DBS Offers Easier Terms To Mortgage Customers Affected By CPF Cuts

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Extends loan tenure, allows new co-borrowers, defers principal payments

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Waives Admin Fees For Change Of Terms

SINGAPORE, AUGUST 28, 2003 - DBS Bank Ltd today announced new measures to help its mortgage customers cushion the impact from the latest cuts in Central Provident Fund (CPF) savings rate.

The Bank will offer its existing and new customers including those seeking refinancing from other banks three options. They can choose to extend the tenure, and/or add another family member as a co-borrower to help out with repayment, and/or defer principal payments for the next three years.

To further ease DBS' customers' financing burden as a result of the cuts, DBS will waive the $500 administrative fee it normally charges for changing the terms of a loan facility.

This weekend, DBS will also keep its mortgage hotline open round the clock to help customers and attend to their enquiries. They are welcome to call this 24-hour hotline number: 6333-0033.

Edmund Koh, DBS managing director and head, consumer banking group Singapore, said: "We introduced the new measures because we want to help our customers to continue to own their homes. Nearly three out of every four DBS mortgage customers rely on their CPF contributions to service monthly instalments. With the rate cuts, we believe that a number of them will need more flexible lending terms.

"The growing popularity of our DBS Mortgage 1-2-3 Plan which we introduced in May is proof that when a bank is willing to tailor its loan terms to changing and differing economic circumstances, it will find appreciative customers."

Koh added that he does not expect the delinquency rate on DBS' housing loan portfolio to go up as a result of the CPF cuts.

DBS Mortgage 1-2-3, launched in May 2003, offers borrowers flexible terms that cater to individual customer needs. Borrowers can choose between a normal repayment plan, a gradual repayment plan and/or an interest-only repayment plan.

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.