DBS Bank Acquires a 7.4% Shareholding in the Far East Bank and Trust Company

[November 9, 1999]. The Development Bank of Singapore Ltd (DBS) announced today that it has agreed to purchase 44 million shares in the Far East Bank and Trust Company from the Philippine American Life and General Insurance Company. The purchase will be executed on Wednesday, November 10, 1999, and provides DBS with a 7.4% holding in the Far East Bank and Trust Company.

The Boards of the Far East Bank and Trust Company and the Bank of the Philippine Islands have agreed to merge into what will be the largest bank in the Philippines in terms of assets and number of branches. Following the merger of the two banks, DBS will have an effective 2.4% shareholding in the combined bank.

The Far East Bank and Trust Company is the 5th largest bank in the Philippines, with PHP 136.5 billion of assets (as at end 1998) and 259 branches. The Bank of the Philippine Islands is the oldest bank in the Philippines, dating back to 1851, and one of the leading banks in Asia. Prior to the merger with the Far East Bank, the Bank of the Philippine Islands ranked third with PHP 218.9 billion of assets (as at end 1998) and 418 branches.