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 from wealth management and, to a lesser extent, treasury. In tandem with the receding problem assets and stabilization in real estate collateral value, the bank should also benefit from the more normalized loan loss provisions. DBS Bank has a fairly
