Record earnings underpinned by broad-based growth DBS Group Holdings financial results April 29, 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.
Record earnings underpinned by broad-based growth Total income and earnings reach new highs Hong Kong s performance improves Balance sheet remains strong 2
Net profit up 52% on year and 19% on quarter (S$m) YoY % 4Q QoQ % Net interest income 1,122 1,066 5 1,106 1 Fee income 416 341 22 358 16 Trading income 258 230 12 164 57 Other income 113 76 49 101 12 Non-interest income 787 647 22 623 26 Total income 1,909 1,713 11 1,729 10 Staff expenses 405 338 20 362 12 Other expenses 368 364 1 418 (12) Expenses 773 702 10 780 (1) Profit before allowances 1,136 1,011 12 949 20 Allowances 125 355 (65) 157 (20) Net profit 807 532 52 678 19 3
Key ratios improve (%) 4Q Net interest margin 1.80 1.79 1.93 Fee income/total income 22 21 20 Non-interest income/total income 41 36 38 Cost/income 40 45 41 ROE 12.1 10.2 8.2 Loans/deposits 79 79 74 SP/average loans (bp) 9 25 97 NPL ratio 1.8 1.9 2.7 4
Net interest income higher, margins stable on quarter (S$m) Net interest margin (%) 2.04 2.02 1.84 1.93 1.84 1.80 1.79 1.80 4,301 4,455 4,318 1,066 1,067 1,079 1,106 1,122 2008 2009 2Q 3Q 4Q 5
Loans up 4% and deposits up 3% on quarter (S$bn) Loans Deposits 170 183 152 194 157 200 126 131 Dec 08 Dec 09 Dec 10 Mar 11 Loans/deposits (%) 74 71 79 79 6
Non-interest income up 26% on quarter as fee income and treasury cross-selling rise (S$m) Trading + other income Fee income Non-interest income as % of total income 29 33 39 2,748 38 41 40 36 41 1,730 456 2,148 754 1,351 1,274 1,394 1,397 647 748 730 623 306 390 390 265 341 358 340 358 787 371 416 2008 2009 2Q 3Q 4Q 7
Wealth management fees increase Regional sales volume (S$m) Bancassurance Unit trusts 1,552 1,465 1,033 778 850 403 193 258 585 592 630 536 544 1,016 921 2Q 3Q 4Q Fees (unit trusts & bancassurance only) 27 34 31 44 49 Excluding other wealth management products such as structured deposits 8
Expenses little changed on quarter (S$m) Staff expense Other expense Cost / income (%) 43 39 41 41 40 40 45 40 2,925 2,610 2,604 1,256 1,292 1,422 1,354 1,312 1,503 702 717 726 780 773 338 362 360 362 405 364 355 366 418 368 2008 2009 2Q 3Q 4Q 9
Record earnings underpinned by broad-based growth Total income and earnings reach new highs Hong Kong s performance improves Balance sheet remains strong 10
Hong Kong s net profit up 6% on year and 32% on quarter Constant currency terms (S$m) YoY % YoY % 4Q QoQ % QoQ % Net interest income 190 202 (6) 4 192 (1) 2 Non-interest income 200 165 21 34 157 27 30 Total income 390 367 6 18 349 12 15 Expenses 155 147 5 17 177 (12) (10) Profit before allowances 235 220 7 18 172 37 40 Allowances 9 7 29 58 16 (44) (40) Net profit 190 180 6 16 144 32 34 Figures for Hong Kong geographical basis and converted to S$ using monthly closing rates Based on Singapore GAAP 11
Hong Kong margins stable and ROA up on quarter (%) 4Q Net interest margin 1.48 1.49 1.80 Non-interest income/total income 51 45 45 Cost/income 40 51 40 ROA 1.33 1.01 1.40 Loans/deposits 103 99 91 12
Contributions from regional operations improve (S$m) YoY % 4Q QoQ % Net interest income 232 207 12 210 10 Non-interest income 121 113 7 49 >100 Total income 353 320 10 259 36 Expenses 153 136 13 158 (3) Profit before allowances 200 184 9 101 98 Allowances 3 70 (96) 30 (90) Net profit 175 103 70 63 >100 Figures for operations outside of Singapore and Hong Kong 13
Record earnings underpinned by broad-based growth Total income and earnings reach new highs Hong Kong s performance improves Balance sheet remains strong 14
Non-performing assets decline 4% on quarter NPA (S$m) >90 days overdue <90 days overdue Not overdue NPL ratio (%) 2.9 2.7 1.5 2,392 45% 19% 36% 4,219 49% 8% 43% 1.9 3,213 53% 7% 40% 4,068 52% 7% 41% 2.3 3,724 53% 21% 26% 2.1 3,505 56% 6% 38% 1.9 3,213 53% 7% 40% 1.8 3,098 51% 11% 38% 2008 2009 Mar Jun Sep Dec Mar SP/loans (bp) 35 85 43 97 19 33 25 9 Cumulative general and specific allowances as % of: NPAs 114 83 100 92 101 97 100 103 Unsecured NPAs 176 108 127 119 126 124 127 134 15
New NPAs remain low (S$m) 4Q NPAs at start of period 3,213 3,505 4,219 New NPAs 108 207 207 Net recoveries of existing NPAs (111) (153) (246) Write-offs (112) (346) (112) NPAs at end of period 3,098 3,213 4,068 16
Specific allowances decline (S$m) 4Q Add charges for New NPLs 20 28 73 Existing NPLs 70 128 311 Subtract charges for 90 156 384 Upgrading 0 0 0 Settlements 43 53 53 Recoveries 13 6 7 56 59 60 Total SP charges 34 97 324 SP / average loans (bp) 9 25 97 17
AFS portfolio well-balanced between investmentgrade government and corporate debt (S$m) Mar Dec Singapore government securities 10,308 9,731 Other government securities 8,061 8,345 Corporate debt securities 10,261 9,922 Equities 1,104 1,143 Total 29,734 29,141 18
Capital position remains strong (%) Tier 2 Tier 1 14.0 16.7 3.6 17.1 3.7 16.5 3.4 16.3 3.2 18.4 3.3 17.2 3.0 3.9 10.1 13.1 13.4 13.1 13.1 15.1 14.2 Dec 08 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Core Tier 1 (%) 8.0 11.0 11.3 11.1 11.2 11.8 11.5 RWA (S$bn) 183 177 176 185 187 183 190 19
In summary broad-based growth as implementation of strategy gains momentum Record earnings underpinned by broad-based growth, reflecting momentum in implementation of strategic initiatives Strong balance sheet, well-positioned to capture regional opportunities Continued focus on execution to grow customer franchise and shareholder value 20
Record earnings underpinned by broad-based growth DBS Group Holdings financial results April 29, 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.