DBS Group Holdings 1Q 2002 Financial Results Presentation to Media and Analysts This presentation is available at www.dbs.com April 29, 2002 Disclaimer: The material that follows is a presentation of general background information about the Bank’s activities current at the date of the presentation. 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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DBS Group Holdings1Q 2002 Financial Results
Presentation to Media and Analysts
This presentation is available at www.dbs.com
April 29, 2002
Disclaimer: The material that follows is a presentation of general background information about the Bank’s activities current at the date of the presentation. 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.
2
Highlights of 2002 progress (YoY incl acqn)
` Total revenue $1,024m (1Q01 : $808m) 27%
Non-interest income $355m (1Q01 : $319m) 11%
Net interest income $670m (1Q01 : $489m) 37%
Operating expenses $459m (1Q01 : $383m) 20%
Operating profit (a) $565m (1Q01 : $425m) 33%
(a) Exclude goodwill
Fee income $193m (1Q01 : $118m) 64%
Cash NPAM $346m (1Q01 : $321m) 8%
3
Highlights of 2002 progress (YoY excl acqn)
` Total revenue $785m (1Q01 : $808m) 3%
Non-interest income $254m (1Q01 : $319m) 22%
Net interest income $532m (1Q01 : $489m) 9%
Operating expenses $329m (1Q01 : $383m) 15%
Operating profit $456m (1Q01 : $425m) 7%
NPAM $321m (1Q01 : $321m) -
4
Highlights of 2002 progress (QoQ)
` Total revenue $1,024m (4Q01 : $966m) 6%
Non-interest income $355m (4Q01 : $259m) 37%
Net interest income $670m (4Q01 : $707m) 5%
Operating expenses $459m (4Q01 : $516m) 11%
Operating profit (a) $565m (4Q01 : $450m) 26%
(a) Exclude goodwill
Fee income $193m (4Q01 : $207m) 7%
Cash NPAM $346m (4Q01 : $236m) 46%
5
Net interest margin 2.02% (2001 : 1.87%)
NPLs 5.9% (2001 : 5.7%)
Most ratios improved
Cost-to-income (a) 44.8% (2001 : 49.1%)
Non-interest income / operating income 34.6% (2001 : 36.3%)
Cash ROA (b) 0.91% (2001 : 0.86%)
Cash ROE (b) 10.12% (2001 : 10.07%)
Loan-to-deposit 60.5% (2001 : 63.9%)
Cash EPS (cents) 94 (2001 : 89)
(a) Exclude goodwill(b) Annualized
6
Strong operating income growth
(S$ million)(S$ million)DBS1Q02
DBS4Q01
% Change
DBS1Q01
% Change
Net interest income 670 707 (5.2) 489 36.9
Fee income 193 207 (7.1) 118 63.7Non-interest Income 355 259 36.9 319 11.2
(a) Based on MAS guidelines(a) Based on MAS guidelines
DBS Thai DanuDBS Hong Kong
1,0111,0851,150
1,238
494541
4.1%4.3%4.9%5.2%
7.1%8.3%
Dec 00 Mar 01 Jun 01 Sep 01 Dec 01 Mar 02
17
Provision coverage stable at 60.4%
1,6661,6581,5301,240 1,223
1,464
1,048
1,179 1,155 1,061
1,051
1,055
143.9% 142.5% 132.0%146.5%147.8%
129.9%
51.8% 52.8% 54.7% 58.7% 60.3% 60.4%
Dec 00 Mar 01 Jun 01 Sep 01 Dec 01 Mar 02
General Provisions (GP)Specific Provisions (SP)
SP+GP / NPLs (%)SP+GP / Unsec NPLs (%)
2,286
2,721
(S$ million)
2,274
2,643 2,687 2,719
18
2,576
4,952
3,086 3,094
546 921906
621
358 520 488
3,508
5.9%5.7%7.6%
13.0%
-800
200
1200
2200
3200
4200
5200
6200
7200
8200
Dec 99 Dec 00 Dec 01 Mar 02
Percentage of doubtful and loss NPLs stable
Loss
Doubtful(S$ million) Substandard
8,149
4,411 4,512
NPLs / Loans (%)
(61%)
(8%)
(32%)
(80%)
(12%)
(8%)
(68%)
(12%)
(20%)
(69%)
(11%)
(21%)
4,503
19
15.7 14.412.2 12.5
4.55.2 5.2
3.5
0
4
8
12
16
20
24
Dec 99 Dec 00 Dec 01 Mar 02 Mar 02Proforma for
Dao Heng2nd tranche
Mar 02Proforma for
Dao Heng2nd tranche
Well buffered against risks
DBS Group Holdings Consolidated Capital Adequacy Ratio(%)(%)
14.6
17.717.418.919.2
5.6
9.0
20
Buy-out of minorities in DBS Kwong On Bank (a)
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
Transaction Highlights
Minority shareholders have agreed to exchange
their 12.68% stake for new DBSH shares
DBS’ shareholding in DKOB
(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’ shareholding(87.26%)
Remaining Minorities
(0.05%)
Shares to be acquired(12.68%)
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Operating profit 304 19 301%
Net profit after tax 234 16 278%
Total Assets 34,647 28,512 10%
Customer loans 23,979 17,281 18%
NPL ratio (%) (b) 2.7 15.3 58%
Credit cards in force 100,000 0 NM
Operating profit 304 19 301%
Net profit after tax 234 16 278%
Total Assets 34,647 28,512 10%
Customer loans 23,979 17,281 18%
NPL ratio (%) (b) 2.7 15.3 58%
Credit cards in force 100,000 0 NM
DKOB2001(HK$ million)
DKOB1999
CAGR1999 - 2001
DBS Kwong On’s integration success(a)
(a) Kwong On Bank became a subsidiary of DBS in March 1999(b) Based on HKMA standards
22
Achieved1Q02
Revised Target
Synergies to exceed original HK$540 million estimates
Key Revenue Initiatives:
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
HK$147.4 m HK$750 m (a)
46%
54% 60%
40%
(a) 60% of synergy target is expected for 2002
DBS Group Holdings1Q 2002 Financial Results
Presentation to Media and Analysts
This presentation is available at www.dbs.com
April 29, 2002
Disclaimer: The material that follows is a presentation of general background information about the Bank’s activities current at the date of the presentation. 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.