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(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 2006 FINAL RESULTS

The Directors of Dah Sing Banking Group Limited (the “Company”) are pleased to present the consolidated audited
results of the Company and its subsidiaries (collectively the “Group”) for the year ended 31 December 2006. The
audited financial results presented in this report are prepared on a basis consistent with the accounting policies adopted
in the 2005 annual accounts.
A. CONSOLIDATED INCOME STATEMENT

For the year ended 31 December
HK$’000 Note 2006 2005 Variance
%
Interest income 4,969,713 3,094,884
Interest expense (3,070,804) (1,761,502)
Net interest income 1,898,909 1,333,382 42.4
Fee and commission income 612,100 468,209
Fee and commission expense (85,856) (65,708)
Net fee and commission income 526,244 402,501 30.7
Net trading income 5 118,687 142,259 -16.6
Other operating income 6 64,205 38,197 68.1
Operating income 2,608,045 1,916,339 36.1
Operating expenses 7 (1,181,727) (924,605) 27.8
Operating profit before impairment losses on loans
and advances 1,426,318 991,734 43.8
Impairment losses on loans and advances 8 (161,389) (130,577) 23.6
Operating profit before gains on certain investments
and fixed assets 1,264,929 861,157 46.9
Net gain on disposal of interests in subsidiaries 9 4,048 –
Net gain on disposal/reversal of revaluation deficits of
premises and other fixed assets 27,768 103,991
Net gain on fair value adjustment on investment
properties 27,995 74,570
Net gain on disposal of available-for-sale securities 88,053 116,077
Share of results of jointly controlled entities 7,008 3,104
Reversal of impairment losses on available-for-sale
securities 25,891 –
Profit before income tax 1,445,692 1,158,899 24.7
Income tax expense 10 (244,421) (177,727)
Profit for the year 1,201,271 981,172 22.4
Profit attributable to minority interests (5,285) (2,338)
Profit attributable to shareholders of the Company 1,195,986 978,834 22.2

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Dividends
Interim dividend paid 232,854 211,561
Proposed final dividend 419,137 353,938
651,991 565,499 15.3

Earnings per share
Basic 11 HK$1.28 HK$1.06 20.8
Diluted 11 HK$1.28 HK$1.06 20.8
B. CONSOLIDATED BALANCE SHEET

As at 31 December
HK$’000 Note 2006 2005
ASSETS

Cash and balances with banks and other financial institutions 6,988,137 8,040,676
Placements with banks and other financial institutions
maturing between one and twelve months 596,659 1,169,174
Trading securities 4,792,830 5,364,375
Financial assets at fair value through profit or loss 1,276,671 1,379,163
Derivative financial instruments 12 366,708 153,706
Advances and other accounts 13 51,730,681 46,568,778
Available-for-sale securities 32,923,713 22,772,190
Held-to-maturity securities 300,701 494,855
Investments in jointly controlled entities 37,192 30,184
Goodwill 811,690 811,690
Intangible assets 168,663 203,214
Premises and other fixed assets 1,386,636 1,378,643
Investment properties 642,140 320,939
Current income tax prepaid 10,763 –
Deferred income tax assets 3,377 7,692
Non-current assets held for resale – 821,561
Total assets 102,036,561 89,516,840
LIABILITIES

Deposits from banks and other financial institutions 1,678,259 255,748
Derivative financial instruments 12 317,655 506,058
Trading liabilities 6,526,233 6,311,309
Deposits from customers designated at fair value through
profit or loss 3,393,048 1,904,280
Deposits from customers 63,885,058 56,449,982
Certificates of deposit issued 8,768,472 7,713,297
Issued debt securities 2,299,574 2,287,095
Subordinated notes 3,480,127 3,290,342
Other accounts and accruals 2,138,677 1,449,744
Current income tax liabilities 79,268 40,322
Deferred income tax liabilities 134,949 104,334
Non-current liabilities held for resale – 531,023
Total liabilities 92,701,320 80,843,534
EQUITY

Minority interests 19,000 24,692

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Equity attributable to the Company’s shareholders
Share capital 931,416 931,416
Reserves 14 7,965,688 7,363,260
Proposed final dividend 14 419,137 353,938
Shareholders’ funds 9,316,241 8,648,614
Total equity 9,335,241 8,673,306
Total equity and liabilities 102,036,561 89,516,840
C. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 31 December 2006
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 gains on
available-for-sale securities – – 73,993 – (7) 73,986
Disposal of available-for-
sale securities – – (88,053) – – (88,053)
Deferred income tax
liabilities released on fair
value gains on and
disposal of available-for-
sale securities – – 2,667 – – 2,667
Fair value gains on
revaluation of premises – – 79,877 – – 79,877
Deferred income tax
liabilities recognised on
premises revaluation – – (10,209) – – (10,209)
Exchange differences
arising on translation of
the financial statements of
foreign entities – – 158 – 48 206
Net income recognised
directly in equity – – 58,433 – 41 58,474
Profit for the year – – – 1,195,986 5,285 1,201,271
Total recognised income
for 2006 – – 58,433 1,195,986 5,326 1,259,745
Disposal of interests in
subsidiaries – – – – (6,258) (6,258)
Dividend paid to minority
shareholder of a
subsidiary – – – – (4,760) (4,760)
2005 final dividend – – – (353,938) – (353,938)
2006 interim dividend – – – (232,854) – (232,854)
– – – (586,792) (11,018) (597,810)
Balance at
31 December 2006 931,416 2,209,149 1,103,295 5,072,381 19,000 9,335,241

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Year ended 31 December
2006 2005

Proposed final dividend included in retained earnings 419,137 353,938
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 2005 919,831 2,054,513 814,984 4,045,450 19,990 7,854,768
Fair value gains on
available-for-sale
securities – – 56,455 – (2) 56,453
Disposal of available-for-
sale securities – – (116,077) – – (116,077)
Deferred income tax
liabilities released on fair
value gains on and
disposal of available-for-
sale securities – – 10,806 – – 10,806
Fair value gains on
revaluation of premises – – 337,967 – – 337,967
Deferred income tax
liabilities recognised on
premises revaluation – – (59,152) – – (59,152)
Exchange differences
arising on translation of
the financial statements of
foreign entities – – (121) – (39) (160)
Net income/(expense)
recognised directly in
equity – – 229,878 – (41) 229,837
Profit for the year – – – 978,834 2,338 981,172
Total recognised income
for 2005 – – 229,878 978,834 2,297 1,211,009
Issue of ordinary shares 11,585 154,636 – – – 166,221
Dividend paid to minority
shareholder of a subsidiary – – – – (3,675) (3,675)
Acquisition of subsidiaries – – – – 5,886 5,886
Capital contribution by
minority shareholder to a
subsidiary – – – – 194 194
2004 final dividend – – – (349,536) – (349,536)
2005 interim dividend – – – (211,561) – (211,561)
11,585 154,636 – (561,097) 2,405 (392,471)
Balance at
31 December 2005 931,416 2,209,149 1,044,862 4,463,187 24,692 8,673,306

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Note:
1. Results announcement
The financial information set out in this results announcement does not constitute the Group’s statutory consolidated
financial statements for the year ended 31 December 2006 but is derived from those statutory financial statements.
The consolidated financial statements of the Group for the year ended 31 December 2006 will be available from the
website of The auditors have expressed an unqualified
opinion on those financial statements in their report dated 28 March 2007.
2. Basis of preparation and accounting policies
The consolidated financial statements of the Group have been prepared in accordance with Hong Kong Financial
Reporting Standards (“HKFRSs” which is a collective term including all applicable individual Hong Kong Financial
Reporting Standards, Hong Kong Accounting Standards (“HKASs”) and Interpretations) issued by Hong Kong
Institute of Certified Public Accountants (“HKICPA”), accounting principles generally accepted in Hong Kong and
the requirements of the Companies Ordinance. These financial statements also comply with the applicable disclosure
provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
The consolidated financial statements have been prepared under the historical cost convention, as modified by the
revaluation of properties (including investment properties), available-for-sale financial assets, financial assets and
financial liabilities held for trading, financial assets and financial liabilities (including derivative instruments) at
fair value through profit or loss.
The preparation of financial statements in conformity with HKFRSs requires the use of certain critical accounting
estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting
policies.
The financial information in this results announcement is presented in thousands of Hong Kong dollars (HK$’000),
unless otherwise stated.
3. New and interpretations to existing HKFRSs
The new HKFRSs issued by HKICPA in the year are not relevant to the Group’s operation.
The amendments and interpretations to existing HKFRSs issued by HKICPA and effective in 2006 have no significant
impact on the Group’s consolidated financial statements.

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4. Segment Reporting
(A) By business segments
For the year ended 31 December 2006
Personal Commercial
Group Banking Banking Treasury Unallocated Elimination Total
Interest income from
– external customers 1,672,348 1,689,235 1,592,889 15,241 – 4,969,713
– inter-segments 1,211,936 – 313 714,859 (1,927,108) –
Interest expense to
– external customers (1,858,009) (448,551) (222,822) (541,422) – (3,070,804)
– inter-segments (22,652) (526,669) (1,377,558) (229) 1,927,108 –
Net interest income/(expense) 1,003,623 714,015 (7,178) 188,449 – 1,898,909
Fee and commission income 455,550 126,727 16,554 13,269 – 612,100
Fee and commission expense (74,958) (922) (9,947) (29) – (85,856)
Net fee and commission income 380,592 125,805 6,607 13,240 – 526,244
Net trading income/(loss) 12,589 8,566 185,172 (87,640) – 118,687
Other operating income 17,059 3,347 18,658 25,141 – 64,205
Operating income 1,413,863 851,733 203,259 139,190 – 2,608,045
Operating expenses (811,853) (259,763) (78,572) (31,539) – (1,181,727)
Operating profit before impairment
losses on loans and advances 602,010 591,970 124,687 107,651 – 1,426,318
Impairment losses on loans and
advances (98,593) (62,884) – 88 – (161,389)
Operating profit before gains on
certain investments and fixed assets 503,417 529,086 124,687 107,739 – 1,264,929
Net gain on disposal of interests in
subsidiaries – – – 4,048 – 4,048
Net gain/(loss) on disposal/reversal
of revaluation deficits of premises
and other fixed assets (33) (530) (1) 28,332 – 27,768
Net gain on fair value adjustment on
investment properties – – – 27,995 – 27,995
Net gain on disposal of available-for-
sale securities 5,061 – 82,992 – – 88,053
Share of results of jointly controlled
entities – – – 7,008 – 7,008
Reversal of impairment losses on
available-for-sale securities – – 25,891 – – 25,891
Profit before income tax 508,445 528,556 233,569 175,122 – 1,445,692
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 year ended 31 December 2006
Depreciation 47,945 18,462 5,922 7,028 – 79,357
Capital expenditure incurred 24,314 6,416 1,086 6,775 – 38,591

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For the year ended 31 December 2005
Personal Commercial
Group Banking Banking Treasury Unallocated Elimination Total
Interest income from
– external customers 1,181,017 921,408 982,400 10,059 – 3,094,884
– inter-segments 674,245 – 106 463,109 (1,137,460) –
Interest expense to
– external customers (1,021,822) (212,032) (203,718) (323,930) – (1,761,502)
– inter-segments (37,237) (249,411) (850,812) – 1,137,460 –
Net interest income/(expense) 796,203 459,965 (72,024) 149,238 – 1,333,382
Fee and commission income 359,163 87,606 10,066 11,374 – 468,209
Fee and commission expense (59,165) (91) (6,415) (37) – (65,708)
Net fee and commission income 299,998 87,515 3,651 11,337 – 402,501
Net trading income/(loss) 2,021 6,257 136,596 (2,615) – 142,259
Other operating income 9,022 614 8,881 19,680 – 38,197
Operating income 1,107,244 554,351 77,104 177,640 – 1,916,339
Operating expenses (675,058) (161,031) (54,006) (34,510) – (924,605)
Operating profit before impairment
losses on loans and advances 432,186 393,320 23,098 143,130 – 991,734
Impairment losses on loans and
advances (55,484) (75,075) 93 (111) – (130,577)
Operating profit before gains on
certain investments and fixed
assets 376,702 318,245 23,191 143,019 – 861,157
Net gain/(loss) on disposal/reversal
of revaluation deficits of
premises and other fixed assets (231) (8) – 104,230 – 103,991
Net gain on fair value adjustment
on investment properties – – – 74,570 – 74,570
Net gain/(loss) on disposal of
available-for-sale securities (20) – 116,097 – – 116,077
Share of results of jointly controlled
entities – – – 3,104 – 3,104
Profit before income tax 376,451 318,237 139,288 324,923 – 1,158,899
As at 31 December 2005
Total assets 23,121,627 24,781,391 39,140,135 2,473,687 – 89,516,840
Total liabilities 46,148,503 10,795,679 13,223,062 10,676,290 – 80,843,534
For the year ended 31 December 2005
Depreciation 41,820 11,124 2,687 4,521 – 60,152
Capital expenditure incurred 20,048 424 1,339 5,027 – 26,838

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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, corporate investments (including properties) and debt funding
(including subordinated notes) not directly identified under other business divisions.
2005 business segments figures were restated to conform to 2006 basis of preparation.
(B) By geographical segments
The Group completed the acquisitions of Banco Comercial de Macau, S.A. on 19 December 2005. The Macau
segment results were consolidated in the Group’s results since that date.
Hong Kong and Inter-segment
others Macau elimination Total
For the year ended 31 December 2006
Operating income 2,344,304 263,741 – 2,608,045
Profit before income tax 1,341,458 104,234 – 1,445,692
Profit for the year 1,113,585 87,686 – 1,201,271
Depreciation 61,895 17,462 – 79,357
Capital expenditure incurred 30,454 8,137 – 38,591
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
Hong Kong Inter-segment
and others Macau elimination Total
For the year ended 31 December 2005
Operating income 1,907,534 8,805 – 1,916,339
Profit before income tax 1,155,777 3,122 – 1,158,899
Profit for the year 979,224 1,948 – 981,172
Depreciation 60,152 – – 60,152
Capital expenditure incurred 26,838 – – 26,838
As at 31 December 2005
Total assets 80,359,741 9,993,357 (836,258) 89,516,840
Total liabilities 73,373,275 8,306,517 (836,258) 80,843,534
Contingent liabilities and
commitments 36,515,455 1,861,835 (17,901) 38,359,389

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5. Net trading income
2006 2005

Net gain arising from dealing in foreign currencies 136,304 170,917
Net loss arising from financial instruments designated at fair value
through profit or loss, trading securities and derivatives (17,617) (28,658)
118,687 142,259

6. Other operating income
2006 2005

Dividend income from investments in available-for-sale securities
– Listed investments 186 4,237
– Unlisted investments 21,796 11,263
Gross rental income from investment properties 16,714 11,791
Other rental income 6,506 6,146
Others 19,003 4,760
64,205 38,197

7. Operating expenses
2006 2005

Employee benefit expenses (including directors’ remuneration) 653,780 524,167
Depreciation 79,357 60,152
Premises and other fixed assets expenses, excluding depreciation 125,545 96,394
Others 323,045 243,892
1,181,727 924,605

8. Impairment losses on loans and advances
2006 2005

Net charge of impairment losses on loans and advances
– Individually assessed 87,205 52,857
– Collectively assessed 74,184 77,720
161,389 130,577

Of which:
– new allowances (including amounts directly written off in the year) 339,689 298,716
– releases (81,166) (73,569)
– recoveries (97,134) (94,570)
161,389 130,577

9. Net gain on disposal of interests in subsidiaries
2006

Net gain on disposal of interests in Macau Insurance subsidiaries (Note (a)) 3,670
Net gain on disposal of interests in other subsidiaries 378
4,048

Note (a):
On 26 May 2006, the Group disposed of its interests in Macau Insurance Company Limited and Macau Life Insurance
Company Limited to its holding company, Dah Sing Financial Holdings Limited, at a consideration of
HK$280,582,000. The assets and liabilities of these subsidiaries were previously included in the Group’s balance
sheet under “Non current assets/liabilities held for resale”. The disposal was approved by the independent
shareholders of the Company on 19 May 2006 and was consistent with the Group’s intention at the time these
subsidiaries were acquired on 19 December 2005.

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10. Income tax expense
Hong Kong profits tax has been provided at the rate of 17.5% (2005: 17.5%) on the estimated assessable profit for
the year. Taxation on overseas profits has been calculated on the estimated assessable profit for the year at the rates
of taxation prevailing in the countries in which the Group operates.
2006 2005

Current income tax
– Hong Kong profits tax 199,396 158,965
– Overseas taxation 17,170 1,695
– Under-provision in prior years 467 –
Deferred income tax 27,388 17,067
244,421 177,727

11. Basic and diluted earnings per share
The calculation of basic earnings per share is based on earnings of HK$1,195,986,000 (2005: HK$978,834,000)
and the weighted average number of 931,416,279 (2005: 922,401,845) shares in issue during the year.
The calculation of diluted earnings per share is based on earnings of HK$1,195,986,000 (2005: HK$978,834,000)
and the weighted average number of 931,484,065 (2005: 922,401,845) shares in issue during the year after adjusting
for the effect of all dilutive potential ordinary shares as shown below:
Number of shares: 2006 2005
Weighted average number of ordinary shares as at 31 December 931,416,279 922,401,845
Adjustments for share options 67,786 –
Weighted average number of ordinary shares for diluted earnings per
share as at 31 December 931,484,065 922,401,845

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12. Derivative financial instruments
The notional principal amounts of outstanding derivatives contracts and their fair values were as follows:
As at 31 Dec 2006 As at 31 Dec 2005
Contract/
Fair values
Contract/
Fair values
notional notional
amount Assets Liabilities amount Assets Liabilities
1) Derivatives held for trading
a) Foreign exchange derivatives
Forward and future contracts 49,360,369 131,565 56,427 24,391,023 22,428 77,123
Currency swaps 1,370,700 45,470 27,559 2,188,446 59,068 311
Currency options purchased
and written 545,816 957 957 352,730 1,331 1,331
b) Interest rate derivatives
Interest rate swaps 19,812,762 41,305 124,765 13,222,923 1,828 133,881
Interest rate options 606,320 1,447 1,447 555,102 – 2,940
c) Equity derivatives
Equity options purchased
and written 125,720 1,701 1,701 183,044 2,964 2,964
Equity futures –––12,287 123 –
d) Credit derivatives
Credit default swaps 1,088,913 6,570 1,322 1,124,490 3,112 4,648
Total derivatives held for trading 72,910,600 229,015 214,178 42,030,045 90,854 223,198
2) Derivatives held for hedging
a) Derivatives designated as fair
value hedges
Interest rate swaps 10,684,881 137,693 103,477 9,252,272 62,852 282,860
Total derivatives held for hedging 10,684,881 137,693 103,477 9,252,272 62,852 282,860
Total recognised derivative financial
instruments 83,595,481 366,708 317,655 51,282,317 153,706 506,058
The credit risk weighted amounts of the above off-balance sheet exposures (excluding credit default swaps) without
taking into account the effect of bilateral netting arrangements that the Group entered into, are as follows.
As at As at
31 Dec 2006 31 Dec 2005
Derivatives
– Exchange rate contracts 140,229 99,288
– Interest rate contracts 111,404 76,925
– Equity contracts 2,524 430
254,157 176,643

As at 31 December 2006, the credit risk weighted amount of credit default swaps amounted to HK$855,575,000
(31 December 2005: HK$1,124,490,000) and is included in the total credit risk weighted amount of contingent
liabilities and commitments in Note 15.

— 12 —
13. Advances and other accounts
As at As at
31 Dec 2006 31 Dec 2005
Gross advances to customers 49,908,688 44,918,618
Gross advances to banks and other financial institutions 155,102 389,264
Trade bills 694,604 653,581
Other assets 1,327,384 1,005,333
Gross advances and other accounts 52,085,778 46,966,796
Less: impairment allowances
– Individually assessed (136,746) (167,436)
– Collectively assessed (218,351) (230,582)
(355,097) (398,018)
Advances and other accounts 51,730,681 46,568,778
(a) Gross advances to customers by industry sector classified according to the usage of loans are:
As at As at
31 Dec 2006 31 Dec 2005 Variance
Restated %
Loans for use in Hong Kong
Industrial, commercial and financial
– Property development 409,887 183,481 123.4
– Property investment 6,107,283 4,672,013 30.7
– Financial concerns 424,368 520,278 -18.4
– Stockbrokers 49,845 14,994 232.4
– Wholesale and retail trade 1,086,361 965,061 12.6
– Manufacturing 1,334,677 1,331,248 0.3
– Transport and transport equipment 3,563,617 3,772,620 -5.5
– Others 1,410,582 1,160,957 21.5
14,386,620 12,620,652 14.0

Individuals
– Loans for the purchase of flats in Home
Ownership Scheme, Private Sector
Participation Scheme and Tenants Purchase
Scheme 1,850,462 1,929,198 -4.1
– Loans for the purchase of other residential
properties 10,917,179 10,772,390 1.3
– Credit card advances 3,154,851 2,759,308 14.3
– Others 5,614,419 4,637,350 21.1
21,536,911 20,098,246 7.2

Loans for use in Hong Kong 35,923,531 32,718,898 9.8
Trade finance 4,385,560 3,914,072 12.0
Loans for use outside Hong Kong 9,599,597 8,285,648 15.9
49,908,688 44,918,618 11.1

The above classification is made with reference to the guidelines issued by the Hong Kong Monetary Authority.
With effect from 30 September 2006, loans classified as “non-bank China exposures” which form part of
“Loans for use outside Hong Kong” as defined in these guidelines were revised to include loans to companies
and individuals outside China where the credit is granted or funds are for use in China. Comparative figures
have therefore been restated to conform with this new requirement.

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(b) Impaired, overdue and rescheduled assets
(i) Impaired loans
As at As at
31 Dec 2006 31 Dec 2005
Gross impaired loans (Note a) 254,533 312,530
As a percentage of total advances to customers 0.51% 0.70%
Individual impairment allowances 136,746 167,436
Amount of collateral held 122,343 182,604
Note:
a. Impaired loans are defined as those loans assessed on individual basis 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.
b. The above individual impairment allowances were made after taking into account the value of
collateral in respect of such advances as at 31 December.
(ii) Overdue loans
% of total % of total
As at advances to As at advances to
31 Dec 2006 customers 31 Dec 2005 customers
Gross advances to customers
which have been overdue for:
– six months or less but over
three months 99,855 0.20 118,065 0.26
– one year or less but over six
months 61,973 0.12 59,799 0.13
– over one year 119,804 0.24 128,051 0.29
281,632 0.56 305,915 0.68

Market value of securities held
against the secured overdue
advances 168,065 256,219
Secured overdue advances 133,324 180,623
Unsecured overdue advances 148,308 125,292
Impairment allowances 118,518 114,365
(iii) Rescheduled advances net of amounts included in overdue advances shown above
% of total % of total
As at advances to As at advances to
31 Dec 2006 customers 31 Dec 2005 customers
Rescheduled advances 69,106 0.14 181,654 0.40
Impairment allowances 6,886 25,123
There were no advances to banks and other financial institutions which were impaired, overdue for
over 3 months or rescheduled as at 31 December 2006 and 31 December 2005.

— 14 —
(iv) Trade bills
As at As at
31 Dec 2006 31 Dec 2005
Overdue for:
– over one year – 363
(c) Repossessed assets
The repossessed assets of the Group were as follows:
As at As at
31 Dec 2006 31 Dec 2005
Repossessed properties 32,223 45,401
14. Reserves
As at As at
31 Dec 2006 31 Dec 2005
Reserves
Share premium 2,209,149 2,209,149
Consolidation reserve (220,986) (220,986)
Premises revaluation reserve 621,018 551,350
Investment revaluation reserve 3,128 14,521
Exchange reserve (119) (277)
General reserve 700,254 700,254
Retained Earnings 5,072,381 4,463,187
8,384,825 7,717,198

Proposed final dividends included in retained earnings 419,137 353,938
Dah Sing Bank, Limited (“DSB”), a major subsidiary of the Company, complies with the requirement of the Hong
Kong Monetary Authority (“HKMA”) to maintain loan impairment allowances (determined in accordance with
regulatory guidelines) in excess of those determined in accordance with Hong Kong Financial Reporting Standards.
DSB has earmarked a “Regulatory Reserve” from its consolidated general reserve for an amount of HK$313,999,000
(2005: HK$231,086,000). In determining the consolidated capital base of the banking group, the portion of regulatory
reserve attributable to DSB’s Hong Kong and overseas branch operations, together with DSB’s collective impairment
allowances after the adoption of HKAS 39, is included as supplementary capital in the capital base of DSB as at 31
December 2006. The regulatory reserve of DSB is not distributable without the consent of the HKMA.

— 15 —
15. Contingent liabilities and commitments
(a) Capital commitments
Capital expenditure at the balance sheet date but not yet incurred is as follows:
As at As at
Group 31 Dec 2006 31 Dec 2005
Expenditure contracted but not provided for 60,441 34,931
(b) Credit 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:
Group Contract amount
As at As at
31 Dec 2006 31 Dec 2005
Direct credit substitutes 1,628,553 2,420,934
Transaction related contingencies 4,576 26,872
Trade-related contingencies 1,066,214 951,964
Other commitments with an original maturity of:
– under 1 year or which are unconditionally cancelable 32,429,019 26,872,921
– 1 year and over 699,389 592,304
Forward forward deposits placed 1,923,185 1,006,592
37,750,936 31,871,587

Group Credit risk weighted amount
As at As at
31 Dec 2006 31 Dec 2005
Contingent liabilities and commitments 2,287,097 2,117,689
(c) Assets pledged
Assets pledged as collateral with the Hong Kong Monetary Authority and with unrelated financial institutions
under repurchase agreements are as follows:
As at As at
Group 31 Dec 2006 31 Dec 2005
Trading securities 4,658,512 4,491,883
Available-for-sale securities 2,305,420 1,824,988
6,963,932 6,316,871

— 16 —
(d) Operating lease commitments
Where a Group company is the lessee, the future minimum lease payments under non-cancellable building
operating leases are as follows:
As at As at
Group 31 Dec 2006 31 Dec 2005
Not later than 1 year 64,693 42,214
Later than 1 year and not later than 5 years 98,232 70,295
162,925 112,509

Where a Group company is the lessor, the future minimum lease payments under non-cancellable building
operating leases are as follows:
As at As at
Group 31 Dec 2006 31 Dec 2005
Not later than 1 year 18,841 12,503
Later than 1 year and not later than 5 years 15,655 10,988
34,496 23,491

16. Cross-border claims
Equivalent in HK$ millions
Group As at 31 Dec 2006
Banks
and other Public
financial sector
institutions 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
Group As at 31 Dec 2005
Banks
and other Public
financial sector
institutions entities Others Total
Asia Pacific excluding Hong Kong 4,904 250 4,075 9,229
North and South America 1,024 – 2,458 3,482
Europe 10,498 – 4,720 15,218
16,426 250 11,253 27,929

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.

— 17 —
17. Currency concentrations
Equivalent in HK$ millions
Group
As 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
Group
As at 31 Dec 2005 USD CNY MOP Total
Spot assets 26,575 773 3,140 30,488
Spot liabilities (21,097) (756) (3,353) (25,206)
Forward purchases 9,818 – 1 9,819
Forward sales (14,496) – – (14,496)
Net long/(short) position 800 17 (212) 605
18. Capital adequacy ratio
As at As at
Group 31 Dec 2006 31 Dec 2005
Capital adequacy ratio 16.6% 16.6%
Adjusted capital adequacy ratio 16.6% 16.8%
The capital adequacy ratio represents the combined ratio of the banking subsidiaries within the Group comprising
Dah Sing Bank, Limited and its banking subsidiaries, MEVAS Bank Limited, D.A.H. Hambros Bank (Channel
Islands) Limited as at 31 December. The capital adequacy ratio is computed with reference to the methods set out
in the Third Schedule of the Banking Ordinance.
The adjusted capital adequacy ratio represents the combined ratio of the banking subsidiaries within the Group as
at 31 December. The adjusted capital adequacy ratio is computed 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 both credit and market risk as at 31 December.
Only the Hong Kong incorporated banking subsidiaries within the Group are subject to the minimum capital adequacy
ratio requirement under the Banking Ordinance. Banco Comercial de Macau, S.A. is subject to separate Macau
banking regulations. The above ratios of the Group are calculated for reference only.

— 18 —
The combined capital base of the Group computed on the basis of the Banking Ordinance is set out below:
As at As at
Group 31 Dec 2006 31 Dec 2005
Core capital
Paid up ordinary share capital 2,707,749 2,207,749
Reserves 4,755,547 3,928,002
7,463,296 6,135,751

Supplementary capital
Reserves on revaluation of land and interests in land 238,402 238,402
Reserve on revaluation of the holding of securities
not held for trading purposes 2,098 25,604
Collective impairment allowances for impaired
assets and regulatory reserve 480,705 458,783
Term subordinated debt 3,480,127 3,067,875
Eligible value of supplementary capital 4,201,332 3,790,664
Total capital base before deductions 11,664,628 9,926,415
Deductions (1,489,923) (421,585)
Total capital base after deductions 10,174,705 9,504,830
19. Liquidity ratio
Year ended Year ended
31 Dec 2006 31 Dec 2005
Liquidity ratio 58.0% 55.2%
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 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 Hong Kong 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.

— 19 —
FINANCIAL RATIOS

Year ended Year ended
31 Dec 2006 31 Dec 2005
Net interest income/operating income 72.8% 69.6%
Cost to income ratio 45.3% 48.2%
Loan to deposit (including certificates of deposit) ratio 65.6% 68.0%
Return on average total assets 1.2% 1.2%
Return on average shareholders’ funds 13.3% 12.0%
Dividend payout ratio 54.5% 57.8%
Net interest margin 2.36% 1.98%
FINAL DIVIDENDS

At the forthcoming annual general meeting of the Company to be held on Tuesday, 22 May 2007, the Directors will
propose a final dividend of HK$0.45 per share for 2006 to Shareholders whose names are on the Register of Shareholders
as at the close of business on Tuesday, 22 May 2007. Dividend warrants will be sent to Shareholders by ordinary mail
on or about Friday, 25 May 2007.
CLOSING OF REGISTER OF SHAREHOLDERS

The Register of Shareholders will be closed from Tuesday, 15 May 2007 to Tuesday, 22 May 2007, both days inclusive.
In order to qualify for the final 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 Monday, 14 May 2007.
CORPORATE AND BUSINESS OVERVIEW

In 2006, we grew our business organically, fully integrated our acquisitions in Macau and Hong Kong, and embarked
on the next stage of our Mainland expansion strategy.
For the year, our operating profit after loan impairment grew by 47% to HK$1.3 billion, our profit attributable to
shareholders grew by 22% to HK$1.2 billion, our EPS grew by 21% from HK$1.06 to HK$1.28, and our total assets
grew by 14% from HK$90 billion to HK$102 billion.
Our business performed strongly, with total loan growth for the year of 11%, against growth in the Hong Kong market
of 6.7%. Commercial banking led growth in the first half of the year, continuing several years of strong growth, with a
relatively weaker performance from our retail banking business. In the second half of the year, renewed efforts in the
Hong Kong domestic mortgage market, coupled with continuing growth in the unsecured loan and credit card businesses
resulted in an improved performance from retail banking, and by the year end, both our core commercial and retail
banking businesses reported growth significantly ahead of the market.
Our fee income business performed well during the year, particularly as a result of strong equity markets which were
beneficial to our wealth management business.
The integration of the two acquisitions made in 2005, Banco Comercial de Macau, S.A. (“BCM”) and Pacific Finance
(Hong Kong) Limited (“PF”) have now been completed. BCM’s net profit grew very substantially by 30% to MOP117
million in 2006, and this acquisition is now delivering earnings enhancement to our group. The business of PF has now
been fully incorporated into Dah Sing Bank, and PF therefore no longer reports its results separately from those of Dah
Sing. However, on a business unit basis, the former PF businesses generated a return of 10.7% on the acquisition cost,
net of dividends received, which is earnings enhancing for our group.
Credit quality overall remained good, with impairment charges rising slightly, due mainly to higher individual loan
impairment charges relating mainly to our commercial banking business and to loan increases in credit cards and
unsecured personal loans which broadly balanced a lower collective impairment charge rate due to improved credit
conditions.

— 20 —
We continued to build our China business, and towards the end of the year we announced that we had agreed to
purchase, subject to regulatory approvals, a 17% stake in Chongqing Commercial Bank, the leading city bank in
Chongqing, the largest city in Western China, and one of only four municipalities in the PRC reporting directly to the
central government, the others being Beijing, Shanghai and Tianjin. We also noted the changes announced by the
China Banking Regulatory Commission towards the year end allowing for the incorporation of a local subsidiary in the
PRC to conduct banking business, and established a working group to analyse the benefits of expanding under a PRC
subsidiary.
FINANCIAL REVIEW

Local economic conditions were generally good during the year, with strong GDP growth at close to 7%, and continuing
falls in unemployment. Interest rate conditions remained benign with a relatively wide margin between the Hong Kong
prime lending rate (“Prime”) and interbank rates (“Hibor”), which was generally supportive of our net interest margin.
Profit attributable to shareholders of the Group for the year ended 31 December 2006 was HK$1,196 million. The
increase was driven mainly both by significantly higher net interest income and net fee and commission income.
Net interest income for the year increased by 42% to HK$1,899 million from HK$1,333 million in 2005. The strong
increase was the result of (1) wider Prime-Hibor spread, (2) higher average loan balance and (3) contribution from PF
and BCM portfolios. The impact of these positive factors more than outweighed the negative impact of rising funding
costs to net interest income, especially from fixed-rate assets. The net interest margin of our Banking Group was
2.36%, up from 1.98% in 2005. Relatively benign HK$ money market conditions helped contain the rise in HK$
interbank interest rates, despite steady increases in US$ short-term rates during the first six months of 2006. A wider
Prime-Hibor spread was particularly favourable for loans priced on a Prime rate basis. PF and BCM made a meaningful
contribution to net interest income after adjusting for the interest income foregone on the acquisition capital paid in
2005.

Net fee and commission income increased by 31%, mainly due to higher loan fee and commission income from the
organic growth of our Commercial and Retail banking businesses, and higher income from wealth management and
investment services, in particular stronger commission income on higher unit trust sales. The consolidation of PF and
BCM net fee and commission income also helped to boost the overall increase. The increase was partially offset by the
drop in net trading income.
Operating expenses rose 28% mainly as a result of consolidating the expenses of the subsidiaries acquired in the
second half of 2005 and the amortisation costs for the intangible assets recognised in acquiring PF and BCM. Intangible
amortisation costs amounted to HK$35 million whilst the newly acquired subsidiaries’ costs (including acquisition
related costs) in 2006 totalled HK$181 million. Excluding these expenses with corresponding normalisation of the
2005 cost base, on an organic growth basis, operating expenses increased by 7.9% as compared to 2005.
Cost income ratio for the year was 45.3%, lower than 48.2% in 2005.
Operating profit before loan impairment charges was HK$1,426 million, up 44% relative to 2005.
Higher loan impairment charges were recorded during the year, mainly resulting from higher individual impairment
allowances required on a number of Commercial Banking, transport and equipment finance customers. Collective
impairment charges, despite higher average loan balances, were slightly lower than 2005 as a result of improvement in
portfolio asset quality. The consolidation of the loan portfolios of PF and BCM did not lead to any material effect in
our overall loan losses in the year, and overall credit quality remained strong, as demonstrated by the continuing low
impaired loan ratio of 0.51%, and a total overdue and rescheduled loan ratio of 0.70% as of 31 December 2006.
Operating profit after impairment charges was HK$1,265 million, 47% higher than 2005.
We recorded a gain of HK$56 million relating to the revaluation of our investment properties and reversal of past
impairment on bank premises, a gain of HK$88 million on disposal of securities, mainly relating to profits on investments
in bonds which benefited from a tighter credit spread environment during the year, and a write-back of HK$26 million
impairment charge on an investment, which was fully realized during the year.
Profit before taxation for the year was HK$1,446 million, an increase of 25% over the previous year.
Profit attributable to shareholders, increased by 22% to HK$1,196 million.

— 21 —
As at 31 December 2006, the Group’s total gross loans and advances amounted to HK$49.9 billion, up 11% relative to
the end of 2005. Growth was recorded both in the Commercial Banking and Retail Banking sectors, and was led by
trade finance, syndicated loans, property finance, unsecured personal loans, credit cards and mortgages. It was particularly
encouraging to see a return to double-digit growth in our overall unsecured lending business, after a number of years of
difficult market conditions in this business.
Customers’ deposits including structured deposits totaled HK$67 billion, an increase of 15% relative to the end of
2005. Issued certificates of deposit amounted to HK$8.8 billion of which retail certificates of deposit accounted for
HK$3.7 billion. Other issued debt securities totaled HK$2.3 billion. The loan to deposit ratio decreased from 68.0% as
at 31 December 2005 to 65.6% as at 31 December 2006.
Dah Sing Bank, Limited (“DSB”) exercised its call option to fully redeem its first US$125 million subordinated debt
(issued in March 2001) in March 2006. To strengthen its tier 2 capital base to support business growth, DSB issued a
new US$150 million 10-year subordinated debt (callable in 5 years) in June 2006.
PROSPECTS

The Hong Kong economy continued to perform strongly in 2006, and we are looking forward to the continuation of
relatively stable and positive economic conditions in 2007. However, loan growth in the domestic banking market in
Hong Kong is likely to remain relatively slow and price competition in core lending areas is expected to remain intense.
Margins will be influenced by prevailing interest rate conditions, which although still benign at present could have
some risk to the downside, particularly as we have already seen some reduction in the Prime/Hibor spread in the early
part of 2007.
The market in Macau continues to be robust, and we expect that in 2007, the rate of growth in Macau will be faster than
in Hong Kong. Several large hotel, gaming and property projects are scheduled to come on stream during the course of
2007, which will increase capacity in the gaming and tourism industries, two key economic sectors in Macau.
We expect to complete our acquisition of 17% interest of Chongqing Commercial Bank during the first half of 2007,
and we also expect to determine our organic strategy for growth in the Mainland market, and our plans for the
establishment of a locally incorporated banking subsidiary in the Mainland.
Against highly competitive market conditions in Hong Kong, and with the opportunities of fast growing markets in
Macau and the Mainland, we continue to believe that growth is critical to providing our customers with the products
and services that they require, as well as continuing to bring long-term values to our shareholders.
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 year ended 31 December 2006.
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.
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 this financial report and the
consolidated financial statements of the Group for the year ended 31 December 2006.
PUBLICATION OF ANNUAL REPORT ON THE STOCK EXCHANGE’S WEBSITE
The Annual Report of the Company containing all the information required by Appendix 16 of the Listing Rules will
be published on the website of the Hong Kong Stock Exchange in due course.

— 22 —
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 2006 to 31 December 2006.
BOARD OF DIRECTORS

As at the date of this announcement, the executive Directors of DSBG are Messrs. David Shou-Yeh Wong, Hon-Hing
Wong (Derek Wong), Lung-Man Chiu (John Chiu), Gary Pak-Ling Wang, Harold Tsu-Hing Wong and Frederic Suet-
Chiu Lau. The independent non-executive Directors are Messrs. David Richard Hinde, John William Simpson, Robert
Tsai-To Sze and Andrew Kwan-Yuen Leung. The non-executive Directors are Messrs. Keisuke Tahara and Dennis Tat-
Wang Yau.
By Order of the Board
H L Soo
Company Secretary
Hong Kong, Wednesday, 28 March 2007
Please also refer to the published version of this announcement in The Standard
Website: http://www.dahsing.com