DBS Thai Danu Bank To Raise Provisions In Second Half

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No Impact on DBS Group Holdings

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SINGAPORE, August 25, 2003 - DBS Group Holdings (DBS) today announced its 51.7% owned Thailand incorporated subsidiary, DBS Thai Danu Bank (DTDB), plans to increase gross provisions by about Baht 2.7 billion by the end of 2003.

The change in DTDB provisions reflects the adoption of more rigorous qualitative standards on non-performing loans (NPLs) and loan provisions, and follows guidance from the Bank of Thailand (BOT).

The increase in DTDB provisions will have no impact on the consolidated DBS Group Holdings accounts as the group already applies more conservative standards in reporting DTDB's NPLs and loan provisions.

If the provisions were reflected in DTDB's financial statements at June 30, 2003, the proforma Capital Adequacy Ratio (CAR) under Bank of Thailand standards would be 10.1% instead of the reported ratio of 12.9%. Proforma Tier 1 CAR on the same date would change from 9.6% to 6.8%. Despite the higher provisions, DTDB's proforma capital ratios remain above the local regulatory requirements. There is no change in the reported non-performing loans (NPLs) of Baht 8.4 billion as of June 30, 2003.

About DBS

Headquartered in Singapore, DBS Bank is one of the largest financial services groups in Asia. The largest bank in Singapore and the fourth biggest banking group in Hong Kong as measured by assets, DBS has dominant positions in consumer banking, treasury and markets, securities brokerage, equity and debt fund raising. Beyond the anchor markets of Singapore and Hong Kong, DBS serves corporate, institutional and retail customers through its operations in Thailand, The Philippines, and Indonesia. In China, the bank has branches and representative offices in Shanghai, Beijing, Shenzhen, Fuzhou and Tianjin. The Bank's credit ratings are among the highest in the Asia-Pacific region. More information about DBS Group Holdings and DBS Bank can be obtained from our website www.dbs.com.