Interest income 990,995 1,070, Interest expense (625,637) (695,406) -10.0

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1 INTERIM FINANCIAL INFORMATION DISCLOSURE STATEMENT The Directors of DBS Kwong On Bank, Limited (the Bank ) announce the unaudited consolidated interim results of the Bank and its subsidiaries (the Group ) for the six months ended 30 June 2000 are as follows: Unaudited consolidated profit and loss account For the six months ended 30 June June 1999 Change Interest income 990,995 1,070, Interest expense (625,637) (695,406) Net interest income 365, , Other operating income 91, , Operating income 456, , Operating expenses (247,913) (214,622) 15.5 Operating profit before provisions 208, , Charge for bad and doubtful debts (18,752) (203,304) Operating profit 189,764 59, Loss from disposal of fixed assets and long-term investments (220) (117) 88.0 Profit before taxation 189,544 59, Taxation (Note 1) (24,066) (3,851) Profit attributable to shareholders 165,478 56, Interim dividend Profit for the period retained 165,478 56, NOTES: 1. Hong Kong profits tax has been provided at the rate of 16.0% (1999: 16.0%) on the estimated assessable profit for the period. No deferred taxation has been provided as there are no material timing differences which would result in a liability payable or an asset receivable in the foreseeable future. 2. The Bank has adopted the Alternative Treatment of accounting for investment securities under SSAP24, which involves no restatement of 1999 earnings nor any effect in 2000 earnings. 3. Improvement in profit was mainly contributed by the strengthening of asset quality which required a lower level of provision. Operating income was slightly lower than that of the corresponding period of last year due to margin pressure and market competition while the Bank s expansion plan led to higher operating expenses. 1

2 Unaudited consolidated balance sheet Change Assets Cash and short-term funds 7,122,370 6,513, Placements with banks and other financial institutions maturing between one and twelve months 2,383,853 2,726, Trade bills 296, , Certificates of deposit held 429, , Advances and other accounts 17,597,203 17,280, Non-trading securities 7,810 7, Fixed assets 1,196,730 1,204, Total assets 29,034,156 28,512, Liabilities Deposit and balances of banks and other financial institutions 153,853 97, Current, fixed, savings and other deposits of customers 23,104,437 22,513, Certificates of deposit issued 600, , Other accounts and provisions 773, , Total liabilities 24,632,207 24,275, Capital resources Share capital 750, , Reserves (Note) 3,651,949 3,486, Shareholders funds 4,401,949 4,236, Total liabilities and capital resources 29,034,156 28,512, Note: Share premium 564, , Premises revaluation reserves 307, , General reserves and others 2,780,762 2,615, Reserves 3,651,949 3,486,

3 Unaudited consolidated supplementary financial information 1. Advances and other accounts Change Advances to customers 18,230,406 18,067, Accrued interest 102, , ,332,990 18,169, Provisions for bad and doubtful debts general (184,904) (181,000) 2.2 specific (672,466) (755,367) ,475,620 17,233, Other accounts 121,583 47, ,597,203 17,280, Trade bills Change Trade bills 309, , Specific provision for bad and doubtful debts (13,443) (13,443) , , Total advances (including trade bills) on which interest is being placed in suspense or on which interest accrual has ceased Change Gross advances 1,885,556 2,290, As a percentage to total advances 10.3% 12.7% Specific provisions (683,814) (711,090) -3.8 Suspended interest 51,915 34, There were no advances to banks and other financial institutions on which interest is being placed in suspense or on which interest accrual has ceased as at 30 June 2000 and 31 December

4 4. Gross advances to customers by industry sectors Loans for use in Hong Kong Change Industrial, commercial and financial Property development 81,096 81, Property investment 2,807,928 2,869, Financial concerns 209, , Stockbrokers 22,572 44, Wholesale and retail trade 896, , Manufacturing 994,041 1,083, Transport and transport equipment 455, , Others 1,097,088 1,228, Individuals Loans for the purchase of flats under the Home Ownership Scheme and Private Sector Participation Scheme 579, , Loans for the purchase of other residential properties 6,483,537 6,012, Others 968, , Trade finance 3,571,044 3,938, Loans for use outside Hong Kong 63,328 65, ,230,406 18,067, Gross amount of overdue advances % of advances % of advances to customers to customers Gross amount of advances which have been overdue for: six months or less but over three months 116, , one year or less but over six months 219, , over one year 785, , ,121, ,453, There were no advances to banks and other financial institutions which have been overdue for over three months as at 30 June 2000 and 31 December

5 6. Reconciliation of overdue advances to non-accrual advances Advances which are overdue for more than 1,121,537 1,453,557 three months Add: non-accrual advances which are overdue for three months or less 233, ,590 Add: non-accrual advances which are not yet overdue 592, ,438 Less: advances which are overdue for more than three months and on which interest is still being accrued (61,978) (90,004) Non-accrual advances 1,885,556 2,290, Rescheduled advances Gross amount of Gross amount of overdue advances overdue advances % of advances % of advances to customers to customers Rescheduled advances 199, , There were no rescheduled advances to banks and other financial institutions as at 30 June 2000 and 31 December

6 8. Off-balance sheet exposures (A) Contingent liabilities and commitments Direct credit substitutes 74,692 76,455 Transaction-related contingencies 78,486 58,782 Trade-related contingencies 843, ,249 Other commitment with an original maturity of Under 1 year or which are unconditionally cancelable 3,310,761 3,259,586 1 year and over 30, ,800 Others 69,944 4,408,288 4,318,872 (B) Derivatives Exchange rates contracts 1,696, ,206 (C) Contractual amounts, credit risk weighted amounts and replacement costs 30 June December 1999 Credit risk Replace- Credit risk Replace- Contract weighted ment Contract weighted ment amount amount cost amount amount cost Contingent liabilities and commitments 4,408, ,859 4,318, ,597 Derivatives: Exchange rate contracts 1,696,592 7, ,206 1, ,104, , ,575, , The contract amounts of these instruments indicate the volume of transactions outstanding as at the balance sheet date; they do not represent amounts at risk. The Group had not entered into any bilateral netting agreements during the year and accordingly the above amounts are shown on a gross basis. 6

7 The credit risk weighted amounts are the amounts which have been calculated in accordance with the Third Schedule of the Banking Ordinance and guidelines issued by the Hong Kong Monetary Authority. The amounts calculated are dependent upon the status of the counterparty and the maturity characteristics of each type of contract. Replacement cost is the cost of replacing all contracts which have a positive value when marked-to-market (should the counterparty default on its obligations) and is obtained by marking-to-market contracts with a positive value. Replacement cost is a close approximation of the credit risk for these contracts at the balance sheet date. 9. Capital, capital adequacy and liquidity information (A) Capital adequacy and liquidity ratios Capital adequacy ratio 26.3% 25.5% Adjusted capital adequacy ratio 26.1% 25.5% Six months ended Six months ended 30 June June 1999 Liquidity ratio 48.3% 45.9% The capital adequacy ratio represents the consolidated ratio of the Bank and its subsidiary, DBS Kwong On Finance Limited, as at 30 June 2000 computed in accordance with the Third Schedule of the Banking Ordinance. The adjusted capital adequacy ratio represents the capital adequacy ratio adjusted to take into account market risk at the balance sheet date computed in accordance with the Guideline Maintenance of Adequate Capital Against Market Risks issued by the Hong Kong Monetary Authority. The liquidity ratio is the simple average of each calendar month s average liquidity ratio for the period calculated for the Bank s Hong Kong offices in accordance with the Fourth Schedule of the Banking Ordinance. 7

8 9. Capital, capital adequacy and liquidity information (Continued) (B) Components of capital base after deductions Core capital: Paid up ordinary share capital 525, ,000 Share premium 564, ,152 Reserves 2,482,508 2,470,376 Profit and loss account 155,620 12,556 3,727,280 3,572, Supplementary capital: Reserves on revaluation of land and interests in land 372, ,424 General provisions for doubtful debts 184, ,000 Gross and eligible value of supplementary capital 557, , Total capital base before deductions 4,284,608 4,125,508 Deductions: Shareholdings in subsidiaries (27,600) (27,600) Total capital base after deductions 4,257,008 4,097, Statement of compliance In preparing the disclosure for the first half of 2000, the Bank has fully complied with the recommendations made by the Hong Kong Monetary Authority on 30 June 2000 for interim financial disclosure by authorized institutions incorporated in Hong Kong. 8

9 For immediate release 27 July 2000 DBS Kwong On Bank Releases 2000 Half-year Results In compliance with the guideline issued by the Hong Kong Monetary Authority (HKMA) on Financial Disclosure by Locally Incorporated Authorised Institutions, the Financial Information Disclosure Statement of DBS Kwong On Bank Limited (DKOB) for the first half-year results for 2000 is hereby attached. The key financial information of DKOB are included in The Development Bank of Singapore Limited s first half-year results for 2000, namely Profit & Loss Statement and Balance Sheet. Copies of DKOB s financial disclosure statement will be available for the public at all of its branches. A copy is also filed with the HKMA, which keeps this notice in its Public Registry. - End - For enquiries, please contact: Ms. Helen Kwan Senior Manager Corporate Communications DBS Kwong On Bank Limited Tel: or Mobile: HelenKwan@dbs.com 9