Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. DBS Bank accepts no liability whatsoever with respect to the use of this document or its contents.
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
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. DBS Bank accepts no liability whatsoever with respect to the use of this document or its contents.
Consistency and sustained growth
DBS Group Holdings 3Q 2006 financial resultsOctober 27, 2006
9
Consistency and sustained growth
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
Excluding one-time gains
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
(%)
Excluding one-time gains
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$m)
353421
307 314420
2005
457
2006
1,285
408
Excluding one-time gains
16
Wealth management sales slightly higher on quarter
2,905 2,847 2,877
575 1,262 962 653752 653868253
5244 531214141
358247429
6801,245 5146036831,2491,157
1,797
4,334
5,908
2004 2005 9M 2006 1Q 2Q 3Q 4Q 1Q 2Q 3Q
Sales (all products)S’pore 3,874 3,560 2,535 963 794 1,128 675 1,031 786 718HK 5,368 3,868 2,497 1,103 1,069 914 782 886 743 868Fees (unit trusts and bancassurance only)S’pore + HK 119 140 133 35 38 33 34 42 38 53
Structured deposits
Unit trusts
Bancassurance9,242
7,428
(S$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
Excluding one-time gains
18
Consistency and sustained growth
Strong operating trends sustained
Better performance in Hong Kong
Balance sheet remains strong
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
Excluding one-time gains
22
Consistency and sustained growth
Strong operating trends sustained
Better performance in Hong Kong
Balance sheet remains strong
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
Consistency and sustained growth
Strong operating trends sustained
Better performance in Hong Kong
Balance sheet remains strong
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. DBS Bank accepts no liability whatsoever with respect to the use of this document or its contents.
Consistency and sustained growth
DBS Group Holdings 3Q 2006 financial resultsOctober 27, 2006
Top Related