PressRelease 21March2018 DahSingFinancialHoldingsAnnounces2017AnnualResultsEncouragingcorebankingbusinessperformanceandprofitability HighlightsDahSingFinancialHoldings(“DSFH”) Profitattributabletoshareholdersincreasedby185.7%y-o-ytoHK$5.4billionNormalizedprofitexcludinggainondisposaloflifeinsurancebusinessesand impairmentlossoninvestmentinBankofChongqing(“BOCQ”)amountedtoHK$2.4billionEarningspershare:HK$4.70(fromcontinuingoperations) HK$11.43(fromdiscontinuedoperations)Returnonequity:23.1%(normalizedreturnonequityexcludinggainondisposalof lifeinsurancebusinessesandtheimpairmentlossoninvestmentinBOCQ:11.1%)Totaldividendpershare:HK$1.35(excludingspecialdividendalreadypaid)ThesaleofthelifeassurancebusinesseshadbroughtagainofHK$3.6billion;a specialdividendofaroundHK$2.2billionwaspaidinJuly2017SubscribedUS$115millionofAdditionalTier1capitalissuedbyDSB DahSingBankingGroup(“DSBG”)ProfitattributabletoshareholdersincreasedtoHK$2.2billionNormalizedprofitexcludingimpairmentlossoninvestmentinBOCQamountedtoHK$3.0billionOperatingprofitafterloanimpairmentlossesupby33.6%toHK$2.3billionAnon-cashwrite-downoftheinvestmentinBOCQbyaboutHK$0.8billionwasmadeasaresultofValueinUsebeinglowerthancarryingvalueEarningspershare:HK$1.56Returnonequity:9.1%(normalizedreturnonequityexcludingimpairmentlossoninvestmentinBOCQ:12.3%)Totaldividendpershare:HK$0.42Netinterestmarginremainedstableat1.98%NetinteresteofHK$3.9billion,anincreaseof7.0%y-o-yNetfeemissioneofaboutHK$1.1billion,anincreaseof25.9%y-o-yMuchimprovedcreditqualitywithloanimpairmentchargesfellby51.9%y-o-ytoHK$271millionRobustcapitalpositionwithtotalcapitaladequacyratio(“CAR”)of18.7%,Tier1CARof14.0%andaCommonEquityTier1(“CET1”)CARof13.4%Prudentloantodepositratioof70.3%asat31December2017 -1- DahSingFinancialHoldingsLimited(“DSFH”or“theGroup”;SEHK:0440)announcedtodayitsannualresultsfortheyearended31December2017.TakingintoountthegainondisposalofDSFH’slifeinsurancebusinessestotalingHK$3.6billion,profitattributabletoshareholdersincreasedby185.7%toHK$5.4billionfortheyear.ThenormalizedprofitexcludinggainondisposaloflifeinsurancebusinessesandimpairmentlossoninvestmentinBOCQamountedtoHK$2.4billion. Earningspersharefortheyearended31December2017wasHK$16.13.DSFHgeneratedareturnonequityof23.1%,whilstthenormalizedreturnonequityexcludinggainondisposaloflifeinsurancebusinessesandtheimpairmentlossoninvestmentinBOCQwas11.1%.TheboardofdirectorsproposedatotaldividendofHK$1.35pershare(excludingspecialdividendalreadypaid)(2016:HK$1.32pershare). ProfitattributabletoshareholdersofDahSingBankingGroupLimited(“DSBG”;SEHK:2356)wasHK$2.2billionfortheyearended31December2017,whilstitsnormalizedprofitexcludingimpairmentlossoninvestmentinBOCQwasHK$3.0billion.Basicearningspershare(afterdeductionofimpairmentloss)wasHK$1.56.AfterexclusionofimpairmentchargeonBOCQ,thenormalizedreturnonequityandreturnonassetswere12.3%and1.4%respectively.TheboardofdirectorsproposedatotaldividendofHK$0.42pershare(2016:HK$0.38pershare). Fortheyearended31December2017,theGroup’soperatingperformancecontinuedtoimprove,withoperatingprofitafterloanimpairmentlossesupby33.6%toHK$2.3billion.Netinterestegrewby7.0%toHK$3.9billionduetogentleloangrowthandinterestmarginthroughouttheyear.Fullyearinterestmarginwasat1.98%,thesamelevelas2016.Netfeemissioneincreasedby25.9%toaboutHK$1.1billion.Theimprovedeconomyalsobroughtbettercreditquality,withloanimpairmentchargesfallingby51.9%toHK$271million. Asat31December2017,DSBG’sgrossadvancestocustomers,includingtradebills,wereaboutHK$123.3billionandcustomerdepositswereaboutHK$162.5billion,up4.6%and5.6%respectivelyparedto31December2016.Theloantodepositratioremainedprudentat70.3%asat31December2017. Asat31December2017,theconsolidatedCET1CARofDahSingBank,Limited(“DSB”)strengthenedto13.4%,paredwith12.7%attheendof2016,drivenmainlybyhigherretainedearnings.InDecember2017,DSBissuedUS$115millionofAdditionalTier1capitalsecuritiestoDSFH,furtherstrengtheningtheoverallTier1CARto14.0%attheyearend.TakingintoountDSB’soutstandingTier2subordinateddebts,DSBG’sTotalCARattheyearendwasrobustat18.7%. Loanimpairmentchargesfellby51.9%toHK$271million,ledmainlybydecreasesinloanimpairmentsinHongKongandMainlandmercialbankingbusinesses.The -2- improvementcontinuedsequentiallyinthesecondhalfoftheyear.Thecreditqualityinourretailbankingbusinessremainedsatisfactorythroughouttheyear. TheoperatingperformanceofBOCQremainedsatisfactory,theGroup’sshareofitsprofitwasaboutHK$0.6billionfortheyear,around4.3%higherthantheprioryear.Asat31December2017,theValueinUseofourinvestmentinBOCQfellbelowthecarryingvalueoftheinvestment,whichresultedinanon-cashimpairmentchargeofaboutHK$0.8billiontosuchcarryingvalue. pletionofthesaleofthelifeinsurancebusinesseshadbroughttotheGroupanexceptionalHK$3.6billiongainonthedisposalin2017.AspecialdividendofHK$6.6persharetotalingapproximatelyHK$2.2billionwaspaidtotheshareholdersoftheGroupon25July2017,whilstapproximatelyHK$1.5billionofnewcapitalwasinjectedintogeneralinsurancebusinessesinHongKongandMacau. “Withbetterlocalandglobaleconomicconditions,wearedelightedtoseethatthecoreoperatingperformanceoftheGrouphascontinuedtoimprove.TheGrouphasdeliveredrecordearningsthisyearafterthedisposalofthelifeassurancebusinesses.Weareveryfocusedonstrategyexecutioninourcorebankingbusinesses,whichhadagoodyearinanumberofareas.Withastrengtheningeconomyin2018,theGroupwillcontinuetogrowandinvestinourbankingandinsurancebusinesses,whilstremainingvigilanttorisksinthemarket.”saidMr.DerekWong,ManagingDirectorandChiefExecutiveofDSFHandDSBG. AboutDSFHandDSBGDSFH(stockcode:0440)hasbeenlistedontheHongKongStockExchangesince1987.Itisthepanyofthegroup’sinsurancebusiness,aswellasthemajorityshareholderofDSBG(stockcode:2356).DSBGhasbeenlistedontheHongKongStockExchangesince2004,andhasthreebankingsubsidiaries(DahSingBank,Limited,BancoComercialdeMacauandDahSingBank(China)Limited),providingbankingandfinancialservicesthroughworkofabout70branchesinHongKong,MacauandtheMainland,andasecuritiespany.DSBholdsastrategic14.7%interestinBankofChongqing,whichistheleadingmercialbankinChongqing,thedirect-controlledmunicipalityinWesternChina. DSB’slongtermratingsare“A3”(Moody’s)and“BBB+”(Fitch). -3-