1. Completing the regional and wealth management platform July 23, 2001 First Half 2001 Results Briefing

2. 2 n Top line earnings impacted by weaker economic conditions and adverse competitive environment n Focus on other non-interest income bolsters results n Expenses peaked amidst repositioning activities n Improved asset quality and strong capital position n Completing the regional and wealth management platform Completing the regional and wealth management platform

3. 3 n Top line earnings impacted by weaker economic conditions and adverse competitive environment n Focus on other non-interest income bolsters results n Expenses peaked amidst repositioning activities n Improved asset quality and strong capital position n Completing the regional and wealth management platform Completing the regional and wealth management platform

4. 4 Net interest margin2.07%1.97%1.78% Cost-to-income ratio39.9%45.4%49.0% Return on assets1.31%1.25%1.08% Return on equity13.1%12.7%11.4% Net interest income1,046993962(8.1)(3.1) Fees & commissions260249251(3.7)0.8 Dividend & rental income427340(3.7)(45.2) Other income13912927597.6113.2 Income before operating expenses1,4881,4431,5282.75.9 Staff costs28133238938.517.2 Other operating expenses31332036014.912.4 Operating expenses59465274926.114.9 Operating profit894791779(12.9)(1.5) Specific provisions813011036.3266.7 General provisions(17)(40)(64)284.560.0 Net profit attributable to shareholders704685629(10.6)(8.2) (S$ million) 1H002H001H01 1H01 / 1H00 (%) 1H01 / 2H00 (%) Net revenue increased by 2.7%, net profit down 10.6%

5. 5 (S$ million) Modest decline in net interest income despite sharp fall in net interest margins Net interest income Net interest margin (gross basis) 2.00% 2.04% 989 1,046 2.07% 1.97% 993 1H99 2H99 1H00 2H00 1H01 962 1.78%

6. 6 Excess liquidity dampens margins, but strengthens ability to fund lending growth 1996 1997 1998 1999 2000 1H01 (%) Net Interbank Placement / Asset 1996 1997 1998 1999 2000 1H01 (%) Loan / Deposit

7. 7 (S$ million) Change in Gross Loans 10.7% 30.4% 4,373 13,791 3.7% 2,209 -4.8% (2,966) -3.8% (2,219) -3.7% (2,053) 3.5% 1,917 Jun 98 Dec 98Jun 99Dec 99Jun 00Dec 00Jun 01 Dao Heng Jun 98 Dec 98Jun 99Dec 99Jun 00Dec 00Jun 01 Outstanding Gross Loans 72,503 Loan growth has turned around

8. 8 n Top line earnings impacted by weaker economic conditions and adverse competitive environment n Focus on other non-interest income bolsters results n Expenses peaked amidst repositioning activities n Improved asset quality and strong capital position n Completing the regional and wealth management platform Completing the regional and wealth management platform

9. 9 Strong fee income despite stockbroking liberalisation and weak markets (S$ million) Investment banking425639(7.1)(30.2) Stockbroking473124(48.9)(22.6) Trade-related3837405.37.8 Fund management372535(5.4)40.0 Deposit-related23374387.015.3 Loan-related24272816.74.5 Others493642(14.3)16.3 Total fee income260249251(3.7)0.8 Fee to income ratio (%)17.517.316.4 1998 – 2000 Fee Income CAGR: 36.2% 1H002H001H01 1H01 / 1H00 (%) 1H01 / 2H00 (%)

10. 10 Other income : FX & securities trading doubled (S$ million) Foreign exchange5267112115.467.2 Gains on securities & derivatives trading55-10285.5- Gains on investment securities83316100.0- Gains on fixed assets4526550.0420.0 Other income202419(5.0)(20.8) Total 13912927597.6113.2 1H002H001H01 1H01 / 1H00 (%) 1H01 / 2H00 (%)

11. 11 Emphasis on non-interest income yields strong returns Dec 98 Dec 99 Dec 00 Jun 00 (%) Non-interest income to Operating Income * * Excluding gains on disposal of non-core assets Jun 01

12. 12 (S$ million) Sales Volume 314 558 322 2H991H002H00 u Investment products include Horizon, Ei8ht, Up and other DBSAM programs Investment products Record growth in wealth management products 1H01 611 Insurance 15 222 180 573 544 791

13. 13 (S$ b) S$ Current accounts5.65.86.00.5 S$ Autosave deposits5.55.45.70.2 S$ Savings deposits30.531.031.10.6 S$ Fixed deposits14.313.212.3(2.0) ACU Fixed deposits9.411.112.02.6 DBS Kwong On5.15.76.31.2 DBS Thai Danu3.32.93.1(0.2) Others*6.75.613.77.0 Sub-total80.480.790.39.9 Dao Heng--24.624.6 Total80.480.7114.934.5 Market share of S$ deposits31.8%32.3%32.8% Dec 2000 Jun 2000 Jun 2001 YoY Difference Customer Deposits Deposit base provides platform for cross selling wealth management products * * Include a once off short-term deposit of $5.0b 114.9

14. 14 n Top line earnings impacted by weaker economic conditions and adverse competitive environment n Focus on other non-interest income bolsters results n Expenses peaked amidst repositioning activities n Improved asset quality and strong capital position n Completing the regional and wealth management platform Completing the regional and wealth management platform

15. 15 (S$ million) Staff costs28133238938.517.2 Occupancy expenses 7375775.52.7 Technology-related expenses63698738.126.1 Professional & consultancy fees383533(13.2)(5.7) Others13914116317.315.6 Total59465274926.114.9 1H002H001H01 1H01 / 1H00 (%) 1H01 / 2H00 (%) Operating costs increased 26% due to timing and non-recurring items

16. 16 (S$ million) 1H2000 1H2001 Computerisation Others Staff costs Advertising (+26.1%) Cost-to-Income Ratio: 39.90%49.01% Cost-to-Asset Ratio (a) :1.10%1.30% Focused investment in people, technology and products (a) Annualized without Dao Heng Bank

17. 17 n Phone Banking Technology Procurement Most significant investments completed between January 1, 2000 and June 30, 2001 Consultants now limited to implementation of specific, technical projects Use of consultants winding down n DBS Securities’ Projects n Customer Relationship Mgt n Treasury & Mkts System n E-Commerce/Payments n Risk Mgt System n Datawarehouse n Call Centre Automation 19981999200020011H99 9M00 1H01 n Branch Reconfiguration Customer Service n POSBank, DTDB & DKOB Integration Strategy Development n Retail Strategy n Improving Profitability (DTDB NPL, Recapitalisation of DTDB, Sale of DBSL shares, acquisition of BPI) n Institutional Banking Group Reorganisation Re-engineering Processing & Services n Process Improvement n Procurement n E-banking initiative n Cost & Profitability Mgt System Measurement

18. 18 Cost management measures initiated to contain increase to 2000 growth rate Improve processes for greater efficiency Reduce focus on non-performing businesses Defer low revenue yielding projects Performance enhancement program to optimise efficiency

19. 19 Low cost/income ratio by international standards (a) Based on Dec 2000 cost/income ratios 1H2001 Cost/Income for International Peers (a) (%) 49.2

20. 20 n Top line earnings impacted by weaker economic conditions and adverse competitive environment n Focus on other non-interest income bolsters results n Expenses peaked amidst repositioning activities n Improved asset quality and strong capital position n Completing the regional and wealth management platform Completing the regional and wealth management platform

21. 21 Dao Heng Bank DBS Thai Danu Bank 5 Regional Countries Others Singapore NBk NPL/NBk Loans (%) (S$ million) 1,112 3,907 7,085 8,121 8,149 7,666 4,411 4,834 6.2% Asset quality continues to improve

22. 22 73% of NPLs are graded “Substandard” 1,610 624 323 4,834 85% 72% 73% 1,143 815 82% Total 9% 18% 17% (S$’M ) 1% 318 Substandard Doubtful Loss

23. 23 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 (S$ million) Cumulative provisions covered 146.5% of unsecured NPLs and 54.7% of total NPLs 2,643

24. 24 Further diversification post acquisition of Dao Heng Bank 55% Singapore 9% Others 36% Hong Kong Total Assets: S$156 bn DBS + Dao Heng 75% Singapore 12% Others 13% Hong Kong Total Assets: S$116 bn DBS (June 2001)

25. 25 Efficient capital management (a)Includes goodwill, minority interest and capital required against asset base. DBS Group Holdings Consolidated Capital Adequacy (a ) (b) (%) Dec 2000 Hybrid Tier 1 Preference Shares Tier 2 Sub-debt 1H01 Net Income Adjustments for Dao Heng/ Others Jun 2001 6.5%

26. 26 DBS will maintain a healthy buffer above the regulatory Tier I requirement of 8% DBS capital position post Dao Heng * Source : Annual reports of respective banks DBS (%) HSBC CitiGroup StanChart BNP ANZ Westpac Fortis Dresdner

27. 27 n Top line earnings impacted by weaker economic conditions and adverse competitive environment n Focus on other non-interest income bolsters results n Expenses peaked amidst repositioning activities n Improved asset quality and strong capital position n Completing the regional and wealth management platform Completing the regional and wealth management platform

28. 28 Putting the strategy together – positioning for the future Optimal Organisation n Business units reorganised n Built seasoned management team n Enhanced training n Redesigned incentive systems Wholesale Banking: Capital Markets, Advisory, Treasury, FX and Trade Financing Management Wealth Brokerage Services Bancassurance Consumer Banking DBS / OUB Vickers Ballas Frank Russell TD Waterhouse CGNU Dao Heng Kwong On Thai Danu BPI n Aligned internal practices to global standards n Strengthened risk management and credit approval policies n Prudent management of off-balance sheet exposures and liquidity, forex, interest rate and investment risks Leading IT Capabilities n On-line, real-time systems n Data warehouse application with data mining capabilities (CRM) n E-commerce infrastructure n E-payment gateway n Comprehensive, complementary channel mix n Reconfigured branches n Integrated on-line services n Usage of sophisticated capital instruments n Maximise non- dilutive capital n Sale of non-core assets n Scale / Scope n Regionalisation / diversification n Growth / market share n Pricing flexibility Policies, Processes and Systems Balanced Channel Mix Efficient Capital Structure n Infrastructure building and reorganisation substantially completed n Focused areas

29. 29 Infrastru cture Geography Products Significant infrastructure investment to create world class back office and STP initiatives n Vickers Ballas n TD Waterhouse n Frank Russell n CGNU n Dao Heng / Kwong On n OUB Strategic roadmap

30. 30 n Establish critical mass, presence and scale in twin pillars (Singapore, Hong Kong) n Selectively strengthen presence in certain markets (e.g. Thailand, Malaysia after OUB) n Monitor increased Greater China presence post WTO liberalization n No plans for Australia, North Asia (Korea and Japan), but carefully watching opportunities Infr astr uct ure Geography Products Strategic roadmap: Geography

31. 31 n As of first close on July 20, DBS’ effective ownership in Dao Heng Bank is 71% n 98% of Dao Heng shareholders have tendered their shares n Dao Heng Bank governance and management in place n Harmonization objectives and implementation plan defined n Harmonization infrastructure up and running n Key milestones defined with good progress to date Dao Heng Bank became a DBS subsidiary on June 29, 2001 Dao Heng harmonization ahead of schedule (a) Assumes 100% of outstanding options exercised

32. 32 n Leverage infrastructure across business units n Create Regional Processing Centres for appropriate processes n Centralize remaining branch back-office processes n Pursue selected out-sourcing, in-sourcing and co- sourcing n Focus on quality (ISO certification of process factories, 6 sigma initiative) Continue trend of significant unit cost reductions and increase of straight-through processing rates Infr astr uct ure Geography Products Strategic roadmap: Infrastructure

33. 33 n Retail brokerage – Vickers Ballas, TD Waterhouse n Wealth management – leverage distribution for best-in-breed products, capitalize on MPF / CPF deregulation and excess liquidity n Bancassurance – provide insurance related savings products. Life and general insurance partnership with CGNU n Unsecured consumer lending n Credit cards n SME lending n Treasury / FX n Trade finance n Corporate finance n Leveraged finance Asset Accumulation Enterprise and Consumer Lending Infr astr uct ure Geography Products Corporate & Investment Banking Strategic roadmap: Products

34. 34 Bancassurance alliance accelerates wealth management business n Sale of 100% of ICS to CGNU n 10-year exclusive bancassurance strategic alliance for life and general insurance n Total proceeds to DBS of S$446 million of which: uS$395 million as payment for ICS and the bancassurance alliance uS$51 million special dividend from ICS n DBS to receive additional payments of up to S$20 million on meeting performance targets n DBS will record a net initial gain of S$139 million Transaction Highlights n Accelerates revenue growth in DBS’ wealth management business n Expands DBS’ sales channels with the establishment of a specialist sales force dedicated to insurance, wealth management products n Provides DBS with a dedicated bancassurance product provider without equity investment n DBS retains ownership of customers, concentrates on distribution, leaving product manufacturing to CGNU n Allows DBS to rationalize ownership in ICS and continue policy of monetizing assets n Allows DBS to strengthen capital position by $139 million Strategic Rationale DBS has concluded a bancassurance alliance with CGNU

35. 35 Only bank whose non-core asset disposals largely completed n Singapore Petroleum Company n DBS Land n DBS Tampines Centre n POSBank Centre n DBS Securities Building n Insurance Corporation of Singapore (ICS) What we have done n 4 listed companies (Keppel Capital, NatSteel, Intraco, CWT) What needs to be done Insignificant n Focusing on core banking and financial businesses n Divested non-core assets ahead of MAS guidelines

36. 36 Significant Events Affecting Results and Outlook

37. 37 n Top line earnings impacted by weaker economic conditions and adverse competitive environment n Focus on other non-interest income bolsters results n Expenses peaked amidst repositioning activities n Improved asset quality and strong capital position n Completing the regional and wealth management platform Completing the regional and wealth management platform

38. Completing the regional and wealth management platform July 23, 2001 First Half 2001 Results Briefing