DBS Group Holdings Ltd · SGX:D05
DBS — Q2 2016 Earnings Presentation
12 slides from DBS's earnings presentation, Aug 8, 2016
Slide 1: CEO Observations
CEO Observations August 8, 2016 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
Slide 2: What we previously said
What we previously said FY2015 results briefing in February Oil & gas Dec 2015 Producers Traders Processors (includeOthers Support Services) Total (S$b) Exposure 6 3 4 9 22 “10-12 names in the $500- Of which: Loans 5 1 4 7 17 600m range” Portfolio unchanged from last quarter Producers, Traders,
Slide 3: The nature of our exposure to Swiber
The nature of our exposure to Swiber S$721m exposure $403m – to finance working capital for 2 projects • Working capital based on project cash flow, generally 2 to 3 years • Dedicated project accounts • Comprises trade facilities, performance bonds and warranty bonds • Strong track record. Grant
Slide 4: Why was Swiber not NPA?
Why was Swiber not NPA? Good underlying projects. Independently corroborated Up-to-date in payment of interest and principal until June – no overdues Trade payables up from 90 to 120 days; not unusual for the industry High leverage to be addressed by bringing in private equity Short term d
Slide 5: Why did we give additional loans for bond redemptions?
Why did we give additional loans for bond redemptions? June – bridge to equity after independent validation with potential investor July – assessment that completing existing projects is best option for all 5
Slide 6: Portfolio update: Support services
Portfolio update: Support services Others June 2016* Producers Traders Processors (includes Support Total Services) (S$b) Exposure 8 3 4 7 23 Of which: Loans 8 2 4 6 19 *Excludes Swiber $2b to state-owned / government linked shipyards Remaining $5b - 90% secured $2.3b to 5 names $2.7b to 90 name
Slide 7: Portfolio update: Oil and Gas
Portfolio update: Oil and Gas Others June 2016* Producers Traders Processors (includes Support Total Services) (S$b) Exposure 8 3 4 7 23 Of which: Loans 8 2 4 6 19 *Excludes Swiber Producers, Traders, and Processors portfolio 72% short-term loans 55% trade loans No material weakness 7
Slide 8: Portfolio update: Other commodities
Portfolio update: Other commodities June 2016 Producers Traders Combined (S$b) Exposure 4 11 15 Of which: Loans 4 8 13 Portfolio grew $3b from Dec 2015 83% short-term loans, 42% trade loans Steel and coal ~$3b; some weaknesses; already in SP budget 8
Slide 9: Portfolio update: China
Portfolio update: China NPL steady at $250m Some weaknesses in 32 SME and Steel 28 *China trade loans comprise amounts shown under customer loans and interbank assets. Based*China on country tradeofloans incorporation comprise amounts shown under customer loans and interbank assets. Based on 9 c
Slide 10: 2Q Highlights
2Q Highlights 8% income growth to a new high – Strong loan growth – Stable NIM – Record fees; led by investment banking and bancassurance 6% expense growth – Headcount down slightly 10% growth in profit before allowances 10
Slide 11: Outlook
Outlook Healthy loan pipeline Margins will come off slightly Greater China stabilizing Outlook for operating trends broadly in line with previous guidance 11
Slide 12: CEO Observations
CEO Observations August 8, 2016 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