Consolidation and Growth
DBS?Investment Banking Group (IBG) continued to maintain a major investment banking presence in Singapore and extend the DBS franchise further in the region, despite difficult market conditions. It sustained its market leadership in Debt, Equity, Syndicated Finance and Mergers & Acquisitions in Singapore, the most exciting market in the region. IBG continued to make headway in building a regional platform and growing the franchise to achieve DBS?vision to be the Best Bank in Asia.

The years successes and achievements were underpinned by a relentless focus on the client. IBGs services go beyond just meeting clients?requirements. The Group anticipates strategic opportunities for clients and helps them capitalise on these opportunities with innovative financing solutions. This often demands active integration of the strengths and capabilities of DBS?Investment Banking and Treasury functions and an intimate understanding of the Asian Markets.

Triumphs against the Odds
For the third consecutive year, Debt Capital Markets raised the largest volume of capital in the Singapore Debt Markets for its clients. IBG was involved in 15 deals aggregating S$4,377.39 million - more than double the amount of capital raised by its closest competitor.

With DBS?unparalleled expertise, it is not surprising that Debt Capital Markets managed the lions share of 2001s landmark transactions. Noteworthy deals include SingTels S$1 billion inaugural bond issue, which established the Singapore Dollar bond market as a viable alternative to overseas markets for large funding, Land Transport Authoritys S$500 million bond issue - the first bond issue with the longest tenor of 15 years, and Tincel Limiteds S$984.5 million bond issue - the largest asset securitisation in Singapore.

In a major drive to develop the local bond market, DBS organised the first-ever Singapore Dollar Bond Conference? This brought together over 300 key investors and issuers from the region and generated practical insights into the problems and opportunities in the market and the trends for the future.

The Banks performance won awards from leading financial publications. FinanceAsia voted DBS the Best Singapore Dollar Bond House?and EuroWeek Magazine named it the Best Lead Manager in Singapore Dollar Bonds?

2001 was a challenging year for equity, marked by weak economic conditions and market slowdown. DBS?Equity Capital Markets triumphed against the odds to raise the largest amount of Initial Public Offerings (IPO) funds for its clients in Singapore.

Through 12 IPOs, the Group captured 59% or S$285.8 million of the overall volume of IPO funds tapped in the domestic market.

One of the Groups defining deals was Singapores largest IPO Issue in 2001 - the China Aviation Oil (Singapore) Corporation Ltd IPO which raised S$81 million. The public offer tranche was oversubscribed seven times.

In the secondary markets, DBS managed three Rights Issues and four Private Placements, raising S$91 million and S$30 million respectively.

One of the strongest equity capital markets teams in Singapore was created by the amalgamation of the Equity Capital Markets team with the Corporate Finance team from Vickers Ballas. Vickers Ballas was the second most active player in the Singapore equity market in 2001.

A Strategic Financial Partner
Syndicated Finance, with its excellent performance, became the leading arranger of Singapore Dollar Syndicated Loans in 2001. It achieved top tier ranking - amongst the first three - in the South Korea Loan Arranger League Tables, and in Asia it ranked amongst the top ten.

The Group mandated a total of 28 deals - solely and jointly - raising US$4 billion. In the largest Singapore Dollar deal of 2001, DBS brought Singapore Press Holdings?Times Properties to the syndicated loan market in a S$782 million deal which set benchmark pricing.

The Groups success in the region underscores its foresight to establish a Regional Syndications Centre in Hong Kong. This second hub-ofexcellence significantly boosted DBS?origination and distribution coverage in the region. Syndication specialists operating on the ground can cater to more specific needs of borrowers raising funds in North Asia. The increase in regional syndication resources has resulted in deals for clients in major blue chip companies in Hong Kong such as the Kerry Group and in the manufacturing sector such as Gold Peak Industries.

Central to DBS?Investment Banking businesses are our corporate and institutional relationships. Client coverage professionals from the Advisory Banking Group and the Financial Institutions Group (FIG) remain dedicated to developing an intuitive understanding of clients?businesses and requirements, and meeting their financial requirements with a wide spectrum of innovative products and services. The two groups are committed to add value to clients?businesses as they grow in their business life cycles.

The Advisory Banking Group established a Resource and Development Team to generate ideas to help improve its clients?financial health, embark on new business development activities and even link-ups with interested partners.

To understand and meet the increasingly complex needs of different client segments, FIG re-organised itself into dedicated teams to service Global Banks, Asian Banks and Non-Bank Financial Institutions (NBFI). Its specialised client services and incisive knowledge of Asian institutions?needs - leveraging on reciprocity, attracted significant mandates from premier global and Asian financial institutions and NBFIs.

Taking the Lead
DBS?Mergers and Acquisitions Advisory (M&AA) was at the forefront of the regional mergers and acquisitions advisory and corporate restructuring scene in 2001. In terms of the number of deals completed, it stands at ninth place in Asia (excluding Japan), according to Thomson Financial Data. The Group concluded 21 transactions, generating a total deal volume of S$2.2 billion. Noteworthy among them are:

The Group sought to carve a niche for itself as a leveraged buyout (LBO) advisory house in Hong Kong, by forging relationships with buyout funds and building a deal origination and execution platform. The M&AA team has been strengthened by the merger with the Vickers Ballas corporate finance team in 2001.

Growing the DBS Franchise regionally
To develop successful pan-Asian businesses in partnership with the Group, DBS?Private Equity invested more than S$18 million in three very promising companies in the areas of networking components and financial technology software. The Group has also committed a total of S$182 million in eight world-class, best-of-breed venture capital and private equity funds as part of DBS?strategy in building the franchise.

Private Equity was also able to achieve partial or full realisation of six of its investments, which produced S$23 million of proceeds and S$13 million of net gain for the Group.

With the opening of its Hong Kong office (in addition to offices in Singapore and the Silicon Valley) DBS Private Equity is in a better position to capitalise on growing business opportunities in North Asia.

In 2001, the Group established Global Transaction Services to focus and grow the contribution from its annuity products, namely Cash Management and Trade Finance services to corporate clients. The entity offers a whole spectrum of value-added products and services that support corporate clients in their payables, receivables, liquidity and risk management.

To ensure superiority in all product offerings, the Group invested in various initiatives such as enhancement of the e-banking platform, Internet Payment Gateway and Bill Payment Services.

The client-centric, innovative approach adopted has won DBS mandates from multinational and local corporates such as Virgin Mobile, Urban Redevelopment Authority, the Kuok Group and the Inland Revenue of Singapore. The Global Finance magazine voted DBS the Best Trade Finance Bank in Singapore, Hong Kong and Asia?

DBS?Custody and Trusts Services prevailed over declining indices and decreasing trading volumes with a steadfast focus on delivering quality services to its international and domestic clients. In the process, it won several awards from premier global financial magazines:

The total number of CPF Investment Accounts opened with DBS also rose significantly in 2001.

Securities Borrowing & Lending (SBL) enjoyed a steady increase in business in 2001. The new tax guidelines issued by the Tax Authorities, the introduction of a retail SBL market by local stockbrokers and the extension of Trusts Services to private banking clients all are expected to contribute significantly to further growth.

KEY ACHIEVEMENTS
The Market Leader in Singapore   • Top Bookrunner of Singapore Dollar Bonds in Singapore; raised the largest volume of capital for clients in 2001, at a total of S$4,377.3 million which represents a market share of 34.4%   • Launched the first issue by any corporation in the Singapore Dollar Bond Market to cross the S$1 billion mark - SingTels 5 years S$1 billion issue   • Launched the first issue with the longest tenor of 15 years in Singapore - Land Transport Authoritys S$500 million Bond Issue   • Launched the largest asset securitisation in Singapore - Tincel Limited S$984.5 million bond issue   • Leader in the IPO market, having raised the largest amount of IPO funds in 2001 at S$285.8 million which represents 59% of the overall volume of IPO funds tapped in the domestic market   • Launched the largest IPO Issue in 2001 - China Aviation Oil (Singapore) Corporation Ltd which raised S$81 million and the public offer tranche was oversubscribed seven times   • Top Arranger of Singapore Dollar Syndicated Loans in 2001.   • Sole arranged the largest Singapore Dollar deal in 2001 - Singapore Press Holdings?Times Properties S$782 million deal which set benchmark pricing	Growing in Strength in Asia   • Top three Arranger of South Korea Syndicated Loans in 2001 and top ten Syndicated Loan Arranger in Asia in 2001   • Established a Regional Syndications Centre in Hong Kong to offer more syndication loan resources to borrowers in North Asia   • Ninth in Asia (excluding Japan) in terms of the number of Mergers & Acquisitions deals completed; generating a total deal volume of S$2.2 billion   • Establishing a Leveraged Buyout Advisory House in Hong Kong, forging relationships with buyout funds and building a deal origination and execution platform   • DBS Private Equity established a Hong Kong office to capitalise growing opportunities in North Asia	Awards and Accolades   • Best Investment Bank in Singapore (The Asset Asian Awards 2001)   • Best Singapore Dollar Bond House (FinanceAsias Country Awards for Achievement 2001)   • Best overall in Local Currency Debt Market for Origination?and Bank most often used for primary issues (FinanceAsias Local Currency Bond Poll 2001)   • Best Local Equity House (FinanceAsias Country Awards for Achievement 2001)   • Best Trade Finance Bank in Singapore, Hong Kong and Asia (Global Finance Magazine 2001)   • Top ratings for custody services in Singapore (Global Custodian Magazine 2001)   • 4-Star rating for custody in Singapore - the highest score received by any provider in Singapore (GSCS Benchmarks 2001)   • Top ratings for custody services in Thailand; achieving the highest overall score for the Thai market and second ranking in the survey of emerging markets worldwide (Global Custodian Magazine 2001)