General Announcement::DBS' RESPONSE TO MAS' ACTIONS ON DIGITAL DISRUPTION

Issuer & Securities

Issuer/ Manager
DBS GROUP HOLDINGS LTD
Securities
DBS GROUP HOLDINGS LTD - SG1L01001701 - D05
Stapled Security
No

Announcement Details

Announcement Title
General Announcement
Date &Time of Broadcast
07-Feb-2022 20:21:28
Status
New
Announcement Sub Title
DBS' RESPONSE TO MAS' ACTIONS ON DIGITAL DISRUPTION
Announcement Reference
SG220207OTHRAXLR
Submitted By (Co./ Ind. Name)
TEOH CHIA-YIN
Designation
JOINT GROUP SECRETARY
Description (Please provide a detailed description of the event in the box below)
DBS refers to the Monetary Authority of Singapore's (MAS) announcement today in relation to the digital disruption in November 2021 (https://www.mas.gov.sg/news/media-releases/2022/mas-imposes-additional-capital-requirement-on-dbs-bank). DBS' response is below:

Said DBS CEO Piyush Gupta, "In a digital era, customers rightly expect to have seamless and uninterrupted access to online banking services 24/7. This is something we take very seriously. Since the November incident, DBS has taken a series of actions to improve the resilience of our services and incident response. These actions are but a starting point. Over the course of the next few months, together with an independent expert, we will continue to review our systems and processes to ensure that we do better going forward.

MAS' supervisory action requires DBS to set aside additional capital amounting to 1.5 times risk-weighted assets for operational risk. This translates to approximately SGD 930 million in regulatory capital as at 30 September 2021, and will have a 0.4% point impact on DBS Group's capital ratios till remedial actions are completed. Inclusive of the capital impact arising from the Citibank Taiwan consumer banking acquisition, DBS' pro-forma CET-1 ratio as at 30 September 2021 would be 13.4%. The pro-forma ratio is at the upper end of our target CET-1 range, and hence will have no impact on dividend policy.