1. Title Sound Strategy Backed by Strong Capitalization November 5, 2001 THESE PRESS MATERIALS ARE NOT AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES, SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION, AND ANY PUBLIC OFFERING OF SECURITIES TO BE MADE IN THE UNITED STATES WILL BE MADE BY MEANS OF A PROSPECTUS THAT MAY BE OBTAINED FROM THE ISSUER AND THAT WILL CONTAIN DETAILED INFORMATION ABOUT THE COMPANY AND MANAGEMENT, AS WELL AS FINANCIAL STATEMENTS. "UNITED STATES" MEANS THE UNITED STATES OF AMERICA, ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATES, AND THE DISTRICT OF COLUMBIA. DBS Group Holdings

2. 2 q Top-line growth offset by conservative provisioning q Strong asset quality and provision coverage q Stabilized interest margin and interest income q Improved efficiency in expense management q Non-interest income continues to shine Ensuring strong capitalization and asset quality coverage

3. 3 Net interest income51358814.747224.6 Fees and commissions13117432.713330.8 Dividend & rental121525.028-46.4 Other income67267300.387206.2 Operating income7231,04444.472045.0 Staff costs17824436.717738.1 Operating expenses16222639.718919.4 Total expenses34047038.136628.5 Operating profit38357449.935462.0 Loan loss provisions26246NM8NM Cash net profit338265-21.6308-14.0 Goodwill064NM0NM Net profit 338201-40.5308-34.8 Financial Indicators (%) Net interest margin2.051.7801.714.1 Cost-to-income ratio47.045.0-4.350.811.4 Operating profit up 49.9% QoQ (S$ million) DBS 3Q00 DBS 3Q01 % Change DBS 2Q01 % Change

4. 4 Dao Heng disproportionately contributed to top line growth (S$ million) DBS 3Q01 DHB 3Q01 DBS excl DHB DBS 2Q01 % Change Net interest income588150438472-7.1 Fees and commissions17451123133-7.6 Dividend & rental1511428-50.0 Other income2672224587180.6 Operating income1,04422482072013.8 Staff costs244561881776.8 Operating expenses22650176189-7.4 Total expenses47010636436657.4 Operating profit57411845635428.8 Loan loss provisions246242228NM Cash profits26560205308-33.4 Goodwill640640NM Net profit 20160141308-54.2

5. 5 Original Estimate: HK$540 million Revenue : HK$275 million Cost: HK$265 million New: HK$750 million Revenue : HK$450 million Cost: HK$300 million Dao Heng synergy targets raised 39%

6. 6 q Top-line growth offset by conservative provisioning q Strong asset quality and provision coverage q Stabilized interest margin and interest income q Non-interest income continues to shine q Improved efficiency in expense management Ensuring strong capitalization and asset quality coverage

7. 7 Prudent provisioning DBS Bank -Loans -Equities -Others Dao Heng Bank DBS Kwong On Bank DBS Thai Danu Bank (DTDB) DBS China Square Others Specific provisions General provisions Total DBSH Group provisions (S$ million) 9M009M01 % Change 25 20 4 - 19 22 16 82 (44) 38 263 132 123 8 24 13 12 16 21 349 (58) 292 947.9 554.7 2,653.1 NM NM (34.4) (26.7) 27.0 325.8 28.3 678.5

8. 8 A significant portion of 3Q provision is driven by September 11 attacks Total 3Q provision exercise -Loan related provision -Mark-to-market provision for marketable securities (S$ million) 246 146 100 Out of the S$100 million mark-to-market provision expense, S$48 million was written-back after market recovery in October

9. 9 6.0% NPLs fell to 6.0% Dao Heng Bank DBS Thai Danu Bank 5 Regional Countries Others Singapore NBk NPL/NBk Loans (%) (S$ million) 1,112 3,907 7,085 8,1218,149 7,666 4,411 4,834 4,577 Dec 97 Jun 98 Dec 98 Jun 99 Dec 99 Jun 00 Dec 00 Jun 01 Sep 01

10. 10 71% of NPLs are graded “Substandard” 1,207 5 275 1,486 421 83 85 589 273 10 58 340 158 103 7 268 290 221266 777 903 191 1,101 7 3,251 445 881 4,577 Substandard Doubtful Loss 81% 71% 82% 1% 17% 71%10%19% Of which 9% have never been delinquent or defaulted

11. 11 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) 2,643 2,687 Provision coverage improved from 55% to 59% Dec 97 Jun 98 Dec 98 Jun 99 Dec 99 Jun 00 Dec 00 Jun 01 Sep 01 143.8% 62.9% 58.7%

12. 12 25.2% 67.3% 16.3% 38.5% 5.6% 3.8% 16.9% 59.1% 22.1% 37.7% 6.3% 5.4% Singapore Restructured / non-accrual Regional countries Restructured / non-accrual Other countries Restructured / non-accrual Total Restructured / non accrual NPLs under SEC reporting Non-restructured NPLs / total loans 41% of NPLs restructured Sep 00Jun 01 32.5% 66.0% 18.2% 41.2% 5.5% 3.4% Sep 01

13. 13 q Top-line growth offset by conservative provisioning q Strong asset quality and provision coverage q Stabilized interest margin and interest income q Improved efficiency in expense management q Non-interest income continues to shine Ensuring strong capitalization and asset quality coverage

14. 14 Margins stabilized at 1.78% in 3Q01 (S$ million) 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% 1,176* 3Q01 1.78% * Semi-annualised earnings derived from quarterly performance.

15. 15 q Top-line growth offset by conservative provisioning q Strong asset quality and provision coverage q Stabilized interest margin and interest income q Improved efficiency in expense management q Non-interest income continues to shine Ensuring strong capitalization and asset quality coverage

16. 16 9M009M01 % Change On track with target growth rate of YoY 17% expense growth DBSH Group (excluding DHG) Staff costs Occupancy expenses Technology-related expenses Professional and consultancy fees Others Non Dao Heng restructuring costs Total (excluding Dao Heng) Dao Heng Total Cost-to-income ratio (%) (S$ million) 460 110 99 54 211 934 - 934 - 934 42.2 567 120 121 44 250 1,102 11 1,113 106 1,219 47.4 23.2 9.2 21.9 (18.6) 18.5 17.9 NM 19.1 NM 30.5

17. 17 Set to achieve 17% expense growth target by end-2001 106 364* 366 382 0 100 200 300 400 500 1Q20012Q20013Q2001 17 19 26 0 10 20 30 1H20013Q2001 FY2001 Target 470 (S$ million) (%) Cost containment program is producing results - Operating expenses (excluding Dao Heng) have been declining steadily quarter-on-quarter Year-on-year expense growth expected to meet management target * Includes S$11mn restructuring charge

18. 18 % of txns processed ‘Straight Through u Implementation of CRM & Interactive Voice Recognition will bring Contact Centre STP rates close to Global bench marks u IDEAL & BBS-2000 Enhancements, will drive the Remittance Operations STP rates up to approximately 45-50% u Cheque Truncation Scheme implementation in 2Q-02 along with other initiatives will move the Clearing Operations STP rates closer to the 100% Mark STP rates leap from 14% to 89% Benchmark: Operations Council Remittance Operations % Transactions processed Straight Through Bench MarkDec 00Mar 01Sep 01 Clearing Operations Bench MarkDec 00Mar 01Sep 01 Benchmark: Operations Council Assumes full service IVR capability Contact Centre % Calls handled by IVR Bench MarkDec 00Mar 01Sep 01 % Transactions processed Straight Through Bench mark: Int. research Increasing straight-through levels improve productivity

19. 19 Clearing Operations - Inward Cheques Remittance Operations-Outward TTs Trade Operations - Collections Remittance Operations - Cashiers Orders BudgetYTD (Avg) Budget (Avg) YTD (Avg) Budget (Avg) YTD (Avg) Budget (Avg) (Index) Unit costs are low

20. 20 q Clearing operations:5.25 Sigma q Account services:5.00 Sigma q Remittance operations:4.25 Sigma q Clearing & Remittance Operations ISO- 9000 Certified Large Productivity Gains from Centralisation & Re-engineering Remittance Operations Transactions / FTE (Index) Clearing Operations Contact Centre Transactions / FTE (Index) Process Quality Transaction / FTE (Index) Processing & Servicing rolled-up Dec 00Mar 01Sep 01 Dec 00Mar 01Sep 01 Transactions / FTE (Index) Dec 00Mar 01Sep 01 Processing productivity is improving

21. 21 q Top-line growth offset by conservative provisioning q Strong asset quality and provision coverage q Stabilized interest margin and interest income q Improved efficiency in expense management q Non-interest income continues to shine Ensuring strong capitalisation and asset quality coverage

22. 22 Loan-related Deposit-related Trade-related Investment Banking Credit Card Fund Management Stockbroking Others Total Fee-to-income ratio (%) Strong fee income despite stockbroking liberalization and weak markets (S$ million) 9M009M01 % Change 37 42 55 77 25 52 65 39 392 17.7 56 72 71 54 51 50 31 40 425 16.5 52.5 70.6 30.3 (29.7) 102.8 (3.9) (52.3) 1.3 8.5

23. 23 Other income: FX & securities trading doubled Net gains on treasury activities -foreign exchange -trading securities and derivatives Net gains on sale of government securities and equities Net gains on disposal of investment securities Net gains on disposal of fixed assets Others Total Non-interest income to operating income ratio (%) (S$ million) 9M009M01 % Change 86 39 25 27 4 25 206 29.5 141 158 58 135 24 26 542 39.7 64.1 306.1 130.5 401.3 533.5 4.4 163.3

24. 24 Singapore T&M DEaR q Singapore Treasury and Markets have expanded earnings while maintaining DEaR levels Hong Kong DEaR q Hong Kong has benefited from a significant decline in DEaR Significant growth in Treasury & Markets business with consistent risk profile

25. 25 q Top-line growth offset by conservative provisioning q Strong asset quality and provision coverage q Stabilized interest margin and interest income q Improved efficiency in expense management q Non-interest income continues to shine Ensuring strong capitalization and asset quality coverage

26. Title Sound Strategy Backed by Strong Capitalization Presentation to Media and Analysts November 5, 2001 THESE MATERIALS ARE NOT AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES, SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION, AND ANY PUBLIC OFFERING OF SECURITIES TO BE MADE IN THE UNITED STATES WILL BE MADE BY MEANS OF A PROSPECTUS THAT MAY BE OBTAINED FROM THE ISSUER AND THAT WILL CONTAIN DETAILED INFORMATION ABOUT THE COMPANY AND MANAGEMENT, AS WELL AS FINANCIAL STATEMENTS. "UNITED STATES" MEANS THE UNITED STATES OF AMERICA, ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATES, AND THE DISTRICT OF COLUMBIA. DBS Group Holdings