Growth in core businesses offsets weaker non-interest income. DBS Group Holdings 1Q 2005 Financial Results Presentation to Media and Analysts

Transcription

1 Growth in core businesses offsets weaker non-interest income April 29, 2005 DBS Group Holdings 1Q 2005 Financial Results Presentation to Media and Analysts This presentation is available at 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 First quarter net profit at $ 412 million ($ million) 1Q 1Q YoY % 4Q QoQ % change 2004 change Net profit excluding (30%) 426 (3%) goodwill amortization Net profit on GAAP (15%) % basis* * FRS 103 accounting change for goodwill amortization not retroactively applied to 2004 reported results 2

3 Nine consecutive quarters of loan growth; net interest income highest in ten quarters Customer loans* $ 71 billion 22% $ 13 billion Net interest income $ 664 million * Exclude DBS Thai Danu Bank 3

4 Sustained growth in customer franchise across the region Net profit Consumer, SME $ 233 million 18% Consumer $ 150 million 25% SME $ 83 million 6% Consumer, SME combined accounted for 57% of DBS total net profit for the quarter 4

5 Strong asset quality, balance sheet supports DBS growth Asset quality one of the best among Asian banks NPL rate of 2.4% Provision coverage of 90% Strong balance sheet Moody s Aa2 credit rating among highest of banks competing in Asia-Pacific Tier 1 ratio: 10.9% Overall CAR: 15.3% 5

6 Delivering sustainable and progressively increasing dividends Instituted quarterly dividend programme First Quarter 2005 dividend set at 11 cents per share 6

7 Well-positioned to achieve further growth, deliver higher returns to shareholders More balanced and diversified business mix Strengthened customer franchise Up-to-date risk management practices, technology and operations platform Continue to extend business model to new geographies, grow our share in existing markets 7

8 Operating profits improve 16% on quarter from revenue growth and lower expenses (S$m) 1Q Q 2004 % change 4Q 2004 % change Net interest income Non-interest income (36) Operating income 1,072 1,270 (16) 1,027 4 Staff costs Other operating expenses (5) 282 (13) Operating expenses (1) 541 (6) Operating profit (26) Provisions/(write-backs) (31) nm Net profit before goodwill (30) 426 (3) Goodwill amortisation (100) 110 (100) Net profit (15)

9 Key ratios generally unchanged on quarter (%) 1Q Q Q 2004 Net interest margin Non-interest income/total income Cost/income ROE Loans/deposits Loan + non-trading debt securities/ deposits NPL ratio

10 Net interest income highest in ten quarters, margins steady (S$m) Net interest margin (%) 2,645 2,375 2, Q 2Q 3Q 4Q 1Q

11 Loans expand 14% on year to record (S$m) DTDB loans 2% 71,060 2,915 2% 2,915 4% 3,275 3% 4% 69,664 61,420 62,429 65,053 67,221 Dec 2003 Mar 2004 Jun 2004 Sep 2004 Dec 2004 Mar

12 Fee income from annuity businesses remains steady (S$m) , a 548 a 1, ,883 1, b b b Q 2Q 3Q 4Q 1Q b 2004 Fee income Dividend & rental Other income Non-interest income / total income (%) 2005 (a) Excluding one-time gains of $96m (b) Excluding one-time gains of $497m 12

13 Wealth management sales improve, revenues rise 16% on quarter (S$m) 9,006 9,242 Structured deposits Bancassurance Unit trusts 7,227 5, ,766 2,545 1,732 2,093 2, ,526 1, ,157 2, , ,578 1, Q 2Q 3Q 4Q 1Q Sales (all products) S pore 4,162 3,874 1, , HK 4,844 5,368 1,522 1,175 1,517 1,154 1,102 Fees (unit trusts and bancassurance only) S pore + HK

14 Revenues rebound on quarter, customer businesses resilient (S$m) 1Q Q 2004 Change 4Q 2004 Change Consumer Banking Enterprise Banking (4) Corporate and Investment Banking (2) Global Financial Markets (239) Central Treasury Unit (62) 85 (39) Central Operations Total 1,072 1,270 (198) 1,

15 Operating costs kept under control (S$m) 1, a 45 1, , b b 46 Cost/Income (%) Q 2Q 3Q 4Q 1Q Annualised cost / average assets (%) Headcount c 12,035 12,144 11,454 12,173 10,838 11,083 11,454 11,649 Staff costs (S$m) (a) Excluding one-time gains of $96m (b) Excluding one-time gains of $497m (c) At period end 15

16 Hong Kong s net profit 27% lower on year (S$m) 1Q 1Q % 4Q % change 2004 change Net interest income (9) 205 (2) Non-interest income (29) 124 (20) Operating income (16) 329 (9) Operating expenses (4) Op profit before provisions (31) 171 (13) Provisions 7 25 (72) 23 (70) Net profit (27) 129 (6) Exchange rate at HK$1 to S$ for all periods. Based on Singapore GAAP 16

17 Key Hong Kong ratios continue to support group (%) 1Q Q Q 2004 Net interest margin Non-interest income/total income Cost/income ROA Loans/deposits

18 Regional revenues continue to grow at faster pace Amount (S$m) 1Q Q 2005 YoY change (%) Revenues Region and rest of world a Hong Kong Singapore Total , , (18) (15) (13) Net profit b Region and rest of world a (59) Hong Kong (26) Singapore (27) Total (40) (a) Excluding DTDB in all periods (b) Excluding goodwill amortisation 18

19 NPL rate edges down to 2.4% (S$m) Substandard Doubtful Loss NPL rate (%) ,224 3,780 3, % 73% 1,919 75% 2,182 1,934 1,919 1, % 20% 5% 22% 71% 9% 20% 6% 19% 72% 9% 19% 70% 9% 21% 71% 9% 20% 72% 9% 19% Mar Jun Sep Dec Mar

20 Non-performing loans stable as additions offset recoveries and write-offs (S$m) 1Q Q Q 2004 NPLs at start of period 1,919 1,934 3,780 New NPLs Net recoveries of existing NPLs (135) (261) (396) Write-offs (41) (79) (175) NPLs at end of period 1,928 1,919 3,359 20

21 Specific provision charges remain low (S$m) 1Q Q Q 2004 Add charges for New NPLs Existing NPLs Subtract charges for Upgrading Settlements Recoveries Total SP charges

22 Provision coverage improves to 90% (S$m) GP SP ,500 2,387 2, ,064 1,701 1,819 1,752 1,701 1,736 1,072 1,015 1,025 1,037 1,015 1,036 1,511 1,323 1, Mar Jun Sep Dec Mar Coverage ratios (%) SP+GP / Unsec NPAs SP+GP / NPAs

23 Tier-1 CAR trimmed as RWA expands in 1Q (%) Tier-2 CAR Tier-1 CAR Mar Jun Sep Dec Mar (S$bn) Tier-1 capital RWA capital ratios based on MAS framework. Earlier periods based on BIS guidelines 23

24 Quarterly dividend rate of 11 cents (Cents) Final Interim Quarterly Q

25 Growth in core businesses offsets weaker non-interest income April 29, 2005 DBS Group Holdings 1Q 2005 Financial Results Presentation to Media and Analysts This presentation is available at 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.