DBS Group Holdings 1H 2002 Financial Results Presentation to Media and Analysts This presentation is available at Better execution despite weak markets Disclaimer: The material that follows is a presentation of general background information about the Bank’s activities current at the date of the presentation. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These factors should be considered, with or without professional advice, when deciding if an investment is appropriate. DBS accepts no liability whatsoever with respect to the use of this document or its contents. July 22, 2002

2 q Delivering more disciplined financial results q Strategy intact, focus is now on execution Better execution despite weak markets

3 YoY operating profit up 41% Net interest income1,3211, Fee income Non-interest income698722(3)56723 Operating income2,0202,017-1,52832 Staff costs462476(3)38919 Other operating expenses457516(11)36027 Operating expenses920993(7)74923 Operating profit1,1001, Goodwill nm Provisions201332(40)46332 Net profit (16) Cash net profit (a) (a) Net profit before goodwill amortization (S$ million) 1H H 2001 % Change 1H 2001 % Change 1st Half Q1Q 2nd Half Q3Q 1st Half Q1Q

4 (a) Excludes goodwill (b) Net profit before goodwill amortization ` Total operating income$2,020m $1,528m32% Non-interest income$698m $567m23% Net interest income$1,321m $962m37% Operating expenses $920m $749m23% Operating profit (a) $1,100m $779m41% Fee income $403m $251m61% Cash net profit (b) $668m $629m6% 1H H 2001 Comparison of vs. 1st Half Q1Q 2nd Half Q3Q 1st Half Q1Q

5 1H H 2001 Comparison of vs. Cash ROA (b) 0.88%1.08% Net interest margin1.99%1.78% Cash ROE (b) 9.71%11.36% Non-interest inc. / operating inc.34.6%37.1% (a) Excludes goodwill (b) Annualized (c) Earnings per share before goodwill amortization, annualized NPLs5.9%6.2% Loan-to-deposit62.7%60.6% Cash EPS ($) (c) Cost-to-income (a) 45.5%49.0% 1st Half Q1Q 2nd Half Q3Q 1st Half Q1Q

6 Net interest income1,3211, Fee income Non-interest income698722(3)56723 Operating income2,0202,017-1,52832 Staff costs462476(3)38919 Other operating expenses457516(11)36027 Operating expenses920993(7)74923 Operating profit1,1001, Goodwill nm Provisions201332(40)46332 Net profit (16) Cash net profit (a) (a) Net profit before goodwill amortization (S$ million) 1H H 2001 % Change 1H2001 % Change HoH operating profit up 7% 1st Half Q1Q 2nd Half Q3Q 1st Half Q1Q

7 Quarterly operating profit up 51% (S$ million) 2Q 20021Q 2002 % Change 2Q 2001 % Change Net interest income651670(3)47238 Fee income Non-interest income344354(3)24839 Operating income9951,024(3)72038 Operating expenses Operating profit535565(5)35451 Goodwill69681-nm Provisions Net profit253278(9)308(18) Cash net profit (a) (7)3085 (a) Net profit before goodwill amortization 1st Half Q1Q 2nd Half Q3Q 1st Half Q1Q

8 ` Total operating income$995m $1,024m3% Non-interest income$344m $354m3% Net interest income$651m $670m3% Operating expenses $460m $459mno change Operating profit (a) $535m $565m5% (a) Excludes goodwill (b) Net profit before goodwill amortization Fee income $210m $193m9% Cash net profit (b) $322m $346m7% 2Q Q 2002 Comparison of vs. 1st Half Q1Q 2nd Half Q3Q 1st Half Q1Q

9 2Q Q 2002 Comparison of vs. Cash ROA (b) 0.84%0.91% Net interest margin1.96%2.02% Cash ROE (b) 9.22%10.12% Non-interest inc. / operating inc.34.5%34.6% (a) Excludes goodwill (b) Annualized (c) Earnings per share before goodwill amortization, annualized NPLs5.9%5.9% Loan-to-deposit62.7%60.5% Cash EPS ($) (c) Cost-to-income (a) 46.3%44.8% 1st Half Q1Q 2nd Half Q3Q 1st Half Q1Q

10 (S$ million) Net interest income Net interest margin Interest margins improving

11 Non-interest income holding well at mid 30% range (%) Non-interest income to Operating income (a) (a) Excludes extraordinary items

12 Fee income now 20% of revenues Trade finance 5561(11)3556 Deposit-related5457(5)4324 Credit card4853(8)16197 Loan-related5767(15)4333 Investment banking (15) Stockbroking Fund management Others3031(3)1687 Total Fee-to-income ratio (%) (S$ million) 1H H 2001 % Change 1H 2001 % Change

13 Core expenses tracking well below previous target DBSH (exclude DHB & DBSV) (a) Staff costs335339(1)374(10) Occupancy expenses7493(20)732 Technology-related expenses8390(8)83- Revenue-related expenses Others (include administration and (8)161(24) advertising expenses) Total (exclude DHB & DBSV)645680(5)712(9) DHB178218(18)-nm DBSV / DBS Securities Group Restructuring costs1040(76)-nm Total920993(7)74923 Cost-to-income ratio (%) (a) Dao Heng Bank (“DHB”), DBS Vickers (“DBSV”) (S$ million) 1H H 2001 % Change 1H 2001 % Change

14 Managing our costs and investments with discipline Total operating expenses (excl. DHB & DBSV) 5% Occupancy expenses 20% Staff costs 1% 2H H 2002 (S$ million) IT-related expenses 8%

15 Focusing on cost containment (a)Normalized expenses excludes goodwill, restructuring costs and impact of acquisitions Period expenses (a) (S$ million)

16 Singapore, Hong Kong are our twin hubs Rest of the world 3.6% Hong Kong 31.5% Total assets S$152 billion Assets 1H 2002 Regional countries 3.1% Singapore 61.8% Operating income 1H 2002 Rest of the world 1.8% Hong Kong 28.2% Total operating income S$2,020 million Regional countries 3.9% Singapore 66.1%

17 Net interest income309321(4) Non-interest income106139(24) Operating income414459(10) Operating expenses182237(23) Operating profit Provisions Net profit before tax132203(35) Dao Heng Bank operating profit up (S$ million) (a) DHB 1H 2002 % Change DHB 2H 2001 (a) Based on Singapore GAAP

18 Achieved 1H Target Synergies achieved - focus now on revenue opportunities in Greater China Key Revenue Initiatives: u Launch of new funds (knowledge sharing) u ALCO Liquidity Management u Cross-selling opportunities (eg, T&M, Private banking, Equipment finance, Credit cards and other existing products) Revenue synergies Select Cost Initiatives: u Accelerated implementation of branch closures u Active capacity management largely through vacancies and attrition u Back office and IT centralization Cost synergies Total synergies HK$296 m HK$450 m (a) 60% (a) 60% of synergy target is expected for 2002 of a total of HK$750 million Distribution (%) 100% % 5% 28% 50% 5% 41% 4% 50% 40%

19 DBS Thai Danu Bank operating profit up Net interest income Fee income Non-interest income Operating income Operating expenses Operating profit Non-operating expenses45(11)4- Provisions Net profit after tax (a) Assume exchange rate of 1 baht to S$ Based on Thai GAAP (S$ million) 1H H 2001 % Change 1H 2001 % Change

20 Deepening DBS franchise in three core businesses (S$ million) Investment banking 420 Consumer banking 846 Treasury 375 Central operations (113) Operating income 1H 2001 Investment banking 345 Consumer banking 1,230 Treasury 424 Central operations 20 Operating income 1H 2002 Total operating income S$1,528 million Total operating income S$2,020 million 55% 27% 25% 61% 17% 21% 1%

21 Sales Volume ,127 (S$ million) Wealth management continues to grow (a) Unit trusts include Horizon, Ei8ht, Up! and other DBSAM programmes while treasury investment products include Growth, Surf and structured notes 1,952 Unit trusts / Treasury investment products (a) Insurance / asset plan

22 Expanding credit card franchise in twin hubs Singapore Cards in issue (‘000) Receivables outstanding (S$ million) Market position Hong Kong Cards in issue (‘000) Receivables outstanding (S$ million) Market position #2 1H ,300 # # # ,187 #

23 delivers impressive results in 8 months Singapore - launched in 4Q 2001 Customers (‘000) Receivables outstanding (S$ million) Market share % Launch to 1H H

24 Seizing opportunities in Investment Banking Equity capital markets11.837% Debt capital markets5.37% Syndicated loans % Mergers & acquisitions5.6113% (S$ million) % Change vs 2H 2001 Fee income 1H 2002

25 Improving Treasury & Markets’ depth, geographic diversity Hong Kong 8% Singapore 89% Others 3% Operating income 1H 2001 Hong Kong 28% Singapore 70% Others 2% Operating income 1H 2002 Accolades  “2nd Place: Top Forex & Derivatives Bank in Singapore” - Asia Money, 2002  “Best Foreign Exchange Bank in SE Asia (Regional & Singapore)” - Global Finance Ranking, 2002  “1st Place: FX Products - Singapore” - Asia Risk, 2001  “2nd Place: Interest Rate Products - Hong Kong” - Asia Risk, 2001 (a) Excludes Dao Heng (a) Treasury revenues better diversified

26 Quantum of NPLs continues to decline Dao Heng Bank DBS Thai Danu Bank Regional 5 Countries Others Singapore NBk NPLs / NBk Loans (%) 1,112 4,503 (S$ million) 7,086 8,149 4,834 4,577 4,411 4,305 4,512 4,360

27 NPLs improving at major subsidiaries (a) (S$ million) (a) Based on MAS guidelines DBS Thai Danu DBS Hong Kong

28 Provision coverage remains healthy General Provisions (GP) Specific Provisions (SP) SP+GP / NPLs (%) SP+GP / Unsec NPLs (%) 2,286 (S$ million) 2,643 2,719 2,633 4,286 3,147

29 Percentage of doubtful and loss NPLs stable Loss Doubtful (S$ million) Substandard 8,149 4,411 4,512 NPLs / Loans (%) (61%) (8%) (32%) (80%) (12%) (8%) (68%) (12%) (20%) (69%) (11%) (20%) 4,503 (69%) (9%) (22%) 4,360

30 Jun 02 Proforma for Dao Heng 2nd tranche Proforma Tier 1 approaching target cushion DBS Group Holdings Consolidated Capital Adequacy Ratio (%) Dec 01 Proforma for Dao Heng 2nd tranche

31 Maintaining dividend rate for shareholders (Cents)(%)

32 q Delivering more disciplined financial results q Strategy intact, focus is now on execution Better execution despite weak markets

33 New DBS management team Jackson Tai : Vice Chairman & CEO Ng Kee Choe : Vice Chairman, DBS Bank Frank Wong : Chairman, DBS Hong Kong Jackson Tai Corporate Office S Dhanabalan :Chairman Ng Kee Choe Frank Wong Oon Kum Loon (CFO)  Overall  Singapore  Hong Kong  Greater China Geography Products & Services  Consumer Banking Group  Enterprise Banking  Support units  Risk Management  Credit Management  Information Technology  Processing & Servicing  Treasury & Markets  Investment Banking  DBS Vickers  Finance  Shared Services

34 Strategy intact, now focussed on execution  Build coherent Pan-Asian financial franchise, with early focus on Singapore, Hong Kong and Greater China  Leverage dominant market position and retail distribution in Singapore and Hong Kong  Differentiate with Treasury & Markets, Capital Markets, Wealth Management, Risk Management and Credit Management  Become lower cost producer through scale, integrated up-to-date information technology and straight-through processing  Intermediate regional capital flows between issuers and investors  Recalibrate investments and resources to changed market conditions

35 Focused on delivery Jun 2002 Dec 2000% change Branches –Singapore % –Hong Kong % Group head count12,337>14,20013% (a) (a) Approximate combined head count number because Dao Heng was only consolidated starting June 29, 2001

36 Management depth for the next phase Area of focus Experience Management Corporate Office S. DhanabalanChairman> 42 years Jackson TaiVice Chairman & CEO > 28 years Ng Kee ChoeVice Chairman, DBS Bank> 35 years Frank WongChairman, DBS Hong Kong> 36 years Policy Committee Eric AngInvestment banking > 23 years Chan Tak KinConsumer banking, Hong Kong> 30 years Chong Kie CheongInvestment banking - institutional & corporate clients> 30 years Elsie FohPersonal banking & private banking> 30 years Hong Tuck KunEnterprise banking> 26 years Steve IngramInformation technology> 19 years Edmund KohConsumer banking, Singapore> 18 years David LauTreasury & markets> 19 years Oon Kum LoonFinance> 28 years Rajan RajuProcessing & servicing> 12 years Seck Wai KwongWealth management> 20 years Greg Seow Securities> 25 years Randy SullivanHong Kong> 31 years Pornsanong TuchindaThailand> 16 years Wong Ban SuanCentral treasury> 20 years

DBS Group Holdings 1H 2002 Financial Results Presentation to Media and Analysts This presentation is available at Better execution despite weak markets Disclaimer: The material that follows is a presentation of general background information about the Bank’s activities current at the date of the presentation. It is information given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These factors should be considered, with or without professional advice, when deciding if an investment is appropriate. DBS accepts no liability whatsoever with respect to the use of this document or its contents. July 22, 2002