1Q06 presentation slides

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.

Sustained customer franchise growth

DBS Group Holdings 1Q 2006 financial results

2

First quarter net profit up 39%

(S$m)

1Q 2006 1Q 2005 % change

Net profit

518

373

39%

Return on equity

12.2%

9.0%

3.2% pts

Strong operating trends; net interest income, net interest

margin at record high

665

850 800

746 712

677 665 685

684

2.23% 2.06%

1.92% 1.84%

1.82% 1.83%

1.92% 1.88%

1.88%

1Q 2004 2Q 2004 3Q 2004 4Q 2004 1Q 2005 2Q 2005 3Q 2005 4Q 2005 1Q 2006

(S$m)

Net interest margin (%) Net interest income

ƒ

Net interest income: $850 million, a record high, 24% from previous year

4

Strong operating trends; continued fee income growth

(S$m)

ƒ

Fee income: 14% from previous year

262

986

933

825

755

626

508

423

274

0

1998

1999

2000

2001

2002

2003

2004

2005 1Q 06

Fee income

Fee income reached a record high, rose

for seven consecutive years

Higher contribution from customer franchise

Operating

profit

ƒ

Customer franchise $623 million

68%

Ö

Consumer

$304 million 64%

Ö

SME

$150 million 50%

Ö

Corporate and

Investment Banking $169 million

99%

6

Asset quality, credit ratings remain strong

„

One of the best asset quality among Asian banks

Ö

NPL rate of 2.1%

Ö

Provision coverage of 100%

„

Strong capital ratios

Ö

Tier 1:

10.2%

Ö

Overall: 14.1%

„

One of the highest credit ratings among Asian banks

Ö

DBS Bank: Moody’s Aa2, S&P’s , Fitch’s

AA-Delivering progressively rising dividends

ƒ

First-quarter dividend of 17 cents per share, from 11 cents

per share a year-ago, same as previous quarter

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.

Sustained customer franchise growth

DBS Group Holdings 1Q 2006 financial results

Strong growth in interest and non-interest income

boost operating profit by 28% on year

(S$m) 1Q 2006 850 262 108 50 420 1,270 300 264 564 706 31 518 YoY % QoQ % 24 14 32 19 19 22 13 19 16 28 (51) 39 6 9 na (45) 34 14 8 (3) 2 25 (44) 35 Net interest income

Fee income Trading income Other income Non-interest income Operating income Staff costs Other expenses Operating expenses Operating profit Provisions Net profit

10

Key ratios improve

(%) _1Q

2006 20054Q

1Q 2005 1.82 22 34 47 9.0 61 2.4 2.06 22 28 49 8.8 68 2.1 Net interest margin

Fee income/total income

Non-interest income/total income

Cost/income ROE Loans/deposits NPL ratio 2.23 21 33 44 12.2 66 2.1

Interest income at quarterly record as margins rise

(S$m)

2005

Net interest margin (%)

2,507 2,691

2,943

685

850 800

746 712

1.82

1.88 1.87 1.91

2.23

2.06

1.92 1.84

2003 2004 2005 1Q 2Q 3Q 4Q 1Q

12

Operating profit higher on year and on quarter

51 39 28 42 100 nm 28 26 28 (18) >100 84 nm 25 1Q

2006 YoY%

QoQ % 307 170 152 118 70 (111) 706 (S$m) Consumer Banking Enterprise Banking

Corporate and Investment Banking

Global Financial Markets

Central Treasury Unit

Central Operations

Total

Loans expand 11% on year

(S$m) DTDB loans

78,818 79,462

61,415

65,048 67,216

69,659 71,055

78,712 78,776

62,424

2,915 2,915

Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar

2004 ₂₀₀₅

2003

2% 4%

3%

4% 2%

11% 0%

1% (1%)

14

Fee income up 14% on year

Dividends and rentals Other income

Fee income

Non-interest income / total income (%) a

1,767 1,788

1,395

(S$m)

353 421 _{307 314} 420

2006 2005

855

751

282

112 111 _{38 21} 150

87 104 127 12 36 229 27 52 8 262 241 242 274 986 933 825 33 37 34 32 41 40 29 28

2003 2004 2005 1Q 2Q 3Q 4Q 1Q

Wealth management revenues increase

1,578

2,905 2,847

868 ₅₇₅ 752 ₆₅₃121 1,262

41 ₄₁ 52

44 247

429

200 1,157 603

683 1,249

1,245 4,334

5,908 7,227

2003 2004 2005 1Q 2Q 3Q 4Q 1Q

Sales (all products)

S’pore 4,162 3,874 3,560 963 794 1,128 675 1,031 HK 4,844 5,368 3,868 1,103 1,069 914 782 886 Fees (unit trusts and bancassurance only)

S’pore + HK 90 119 129 32 35 30 32 36

Structured deposits

Unit trusts Bancassurance

9,242 9,006

7,428

2005

(S$m)

2006

2,066 _1,863 2,042

1,457

16

Cost-income ratio falls to 44%

1,801

1,956 2,026

486 484 505 551 564

44 49

48 43

47

47 44

42

2003 2004 2005 1Q 2Q 3Q 4Q 1Q

2005

Cost/Income (%)

2006

(S$m)

12,673 12,562 12,728

Headcount 12,144 11,454 12,728 11,649 12,090

300 255 279

Staff costs (S$m) 876 993 1,052 265 253

Hong Kong’s operating profit up 36% on year

(S$m) 1 38 8 (9) 28 (24) 33 36 (8) 21 7 36 >100 29 1Q

2006 YoY%

QoQ % 278 90 368 162 206 19 156 Net interest income

Non-interest income

Operating income

Operating expenses

Operating profit

Provisions

Net profit after tax

18

Key Hong Kong ratios improve

(%) _1Q

2006 20054Q

1Q 2005

2.64

24

44

1.34

77 Net interest margin

Non-interest income/total income

Cost/income

ROA

Loans/deposits

1.98

32

50

1.07

75 2.42

20

53

0.94

Continued organic regional growth through branch

network

Tokyo

Manila

Seoul

Taipei

Hong Kong Beijing

Bangkok

Jakarta Kuala Lumpur

Yangon

Labuan

Singapore Mumbai

Shanghai

Indonesia

„ Assets S$2,120 m 108% „ Branches 5 (Jakarta, Medan,

Bandung, Semarang, Surabaya) India

„ Assets S$1,263 m 114% „ Branches 2 (Mumbai,

New Delhi)

China

„ Assets S$5,806 m 13%

„ Branches 5 (Beijing, Guangzhou,

Shanghai, Shenzhen, Suzhou )

„ Rep offices 4 (Dongguan, Fuzhou, Tianjin, Hangzhou)

20

NPL rate stable at 2.1%

2.4 _{2.2 2.0 2.1 2.1} 2.1

2.5 5.2

2003 2004 2005 Mar Jun Sep Dec Mar

Loss Doubtful Substandard

NPL rate (%)

22%

5% 73% 3,780

20%

9% 71% 1,919

19%

1,865

2005

1,750

20%

15% 65% 1,865 (S$m)

1,928 1,896 _1,807

72% 71% 68% 65% 63%

9% 11% 14% 15% 14%

19% 18% 18% 20% 22%

New NPAs decline, recoveries rise

(S$m)

1Q 2006

NPAs at start of period

New NPAs

Net recoveries of existing NPAs

Write-offs

NPAs at end of period

1,865

170

(210)

(75)

1,750

4Q 2005

1,807

250

(150)

(42)

1,865

1Q 2005

1,919

185

(135)

(41)

22 tangerinesin\Analyst presentation\1H2001 Results\06 Analyst Presentation.ppt

Specific provision charges for loans decline

(S$m)

1Q 2006

Add charges for

New NPLs Existing NPLs 39 33 72 3 22 7 32 40 86 33 119 4Q 2005 1 41 6 48 71 1Q 2005 53 33 86 2 34 6 42 44 Subtract charges for

Upgrading

Settlements

Recoveries

1,326

689 769 702 716 726 769 ₇₀₄

1,066

1,017 1,031 1,039 1,068 1,032 1,031 1,045

2,392

1,706 1,800 1,741 1,784 1,757 1,800 1,749

2003 2004 2005 Mar Jun Sep Dec Mar

Coverage ratios (%)

GP SP

2005

(S$m)

Provision coverage rises to 100%

2006

SP+GP / Unsec NPAs 124 187 198 202 201 207 198 218

24

CAR lower as RWA expands

(%)

10.5 11.3 10.6 10.9 10.6 10.4 10.6 _10.2

4.6 4.5 4.2 4.4 4.1 4.3 4.2 _3.9 15.1 15.8 _14.8 15.3 _{14.7 14.7 14.8}

14.1

2003 2004 2005 Mar Jun Sep Dec Mar Tier-1 Tier-2

2005 2006

(S$bn)

Dividend up 55% on year to 17 cents per share

(S¢)

14 14 18

16 16

22

17

11

17 15

15

2002 2003 2004 2005 2006

30

30

40

Interim Final

Quarterly

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.

Sustained customer franchise growth

DBS Group Holdings 1Q 2006 financial results