2. Primed For Growth, Well-Positioned Against Downside Risks FY2000 Results Briefing March 5, 2001

3. 2 S. DhanabalanChairman Philippe PaillartChief Executive Officer Jackson TaiChief Operating Officer Kee Choe NgVice Chairman Frank WongSenior Managing Director Panelists Also available for questions Chong Kie CheongFinance Director Ong Siew MooiHead, Group Finance Lim Lay HongFinancial Reporting Tony RazaInvestor Relations DBS Corporate Office

4. 3 Primed for growth, well-positioned against downside risks uProgress in our financial performance uSignificant turnaround in asset quality uMigrating toward optimal capital structure uMaintaining a disciplined expansion plan uProtected on the downside, ready for a breakout

5. 4 (S$ million) 19992000Change (%) Net Profits increased by 30% Net interest income2,0352,0390.2 Fee and commission income42350820.2 Dividends and rental income6211585.3 Other income509268(47.3) Income before operating expenses3,0292,931(3.2) Excluding exceptionals2,8542,8810.9 Operating expenses1,0651,24617.0 Operating profit1,9641,685(14.2) Excluding exceptionals1,7901,636(8.6) Provisions(1,064)(54)(94.9) Associated companies14043(69.3) Taxes(379)(315)(16.9) Minority interest(410)(29)(92.9) NPAM1,0721,38929.6 Excluding exceptionals8971,35150.5

6. 5 Core profits up 51% Excluding exceptionals, growth was 50.5% (S$ million) 1,072 1,389

7. 6 Net interest income and margins were maintained (S$ million) u Excluding the funding costs for BPI, interest margins for 2000 would have been 2.09% Net interest income 1,002 1,430 2,035 2,039 0 500 1000 1500 2000 2500 1997199819992000 2.02 1.77 1.73 1.5 2.0 2.5 (%) Net interest margin (gross)

8. 7 Fee income rose 20% Fee to Income Ratio (%) 14.614.017.3 Proforma for FY00 the Vickers merger raises DBS’s fee to income ratio to 21.6% Investment banking428598 Stockbroking4810277 Trade-related516375 Fund management102062 Deposit-related203360 Loan-related293851 Credit card222533 Guarantees272826 Others292926 Total fee income274423508 (S$ million) 199819992000

9. 8 Other Income: Treasury FX improved 32%

10. 9 Operating costs increased within budget Excluding the variance from DKOB, which was consolidated from May 1999, the expense increase would have been 12% Staff costs529.3613.215.9 Occupancy expenses138.5147.46.3 Technology-related expenses108.6132.421.9 Professional & consultancy fees62.872.515.5 Others225.5280.224.2 Total1,064.71,245.717.0 Cost-to-income (%)35.242.5 (S$ million) 19992000Change (%)

11. 10 (S$ million) DBS Bank (+182m) 1999 2000 Staff costs (+17.0%) Consultancy Computerisation Advertising Others DBS Securities DBS China Square DBS Thai Danu Other subsidiaries DKOB u At the Bank level, staff costs, technology expenses and advertising expenses accounted for 58% of the increase in operating expenses Most costs tied to specific investments

12. 11 Consultants now limited to implementation of specific, technical projects 19981999200020011H99 9M00 1H01 Phone Banking Procurement DBS Securities’ Projects Customer Relationship Mgt Treasury & Mkts System E-Commerce Risk Mgt System Datawarehouse Call Centre Automation Business Intelligence Achieve Technology Procurement Cost & Profitability Mgt System Measurement Institutional Banking Group Reorganisation Re-engineering Processing & Services Process Improvement Branch Reconfiguration Customer Service POSBank, DTDB & DKOB Integration Strategy Development Retail Strategy Improving Profitability (DTDB NPL, Recapitalisation of DTDB, Sale of DBSL shares, acquisition of BPI)

13. 12 Provisions declined by S$1 billion DBS Thai Danu Bank395.312.4(382.9) 5 regional countries117.149.1(68.0) Singapore131.4(49.8)(181.2) Other countries60.218.0(42.2) Non-loan provisions34.551.917.4 Specific provisions738.581.6(656.9) General provisions(48.3)(57.4)(9.1) Total DBSH share690.224.2(666.0) Minority interests’ share373.029.4(343.6) Total group provisions1,063.253.6(1,009.6) (S$ million) 19992000Change

14. 13 Profitability surpassing pre-crisis levels u ROA has returned to pre-crisis levels u ROE has surpassed pre-crisis levels even though CAR has returned to similar levels. ROA (%) ROE (%)

15. 14 Assets are mostly from Singapore Singapore 81% Rest of World 5% Other Asia-Pacific 10% Other ASEAN 4% l Assets as of December 1999 were 81% from Singapore, 5% from Other ASEAN, 9% from Other Asia-Pacific, and 5% from the Rest of World

16. 15 Singapore 82% Rest of World 2% Other Asia-Pacific 12% Other ASEAN 4% l Revenues as of December 1999 were 86% from Singapore, 5% from Other ASEAN, 8% from Other Asia-Pacific, and 2% from the Rest of World Overseas revenues are starting to contribute more

17. 16 Balance sheet shrank due to soft loan demand and shedding of low-yielding assets Dec 97 Jun 98 Dec 98 Jun 99 Dec 99 Jun 00 Dec 00 (S$ billion) Customer loans Customer deposits L/D ratio (%)

18. 17 Decline in gross loans tapers off u Excluding the S$1.2 billion DTDB NPL sale, the loan contraction would have only been S$0.8 billion or down -1.5%(HoH) for 2H00. Jun 98 Dec 98 Jun 99 Dec 99 Jun 00 Dec 00 (S$ million) 10.4% 3.4% -4.8% -3.8% -3.7% 30.7% 4,290 13,959 2,041 (2,965) (2,220) (2,053) Change in Loans (Half on Half)

19. 18 Decline in deposits offset by other products (S$ million) Change in balance (Half on Half) (847) 314 (1,866) 526 320 347 Dec 99Jun 00Dec 00 u Other products include the Horizon, Eight, and Up programs Deposits Other products

20. 19 Primed for growth, well-positioned against downside risks uProgress in our financial performance uSignificant turnaround in asset quality uMigrating toward optimal capital structure uMaintaining a disciplined expansion plan uProtected on the downside, ready for a breakout

21. 20 Significant decline in NPLs in second half 2000 DBS Thai Danu Bank DBS Kwong On 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

22. 21 Most NPLs are classified substandard; some are still current NPLs (2000) 3,508358546 250 295 956 2,552 325 32 0500 1,000 1,5002,0002,5003,0003,5004,0004,5005,000 DTDB 3,172 4,411 80% 1,238 77% Total (ex-DTDB) Total (Incl-DTDB) 8% 12% 20% (S$ million) 3% Substandard Doubtful Loss Approx. S$0.7 bn current, or 20% of Substandard

23. 22 Provision coverage at 52% of NPLs or 61% on SEC basis 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)

24. 23 NPLs much lower under SEC reporting and after adjusting for restructured loans u Under SEC reporting NPL rate drops from 7.5% to 6.8%. u Assuming restructured loans are upgraded, NPLs under SEC reporting falls to 3.7% 19992000 Singapore Non accrual loans18591403 Non-restructured1471897 Restructured388506 Regional countries Non accrual loans4,1731,784 Non-restructured3,666698 Restructured5071,087 Other countries Non accrual loans770537 Non-restructured695417 Restructured74120 Total non accrual loans6,8013,724 Total restructured loans9691,712 Restructured / non accrual14.3%46.0% NPL under SEC reporting11.6%6.8% Non-restructured NPLs / total loans10.0%3.7%

25. 24 Overseas NPLs fell by S$3 billion or 53% Malaysia 41262.2 30447.1 Indonesia 56697.9 17658.5 Thailand excluding DTDB 23449.3 4916.2 Korea 7617.4 5113.2 The Philippines 7720.1 8717.0 DTDB 3,20770.4 1,23842.7 Total regional NPLs 4,57165.3 1,90538.9 Hong Kong 85215.5 5418.7 China 12412.3 15315.9 Total 5,54741.1 2,59921.5 (S$ million)NPLsNPL (%)NPLsNPL (%) December 1999December 2000

26. 25 uProgress in our financial performance uSignificant turnaround in asset quality uMigrating toward optimal capital structure uMaintaining a disciplined expansion plan uProtected on the downside, ready for a breakout Primed for growth, well-positioned against downside risks

27. 26 Strong capital continues to provide a cushion against possible global economic slowdown (BIS)

28. 27 Capital further supported by valuation surplus (S$ million) 3,210 1,971 1,421 1,416 1,175 Properties Quoted investments Few remaining non-core assets to dispose

29. 28 Pro-active management of capital base u Raised US$1.25 billion of Tier II Capital u Divested non-core assets, generated S$1.3 billion in proceeds u Redeemed S$600 million NVPS u S$5.0 billion excess capital for growth, and contingencies u Expecting to raise S$1.4 billion through a issue of Hybrid Tier I u Migrating toward optimal capital structure 13.6 14.6 15.7 14.4 3.5 4.5 1.2 2.0 (%) 0 5 10 15 20 25 Dec-97Dec-98Dec-99Dec-00 (*) Not to scale Optimal Structure* Tier 2 Hybrid Tier 1 Tier 1 15.6 15.8 19.2 18.9 CAR (BIS)

30. 29 Increasing the returns on capital 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 1994199519961997199819992000 0 5 10 15 20 25 CAR ROE u The improvement in ROE is not a gimmick of equity reductions as the CAR is back to pre-crisis levels. u Absolute capital has been increasing substantially as well. 2,000 4,000 6,000 8,000 10,000 12,000 1994199519961997199819992000 2.00 4.00 6.00 8.00 10.00 12.00 14.00 Capital ROE 0 0 Even with excess capital, ROE has been improving

31. 30 Dividend rate hiked 80% (Cents)

32. 31 uProgress in our financial performance uSignificant turnaround in asset quality uMigrating toward optimal capital structure uMaintaining a disciplined expansion plan uProtected on the downside, ready for a breakout Primed for growth, well-positioned against downside risks

33. 32 DBS’s expansion strategy remains unchanged u DBS has a disciplined expansion strategy u Acquisition plans are not as haphazard as reported u Management moves are being carefully planned Recent Reports about DBS: u DBS increasing its stake in BPI to 40% u DBS to purchase a stake in PCI Equitable (Philippines) u DBS acquires a 20% investment in Far Eastern Bank (Taiwan) u DBS looking to purchase Korean credit card business for US$1.6bn u Standard Chartered Bank and DBS to merge u DBS to issue more Tier II capital u DBS to increase stake in Wing Lung Bank

34. 33 Building Asia’s best bank Japan and Korea Focus on ASEAN and Hong Kong We have the capital resources and commitment to achieve this goal Greater China Australia and India Southeast Asia and Hong Kong

35. 34 Progress in Hong Kong u Integrated DBS IT systems, treasury operations and product platforms u 35 Customer Contact Points: Closed unprofitable branches and opened two new branches in Central, (one of which was best performer for 2000) u Pre-provision profits up 10% to HK$450m: achieved significant deposit (15.2%) and loan (17.5%) growth u NPLs fell by 57%, to 5.6% rate (under HKMA standards) u Refining skills to eventually take on a larger market share u Issued over 40,000 credit cards since the end of December 2000, easily on track for 100,000 target in 2001 (Note: at Chase deal values, 40,000 DBS cards would have cost US$60 million, more than our entire overhead for all of DBS Kwong On Bank)

36. 35 DBS Vickers extends our cross-selling to clients — DBS Vickers Branding — Products & Services Fulfillment Regional IT/OP Platform Treasury & Markets - FX - Derivative DBS Bank - Asset Management - Financial Planning - On-line services Research Origination - Leading IPO, Debt market share - Securitisation capability Distribution - 368 remisers & dealers - 11% market share - Singapore, HK, Thailand

37. 36 uProgress in our financial performance uSignificant turnaround in asset quality uMigrating toward optimal capital structure uMaintaining a disciplined expansion plan uProtected on the downside, ready for a breakout Primed for growth, well-positioned against downside risks

38. 37 A stronger bank, better protected against downside risks u Enhanced, regionally integrated credit and risk management systems u Sharp improvement in asset quality, and ability to resolve problem loans u Much stronger management depth, implementing best global practices u Continue to offer high CAR support even as we optimise capital, improve our returns on capital u Enhancing MIS, Costing systems to provide better analysis of businesses, exposures u No longer paralyzed overseas, cleaned up problems in Thailand u Investment in IT, operations will raise service quality, lower costs

39. 38 Positioned for a breakout Consumer Banking u Ideally positioned in mass affluent wealth management with dynamic asset management programs (Horizon, Eight, Up, Moneyplus). u Regionally integrating product and channel strategies; launching new products; credit cards and mortgage applications up Treasury and Markets u Largest Singapore Dollar treasury player u FX and derivatives growing rapidly, based increasingly on sustainable customer related transactions Investment Banking u Leadership in equity capital markets will be enhanced by Vickers’ distribution and research u Leader in debt capital markets

40. 39 uProgress in our financial performance uSignificant turnaround in asset quality uMigrating toward optimal capital structure uMaintaining a disciplined expansion plan uProtected on the downside, ready for a breakout Primed for growth, well-positioned against downside risks

41. Primed For Growth, Well-Positioned Against Downside Risks FY2000 Results Briefing March 5, 2001