DBS Group Holdings (DBSH) announced a 28% decline in earnings for the fiscal year ended Dec. 31, 2001 on a year-on-year basis. This does not affect Standard&Poor's ratings on Development Bank of Singapore (DBS Bank; A+/Stable/A-1), which is wholly owned by DBSH and accounts for the bulk of the DBSH result. DBSH's earnings shortfall in fiscal year 2001 was chiefly the result of larger loan-loss provisioning and amortization of goodwill charges arising from the 2001 acquisition of Dao Heng Bank Ltd. (A-/Stable/A-2). Standard&Poor's had already factored lower post-provision bank earnings, excluding goodwill amortization, in fiscal year 2001 into its ratings. Poor economic conditions are likely to see bank earnings in 2002 similarly impacted. Standard&Poor's
