1. DBS Group Holdings FY2001 Financial Results Presentation to Media and Analysts 2001 - A Year of Transformation February 18, 2002 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 should be considered, with or without professional advice when deciding if an investment is appropriate. DBS Bank accepts no liability whatsoever with respect to the use of this document or its contents.

2. 2 q Resilient operating profit q Building three core businesses q Improving the geographical balance q Strong asset quality and capitalisation A Year of Transformation Implementing the strategy

3. 3 Highlights of 2001 progress ` Total revenue$3,545m (2000 : $2,931m)21% Non-interest income$1,288m (2000 : $892m)45% Net interest income$2,257m (2000 : $2,039m)11% Normalized expenses (a) $1,445m (2000 : $1,246m)16% Operating profit (b) $1,804m (2000 : $1,685m)7% (a) Exclude acquisitions (b) Exclude goodwill amortisation Fee income $639m (2000 : $509m)26%

4. 4 Net interest margin1.87% (2000 : 2.02% ) NPLs 5.7% (2000 : 6.2%) Most ratios resilient under challenging economic conditions Cost-to-income (a) 49.1% (2000 : 42.5%) Non-interest income / operating income36.3% (2000 : 30.4%) Cash ROA0.9% (2000 : 1.3%) Cash ROE 10.1% (2000 : 12.9%) Loan-to-deposit 63.9% (2000 : 64.5%) Cash EPS 89 cents (2000 : 113 cents) (a) Exclude goodwill amortisation

5. 5 (S$ million) Growth in operating profit offset by provisions Net interest income2,0392,25710.7 Fees and commissions50963925.7 Non-interest income8921,28844.5 Total revenue2,9313,54520.9 Staff costs61386641.1 Other operating expenses63387638.5 Operating expenses1,2461,74239.8 Operating profit1,6851,8047.0 Goodwill amortisation-131NM Provisions54379606.2 Net profit attributable to members1,389999(28.1) Cash net profit attributable to members1,3891,131(18.6) 2000 2001% Change

6. 6 Other operating expenses15829184.022628.9 Operating expenses 31152367.847011.2 Operating profit40845010.3574(21.6) Goodwill amortisation-68NM646.7 Provisions1687438.2246(64.6) Net profit attributable to members347169(51.4)201(16.1) Cash net profit attributable to members 347237(31.9)265(10.6) Fees and commissions11721483.217423.0 Positive trends in interest income and fee income (S$ million) DBS 4Q00 DBS 4Q01 % Change DBS 3Q01 % Change Net interest income48070747.358820.2 Non-interest income23926611.1456(41.7) Total revenue71997335.21,044(6.8) Staff costs15323251.1244(5.2)

7. 7 DBS half on half operating profit up 36.6% Net interest income Fees and commissions Non-interest income Total revenue Staff costs Other operating expenses Operating expenses Operating profit Goodwill amortisation Provisions Net profit attributable to members Cash net profit attributable to members (S$ million) 962 251 567 1,529 389 360 749 780 - 47 630 1H01 2H01 (%) Change 1,295 388 721 2,017 476 952 1,065 131 332 370 501 34.7 54.9 27.2 31.9 22.1 32.4 27.1 36.6 NM 606.0 (41.3) (20.4)

8. 8 (S$ million)Net interest income Net interest margin (gross basis) Interest margins stabilise in second half 2,039 2,257 2000 2001 2.02% 1.87%

9. 9 Strong fee income growth Trade finance Deposit-related Credit card Loan-related Investment banking Stockbroking Fund management Others Total Fee-to-income ratio (%) (S$ million) 2000 2001 % Change 75 60 33 51 98 77 62 52 509 17.3 110 94 82 81 78 73 72 50 639 18.0 45.8 55.0 147.0 59.0 (20.0) (5.9) 16.3 (3.4) 25.7

10. 10 Expense growth on target DBSH (excluding DHB and DBSV) (a) Staff costs Occupancy expenses Technology-related expenses Professional and consultancy fees Others Total (excluding DHB and DBSV) DHB DBSV Restructuring costs Total Cost-to-income ratio (%) (S$ million) 2000 2001 % Change 613 147 132 73 280 1,246 - 1,246 42.5 734 172 180 49 311 1,445 218 38 40 1,742 49.1 19.7 16.3 36.0 (33.1) 11.0 16.0 NM 39.8 (a) Dao Heng Bank (“DHB”), DBS Vickers (“DBSV”)

11. 11 Managing our costs and investments IT-related Expenses Staff Costs Professional & Consulting Total Operating Expenses (excl. DHB & DBSV) 7% 53% 11% 1st Half 2001 2nd Half 2001 (S$ million)

12. 12 A Year of Transformation Implementing the strategy q Resilient operating profit q Building three core businesses q Improving the geographical balance q Strong asset quality and capitalisation

13. 13 Building three core businesses Investment Banking 883 Consumer Banking 1,528 Treasury 372 Central Operations 148 Operating Revenue 2000 (S$ million) Investment Banking 852 Consumer Banking 1,983 Treasury 561 Central Operations 149 Operating Revenue 2001 Total Operating Revenue S$2,931 million Total Operating Revenue S$3,545 million 52% 30% 13% 5% 56% 24% 16% 4%

14. 14 Consumer Banking highlight - Credit cards Singapore Cards in issue (‘000) Receivables outstanding (S$ million) Market position Hong Kong Cards in issue (‘000) Receivables outstanding (S$ million) Market position 359 326 #3 2000 2001 % Change 850 1,300 #3 450 424 #2 25 30 00-00- NM

15. 15 Consumer Banking highlight - Wealth management Sales Volume 2H991H002H00 (a) Treasury investment products include Growth and equity-linked notes (b) Unit trusts include Horizon, Ei8ht, Up! and other DBSAM programmes 1H01 314 573 544 795 2H01 1,127 (S$ million) Unit trusts (b) Insurance / asset plan Treasury investment products (a)

16. 16 Bancassurance alliance with CGNU extended to Hong Kong q 10 year Bancassurance alliance with CGNU for life and general insurance q Sale of DBS HK’s insurance subsidiaries, DBS Kwong On Insurance and Dao Heng Assurance, to CGNU q Total proceeds of S$112 million of which: – S$71 million return of book value of subsidiaries – S$30 million book gain on subsidiaries – S$11 million upfront advanced payment for bancassurance q Accelerates revenue growth in DBS HK’s wealth management business q Expands DBS sales channels in Hong Kong with the establishment of a specialist sales force dedicated to insurance and wealth management products q Provides DBS with a dedicated bancassurance product provider without equity investment q DBS retains ownership of customers and concentrates on distribution, leaving product manufacturing to CGNU q Allows DBS to exit the Hong Kong insurance underwriting business Transaction HighlightsStrategic Rationale

17. 17 Extending Investment Banking capabilities Equity capital markets8.9-83% Debt capital markets32.236% Syndicated loans13.375% Mergers & acquisitions7.67% Fee income 2001 (S$ million) % Change from 2000

18. 18 Treasury highlight - FX & securities activities (S$ million) 20002001 % Change Net gains on - Foreign exchange - Securities and derivatives - Singapore government securities 119 23 33 230 94 80 93.1 308.7 142.5

19. 19 A Year of Transformation Implementing the strategy q Resilient operating profit q Building three core businesses q Improving the geographical balance q Strong asset quality and capitalisation

20. 20 Improving the geographical balance Singapore 80.8% Rest of the World 4.5% Hong Kong 32.5% Total Assets S$151.3 billion Assets 2001 Regional 5 Countries 3.4% Singapore 59.6% Rest of the World 5.6% Hong Kong 9.2% Assets 2000 Total Assets S$111.2 billion Regional 5 Countries 4.4%

21. 21 Dao Heng’s top line improving Net interest income15017114.0 Fees and commissions515710.8 Non-interest income7564(14.6) Total revenue2252354.5 Staff costs56572.0 Other operating expenses (a) 507446.6 Operating expenses10613122.9 Operating profit118104(12.2) Provisions24(2)NM Net profit after tax8411436.4 (S$ million) DHB 3Q01 DHB 4Q01 % Change (a) Restructuring cost of S$19 million included

22. 22 DBS Kwong On Bank’s operating profit growing (S$ million) DKOB 2000 DKOB 2001 % Change (a) Restructuring cost of S$4 million included Net interest income18422321.2 Fees and commissions193268.5 Non-interest income434913.9 Total revenue22627119.8 Staff costs799620.3 Other operating expenses (a) 497350.1 Operating expenses12816931.6 Operating profit981034.4 Provisions0.267NM Net profit after tax 8428(67.4)

23. 23 DBS Thai Danu turns S$7.1m net profit (S$ million) DTDB 2000 % Change DTDB 2001 Net interest income769018.6 Fees and commissions131521.8 Other income1616(2.5) Non-interest income29318.0 Total revenue10512115.8 Operating expenses (a) 8986(2.6) Operating profit1635118.2 Non-operating expenses119(21.5) Provisions2318.9(18.2) Net profit after tax(529)7.1NM (a) Standalone statement for DBS Thai Danu

24. 24 A Year of Transformation Implementing the strategy q Resilient operating profit q Building three core businesses q Improving the geographical balance q Strong asset quality and capitalisation

25. 25 Asset quality improving with further decline in NPLs to 5.7% Dao Heng Bank DBS Thai Danu Bank Regional 5 Countries Others Singapore NBk NPLs / NBk Loans (%) 5.7% 1,112 3,907 7,086 8,1218,149 7,666 4,411 4,834 4,512 Dec 97 Jun 98 Dec 98 Jun 99 Dec 99 Jun 00 Dec 00 Jun 01 Dec 01 (S$ million) 97

26. 26 Provision coverage improved from 52% to 60% General Provisions (GP) Specific Provisions (SP) SP+GP / NPLs (SEC) (%) SP+GP / Unsec NPLs (%) SP+GP / NPLs (%) 980 1,894 3,147 3,852 4,286 3,978 2,286 2,643 2,719 Dec 97Jun 98Dec 98 Jun 99 Dec 99 Jun 00 Dec 00Jun 01Dec 01 146.5% 164.6% 119.6% 102.7% 110.6% 118.4% 114.8% 129.9% 54.7% 51.8% 51.9% 52.6% 47.4% 44.4% 48.5% 88.1% 59.9% 55.3% 63.0% 60.8% 61.4% 142.5% 64.1% 60.2% (S$ million) Post Dao Heng consolidation

27. 27 NPLs down but migrating to doubtful and loss categories Loss Doubtful (S$ million) Substandard 8,149 7,666 4,411 4,834 4,512 NPLs / Loans (%) Post Dao Heng consolidation

28. 28 Provision charge up but disproportionately to loan growth Provisions / RWA (%) (S$ million) NPLs (%) Provisions (S$ million) 5.7% 7.6% 13.0% 11.8% Basis Point Change Per Year (%) 8 10 12 14 2 1 ~ ~

29. 29 Efficient capital management DBS Group Holdings Consolidated Capital Adequacy Ratio (%) Dec 2000 Hybrid Tier 1 Preference Shares Tier 2 Sub-debt 2001 Net Income Adjustments for Dao Heng/ Other Dec 2001 Equity Issue March May Nov 18.9 17.4 14.1 Dec 2001 Proforma for Dao Heng 2nd tranche Dividends RWA Expansion

30. 30 Maintaining dividend rate for shareholders (Cents) (%)

31. 31 A Year of Transformation Implementing the strategy q Resilient operating profit q Building three core businesses q Improving the geographical balance q Strong asset quality and capitalisation

32. 2001 - A Year of Transformation February 18, 2002 DBS Group Holdings FY2001 Financial Results Presentation to Media and Analysts