DBS Group Holdings Ltd · SGX:D05

DBS — Q1 2006 Earnings Presentation

26 slides from DBS's earnings presentation, Apr 28, 2006

  1. Slide 1: Sustained customer franchise growth

    Sustained customer franchise growth DBS Group Holdings 1Q 2006 financial results April 28, 2006 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

  2. Slide 2: First quarter net profit up 39%

    First quarter net profit up 39% (S$m) 1Q 2006 1Q 2005 % change Net profit 518 373 39% Return on equity 12.2% 9.0% 3.2% pts Return on assets 1.14% 0.83% 0.31% pts 2

  3. Slide 3: Net interest income and margin at record high

    Strong operating trends; net interest income, net interest margin at record high ƒ Net interest income: $850 million, a record high, 24% from previous year ƒ Net interest margin: 2.23%, highest since we started quarterly reporting in September 2001 (S$m) Net interest margin (%) Net interest income 2

  4. Slide 4: Continued fee income growth

    Strong operating trends; continued fee income growth ƒ Fee income: 14% from previous year Fee income reached a record high, rose for seven consecutive years to achieve 20% CAGR (1998 – 2005) (S$m) Fee income 933 986 825 755 626 508 423 274 262 0 1998 1999 2000 2001 2002 2003 2004 2005 1Q 06 4

  5. Slide 5: Higher contribution from customer franchise

    Higher contribution from customer franchise Operating profit ƒ Customer franchise $623 million 68% Ö Consumer $304 million 64% Ö SME $150 million 50% Ö Corporate and Investment Banking $169 million 99% Operating profit is operating income excluding one-time gains less operating expenses and provisio

  6. Slide 6: Asset quality, credit ratings remain strong

    Asset quality, credit ratings remain strong „ One of the best asset quality among Asian banks Ö NPL rate of 2.1% Ö Provision coverage of 100% „ Strong capital ratios Ö Tier 1: 10.2% Ö Overall: 14.1% „ One of the highest credit ratings among Asian banks Ö DBS Bank: Moody’s Aa2, S&P’s AA- , Fitch’s AA

  7. Slide 7: Delivering progressively rising dividends

    Delivering progressively rising dividends ƒ First-quarter dividend of 17 cents per share, from 11 cents per share a year-ago, same as previous quarter ƒ Dividend policy reflects our policy of rewarding shareholders with sustainable, progressively rising dividends 7

  8. Slide 8: Sustained customer franchise growth

    Sustained customer franchise growth DBS Group Holdings 1Q 2006 financial results April 28, 2006 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

  9. Slide 9: Strong growth in interest and non-interest income boost operating profit

    Strong growth in interest and non-interest income boost operating profit by 28% on year (S$m) 1Q YoY QoQ 2006 % % Net interest income 850 24 6 Fee income 262 14 9 Trading income 108 32 na Other income 50 19 (45) Non-interest income 420 19 34 Operating income 1,270 22 14 Staff costs 300 13 8 Other ex

  10. Slide 10: Key ratios improve

    Key ratios improve (%) 1Q 4Q 1Q 2006 2005 2005 Net interest margin 2.23 2.06 1.82 Fee income/total income 21 22 22 Non-interest income/total income 33 28 34 Cost/income 44 49 47 ROE 12.2 8.8 9.0 Loans/deposits 66 68 61 NPL ratio 2.1 2.1 2.4 Excluding one-time gains and goodwill charges 10

  11. Slide 11: Interest income at quarterly record as margins rise

    Interest income at quarterly record as margins rise (S$m) Net interest margin (%) 2,943 2,691 2,507 2.23 2.06 1.88 1.87 1.91 1.92 1.82 1.84 800 850 685 712 746 2003 2004 2005 1Q 2Q 3Q 4Q 1Q 2005 2006 11

  12. Slide 12: Operating profit higher on year and on quarter

    Operating profit higher on year and on quarter (S$m) 1Q YoY QoQ 2006 % % Consumer Banking 307 51 26 Enterprise Banking 170 39 28 Corporate and Investment Banking 152 28 (18) Global Financial Markets 118 42 >100 Central Treasury Unit 70 100 84 Central Operations (111) nm nm Total 706 28 25 Operating

  13. Slide 13: Loans expand 11% on year

    Loans expand 11% on year (S$m) DTDB loans 78,712 78,776 79,462 78,818 0% 1% (1%) 11% 71,055 69,659 2% 67,216 4% 65,0483% 4% 2% 2,915 2,915 61,415 62,424 Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar 2003 2004 2005 2006 13

  14. Slide 14: Fee income up 14% on year

    Fee income up 14% on year Fee income (S$m) Dividends and rentals Other income 1,788 1,767 Non-interest income / total income (%) a 41 37 40 1,395 34 29 33 32 28 825 933 986 87 104 421 420 855 353 314 751 127 307 274 262 229 242 241 282 8 12 36 112 111 27 52 150 38 21 2003 2004 2005 1Q 2Q 3Q 4Q 1Q 20

  15. Slide 15: Wealth management revenues increase

    Wealth management revenues increase (S$m) Structured deposits 9,006 9,242 Bancassurance Unit trusts 7,428 7,227 5,908 4,334 429 247 2,066 1,863 2,042 1,917 200 1,157 1,457 603 2,905 2,847 1,245 1,249 52 683 1,578 41 41 121 44 1,262 868 575 752 653 2003 2004 2005 1Q 2Q 3Q 4Q 1Q 2005 2006 Sales (all p

  16. Slide 16: Cost-income ratio falls to 44%

    Cost-income ratio falls to 44% (S$m) Cost/Income (%) 1,956 2,026 1,801 47 47 48 49 44 43 44 42 484 505 551 564 486 2003 2004 2005 1Q 2Q 3Q 4Q 1Q 2005 2006 Headcount 12,144 11,454 12,728 11,649 12,090 12,562 12,728 12,673 Staff costs (S$m) 876 993 1,052 265 253 255 279 300 Cost-income ratio excludes

  17. Slide 17: Hong Kong's operating profit up 36% on year

    Hong Kong’s operating profit up 36% on year (S$m) 1Q YoY QoQ 2006 % % Net interest income 278 36 1 Non-interest income 90 (8) 38 Operating income 368 21 8 Operating expenses 162 7 (9) Operating profit 206 36 28 Provisions 19 >100 (24) Net profit after tax 156 29 33 Figures for Hong Kong geographical

  18. Slide 18: Key Hong Kong ratios improve

    Key Hong Kong ratios improve (%) 1Q 4Q 1Q 2006 2005 2005 Net interest margin 2.64 2.42 1.98 Non-interest income/total income 24 20 32 Cost/income 44 53 50 ROA 1.34 0.94 1.07 Loans/deposits 77 78 75 18

  19. Slide 19: Continued organic regional growth through branch network

    Continued organic regional growth through branch network India „ Assets S$1,263 m 114% „ Branches 2 (Mumbai, New Delhi) Seoul Beijing Shanghai Tokyo Taipei China Hong Kong „ Assets S$5,806 m 13% Mumbai Yangon „ Branches 5 (Beijing, Guangzhou, Bangkok Manila Shanghai, Shenzhen, Suzhou ) „ Rep offices

  20. Slide 20: NPL rate stable at 2.1%

    NPL rate stable at 2.1% (S$m) Substandard Doubtful Loss 5.2 NPL rate (%) 2.5 2.4 2.2 2.1 2.0 2.1 2.1 3,780 73% 1,919 1,865 1,928 1,896 1,807 1,865 1,750 71% 65% 72% 71% 68% 65% 63% 5% 9% 15% 9% 11% 14% 15% 14% 22% 20% 20% 19% 19% 18% 18% 20% 22% 2003 2004 2005 Mar Jun Sep Dec Mar 2005 2006 20

  21. Slide 21: New NPAs decline, recoveries rise

    New NPAs decline, recoveries rise (S$m) 1Q 1Q 4Q 2006 2005 2005 NPAs at start of period 1,865 1,919 1,807 New NPAs 170 185 250 Net recoveries of existing NPAs (210) (135) (150) Write-offs (75) (41) (42) NPAs at end of period 1,750 1,928 1,865 21

  22. Slide 22: Specific provision charges for loans decline

    Specific provision charges for loans decline (S$m) 1Q 1Q 4Q 2006 2005 2005 Add charges for New NPLs 39 53 86 Existing NPLs 33 33 33 72 86 119 Subtract charges for Upgrading 3 2 1 Settlements 22 34 41 Recoveries 7 6 6 32 42 48 Total SP charges 40 44 71 tangerinesin\Analyst presentation\1H2001 Results

  23. Slide 23: Provision coverage rises to 100%

    Provision coverage rises to 100% (S$m) GP SP 2,392 1,800 1,741 1,784 1,757 1,800 1,749 1,066 1,706 1,017 1,031 1,039 1,068 1,032 1,031 1,045 1,326 689 769 702 716 726 769 704 2003 2004 2005 Mar Jun Sep Dec Mar 2005 2006 Coverage ratios (%) SP+GP / Unsec NPAs 124 187 198 202 201 207 198 218 SP+GP / N

  24. Slide 24: CAR lower as RWA expands

    CAR lower as RWA expands (%) Tier-2 Tier-1 15.1 15.8 15.3 14.8 14.7 14.7 14.8 14.1 4.5 4.4 4.6 4.2 4.1 4.3 4.2 3.9 10.5 11.3 10.6 10.9 10.6 10.4 10.6 10.2 2003 2004 2005 Mar Jun Sep Dec Mar (S$bn) 2005 2006 Tier-1 capital 9.6 11.8 13.1 11.8 12.2 12.6 13.1 13.5 RWA 92.1 104.0 123.8 108.8 114.8 121.2

  25. Slide 25: Dividend up 55% on year to 17 cents per share

    Dividend up 55% on year to 17 cents per share (S¢) Final Interim Quarterly 58 17 40 30 30 15 22 16 16 17 15 14 14 18 11 2002 2003 2004 2005 2006 25

  26. Slide 26: Sustained customer franchise growth

    Sustained customer franchise growth DBS Group Holdings 1Q 2006 financial results April 28, 2006 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

DBS Group Holdings — Q1 2006 Earnings Presentation on 6ix