dbs group holdings 3q 2006 financial results · distributed to parties outside the presentation....

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Consistency and sustained growth

DBS Group Holdings 3Q 2006 financial resultsOctober 27, 2006

2

Quarterly net profit surpassed $500 million for three consecutive quarters

3Q 2006 net profit1% from 2Q 200632% from 3Q 2005

373

473419

384

518 549 552

200

300

400

500

600

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

(S$ million) (a)

500

(a) Net profit excludes one-off gains and goodwill charge

3

Nine Months 2006 net profit almost the same as full-year 2005; up 28% from a year ago

(S$ million) 9M 2006 9M 2005FY 2005 YoY % Growth

Net profit (a) 1,649 1,619 1,265 28%

Return on equity 9.7% 12.4% 10.0% 2.4%

Return on assets 0.93% 1.14% 0.94% 0.20%

(b)

(b)

(a) Net profit excludes one-off gains and goodwill charge (b) Growth rate refers to absolute change

4

Sustained growth: DBS customer loans grew $27 billion or 47% since December 2002

(S$ billion)Loan balance (a)

85.383.4

61.465.1 67.2

62.4

69.7 71.1

78.7 78.8

58.1

79.5 78.8

Dec02

Dec03

Mar04

Jun04

Sep04

Dec04

Mar05

Jun05

Sep05

Dec05

Mar06

Jun06

Sep06

+$27.2 billion or 47% from December 2002; at 10.8% CAGR

+2%

(a) Loan balance excludes DBS Thai Danu Bank’s loans (deconsolidated in June 2004)

5

Sustained growth: Net interest income supported by margins and continued customer loan growth

Net interest income rose seven consecutive quarters to $912 million, a new record

684 665 685677 712 746 800 850

665

897 912

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

(S$ million)Net interest income

Net interest margin at 2.17%; higher than 2005

6

293296262241242

986933825

755626

508423

274

0

1998 1999 2000 2001 2002 2003 2004 2005 3Q2005

4Q2005

1Q2006

2Q2006

3Q2006

Fee income: $293 million, 21% from a year ago

Quarterly fee income now more than fees earned for full-year 1998

quarter’s record level

(S$ million)

Sustained growth: Fee income maintained at previous

Fee income

Achieved seven consecutive

years of growth at 20% CAGR

7

Continued strong operating results reflects commitment to be disciplined, consistent in performance

Customer franchise delivered broad-based loan growth, record net interest income, and sustained fee income

Continued strong asset quality gives us latitude to support customers’ growth throughout the region

9


Strong operating trends sustained

Better performance in Hong Kong

Balance sheet remains strong

10

Operating profit up 34% on year as income trends sustained(S$m) 3Q

2006YoY%

QoQ%

2221

>100

(30)

332524

7

1634

>10032

2(1)

(33)

(20)

(11)(3)(1)

(2)

(2)(3)

(34)1

Net interest incomeFee income

Trading income

Other income

Non-interest incomeOperating income

Staff costs

Other expenses

Operating expensesOperating profit ProvisionsNet profit

912293

70

45

4081,320

317

267

58473641

552

Excluding one-time gains

11

9M operating profit up 26% on year

(S$m) 9M2006

YoY%

2414

60

(5)

192221

15

1826(9)28

Net interest incomeFee income

Trading income

Other income

Non-interest incomeOperating income

Staff costs

Other expenses

Operating expensesOperating profit ProvisionsNet profit

2,659851

283

151

1,2853,944

938

804

1,7422,202

1341,619


12

Key 3Q and 9M ratios improve on year

Net interest margin

Fee income/total income

Non-interest income/total income

Cost/income

ROE

Loans/deposits

NPL ratio

(%)


2.17

22

31

44

12.3

67

1.8

2.23

22

34

44

12.7

69

1.9

1.92

23

29

48

9.7

69

2.0

3Q 2006

2Q2006

3Q 2005

9M2006

9M2005

2.20

22

33

44

12.4

67

1.8

1.86

23

34

46

10.0

69

2.0

13

Interest income at quarterly record

(S$m)

2005

Net interest margin (%)

2,5072,691

2,9432,659

912897850800746712685

1.88 1.87 1.91

2.20 2.172.232.232.06

1.921.841.82

2003 2004 2005 9M2006

1Q 2Q 3Q 4Q 1Q 2Q 3Q2006

14

Loans up 8% on year

(S$m) DTDB loans

85,25483,410

78,81879,462

61,415

65,048 67,21669,659

71,055

78,71278,776

62,424

2,9152,915

Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep2004 20052003

2% 4%3%

4%2%

11%0% 1% (1%)

6%

2006

2%

15

855 751

282 377112 111 38 21 150 125

87104

127 57

12 10236 27 52

8 36 13293296262

241242274229

851986933825

3128

3433

33

34

32

4140

37

29

2003 2004 2005 9M2006

1Q 2Q 3Q 4Q 1Q 2Q 3Q

Fee income up 21% on year

Dividends and rentalsOther income

Fee income

Non-interest income / total income (%)

1,767 1,788

1,395

(S$m)

353421

307 314420

2005

457

2006

1,285

408


16

Wealth management sales slightly higher on quarter

2,905 2,847 2,877

575 1,262 962 653752 653868253

5244 531214141

358247429

6801,245 5146036831,2491,157

1,797

4,334

5,908

2004 2005 9M 2006 1Q 2Q 3Q 4Q 1Q 2Q 3Q

Sales (all products)S’pore 3,874 3,560 2,535 963 794 1,128 675 1,031 786 718HK 5,368 3,868 2,497 1,103 1,069 914 782 886 743 868Fees (unit trusts and bancassurance only)S’pore + HK 119 140 133 35 38 33 34 42 38 53

Structured deposits

Unit trusts

Bancassurance9,242

7,428

(S$m)

1,864 2,0421,457

1,9172,066

5,032

1,529 1,586

2005 2006

17

Cost-income ratio stable at 44%

1,8011,956 2,026

1,742

486 484 505 551 564 594 584

444444444948

434747

4442

2003 2004 2005 9M206

1Q 2Q 3Q 4Q 1Q 2Q 3Q

Cost/Income (%)(S$m)

2005 2006

12,670Headcount 12,144 11,454 12,728 11,649 12,090 12,562 12,72812,670 12,673 12,453

317Staff costs (S$m) 876 993 1,052 265 253 255 279938 300 321


18





19

Hong Kong’s operating profit up 37% on year as recent performance sustained(S$m)

2

9

3

4

3

8

3

18

23

19

2

37

>100

25

3Q2006

YoY%

QoQ%

291

95

386

171

215

27

156

Net interest income

Non-interest income

Operating income

Operating expenses

Operating profit

Provisions

Net profit after tax

Figures for Hong Kong geographical basis and converted to S$ using monthly closing rates. Based on Singapore GAAP. Excluding one-time gains

20

Hong Kong’s 9M operating profit up 39%

(S$m)

27

7

22

5

39

>100

27

9M2006

YoY%

855

272

1,127

497

630

71

463

Net interest income

Non-interest income

Operating income

Operating expenses

Operating profit

Provisions

Net profit after tax

Figures for Hong Kong geographical basis and converted to S$ using monthly closing rates. Based on Singapore GAAP. Excluding one-time gains

21

Hong Kong’s key ratios improve on year

(%)

Net interest margin

Non-interest income/total income

Cost/income

ROA

Loans/deposits

2.10

27

51

1.03

77

2.56

24

44

1.26

75

2.26

24

52

1.02

77

2.56

23

44

1.23

76

2.49

25

44

1.22

75

3Q 2006

2Q2006

3Q 2005

9M2006

9M2005


22





23

NPL rate improves to 1.8%

1.81.92.12.12.02.22.41.82.12.5

5.2

2003 2004 2005 Sep2006

Mar Jun Sep Dec Mar Jun Sep

LossDoubtfulSubstandard

NPL ratio (%)

22%

5%

73%

3,780

20%9%

71%

1,919

19%9%

72%1,928

18%11%

71%1,896

18%14%

68%1,807

2005

20%15%

65%1,865

20%15%

65%

1,865

(S$m)

22%14%

64%1,750

22%14%

64% 1,646

2006

21%14%

65% 1,646

21%14%

65% 1,646

24

Non-performing assets unchanged on quarter

(S$m) 3Q 2005

2Q 2006

3Q 2006

NPAs at start of period

New NPAs

Net recoveries of existing NPAs

Write-offs

NPAs at end of period

1,646

160

(99)

(61)

1,646

1, 750

132

(163)

(73)

1,646

1,896

180

(225)

(44)

1,807

25

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

Specific provision charges for loans are little changed(S$m)

3Q 2006

2Q 2006

Add charges for

New NPLs

Existing NPLs

43

22

65

34

25

59

3Q 2005

40

49

89

Subtract charges for

Upgrading

Settlements

Recoveries

Total SP charges

2

32

4

38

27

2

19

5

26

33

1

39

19

58

30

26

2006

1,323689 769 630 702 716 726 769 704 651 630

1,064

1,017 1,031 1,104 1,039 1,068 1,032 1,031 1,045 1,074 1,104

1,734 1,734

2,387

1,706 1,800 1,741 1,784 1,758 1,800 1,749 1,725

2003 2004 2005 Sep Mar Jun Sep Dec Mar Jun Sep

Coverage ratios (%)

GPSP

(S$m)

Provision coverage at 105%

2005 2006

SP+GP / Unsec NPAs 124 187 198 237 202 201 207 198 218 234 237

SP+GP / NPAs 63 89 97 105 90 94 97 97 100 105 105

27

CAR rises on quarter from new tier-2 issue

(%)

2006

10.5 11.3 10.6 10.1 10.9 10.6 10.4 10.6 10.2 10.1 10.1

4.6 4.5 4.2 4.5 4.4 4.1 4.3 4.2 3.9 4.3 4.5

14.6 14.615.115.8

14.8 15.3 14.7 14.7 14.8 14.1 14.4

2003 2004 2005 Sep Mar Jun Sep Dec Mar Jun Sep

Tier-1Tier-2

2005 2006(S$bn)

Tier-1 capital 9.6 11.8 13.1 14.2 11.8 12.2 12.6 13.1 13.5 13.8 14.2

RWA 92.1 104.0 123.8 140.3 108.8 114.8 121.2 123.8 131.8 137.4 140.3

28

9M dividends up 24% to 51 cents per share

(S¢)

14 14 18

16 1622

1717

11 17

1517

15

2002 2003 2004 2005 2006

30 30

40

InterimFinal

Quarterly

5851

29





dbs group holdings 3q 2006 financial results · distributed to parties outside the presentation....

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