DBS Group Holdings' (DBSH) earnings decline of 16% for the first half of 2002 (half-on-half) does not affect Standard&Poor's ratings on DBSH's wholly owned subsidiary Development Bank of Singapore (DBS Bank; A+/Stable/A-1). DBS Bank accounts for the bulk of the DBSH group in terms of assets, revenues, and profit. DBSH's earnings decline in the first half 2002 was chiefly the result of larger loan-loss provisioning and the amortization of goodwill charges arising from the acquisition of Dao Heng Bank Ltd. (A-/Stable/A-2) in 2001. Standard&Poor's normal rating methodology conservatively deducts all goodwill against equity when computing capitalization ratios. In turn, Standard&Poor's tends to focus on net after-tax profit before goodwill amortization. If goodwill amortization is
