DBS Thai Danu Bank Announces Bt 59.7 Million (US$ 1.4 Million) Net Profit For 1Q02

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An 81% growth from the same period last year

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Driven By A Growth In Total Income

BANGKOK, APRIL 19, 2002 - DBS Thai Danu Bank, a subsidiary of DBS Bank, today reported an unaudited net profit of Bt 59.7 million (US$ 1.4 million) for the first quarter of 2002 (1Q02) versus a net profit of Bt 33.0 million (US$ 0.7 million) in the same period last year, representing an 81.0% increase.

Bank officials attributed the year-on-year improvement to an increase in the Bank's total income. Net interest and dividend income rose by 4.1% to Bt 548.4 million. Non-interest income grew by 12.3% to Bt 212.3 million, mainly due to higher gain from sales of investments. Operating expenses expanded slightly by 3.0% to Bt 531.0 million as a result of the increase in contribution to the Financial Institutions Development Fund (FIDF) following the larger deposit base.

DBS Thai Danu Bank said the operating profit for 1Q02 was Bt 229.7 million, up by 14.4% compared to the same period last year.

During the first quarter, the Bank added a further Bt 120.0 million to its provisions for non-performing loans (NPLs) as the Bank considers it prudent to do so in view of the fragile economic environment. The loan loss provision is now 152.6% of the new requirement set by the Bank of Thailand (under the old basis, the loan loss provision is 137.7%).

As at 31 March 2002, NPLs by account basis came to Bt 4,235.8 million, a decrease from Bt 5,132.8 million in the same period last year. The NPL ratio now was at 5.5 % compared to 7.4% in the corresponding period last year. Quarter-on-quarter, NPLs decreased by Bt 232.1 million. NPLs as at 31 December 2001 were Bt 4,467.9 million and 5.9% of total loans.

Competition continues to intensify. Nonetheless, quarter-on-quarter, the Bank recorded a moderate loan growth of 1.0%. Net interest and dividend income increased marginally by 1.9%. Non-interest income rose by 1.8%. Operating profit rose by 1.3%.

Compared to the same period last year, in 1Q02 the Bank achieved a growth in non-bank customer loans of 10.6% to Bt 76,016.9 million. Total assets increased to Bt 99,488.7 million. Non-bank deposits increased by 10.6% to Bt 78,391.1 million. The loan-to-deposit ratio remained unchanged at 97.0%. Capital adequacy ratio (CAR) stood at 12.4% well above the Bank of Thailand's minimum requirement of 8.5%. Quarter-on-quarter, loans grew slightly by 1.0%, and non-bank deposits expanded by 1.6%.

President and CEO Pornsanong Tuchinda said, "Amidst continuing intense competition, we managed to grow the financial results at a satisfactory rate."

"During 1Q02 we added an overdraft facility into "Mortgage Plus" (a multipurpose loan), to provide more flexibility to customers in managing their financial positions. With this new feature and its competitive rate, we expect a positive response from the market. Other personal credit products like Credit Plus and Personal Plus will continue to be a key focus for the consumer banking area."

DBS Thai Danu Bank, a subsidiary of DBS Bank of Singapore, is a commercial bank headquartered in Bangkok, Thailand. With 61 branches, expertise in consumer, SME, corporate lending and an international treasury function, the Bank offers a full range of banking services in Thailand.

DBS Thai Danu Bank announced today a net profit of Bt 59.7 million for the first quarter of 2002, an 81.0% increase from the same period last year. The improvement was due mainly to a 6.2% increase in total income. Net interest and dividend income rose by 4.1% to Bt 548.4 million and non-interest income was up by 12.3% to Bt 212.3 million. The growth in non-interest income was driven mainly by the gain from sales of investment. Operating expenses rose marginally by 3.0% to Bt 531.0 million, principally the result of a higher contribution to the Financial Institutions Development Fund (FIDF) in line with our larger deposit base. As a result, operating profit for the period was Bt 229.7 million representing a 14.4% increase from the same period last year.

Quarter-on-quarter, operating profit rose by 1.3% as a result of a marginal increase in total income. Competition continues to intensify. Nonetheless, DTDB recorded a moderate loan growth of 1.0%. Net interest and dividend income increased by 1.9%. Non-interest income grew slightly by 1.8%. Operating expenses was up by 2.1%.

Year-on-year, as at 31 March 2002, non-bank customer loan expanded by 10.6% to Bt 76,016.9 million. Total assets rose to Bt 99,488.7 million. Non-bank deposits increased by 10.6% to Bt 78,391.1 million. The loan-to-deposit ratio remained unchanged at 97.0%. Quarter-on-quarter, loan grew slightly by 1.0%. Non-bank deposits expanded by 1.6%.

Capital Adequacy
As at 31 March 2002, the Bank's capital adequacy ratio (CAR) stood at 12.4%, well above the 8.5% minimum requirement specified by the Bank of Thailand.

NPLs and Provisions
NPLs continued to decline. As at 31 March 2002, NPLs classified under the account basis were Bt 4,235.8 million and as a percentage of total loans were 5.5%.

In 1Q02, the Bank made further loan loss provisions of Bt 120.0 million due to the fragile economic environment and the rise in new and re-entry NPLs across the Thai banking industry. As a result, the level of provisions was 152.6% of the new requirement set by the Bank of Thailand (under the old basis, the loan loss provision is 137.7%).