Earnings resilience despite market volatility DBS Group Holdings 1Q 2008 financial results May 7, 2008

Transcription

1 Earnings resilience despite market volatility DBS Group Holdings financial results May 7, 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.

2 Earnings resilience despite market volatility Key operating trends intact Lower Hong Kong margins offset by stronger non-interest income Balance sheet remains strong 2

3 Net profit up 8% on quarter, down 2% on year (S$m) YoY % QoQ % Net interest income 1,057 9 (0) Fee income (7) Trading income (161) nm nm Other income 314 >100 >100 Non-interest income 506 (11) 7 Income 1, Staff expenses 352 (2) 9 Other expenses (6) Expenses 656 (0) 1 Profit before allowances Allowances for credit & other losses (23) Net profit 603 (2) 8 Excluding one-time gains and impairment charges 3

4 Key ratios stable on quarter (%) 4Q Net interest margin Fee income/total income Non-interest income/total income Cost/income ROE Loans/deposits NPL ratio Excluding one-time gains and impairment charges 4

5 Net interest income maintained at previous quarter s level despite stronger headwinds (S$m) Net interest margin (%) 3,591 4,108 2, ,027 1,048 1,059 1, Q 3Q 4Q 5

6 Loans up 5% on quarter, 21% on year (S$m) 85,254 83,410 2% 6% 79,462 71,055 (1%) 114,227 5% 108,433 4% 104,714 6% 98,957 5% 94,294 9% 86,630 2% Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar

7 Fee income down 7% on quarter as capital market revenues fall (S$m) Fee income 1,753 2,055 Other income Non-interest income / total income (%) 1, ,155 1, Q 3Q 4Q Excluding one-time gains 7

8 Wealth management fees decline on lower unit trust sales (S$m) Structured deposits 7,428 4,334 6,912 2,492 7,768 1, Bancassurance Unit trusts ,847 3,808 5,735 1, ,244 2, ,816 1,829 1, ,329 1,346 1, Q 3Q 4Q Sales (all products) S pore HK 3,560 3,868 3,477 3,435 3,924 3,844 Fees (unit trusts and bancassurance only) S pore + HK ,116 1,

9 Cost-income ratio maintained at 42% (S$m) Cost/Income (%) 2,618 2, , Q 3Q 4Q Headcount 12,728 12,907 14,523 13,177 13,364 13,842 14,523 14,551 Staff costs (S$m) 1,052 1,244 1, Cost-income ratio excluding one-time gains 9

10 Earnings resilience despite market volatility Key operating trends intact Lower Hong Kong margins offset by stronger non-interest income Balance sheet remains strong 10

11 Hong Kong s net profit up 13% on quarter and 1% on year in Singapore-dollar terms (S$m) YoY % QoQ % Net interest income 225 (17) (10) Non-interest income Income 402 (1) (1) Expenses (8) Profit before allowances 229 (3) 5 Allowances for credit & other losses 19 (14) (30) Net profit Figures for Hong Kong geographical basis and converted to S$ using monthly closing rates. Based on Singapore GAAP. Excluding one-time gains 11

12 Lower Hong Kong margins offset by higher noninterest income contributions (%) 4Q Net interest margin Non-interest / total income Cost/income ratio ROA Loans/deposit Excluding one-time gains 12

13 Earnings resilience despite market volatility Key operating trends intact Lower Hong Kong margins offset by stronger non-interest income Balance sheet remains strong 13

14 NPL rate improves to 1.0%, allowance coverage rises to 138% (S$m) Substandard Doubtful Loss 2.1 1, NPL ratio (%) ,533 1,442 1,460 1,494 1,426 1,442 1,464 65% 61% 59% 61% 61% 62% 59% 58% 15% 20% 16% 23% 23% 18% 15% 24% 18% 21% 19% 19% 23% 18% 25% 17% Mar Jun Sep Dec Mar Cumulative general and specific allowances as % of: NPAs Unsecured NPAs

15 Non-performing assets up slightly (S$m) 4Q NPAs at start of period 1,442 1,426 1,533 New NPAs Net recoveries of existing NPAs (146) (162) (125) Write-offs (27) (92) (38) NPAs at end of period 1,464 1,442 1,460 15

16 Specific allowances for loans remain low (S$m) 4Q Add charges for New NPLs Existing NPLs Subtract charges for Upgrading Settlements Recoveries Total SP charges

17 CDO exposure reduced due to repayments and exchange rate movements (S$m) Amount as at: 31 Mar 31 Jan allowance charges Cumulative allowances % coverage ABS CDOs (8) (with US sub-prime) Non-ABS CDOs 1,178 1, of which in: Investment portfolio Trading portfolio Total 1,437 1,

18 CAR maintained, RWA decreases under Basel II (%) Tier 2 (Basel I) Tier 1 (Basel I) Tier 2 (Basel II) Tier 1 (Basel II) (S$bn) Tier-1 capital RWA Dec Dec Dec Mar

19 one-tier dividends of 20 cents (S ) Special (gross) Ordinary (gross) Ordinary (one-tier)

20 Earnings resilience despite market volatility Key operating trends intact Lower Hong Kong margins offset by stronger non-interest income Balance sheet remains strong 20

21 Earnings resilience despite market volatility DBS Group Holdings financial results May 7, 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.