YE2001analyst-print of the financial result

this summarize business strategy

1. DBS Group Holdings
FY2001 Financial Results
Presentation to Media and Analysts

2001 - A Year of Transformation
February 18, 2002
Disclaimer: The material that follows is a presentation of general background information about the Bank’s activities current at the date of the presentation. It is information
given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account
the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice when deciding if an
investment is appropriate. DBS Bank accepts no liability whatsoever with respect to the use of this document or its contents.

2. 2
Resilient operating profit
Building three core businesses
Improving the geographical balance
Strong asset quality and capitalisation
A Year of Transformation
Implementing the strategy

3. 3
Highlights of 2001 progress
`Total revenue $3,545m (2000 : $2,931m) 21%
Non-interest income $1,288m (2000 : $892m) 45%
Net interest income $2,257m (2000 : $2,039m) 11%
Normalized expenses
(a)
$1,445m (2000 : $1,246m) 16%
Operating profit
(b)
$1,804m (2000 : $1,685m) 7%
(a) Exclude acquisitions
(b) Exclude goodwill amortisation
Fee income $639m (2000 : $509m) 26%

4. 4
Net interest margin 1.87% (2000 : 2.02% )
NPLs 5.7% (2000 : 6.2%)
Most ratios resilient under challenging economic
conditions
Cost-to-income
(a)
49.1% (2000 : 42.5%)
Non-interest income /
operating income 36.3% (2000 : 30.4%)
Cash ROA 0.9% (2000 : 1.3%)
Cash ROE 10.1% (2000 : 12.9%)
Loan-to-deposit 63.9% (2000 : 64.5%)
Cash EPS 89 cents (2000 : 113 cents)
(a) Exclude goodwill amortisation

5. 5
(S$ million)
Growth in operating profit offset by provisions
Net interest income 2,039 2,257 10.7
Fees and commissions 509 639 25.7
Non-interest income 892 1,288 44.5
Total revenue 2,931 3,545 20.9
Staff costs 613 866 41.1
Other operating expenses 633 876 38.5
Operating expenses 1,246 1,742 39.8
Operating profit 1,685 1,804 7.0
Goodwill amortisation - 131 NM
Provisions 54 379 606.2
Net profit attributable to members 1,389 999 (28.1)
Cash net profit attributable to members 1,389 1,131 (18.6)
2000 2001 % Change

6. 6
Other operating expenses 158 291 84.0 226 28.9
Operating expenses 311 523 67.8 470 11.2
Operating profit 408 450 10.3 574 (21.6)
Goodwill amortisation - 68 NM 64 6.7
Provisions 16 87 438.2 246 (64.6)
Net profit attributable
to members 347 169 (51.4) 201 (16.1)
Cash net profit attributable
to members 347 237 (31.9) 265 (10.6)
Fees and commissions 117 214 83.2 174 23.0
Positive trends in interest income and fee
income
(S$ million)
DBS
4Q00
DBS
4Q01
%
Change
DBS
3Q01
%
Change
Net interest income 480 707 47.3 588 20.2
Non-interest income 239 266 11.1 456 (41.7)
Total revenue 719 973 35.2 1,044 (6.8)
Staff costs 153 232 51.1 244 (5.2)

7. 7
DBS half on half operating profit up 36.6%
Net interest income
Fees and commissions
Non-interest income
Total revenue
Staff costs
Other operating expenses
Operating expenses
Operating profit
Goodwill amortisation
Provisions
Net profit attributable to members
Cash net profit attributable to members
(S$ million)
962
251
567
1,529
389
360
749
780
-
47
630
630
1H01 2H01
(%)
Change
1,295
388
721
2,017
476
476
952
1,065
131
332
370
501
34.7
54.9
27.2
31.9
22.1
32.4
27.1
36.6
NM
606.0
(41.3)
(20.4)

8. 8
(S$ million)
962993
1,0461,046
989
1,295
2.00%
2.04%2.07%
1.97%
1.78%
1.94%
1H992H991H002H001H012H01
Net interest income
Net interest margin
(gross basis)
Interest margins stabilise in second half
2,039
2,257
20002001
2.02%
1.87%

9. 9
Strong fee income growth
Trade finance
Deposit-related
Credit card
Loan-related
Investment banking
Stockbroking
Fund management
Others
Total
Fee-to-income ratio (%)
(S$ million)
2000 2001
%
Change
75
60
33
51
98
77
62
52
509
17.3
110
94
82
81
78
73
72
50
639
18.0
45.8
55.0
147.0
59.0
(20.0)
(5.9)
16.3
(3.4)
25.7

10. 10
Expense growth on target
DBSH (excluding DHB and DBSV)
(a)
Staff costs
Occupancy expenses
Technology-related expenses
Professional and consultancy fees
Others
Total (excluding DHB and DBSV)
DHB
DBSV
Restructuring costs
Total
Cost-to-income ratio (%)
(S$ million)
2000 2001
%
Change
613
147
132
73
280
1,246
-
-
-
1,246
42.5
734
172
180
49
311
1,445
218
38
40
1,742
49.1
19.7
16.3
36.0
(33.1)
11.0
16.0
NM
NM
NM
39.8
(a) Dao Heng Bank (“DHB”), DBS Vickers (“DBSV”)

11. 11
16
345
93
749
33
389
87
696
0 300 600 900
Managing our costs and investments
IT-related
Expenses
Staff Costs
Professional &
Consulting
Total Operating
Expenses
(excl. DHB & DBSV)
7%
7%
53%
11%
1st Half 2001
2nd Half 2001
(S$ million)

12. 12
A Year of Transformation
Implementing the strategy
Resilient operating profit
Building three core businesses
Improving the geographical balance
Strong asset quality and capitalisation

13. 13
Building three core businesses
Investment
Banking
883
Consumer
Banking
1,528
Treasury
372
Central
Operations
148
Operating Revenue 2000
(S$ million)
Investment
Banking
852
Consumer
Banking
1,983
Treasury
561
Central
Operations
149
Operating Revenue 2001
Total Operating Revenue
S$2,931 million
Total Operating Revenue
S$3,545 million
52%
30%
13%
5%
56%
24%
16%
4%

14. 14
Consumer Banking highlight -
Credit cards
Singapore
Cards in issue (‘000)
Receivables outstanding
(S$ million)
Market position
Hong Kong
Cards in issue (‘000)
Receivables outstanding
(S$ million)
Market position
359
326
#3
2000 2001
%
Change
850
1,300
#3
450
424
#2
25
30
0
0
-
NM
NM

15. 15
Consumer Banking highlight -
Wealth management
Sales Volume
314
558
322
611
764
222
180
189
174
15
4
0
200
400
600
800
1000
1200
2H99 1H00 2H00
(a) Treasury investment products include Growth and equity-linked notes
(b) Unit trusts include Horizon, Ei8ht, Up! and other DBSAM programmes
1H01
314
573
544
795
2H01
1,127
(S$ million)
Unit trusts
(b)
Insurance / asset plan
Treasury investment
products
(a)

16. 16
Bancassurance alliance with CGNU extended
to Hong Kong
10 year Bancassurance alliance with CGNU
for life and general insurance
Sale of DBS HK’s insurance subsidiaries, DBS
Kwong On Insurance and Dao Heng
Assurance, to CGNU
Total proceeds of S$112 million of which:
–S$71 million return of book value of
subsidiaries
–S$30 million book gain on subsidiaries
–S$11 million upfront advanced payment for
bancassurance
Accelerates revenue growth in DBS HK’s wealth
management business
Expands DBS sales channels in Hong Kong
with the establishment of a specialist sales
force dedicated to insurance and wealth
management products
Provides DBS with a dedicated bancassurance
product provider without equity investment
DBS retains ownership of customers and
concentrates on distribution, leaving product
manufacturing to CGNU
Allows DBS to exit the Hong Kong insurance
underwriting business
Transaction Highlights Strategic Rationale

17. 17
Extending Investment Banking capabilities
Equity capital markets 8.9 -83%
Debt capital markets 32.2 36%
Syndicated loans 13.3 75%
Mergers & acquisitions 7.6 7%
Fee income
2001
(S$ million)
% Change
from 2000

18. 18
Treasury highlight - FX & securities activities
(S$ million)
2000 2001
%
Change
Net gains on
- Foreign exchange
- Securities and derivatives
- Singapore government securities
119
23
33
230
94
80
93.1
308.7
142.5

19. 19
A Year of Transformation
Implementing the strategy
Resilient operating profit
Building three core businesses
Improving the geographical balance
Strong asset quality and capitalisation

20. 20
Improving the geographical balance
Singapore
80.8%
Rest of
the World
4.5%
Hong Kong
32.5%
Total Assets
S$151.3 billion
Assets 2001
Regional 5
Countries
3.4%
Singapore
59.6%
Rest of
the World
5.6%
Hong Kong
9.2%
Assets 2000
Total Assets
S$111.2 billion
Regional 5
Countries
4.4%

21. 21
Dao Heng’s top line improving
Net interest income 150 171 14.0
Fees and commissions 51 57 10.8
Non-interest income 75 64 (14.6)
Total revenue 225 235 4.5
Staff costs 56 57 2.0
Other operating expenses
(a)
50 74 46.6
Operating expenses 106 131 22.9
Operating profit 118 104 (12.2)
Provisions 24 (2) NM
Net profit after tax 84 114 36.4
(S$ million) DHB
3Q01
DHB
4Q01
%
Change
(a) Restructuring cost of S$19 million included

22. 22
DBS Kwong On Bank’s operating profit
growing
(S$ million) DKOB
2000
DKOB
2001
%
Change
(a) Restructuring cost of S$4 million included
Net interest income 184 223 21.2
Fees and commissions 19 32 68.5
Non-interest income 43 49 13.9
Total revenue 226 271 19.8
Staff costs 79 96 20.3
Other operating expenses
(a)
49 73 50.1
Operating expenses 128 169 31.6
Operating profit 98 103 4.4
Provisions 0.2 67 NM
Net profit after tax 84 28 (67.4)

23. 23
DBS Thai Danu turns S$7.1m net profit
(S$ million) DTDB
2000
%
Change
DTDB
2001
Net interest income 76 90 18.6
Fees and commissions 13 15 21.8
Other income 16 16 (2.5)
Non-interest income 29 31 8.0
Total revenue 105 121 15.8
Operating expenses
(a)
89 86 (2.6)
Operating profit 16 35 118.2
Non-operating expenses 11 9 (21.5)
Provisions 23 18.9 (18.2)
Net profit after tax (529) 7.1 NM
(a) Standalone statement for DBS Thai Danu

24. 24
A Year of Transformation
Implementing the strategy
Resilient operating profit
Building three core businesses
Improving the geographical balance
Strong asset quality and capitalisation

25. 25
2,705 2,824
2,425 2,452
1,735 1,610 1,528
642
772
1,239
1,408
1,365
1,144
624
1,735
2,874
3,018 3,207
3,000
1,238
1,143
1,004
1,249
649
605
770
1,0701,152
871
267
151
631
366
667
744
815
2.7%
11.8%
13.1%
13.0%
8.5%
12.7%
7.6%
6.2%
Asset quality improving with further decline
in NPLs to 5.7%
Dao Heng Bank
DBS Thai Danu Bank
Regional 5 Countries
Others
Singapore
NBk NPLs / NBk Loans (%)
5.7%
1,112
3,907
7,086
8,1218,149
7,666
4,411
4,834
4,512
Dec 97Jun 98Dec 98Jun 99Dec 99Jun 00Dec 00Jun 01 Dec 01
(S$ million)
97

26. 26
Provision coverage improved from 52% to 60%
801
1,115
1,294
1,191
1,174
2,558
2,804
2,032
3,095
1,237
179
948
1,463 1,658
1,049
1,180
946
1,061
General Provisions (GP)
Specific Provisions (SP)
SP+GP / NPLs (SEC) (%)
SP+GP / Unsec NPLs (%)
SP+GP / NPLs (%)
980
1,894
3,147
3,852
4,286
3,978
2,286
2,643
2,719
Dec 97Jun 98Dec 98Jun 99Dec 99Jun 00Dec 00 Jun 01Dec 01
146.5%
164.6%
119.6%
102.7%
110.6%
118.4%
114.8%
129.9%
54.7%51.8%51.9%52.6%
47.4%44.4%
48.5%
88.1%
59.9%
55.3%
63.0%60.8%61.4%
142.5%
64.1%
60.2%
(S$ million)
Post Dao Heng
consolidation

27. 27
906
(20.1%)
2,144
(28.0%)
844
(17.5%)
546
(12.4%)
2,576
(31.6%)
358
(8.1%)
621
(7.6%) 579
(7.6%)
520
(11.5%)
435
(9.0%)
3,508
(79.5%)
4,943
(64.5%)
4,952
(60.8%)
3,086
(68.4%)
3,554
(73.5%)
13.0%
12.7%
7.6%
6.2%
5.7%
-800
200
1200
2200
3200
4200
5200
6200
7200
8200
Dec 99 Jun 00 Dec 00 Jun 01 Dec 01
NPLs down but migrating to doubtful and loss
categories
Loss
Doubtful
(S$ million) Substandard
8,149
7,666
4,411
4,834
4,512
NPLs / Loans (%)
Post Dao Heng
consolidation

28. 28
Provision charge up but disproportionately
to loan growth
Provisions / RWA (%)
379
54
1,063
996
496
85
0.44%
0.08%
1.59%
1.53%
0
400
800
1200
1996 1997 1998 1999 2000 2001
(
S
$

m
i
l
l
i
o
n
)
NPLs (%)
Provisions (S$ million)
5.7%
7.6%
13.0%
11.8%
B
a
s
i
s

P
o
i
n
t

C
h
a
n
g
e

P
e
r

Y
e
a
r

(
%
)
8
10
12
14
2
1
~~

29. 29
Tier I
8.5
Tier I
12.2
Tier I
14.4
- 0.4
Tier II
5.6
Tier II
5.2
Tier II
4.5
1.2
1.7
1.3
1.8
2.6
-2.1
-7.5
0
5
10
15
20
25
30
35
Efficient capital management
DBS Group Holdings Consolidated Capital Adequacy Ratio
(%)
Dec
2000
Hybrid
Tier 1
Preference
Shares
Tier 2
Sub-debt
2001
Net
Income
Adjustments
for
Dao Heng/
Other
Dec
2001
Equity
Issue
March May MayNov
18.9
17.4
14.1
Dec 2001
Proforma for
Dao Heng
2nd tranche
Dividends
RWA
Expansion

30. 30
Maintaining dividend rate for shareholders
9 9 9
14 14
9 9
16
16 16
15
32%
31%
22%
128%
23%
0
10
20
30
40
50
1997 1998 1999 2000 2001
0
70
140
Interim dividends Final dividends
Special dividends Payout (%)
(Cents) (%)

31. 31
A Year of Transformation
Implementing the strategy
Resilient operating profit
Building three core businesses
Improving the geographical balance
Strong asset quality and capitalisation

32. 2001 - A Year of Transformation
February 18, 2002
DBS Group Holdings
FY2001 Financial Results
Presentation to Media and Analysts