others encompasses a range of activities from corporate
decisions and income and expenses not attributed to other
business segments.
10
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
PERFORMANCE BY GEOGRAPHY 1/
($m)
S’pore
Hong
Kong
Rest of
Greater
China
South
and
Southeast Asia
Rest of
world
Total
Selected income items
2nd Qtr 2011
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
728
394
1,122
476
61
5
590
68
459
199
177
376
154
54
168
25
143
124
25
149
94
4
5
56
13
43
91
33
124
58
10
21
77
15
62
57
10
67
16
8
43
15
28
1,199
639
1,838
798
137
31
934
136
735
1st Qtr 2011
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
700
466
1,166
465
113
3
591
61
442
190
200
390
155
9
226
36
190
104
37
141
84
(2)
5
64
11
53
74
57
131
54
2
16
91
16
75
54
27
81
15
3
63
16
47
1,122
787
1,909
773
125
24
1,035
140
807
2nd Qtr 2010
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
643
513
1,156
323
148
2
687
96
538
198
165
363
249
32
82
17
65
79
25
104
78
18
7
15
3
12
70
52
122
52
14
16
72
17
55
77
(7)
70
15
(8)
63
15
48
1,067
748
1,815
717
204
25
919
148
718
1st Half 2011
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
1,428
860
2,288
941
174
8
1,181
129
901
389
377
766
309
63
394
61
333
228
62
290
178
2
10
120
24
96
165
90
255
112
12
37
168
31
137
111
37
148
31
11
106
31
75
2,321
1,426
3,747
1,571
262
55
1,969
276
1,542
2/
11
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
($m)
S’pore
1st Half 2010 2/
Net interest income
Non-interest income
Total income
Expenses
Allowances for credit and other losses
Share of profits of associates
Profit before tax
Income tax expense
Net profit
Hong
Kong
Rest of
Greater
China
South
and
Southeast Asia
Rest of
world
Total
1,300
882
2,182
742
426
5
1,019
122
787
400
330
730
396
39
295
50
245
155
56
211
147
24
11
51
9
42
147
106
253
105
25
31
154
37
117
131
21
152
29
45
78
19
59
2,133
1,395
3,528
1,419
559
47
1,597
237
1,250
Selected balance sheet items
30 Jun 2011
Total assets before goodwill
Goodwill on consolidation
Total assets
Non-current assets 3/
Gross customer loans
191,570
4,802
196,372
1,639
101,450
59,749
59,749
364
40,095
25,727
25,727
138
14,379
15,152
15,152
34
9,586
12,492
12,492
2
5,947
304,690
4,802
309,492
2,177
171,457
31 Mar 2011
Total assets before goodwill
Goodwill on consolidation
Total assets
Non-current assets 3/
Gross customer loans
179,393
4,802
184,195
1,622
95,294
58,571
58,571
386
36,177
23,097
23,097
127
13,028
14,344
14,344
36
9,116
12,730
12,730
1
6,486
288,135
4,802
292,937
2,172
160,101
30 Jun 2010
Total assets before goodwill
Goodwill on consolidation
Total assets
Non-current assets 3/
Gross customer loans
172,591
4,802
177,393
1,486
84,467
54,420
54,420
508
38,052
16,974
16,974
131
11,524
14,344
14,344
40
8,664
13,119
13,119
2
6,441
271,448
4,802
276,250
2,167
149,148
Notes:
1/ The geographical segment analysis is based on the location where transactions and assets are booked
2/ Allowances for credit and other losses and profits exclude goodwill charges
3/ Includes investment in associates, properties and other fixed assets, and investment properties
12
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
The performance by geography is classified based on the
location in which income and assets are recorded.
Singapore
Compared to the previous quarter, net profit rose 4% to
$459 million.
Net interest income grew 4% to $728 million as corporate
and consumer loans increased. Non-interest income fell
15% to $394 million due to lower trading gains.
Expenses rose 2% to $476 million from higher staff costs.
Allowances halved to $61 million, helped by write-backs
of specific allowances as a result of customer repayments.
General allowances were higher in line with stronger loan
growth.
Compared to a year ago, net profit was 15% lower. The
increase in net interest income was more than offset by
non-interest income decline and higher expenses. In 2010,
there was a reversal of compensation to Constellation
note holders from Singapore to Hong Kong.
Hong Kong
The second quarter’s results incorporate an appreciation
of the Singapore dollar against the Hong Kong dollar of
3% from the previous quarter and 11% from a year ago.
Net profit fell 25% from the previous quarter to $143
million. Net interest income rose 5% to $199m as loans
increased 14% in local currency terms. Net interest
margins were stable. Non-interest income fell 12% to
$177 million. Higher fee income from loans, wealth
management and trade were offset by lower Treasury
income.
Expenses were comparable to the previous quarter at
$154 million. Total allowances increased five-fold to $54
million, with most of the increase due to general
allowances in line with loan growth. Specific allowances
were also higher.
Compared to a year ago, net profit more than doubled,
mainly due to higher total income and lower expenses
due to compensation to Constellation note holders in the
previous year, partly offset by higher allowances.
Other countries
Net profit for Rest of Greater China declined 19% from
the previous quarter to $43 million. The increase in net
interest income from higher loan and deposit volumes
was partly offset by a decline in non-interest income.
Expenses increased 12% mainly from higher staff and
marketing costs. Total allowances increased due to
higher recoveries in the previous quarter.
Compared to a year ago, net profit grew 258%. Higher
net interest income and lower specific allowances were
partially offset by an increase in expenses.
Net profit for South and South-east Asia declined 17%
from the previous quarter to $62 million. The increase in
net interest income from higher securities and loan
volumes was offset by lower non-interest income.
Expenses increased 7% mainly from higher staff costs.
Specific allowances were unchanged while general
allowances rose driven by increase in loan volumes.
Compared to a year ago, net profit rose 13%. Increase in
net interest income and lower specific allowances were
partially offset by a fall in non interest income and higher
expenses.
13
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CUSTOMER LOANS
1/
($m)
30 Jun 2011
31 Mar 2011
31 Dec 2010
30 Jun 2010
171,457
160,101
154,722
149,148
General allowances
Net total
1,123
1,628
168,706
1,107
1,539
157,455
1,152
1,476
152,094
1,645
1,433
146,070
By business unit
Consumer/ Private Banking
Institutional Banking
Others
Total (Gross)
52,982
116,714
1,761
171,457
51,083
107,637
1,381
160,101
50,256
103,219
1,247
154,722
48,386
100,427
335
149,148
By geography 2/
Singapore
Hong Kong
Rest of Greater China
South and South-east Asia
Rest of the world
Total (Gross)
83,466
36,933
19,121
15,918
16,019
171,457
77,824
36,556
14,262
15,430
16,029
160,101
74,595
36,688
13,495
13,976
15,968
154,722
70,698
36,982
11,455
13,653
16,360
149,148
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)
22,508
24,555
39,368
23,545
15,938
16,104
12,526
16,913
171,457
19,820
23,537
38,929
17,554
14,872
17,698
11,447
16,244
160,101
19,217
21,385
38,676
16,732
14,378
18,517
11,142
14,675
154,722
18,404
20,282
37,082
14,798
13,294
20,202
10,480
14,606
149,148
72,334
29,376
49,309
20,438
171,457
69,075
30,242
41,493
19,291
160,101
67,439
30,478
38,094
18,711
154,722
60,852
33,073
36,355
18,868
149,148
Gross
Less:
Specific allowances
By currency
Singapore dollar
Hong Kong dollar
US dollar
Others
Total (Gross)
Notes:
1/ Includes customer loans classified as financial assets at fair value through profit or loss on the balance sheet
2/ Loans by geography are classified according to where the borrower is incorporated
Gross customer loans rose 7% from the previous
quarter to $171.5 billion. The growth was led by
corporate borrowing in Singapore and rest of Greater
China. Part of the increase was due to short-term trade
financing for China-incorporated corporates.
Gross loans were 15% higher than a year ago, with the
expansion spread across regions and across corporate
and consumer borrowers.
14
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
NON-PERFORMING ASSETS AND LOSS ALLOWANCE COVERAGE
1/
By business unit
30 Jun 2011
Consumer/ Private
Banking
Institutional Banking
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
31 Mar 2011
Consumer/ Private
Banking
Institutional Banking
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
31 Dec 2010
Consumer/ Private
Banking
Institutional Banking
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
NPA
($m)
SP
($m)
GP
($m)
NPL
(% of loans)
(GP+SP)/NPA
(%)
(GP+SP)/
unsecured
NPA
(%)
302
94
529
0.6
206
356
2,295
1,069
1,099
2.0
94
120
2,597
1,163
1,628
1.5
107
141
10
3
103
-
1,060
2,120
276
109
260
-
134
167
2,883
1,275
1,991
-
113
148
312
104
510
0.6
197
332
2,494
1,058
1,029
2.3
84
107
2,806
1,162
1,539
1.8
96
127
25
6
105
-
444
1,586
267
105
259
-
136
153
3,098
1,273
1,903
-
103
134
317
107
502
0.6
192
323
2,561
1,105
974
2.5
81
102
2,878
1,212
1,476
1.9
93
121
28
6
124
-
464
1,300
307
127
252
-
123
134
3,213
1,345
1,852
-
100
127
396
168
482
0.8
164
263
3,035
1,570
951
3.0
83
102
3,431
1,738
1,433
2.3
92
117
101
80
116
-
194
239
192
120
260
-
198
216
3,724
1,938
1,809
-
101
126
30 Jun 2010
Consumer/ Private
Banking
Institutional Banking
Total non-performing
loans (NPL)
Debt securities
Contingent liabilities &
others
Total non-performing
assets (NPA)
Notes:
1/ Allowances for credit and other losses exclude one-time items
15
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By geography
30 Jun 2011
Singapore
Hong Kong
Rest of Greater China
South and South-east
Asia
Rest of the World
Total non-performing
loans
Debt securities
Contingent liabilities
& others
Total non-performing
assets
31 Mar 2011
Singapore
Hong Kong
Rest of Greater China
South and South-east
Asia
Rest of the World
Total non-performing
loans
Debt securities
Contingent liabilities
& others
Total non-performing
assets
31 Dec 2010
Singapore
Hong Kong
Rest of Greater China
South and South-east
Asia
Rest of the World
Total non-performing
loans
Debt securities
Contingent liabilities
& others
Total non-performing
assets
30 Jun 2010
Singapore
Hong Kong
Rest of Greater China
South and South-east
Asia
Rest of the World
Total non-performing
loans
Debt securities
Contingent liabilities
& others
Total non-performing
assets
NPA
($m)
SP
($m)
GP
($m)
NPL
(% of loans)
(GP+SP)/NPA
(%)
(GP+SP)/
unsecured
NPA
(%)
512
300
233
189
169
151
683
372
201
0.6
0.8
1.2
170
180
151
339
259
219
174
98
212
1.1
178
235
1,378
556
160
8.6
52
58
2,597
1,163
1,628
1.5
107
141
10
3
103
-
1,060
2,120
276
109
260
-
134
167
2,883
1,275
1,991
-
113
148
571
328
240
193
186
155
648
368
151
0.7
0.9
1.7
147
169
128
321
244
184
175
99
212
1.1
178
211
1,492
529
160
9.3
46
52
2,806
1,162
1,539
1.8
96
127
25
6
105
-
444
1,586
267
105
259
-
136
153
3,098
1,273
1,903
-
103
134
594
359
250
196
212
166
613
369
145
0.8
1.0
1.9
136
162
124
300
230
176
164
107
189
1.2
180
185
1,511
531
160
9.5
46
50
2,878
1,212
1,476
1.9
93
121
28
6
124
-
464
1,300
307
127
252
-
123
134
3,213
1,345
1,852
-
100
127
648
442
316
203
253
190
588
371
125
0.9
1.2
2.8
122
141
100
258
210
140
138
80
191
1.0
197
203
1,887
1,012
158
11.5
62
67
3,431
1,738
1,433
2.3
92
117
101
80
116
-
194
239
192
120
260
-
198
216
3,724
1,938
1,809
-
101
126
16
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By industry
($m)
Manufacturing
Building and construction
Housing loans
General commerce
Transportation, storage &
communications
Financial institutions, investment &
holding companies
Professionals & private individuals
(except housing loans)
Others
30 Jun 2011
31 Mar 2011
31 Dec 2010
30 Jun 2010
NPA
SP
NPA
SP
NPA
SP
NPA
SP
415
84
107
252
280
32
14
105
462
98
115
274
284
32
16
120
502
90
118
248
325
25
17
107
612
47
140
411
351
13
21
197
575
229
630
212
646
183
284
115
867
366
948
374
960
399
1,622
882
180
69
179
76
173
74
176
75
117
68
100
48
141
82
139
84
2,597
10
1,163
3
2,806
25
1,162
6
2,878
28
1,212
6
3,431
101
1,738
80
276
109
267
105
307
127
192
120
Total non-performing assets
2,883
1,275
3,098
1,273
1,345
3,724
1,938
By loan classification
($m)
30 Jun 2011
Total non-performing loans
Debt securities
Contingent liabilities & others
31 Mar 2011
3,213
31 Dec 2010
30 Jun 2010
NPA
SP
NPA
SP
NPA
SP
NPA
SP
Non-performing assets
Substandard
Doubtful
Loss
Total
1,907
596
380
2,883
431
464
380
1,275
2,091
622
385
3,098
409
479
385
1,273
2,086
737
390
3,213
374
580
391
1,345
1,798
1,390
536
3,724
249
1,153
536
1,938
Restructured assets
Substandard
Doubtful
Loss
Total
951
122
28
1,101
209
105
28
342
443
109
30
582
48
97
31
176
443
145
28
616
47
128
28
203
385
116
35
536
40
94
36
170
By collateral type
($m)
30 Jun 2011
31 Mar 2011
31 Dec 2010
30 Jun 2010
NPA
NPA
NPA
NPA
2,210
2,375
2,523
2,972
Secured non-performing assets by collateral type
Properties
269
274
250
349
Shares and debentures
Fixed deposits
Others
106
40
258
99
40
310
85
38
317
116
45
242
2,883
3,098
3,213
3,724
Unsecured non-performing assets
Total
17
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
By period overdue
($m)
30 Jun 2011
31 Mar 2011
31 Dec 2010
30 Jun 2010
NPA
NPA
NPA
NPA
Not overdue
180 days overdue
1,592
221
134
936
1,178
328
93
1,499
1,294
225
124
1,570
969
771
141
1,843
Total
2,883
3,098
3,213
3,724
Non-performing loans fell 7% from the previous quarter to
$2.60 billion or 1.5% of the loan portfolio from customer
loan repayments. The improvement was across regions
and led by corporate loans. More than half of assets
classified as non-performing were still current in principal
and interest.
Allowance coverage rose to 113% of non-performing
assets and to 148% if collateral was considered,
compared to 103% and 134% respectively in the
previous quarter.
FUNDING SOURCES
($m)
Customer deposits 1/
Interbank liabilities 2/
Other borrowings and liabilities 2/
Shareholders’ funds
Total
30 Jun 2011
31 Mar 2011
31 Dec 2010
30 Jun 2010
210,536
26,799
44,143
28,014
309,492
199,536
21,185
44,786
27,430
292,937
193,692
18,854
44,565
26,599
283,710
183,929
21,152
45,553
25,616
276,250
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
18
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CUSTOMER DEPOSITS 1/
($m)
By currency and product
Singapore dollar
Fixed deposits
Savings accounts
Current accounts
Others
Hong Kong dollar
Fixed deposits
Savings accounts
Current accounts
Others
US dollar
Fixed deposits
Savings accounts
Current accounts
Others
Others
Fixed deposits
Savings accounts
Current accounts
Others
Total
Fixed deposits
Savings accounts
Current accounts
Others
30 Jun 2011
31 Mar 2011
31 Dec 2010
30 Jun 2010
119,723
20,787
81,169
17,143
624
20,217
10,694
6,263
2,929
331
33,868
16,134
2,925
12,767
2,042
36,728
29,801
2,041
2,917
1,969
210,536
77,416
92,398
35,756
4,966
115,409
20,078
78,983
15,619
729
21,188
10,801
6,622
3,261
504
29,111
15,187
3,218
8,965
1,741
33,828
27,755
1,861
2,586
1,626
199,536
73,821
90,684
30,431
4,600
112,228
20,081
76,417
14,916
814
23,220
12,946
7,082
3,081
111
30,022
16,064
3,255
9,777
926
28,222
22,289
2,035
2,341
1,557
193,692
71,380
88,789
30,115
3,408
105,209
17,921
72,073
14,392
823
23,555
13,281
6,942
3,252
80
26,104
13,185
3,193
7,053
2,673
29,061
22,636
1,981
2,499
1,945
183,929
67,023
84,189
27,196
5,521
Note:
1/ Includes customer deposits classified as financial liabilities at fair value through profit or loss on the balance sheet
Customer deposits rose 6% from the previous quarter to
$210.5 billion, led by Singapore dollar current and savings
accounts and US dollar current accounts. Chinese yuan
fixed deposits also grew.
Compared to a year ago, customer deposits were 14%
higher, with the growth led by Singapore dollar, Chinese
yuan and US dollar deposits.
OTHER BORROWINGS & LIABILITIES
($m)
Subordinated term debts1/
Other debt securities in issue1/
Due within 1 year
Due after 1 year
Others
Total
30 Jun 2011
31 Mar 2011
31 Dec 2010
30 Jun 2010
5,058
6,252
6,398
6,956
957
1,835
36,293
44,143
585
1,683
36,266
44,786
505
1,655
36,007
44,565
601
312
37,684
45,553
Notes:
1/ Unsecured
19
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
VALUE AT RISK AND TRADING INCOME
The Group uses a Value at Risk (VaR) measure as one mechanism for monitoring and controlling trading risk. The VaR is
calculated using a one-day time horizon and a 99% confidence interval. The following table shows the period-end, average,
high and low VaR for the trading risk exposure of the Group for the period from 1 July 2010 to 30 June 2011. The Group’s
trading book VaR methodology is based on Historical Simulation VaR.
($m)
As at 30 Jun 2011
Total
1 Jul 2010 to 30 Jun 2011
High
Average
17
27
Low
42
15
The charts below provide the range of VaR and the daily distribution of trading income in the trading portfolio for the
period from 1 July 2010 to 30 June 2011.
D BSH Gr ou p V a R f or Tr a d in g Book
25
No. of Days
20
15
10
5
> 43- 44
> 42- 43
> 41- 42
> 40- 41
> 39- 40
> 38- 39
> 37- 38
> 36- 37
> 35- 36
> 34- 35
> 33- 34
> 32- 33
> 31- 32
> 30- 31
> 29- 30
> 28- 29
> 27- 28
> 26- 27
> 25- 26
> 24- 25
> 23- 24
> 22- 23
> 21- 22
> 20- 21
> 19- 20
> 18- 19
> 17- 18
> 16- 17
> 15- 16
0
VaR ( S$ m illion)
Daily Distribution of Treasury & Markets Group Trading Income
(1 Jul 2010 to 30 Jun 2011)
45
40
35
25
20
15
10
5
Trading income (S$ million)
20
>28-30
>26-28
>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)
>(20)-(18)
>(22)-(20)
>(24)-(22)
>(26)-(24)
>(28)-(26)
>(30)-(28)
>(32)-(30)
0
>(34)-(32)
No. of days
30
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
CAPITAL ADEQUACY
($m)
30 Jun 2011
31 Mar 2011
31 Dec 2010
30 Jun 2010
9,256
22,596
(5,025)
26,827
8,784
23,103
(5,051)
26,836
8,780
23,927
(5,064)
27,643
8,650
20,547
(5,044)
24,153
820
5,058
79
(101)
32,683
198,445
667
5,174
112
(134)
32,655
189,644
696
5,281
149
(142)
33,627
182,694
757
5,714
94
(139)
30,579
184,824
11.5
13.5
3.0
16.5
11.5
14.2
3.0
17.2
11.8
15.1
3.3
18.4
11.1
13.1
3.4
16.5
Tier 1
Share capital
Disclosed reserves and others
Less: Tier 1 Deductions
Eligible Tier 1
Tier 2
Loan allowances admitted as Tier 2
Subordinated debts
Revaluation surplus from equity securities
Less: Tier 2 Deductions
Total eligible capital
Risk-weighted assets
Capital adequacy ratio (%)
Core Tier 1 ratio
Tier 1 ratio
Tier 2 ratio
Total (Tier 1 & 2) ratio
The Group’s capital adequacy ratio declined from 17.2% to 16.5% due primarily to an increase in risk-weighted assets. The
impact of the redemption of the DBS Bank S$1.1 billion 6% preference shares in May 2011 was offset by dividends retained
through the DBSH Scrip Dividend Scheme and profits for the quarter.
UNREALISED VALUATION SURPLUS/(LOSSES)
($m)
1/
30 Jun 2011
31 Mar 2011
31 Dec 2010
30 Jun 2010
513
119
632
527
72
599
507
26
533
507
94
601
Properties
Financial investments
Total
Note:
1/ Valuation surplus/(loss) was not recognised in the total comprehensive income
The amount of unrealised valuation surplus increased from $599 million in the previous quarter to $632 million mainly due to
improved valuations of financial investments.
21
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Consolidated Income Statement
In $ millions
Income
Interest income
Interest expense
Net interest income
Net fee and commission income
Net trading income
2nd Qtr 2nd Qtr +/(-)
2011
2010
%
1st Qtr +/(-) 1st Half 1st Half +/(-)
2011
%
2011
2010
%
1,580
381
1,199
387
146
1,409
342
1,067
358
266
12
11
12
8
(45)
1,485
363
1,122
416
269
6
5
7
(7)
(46)
3,065
744
2,321
803
415
2,781
648
2,133
699
526
10
15
9
15
(21)
82
24
12
98
14
NM
(16)
71
(11)
84
29
NM
(2)
(17)
(11)
166
53
(18)
148
40
39
12
33
1,838
1,815
1
1,909
(4)
3,747
3,528
6
Expenses
Employee benefits
Depreciation of properties and other fixed assets
Other expenses
423
44
331
362
46
309
17
(4)
7
405
46
322
4
(4)
3
828
90
653
700
94
625
18
(4)
4
Goodwill charges
Allowances for credit and other losses
137
1,018
204
NM
(33)
125
10
262
1,018
559
NM
(53)
Total expenses
935
1,939
(52)
898
4
1,833
2,996
(39)
Profit/(Loss)
Share of profits of associates
Profit/(Loss) before tax
903
31
934
(124)
25
(99)
NM
24
NM
1,011
24
1,035
(11)
29
(10)
1,914
55
1,969
532 >100
47
17
579 >100
Income tax expense
Net profit/(loss)
136
798
148
(247)
(8)
NM
140
895
(3)
(11)
276
1,693
237
16
342 >100
735
63
798
(300)
53
(247)
NM
19
NM
807
88
895
(9)
(28)
(11)
1,542
151
1,693
232 >100
110
37
342 >100
Net income/(loss) from financial instruments designated at fair value
Net income from financial investments
Other income
Total income
Attributable to:
Shareholders
Non-controlling interests
Unaudited Consolidated Statement of Comprehensive Income
In $ millions
Net profit/(loss)
Other comprehensive income:
Foreign currency translation differences for foreign operations
Share of other comprehensive income of associates
Available-for-sale financial assets
Net valuation taken to equity
Transferred to income statement on sale
Tax on items taken directly to or transferred from equity
Other comprehensive income, net of tax
Total comprehensive income
Attributable to:
Shareholders
Non-controlling interests
2nd Qtr 2nd Qtr
2011
2010
+/(-)
%
1st Qtr
2011
+/(-) 1st Half 1st Half
%
2011
2010
+/(-)
%
798
(247)
NM
895
(11)
1,693
342
>100
(20)
7
(12)
7
(67)
-
(19)
(18)
(5)
NM
(39)
(11)
19
4
NM
NM
98
(78)
2
9
227
(59)
(1)
162
(57)
(32)
NM
(94)
92
(66)
3
(8)
7
(18)
(33)
NM
190
(144)
5
1
457
(58)
(36) (>100)
(23)
NM
421 (100)
807
(85)
NM
887
(9)
1,694
763
>100
748
59
807
(135)
50
(85)
NM
18
NM
818
69
887
(9)
(14)
(9)
1,566
128
1,694
660
103
763
>100
24
>100
22
DBS GROUP HOLDINGS LTD AND ITS SUBSIDIARIES
Unaudited Balance Sheets
In $ millions
30 Jun
2011
GROUP
31 Mar
31 Dec
2011
2010 1/
30 Jun
2010
30 Jun
2011
COMPANY
31 Mar
31 Dec
2011
2010 1/
30 Jun
2010
ASSETS
Cash and balances with central banks
Singapore Government securities and treasury bills
Due from banks
Financial assets at fair value though profit or loss 2/
Positive fair values for financial derivatives
Loans and advances to customers
Financial investments
Securities pledged
Subsidiaries
Investments in associates
Goodwill on consolidation
Properties and other fixed assets
Investment properties
Deferred tax assets
Other assets
31,235
12,894
23,579
11,551
16,839
168,272
26,980
2,159
29,344
11,697
23,916
11,452
16,241
157,060
26,670
1,972
31,203
11,546
20,306
10,179
16,767
151,698
26,550
1,982
22,571
15,364
19,237
11,660
17,558
145,403
27,420
2,076
10,464
10,451
10,438
9,726
839
4,802
981
357
100
8,904
811
4,802
1,006
355
98
7,513
813
4,802
1,025
358
102
6,379
694
4,802
1,066
407
105
7,887
21
22
63
65
TOTAL ASSETS
309,492
292,937
283,710
276,250
10,485
10,473
10,501
9,791
Due to banks
Due to non-bank customers
Financial liabilities at fair value through profit or loss 3/
Negative fair values for financial derivatives
Bills payable
Current tax liabilities
Deferred tax liabilities
Other liabilities
Other debt securities in issue
Subordinated term debts
26,629
203,466
12,047
17,352
399
948
36
8,481
2,792
5,058
21,084
193,030
11,571
16,913
675
914
37
7,242
2,268
6,252
18,811
187,695
10,228
17,222
601
879
40
6,574
2,160
6,398
21,066
178,540
10,919
17,443
744
873
53
9,015
913
6,956
185
6
5
451
TOTAL LIABILITIES
277,208
259,986
250,608
246,522
185
6
5
451
32,284
32,951
33,102
29,728
10,300
10,467
10,496
9,340
Share capital
Treasury shares
Other reserves
Revenue reserves
9,256
(42)
7,086
11,714
8,784
(43)