2Q17 presentation slides CEO observations
CEO Observations
August 4, 2017
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or
distributed to parties outside the presentation. DBS Bank accepts no liability whatsoever with respect to the use of this document or its contents.
2Q income: A noisy quarter
Loan book: growth was backended
Net interest margin: SGD impact eroded by HIBOR
Fee income: base year effect of investment banking
Treasury & Markets
2
Business momentum
Mortgage1
Cards1
Market shares at record
Grew market share to
27.9% 28.7%
Jun 2016
ENR
Billings
Jun 2017
19.8% 20.6%
New bookings in 2Q17
16.6%
17.5% 18.1%
19.0%
highest in 5 years
Jun 15
Wealth
Jun 16
Jun 17
Jun 15
Jun 16
Jun 17
Global Transaction Services
AUM +16% YoY
$175bn
Expect ~$20bn add-on with ANZ
Cash/SFS income
Trade assets
(S$bn)
+28% YoY
47
47
44
42
in 1H17
Dec 15 Jun 16 Dec 16 Jun 17
1 Singapore
3
ANZ integration on track
Making good progress across 5 markets
China
Completed
Singapore
Targeted for completion this weekend (5 – 6 August)
Hong Kong
3Q 2017
Taiwan
4Q 2017
Indonesia
1Q 2018
4
1H expenses declined 1%, cost-income ratio improved to 43%
Improved channels and distribution
– Cash, ATMs, branches, contact centre
Digitized end-to-end processes
– Increased digital acquisitions and straight through processing
Simplified business models and structures
– SME, Commodities, Vickers
Optimised technology infrastructure
– Insourcing of applications development, leveraging cloud architecture,
open source platforms, commodity hardware, sourcing and productivity
5
Portfolio update: Support services
(S$b)
Jun 20171
Exposure
Of which: Loan
7
6
Update on portfolio
$1.6b to state-owned / government-linked shipyards
Remaining $5.4b
$2.4b to 5 names
2 names in NPA
NPA = $0.6b
$3.0b to smaller names
NPA = $0.8b
(of which $0.6b in 1H17)
Asset quality pressures
will continue
Event-driven
Previous assessment intact
Minimal new cases into watchlist
NPA formation and SP consistent with guidance
1 Excludes Swiber
6
Outlook
Loan pipeline healthy: maintain mid-single digit growth full-year
Income for 2H: mid-single digit growth
Cost-income ratio: hold around 43%
Specific provisions could be higher than previous guidance
7
August 4, 2017
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or
distributed to parties outside the presentation. DBS Bank accepts no liability whatsoever with respect to the use of this document or its contents.
2Q income: A noisy quarter
Loan book: growth was backended
Net interest margin: SGD impact eroded by HIBOR
Fee income: base year effect of investment banking
Treasury & Markets
2
Business momentum
Mortgage1
Cards1
Market shares at record
Grew market share to
27.9% 28.7%
Jun 2016
ENR
Billings
Jun 2017
19.8% 20.6%
New bookings in 2Q17
16.6%
17.5% 18.1%
19.0%
highest in 5 years
Jun 15
Wealth
Jun 16
Jun 17
Jun 15
Jun 16
Jun 17
Global Transaction Services
AUM +16% YoY
$175bn
Expect ~$20bn add-on with ANZ
Cash/SFS income
Trade assets
(S$bn)
+28% YoY
47
47
44
42
in 1H17
Dec 15 Jun 16 Dec 16 Jun 17
1 Singapore
3
ANZ integration on track
Making good progress across 5 markets
China
Completed
Singapore
Targeted for completion this weekend (5 – 6 August)
Hong Kong
3Q 2017
Taiwan
4Q 2017
Indonesia
1Q 2018
4
1H expenses declined 1%, cost-income ratio improved to 43%
Improved channels and distribution
– Cash, ATMs, branches, contact centre
Digitized end-to-end processes
– Increased digital acquisitions and straight through processing
Simplified business models and structures
– SME, Commodities, Vickers
Optimised technology infrastructure
– Insourcing of applications development, leveraging cloud architecture,
open source platforms, commodity hardware, sourcing and productivity
5
Portfolio update: Support services
(S$b)
Jun 20171
Exposure
Of which: Loan
7
6
Update on portfolio
$1.6b to state-owned / government-linked shipyards
Remaining $5.4b
$2.4b to 5 names
2 names in NPA
NPA = $0.6b
$3.0b to smaller names
NPA = $0.8b
(of which $0.6b in 1H17)
Asset quality pressures
will continue
Event-driven
Previous assessment intact
Minimal new cases into watchlist
NPA formation and SP consistent with guidance
1 Excludes Swiber
6
Outlook
Loan pipeline healthy: maintain mid-single digit growth full-year
Income for 2H: mid-single digit growth
Cost-income ratio: hold around 43%
Specific provisions could be higher than previous guidance
7