Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or
Operating trends
remain healthy
DBS Group Holdings
4Q 2009 financial results
Operating trends remain healthy
Revenue growth and stable costs
Hong Kong’s performance improves
Full-year profit before allowances at record
2,056 784 3,421 2,610 1,354 1,256 6,031 1,730 433 23 1,274 4,301
FY 2008
(S$m)
FY 2009
YoY %
Net interest income 4,455 4
Fee income 1,394 9
Trading income 433 >100
Other income 321 (26)
Non-interest income 2,148 24
Income 6,603 9
Staff expenses 1,292 3
Other expenses 1,312 (3)
Expenses 2,604 (0)
Profit before allowances 3,999 17
Allowances 1,529 95
Net profit 2,064 0
563 265 942 635 313 322 1,577 437 20 56 361 1,140 3Q 2009 383 269 782 689 343 346 1,471 356 118 (25) 263 1,115 4Q 2008 (S$m) 4Q 2009 YoY % QoQ %
Net interest income 1,127 1 (1)
Fee income 358 36 (1)
Trading income 55 nm (2)
Other income 32 (73) 60
Non-interest income 445 25 2
Income 1,572 7 (0)
Staff expenses 313 (10) (3)
Other expenses 387 13 24
Expenses 700 2 10
Profit before allowances 872 12 (7)
Allowances 384 43 45
Net profit 493 29 (12)
Excluding one-time gains and charges
35 85
69 70
116 SP/average loans (bp)
(%) 20094Q 20093Q 20084Q 2009FY 2008FY
Net interest margin 2.02 2.03 2.04 2.02 2.04
Fee income/total income 23 23 18 21 21
Non-interest income/total income 28 28 24 33 29
Cost/income 45 40 47 39 43
ROE 7.8 9.1 7.6 8.4 10.1
Loans/deposits 71 71 74 71 74
NPL ratio 2.9 2.6 1.5 2.9 1.5
Operating ratios improve on year
4,455 4,301
4,108
1,127 1,057 1,058 1,071 1,115 1,076 1,112 1,140
2.09
2.04
1.99 2.04 1.99 2.01 2.03 2.02
2.02 2.04
2.17
2007 2008 2009 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Net interest income and margins remain firm
(S$m) Net interest margin (%)
0%
130,583 128,308
127,970 130,557
126,481 127,541
118,615 114,227
108,433 104,714
98,957
94,294
86,630
Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec 5%
Loans up 2% on quarter and 3% on year
(S$m)
9%
5%
6%
4%
2006
4%
8%
(1%) 3%
2007
(2%)
2008
2%
Underlying loans and deposits up 2% on quarter
Dec 09 (S$m)
Sep 09 (S$m)
Reported QoQ (%)
Underlying QoQ (%)
Loans
SGD 56,712 56,556 0 0
HKD 30,274 29,042 4 5
USD 29,449 27,773 6 7
Others 16,985 17,492 (3) (3)
Total 133,420 130,863 2 2
Deposits
SGD 103,842 99,475 4 4
HKD 23,625 25,047 (6) (5)
USD 29,018 30,523 (5) (4)
Others 26,947 25,140 7 6
Total 183,432 180,185 2 2
593
456
754
153 199 93 269 322
353
11 76 87
1,462
1,274
1,394
342
316 263
317
358
361 358
327
586
356 541
506 2,148
1,730 2,055
680
445 437
24 23
29
33 33
32 34
38
28 35
28
2007 2008 2009 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Fees and other income resilient on quarter
Other income Fee income
Non-interest income / total income (%)
(S$m)
Excluding one-time gains
144 245 200 533 1,421 5,735 1,889 1,176 1,013
2007 2008 2009
147 18 650 30 198 114 543 26 191 201 15 28 43 24 27 143 560 280
97 197 89
239
294 433
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
123 115 16 662 575 40 480 449 45 334 187 35 2008 111 44 17 Sales (all products)
S’pore HK
Fees (unit trusts and bancassurance only) S’pore + HK
Structured deposits
Unit trusts Bancassurance
Wealth management product sales improve
7,768 (S$m) 1,745 2,842 1,587 1,255 137 775 970 101 3,924 3,844 249 1,237 929 521
155 238 221
2,618 2,610 2,604
656 687 578 689 638 631 635 700
42 43 41
47
38
35
40 45
42 43
39
2007 2008 2009 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Cost/Income (%)
(S$m)
Full-year expenses stable
Cost-income ratio excluding one-time gains and charges
Operating trends remain healthy
Revenue growth and stable costs
Hong Kong’s performance improves
390 233 688 723 1,411
538 873
FY 2008
(S$m)
FY 2009
YoY %
Net interest income 888 2
Non-interest income 478 (11)
Income 1,366 (3)
Expenses 600 (17)
Profit before allowances 766 11
Allowances 210 (10)
Net profit 464 19
Figures for Hong Kong geographical basis and converted to S$ using monthly closing rates. Based on Singapore GAAP. Excluding one-time gains and charges
143 14 186 145 331 105 226
3Q 2009
16 112 130 205 335 114 221
4Q 2008
(S$m)
4Q 2009
YoY %
QoQ %
Net interest income 216 (2) (4)
Non-interest income 126 11 20
Income 342 2 3
Expenses 154 (25) 6
Profit before allowances 188 45 1
Allowances 37 (67) >100
Net profit 128 >100 (10)
Hong Kong’s earnings up strongly on year, down
10% on quarter
1.86
38
51
0.74
84 1.82
34
62
0.11
84 1.94
32
44
1.09
82
1.92
35
44
0.89
90 1.89
37
45
1.01
90
Hong Kong’s ratios improve on year
(%)
Net interest margin
Non-interest income/total income
Cost/income
ROA
Loans/deposits
4Q 2008 4Q
2009
3Q 2009
FY 2009
FY 2008
Regional operations continue to grow
16 44
FY 2008
322 128 528 420 948 389 559
FY 2008
(S$m) 2009FY YoY
%
Net interest income 829 48
Non-interest income 417 7
Income 1,246 31
Expenses 492 17
Profit before allowances 754 43
Allowances 285 >100
Net profit 414 29
(%) FY
2009
Cost/income 39
Net profit contribution to Group 20
Operating trends remain healthy
Revenue growth and stable costs
Hong Kong’s performance improves
1.1
1.5
2.9
1.4 1.3 1.5
2.0
2.8 2.6 2.9
1.0
2007 2008 2009 Mar Jun Sep Dec Mar Jun Sep Dec
NPAs rise on prudent classification, asset quality
trends improving
19% 45% 2,392
(S$m) Not overdue
<90 days overdue >90 days overdue
NPL ratio (%)
8% 49% 4,219
NPAs
Unsecured NPAs
Cumulative general and specific allowances as % of: 114 176 83 108 18% 44% 1,442 97 156 135 245 138 241 116 195 123 209 36% 43% 38% 114 176 19% 43% 1,464 16% 42% 1,978 14% 45% 2,054
38% 42% 41%
4,051
208
(325)
(111)
3,823
4Q 2009
NPAs at start of period
New NPAs
Net recoveries of existing NPAs
Write-offs
NPAs at end of period
(S$m) 4Q
2008 3Q
2009
NPA recoveries remain healthy
3,823
787
(266)
(125)
4,219
2,054
539
(117)
(84)
Add charges for
New NPLs
Existing NPLs
(S$m) 4Q
2009
Subtract charges for
Upgrading
Settlements
Recoveries
Total SP charges
SP / Average loans (bp)
Higher specific allowances for new and existing
NPLs outside of Asia
AFS portfolio well-balanced between
investment-grade government and corporate debt
33,921 1,016 12,121 7,539 13,245
Dec 09 (S$m)
5,863 Other government securities
Sep 09 (S$m)
31,314 Total
918 Equities
12,569 Corporate debt securities
859 152 707 679 28 91 950
CDO portfolio reduced with divestments
Amount as at
Investment portfolio ABS CDOs Non-ABS CDOs – CLOs – Others Trading portfolio Total (S$m) Sep 09 Dec 09 Cumulative allowances % coverage 137 137 0 0 0 – 137 70 91 0 0 0 – –
10.2 8.9 4.3 4.5 10.1 3.9 4.2 13.1 12.5 12.6 12.5
3.6 3.6
3.6 14.5
13.4 14.0
16.7 16.2 16.1 16.7
Dec Dec Dec Mar Jun Sep Dec
(S$bn)
Tier 2 (Basel II)
(%) Tier-1 capital RWA 22.9 182.6 14.8 144.1 16.4 184.6 2007 2006
Tier 1 (Basel II) Tier 1 (Basel I) Tier 2 (Basel I)
Capital ratios remain strong
14
17
14
17
14
17
17
4
17
14
17
14
17
14
17
14
14
2006
2007
2008
2009
(S¢)
Proposed final dividend of 14 cents per share
Ordinary (one-tier) Ordinary (gross) Special (gross)
Record profit before allowances in 2009 reflect strong franchise
Prudent approach to classifying non-performing assets
Balance sheet strength well positions Group to capture growth
opportunities
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.
Operating trends
remain healthy
DBS Group Holdings
4Q 2009 financial results
