Growth in core businesses
offsets weaker non-interest income
April 29, 2005
DBS Group Holdings
1Q 2005 Financial Results
First quarter net profit at $ 412 million
($ million) 1Q 1Q YoY % 4Q QoQ %
2005 2004 change 2004 change
Net profit excluding 412 592 (30%) 426 (3%) goodwill amortization
Net profit on GAAP 412 482 (15%) 316 30%
basis*
Nine consecutive quarters of loan growth; net interest income highest in ten quarters
Customer loans* $ 71 billion 22%
$ 13 billion
Sustained growth in customer franchise across the region
Net profit
Consumer, SME $ 233 million 18%
Ö Consumer $ 150 million 25%
Ö SME $ 83 million 6%
Strong asset quality, balance sheet supports DBS’ growth
Asset quality one of the best among Asian banks
Ö NPL rate of 2.4%
Ö Provision coverage of 90%
Strong balance sheet
Ö Moody’s Aa2 credit rating among highest of banks competing in Asia-Pacific
Ö Tier 1 ratio: 10.9%
Delivering sustainable and progressively increasing dividends
Instituted quarterly dividend programme
More balanced and diversified business mix
Strengthened customer franchise
Up-to-date risk management practices, technology and operations platform
Continue to extend business model to new geographies, grow our share in existing markets
Operating profits improve 16% on quarter from revenue growth and lower expenses
% change 4Q
2004 1Q
2005 20041Q change%
664
408
1,072
265 244
509
563
62
412
-412
634
636
1,270
257 257
514
756
50
592
110
482
636
391
1,027
259 282
541
486
(31)
426
110
316 5
(100)
(15)
(100)
30 (S$m)
Net interest income
Non-interest income
Operating income
Staff costs
Other operating expenses
Operating expenses
Operating profit
Provisions/(write-backs)
Net profit before goodwill
Goodwill amortisation
Key ratios generally unchanged on quarter
1Q
2005 20044Q 20041Q
(%)
Net interest margin 1.76 1.75 1.79
Non-interest income/total income 38 38 50
Cost/income 47 53 40
ROE 9.9 10.5 15.8
Loans/deposits 61 62 58
Loan + non-trading debt securities/
deposits 81 82 78
Net interest income highest in ten quarters, margins steady
(S$m)
634 645 664
2,566 2,375
2,645
651 636
1.76 1.75
1.83 1.79
1.79 1.79
1.78 1.99
2002 2003 2004 1Q 2Q 3Q 4Q 1Q
Net interest margin (%)
Loans expand 14% on year to record
(S$m) DTDB loans
2,915
3,275
71,060
69,664
61,420 62,429
65,053
67,221
2,915
Dec 2003 Mar 2004 Jun 2004 Sep 2004 Dec 2004 Mar 2005
2%
4%
3% 4%
Fee income from annuity businesses remains steady
548
852
747
342
121 164 120 142
244 60
87
105
13
44 31 17 13
1,031
281
252 254 253 901
814
636
409 447 391 408
48 300 600 900 1200 1500 1800
2002 2003 2004 1Q 2Q 3Q 4Q 1Q
Dividend & rental Other income Fee income (S$m)
Non-interest income / total income (%)
b
1,422
1,840
b
1,883
a
2004 b
a
b
1,578
2,905
374 691 834 868
1,685
1,006 34 327 41 41
27 429
200 1,526 964 1,157
1,732 5,908
7,227
2003 2004 1Q 2Q 3Q 4Q 1Q
2,766
2,093 2,545 1,838
Structured deposits
Unit trusts
Bancassurance
(S$m)
16% on quarter
9,242 9,006
Wealth management sales improve, revenues rise
2004 2005
2,065
Sales (all products)
S’pore 4,162 3,874 1,244 918 1,028 684 963
HK 4,844 5,368 1,522 1,175 1,517 1,154 1,102
Revenues rebound on quarter, customer businesses resilient
Consumer Banking
Enterprise Banking
Corporate and Investment Banking
Global Financial Markets
Central Treasury Unit
Central Operations
Total (S$m)
414
182
174
170
46
86
1,072
384
182
176
409
108
11
1,270
30
0
(2)
(239)
(62)
75
(198)
Change 4Q
2004 1Q
2005 20041Q Change
401
186
162
147
85
46
1,027
Operating costs kept under control
509 541
502 492
514 2,049
1,869 1,868
41
Cost/Income (%)
b (S$m)
b
46a
2004 2005
Annualised cost /
average assets (%) 1.22 1.17 1.22 1.22 1.14 1.20 1.27 1.14
11,649
12,035 12,144 11,454 12,173 10,838 11,083 11,454
Headcount c
265
Hong Kong’s net profit 27% lower on year
(S$m) %
change 4Q
2004 1Q
2005 20041Q change%
Net interest income Non-interest income Operating income Operating expenses
Op profit before provisions Provisions
Net profit
200 99 299 151 148 7
121
(9)
205 124 329 158 171 23
129
(2) 219
139 358 142 216 25
Key Hong Kong ratios continue to support group
1Q
2005 20044Q 20041Q
(%)
Net interest margin 1.92 1.96 2.31
Non-interest income/total income 33 38 39
Cost/income 51 48 40
ROA 1.06 1.11 1.56
Regional revenues continue to grow at faster pace
1Q 2004 1Q 2005
Revenues
Region and rest of world a
Hong Kong Singapore Total
60 365 808 1,233
YoY change (%) Amount (S$m)
85 298 689 1,072
42 (18) (15) (13)
32 168 376 576
13 124 275 412
(59) (26) (27) (40) Net profit b
Region and rest of world a
NPL rate edges down to 2.4% 2500 5000 7500
Mar Jun Sep Dec Mar
Loss Doubtful Substandard
NPL rate (%)
4,224
74%
3,780
(S$m)
3,359
75%
6%
19%
2,182
72% 9%
19%
1,934
70%
1,919
2004
71% 9%
20%
1,919
2005 72%
9% 1,928
19%
2004 2003
Non-performing loans stable as additions offset recoveries and write-offs
1Q 2004 4Q 2004
1Q 2005
NPLs at start of period 1,919 1,934 3,780
New NPLs 185 325 150
Net recoveries of existing NPLs (135) (261) (396)
Write-offs (41) (79) (175)
NPLs at end of period 1,928 1,919 3,359
Specific provision charges remain low
1Q 2004 4Q 2004
1Q 2005 Add charges for
New NPLs 51 74 52
Existing NPLs 33 41 61
85 115 113
Subtract charges for
Upgrading 2 2 5
Settlements 34 63 73
Recoveries 6 13 6
42 79 84
Total SP charges 43 36 29
Provision coverage improves to 90%
(S$m)
1,511 1,323
686 1,199 794 715 686 700
1,064
1,015
1,072
1,025 1,037 1,015 1,036
989 1,819 1,752 1,701 1,736
2,271
1,701 2,387
0 1000 2000 3000 4000 5000
Mar Jun Sep Dec Mar
GP SP
2,500
2004
2004 2005 2003
2002
Coverage ratios (%)
SP+GP / Unsec NPAs 121 124 186 132 156 183 186 202
Tier-1 CAR trimmed as RWA expands in 1Q
10.3 11.3 10.4 11.6 11.8 10.9
4.6 4.5 4.1 4.0 3.6 4.5 4.4
10.5 11.3
5.2
15.5 15.1 15.8 14.5 15.6 15.4 15.8 15.3
0 4 8 12 16 20 24 28
Mar Jun Sep Dec Mar
Tier-1 CAR Tier-2 CAR
2004 2004
(%)
2003 2002
2005
(S$bn)
Quarterly dividend rate of 11 cents
14 14 18
16 16
22
11 0
10 20 30 40 50
2002 2003 2004 1Q 2005
(Cents) Interim
Final
30 30
40
Growth in core businesses
offsets weaker non-interest income
April 29, 2005
