— 1 —
(Incorporated in Hong Kong with limited liability under the Companies Ordinance)
The holding company of Dah Sing Bank, Limited and MEVAS Bank Limited
(Stock Code: 2356)
ANNOUNCEMENT OF 2007 INTERIM RESULTS

The Directors of Dah Sing Banking Group Limited (the “Company”) are pleased to present the interim results
and condensed consolidated financial statements of the Company and its subsidiaries (collectively the “Group”)
for the six months ended 30 June 2007. The unaudited profit attributable to shareholders after minority interests
was HK$616.1 million for the six months ended 30 June 2007.
UNAUDITED INTERIM FINANCIAL STATEMENTS

The unaudited 2007 interim condensed consolidated financial statements of the Group have been prepared in
accordance with Hong Kong Accounting Standard No. 34 “Interim Financial Reporting” issued by the Hong
Kong Institute of Certified Public Accountants.
UNAUDITED CONSOLIDATED INCOME STATEMENT

For the six months ended 30 June
Restated
HK$’000 Note 2007 2006 Variance
%
Interest income 2,797,970 2,436,034
Interest expense (1,773,975) (1,478,009)
Net interest income 3 1,023,995 958,025 6.9
Fee and commission income 348,763 293,343
Fee and commission expense (48,014) (40,027)
Net fee and commission income 4 300,749 253,316 18.7
Net trading income/(loss) 5 8,575 (10,078)
Other operating income 6 25,329 42,352
Operating income 1,358,648 1,243,615 9.2
Operating expenses 7 (626,970) (560,464) 11.9
Operating profit before impairment losses
on loans and advances 731,678 683,151 7.1
Impairment losses on loans and advances 8 (87,854) (75,270) 16.7

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UNAUDITED CONSOLIDATED INCOME STATEMENT (Continued)
For the six months ended 30 June
Restated
HK$’000 Note 2007 2006 Variance
%
Operating profit before gains on
certain investments and fixed assets 643,824 607,881 5.9
Net gain/(loss) on disposal of fixed assets 452 (17)
Net gain on disposal of interests in subsidiaries – 4,048
Net gain on disposal of available-for-sale securities 81,314 62,403
Share of results of jointly controlled entities 4,339 2,675
Reversal of impairment losses on
available-for-sale securities – 25,891
Profit before income tax 729,929 702,881 3.8
Income tax expense 9 (111,033) (133,729)
Profit for the period 618,896 569,152 8.7
Profit attributable to minority interests (2,819) (2,849)
Profit attributable to shareholders
of the Company 616,077 566,303 8.8
Dividend 232,854 232,854
Earnings per share
Basic 10 HK$0.66 HK$0.61
Diluted 10 HK$0.66 HK$0.61
Dividend per share
Interim dividend HK$0.25 HK$0.25

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UNAUDITED CONSOLIDATED BALANCE SHEET

As at As at
HK$’000 Note 30 June 2007 31 Dec 2006
ASSETS

Cash and balances with banks 5,727,997 6,988,137
Placements with banks maturing between
one and twelve months 1,265,051 596,659
Trading securities 8,398,564 4,792,830
Financial assets at fair value through profit or loss 1,266,015 1,276,671
Derivative financial instruments 11 744,232 366,708
Advances and other accounts 12 60,041,637 51,730,681
Available-for-sale securities 34,365,020 32,923,713
Held-to-maturity securities 189,075 300,701
Investments in jointly controlled entities 41,531 37,192
Goodwill 811,690 811,690
Intangible assets 157,287 168,663
Premises and other fixed assets 1,376,538 1,386,636
Investment properties 657,909 642,140
Current income tax assets 10,769 10,763
Deferred income tax assets 416 3,377
Total assets 115,053,731 102,036,561
LIABILITIES

Deposits from banks 2,607,622 1,678,259
Derivative financial instruments 11 524,931 317,655
Trading liabilities 8,469,893 6,526,233
Deposits from customers designated at
fair value through profit or loss 3,706,712 3,393,048
Deposits from customers 66,293,889 63,885,058
Certificates of deposit issued 10,064,051 8,768,472
Issued debt securities 2,309,668 2,299,574
Subordinated notes 5,004,716 3,480,127
Other accounts and accruals 6,270,993 2,138,677
Current income tax liabilities 149,381 79,268
Deferred income tax liabilities 135,730 134,949
Total liabilities 105,537,586 92,701,320
EQUITY

Minority interests 21,931 19,000
Equity attributable to the Company’s shareholders
Share capital 931,416 931,416
Retained earnings 5,036,467 4,653,244
Other reserves 13 3,293,477 3,312,444
Proposed dividend 232,854 419,137
Shareholders’ funds 9,494,214 9,316,241
Total equity 9,516,145 9,335,241
Total equity and liabilities 115,053,731 102,036,561

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UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six months ended 30 June 2007
Attributable to the Shareholders of the Company
Share Share Other Retained Minority Total
HK$’000 capital premium reserves earnings interests equity
Balance at 1 January 2007 931,416 2,209,149 1,103,295 5,072,381 19,000 9,335,241
Fair value gains on available-for-sale securities – – 62,269 – 14 62,283
Disposal of available-for-sale securities – – (81,314) – – (81,314)
Deferred income tax liabilities recognised on
fair value gains on and disposal of
available-for-sale securities – – (276) (276)
Exchange differences arising on translation
of the financial statements of foreign entities – – 354 – 98 452
Net (expense)/income recognised directly in equity – – (18,967) – 112 (18,855)
Profit for the period – – – 616,077 2,819 618,896
Total recognised (expense)/income for the
six months ended 30 June 2007 – – (18,967) 616,077 2,931 600,041
2006 final dividend – – – (419,137) – (419,137)
– – – (419,137) – (419,137)
Balance at 30 June 2007 931,416 2,209,149 1,084,328 5,269,321 21,931 9,516,145
Six months ended 30 June
2007 2006

Proposed interim dividend included in retained earnings 232,854 232,854

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UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Continued)
For the six months ended 30 June 2007
Attributable to the Shareholders of the Company
Share Share Other Retained Minority Total
HK$’000 capital premium reserves earnings interests equity
Balance at 1 January 2006 931,416 2,209,149 1,044,862 4,463,187 24,692 8,673,306
Fair value (losses)/gains on
available-for-sale securities – – (108,049) – 26 (108,023)
Disposal of available-for-sale securities – – (62,403) – – (62,403)
Deferred tax liabilities released on fair
value losses on and disposal of
available-for-sale securities – – 27,960 – – 27,960
Exchange differences arising on translation
of the financial statements of
a foreign subsidiary – – 88 – (32) 56
Net expense recognised directly in equity – – (142,404) – (6) (142,410)
Profit for the period – – – 566,303 2,849 569,152
Total recognised (expense)/income for
the six months ended 30 June 2006 – – (142,404) 566,303 2,843 426,742
Disposal of interests in subsidiaries ––––(6,258) (6,258)
2005 final dividend – – – (353,938) – (353,938)
– – – (353,938) (6,258) (360,196)
Balance at 30 June 2006 931,416 2,209,149 902,458 4,675,552 21,277 8,739,852

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UNAUDITED CONSOLIDATED CASH FLOW STATEMENT

For the six months ended 30 June
HK$’000 2007 2006
Net cash from/(used in) operating activities 322,669 (2,687,264)
Cash flows from investing activities
Purchase of investment properties (15,769) (20,059)
Purchase of fixed assets (31,114) (12,899)
Proceeds from disposal of fixed assets 469 –
Disposal of interests in subsidiaries
(net of cash and cash equivalents disposed of) – 279,470
Net cash (used in)/from investing activities (46,414) 246,512
Cash flows from financing activities
Certificates of deposit issued 1,869,541 2,038,761
Certificates of deposit redeemed (596,661) (1,306,741)
Subordinated notes issued 1,562,570 1,162,210
Subordinated notes redeemed – (970,069)
Dividends paid on ordinary shares (419,137) (353,938)
Net cash from financing activities 2,416,313 570,223
Net increase/(decrease) in cash and cash equivalents 2,692,568 (1,870,529)
Cash and cash equivalents at beginning of the period 11,262,102 12,691,736
Cash and cash equivalents at end of the period 13,954,670 10,821,207
Analysis of the balance of cash and cash equivalents:
Cash and balances with banks 1,854,345 1,588,211
Money at call and short notice 3,873,652 3,877,212
Treasury bills with original maturity within three months 6,961,622 4,743,267
Placements with banks with original maturity within three months 1,265,051 1,125,051
Deposits and balances of banks with original maturity
within three months – (512,534)
13,954,670 10,821,207

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Note:
1. GENERAL INFORMATION

Dah Sing Banking Group Limited (the “Company”) is a bank holding company. Its principal subsidiaries include
Dah Sing Bank, Limited and MEVAS Bank Limited, both are licensed banks in Hong Kong. The Company together
with its subsidiaries (collectively the “Group”) provide banking, financial and other related services.
2. BASIS OF PREPARATION AND ACCOUNTING POLICIES

With effect from 1 January 2007, interest income or expense arising from trading assets and liabilities, financial
instruments designated at fair value through profit or loss, and interest rate derivatives not held for trading purposes
are reported under “Interest income” and “Interest expense” instead of “Net trading (loss)/income” in the previous
reporting periods. Comparative figures have been restated to conform with the current period’s presentation. This
revised classification has been made mainly to match interest expense on financial liabilities designated at fair
value through profit or loss with the interest income and expense of the interest rate derivatives entered to hedge
these liabilities. This revised classification also facilitates comparison of the Group’s net interest income and net
interest margin with other banks in the industry.
With the exception of the restatement described above, the accounting policies and methods of computation used
in the preparation of the 2007 interim financial statements are consistent with those used and described in the
Group’s annual audited financial statements for the year ended 31 December 2006. The Group has not early
adopted Hong Kong Financial Reporting Standard No. 7 “Financial Instruments: Disclosure” and the Amendment
to Hong Kong Accounting Standard No. 1 “Presentation of Financial Statements – Capital disclosures” in its
2007 interim financial statements. The Group has assessed that the adoption of these new standards will result in
more qualitative and quantitative disclosures primarily related to fair value measurement and risk management
but they will have no effect on the Group’s results of operations or financial position.
The 2007 interim condensed consolidated financial statements have been prepared in accordance with the
requirements set out in the Banking (Disclosure) Rules issued by the Hong Kong Monetary Authority (“HKMA”)
under section 60A of the Banking Ordinance (Cap. 155) as amended by the Banking (Amendment) Ordinance
2005 (19 of 2005).
The interim condensed consolidated financial statements are presented in thousands of Hong Kong dollars
(HK$’000), unless otherwise stated.

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3. NET INTEREST INCOME

For the six months ended 30 June
Restated
2007 2006

Interest income arising from:
Cash and balances with banks 137,306 197,298
Debt securities held 908,722 671,581
Advances and other accounts 1,750,565 1,564,550
Others 1,377 2,605
2,797,970 2,436,034

Interest expense arising from:
Deposits from banks/Deposits from customers 1,303,897 1,125,272
Certificates of deposit issued 214,027 171,175
Issued debt securities 66,642 58,868
Subordinated notes 147,995 82,949
Others 41,414 39,745
1,773,975 1,478,009

Restated
2007 2006

Included within interest income:
Interest income on financial assets not designated at
fair value at profit or loss 2,752,053 2,385,893
Interest income on impaired loans 2,716 1,925
Included within interest expense:
Interest expense on financial liabilities not designated at
fair value through profit or loss 1,500,014 1,284,651

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4. NET FEE AND COMMISSION INCOME

For the six months ended 30 June
2007 2006

Fee and commission income
Credit related fees and commissions 29,245 31,256
Trade finance 31,077 31,729
Credit card 99,159 92,865
Securities brokerage and investment services 56,495 32,463
Insurance distribution and others 26,790 22,165
Retail investment funds and fiduciary services 71,348 59,126
Other fees 34,649 23,739
348,763 293,343

Fee and commission expense
Handling fees and commission paid 41,927 33,994
Other fees paid 6,087 6,033
48,014 40,027
300,749 253,316

5. NET TRADING INCOME/(LOSS)
For the six months ended 30 June
Restated
2007 2006

Net gain arising from dealing in foreign currencies 49,555 53,154
Net loss from trading securities (10,920) (20,018)
Net loss from derivatives entered into for trading purpose (10,534) (1,927)
28,101 31,209

Net loss arising from financial instruments designated
at fair value through profit or loss (19,526) (41,287)
8,575 (10,078)

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6. OTHER OPERATING INCOME

For the six months ended 30 June
2007 2006

Dividend income from investments in available-for-sale securities
– listed investments 1,252 34
– unlisted investments 2,988 20,995
Gross rental income from investment properties 8,598 7,353
Other rental income 3,458 3,318
Others 9,033 10,652
25,329 42,352
7. OPERATING EXPENSES

For the six months ended 30 June
2007 2006

Staff costs (including directors’ remuneration) 368,318 311,097
Premises and other fixed assets expenses, excluding depreciation 67,643 58,255
Depreciation 41,195 41,479
Advertising cost 41,056 36,789
Amortisation of intangible assets 11,376 18,226
Others 97,382 94,618
626,970 560,464
8. IMPAIRMENT LOSSES ON LOANS AND ADVANCES

For the six months ended 30 June
2007 2006

Net charge of impairment losses on loans and advances
– Individually assessed 27,520 41,084
– Collectively assessed 60,334 34,186
87,854 75,270

Of which:
– new and additional 139,959 128,772
– releases (9,064) –
– recoveries (43,041) (53,502)
87,854 75,270

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9. INCOME TAX EXPENSE

Hong Kong profits tax has been provided at the rate of 17.5% (2006: 17.5%) on the estimated assessable profit for
the period. Taxation on overseas profits has been calculated on the estimated assessable profit for the period at the
rates of taxation prevailing in the countries in which the Group operates.
Deferred taxation is calculated in full on temporary differences under the liability method using a taxation rate of
17.5% (2006: 17.5%).
For the six months ended 30 June
2007 2006

Current income tax
– Hong Kong profits tax 97,577 103,100
– Overseas taxation 9,990 7,065
Deferred income tax
– relating to the origination and reversal of timing differences – 23,564
– utilisation of tax losses 3,466 –
111,033 133,729
10. BASIC AND DILUTED EARNINGS PER SHARE

The calculation of basic earnings per share is based on earnings of HK$616,077,000 (2006: HK$566,303,000)
and the weighted average number of 931,416,279 (2006: 931,416,279) shares in issue during the period.
The calculation of diluted earnings per share is based on earnings of HK$616,077,000 (2006: HK$566,303,000)
and the weighted average number of 931,587,673 (2006: 931,451,321) shares in issue during the period after
adjusting for the effect of all dilutive potential ordinary shares as shown below:
Number of shares 2007 2006
Weighted average number of ordinary shares as at 30 June 931,416,279 931,416,279
Adjustments for share options 171,394 35,042
Weighted average number of ordinary shares for diluted
earnings per share as at 30 June 931,587,673 931,451,321

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11. DERIVATIVE FINANCIAL INSTRUMENTS

The notional principal amounts of outstanding derivatives contracts and their fair values were as follows:
As at 30 Jun 2007 As at 31 Dec 2006
Contract/ Contract/
notional Fair values notional Fair values
amount Assets Liabilities amount Assets Liabilities
1) Derivatives held for trading
a) Foreign exchange derivatives
Forward and future contracts 62,018,059 156,929 194,637 49,360,369 131,565 56,427
Currency swaps 1,139,355 86,937 22,348 1,370,700 45,470 27,559
Currency options purchased
and written 1,023,434 1,559 1,559 545,816 957 957
b) Interest rate derivatives
Interest rate swaps 27,706,177 36,724 192,451 19,812,762 41,305 124,765
Interest rate options
purchased and written 608,412 863 863 606,320 1,447 1,447
c) Equity derivatives
Equity options purchased
and written 97,050 587 587 125,720 1,701 1,701
d) Credit derivatives
Credit default swaps 703,620 3,114 834 1,088,913 6,570 1,322
Total derivatives held for trading 93,296,107 286,713 413,279 72,910,600 229,015 214,178
2) Derivatives held for hedging
a) Derivatives designated
as fair value hedges
Interest rate swaps 15,918,981 457,519 111,652 10,684,881 137,693 103,477
Total derivatives held for hedging 15,918,981 457,519 111,652 10,684,881 137,693 103,477
Total recognised derivative
financial instruments 109,215,088 744,232 524,931 83,595,481 366,708 317,655

— 13 —
As at 30 June 2007, the credit risk weighted amounts of the above off-balance sheet exposures (including credit
default swaps) calculated under Basel II basis and without taking into account the effect of bilateral netting
arrangements that the Group entered into, are as follows:
As at As at
30 Jun 2007 31 Dec 2006
Derivatives
– Exchange rate contracts 351,698 140,229
– Interest rate contracts 186,011 111,404
– Equity contracts 3,009 2,524
– Other contracts 3,435 –
544,153 254,157

As at 31 December 2006, the credit risk weighted amount of credit default swaps calculated under Basel I basis
amounting to HK$855,575,000 is included in the total credit risk weighted amount of contingent liabilities and
commitments in Note 14.
12. ADVANCES AND OTHER ACCOUNTS

As at As at
30 Jun 2007 31 Dec 2006
Gross advances to customers 56,244,648 49,908,688
Gross advances to banks and other financial institutions 153,307 155,102
Trade bills 853,433 694,604
Accounts receivable on sale of investments in securities 1,504,592 300
Other assets 1,643,935 1,327,084
Gross advances and other accounts 60,399,915 52,085,778
Less: impairment allowances
– Individually assessed (136,782) (136,746)
– Collectively assessed (221,496) (218,351)
(358,278) (355,097)
Advances and other accounts 60,041,637 51,730,681

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(a) Gross advances to customers by industry sector classified according to the usage of loans and analysed by
percentage covered by collateral
As at 30 Jun 2007 As at 31 Dec 2006
% of gross % of gross
advances advances
Outstanding covered Outstanding covered
balance by collateral Balance by collateral
Loans for use in Hong Kong
Industrial, commercial and financial
– Property development 422,178 99.6 409,887 99.9
– Property investment 7,698,075 90.9 6,107,283 94.6
– Financial concerns 454,294 75.6 424,368 82.6
– Stockbrokers 71,882 38.8 49,845 38.2
– Wholesale and retail trade 1,071,147 87.0 1,086,361 87.5
– Manufacturing 1,300,005 70.3 1,334,677 74.9
– Transport and transport equipment 3,878,237 92.5 3,563,617 91.2
– Recreational activities 61,512 21.9 49,086 2.4
– Information technology 36,237 2.9 36,087 4.0
– Others 1,940,883 80.9 1,325,409 82.9
16,934,450 87.5 14,386,620 89.4

Individuals
– Loans for the purchase of flats
in Home Ownership Scheme,
Private Sector Participation
Scheme and Tenants
Purchase Scheme 1,843,010 99.7 1,850,462 99.7
– Loans for purchase of other
residential properties 11,553,318 99.7 10,917,179 99.5
– Credit card advances 3,221,049 – 3,154,851 –
– Others 6,728,853 50.9 5,614,419 53.7
23,346,230 71.9 21,536,911 73.0

Loans for use in Hong Kong 40,280,680 78.4 35,923,531 79.6
Trade finance 4,614,828 50.9 4,385,560 45.5
Loans for use outside Hong Kong 11,349,140 74.8 9,599,597 70.4
56,244,648 75.4 49,908,688 74.8

— 15 —
For each industry sector reported above with loan balance constituting 10% or more of the total balance of advances
to customers, the attributable amount of impaired loans, overdue loans, and individually and collectively assessed
loan impairment allowances are as follows:
As at 30 Jun 2007
Gross
advances Individually Collectively
overdue for assessed assessed
Outstanding Impaired over 3 impairment impairment
balance loans months allowances allowances
Loans for use in Hong Kong
Industrial, commercial and financial
– Property investment 7,698,075 – 1,122 – 12,627
Individuals
– Loans for purchase of other
residential properties 11,553,318 3,193 14,667 1,366 5,852
As at 31 Dec 2006
Gross
advances Individually Collectively
overdue for assessed assessed
Outstanding Impaired over 3 impairment impairment
balance loans months allowances allowances
Loans for use in Hong Kong
Industrial, commercial and financial
– Property investment 6,107,283 6,590 8,105 2,214 12,672
Individuals
– Loans for purchase of other
residential properties 10,917,179 10,320 23,694 3,739 11,854

— 16 —
(b) Non-bank Mainland exposures
As at 30 Jun 2007
Individually
assessed
On-balance Off-balance impairment
Type of counterparties sheet exposure sheet exposure Total allowances
Mainland entities 1,697,301 5,662 1,702,963 –
Companies and individuals
outside Mainland where
the credits are granted for
use in the Mainland 9,407,525 797,874 10,205,399 52,991
Other counterparties the
exposures to whom are
considered by the Group
to be non-bank Mainland
exposures 63,342 6,501 69,843 –
As at 31 Dec 2006
Individually
assessed
On-balance Off-balance impairment
Type of counterparties sheet exposure sheet exposure Total allowances
Mainland entities 1,835,834 2,187 1,838,021 –
Companies and individuals
outside Mainland where
the credits are granted for
use in the Mainland 8,415,195 767,331 9,182,526 78,942
Other counterparties the
exposures to whom are
considered by the Group
to be non-bank Mainland
exposures 41,904 2,496 44,400 –
Note: The balances of exposures reported above include gross advances and other balances of claims on the
customers.
(c) Analysis of gross advances to customers and overdue loans by geographical area
Advances to customers by geographical area are classified according to the location of the counterparties
after taking into account the transfer of risk. In general, risk transfer applies when an advances is guaranteed
by a party located in an area which is different from that of the counterparty.
At 30 June 2007, over 90% of the Group’s advances to customers, including related impaired advances and
overdue advances, were classified under Hong Kong (a position unchanged from that as at 31 December
2006).

— 17 —
(d) Impaired, overdue and rescheduled assets
(i) Impaired loans
As at As at
30 Jun 2007 31 Dec 2006
Gross impaired loans (Note (a)) 215,477 254,533
As a percentage of total advances to customers 0.38% 0.51%
Individual impairment allowances 136,782 136,746
Amount of collateral held 81,764 122,343
Note:
a. Impaired loans are defined as those loans having objective evidence of impairment as a result
of one or more events that occurred after the initial recognition of the asset (a “loss event”) and
that loss event has an impact on the estimated future cash flows of the loans that can be reliably
estimated. Impaired loans are individually determined to be impaired.
b. The above individual impairment allowances were made after taking into account the value of
collateral in respect of such advances as at 30 June/31 December.
(ii) Overdue loans
% of total % of total
As at advances As at advances
30 Jun 2007 to customers 31 Dec 2006 to customers
Gross advances to customers
which have been overdue for:
– six months or less but
over three months 97,210 0.17 99,855 0.20
– one year or less but
over six months 66,662 0.12 61,973 0.12
– over one year 103,872 0.19 119,804 0.24
267,744 0.48 281,632 0.56

Market value of securities held
against the secured
overdue advances 169,342 168,065
Secured overdue advances 113,635 133,324
Unsecured overdue advances 154,109 148,308
Individual impairment allowances 118,002 118,518

— 18 —
(iii) Rescheduled advances net of amounts included in overdue advances shown above
% of total % of total
As at advances As at advances
30 Jun 2007 to customers 31 Dec 2006 to customers
Rescheduled advances 62,285 0.11 69,106 0.14
Impairment allowances 2,862 6,886
There were no advances to banks and other financial institutions, which were impaired, overdue for
over 3 months or rescheduled as at 30 June 2007 and 31 December 2006.
(iv) Trade bills
As at As at
30 Jun 2007 31 Dec 2006
Overdue for:
– six months or less but over three months 935 –
– one year or less but over six months 1,180 –
2,115 –
(e) Repossessed assets
The repossessed assets of the Group were as follows:
As at As at
30 Jun 2007 31 Dec 2006
Repossessed properties 20,506 31,485
Others 9,206 738
29,712 32,223
13. OTHER RESERVES

As at As at
30 Jun 2007 31 Dec 2006
Reserves
Share premium 2,209,149 2,209,149
Consolidation reserve (220,986) (220,986)
Premises revaluation reserve 621,018 621,018
Investment revaluation reserve (16,193) 3,128
Exchange reserve 235 (119)
General reserve 700,254 700,254
3,293,477 3,312,444

— 19 —
The Group complies with the requirement of the HKMA to maintain loan impairment allowances (determined in
accordance with regulatory guidelines) in excess of those determined in accordance with Hong Kong Accounting
Standards. Dah Sing Bank (“DSB”) together with its subsidiaries and MEVAS Bank (“MEVAS”) have earmarked
a “Regulatory Reserve” from general reserve for an amount of HK$365,608,000 (31 December 2006:
HK$313,999,000) and HK$10,367,000 (31 December 2006: Nil) respectively which, together with their collective
impairment allowances after the adoption of HKAS 39, is included as supplementary capital in their capital bases
as at 30 June 2007. The regulatory reserve of DSB and MEVAS are not distributable without the consent of the
HKMA.
14 CONTINGENT LIABILITIES AND COMMITMENTS

The contract and credit risk weighted amounts of the Group’s off-balance sheet financial instruments that commit
it to extend credit to customers are as follows:
Contract amounts
As at As at
30 Jun 2007 31 Dec 2006
Direct credit substitutes 618,249 1,628,553
Transaction related contingencies 276 4,576
Trade-related contingencies 1,070,787 1,066,214
Other commitments which are unconditionally cancelable 27,738,630 24,612,456
Other commitments with an original maturity of:
– under 1 year 6,608,256 7,725,382
– 1 year and over 2,206,043 790,570
Forward forward deposits placed 115,403 1,923,185
38,357,644 37,750,936

Credit risk weighted amounts
As at As at
30 Jun 2007 31 Dec 2006
Contingent liabilities and commitments 2,536,705 2,287,097

— 20 —
15. CROSS-BORDER CLAIMS

Equivalent in HK$ millions
As at 30 Jun 2007
Banks and
other financial Public
institutions sector entities Others Total
Asia Pacific excluding Hong Kong 7,710 250 8,818 16,778
North and South America 642 – 2,733 3,375
Europe 14,039 – 4,201 18,240
22,391 250 15,752 38,393

As at 31 Dec 2006
Banks and
other financial Public
institutions sector entities Others Total
Asia Pacific excluding Hong Kong 7,840 – 6,088 13,928
North and South America 917 – 2,203 3,120
Europe 15,297 – 3,856 19,153
24,054 – 12,147 36,201
The information of cross-border claims discloses exposures to foreign counterparties on which the ultimate risk
lies, and is derived according to the location of the counterparties after taking into account any transfer of risk. In
general, transfer of risk from one country to another is recognised if the claims against a counterparty are guaranteed
by another party in a different country or if the claims are on an overseas branch of a bank whose head office is
located in a different country. Only regions constituting 10% or more of the aggregate cross-border claims are
disclosed.

— 21 —
16. SEGMENT REPORTING

(A) By business segments
For the six months ended 30 June 2007
Personal Commercial
Banking Banking Treasury Unallocated Elimination Total
Interest income from
– external customers 872,855 932,410 978,899 13,806 – 2,797,970
– inter-segments 632,899 – 10 423,648 (1,056,557) –
Interest expense to
– external customers (993,508) (251,388) (160,551) (368,528) – (1,773,975)
– inter-segments 3,799 (318,854) (741,502) – 1,056,557 –
Net interest income 516,045 362,168 76,856 68,926 – 1,023,995
Net fee and commission
income/(expense) 229,246 63,401 (734) 8,836 – 300,749
Net trading income/(loss) and
other operating income 8,443 10,107 17,702 (2,348) – 33,904
Operating income 753,734 435,676 93,824 75,414 – 1,358,648
Operating expenses (422,342) (142,386) (42,893) (19,349) – (626,970)
Operating profit before
impairment losses on
loans and advances 331,392 293,290 50,931 56,065 – 731,678
Impairment losses on loans
and advances (42,241) (45,636) 23 – – (87,854)
Operating profit before gains
on certain investments and
fixed assets 289,151 247,654 50,954 56,065 – 643,824
Net (loss)/gain on disposal of
fixed assets (29) (4) – 485 – 452
Net (loss)/gain on disposal of
available-for-sale securities (13) – 77,434 3,893 – 81,314
Share of results of jointly
controlled entities – – – 4,339 – 4,339
Profit before income tax 289,109 247,650 128,388 64,782 – 729,929
As at 30 June 2007
Total assets 27,670,126 31,743,952 53,371,073 2,268,580 – 115,053,731
Total liabilities 53,135,235 14,419,804 22,993,700 14,988,847 – 105,537,586
For the six months ended
30 June 2007
Depreciation 21,097 9,257 3,003 7,838 – 41,195
Capital expenditure incurred 20,750 1,907 496 7,961 – 31,114

— 22 —
For the six months ended 30 June 2006
(Restated)
Personal Commercial
Banking Banking Treasury Unallocated Elimination Total
Interest income from
– external customers 820,726 810,876 797,636 6,796 – 2,436,034
– inter-segments 584,940 – 107 328,828 (913,875) –
Interest expense to
– external customers (893,475) (221,781) (104,256) (258,497) – (1,478,009)
– inter-segments (12,996) (244,238) (656,606) (35) 913,875 –
Net interest income 499,195 344,857 36,881 77,092 – 958,025
Net fee and commission
income 182,500 58,779 4,123 7,914 – 253,316
Net trading income/(loss)
and other operating income 12,750 6,473 58,796 (45,745) – 32,274
Operating income 694,445 410,109 99,800 39,261 – 1,243,615
Operating expenses (382,861) (131,978) (28,719) (16,906) – (560,464)
Operating profit before impairment
losses on loans and advances 311,584 278,131 71,081 22,355 – 683,151
Impairment losses on loans
and advances (25,210) (50,078) – 18 – (75,270)
Operating profit before gains on
certain investments and
fixed assets 286,374 228,053 71,081 22,373 – 607,881
Net loss on disposal of fixed assets (12) – – (5) – (17)
Net gain on disposal of interests
in subsidiaries – – – 4,048 – 4,048
Net (loss)/gain on disposal of
available-for-sale securities (6) – 62,409 – – 62,403
Share of results of jointly
controlled entities – – – 2,675 – 2,675
Reversal of impairment losses
on available-for-sale securities – – 25,891 – – 25,891
Profit before income tax 286,356 228,053 159,381 29,091 – 702,881
As at 31 December 2006
Total assets 24,952,007 27,542,139 47,003,768 2,538,647 – 102,036,561
Total liabilities 50,418,508 14,752,513 15,672,008 11,858,291 – 92,701,320
For the period ended 30 June 2006
Depreciation 26,780 9,299 2,090 3,310 – 41,479
Capital expenditure incurred 9,709 822 323 2,045 – 12,899

— 23 —
Personal banking business includes the acceptance of deposits from individual customers and the extension
of residential mortgage lending, personal loans, overdraft and credit card services, the provision of insurance
sales and investment services.
Commercial banking business includes the acceptance of deposits from and the advance of loans and working
capital finance to commercial, industrial and institutional customers, and the provision of trade financing.
Hire purchase finance and leasing related to equipment, vehicle and transport financing are included.
Treasury activities are mainly the provision of foreign exchange services and centralised cash management
for deposit taking and lending, interest rate risk management, management of investment in securities and
the overall funding of the Group.
Unallocated items include results of operations and corporate investments (including properties) not directly
identified under other business divisions.
(B) By geographical segments
Hong Kong Inter-segment
and others Macau elimination Total
For the six months ended 30 June 2007
Operating income 1,214,360 144,288 – 1,358,648
Profit before income tax 663,897 66,032 – 729,929
Profit for the period 562,160 56,736 – 618,896
Depreciation 32,697 8,498 – 41,195
Capital expenditure incurred 26,669 4,445 – 31,114
As at 30 June 2007
Total assets 105,153,199 10,991,991 (1,091,459) 115,053,731
Total liabilities 97,253,348 9,375,697 (1,091,459) 105,537,586
Contingent liabilities and commitments 45,183,045 1,947,679 – 47,130,724
Hong Kong Inter-segment
and others Macau elimination Total
For the six months ended 30 June 2006
Operating income 1,113,958 129,657 – 1,243,615
Profit before income tax 649,761 53,120 – 702,881
Profit for the period 522,766 46,386 – 569,152
Depreciation 32,614 8,865 – 41,479
Capital expenditure incurred 9,901 2,998 – 12,899
As at 31 December 2006
Total assets 93,575,958 10,346,607 (1,886,004) 102,036,561
Total liabilities 85,804,297 8,783,027 (1,886,004) 92,701,320
Contingent liabilities and commitments 43,160,412 1,975,726 (163,408) 44,972,730

— 24 —
17. CURRENCY CONCENTRATIONS

Equivalent in HK$ millions
The following sets out the Group’s net foreign exchange position in USD and other individual currency that
constitutes more than 10% of the total net position in all foreign currencies as at 30 June 2007 and the corresponding
comparative balances.
At 30 Jun 2007 USD CNY MOP Total
Spot assets 28,924 837 3,763 33,524
Spot liabilities (28,383) (846) (4,364) (33,593)
Forward purchases 31,837 617 – 32,454
Forward sales (32,190) (115) – (32,305)
Net long/(short) position 188 493 (601) 80
At 31 Dec 2006 USD CNY MOP Total
Spot assets 29,246 739 3,053 33,038
Spot liabilities (24,386) (727) (3,955) (29,068)
Forward purchases 23,693 – – 23,693
Forward sales (26,928) – – (26,928)
Net long/(short) position 1,625 12 (902) 735
18. CAPITAL ADEQUACY RATIO

As at As at
30 Jun 2007 31 Dec 2006
Basel II basis Basel I basis
Capital adequacy ratio
– Tier 1 9.8% 12.2%
– Overall 17.1% 16.6%
Adjusted capital adequacy ratio (under Basel I basis) 16.6%
The capital adequacy ratio as at 30 June 2007 represents the combined ratio of Dah Sing Bank, Limited (“DSB”),
MEVAS Bank Limited (“MEVAS”) and D.A.H. Hambros Bank (Channel Islands) Limited (“DAHCI”) computed
on Basel II basis with reference to the Banking (Capital) Rules. This capital adequacy ratio takes into account
market risk and operational risk.
The capital adequacy ratio as at 31 December 2006 represents the combined ratio of DSB, MEVAS and DAHCI
computed on Basel I basis with reference to the methods set out in the then Third Schedule of the Banking
Ordinance.
The adjusted capital adequacy ratio represents the combined ratio of DSB, MEVAS and DAHCI as at 31 December
2006 computed on Basel I basis with reference to the methods set out in the Supervisory Policy Manual entitled
“Maintenance of Adequate Capital Against Market Risks” issued by the HKMA. The adjusted ratio takes into
account market risk as at 31 December 2006.

— 25 —
The combined capital base of the Group computed on the basis of the Banking Ordinance is set out below:
As at As at
30 Jun 2007 31 Dec 2006
Basel II basis Basel I basis
Core capital
Paid up ordinary share capital 2,707,749 2,707,749
Share premium 55,519 55,519
Published reserves 5,218,375 4,791,802
Profit and loss account 183,391 511,762
Classified as regulatory reserve (346,845) (284,869)
Less: goodwill (318,667) (318,667)
Less: Other intangible assets and net deferred tax assets (10,722) –
Less: 50% of total amount of deductible items (1,118,623) –
Total core capital 6,370,177 7,463,296
Supplementary capital
Reserves attributable to fair value gains on revaluation
of holdings of land and buildings 238,402 238,402
Reserves attributable to fair value gains on revaluation of
holdings of available-for-sale equities and debt securities (15,636) 2,098
Regulatory reserve 346,845 284,869
Collective impairment allowances for impaired assets 195,560 195,836
Perpetual subordinated debt 1,581,441 –
Term subordinated debt 3,494,759 3,480,127
Less: 50% of total amount of deductible items (1,118,623) –
Eligible value of supplementary capital 4,722,748 4,201,332
Total core capital and supplementary capital 11,092,925 11,664,628
Deductions (1,489,923)
Total capital base after deductions 11,092,925 10,174,705
19. LIQUIDITY RATIO

Six months ended Year ended
30 Jun 2007 31 Dec 2006
Liquidity ratio 55.2% 58.0%
The liquidity ratio is calculated as the simple average of each calendar month’s average liquidity ratio of the
Group’s banking subsidiaries for the six/twelve months of the financial year. The liquidity ratio is computed with
reference to the methods set out in the Fourth Schedule of the Banking Ordinance.
Only the locally incorporated banking subsidiaries within the Group are subject to the minimum liquidity ratio
requirement under the Banking Ordinance. The above ratios of the Group are calculated for reference only.

— 26 —
FINANCIAL RATIOS

Six months ended Six months ended
30 Jun 2007 30 Jun 2006
Restated
Net interest income/operating income 76.7% 78.9%
Cost to income ratio 46.1% 45.1%
Loan to deposit (including certificates of deposit) ratio 70.2% 66.4%
Return on average total assets 1.1% 1.1%
Return on average shareholders’ funds 12.3% 12.1%
Dividend payout ratio 37.8% 41.1%
Net interest margin 2.27% 2.46%
INTERIM DIVIDEND

The Directors have declared an interim dividend of HK$0.25 per share for 2007 payable on or after Wednesday,
3 October 2007 to shareholders whose names are on the Register of Shareholders at the close of business on
Friday, 28 September 2007.
CLOSING OF REGISTER OF SHAREHOLDERS

The Register of Shareholders will be closed from Monday, 24 September 2007 to Friday, 28 September 2007,
both days inclusive. In order to qualify for the interim dividend, all transfers accompanied by the relevant share
certificates must be lodged with the Company’s Registrars, Computershare Hong Kong Investor Services Limited,
17th Floor, Hopewell Centre, 183 Queen’s Road East, Hong Kong for registration not later than 4:30 p.m. on
Friday, 21 September 2007.
CORPORATE AND BUSINESS OVERVIEW
HIGHLIGHTS

Against a backdrop of a generally positive operating environment, growing economies in Hong Kong and
Macau, extremely robust economic growth in the Mainland, and driven by a higher operating income rising
from HK$1.24 billion in the same period last year to HK$1.36 billion in the period, our profit attributable to
shareholders increased by 9% from HK$566 million in the first half of 2006 to HK$616 million in the first six
months of 2007. Earnings per share increased by 8% to HK$0.66. The Board of Directors has declared an
interim dividend of HK$0.25 per share.
Loan growth was particularly strong, with an increase of 22% year on year, and 13% since 31 December 2006,
driven mainly by our commercial lending business. Deposit growth was also significant, with an increase of
16% year on year, and 5% since the end of 2006.
Non-interest income grew by 17% relative to the first half of 2006 to HK$335 million, due mainly to a good
performance from our wealth management business.
Operating expenses increased by around 12% year-on-year, reflecting the costs of the expansion of our businesses,
and our expansion in the Hong Kong, Macau and Mainland markets.

— 27 —
During the period under review, we completed our acquisition of 17% of Chongqing Commercial Bank, and
contracted to acquire a further 3%, subject to regulatory approval, to take our total investment to 20%. We also
issued US$200 million perpetual subordinated debt callable in 2017 qualifying as Upper Tier 2 capital to
strengthen our capital base and to prepare for the further expansion of our business, which assisted us to
achieve a capital adequacy ratio of 17.1% at the mid-year.
BUSINESS AND FINANCIAL REVIEW

The key drivers of the strong loan growth were property lending, syndicated loans, equipment and vehicle
financing and financing for securities trading. Growth was driven primarily by our commercial lending business,
although it was encouraging to note that the speed of growth in our retail lending business has accelerated over
the same period last year. Net interest margin weakened slightly to 2.27% in the first half of 2007, compared
with 2.46% in the first half of 2006, due mainly to a tighter Prime/HIBOR margin and increased funding cost.
Our strong loan growth was more than sufficient to offset the slightly weaker margin, allowing us to report an
increase in net interest income of 7% for the period to HK$1,024 million.
Our Macau banking business performed particularly well, with a 25% year on year increase in profit, driven by
healthy loan growth, as well as a steady net interest margin.
Net fee and commission income increased by 18.7% relative to the first half of 2006, largely contributed by
stronger wealth management income. Boosted by the buoyant investment environment and higher securities
turnover, our wealth management business recorded higher brokerage fees and commission income generated
from investment services and stronger unit trust and insurance sales.
The growth in operating expenses during the period was due mainly to increased staff costs, both through
higher salaries and increased headcount, as well as increased rental, and general expenses such as advertising
and marketing.
We were able to take advantage of favourable market conditions in the first half of the year to realise a net gain
on disposal of available-for-sale securities of HK$81 million, an increase of 30% relative to the same period
last year. In 2006 we benefited from a write-back of HK$26 million impairment allowance on an investment
which has not been repeated in 2007.
Credit quality remained solid, although impairment charges increased by 17% to HK$88 million, mainly relating
to higher collective impairment charges from our retail banking business, particularly our credit card and
personal loan businesses, reflecting higher business volumes. Credit quality in our commercial lending business
remained robust in the first half. Overall credit quality remained acceptable, as demonstrated by the continuing
low impaired loan ratio of 0.4%, and a total overdue and rescheduled loan ratio of 0.6% as of 30 June 2007.
As at 30 June 2007, total gross loans and advances amounted to HK$56.2 billion, up 12.7% relative to the end
of last year. Strong growth was recorded in the Commercial Banking sector, led by syndicated loans, commercial
loans and property lending. The overall Personal Banking loan portfolio achieved a modest growth amidst
keen competition, and was mainly driven by mortgage loans and securities related financing.
Customers’ deposits including structured deposits totalled HK$70.0 billion, an increase of 4.0% relative to the
end of 2006. Issued certificates of deposit rose to HK$10.1 billion, 14.8% higher than 2006 year end. The loan
to deposit ratio increased from 66.4% as at 31 December 2006 to 70.2% as at 30 June 2007.

— 28 —
PROSPECTS

We continue to believe that the economic prospects in Mainland China will present an important opportunity
for growth in the coming years. In addition to our investment in Chongqing Commercial Bank, we have also
submitted an application for the opening of a Mainland locally incorporated subsidiary bank, based in Shenzhen,
to further develop our presence in that market.
We expect that the Hong Kong and Macau domestic economies will continue to develop positively in the
second half of the year, providing opportunities for the growth of our business. However, competition in these
markets is expected to remain intense, and this coupled with the possible impact on the economy of the recent
volatile conditions in global financial markets, and particularly in global credit markets where a rapid correction
has been taking place, is likely to mean that the second half of the year will be challenging.
COMPLIANCE WITH THE CODE ON CORPORATE GOVERNANCE PRACTICES

The Company has complied with all the code provisions set out in the Code on Corporate Governance Practices
contained in Appendix 14 of the Listing Rules throughout the six months ended 30 June 2007.
COMPLIANCE WITH THE MODEL CODE FOR DIRECTORS’ SECURITIES TRANSACTIONS
The Company has adopted its own code of conduct regarding directors’ securities transactions on terms no less
exacting than the required standard set out in the Model Code for Securities Transactions by Directors (Appendix
10 of the Main Board Rules). After having made specific enquiry of all Directors, the Company confirmed that
the required standard set out in the Model Code and the Company’s code of conduct regarding directors’
securities transactions have been fully complied with.
COMPLIANCE WITH THE BANKING (DISCLOSURE) RULES
The Group has fully complied with the requirements set out in the Banking (Disclosure) Rules made by the
Hong Kong Monetary Authority under section 60A of the Banking Ordinance (Cap. 155) as amended by the
Banking (Amendment) Ordinance 2005 (19 of 2005).
UNAUDITED FINANCIAL STATEMENTS

The financial information in this results announcement is unaudited and does not constitute statutory financial
statements.
AUDIT COMMITTEE

The Audit Committee has reviewed with management the accounting principles and practices adopted by the
Group and discussed internal controls and financial reporting matters including a review of the unaudited
financial statements for the period ended 30 June 2007.
REMUNERATION AND STAFF DEVELOPMENT

There have been no material change to the information disclosed in the Company’s 2006 Annual Report in
respect of the remuneration of employees, remuneration policies and training schemes.

— 29 —
DEALINGS IN THE COMPANY’S SHARES
There was no purchase, sale or redemption by the Company, or any of its subsidiaries, of the Company’s listed
shares during the period from 1 January 2007 to 30 June 2007.
INTERIM RESULTS ANNOUNCEMENT AND INTERIM REPORT

Copies of this announcement may be obtained from Corporate Secretarial Department at 36th Floor, Dah Sing
Financial Centre, 108 Gloucester Road, Hong Kong, or downloaded from the Company’s website at
<http://www.dahsing.com> free of charge.
The 2007 Interim Report of the Group containing all the information required by the Listing Rules and the
Banking (Disclosure) Rules will be published on the websites of the Hong Kong Stock Exchange and the
Company in due course. Printed copies of the 2007 Interim Report will be sent to shareholders before the end
of September 2007.
BOARD OF DIRECTORS

As at the date of this announcement, the Board of Directors of the Company comprises David Shou-Yeh Wong
(Chairman), Hon-Hing Wong (Derek Wong) (Managing Director and Chief Executive), Lung-Man Chiu (John
Chiu), Gary Pak-Ling Wang, Harold Tsu-Hing Wong and Frederic Suet-Chiu Lau as Executive Directors,
David Richard Hinde, John William Simpson, Robert Tsai-To Sze and Andrew Kwan-Yuen Leung as Independent
Non-Executive Directors, and Keisuke Tahara as Non-Executive Director.
By Order of the Board
H L Soo
Company Secretary
Hong Kong, Wednesday, 29 August 2007