DBS Group HoldingsFY2001 Financial Results

Presentation to Media and Analysts

2001 - A Year of TransformationFebruary 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

Resilient operating profit

Building three core businesses

Improving the geographical balance

Strong asset quality and capitalisation

A Year of Transformation

Implementing the strategy

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

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

(S$ million)(S$ million)

Growth in operating profit offset by provisions

Net interest income 2,039 2,257 10.7

Fees and commissions 509 639 25.7Non-interest income 892 1,288 44.5

Total revenue 2,931 3,545 20.9

Staff costs 613 866 41.1Other operating expenses 633 876 38.5Operating expenses 1,246 1,742 39.8

Operating profit 1,685 1,804 7.0

Goodwill amortisation - 131 NMProvisions 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)

Net interest income 2,039 2,257 10.7

Fees and commissions 509 639 25.7Non-interest income 892 1,288 44.5

Total revenue 2,931 3,545 20.9

Staff costs 613 866 41.1Other operating expenses 633 876 38.5Operating expenses 1,246 1,742 39.8

Operating profit 1,685 1,804 7.0

Goodwill amortisation - 131 NMProvisions 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

Other operating expenses 158 291 84.0 226 28.9Operating expenses 311 523 67.8 470 11.2

Operating profit 408 450 10.3 574 (21.6)

Goodwill amortisation - 68 NM 64 6.7Provisions 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)(S$ million)

DBS4Q00

DBS4Q01

% Change

DBS3Q01

% 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

DBS half on half operating profit up 36.6%

Net interest income

Fees and commissionsNon-interest income

Total revenue

Staff costsOther operating expensesOperating expenses

Operating profit

Goodwill amortisation

Provisions

Net profit attributable to membersCash net profit attributable to members

(S$ million)(S$ million)

962

251567

1,529

389360749

780

-

47

630630

1H01 2H01 (%)Change

1,295

388721

2,017

476476952

1,065

131

332

370501

34.7

54.927.2

31.9

22.132.427.1

36.6

NM

606.0

(41.3)(20.4)

8

(S$ million)

9629931,0461,046989

1,295

2.00% 2.04% 2.07% 1.97%1.78%

1.94%

1H99 2H99 1H00 2H00 1H01 2H01

Net interest incomeNet interest margin (gross basis)

Interest margins stabilise in second half

2,039

2,257

2000 2001

2.02%

1.87%

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)(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

Expense growth on target

DBSH (excluding DHB and DBSV) (a)

Staff costsOccupancy expensesTechnology-related expensesProfessional and consultancy feesOthersTotal (excluding DHB and DBSV)

DHBDBSVRestructuring costsTotal

Cost-to-income ratio (%)

(S$ million)(S$ million)2000 2001

% Change

61314713273

2801,246

---

1,246

42.5

73417218049

3111,445

2183840

1,742

49.1

19.716.336.0

(33.1)11.016.0

NMNMNM

39.8

(a) Dao Heng Bank (“DHB”), DBS Vickers (“DBSV”)(a) Dao Heng Bank (“DHB”), DBS Vickers (“DBSV”)

11

16

345

93

749

33

389

87

696

0 300 600 900

Managing our costs and investments

IT-relatedExpenses

Staff Costs

Professional &Consulting

Total Operating Expenses

(excl. DHB & DBSV)

7%

7%

53%

11%

1st Half 2001

2nd Half 2001

(S$ million)(S$ million)

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

Building three core businesses

Investment Banking

883

Consumer Banking1,528

Treasury 372

Central Operations

148

Operating Revenue 2000

(S$ million)(S$ million)

Investment Banking

852

Consumer Banking1,983

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

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

Consumer Banking highlight - Wealth management

Sales Volume

314

558

322

611764

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

573544

795

2H01

1,127

(S$ million)

Unit trusts (b)

Insurance / asset plan

Treasury investment products (a)

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

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%

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

Treasury highlight - FX & securities activities(S$ million)(S$ million)

2000 2001%

Change

Net gains on

- Foreign exchange

- Securities and derivatives

- Singapore government securities

Net gains on

- Foreign exchange

- Securities and derivatives

- Singapore government securities

119

23

33

119

23

33

230

94

80

230

94

80

93.1

308.7

142.5

93.1

308.7

142.5

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

Improving the geographical balance

Singapore 80.8%

Rest of the World

4.5%

Hong Kong32.5%

Total Assets S$151.3 billion

Assets 2001

Regional 5 Countries

3.4%

Singapore 59.6%

Rest of the World

5.6%

Hong Kong9.2%

Assets 2000

Total Assets S$111.2 billion

Regional 5 Countries

4.4%

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 2.0Other 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

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 2.0Other 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)(S$ million) DHB3Q01

DHB4Q01

% Change

(a) Restructuring cost of S$19 million included

22

DBS Kwong On Bank’s operating profit growing(S$ million)(S$ million) DKOB

2000DKOB2001

% Change

(a) Restructuring cost of S$4 million included

Net interest income 184 223 21.2

Fees and commissions 19 32 68.5Non-interest income 43 49 13.9

Total revenue 226 271 19.8

Staff costs 79 96 20.3Other operating expenses (a) 49 73 50.1Operating expenses 128 169 31.6

Operating profit 98 103 4.4

Provisions 0.2 67 NM

Net profit after tax 84 28 (67.4)

Net interest income 184 223 21.2

Fees and commissions 19 32 68.5Non-interest income 43 49 13.9

Total revenue 226 271 19.8

Staff costs 79 96 20.3Other operating expenses (a) 49 73 50.1Operating 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

DBS Thai Danu turns S$7.1m net profit(S$ million)(S$ million) DTDB

2000%

ChangeDTDB 2001

Net interest income 76 90 18.6

Fees and commissions 13 15 21.8Other 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

Net interest income 76 90 18.6

Fees and commissions 13 15 21.8Other 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

A Year of Transformation

Implementing the strategy

Resilient operating profit

Building three core businesses

Improving the geographical balance

Strong asset quality and capitalisation

25

2,705 2,8242,425 2,452

1,735 1,610 1,528

642772

1,239

1,408 1,365 1,144

624

1,735

2,874

3,018 3,2073,000

1,2381,143 1,004

1,249649

605770

1,0701,152871

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 BankDBS Thai Danu BankRegional 5 CountriesOthersSingaporeNBk NPLs / NBk Loans (%)

5.7%

1,112

3,907

7,086

8,121 8,1497,666

4,4114,834

4,512

Dec 97 Jun 98 Dec 98 Jun 99 Dec 99 Jun 00 Dec 00 Jun 01 Dec 01

(S$ million)

97

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 97 Jun 98 Dec 98 Jun 99 Dec 99 Jun 00 Dec 00 Jun 01 Dec 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

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

8,1497,666

4,4114,834

4,512

NPLs / Loans (%)

Post Dao Heng consolidation

28

Provision charge up but disproportionately to loan growth

Provisions / RWA (%)

379

54

1,063996

496

850.44%

0.08%

1.59%1.53%

0

400

800

1200

1996 1997 1998 1999 2000 2001

(S$

mill

ion

)(S

$ m

illio

n)

NPLs (%)

Provisions (S$ million)

5.7%

7.6%

13.0%11.8%

Basis P

oin

t Ch

ang

e Per Y

ear (%)

8

10

12

14

2

1

~~

29

Tier I8.5

Tier I12.2

Tier I14.4

- 0.4

Tier II5.6

Tier II5.2

Tier II4.5

1.2

1.71.3

1.82.6

-2.1

-7.5

0

5

10

15

20

25

30

35Efficient capital management

DBS Group Holdings Consolidated Capital Adequacy Ratio(%)(%)

Dec2000 Dec

2000

HybridTier 1

HybridTier 1

PreferenceShares

PreferenceShares

Tier 2Sub-debt

Tier 2Sub-debt

2001Net

Income

2001Net

Income

Adjustmentsfor

Dao Heng/Other

Adjustmentsfor

Dao Heng/Other

Dec2001Dec2001

Equity Issue

Equity Issue

March March MayMay MayMay NovNov

18.917.4

14.1

Dec 2001Proforma for

Dao Heng2nd tranche

Dec 2001Proforma for

Dao Heng2nd tranche

DividendsDividends

RWAExpansion

RWAExpansion

30

Maintaining dividend rate for shareholders

9 9 914 14

9 916

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

A Year of Transformation

Implementing the strategy

Resilient operating profit

Building three core businesses

Improving the geographical balance

Strong asset quality and capitalisation

2001 - A Year of TransformationFebruary 18, 2002

DBS Group HoldingsFY2001 Financial Results

Presentation to Media and Analysts