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Dbs group holdings 1q 2002 financial results presentation to media and analysts

April 29, 2002

DBS Group Holdings

1Q 2002 Financial Results

Presentation to Media and Analysts

This presentation is available at www.dbs.com

Disclaimer: The material that follows is a presentation of general background information about the Bank’s activities current at the date of thepresentation. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice when deciding if an investment is appropriate. DBS Bank accepts no liability whatsoever with respect to the use of this document or its contents.


Dbs group holdings 1q 2002 financial results presentation to media and analysts

Highlights of 2002 progress (YoY incl acqn)

Net interest income$670m (1Q01 : $489m)37%

Fee income $193m (1Q01 : $118m)64%

Non-interest income$355m (1Q01 : $319m)11%

Total revenue$1,024m (1Q01 : $808m)27%

`

Operating expenses $459m (1Q01 : $383m)20%

Operating profit (a)$565m (1Q01 : $425m)33%

Cash NPAM$346m (1Q01 : $321m)8%

(a) Exclude goodwill


Dbs group holdings 1q 2002 financial results presentation to media and analysts

Highlights of 2002 progress (YoY excl acqn)

Net interest income$532m (1Q01 : $489m)9%

Non-interest income$254m (1Q01 : $319m)22%

Total revenue$785m (1Q01 : $808m)3%

`

Operating expenses $329m (1Q01 : $383m)15%

Operating profit$456m (1Q01 : $425m)7%

NPAM$321m (1Q01 : $321m)-


Dbs group holdings 1q 2002 financial results presentation to media and analysts

Highlights of 2002 progress (QoQ)

Net interest income$670m (4Q01 : $707m)5%

Fee income $193m (4Q01 : $207m)7%

Non-interest income$355m (4Q01 : $259m)37%

Total revenue$1,024m (4Q01 : $966m)6%

`

Operating expenses $459m (4Q01 : $516m)11%

Operating profit (a)$565m (4Q01 : $450m)26%

Cash NPAM$346m (4Q01 : $236m)46%

(a) Exclude goodwill


Dbs group holdings 1q 2002 financial results presentation to media and analysts

Cost-to-income (a)44.8% (2001 : 49.1%)

NPLs 5.9% (2001 : 5.7%)

Most ratios improved

Net interest margin2.02% (2001 : 1.87%)

Cash ROA (b)0.91% (2001 : 0.86%)

Cash ROE (b)10.12% (2001 : 10.07%)

Non-interest income /

operating income34.6% (2001 : 36.3%)

Loan-to-deposit 60.5% (2001 : 63.9%)

Cash EPS (cents) 94 (2001 : 89)

(a) Exclude goodwill

(b) Annualized


Dbs group holdings 1q 2002 financial results presentation to media and analysts

Strong operating income growth

DBS

1Q02

DBS

4Q01

%

Change

DBS

1Q01

%

Change

(S$ million)

Net interest income670707(5.2)48936.9

Fee income193207(7.1)11863.7

Non-interest Income35525936.931911.2

Total revenue1,0249666.180826.8

Operating expenses459516(10.9)38319.9

Operating profit56545025.642533.0

Goodwill6868(0.1)-NM

Provisions968710.338154.5

NPAM27816964.8321(13.5)

Cash NPAM34623646.23217.6


Dbs group holdings 1q 2002 financial results presentation to media and analysts

Interest margins remain firm

(S$ million)

Net interest income

Net interest margin

(gross basis)


Dbs group holdings 1q 2002 financial results presentation to media and analysts

Wealth management continues to grow

(S$ million)

Insurance / asset plan

Sales Volume

Unit trusts / Treasury investment products (a)

1,058

1,127

795

643

484

423

372

(a) Unit trusts include Horizon, Ei8ht, Up! and other DBSAM programmes while treasury investment products include Growth and structured notes


Emphasis on non interest income produces stronger returns a

Emphasis on non-interest income produces stronger returns (a)

Non-interest Income to Operating Income

(%)

(a) Exclude extraordinary items


Dbs group holdings 1q 2002 financial results presentation to media and analysts

Greater operating efficiency

DBS

1Q02

DBS

4Q01

%

Change

DBS

1Q01

%

Change

(S$ million)

Group Operating Expenses

DBSH

(excl DHB and DBSV) (a)312333(6.1)366(14.7)

DHB96105(8.3)-NM

DBSV463823.417172.9

Restructuring costs440(89.8)-NM

Total459516(10.9)38319.9

(a) Dao Heng Bank (“DHB”), DBS Vickers (“DBSV”)


Dbs group holdings 1q 2002 financial results presentation to media and analysts

Cost control initiatives effective

Period expenses (a)

(S$ million)

(a)Normalized expenses exclude goodwill and impact of acquisitions


Dbs group holdings 1q 2002 financial results presentation to media and analysts

Dao Heng Bank operating profits up

DHB

4Q01

DHB

1Q02

%

Change

(S$ million) (a)

Net interest income162171(5.3)

Fee income4750(6.4)

Non-interest income665715.3

Total revenue228228(0.1)

Operating expenses96124(22.3)

Operating profit13110426.3

Provisions37(2)NM

Net profit before tax97105(7.7)

Net profit after tax80114(30.0)

(a) Based on Singapore GAAP


Dbs group holdings 1q 2002 financial results presentation to media and analysts

Dao Heng Bank with HK GAAP provisions

DHB

4Q01

DHB

1Q02

%

Change

(S$ million)

Net interest income162171(5.3)

Fee income4750(6.4)

Non-interest income665715.3

Total revenue228228(0.1)

Operating expenses96124(22.3)

Operating profit13110426.3

Provisions (a)1030(66.1)

Net profit before tax1217463.4

(a) Based on Hong Kong GAAP


Dbs group holdings 1q 2002 financial results presentation to media and analysts

DBS Thai Danu Bank operating profits up

DTDB

1Q02

DTDB

4Q01

%

Change

DTDB

1Q01

%

Change

(S$ million) (a)

Net interest income23231.9224.1

Fee income55(1.6)424.7

Non-interest income991.8812.3

Total revenue32321.8306.2

Operating expenses 22222.1223.0

Operating profit10101.3814.4

Non-operating expenses22(1.2)2(13.5)

Provisions55-59.1

Net profit after tax326.4181.0

(a) Assume exchange rate of 1 baht to S$0.0423. Based on Thai GAAP


Dbs group holdings 1q 2002 financial results presentation to media and analysts

NPL quantum down slightly while NPL rate marginally up

Dao Heng Bank

DBS Thai Danu Bank

(S$ million)

Regional 5 Countries

Others

8,149

Singapore

NBk NPLs / NBk Loans (%)

7,086

4,834

4,577

4,512

4,503

4,411

4,305

1,112


Dbs group holdings 1q 2002 financial results presentation to media and analysts

NPLs improving at major subsidiaries (a)

(S$ million)

DBS Thai Danu

DBS Hong Kong

(a) Based on MAS guidelines


Dbs group holdings 1q 2002 financial results presentation to media and analysts

Provision coverage stable at 60.4%

General Provisions (GP)

(S$ million)

Specific Provisions (SP)

SP+GP / Unsec NPLs (%)

SP+GP / NPLs (%)

2,721

2,719

2,687

2,643

2,286

2,274


Dbs group holdings 1q 2002 financial results presentation to media and analysts

Percentage of doubtful and loss NPLs stable

Substandard

(S$ million)

Doubtful

Loss

8,149

NPLs / Loans (%)

4,503

(61%)

4,512

4,411

(8%)

(68%)

(69%)

(80%)

(12%)

(11%)

(8%)

(32%)

(21%)

(20%)

(12%)


Dbs group holdings 1q 2002 financial results presentation to media and analysts

5.6

9.0

Well buffered against risks

(%)

DBS Group Holdings Consolidated Capital Adequacy Ratio

19.2

18.9

17.7

17.4

14.6

Mar 02

Proforma for

Dao Heng

2nd tranche


Buy out of minorities in dbs kwong on bank a

Remaining Minorities

(0.05%)

Shares to be acquired

(12.68%)

DBS’ shareholding

(87.26%)

Buy-out of minorities in DBS Kwong On Bank (a)

Transaction Highlights

DBS’ shareholding in DKOB

  • Minorities agree to sell their 12.68% of DKOB to DBS

  • Purchase consideration of S$210.7 mm / HK$903.8 mm

  • Purchase price per share is S$4.43 / HK$19

  • Approximately 15 mm new DBSH shares (b) would be issued to the minorities

Minority shareholders have agreed to exchange their 12.68% stake for new DBSH shares

(a)DBS owns 87% of DBS Group Holdings HK which in turn owns 100% of DKOB

(b) Computed using DBSH share price of S$13.92 (based on simple average closing price from April 10 to 23, 2002) and a cross HK$/S$ exchange rate of 4.2896


Dbs group holdings 1q 2002 financial results presentation to media and analysts

DBS Kwong On’s integration success

CAGR

1999 - 2001

DKOB

2001

DKOB

1999

(a)

(HK$ million)

Operating profit 304 19301%

Net profit after tax 234 16278%

Total Assets 34,647 28,51210%

Customer loans 23,979 17,28118%

NPL ratio (%) (b) 2.7 15.358%

Credit cards in force 100,0000NM

(a) Kwong On Bank became a subsidiary of DBS in March 1999

(b) Based on HKMA standards


Synergies to exceed original hk 540 million estimates

Synergies to exceed original HK$540 million estimates

Achieved

1Q02

Revised Target

Key RevenueInitiatives:

  • Launch of new funds (knowledge sharing)

  • ALCO Liquidity Management

  • Cross-selling opportunities (eg, T&M, Private banking, Equipment finance, Credit cards and other existing products)

    Select Cost Initiatives:

  • Accelerated implementation of branch closures

  • Active capacity management largely through vacancies and attrition

  • Back office and IT centralization

    Total Synergies

54%

60%

46%

40%

HK$750 m (a)

HK$147.4 m

(a) 60% of synergy target is expected for 2002


Dbs group holdings 1q 2002 financial results presentation to media and analysts

April 29, 2002

DBS Group Holdings

1Q 2002 Financial Results

Presentation to Media and Analysts

This presentation is available at www.dbs.com

Disclaimer: The material that follows is a presentation of general background information about the Bank’s activities current at the date of thepresentation. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice when deciding if an investment is appropriate. DBS Bank accepts no liability whatsoever with respect to the use of this document or its contents.


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