【正文】 t turnover (SGD) 51M No of branch 4 ? Shanghai, Guangzhou, Beijing as important strategic locations for business expansion due to the highest deposit concentration in these cities ? Focus to build Shanghai, Guangzhou and Beijing work first to cumulate experience before branching out to other wealthy cities ? Gradual expansion of work to improve accessibility and entrench customer loyalty 2 Shenzhen (1) Shanghai (1) +2 Shanghai (1) Guangzhou (1) +4 Beijing (2) Suzhou (1) Tianjin (1) +4 Shanghai (1) Shenzhen (1) Guangzhou (1) Nanning (1) +10 (O/S: 12) Q4 08F 2022 Y/E Q1 08A Q2 08A Q3 08F 2022 Y/E 5 ? Diversify and balance source of ine (NII and Fee based ine) ? Build customer base ? Acquire highend affluent segment with product differentiation ? Improve product peration per customer and enhance customers’ stickiness Why do we want to do this ? Key initiative 2 Focus on deposit gathering through personalized and innovative wealth management and mortgage services to our target segments What is the expected oute ? What ? Full range of Wealth Management products should be made available at 3 key cities。 FCY Deposit to drive for high Net Interest Ine ? Investment as brand differentiator – Marketing and Product development responsibilities to align customer needs with internal product manufacturing capability ? Mortgage remains as the key revenue driver – expand business source from developer project financing and estate agency work to solicit more enduser financing ? Optimize resource support from regional office 6 ? Greatly enhance distribution capability by sharing works of ATM, POS, Teller counters, payment gateway with CUP member banks ? Improve customer accessibility ? Build brand awareness ? Increase base of transactional customers Why do we want to do this ? Key initiative 3 Build operating infrastructure capability to improve accessibility and entrench customer loyalty – via access to China UnionPay Network What is the expected oute ? ? Application for CBRC and CUP approval – submit application to CBRC for bank card business and to CUP for shared work membership ? Infrastructure building and testing – including system development, card centre setup (with Call Centre functionalities) and CUP certification test ? Issue CUP Debit Card What ? Install ATM at all opened and tobeopened branches ? Further improve customer accessibility such as standalone ATMs to align with the remote selfservice banking strategy in China Where ? Tentative launch date: Q4 08 as freeze on infrastructure changes from Jun – Sep 08 (China Olympic) and subject to our ability to move data centre from Hong Kong to China is critical to obtain approval from CBRC When As is 1H 2022 To be /2022 Customer Base 6,312 Loans EOP (SGD) Deposits EOP (SGD) 7 Building a strong business foundation ? Recruitment of high calibre local talents as pipeline for local management succession ? Cross pollination – second HK amp。 property agents。 streamline local mortgage credit cycle management policy and process, to improve efficacy, and build DBS petitive edge ? Enhance credit and asset quality with the linkage to local/PBoC credit bureaus Credit 9 Key Competitors Legend: Low Average Above Average High None Position/ mkt share Mortgage Investment Deposit Competitive Positioning Peer Group Biggest 4 State Owned Banks – ICBC, BOC, CBC amp。L drivers Operating Ine, Expenses and Provisions (S$m) 15 S P / A N R , G P / A N R , 2 4 4 . 4 5 5 . 73 7 . 26 6 . 92 5 3 . 13 3 . 5TP / A N R , 2 4 4 . 4 2 5 3 . 16 6 . 93 7 . 23 3 . 55 5 . 7T o t a l 0 . 1 3 0 . 2 0 0 . 3 9 0 . 3 0 0 . 3 5 0 . 0 6 0 . 5 4 0 . 2 5 0 . 2 4 0 . 1 8 0 . 1 5 0 . 0 9 0 . 0 0 0 . 0 0 0 . 1 7 G e n e r a l 0 . 1 3 0 . 2 0 0 . 3 9 0 . 3 0 0 . 3 5 0 . 0 6 0 . 5 4 0 . 2 5 0 . 2 4 0 . 1 8 0 . 1 5 0 . 0 9 0 . 0 0 0 . 0 0 0 . 1 7 S p e ci f i c J u l 0 7 A u g 0 7 S e p 0 7 O ct 0 7 N o v 0 7 D e c 0 7 J a n 0 8 F e b 0 8 M a r 0 8 A p r 0 8 M a y 0 8 J u n 0 82 0 0 5 A RR2 0 0 6 A RR2 0 0 7 A RRCBG China : Pamp。 INCOME / STAFF COSTS