Group operating profit rose by 75.1% to S$1,964.2 million in 1999 due mainly to the acquisitions of POSBank in 1998 and Kwong On Bank (KOB) in May 1999; higher net interest income; higher proprietary trading profits; exceptional profits from divestment of the stake in Singapore Petroleum Company Ltd and sale of DBS Tampines Centre; and higher stockbroking and investment banking income.

Group net profit grew by 857.3% to S$1,071.8 million in 1999. The DBSH Group adopted equity accounting for investments in associated companies with effect from January 1, 1999. Comparative 1998 figures have been adjusted to reflect this change.

Non-Interest Income
1999: S$994.2 million (+123.0%)
1998: S$445.8 million

Net interest income rose by 42.3% mainly attributable to acquisitions of POSBank in 1998 and KOB in 1999, and higher net interest margins arising from more efficient asset and liability management and wider spreads between DBS Bank's prime lending rate and posted deposit rates.

The 123.0% increase in non-interest income was mainly contributed by the profit from divestment of DBS Bank's stake in Singapore Petroleum Company Ltd (S$117.1 million), higher proprietary trading profits on securities and derivatives (S$191.5 million), profit from sale of DBS Tampines Centre (S$57.5 million) and higher stockbroking and investment banking income (S$95.8 million).