DBS Group Holdings Ltd · SGX:D05
DBS — Investor Presentation (December 2008)
9 slides from DBS's investor presentation, Dec 22, 2008
Slide 1: Media & Analyst Presentation
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA Media & Analyst Presentation DBS Group Holdings Ltd December 22, 2008 Disclaimer: The information contained in this document is intended only for use during the presentation and should not b
Slide 2: Disclaimer
Disclaimer Important Information This presentation has been prepared by DBS Group Holdings Ltd (the “Company”) in connection with the proposed renounceable underwritten rights issue of new ordinary shares in the capital of the Company (the “Rights Shares”). This presentation is for information purpo
Slide 3: Summary of rights issue
Summary of rights issue Offer type: Renounceable, fully underwritten rights issue Size: SGD 4.0 billion (net proceeds) Issue price: SGD 5.42 per rights share Offer Discount: 45% to last closing price(1) or 35% to theoretical ex-rights price structure Rights ratio: 1 rights share for 2 existing share
Slide 4: Timetable of events
Timetable of events 22 Dec 2008 Announcement of rights issue 29 Dec 2008 Shares trade ex-rights 31 Dec 2008 Book closure date Despatch of Offer Information Statement 6 Jan 2009 Commencement of trading of “nil-paid” rights 14 Jan 2009 Last date for trading of “nil-paid” rights Last date for acceptanc
Slide 5: Raising capital from a position of strength
Raising capital from a position of strength Well capitalised Strong liquidity Quality loan book (As a % of Sep 08 RWA) Sep 08 LDR ratio(2) (%) NPLs (%) Coverage (%) 13.4 126 88 89 90 109 85 108 84 9.7 77 1.4 1.3 7.8 1.1 Core Tier 1 / Tier 1 Total CAR DBS OCBC SCB HSBC UOB Maybank Dec 07 Jun 08 Sep 0
Slide 6: Rationale for rights issue
Rationale for rights issue (As a % of Sep 08 RWA)(2) Addresses market Total capital expectations for higher Tier 1 capital capital levels Core Tier 1 capital Additional equity of SGD 4.0 bn(1) Provides flexibility to seize 16.7 15.5 15.5 14.8 growth opportunities and 14.4 strengthen franchise 13.4 1
Slide 7: Positioning for growth beyond current downturn
Positioning for growth beyond current downturn Extend leadership in Singapore and strengthen Hong Kong Continue to build in key growth markets of China, Taiwan, India and Indonesia Deepen existing customer relationships and acquire new relationships Optimise loan portfolio Maintain strong liquidity
Slide 8: Trading update
Trading update Relatively stable vs. 3Q08(1) Total income Net interest income modestly higher vs. 3Q08 Fee income lower vs. 3Q08 due to slowdown in markets-related activities Staff costs higher vs. 3Q08 due to normalisation of bonus accruals Expenses FY2008 cost-income ratio broadly in line with pre
Slide 9: Conclusion
Conclusion Rights issue is proactive and initiated from a position of strength Stronger capital base addresses market expectations for higher core capital levels, provides flexibility to execute strategy and facilitates increase in profitability 4Q08 results reflect operating headwinds but demonstra
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