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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 2)
Group Income Before Operating Expenses, Operating Expenses & Ratio of Operating Expenses to Income Before Operating Expenses
  Income Before Operating Expenses
1998: S$1,906.1 million (+26.0%)
1997: S$1,512.3 million
  Operating Expenses
1998: S$754.4 million (+53.1%)
1997: S$492.9 million
   Ratio of Operating
       Expenses to Income
       Before Operating

1998: 39.6% 
(+7.0 percentage points)
1997: 32.6%
The increase in operating expenses was due to the consolidation of POSBank's expenses from 1 July 1998 and TDB's expenses from 1 April 1998 and a S$73.9 million provision for restructuring costs. Excluding these, the increase in operating expenses would have been 1.3%. The expense-to-income ratio excluding restructuring costs would have been 35.7%.

Group Provisions & Provisions as Percentage of Operating Profit

1998: S$996.4 million (+101.1%) 
1997: S$495.5 million

Of the total provisions made by the Group in 1998, S$272.0 million of specific provisions were taken against TDB's loans, S$322.5 million for loans to the Regional Countries (excluding TDB) and S$339.8 million for loans to Singapore borrowers and other countries.

The Group continued to set aside additional special general provisions in 1998 amounting to S$157.8 million to meet contingencies which may arise in the future from its regional exposure.

All classified loans have been fully provided for.

   Provisions as % of 
      Operating Profit

1998: 86.5% (+37.9 percentage points)
1997: 48.6%


Group Total Shareholders' Funds & Return on Average Total Shareholders' Funds (ROE)

  Total Shareholders' Funds
1998: S$9.1 billion (+26.8%) 1997: S$7.2 billion

Total shareholders' funds were further strengthened by proceeds from the Bank's 1 for 5 rights issue in May 1998, and the issuance of non-voting convertible preference shares as consideration for the acquisition of the business of POSBank in November 1998.
   Return on Average Total Shareholders' Funds
1998: 2.68% (-3.51 percentage points) 1997: 6.19%
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