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DBS Bank Annual Report 1998

Performance at a Glance

Financial Highlights

Letter to Shareholders

Corporate Governance

Operations Review

Financial Report



Operations Review

Regional Development

Building presence means reaching people 
throughout Asia with information-based services
that support a network of DBS locations through
a variety of physical and electronic channels

In international banking, loan syndication and project finance activities in 1998 were subdued due to the regional crisis and its after-affects. Though we remained vigilant and pro-active in managing exposure, a number of initiatives were undertaken despite the difficult conditions.

These included a US$526 million Project Finance Loan for the Fujian Pacific Electric Company in China which DBS Bank successfully arranged with a number of international banks. In Thailand, DBS Bank was one of the lead arrangers for a US$1 billion loan to the Government's Export-Import Bank. This was the first major international loan for a Thai entity since the Baht devaluation in July 1997. In India, DBS also arranged a ´18.34 billion loan facility for the National Thermal Power Corporation, the country's largest power producer/supplier.

Building a world-class bank
Individual and Enterprise Banking
Institutional Banking, Treasury and Capital Markets
Regional Development
Supporting the Community

Thai Danu Bank
DBS Bank Philippines
PT Bank DBS Buana
Map of Regional Development

The Bank seized opportunities in 1998 to further extend its regional franchise. Notwithstanding the economic downturn, we remain committed to becoming a leading bank in the region. From our strong foundation in Singapore, we aim to create a network of branches and subsidiaries located in key regional countries that can deliver a comprehensive range of local and cross-border banking products and services to an increasingly diverse customer base.

In March, DBS Bank acquired a 50.27% stake in Thailand's Thai Danu Bank and shortly thereafter completed a 60% acquisition of Bank of Southeast Asia (since renamed DBS Bank Philippines). Integration of activities, systems and infrastructure of the new banking affiliates is progressing smoothly. In December, we announced a conditional voluntary offer for Kwong On Bank of Hong Kong after receiving irrevocable undertakings from existing shareholders to sell us a 65 percent interest.

The DBS regional network has now grown to include 1,424 banking locations including ATMs in 12 countries serving more than 5 million customers. In Shanghai, DBS Bank was in the second batch of ten foreign financial institutions to be granted licences to conduct Renminbi business. Our Shanghai Branch commenced Renminbi services in April 1999.