DBS Group Holdings Ltd · SGX:D05

DBS — Q4 2012 Earnings Presentation

24 slides from DBS's earnings presentation, Feb 6, 2013

  1. Slide 1: Full-year earnings at record

    Full-year earnings at record DBS Group Holdings 4Q 2012 financial results February 6, 2013 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 li

  2. Slide 2: Full-year earnings at record

    Full-year earnings at record  Earnings growth sustained  Hong Kong fundamentals improving  Balance sheet remains robust 2

  3. Slide 3: Full-year earnings up 11% before one-time item

    Full-year earnings up 11% before one-time item (S$m) FY FY YoY 2012 2011 % Net interest income 5,285 4,825 10 Fee income 1,579 1,542 2 Trading income 689 680 1 Other income 511 584 (13) Non-interest income 2,779 2,806 (1) Total income 8,064 7,631 6 Staff expenses 1,888 1,712 10 Other expenses 1,726

  4. Slide 4: 4Q pretax profit up 10% on year

    4Q pretax profit up 10% on year (S$m) 4Q 4Q YoY 3Q QoQ 2012 2011 % 2012 % Net interest income 1,293 1,290 0 1,332 (3) Fee income 372 342 9 422 (12) Trading income 134 133 1 130 3 Other income 160 151 6 120 33 Non-interest income 666 626 6 672 (1) Total income 1,959 1,916 2 2,004 (2) Staff expenses 4

  5. Slide 5: Full-year ROE improves to 11.2%

    Full-year ROE improves to 11.2% (%) 4Q 4Q 3Q FY FY 2012 2011 2012 2012 2011 Net interest margin 1.62 1.73 1.67 1.70 1.77 Fee income/total income 19 18 21 20 20 Non-interest income/total 34 33 34 34 37 income Cost/income 48 46 45 45 43 ROE 9.8 10.2 11.2 11.2 11.0 Loan/deposit 87 86 84 87 86 SP/averag

  6. Slide 6: Full-year net interest income up 10%

    Full-year net interest income up 10% (S$m) Net interest margin (%) 5,285 4,825 4,318 2.02 1.84 1.80 1.80 1.73 1.73 1.77 1.72 1.77 1.84 1.70 1.77 1.67 1.62 1,336 1,324 1,332 1,293 1,122 1,199 1,214 1,290 2010 2011 2012 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2011 2012 6

  7. Slide 7: Loans up 12% on year and 4% on quarter, LDR healthy at 87%

    Loans up 12% on year and 4% on quarter in constant currency terms, LDR healthy at 87% (S$bn) Loans Deposits Other funding 260 260 268 267 248 28 24 23 28 29 225 232 231 240 243 195 198 205 202 211 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Loan/deposit (%) Group 86 85 89 84 87 SGD 64 65 68 68 69 Non-SGD 116

  8. Slide 8: Non-interest income stable as higher customer income offset lower equity market activities

    Non-interest income stable as higher customer income offset by lower equity market activities (S$m) Non-interest income / total income (%) Fee income Trading + other income 41 39 38 38 37 34 35 34 34 33 32 2,748 2,806 2,779 1,397 1,542 1,579 787 754 820 639 626 621 672 666 416 397 406 1,351 1,264 1,

  9. Slide 9: Full-year Treasury customer income up 6%

    Full-year Treasury customer income up 6%, accounting for 44% of total Treasury income (S$m) FY FY YoY 2012 2011 % Customer income 868 822 6 Other income, principally from balance sheet management, 1,119 1,152 (3) market-making and warehousing Total Treasury income 1,987 1,974 1 Customer income as %

  10. Slide 10: Continued investments to support higher business volumes and build capacity for growth

    Continued investments to support higher business volumes and build capacity for growth (S$m) Cost / income (%) Staff expenses Other expenses 48 45 46 45 43 43 43 45 41 40 42 3,614 3,303 2,925 1,888 1,712 1,422 798 847 885 898 872 901 943 1,726 773 1,503 1,591 440 485 466 482 455 405 423 444 368 375

  11. Slide 11: Full-year earnings at record

    Full-year earnings at record  Earnings growth sustained  Hong Kong fundamentals improving  Balance sheet remains robust 11

  12. Slide 12: Hong Kong's full-year earnings up 26% in constant currency terms

    Hong Kong’s full-year earnings up 26% in constant currency terms Constant-currency terms (S$m) FY FY YoY YoY 2012 2011 % % Net interest income 886 789 12 13 Non-interest income 646 664 (3) (3) Total income 1,532 1,453 5 6 Expenses 678 646 5 6 Profit before 854 807 6 6 allowances General allowances (

  13. Slide 13: Hong Kong's 4Q earnings up 30% on year in constant currency terms

    Hong Kong’s 4Q earnings up 30% on year in constant currency terms Constant-currency terms (S$m) 4Q 4Q YoY YoY 3Q QoQ QoQ 2012 2011 % % 2012 % % Net interest income 221 211 5 10 228 (3) (1) Non-interest income 174 151 15 21 145 19 22 Total income 395 362 9 14 373 6 8 Expenses 187 184 2 7 168 11 13 Pr

  14. Slide 14: Full-year regional earnings down 4% on higher expenses

    Full-year regional earnings down 4% on higher expenses (S$m) FY FY YoY 2012 2011 % Net interest income 1,190 1,130 5 Non-interest income 376 329 14 Total income 1,566 1,459 7 Expenses 848 709 20 Profit before allowances 718 750 (4) Allowances 88 100 (12) Net profit 564 587 (4) Figures for operations

  15. Slide 15: Full-year earnings at record

    Full-year earnings at record  Earnings growth sustained  Hong Kong fundamentals improving  Balance sheet remains robust 15

  16. Slide 16: NPL ratio is stable at 1.2%

    NPL ratio is stable at 1.2% NPA (S$m) NPL ratio (%) Not overdue <90 days overdue >90 days overdue 1.9 1.8 1.5 1.3 1.3 1.3 1.3 1.3 1.3 1.2 1.2 3,213 3,098 2,883 2,904 2,726 2,780 2,904 2,908 2,956 2,835 2,726 40% 38% 37% 33% 31% 40% 46% 37% 40% 55% 46% 7% 6% 11% 6% 11% 16% 13% 11% 24% 11% 8% 53% 54%

  17. Slide 17: NPAs decline 4% on quarter

    NPAs decline 4% on quarter (S$m) 4Q 3Q 4Q 2012 2012 2011 NPAs at start of period 2,835 2,956 2,780 New NPAs 112 50 212 Upgrades, recoveries and translation (152) (120) (27) Write-offs (69) (51) (61) NPAs at end of period 2,726 2,835 2,904 17

  18. Slide 18: Specific allowances remain low

    Specific allowances remain low (S$m) 4Q 3Q 4Q 2012 2012 2011 Add charges for New NPLs 43 25 83 Existing NPLs 73 55 39 116 80 122 Subtract charges for Settlements 29 28 20 Recoveries 8 16 10 37 44 30 Total SP charges for loans 79 36 92 SP / average loans (bp) 15 7 19 18

  19. Slide 19: AFS portfolio diversified between investment-grade government and corporate debt

    AFS portfolio diversified between investment- grade government and corporate debt Dec 12 Sep 12 Dec 11 (S$m) (S$m) (S$m) Singapore government securities 9,818 10,007 10,464 Other government securities 15,927 12,175 9,616 Supranational, bank and 8,988 10,651 10,474 corporate debt securities Equities

  20. Slide 20: Capital ratios remain strong

    Capital ratios remain strong (%) 18.4 17.2 16.5 16.5 17.1 Tier 2 15.8 16.4 3.3 15.5 15.4 3.0 3.0 3.1 3.1 2.9 2.9 3.7 2.6 Tier 1 15.1 14.2 14.0 13.5 12.6 12.9 12.7 12.8 13.4 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Core Tier 1 (%) based on deductions that are: Phased in * 14.5 1

  21. Slide 21: Well-positioned to comply with Basel III capital requirements

    Well-positioned to comply with Basel III capital requirements Basel 2.5 Pro forma Basel III Dec 2012 Transition Final Core equity (S$bn) 30.2 30.6 26.7 RWA (S$bn) 215.6 226.6 226.6 Core Tier 1 ratio (%) 14.0 13.5 11.8  Higher RWA under Basel III from increase in risk weights for financial instituti

  22. Slide 22: Final dividend of 28 cents per share

    Final dividend of 28 cents per share (S¢ per share) Half-yearly Quarterly 56 56 56 28 28 28 14 28 28 14 2010 2011 2012 22

  23. Slide 23: In summary – full-year earnings at record

    In summary – full-year earnings at record Record annual earnings with ROE at five-year high Capital, liquidity and asset quality remain strong Well-positioned to benefit from improved regional outlook in coming year 23

  24. Slide 24: Full-year earnings at record

    Full-year earnings at record DBS Group Holdings 4Q 2012 financial results February 6, 2013 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 li

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