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DBS Bank Annual Report 1998

Performance at a Glance

Financial Highlights

Letter to Shareholders

Corporate Governance

Operations Review

Financial Report



Financial Highlights Pt 1
Net Profit After Tax
1998: S$222.7 million (-49.0%)
1997: S$436.4 million

1998: S$239.0 million (-40.5%)
1997: S$401.6 million

Group net profit was in 1998 S$222.7 million compared to S$436.4 million in 1997 due mainly to provisions on non-performing loans (NPLs) in Malaysia, Indonesia, Thailand, Korea and the Philippines (Regional Countries). Total provisions made for 1998 were S$996.4 million compared to S$495.5 million for 1997.

Excluding the contribution from POSBank and losses at Thai Danu Bank (TDB), the decline in Group net profit would have been 27.6%.


Operating Profit

1998: S$1,151.7 million (+13.0%)
1997: S$1,019.4 million

1998: S$1,109.0 million (+18.2%)
1997: S$938.1 million

Group operating profit rose by 13.0% to S$1,151.7 million in 1998, contributed mainly by an increase in net interest income.

Excluding the consolidation of POSBank and TDB, growth in Group operating profit would have been 7.9%.


Group Net Interest Income & Non-interest Income

  Net Interest Income
1998: S$1,430.0 million (+42.7%)
 1997: S$1,001.8 million

  Non-Interest Income
1998: S$476.1 million (-6.7%)
1997: S$510.5 million

The growth in net interest income was due mainly to higher loan volume and margins;

as well as the inclusion of POSBank's net interest income from 1 July 1998 and TDB's net interest income from 1 April 1998. Excluding contributions from POSBank and TDB, growth in net interest income would have been 15.6%.

Fee and commission income declined due to lower loan-related income, stockbroking and fund management fees. Lower dividend income was the result of lower payout by affiliated companies. Other Income, which is market dependent, and rental income were higher.
Financial Highlights pt 1
Financial Highlights pt 2
Financial Highlights pt 3
Financial Highlights pt 4
Financial Highlights pt 5
Financial Highlights Pt 6
Group Regional Exposure at end 1998