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DBS Group Holdings 1Q 2002 Financial Results Presentation to Media and Analysts

April 29, 2002. DBS Group Holdings 1Q 2002 Financial Results Presentation to Media and Analysts This presentation is available at www.dbs.com.

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DBS Group Holdings 1Q 2002 Financial Results Presentation to Media and Analysts

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  1. April 29, 2002 DBS Group Holdings 1Q 2002 Financial Results Presentation to Media and Analysts This presentation is available at www.dbs.com Disclaimer: The material that follows is a presentation of general background information about the Bank’s activities current at the date of thepresentation. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice when deciding if an investment is appropriate. DBS Bank accepts no liability whatsoever with respect to the use of this document or its contents.

  2. Highlights of 2002 progress (YoY incl acqn) Net interest income $670m (1Q01 : $489m) 37% Fee income $193m (1Q01 : $118m) 64% Non-interest income $355m (1Q01 : $319m) 11% Total revenue $1,024m (1Q01 : $808m) 27% ` Operating expenses $459m (1Q01 : $383m) 20% Operating profit (a) $565m (1Q01 : $425m) 33% Cash NPAM $346m (1Q01 : $321m) 8% (a) Exclude goodwill

  3. Highlights of 2002 progress (YoY excl acqn) Net interest income $532m (1Q01 : $489m) 9% Non-interest income $254m (1Q01 : $319m) 22% Total revenue $785m (1Q01 : $808m) 3% ` Operating expenses $329m (1Q01 : $383m) 15% Operating profit $456m (1Q01 : $425m) 7% NPAM $321m (1Q01 : $321m) -

  4. Highlights of 2002 progress (QoQ) Net interest income $670m (4Q01 : $707m) 5% Fee income $193m (4Q01 : $207m) 7% Non-interest income $355m (4Q01 : $259m) 37% Total revenue $1,024m (4Q01 : $966m) 6% ` Operating expenses $459m (4Q01 : $516m) 11% Operating profit (a) $565m (4Q01 : $450m) 26% Cash NPAM $346m (4Q01 : $236m) 46% (a) Exclude goodwill

  5. Cost-to-income (a) 44.8% (2001 : 49.1%) NPLs 5.9% (2001 : 5.7%) Most ratios improved Net interest margin 2.02% (2001 : 1.87%) Cash ROA (b) 0.91% (2001 : 0.86%) Cash ROE (b) 10.12% (2001 : 10.07%) Non-interest income / operating income 34.6% (2001 : 36.3%) Loan-to-deposit 60.5% (2001 : 63.9%) Cash EPS (cents) 94 (2001 : 89) (a) Exclude goodwill (b) Annualized

  6. Strong operating income growth DBS 1Q02 DBS 4Q01 % Change DBS 1Q01 % Change (S$ million) Net interest income 670 707 (5.2) 489 36.9 Fee income 193 207 (7.1) 118 63.7 Non-interest Income 355 259 36.9 319 11.2 Total revenue 1,024 966 6.1 808 26.8 Operating expenses 459 516 (10.9) 383 19.9 Operating profit 565 450 25.6 425 33.0 Goodwill 68 68 (0.1) - NM Provisions 96 87 10.3 38 154.5 NPAM 278 169 64.8 321 (13.5) Cash NPAM 346 236 46.2 321 7.6

  7. Interest margins remain firm (S$ million) Net interest income Net interest margin (gross basis)

  8. Wealth management continues to grow (S$ million) Insurance / asset plan Sales Volume Unit trusts / Treasury investment products (a) 1,058 1,127 795 643 484 423 372 (a) Unit trusts include Horizon, Ei8ht, Up! and other DBSAM programmes while treasury investment products include Growth and structured notes

  9. Emphasis on non-interest income produces stronger returns (a) Non-interest Income to Operating Income (%) (a) Exclude extraordinary items

  10. Greater operating efficiency DBS 1Q02 DBS 4Q01 % Change DBS 1Q01 % Change (S$ million) Group Operating Expenses DBSH (excl DHB and DBSV) (a) 312 333 (6.1) 366 (14.7) DHB 96 105 (8.3) - NM DBSV 46 38 23.4 17 172.9 Restructuring costs 4 40 (89.8) - NM Total 459 516 (10.9) 383 19.9 (a) Dao Heng Bank (“DHB”), DBS Vickers (“DBSV”)

  11. Cost control initiatives effective Period expenses (a) (S$ million) (a) Normalized expenses exclude goodwill and impact of acquisitions

  12. Dao Heng Bank operating profits up DHB 4Q01 DHB 1Q02 % Change (S$ million) (a) Net interest income 162 171 (5.3) Fee income47 50 (6.4) Non-interest income 66 57 15.3 Total revenue 228 228 (0.1) Operating expenses 96 124 (22.3) Operating profit 131 104 26.3 Provisions 37 (2) NM Net profit before tax 97 105 (7.7) Net profit after tax 80 114 (30.0) (a) Based on Singapore GAAP

  13. Dao Heng Bank with HK GAAP provisions DHB 4Q01 DHB 1Q02 % Change (S$ million) Net interest income 162 171 (5.3) Fee income47 50 (6.4) Non-interest income 66 57 15.3 Total revenue 228 228 (0.1) Operating expenses 96 124 (22.3) Operating profit 131 104 26.3 Provisions (a) 10 30 (66.1) Net profit before tax 121 74 63.4 (a) Based on Hong Kong GAAP

  14. DBS Thai Danu Bank operating profits up DTDB 1Q02 DTDB 4Q01 % Change DTDB 1Q01 % Change (S$ million) (a) Net interest income 23 23 1.9 22 4.1 Fee income 5 5 (1.6) 4 24.7 Non-interest income 9 9 1.8 8 12.3 Total revenue 32 32 1.8 30 6.2 Operating expenses 22 22 2.1 22 3.0 Operating profit 10 10 1.3 8 14.4 Non-operating expenses 2 2 (1.2) 2 (13.5) Provisions 5 5 - 5 9.1 Net profit after tax 3 2 6.4 1 81.0 (a) Assume exchange rate of 1 baht to S$0.0423. Based on Thai GAAP

  15. NPL quantum down slightly while NPL rate marginally up Dao Heng Bank DBS Thai Danu Bank (S$ million) Regional 5 Countries Others 8,149 Singapore NBk NPLs / NBk Loans (%) 7,086 4,834 4,577 4,512 4,503 4,411 4,305 1,112

  16. NPLs improving at major subsidiaries (a) (S$ million) DBS Thai Danu DBS Hong Kong (a) Based on MAS guidelines

  17. Provision coverage stable at 60.4% General Provisions (GP) (S$ million) Specific Provisions (SP) SP+GP / Unsec NPLs (%) SP+GP / NPLs (%) 2,721 2,719 2,687 2,643 2,286 2,274

  18. Percentage of doubtful and loss NPLs stable Substandard (S$ million) Doubtful Loss 8,149 NPLs / Loans (%) 4,503 (61%) 4,512 4,411 (8%) (68%) (69%) (80%) (12%) (11%) (8%) (32%) (21%) (20%) (12%)

  19. 5.6 9.0 Well buffered against risks (%) DBS Group Holdings Consolidated Capital Adequacy Ratio 19.2 18.9 17.7 17.4 14.6 Mar 02 Proforma for Dao Heng 2nd tranche

  20. Remaining Minorities (0.05%) Shares to be acquired (12.68%) DBS’ shareholding (87.26%) Buy-out of minorities in DBS Kwong On Bank (a) Transaction Highlights DBS’ shareholding in DKOB • Minorities agree to sell their 12.68% of DKOB to DBS • Purchase consideration of S$210.7 mm / HK$903.8 mm • Purchase price per share is S$4.43 / HK$19 • Approximately 15 mm new DBSH shares (b) would be issued to the minorities Minority shareholders have agreed to exchange their 12.68% stake for new DBSH shares (a) DBS owns 87% of DBS Group Holdings HK which in turn owns 100% of DKOB (b) Computed using DBSH share price of S$13.92 (based on simple average closing price from April 10 to 23, 2002) and a cross HK$/S$ exchange rate of 4.2896

  21. DBS Kwong On’s integration success CAGR 1999 - 2001 DKOB 2001 DKOB 1999 (a) (HK$ million) Operating profit 304 19 301% Net profit after tax 234 16 278% Total Assets 34,647 28,512 10% Customer loans 23,979 17,281 18% NPL ratio (%) (b) 2.7 15.3 58% Credit cards in force 100,000 0 NM (a) Kwong On Bank became a subsidiary of DBS in March 1999 (b) Based on HKMA standards

  22. Synergies to exceed original HK$540 million estimates Achieved 1Q02 Revised Target Key RevenueInitiatives: • Launch of new funds (knowledge sharing) • ALCO Liquidity Management • Cross-selling opportunities (eg, T&M, Private banking, Equipment finance, Credit cards and other existing products) Select Cost Initiatives: • Accelerated implementation of branch closures • Active capacity management largely through vacancies and attrition • Back office and IT centralization Total Synergies 54% 60% 46% 40% HK$750 m (a) HK$147.4 m (a) 60% of synergy target is expected for 2002

  23. April 29, 2002 DBS Group Holdings 1Q 2002 Financial Results Presentation to Media and Analysts This presentation is available at www.dbs.com Disclaimer: The material that follows is a presentation of general background information about the Bank’s activities current at the date of thepresentation. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice when deciding if an investment is appropriate. DBS Bank accepts no liability whatsoever with respect to the use of this document or its contents.

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