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Operating trends strengthen
DBS Group Holdings
1Q 2010 financial results
Operating trends strengthen
Business volumes grow, revenues higher
Better performance in Hong Kong
(S$m) 20101Q 20091Q YoY% 20094Q QoQ%
Net interest income 1,066 1,076 (1) 1,127 (5)
Fee income 341 317 8 358 (5) Trading income 230 150 53 55 >100
Other income 76 119 (36) 32 >100
Non-interest income 647 586 10 445 45
Income 1,713 1,662 3 1,572 9
Staff expenses 338 327 3 313 8
Other expenses 364 311 17 387 (6)
Expenses 702 638 10 700 0
Profit before allowances 1,011 1,024 (1) 872 16
Allowances 355 414 (14) 384 (8)
Net profit 532 456 17 493 8
Excluding one-time gains and charges
(%) 20101Q 20094Q 20091Q
Net interest margin 1.93 2.02 1.99
Fee income/total income 20 23 19
Non-interest income/total income 38 28 35
Cost/income 41 45 38
ROE 8.2 7.8 8.0
Loans/deposits 74 71 73
SP/average loans (bp) 97 116 70
NPL ratio 2.7 2.9 2.0
4,455 4,301
4,108
1,076 1,112 1,140 1,127 1,066
1.99 2.01 2.03 2.02
1.93
2.02 2.04
2.17
2007 2008 2009 1Q 2Q 3Q 4Q 1Q
Net interest income and margins decline
(S$m) Net interest margin (%)
0%
133,908 130,583
128,308 127,970
130,557 126,481
127,541
118,615 114,227
108,433
Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar
5%
Loans up 3% on quarter
(S$m)
2007
4%
8%
(1%) 3% (2%)
2008
2%
2009 2010
593
456
754
269 322
76 87 306
317 341
358 361
358 1,394
1,274 1,462
2,055
1,730
2,148
586
680
445
647
437
38
Non-interest income higher
Other income Fee income
Non-interest income / total income (%)
(S$m)
Excluding one-time gains
2009 2010 144
245
200 533 1,421
5,735 1,889
1,176
1,013
2007 2008 2009
26 114 191 201 285
78 143
24
15 18
197 294
433 310
89
1Q 2Q 3Q 4Q 1Q
123 115
16 Sales (all products)
S’pore HK
Fees (unit trusts and bancassurance only) S’pore + HK
Structured deposits
Unit trusts Bancassurance
Unit trust sales continue to improve
7,768 (S$m)
1,745 2,842
1,587 1,255
137
775 970
101 3,924
3,844
249
238 221
112 109
21
238 271
34 509
777
303 474
30
377 296
2,618 2,610 2,604
638 631 635 700 702
38
35
40 45 41
42 43
39
2007 2008 2009 1Q 2Q 3Q 4Q 1Q
Cost/Income (%) (S$m)
Cost-income ratio at 41%
Excluding one-time gains and charges
Operating trends strengthen
Business volumes grow, revenues higher
Better performance in Hong Kong
(S$m) 20101Q 20091Q YoY% 20094Q QoQ%
Net interest income 202 224 (10) 216 (6)
Non-interest income 165 127 30 126 31
Income 367 351 5 342 7
Expenses 147 150 (2) 154 (4)
Profit before allowances 220 201 9 188 17
Allowances 7 88 (92) 37 (81)
Net profit 180 94 91 128 41
Hong Kong’s earnings up 91% on year and 41%
on quarter
1.89
37
45
1.01
90
1.91
36
43
0.70
80 1.80
45
40
1.40
91
Hong Kong’s ratios improve on year
(%)
Net interest margin
Non-interest income/total income
Cost/income
ROA
Loans/deposits
1Q 2009 1Q
Contributions from regional operations up on
quarter
(S$m) 20101Q 20091Q YoY% 20094Q QoQ%
Net interest income 207 197 5 207 0
Non-interest income 113 155 (27) 69 64
Income 320 352 (9) 276 16
Expenses 136 113 20 136 0
Profit before allowances 184 239 (23) 140 31
Allowances 70 100 (30) 138 (49)
Net profit 103 103 0 30 >100
Operating trends strengthen
Business volumes grow, revenues higher
Better performance in Hong Kong
1.1
1.5
2.9 2.8
2.6 2.9 2.7
2.0
2007 2008 2009 Mar Jun Sep Dec Mar
NPL rate falls to 2.7% while allowance coverage
rises
(S$m) Not overdue
<90 days overdue >90 days overdue
NPL ratio (%)
NPAs
Unsecured NPAs
Cumulative general and specific allowances as % of:
114
176
83
108
97
156 135
245
81
119
90
128
83
108
2009 2010
92
119 19%
45% 2,392
8% 49% 4,219
18% 44% 1,442
36%
43% 38%
18% 48% 3,233
34%
26% 36% 4,051
38%
17% 49% 3,823
34%
8% 49% 4,219
43%
7% 52% 4,068
2,392
926 (11) (74)
3,233 3,823
787 (266) (125)
4,219
1Q 2010
NPAs at start of period
New NPAs
Net recoveries of existing NPAs Write-offs
NPAs at end of period
(S$m) 1Q
2009 4Q
2009
New NPAs fall on customer repayments
4,219
207 (246) (112)
0 37 9 46 225
70 160 111 271 125
345 470
0 77 6 83 387
116 Add charges for
New NPLs Existing NPLs
(S$m) 1Q
2010
Subtract charges for Upgrading
Settlements Recoveries
Total SP charges
SP / Average loans (bp)
Specific allowances mainly for existing NPLs
outside of Asia
4Q
2009 20091Q
73 311 384
0 53 7 60 324
AFS portfolio well-balanced between
investment-grade government and corporate debt
27,752 1,050 10,081 7,160 9,461
Mar 10 (S$m)
7,539 Other government securities
Dec 09 (S$m)
33,921 Total
1,016 Equities
12,121 Corporate debt securities
8.9 4.5
10.1
13.1 3.9
3.6 3.7
13.4
13.4 14.0
16.7 17.1
Dec Dec Dec Mar
(S$bn)
Tier 2 (Basel II) (%)
Tier-1 capital
RWA
16.4
184.6 2007 Tier 1 (Basel II)
Tier 1 (Basel I) Tier 2 (Basel I)
Capital ratios strengthened
2008
18.4
182.7
23.6
175.9 2010 2009
23.3
17 17 17
17 14
14
17 14
17
14 17
14
14
2007 2008 2009 2010
(S¢)
