1 / 32

DBS Group Holdings FY2001 Financial Results Presentation to Media and Analysts

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

caia
Télécharger la présentation

DBS Group Holdings FY2001 Financial Results Presentation to Media and Analysts

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 2001 - A Year of Transformation February 18, 2002 DBS Group Holdings FY2001 Financial Results Presentation to Media and Analysts Disclaimer: The material that follows is a presentation of general background information about the Bank’s activities current at the date of thepresentation. 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. A Year of Transformation Implementing the strategy • Resilient operating profit • Building three core businesses • Improving the geographical balance • Strong asset quality and capitalisation

  3. Highlights of 2001 progress Net interest income $2,257m (2000 : $2,039m) 11% Fee income $639m (2000 : $509m) 26% Non-interest income $1,288m (2000 : $892m) 45% Total revenue $3,545m (2000 : $2,931m) 21% ` 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

  4. Cost-to-income (a) 49.1% (2000 : 42.5%) NPLs 5.7% (2000 : 6.2%) Most ratios resilient under challenging economic conditions Net interest margin 1.87% (2000 : 2.02% ) Cash ROA 0.9% (2000 : 1.3%) Cash ROE 10.1% (2000 : 12.9%) Non-interest income / operating income 36.3% (2000 : 30.4%) Loan-to-deposit 63.9% (2000 : 64.5%) Cash EPS 89 cents (2000 : 113 cents) (a) Exclude goodwill amortisation

  5. Growth in operating profit offset by provisions (S$ million) 2000 2001 % Change Net interest income 2,039 2,257 10.7 Fees and commissions 509 639 25.7 Non-interest income 892 1,288 44.5 Total revenue 2,931 3,545 20.9 Staff costs 613 866 41.1 Other operating expenses 633 876 38.5 Operating expenses 1,246 1,742 39.8 Operating profit 1,685 1,804 7.0 Goodwill amortisation - 131 NM Provisions 54 379 606.2 Net profit attributable to members 1,389 999 (28.1) Cash net profit attributable to members 1,389 1,131 (18.6)

  6. Positive trends in interest income and fee income (S$ million) DBS 4Q00 DBS 4Q01 % Change DBS 3Q01 % Change Net interest income 480 707 47.3 588 20.2 Fees and commissions 117 214 83.2 174 23.0 Non-interest income 239 266 11.1 456 (41.7) Total revenue 719 973 35.2 1,044 (6.8) Staff costs 153 232 51.1 244 (5.2) Other operating expenses 158 291 84.0 226 28.9 Operating expenses 311 523 67.8 470 11.2 Operating profit 408 450 10.3 574 (21.6) Goodwill amortisation - 68 NM 64 6.7 Provisions 16 87 438.2 246 (64.6) Net profit attributable to members 347 169 (51.4) 201 (16.1) Cash net profit attributable to members 347 237 (31.9) 265 (10.6)

  7. DBS half on half operating profit up 36.6% (S$ million) 1H01 2H01 (%) Change 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 962 251 567 1,529 389 360 749 780 - 47 630 630 1,295 388 721 2,017 476 476 952 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. Net interest income Net interest margin (gross basis) Interest margins stabilise in second half (S$ million) 2,257 2,039 2.02% 1.87% 2001 2000

  9. % Change 2000 2001 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 Strong fee income growth (S$ million) Trade finance Deposit-related Credit card Loan-related Investment banking Stockbroking Fund management Others Total Fee-to-income ratio (%)

  10. Expense growth on target (S$ million) % Change 2000 2001 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 (%) 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 NM NM 39.8 (a) Dao Heng Bank (“DHB”), DBS Vickers (“DBSV”)

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

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

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

  14. Consumer Banking highlight - Credit cards % Change 2000 2001 Singapore Cards in issue (‘000) Receivables outstanding (S$ million) Market position Hong Kong Cards in issue (‘000) Receivables outstanding (S$ million) Market position 25 30 450 424 #2 359 326 #3 NM NM 0 0 - 850 1,300 #3

  15. Consumer Banking highlight - Wealth management Treasury investment products (a) (S$ million) Insurance / asset plan Unit trusts (b) Sales Volume 1,127 795 573 544 314 2H01 1H01 2H99 1H00 2H00 (a) Treasury investment products include Growth and equity-linked notes (b) Unit trusts include Horizon, Ei8ht, Up! and other DBSAM programmes

  16. Bancassurance alliance with CGNU extended to Hong Kong Transaction Highlights Strategic Rationale • 10 year Bancassurance alliance with CGNU for life and general insurance • Sale of DBS HK’s insurance subsidiaries, DBS Kwong On Insurance and Dao Heng Assurance, to CGNU • 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 • Accelerates revenue growth in DBS HK’s wealth management business • Expands DBS sales channels in Hong Kong with the establishment of a specialist sales force dedicated to insurance and wealth management products • Provides DBS with a dedicated bancassurance product provider without equity investment • DBS retains ownership of customers and concentrates on distribution, leaving product manufacturing to CGNU • Allows DBS to exit the Hong Kong insurance underwriting business

  17. Extending Investment Banking capabilities (S$ million) Fee income 2001 % Change from 2000 Equity capital markets 8.9 -83% Debt capital markets 32.2 36% Syndicated loans 13.3 75% Mergers & acquisitions 7.6 7%

  18. Treasury highlight - FX & securities activities (S$ million) % Change 2000 2001 Net gains on - Foreign exchange - Securities and derivatives - Singapore government securities 230 94 80 93.1 308.7 142.5 119 23 33

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

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

  21. Dao Heng’s top line improving (S$ million) % Change DHB 3Q01 DHB 4Q01 Net interest income 150 171 14.0 Fees and commissions 51 57 10.8 Non-interest income 75 64 (14.6) Total revenue 225 235 4.5 Staff costs 56 57 2.0 Other operating expenses (a) 50 74 46.6 Operating expenses 106 131 22.9 Operating profit 118 104 (12.2) Provisions 24 (2) NM Net profit after tax 84 114 36.4 (a) Restructuring cost of S$19 million included

  22. DBS Kwong On Bank’s operating profit growing (S$ million) % Change DKOB 2000 DKOB 2001 Net interest income 184 223 21.2 Fees and commissions 19 32 68.5 Non-interest income 43 49 13.9 Total revenue 226 271 19.8 Staff costs 79 96 20.3 Other operating expenses (a) 49 73 50.1 Operating expenses 128 169 31.6 Operating profit 98 103 4.4 Provisions 0.2 67 NM Net profit after tax 84 28 (67.4) (a) Restructuring cost of S$4 million included

  23. DBS Thai Danu turns S$7.1m net profit (S$ million) % Change DTDB 2001 DTDB 2000 Net interest income 76 90 18.6 Fees and commissions 13 15 21.8 Other income 16 16 (2.5) Non-interest income 29 31 8.0 Total revenue 105 121 15.8 Operating expenses (a) 89 86 (2.6) Operating profit 16 35 118.2 Non-operating expenses 11 9 (21.5) Provisions 23 18.9 (18.2) Net profit after tax (529) 7.1 NM (a) Standalone statement for DBS Thai Danu

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

  25. Dao Heng Bank DBS Thai Danu Bank Regional 5 Countries Others Singapore NBk NPLs / NBk Loans (%) Asset quality improving with further decline in NPLs to 5.7% (S$ million) 8,121 8,149 7,666 7,086 4,834 4,512 4,411 3,907 5.7% 1,112 97 Dec 97 Dec 98 Dec 99 Dec 00 Jun 01 Jun 98 Jun 99 Jun 00 Dec 01

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

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

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

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

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

  31. A Year of Transformation Implementing the strategy • Resilient operating profit • Building three core businesses • Improving the geographical balance • 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

More Related