DBS BANK LTD.

(Incorporated in Singapore. Registration Number: 196800306E)

AND ITS SUBSIDIARIES

FINANCIAL STATEMENTS

For the financial year ended 31 December 2023

Financial Statements

Table of Contents

Directors' Statement

Independent Auditor's Report

Financial Statements

Income Statements

1

Balance Sheet: Liabilities

Statements of Comprehensive Income

2

27

Deposits and Balances from Customers

39

Balance Sheets

3

28

Other Liabilities

40

Consolidated Statement of Changes in Equity

4

29

Other Debt Securities

40

Statement of Changes in Equity

5

Consolidated Cash Flow Statement

6

Balance Sheet: Share Capital and Reserves

30

Share Capital

41

Notes to the Financial Statements

31

Other Equity Instruments

42

1

Domicile and Activities

7

32

Other Reserves and Revenue Reserves

42

2

Summary of Material Accounting Policies

7

33

Non-controlling Interests

45

3

Critical Accounting Estimates

16

Off-Balance Sheet Information

Income Statement

34

Contingent Liabilities and Commitments

46

4

Net Interest Income

17

35

Financial Derivatives

47

5

Net Fee and Commission Income

17

6

Net Trading Income

18

Additional Information

7

Net Income from Investment Securities

18

36

Interest Rate Benchmark Reform

49

8

Other Income

18

37

Hedge Accounting

49

9

Employee Benefits

18

38

Share-based Compensation Plans

55

10

Other Expenses

19

39

Related Party Transactions

57

11

Allowances for Credit and Other Losses

19

40

Fair Value of Financial Instruments

58

12

Income Tax Expense

25

41

Risk Governance

61

42

Credit Risk

62

43

Market Risk

71

Balance Sheet: Assets

44

Liquidity Risk

73

13

Classification of Financial Instruments

26

45

Operational and Technology Risk

77

14

Cash and Balances with Central Banks

30

46

Capital Management

79

15

Government Securities and Treasury Bills

31

47

Segment Reporting

79

16

Bank and Corporate Securities

31

48

Significant Events

82

17

Loans and Advances to Customers

31

18

Financial Assets Pledged or Transferred

32

19

Other Assets

33

20

Deferred Tax Assets/ Liabilities

33

21

Subsidiaries and Consolidated Structured

35

Entities

22

Associates and Joint Ventures

36

23

Unconsolidated Structured Entities

37

24

Acquisition

38

25

Properties and Other Fixed Assets

38

26

Goodwill and Intangible Assets

39

DBS Bank Ltd. and its Subsidiaries

Directors' Statement

for the financial year ended 31 December 2023

The Directors are pleased to present their statement to the Member, together with the audited consolidated financial statements of DBS Bank Ltd. (the Bank) and its subsidiaries (the Bank Group) and the financial statements of the Bank for the financial year ended 31 December 2023. These have been prepared in accordance with the provisions of the Companies Act 1967 (the Companies Act) and the Singapore Financial Reporting Standards (International).

In the opinion of the Directors:

  1. the consolidated financial statements of the Bank Group, consisting of the Bank and its subsidiaries, and the financial statements of the Bank, together with the notes thereon, as set out on pages 1 to 82, are drawn up so as to give a true and fair view of (i) the financial position of the Bank Group and Bank, as at 31 December 2023, and (ii) the financial performance and changes in equity of the Bank Group and Bank, and cash flow statement of the Bank Group, for the financial year ended on that date; and
  2. as at the date of this statement, there are reasonable grounds to believe that the Bank Group and the Bank will be able to pay their debts as and when they fall due.

Board of Directors

The Directors in office at the date of this statement are:

Mr Peter Seah (Chairman)

Mr Olivier Lim (Lead Independent Director)

Mr Piyush Gupta (Chief Executive Officer)

Dr Bonghan Cho

Mr Chng Kai Fong

Mr David Ho Hing-Yuen (appointed 26 April 2023)

Ms Punita Lal

Ms Judy Lee

Mr Anthony Lim

Mr Tham Sai Choy

Mr Piyush Gupta, Mr Chng Kai Fong and Ms Judy Lee will retire by rotation in accordance with Article 95 of the Bank's Constitution at the forthcoming annual general meeting (AGM) and, being eligible, will offer themselves for re-election at the AGM.

Mr David Ho Hing-Yuen will retire in accordance with Article 74(b) of the Bank's Constitution at the forthcoming AGM and, being eligible, will offer himself for re-election at the AGM.

i

Directors' interests in shares or debentures

Each of the following Directors who held office at the end of the financial year had, according to the register of directors' shareholdings required to be kept under Section 164 of the Companies Act, an interest in shares of the Bank and related corporations as stated below:

Holdings in which Directors

Holdings in which Directors

have a direct interest

are deemed to have an interest

As at

As at

As at

As at

31 Dec 2023

1 Jan 2023

31 Dec 2023

1 Jan 2023

DBS Group Holdings Ltd

("DBSH") ordinary shares

Mr Peter Seah

329,218

312,033

-

-

Mr Olivier Lim

150,554

146,672

-

-

Mr Piyush Gupta

43,864

26,400

2,185,721

1,989,046

Dr Bonghan Cho

13,389

10,684

-

-

Ms Punita Lal

6,485

3,829

-

-

Ms Judy Lee

4,453

1,148

-

-

Mr Anthony Lim

8,215

4,872

-

-

Mr Tham Sai Choy

106,168

102,478

-

-

Share awards (unvested) granted

under the DBSH Share Plan

Mr Piyush Gupta (1)

748,864

830,431

-

-

  1. Mr Piyush Gupta's share awards form part of his remuneration. Details of the DBSH Share Plan are set out in Note 38 of the Notes to the Bank Group's 2023 financial statements

There was no change in any of the above-mentioned interests between the end of the financial year and 21 January 2024.

DBSH Share Plan

At the Annual General Meeting of DBSH held on 25 April 2019, the DBSH Share Plan (which was first adopted on 18 September 1999) was extended for another ten years, from 18 September 2019 to 17 September 2029 (both dates inclusive). The DBSH Share Plan is administered by the Compensation and Management Development Committee (CMDC). As at the date of this statement, the members of the CMDC are Mr Anthony Lim (Chairman), Mr Peter Seah, Dr Bonghan Cho, Mr David Ho Hing-Yuen, Ms Punita Lal and Ms Judy Lee.

Under the terms of the DBSH Share Plan:

  1. Awards over DBSH's ordinary shares may be granted to Bank Group executives who hold such rank as may be determined by the CMDC from time to time. Awards may also be granted to (amongst others) executives of associated companies of DBSH who hold such rank as may be determined by the CMDC from time to time, and non-executive Directors of DBSH;
  2. Where time-based awards are granted, participants are awarded ordinary shares of DBSH or, at the CMDC's discretion, their equivalent cash value or a combination of both as part of their deferred bonus, at the end of the prescribed vesting periods. Awards are granted under the DBSH Share Plan at the absolute discretion of the CMDC. Dividends on unvested shares do not accrue to employees;

ii

  1. Awards under the DBSH Share Plan may be granted at any time in the course of a financial year, and may lapse by reason of cessation of employment or misconduct of the participant, except in cases such as retirement, redundancy, ill health, injury, disability, death, bankruptcy of the participant, or by reason of the participant, being a non-executive Director, ceasing to be a Director, or in the event of a take-over, winding up or reconstruction of DBSH;
  2. Subject to the prevailing legislation and the rules of the Singapore Exchange, DBSH will have the flexibility to deliver ordinary shares of DBSH to participants upon vesting of their awards by way of an issue of new ordinary shares and/ or the transfer of existing ordinary shares (which may include ordinary shares held by DBSH in treasury); and
  3. The class and/ or number of ordinary shares of DBSH comprised in an award to the extent not yet vested, and/ or which may be granted to participants, are subject to adjustment by reason of any variation in the ordinary share capital of DBSH (whether by way of a capitalisation of profits or reserves or rights issue, reduction, subdivision, consolidation, or distribution) or if DBSH makes a capital distribution or a declaration of a special dividend (whether in cash or in specie), upon the written confirmation of the auditor of DBSH that such adjustment (other than in the case of a capitalisation issue) is fair and reasonable.

During the financial year, time-based awards in respect of an aggregate of 5,740,016 ordinary shares were granted pursuant to the DBSH Share Plan to selected employees of the Bank Group1. In addition, during the financial year, certain non-executive Directors received an aggregate of 38,702 share awards which vested immediately upon grant. These share awards formed part of their directors' fees for acting as Directors of DBSH in 2022.

Details of the share awards granted under the DBSH Share Plan to Directors of the Bank(1) are as follows:

Share awards granted during the

Directors of the Bank

financial year under review

Share awards vested during the financial year under review(2)

Mr Peter Seah

17,185

17,185

Mr Olivier Lim

3,882

3,882

Mr Piyush Gupta

232,572(3)

314,139

Dr Bonghan Cho

2,705

2,705

Ms Punita Lal

2,656

2,656

Ms Judy Lee

3,305

3,305

Mr Anthony Lim

3,343

3,343

Mr Tham Sai Choy

3,690

3,690

  1. The directors' fees for Mr Chng Kai Fong were paid in cash to a government agency, the Directorship & Consultancy Appointments Council while Mr David Ho Hing-Yuen joined during the financial year. Accordingly, they had not been granted share awards
  2. Treasury shares were transferred to Directors pursuant to the vesting of such share awards
  3. The share awards granted to Mr Piyush Gupta are time-based awards which will vest over a 4-year period. This represents the aggregate of (a) 220,554 share awards which were granted in February 2023 and formed part of his remuneration for 2022; and (b) 12,018 shares arising from adjustments made to all unvested share awards granted under the DBSH Share Plan on 6 April 2023

1 With reference to Rule 852(2) of the SGX-ST Listing Manual, none of the participants had received shares, pursuant to the release of awards granted, which in aggregate represent 5% or more of the total number of new shares available under the DBSH Share Plan.

iii

Arrangements to enable Directors to acquire shares or debentures

Neither at the end of, nor at any time during the financial year, was the Bank a party to any arrangement, the object of which is to enable the Directors to acquire benefits through the acquisition of shares in, or debentures of, the Bank or any other body corporate, save as disclosed in this statement.

Independent Auditor

PricewaterhouseCoopers LLP has expressed its willingness to accept re-appointment as independent external auditor.

On behalf of the Directors

Mr Peter Seah

Mr Piyush Gupta

6 February 2024

Singapore

iv

INDEPENDENT AUDITOR'S REPORT TO THE MEMBER OF

DBS BANK LTD.

Report on the Audit of the Financial Statements

Our Opinion

In our opinion, the accompanying consolidated financial statements of DBS Bank Ltd. (the "Bank") and its subsidiaries (the "Bank Group") and the balance sheet, income statement, statement of comprehensive income and statement of changes in equity of the Bank are properly drawn up in accordance with the provisions of the Companies Act 1967 (the "Act") and Singapore Financial Reporting Standards (International) ("SFRS(I)s") so as to give a true and fair view of the consolidated financial position of the Bank Group and the financial position of the Bank as at 31 December 2023 and of the consolidated financial performance, the consolidated changes in equity and the consolidated cash flows of the Bank Group, and of the financial performance and changes in equity of the Bank for the financial year ended on that date.

What we have audited

The financial statements of the Bank Group and the Bank comprise:

  • the income statements of the Bank Group and the Bank for the year ended 31 December 2023;
  • the statements of comprehensive income of the Bank Group and the Bank for the year ended 31 December 2023;
  • the balance sheets of the Bank Group and of the Bank as at 31 December 2023;
  • the consolidated statement of changes in equity of the Bank Group for the year then ended;
  • the statement of changes in equity of the Bank for the year then ended;
  • the consolidated cash flow statement of the Bank Group for the year then ended; and
  • the notes to the financial statements, including material accounting policy information.

Basis for Opinion

We conducted our audit in accordance with Singapore Standards on Auditing ("SSAs"). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the Bank Group in accordance with the Accounting and Corporate Regulatory Authority Code of Professional Conduct and Ethics for Public Accountants and Accounting Entities ("ACRA Code") together with the ethical requirements that are relevant to our audit of the financial statements in Singapore, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ACRA Code.

INDEPENDENT AUDITOR'S REPORT TO THE MEMBER OF

DBS BANK LTD. (continued)

Our Audit Approach

Overview

Materiality

  • We determined the overall Bank Group materiality based on 5% of the Bank Group's profit before tax.

Group scoping

  • Full scope audit procedures were performed over the Singapore Operations of DBS Bank Ltd. and DBS Bank (Hong Kong) Limited ("significant components").
  • We identified as component entities ("other components") the branches of DBS Bank Ltd. Hong Kong, Taipei and London, as well as the subsidiaries DBS Bank (China) Limited, PT Bank DBS Indonesia, DBS Bank (Taiwan) Ltd and DBS Bank India Limited. This is where certain account balances were considered to be significant in size in relation to the Bank Group. Consequently, audit specified procedures for the significant account balances of these components were performed to obtain sufficient and appropriate audit evidence.

Key audit matters

  • Specific allowances for loans and advances to customers
  • General allowances for credit losses (Stage 1 and 2 Expected Credit Loss)
  • Goodwill
  • Valuation of financial instruments held at fair value

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the accompanying financial statements. In particular, we considered where management made subjective judgements; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls, including, among other matters, consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.

Page 2 of 10

INDEPENDENT AUDITOR'S REPORT TO THE MEMBER OF

DBS BANK LTD. (continued)

Materiality

The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance as to whether the consolidated financial statements are free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the consolidated financial statements.

Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall Bank Group materiality for the consolidated financial statements as a whole, as set out in the table below. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually and on the financial statements as a whole.

How we determined overall

5% of the Bank Group's profit before tax

Bank Group materiality

Rationale for benchmark

• We chose 'profit before tax' as, in our view, it is the benchmark

applied

against which performance of the Bank Group is most

commonly measured.

• We selected 5% based on our professional judgement, noting

that it is also within the range of commonly accepted profit-

related thresholds.

In performing our audit, we allocated materiality levels to the significant components and other components of the Bank Group. These are less than the overall Bank Group materiality.

How we developed the audit scope

We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the financial statements as a whole, taking into account the structure of the Bank Group, the accounting processes and controls, and the industry in which the Bank Group operates. The Bank Group's financial reporting process is dependent on its Information Technology ("IT") systems. Our audit scope included testing the operating effectiveness of the controls over the integrity of key financial data processed through the IT systems that are relevant to financial reporting.

In establishing the overall Bank Group audit approach, we determined the extent of audit procedures that were needed to be performed across the Bank Group by us or by other PwC network firms, operating under our instruction, who are familiar with the local laws and regulations in each respective territory, (the "component auditors"). Where the work was performed by component auditors, we determined the level of involvement we needed to have in the procedures to be able to conclude whether sufficient and appropriate audit evidence had been obtained as a basis for our opinion on the financial statements as a whole.

Page 3 of 10

INDEPENDENT AUDITOR'S REPORT TO THE MEMBER OF

DBS BANK LTD. (continued)

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements for the financial year ended 31 December 2023. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matter

How our audit addressed the key audit

matter

Specific allowances for loans and advances to customers

As at 31 December 2023, the specific allowances for loans and advances to customers of the Bank Group was $2,347 million, the majority of which related to Institutional Banking Group ("IBG") customers. Specific allowances refer to loss allowances for credit-impaired exposures (i.e. Stage 3, per SFRS (I) 9). Expected Credit Losses ("ECL") on non- impaired exposures (i.e. Stage 1 and Stage 2) are set out under the 'General allowances for credit losses' key audit matter.

We focused on this area because management assessment of impairment can be inherently subjective and involves significant judgement over both the timing and estimation of the size of such impairment. This includes:

  • principal assumptions underlying the calculation of specific allowances for loans and advances to IBG customers where there is evidence of impairment losses (including future profitability of borrowers and expected realisable value of collateral held); and
  • classification of loans and advances in line with MAS Notice 612 ("MAS 612").

(Refer also to Notes 3 and 17 to the financial statements.)

We assessed the design and evaluated the operating effectiveness of key controls over the specific allowances for loans and advances. These controls included:

  • oversight of credit risk by the Group Credit Risk Committee;
  • timely management review of credit risk;
  • watchlist identification and monitoring;
  • timely identification of impairment events;
  • classification of loans and advances in line with MAS 612; and
  • collateral monitoring and valuation.

We determined that we could rely on these controls for the purposes of our audit.

We inspected a sample of loans and advances to IBG customers to assess whether the classification of the loans and advances was in line with MAS 612 and, where there was evidence of an impairment loss, whether it had been identified in a timely manner. This included, where relevant, how forbearance had been considered.

Where impairment had been identified, for a sample of loans and advances, our work included:

  • considering the latest developments in relation to the borrower;
  • examining the forecasts of future cash flows prepared by management, including key assumptions in relation to the amount and timing of recoveries;
  • comparing the collateral valuation and other sources of repayment to check the calculation of the impairment against external evidence, where

Page 4 of 10

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Disclaimer

DBS Group Holdings Ltd. published this content on 06 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 March 2024 10:00:07 UTC.