Sustained regional growth
across businesses
October 29, 2004
DBS Group Holdings
3Q 2004 Financial Results
Presentation to Media and Analysts
2
Sustained regional growth across businesses
T
One of our best quarterly earnings
T
Continued progress in regional operations
One of our best quarterly earnings
% change 2Q 2004 3Q 2004 3Q 2003 % change 651 405 1,056 226 256 482 574 110 11 350 460 (1) 9 3 7 (2) 2 4 0 55 3 3 10 (16) (2) 10 5 7 (9) 3 (89) 24 19 645 442 1,087 241 250 491 596 110 17 362 472 588 525 1,113 219 239 458 655 107 154 291 398 a (S$m)Net interest income Non-interest income Operating income
Staff costs
Other operating expenses
4
9M recurrent earnings up 64%
(S$m)
Net interest income Non-interest income Operating income
Staff costs
Other operating expenses
Operating expenses Operating profit Goodwill amortisation Provisions NPAM Cash NPAM 9M 2004 9M 2003 % change 10 6 8 11 7 9 8 3 (83) 64 45 1,930 1,479 3,409 717 759 1,476 1,933 330 78 1,200 1,530 1,747 1,398 3,145 648 711 1,359 1,786 320 459 733 1,053 a
Most key operating ratios were better
9M
2004
3Q
2003
3Q
2004
a2Q
2004
a9M
2003
(%)
Net interest margin
1.83
1.79
1.72
1.81
1.76
Non-interest income/total income
41
38
47
43
45
Cost/income 45
46
41
43
43
GAAP ROE
9.0
9.0
8.0
10.5
6.8
Cash ROE
11.7
11.9
10.9
13.3
9.7
Loans/deposits
63
60
60
63
60
Loan + non-trading debt securities/
deposits
84
81
78
84
78
6
Interest margins highest in six quarters
(S$m) Net interest margin (%)
599 588 634 651 645
1,930 2,375
2,645
560 628
1.83 1.79
1.79 1.81
1.72 1.68
1.87 1.81
1.78 1.99
2002 2003 9M 2004
1Q 2Q 3Q 4Q 1Q 2Q 3Q
2003
2004
Customer loans rose 10% from year ago (ex-DTDB)
(S$m) DTDB loans
2,883 2,915
2,915
67,221
65,053
59,940 61,019
61,420 62,429 2,774
3,275
Jun Sep Dec Mar Jun Sep
3%
62,714 63,902
64,335 65,344
68,328
2003 2004
4%
8
Non-interest income boosted by better treasury
income and wealth management revenue in 3Q
548
852
627
275
183 241 153 342 121
213 164 31 44 13 21 25 28 13 88 87 60 797 884 247 240 277 251 259 160 764 442 405 632 425 525 424 448 41 58 51 40 43 47 43 43 36 38 44 50 0 300 600 900 1200 1500
2002 2003 9M 2004
1Q 2Q 3Q 4Q 1Q 2Q 3Q
Dividend & rental Other income Fee income
(S$m)
Non-interest income / total income (%)
b 2003 2004 1,405 1,823 b 1,479 b b 35 a a
1,068 1,078 1,224 891
710
1,396
4,824
4,199
1,047 1,004
1,370 1,403 1,515
1,168 1,516
1,061 775
880 3,982 2,826
3,039 1,552
379 65
453
2,226 8,806
2,059 2,739
2,481 2,438
2,065 1,822
7,025
4,434
2,005
1998 1999 2000 2001 2002 2003 9M 2004
1Q 2Q 3Q 4Q 1Q 2Q 3Q
Singapore Hong Kong
(S$m)
Retail wealth management sales picked up in 3Q
10
Treasury income better than 2Q04
T
Better Treasury non-interest income compared to 2Q04 from higher
trading gains
T
Treasury non-interest income lower compared to favourable 3Q03 base
T
DEaR returned to more normal levels after temporary rise at end-2Q04
1 Jul 2003 to 30 Jun 2004 1 Oct 2003 to
30 Sep 2004
Average DEaR
DEaR as at 30 Sep 2004
(S$m)
26.1 6.9 4.6 (13.3) 24.3 Interest rate
FX Equity
Diversification effect Total
27.2 6.0 5.2 (13.3) 25.1
Revenues for most core activities rose
Change
Consumer Banking
Enterprise Banking
Investment Banking
Treasury & Markets Funding Portfolio
Central Operations a
Total
3Q 2004 9M
2004 90 362 156 190 115 200 1,113 Change 3Q 2003 Total T&M 1,050 458 501 456 3,144 205 679 406 273 9M 2003 395 184 176 102 90 140 1,087 192 (13) 0 317 325 (89) 52 Revenue by businesses (S$m)
33 1,165 115
28 549 91
(14) 541 40
(13) 642 (37)
(60) 512 56
12
Cost-income ratio stable at 45% as expenses
kept in line with business growth
1,476
491 482
503 482
458 459
442
31 38
40 46
41 47
42
45
46
45 43
44
2002 2003 9M 2004
1Q 2Q 3Q 4Q 1Q 2Q 3Q
Cost/Income (%)
b
(S$m)
1,851
2003 2004
1,841
b
46
a
Annualised cost / average assets (%) 1.17
1.22 1.17 1.16 1.17 1.15 1.21 1.20 1.12 1.18
(a) Excluding one-time gains of $96m in 2002
Sustained regional growth across businesses
T
One of our best quarterly earnings
T
Continued progress in regional operations
14
DBS Hong Kong’s net profit up 14%
% change 2Q 2004 3Q 2004 3Q 2003 % change 212 95 307 123 184 28 140 (4) (1) (3) 6 (9) (25) (6) 3 (16) (4) 10 (12) (59) 14 204 94 298 130 168 21 131 197 112 309 118 191 51 115 (S$m)
Net interest income
Non-interest income
Operating income
Operating expenses
Operating profit
Provisions
Net profit after taxation
9M earnings up 45%
9M 2004
9M 2003
% change (S$m)
Net interest income
Non-interest income
Operating income
Operating expenses
Operating profit
Provisions
Net profit after taxation
630
298
928
377
551
74
421
582
276
858
353
505
152
291
8
8
8
7
9
(52)
16
DBS HK’s ratios remain better than group average
3Q
2004
9M
2004
9M
2003
2Q
2004
3Q
2003
(%)
Net interest margin
2.28
2.45
2.34
2.40
2.36
Non-interest income/total income
32
31
36
32
32
Cost/income 44
40
38
41
41
ROE 13.8
15.4
14.3
15.4
11.4
ROA 1.39
1.52
1.31
1.52
1.12
Loans/deposits 81
83
75
81
75
Regional contributions growing faster than group
average
2003 2004
9M revenues
Region and rest of world a
Hong Kong b
Singapore c
Total
145 987 1,913 3,045
(a) Excluding DTDB in all periods
YoY change (%) Amount (S$m)
178 1,039 2,122 3,339
23 5 11 10
51 327 650 1,028
80 468 956 1,504
57 43 47 46 9M cash profit
Region and rest of world a
Hong Kong b
Singapore c
18
Sustained regional growth across businesses
T
One of our best quarterly earnings
T
Continued progress in regional operations
NPLs at lowest level since 1997
Doubtful Substandard Loss 2.6 3.0 4.6 5.2 6.1 5.7 11.8 5.9 5.9 5.2 5.7 7.6 13.0 0 2500 5000 75001998 1999 2000 2001 2002 2003 Mar Jun Sep Dec Mar Jun Sep 8,149
NPL rate (%)
20
NPLs fell 11% over 2Q04 as recoveries accelerated
2Q 2004
3Q 2003
3Q 2004
NPLs at start of period
2,182
4,163
3,359
New NPLs
114
218
99
Net recoveries of existing NPLs
(283)
(163)
(229)
Write-offs
(79)
(75)
(100)
DTDB deconsolidation
-
-
(947)
NPLs at end of period
1,934
4,143
2,182
Provision coverage of 91% highest since 1997
3,095
1,237 1,658 1,511 1,323 1,544
794 715
1,049
1,061
989 1,064 1,061
1,025 1,037 1,191
1,752 1,819
2,605 2,387
2,500 2,719
2,286
0 1000 2000 3000 4000 5000
1999 2000 2001 2002 2003 Sep
2003
Jun 2004
Sep 2004
GP SP 4,286
(S$m)
Coverage ratios (%)
22
Specific provision write-backs greater than charges
2Q 2004
3Q 2003
3Q 2004
Add charges for
New NPLs
46
84
39
Existing NPLs
28
79
47
74
163
86
Subtract charges for
Loan upgrading
3
2
14
Settlements 67
34
42
Recoveries
7
6
7
77
42
63
Total SP charges
(3)
121
24
Capital adequacy ratios maintained
12.2
10.5 9.8 9.7 10.5 10.7 10.4 11.6 11.8
5.2 4.6 4.7 4.5 4.7 4.6 4.5 4.1 4.0 3.6
10.5 10.3
5.2
15.4 15.6
14.5 15.2
15.1 15.2
14.2 14.5
15.1 15.5
17.4
0 4 8 12 16 20 24 28
2001 2002 2003 Mar Jun Sep Dec Mar Mar Jun Sep
Tier-1 CAR (%) Tier-2 CAR (%)
a a
2003 2004
a
Group capital (S$bn)
24
Sustained regional growth across businesses
T
One of our best quarterly earnings
T
Continued progress in regional operations
Sustained regional growth
across businesses
October 29, 2004
DBS Group Holdings
3Q 2004 Financial Results
Presentation to Media and Analysts
