DBS Group Holdings1H 2002 Financial ResultsPresentation to Media and Analysts

This presentation is available at www.dbs.com

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

Delivering more disciplined financial results

Strategy intact, focus is now on execution

Better execution despite weak markets

3

YoY operating profit up 41%

Net interest income 1,321 1,295 2 962 37Fee income 403 388 4 251 61

Non-interest income 698 722 (3) 567 23Operating income 2,020 2,017 - 1,528 32

Staff costs 462 476 (3) 389 19Other operating expenses 457 516 (11) 360 27

Operating expenses 920 993 (7) 749 23Operating profit 1,100 1,024 7 779 41Goodwill 136 131 4 - nmProvisions 201 332 (40) 46 332Net profit 531 370 44 629 (16)Cash net profit (a) 668 501 33 629 6(a) Net profit before goodwill amortization

(S$ million) 1H 2002 2H 2001 % Change 1H 2001 %

Change

1st Half

20022Q 1Q

2nd Half

20014Q 3Q

1st Half

20012Q 1Q

4

(a) Excludes goodwill(b) Net profit before goodwill amortization

` Total operating income $2,020m $1,528m 32%

Non-interest income $698m $567m 23%

Net interest income $1,321m $962m 37%

Operating expenses $920m $749m 23%

Operating profit (a) $1,100m $779m 41%

Fee income $403m $251m 61%

Cash net profit (b) $668m $629m 6%

1H 2002 1H 2001Comparison of vs.

1st Half

20022Q 1Q

2nd Half

20014Q 3Q

1st Half

20012Q 1Q

5

1H 2002 1H 2001Comparison of vs.

Cash ROA (b) 0.88% 1.08%

Net interest margin 1.99% 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

NPLs 5.9% 6.2%

Loan-to-deposit 62.7% 60.6%

Cash EPS ($) (c) 0.91 1.02

Cost-to-income (a) 45.5% 49.0%

1st Half

20022Q 1Q

2nd Half

20014Q 3Q

1st Half

20012Q 1Q

6

Net interest income 1,321 1,295 2 962 37Fee income 403 388 4 251 61

Non-interest income 698 722 (3) 567 23Operating income 2,020 2,017 - 1,528 32

Staff costs 462 476 (3) 389 19Other operating expenses 457 516 (11) 360 27

Operating expenses 920 993 (7) 749 23Operating profit 1,100 1,024 7 779 41Goodwill 136 131 4 - nmProvisions 201 332 (40) 46 332Net profit 531 370 44 629 (16)Cash net profit (a) 668 501 33 629 6(a) Net profit before goodwill amortization

(S$ million) 1H 2002 2H 2001 % Change 1H2001 %

Change

HoH operating profit up 7%1st Half

20022Q 1Q

2nd Half

20014Q 3Q

1st Half

20012Q 1Q

7

Quarterly operating profit up 51%

(S$ million) 2Q 2002 1Q 2002 % Change 2Q 2001 %

Change Net interest income 651 670 (3) 472 38

Fee income 210 193 9 133 58Non-interest income 344 354 (3) 248 39Operating income 995 1,024 (3) 720 38

Operating expenses 460 459 - 366 26

Operating profit 535 565 (5) 354 51

Goodwill 69 68 1 - nmProvisions 105 96 10 9 1088

Net profit 253 278 (9) 308 (18)

Cash net profit (a) 322 346 (7) 308 5

(a) Net profit before goodwill amortization

1st Half

20022Q 1Q

2nd Half

20014Q 3Q

1st Half

20012Q 1Q1Q

8

` Total operating income $995m $1,024m 3%

Non-interest income $344m $354m 3%

Net interest income $651m $670m 3%

Operating expenses $460m $459m no change

Operating profit (a) $535m $565m 5%

(a) Excludes goodwill(b) Net profit before goodwill amortization

Fee income $210m $193m 9%

Cash net profit (b) $322m $346m 7%

2Q 2002 1Q 2002Comparison of vs.

1st Half

20022Q 1Q

2nd Half

20014Q 3Q

1st Half

20012Q 1Q1Q

9

2Q 2002 1Q 2002Comparison of vs.

Cash ROA (b) 0.84% 0.91%

Net interest margin 1.96% 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

NPLs 5.9% 5.9%

Loan-to-deposit 62.7% 60.5%

Cash EPS ($) (c) 0.88 0.94

Cost-to-income (a) 46.3% 44.8%

1st Half

20022Q 1Q

2nd Half

20014Q 3Q

1st Half

20012Q 1Q1Q

10

(S$ million)

962

1,321

9931,0461,046989

1,295

1.99%1.94%1.78%1.97%2.07%2.04%2.00%

1H 1999 2H 1999 1H 2000 2H 2000 1H 2001 2H 2001 1H 2002

Net interest incomeNet interest margin

Interest margins improving

11

Non-interest income holding well at mid 30% range

(%) Non-interest income to Operating income (a)

2429 30

36 35

1998 1999 2000 2001 1H 2002

(a) Excludes extraordinary items

12

Fee income now 20% of revenues

Trade finance 55 61 (11) 35 56

Deposit-related 54 57 (5) 43 24

Credit card 48 53 (8) 16 197

Loan-related 57 67 (15) 43 33

Investment banking 33 33 - 39 (15)

Stockbroking 83 49 68 24 251

Fund management 43 37 16 35 24

Others 30 31 (3) 16 87

Total 403 388 4 251 61

Fee-to-income ratio (%) 20 19 16

(S$ million) 1H 2002 2H 2001 % Change 1H 2001 %

Change

13

Core expenses tracking well below previous target

DBSH (exclude DHB & DBSV) (a)

Staff costs 335 339 (1) 374 (10)Occupancy expenses 74 93 (20) 73 2Technology-related expenses 83 90 (8) 83 -Revenue-related expenses 31 26 20 21 44Others (include administration and 123 133 (8) 161 (24)

advertising expenses)Total (exclude DHB & DBSV) 645 680 (5) 712 (9)

DHB 178 218 (18) - nmDBSV / DBS Securities Group 86 54 61 37 134Restructuring costs 10 40 (76) - nmTotal 920 993 (7) 749 23

Cost-to-income ratio (%) 45.5 49.2 49.0

(a) Dao Heng Bank (“DHB”), DBS Vickers (“DBSV”)

(S$ million) 1H 2002 2H 2001 % Change 1H 2001 %

Change

14

680

90

93

339

645

83

74

335

0 400 800

Managing our costs and investments with discipline

Total operating expenses

(excl. DHB & DBSV)5%

Occupancy expenses20%

Staff costs1%2H 20011H 2002(S$ million)

IT-relatedexpenses8%

15

1H 2001 2H 2001 1H 2002

Focusing on cost containment

(a) Normalized expenses excludes goodwill, restructuring costs and impact of acquisitions

Period expenses (a)(S$ million)

680712645

16

Singapore, Hong Kong are our twin hubs

Rest of the world

3.6%Hong Kong31.5%

Total assets S$152 billion

Assets 1H 2002 Regional countries

3.1%

Singapore 61.8%

Operating income1H 2002

Rest of the world

1.8%Hong Kong28.2%

Total operating income S$2,020 million

Regional countries

3.9%

Singapore 66.1%

17

Net interest income 309 321 (4)

Non-interest income 106 139 (24)

Operating income 414 459 (10)

Operating expenses 182 237 (23)

Operating profit 233 222 5

Provisions 104 22 371

Net profit before tax 132 203 (35)

Dao Heng Bank operating profit up

(S$ million) (a)DHB

1H 2002%

ChangeDHB

2H 2001

(a) Based on Singapore GAAP

18

Achieved1H 2002 2002 Target

Synergies achieved - focus now on revenue opportunities in Greater China

Key Revenue Initiatives: Launch of new funds (knowledge sharing) ALCO Liquidity Management Cross-selling opportunities (eg, T&M, Private

banking, Equipment finance, Credit cards and other existing products)

Revenue synergies

Select Cost Initiatives: Accelerated implementation of branch closures Active capacity management largely through

vacancies and attrition Back office and IT centralizationCost 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%

481684

147

15

123

11149

16%5%

28%

50%

5%

41%

4%50% 40%

19

DBS Thai Danu Bank operating profit up

Net interest income 48 45 7 46 5

Fee income 11 6 74 9 21Non-interest income 18 17 7 15 18

Operating income 66 62 7 61 8

Operating expenses 46 44 5 44 6

Operating profit 20 18 11 17 15

Non-operating expenses 4 5 (11) 4 -

Provisions 10 10 4 9 9

Net profit after tax 6 4 35 3 79

(a) Assume exchange rate of 1 baht to S$0.042. Based on Thai GAAP

(S$ million) 1H 2002 2H 2001 % Change 1H 2001 %

Change

20

Deepening DBS franchise in three core businesses(S$ million)

Investment banking

420

Consumer banking846

Treasury 375

Central operations

(113)

Operating income 1H 2001

Investment banking

345

Consumer banking1,230

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

314558

322615

938

1,717

222

180

189

235

15

0

500

1000

1500

2000

2500

2H 1999 1H 2000 2H 2000 1H 2001 2H 2001 1H 2002

314573 544

7951,127

(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

SingaporeCards in issue (‘000)Receivables outstanding

(S$ million)Market position

Hong KongCards in issue (‘000)Receivables outstanding

(S$ million)Market position

501466

#2

1H 2002 2001 2000

8501,300

#3

450424

#2

359326

#3

9141,187

#3

--

-

23

delivers impressive results in 8 months

Singapore - launched in 4Q 2001Customers (‘000)Receivables outstanding

(S$ million)Market share

85191

18%

Launch to 1H 2002 1H 2001

00

0

24

Seizing opportunities in Investment Banking

Equity capital markets 11.8 37%

Debt capital markets 5.3 7%

Syndicated loans 16.3 105%

Mergers & acquisitions 5.6 113%

(S$ million)% Change

vs 2H 2001 Fee income

1H 2002

25

Improving Treasury & Markets’ depth, geographic diversity

Hong Kong8%Singapore

89%Others

3%

Operating income 1H 2001

Hong Kong28%Singapore

70%

Others2%

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

649

2,705 2,4251,735 1,730 1,610 1,486 1,528 1,478 1,518

1,152

770 723

1,239

1,365

667 661 624 606 632 768 738

2,874

3,207

1,238 1,1911,143 1,101 1,004 995 972

815 777 744 699

552642 563605607

267

366

580

5.9%5.9%5.7%6.0%6.2%7.3%7.6%

13.0%11.8%

2.7%

Dec 97 Dec 98 Dec 99 Dec 00 Mar 01 Jun 01 Sep 01 Dec 01 Mar 02 Jun 02

Quantum of NPLs continues to decline Dao Heng BankDBS Thai Danu BankRegional 5 CountriesOthersSingaporeNBk NPLs / NBk Loans (%)

1,112

4,503

(S$ million)

7,086

8,149

4,834 4,5774,411 4,305 4,512 4,360

27

NPLs improving at major subsidiaries (a)

(S$ million)

9729951,0041,1011,1431,1911,238

27.8%28.7%29.8%

35.2%38.0%40.3%42.7%

Dec 00 Mar 01 Jun 01 Sep 01 Dec 01 Mar 02 Jun 02

(a) Based on MAS guidelines

DBS Thai DanuDBS Hong Kong

8791,011

1,0851,1501,238

494541

3.7%4.1%4.3%4.9%5.2%

7.1%8.3%

Dec 00 Mar 01 Jun 01 Sep 01 Dec 01 Mar 02 Jun 02

28

Provision coverage remains healthy

1,115

1,191

2,032

3,095

1,237 1,464 1,658 1,602

1,048 1,0311,0611,179

129.2142.5146.5129.9118.4

102.7

60.460.354.751.852.644.4

Dec 98 Dec 99 Dec 00 Jun 01 Dec 01 Jun 02

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

2,576 415

4,952

3,086 3,094 3,003

942546 921906

621

358 520 488

3,508

5.9%5.9%5.7%7.6%

13.0%

-800

200

1200

2200

3200

4200

5200

6200

7200

8200

Dec 99 Dec 00 Dec 01 Mar 02 Jun 02

Percentage of doubtful and loss NPLs stable

LossDoubtful

(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

15.7 14.4 12.28.5

12.69.2

4.55.2

5.6

4.95.2

3.5

0

4

8

12

16

20

24

Dec 99 Dec 00 Dec 01 Jun 02 Jun 02Proforma for

Dao Heng2nd tranche

Proforma Tier 1 approaching target cushion

DBS Group Holdings Consolidated Capital Adequacy Ratio(%)

17.418.919.2

17.6

14.414.1

Dec 01Proforma for

Dao Heng2nd tranche

31

Maintaining dividend rate for shareholders

914 14 14

1616 16

15

32%33%31%

22%

0

10

20

30

40

50

1999 2000 2001 1H 20020

20

40

Interim dividends Final dividendsSpecial dividends Payout rate (%)

(Cents) (%)

32

Delivering more disciplined financial results

Strategy intact, focus is now on execution

Better execution despite weak markets

33

New DBS management team

Jackson Tai : Vice Chairman & CEONg 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 93 114

18%

– Hong Kong 81 101

20%

Group head count 12,337 >14,200

13%

(a)

(a) Approximate combined head count number because Dao Heng was only consolidated starting June 29, 2001

36

Management depth for the next phaseArea of focus ExperienceManagement

Corporate OfficeS. Dhanabalan Chairman > 42 yearsJackson Tai Vice Chairman & CEO > 28 yearsNg Kee Choe Vice Chairman, DBS Bank > 35 yearsFrank Wong Chairman, DBS Hong Kong > 36 years

Policy CommitteeEric Ang Investment banking > 23 yearsChan Tak Kin Consumer banking, Hong Kong > 30 yearsChong Kie Cheong Investment banking - institutional & corporate clients > 30 yearsElsie Foh Personal banking & private banking > 30 yearsHong Tuck Kun Enterprise banking > 26 yearsSteve Ingram Information technology > 19 yearsEdmund Koh Consumer banking, Singapore > 18 yearsDavid Lau Treasury & markets > 19 yearsOon Kum Loon Finance > 28 yearsRajan Raju Processing & servicing > 12 years Seck Wai Kwong Wealth management > 20 yearsGreg Seow Securities > 25 yearsRandy Sullivan Hong Kong > 31 yearsPornsanong Tuchinda Thailand > 16 yearsWong Ban Suan Central treasury > 20 years

DBS Group Holdings1H 2002 Financial ResultsPresentation to Media and Analysts

This presentation is available at www.dbs.com

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