Improving asset quality and operating performance. Diversified earnings base. Solid franchise in its core Singapore market, and relatively significant presence in Hong Kong. Sound liquidity and funding. Competitive pricing pressure. Higher exposure to treasury market conditions compared with domestic peers. The ratings on DBS Bank Ltd. acknowledge the continuous improvement in its financial profile, particularly its asset quality and operating performance. Its strong credit risk profile is sustained by the bank's robust risk management systems and reflects a greater concentration in lower risk mortgage financing and the de-consolidation of its Thai operations. The ratings also incorporate improvement in the bank's profitability, which can be expected to benefit from better top-line growth and its ability in generating sustainable nonlending income, especially
