— 1 —
(Incorporated in Hong Kong with limited liability under the Companies Ordinance)
(Stock Code: 0440)
ANNOUNCEMENT OF 2006 FINAL RESULTS

The Directors of Dah Sing Financial Holdings 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 5,091,653 3,156,660
Interest expense (3,062,727) (1,758,389)
Net interest income 2,028,926 1,398,271 45.1
Fee and commission income 616,223 446,929
Fee and commission expense (111,434) (91,155)
Net fee and commission income 504,789 355,774 41.9
Net trading income 5 357,162 260,201 37.3
Net insurance premium income 1,005,036 752,855 33.5
Other operating income 6 126,903 118,885 6.7
Operating income 4,022,816 2,885,986 39.4
Net insurance claims and movement in liabilities
to policyholders (908,538) (627,697) 44.7
Total operating income net of insurance claims 3,114,278 2,258,289 37.9
Operating expenses 7 (1,335,356) (1,000,565) 33.5
Operating profit before impairment losses on loans
and advances 1,778,922 1,257,724 41.4
Impairment losses on loans and advances 8 (161,253) (130,640) 23.4
Operating profit before gains on certain investments
and fixed assets 1,617,669 1,127,084 43.5
Net gain on disposal/reversal of revaluation deficits of
premises and other fixed assets 34,092 103,991
Net gain on fair value adjustment on investment
properties 30,074 83,051
Net gain on disposal of available-for-sale securities 91,442 116,178
Share of results of jointly controlled entities 7,008 3,104
Share of results of associates (26,441) (9,350)
Net gain on disposal of interests in subsidiaries 189,443 –
Reversal of impairment losses on available-for-sale
securities 25,891 –
Profit before income tax 1,969,178 1,424,058 38.3
Income tax expense 9 (267,455) (187,857) 42.4

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Profit for the year 1,701,723 1,236,201 37.7
Profit attributable to minority interests (304,597) (216,883) 40.4
Profit attributable to shareholders of the Company 1,397,126 1,019,318 37.1
Dividends
Interim dividend paid 187,566 178,999
Proposed final dividend 400,141 340,120
587,707 519,119 13.2

Earnings per share
Basic 10 HK$5.59 HK$4.09 36.7
Diluted 10 HK$5.58 HK$4.09 36.4
B. CONSOLIDATED BALANCE SHEET

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

Cash and balances with banks and other financial
institutions 7,440,296 8,908,162
Placements with banks and other financial institutions
maturing between one and twelve months 853,327 1,169,174
Trading securities 9,113,785 7,810,993
Financial assets at fair value through profit or loss 1,276,671 1,379,163
Derivative financial instruments 374,317 166,975
Advances and other accounts 11 52,029,818 46,739,477
Available-for-sale securities 33,336,794 22,884,372
Held-to-maturity securities 458,395 647,908
Investments in associates 57,647 48,139
Investments in jointly controlled entities 37,192 30,184
Goodwill 950,992 950,992
Intangible assets 208,238 254,368
Premises and other fixed assets 1,597,491 1,389,692
Investment properties 484,465 362,690
Current income tax prepaid 14,414 –
Deferred income tax assets 3,377 7,692
Value of in-force long-term life assurance business 810,778 745,896
Total assets 109,047,997 93,495,877
LIABILITIES

Deposits from banks and other financial institutions 1,678,259 255,748
Derivative financial instruments 323,809 501,636
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 63,595,931 56,202,412
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 4,051,157 2,197,246
Current income tax liabilities 91,498 48,707
Deferred income tax liabilities 144,256 104,334
Liabilities to policyholders under insurance contracts 2,286,088 1,662,935

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Total liabilities 96,638,452 82,479,341
EQUITY

Minority interests 2,364,803 1,920,202
Equity attributable to the Company’s shareholders
Share capital 500,176 500,176
Reserves 12 9,144,425 8,256,038
Proposed dividend 400,141 340,120
Shareholders’ funds 10,044,742 9,096,334
Total equity 12,409,545 11,016,536
Total equity and liabilities 109,047,997 93,495,877
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 500,176 984,286 1,048,202 6,563,670 1,920,202 11,016,536
Fair value gains on
available-for-sale securities ––97,545 – 18,538 116,083
Disposal of available-for-sale
securities ––(69,373) – (22,069) (91,442)
Fair value gains on revaluation
of premises ––57,147 – 20,020 77,167
Deferred income tax liabilities
recognised on premises
revaluation ––(7,650) – (2,559) (10,209)
Deferred income tax liabilities
released on fair value gains on
and disposal of
available-for-sale securities ––1,119 – 668 1,787
Exchange differences arising
on translation of the financial
statements of foreign
entities ––180 – 93 273
Net income recognised directly
in equity ––78,968 – 14,691 93,659
Profit for the year –1,397,126 304,597 1,701,723
Total recognised income for
2006 ––78,968 1,397,126 319,288 1,795,382
Disposal of interests in
subsidiaries ––––316,634 316,634
Acquisition of further
interests in a subsidiary ––––(40,970) (40,970)
Dividends paid to minority
shareholders of subsidiaries ––––(154,233) (154,233)

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Capital contribution by
minority shareholders
to a subsidiary ––––3,882 3,882
2005 final dividend –(340,120) – (340,120)
2006 interim dividend –– (187,566) – (187,566)
–––(527,686) 125,313 (402,373)
Balance at 31 December 2006 500,176 984,286 1,127,170 7,433,110 2,364,803 12,409,545
Year ended 31 December
2006 2005

Proposed final dividend included in retained earnings 400,141 340,120
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 497,219 908,163 878,180 6,046,543 1,759,012 10,089,117
Fair value gains on
available-for-sale securities – – 47,842 – 12,027 59,869
Disposal of available-for-sale
securities – – (90,906) – (25,272) (116,178)
Fair value gains on revaluation
of premises – – 265,425 – 72,542 337,967
Deferred income tax liabilities
recognised on premises
revaluation – – (46,456) – (12,696) (59,152)
Deferred income tax liabilities
released on fair value
gains on and disposal of
available-for-sale securities – – 8,428 – 2,378 10,806
Exchange differences arising on
translation of the financial
statements of foreign
entities – – 7 – (66) (59)
Net income recognised directly
in equity – – 184,340 – 48,913 233,253
Profit for the year – – – 1,019,318 216,883 1,236,201
Total recognised income for
2005 – – 184,340 1,019,318 265,796 1,469,454
Issue of ordinary shares
pursuant to scrip dividend
arrangement 2,957 76,123 – – – 79,080
Additional net assets acquired
via scrip dividend
arrangement – – 20,705 – 14,912 35,617
Subscription of additional
interest in a subsidiary via
scrip dividend arrangement
at a premium – – (35,023) – – (35,023)

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Acquisition of subsidiaries – – – – 5,886 5,886
Dividend paid to minority
shareholders of subsidiaries – – – – (125,598) (125,598)
Capital contribution by
minority shareholder to
a subsidiary – – – – 194 194
2004 final dividend – – – (323,192) – (323,192)
2005 interim dividend – – – (178,999) – (178,999)
2,957 76,123 (14,318) (502,191) (104,606) (542,035)
Balance at 31 December 2005 500,176 984,286 1,048,202 6,563,670 1,920,202 11,016,536
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 Insurance
Group Banking Banking Treasury Business Unallocated Elimination Total
Interest income from
– external customers 1,672,348 1,689,235 1,592,889 83,005 54,176 – 5,091,653
– inter-segments 1,211,936 – 313 8,354 714,859 (1,935,462) –
Interest expense to
– external customers (1,852,325) (448,551) (222,822) – (539,029) – (3,062,727)
– inter-segments (28,336) (526,669) (1,377,558) – (2,899) 1,935,462 –
Net interest income/(expense) 1,003,623 714,015 (7,178) 91,359 227,107 – 2,028,926
Fee and commission income 455,550 126,727 16,554 136,106 13,195 (131,909) 616,223
Fee and commission
expense (74,958) (922) (9,947) (56,586) (29) 31,008 (111,434)
Net fee and commission income 380,592 125,805 6,607 79,520 13,166 (100,901) 504,789
Net trading income/(loss) 12,589 8,566 185,172 185,248 (34,413) – 357,162
Net insurance premium income –––1,008,606 – (3,570) 1,005,036
Other operating income 17,059 3,347 18,658 66,915 23,988 (3,064) 126,903
Operating income 1,413,863 851,733 203,259 1,431,648 229,848 (107,535) 4,022,816
Net insurance claims and movement
in liabilities to policyholders –––(908,538) – – (908,538)
Total operating income net of
insurance claims 1,413,863 851,733 203,259 523,110 229,848 (107,535) 3,114,278
Operating expenses (811,853) (259,763) (78,572) (250,715) (41,988) 107,535 (1,335,356)
Operating profit before impairment
losses on loans and advances 602,010 591,970 124,687 272,395 187,860 – 1,778,922
Impairment losses on loans and
advances (98,593) (62,884) – 136 88 – (161,253)
Operating profit before gains on
certain investments and
fixed assets 503,417 529,086 124,687 272,531 187,948 – 1,617,669
Net gain/(loss) on disposal/ reversal
of revaluation deficits of premises
and other fixed assets (33) (530) (1) 746 33,910 – 34,092
Net gain on fair value adjustment on
investment properties ––––30,074 – 30,074
Net gain on disposal of
available-for-sale securities 5,061 – 82,992 – 3,389 – 91,442
Share of results of jointly
controlled entities ––––7,008 – 7,008
Share of results of associates (26,441) – (26,441)
Net gain on disposal of interests
in subsidiaries ––––189,443 – 189,443

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Reversal of impairment losses on
available-for-sale securities ––25,891 – – – 25,891
Profit before income tax 508,445 528,556 233,569 273,277 425,331 – 1,969,178
As at 31 December 2006
Total assets 24,952,007 27,542,139 47,003,768 6,294,879 3,370,945 (115,741) 109,047,997
Total liabilities 50,418,508 14,752,513 15,672,008 4,314,914 11,596,250 (115,741) 96,638,452
For the year ended 31 December 2006
Depreciation 47,945 18,462 5,922 5,981 7,451 – 85,761
Capital expenditure incurred 24,314 6,416 1,086 2,264 6,775 – 40,855
For the year ended 31 December 2005
Personal Commercial Insurance
Group Banking Banking Treasury Business Unallocated Elimination Total
Interest income from
– external customers 1,181,017 921,408 982,400 31,324 40,511 – 3,156,660
– inter-segments 674,245 – 106 3,028 463,109 (1,140,488) –
Interest expense to
– external customers (1,018,757) (212,032) (203,718) 76 (323,958) – (1,758,389)
– inter-segments (40,302) (249,411) (850,812) – 37 1,140,488 –
Net interest income/(expense) 796,203 459,965 (72,024) 34,428 179,699 – 1,398,271
Fee and commission income 359,163 87,606 10,066 109,754 11,769 (131,429) 446,929
Fee and commission expense (59,165) (91) (6,415) (59,980) (37) 34,533 (91,155)
Net fee and commission income 299,998 87,515 3,651 49,774 11,732 (96,896) 355,774
Net trading income 2,021 6,257 136,596 97,281 18,046 – 260,201
Net insurance premium income – – – 752,855 – – 752,855
Other operating income 9,022 614 8,881 76,065 25,080 (777) 118,885
Operating income 1,107,244 554,351 77,104 1,010,403 234,557 (97,673) 2,885,986
Net insurance claims and movement
in liabilities to policyholders – – – (627,697) – – (627,697)
Total operating income net of
insurance claims 1,107,244 554,351 77,104 382,706 234,557 (97,673) 2,258,289
Operating expenses (675,058) (161,031) (54,006) (169,156) (38,987) 97,673 (1,000,565)
Operating profit before impairment
losses on loan and advances 432,186 393,320 23,098 213,550 195,570 – 1,257,724
Impairment losses on loans and
advances (55,484) (75,075) 93 (63) (111) – (130,640)
Operating profit before gains on
certain investments and fixed assets 376,702 318,245 23,191 213,487 195,459 – 1,127,084
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 – – – – 83,051 – 83,051
Net gain/(losses) on disposal of
available-for-sale securities (20) – 116,097 – 101 – 116,178

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Share of results of
jointly controlled entities – – – – 3,104 – 3,104
Share of results of associates – – – – (9,350) – (9,350)
Profit before income tax 376,451 318,237 139,288 213,487 376,595 – 1,424,058
As at 31 December 2005
Total assets 23,121,627 24,781,391 39,140,135 4,152,991 2,447,944 (148,211) 93,495,877
Total liabilities 46,148,503 10,795,679 13,223,062 2,519,820 9,940,488 (148,211) 82,479,341
For the year ended 31 December 2005
Depreciation 41,820 11,124 2,687 3,617 4,521 – 63,769
Capital expenditure incurred 20,048 424 1,339 574 5,021 – 27,406
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.
Insurance business includes the Group’s life assurance and general insurance businesses. Through the Group’s
life insurance subsidiaries in Hong Kong and Macau, the Group offers a variety of life insurance products
and services. The Group’s general insurance business is conducted through a 51% owned joint venture which
becomes a wholly-owned subsidiary in December 2006 operating in Hong Kong and a 96% owned subsidiary
in Macau.
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 acquisition of Banco Comercial de Macau, S.A., Macau Insurance Company Limited
and Macau Life Insurance Company Limited 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
Total operating income net of
insurance claims 2,799,213 315,065 – 3,114,278
Profit before income tax 1,846,317 122,861 – 1,969,178
Profit for the year 1,598,109 103,614 – 1,701,723
Depreciation 65,943 19,818 – 85,761
Capital expenditure incurred 31,009 9,846 – 40,855
As at 31 December 2006
Total assets 99,497,800 11,436,218 (1,886,021) 109,047,997
Total liabilities 89,064,397 9,460,076 (1,886,021) 96,638,452
Contingent liabilities and commitments 43,148,836 1,974,306 (163,408) 44,959,734

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Hong Kong and Inter-segment
others Macau elimination Total
For the year ended 31 December 2005
Total operating income net of
insurance claims 2,248,323 9,966 – 2,258,289
Profit before income tax 1,420,754 3,304 – 1,424,058
Profit for the year 1,234,253 1,948 – 1,236,201
Depreciation 63,769 – – 63,769
Capital expenditure incurred 27,406 – – 27,406
As at 31 December 2005
Total assets 84,412,657 9,919,478 (836,258) 93,495,877
Total liabilities 75,082,961 8,232,638 (836,258) 82,479,341
Contingent liabilities and commitments 36,517,174 1,862,493 (17,901) 38,361,766
5. Net trading income
2006 2005

Dividend income from trading securities
– listed investments 22,289 16,751
Net gain arising from dealing in foreign currencies 148,693 183,024
Net gain arising from financial instruments designated at fair value
through profit or loss, trading securities and derivatives 186,180 60,426
357,162 260,201

6. Other operating income
2006 2005

Dividend income from investments in available-for-sale securities
– listed investments 3,599 4,394
– unlisted investments 21,796 15,779
Gross rental income from investment properties 18,161 12,541
Other rental income 6,506 6,146
Increase in value of in-force long-term life assurance business 64,882 75,248
Others 11,959 4,777
126,903 118,885

7. Operating expenses
2006 2005

Employee benefit expenses (including directors’ remuneration) 718,146 550,712
Depreciation 85,761 63,769
Premises and other fixed assets expenses, excluding depreciation 132,225 102,767
Others 399,224 283,317
1,335,356 1,000,565

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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 74,048 77,783
161,253 130,640
2006 2005

Of which:
– new allowances (including amounts directly written off in the years) 339,689 298,779
– releases (81,302) (73,569)
– recoveries (97,134) (94,570)
161,253 130,640

9. 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. Income tax expense 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 214,513 168,913
– Overseas taxation 18,494 1,877
– Over-provision in prior years (1,367) –
Deferred income tax 35,815 17,067
267,455 187,857

10. Basic and diluted earnings per share
2006 2005

HK$ HK$
Earnings per share
Basic 5.59 4.09
Diluted 5.58 4.09
Earnings per share (normalised by excluding profit on
disposal of interests in subsidiaries)
Basic 4.83 4.09
Diluted 4.82 4.09
The calculation of basic earnings per share is based on earnings of HK$1,397,126,000 (2005: HK$1,019,318,000)
and the weighted average number of 250,088,234 (2005: 248,937,469) shares in issue during the year.
The calculation of normalised basic earnings per share excluding profit of HK$189,443,000 realized on disposal of
interests in subsidiaries is based on normalised earnings of HK$1,207,683,000 (2005: HK$1,019,318,000) and the
weighted average number of 250,088,234 (2005: 248,937,469) shares in issue during the year.
The calculation of diluted earnings per share is based on earnings of HK$1,397,126,000 (2005: HK$1,019,318,000)
and the weighted average number of 250,469,704 (2005: 248,962,096) shares in issue during the year after adjusting
for the effect of all dilutive potential ordinary shares.

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The calculation of normalised diluted earnings per share excluding profit of HK$189,443,000 realized on disposal
of interests in subsidiaries is based on normalised earnings of HK$1,207,683,000 (2005: HK$1,019,318,000) and
the weighted average number of 250,469,704 (2005: 248,962,096) shares in issue during the year after adjusting
for the effect of all dilutive potential ordinary shares.
11. 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 1,626,521 1,176,193
Gross advances and other accounts 52,384,915 47,137,656
Less: impairment allowances
– Individually assessed (136,746) (167,436)
– Collectively assessed (218,351) (230,743)
(355,097) (398,179)
Advances and other accounts 52,029,818 46,739,477
(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

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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.
(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 and 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 allowance 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 As at advances
31 Dec 2006 to customers 31 Dec 2005 to 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 as shown above
% of total % of total
As at advances As at advances
31 Dec 2006 to customers 31 Dec 2005 to customers
Rescheduled advances 69,106 0.14 181,654 0.40
Impairment allowances 6,886 25,123

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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.
(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
12. Reserves
As at As at
31 Dec 2006 31 Dec 2005
Reserves
Share premium 984,286 984,286
Retained Earnings 7,433,110 6,563,670
Premises revaluation reserve 541,930 492,433
Investment revaluation reserve 10,661 (18,630)
Exchange reserve (33) (213)
General reserve 574,612 574,612
9,544,566 8,596,158

Proposed final dividends included in retained earnings 400,141 340,120
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.

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FINANCIAL RATIOS

Year ended Year ended
31 Dec 2006 31 Dec 2005
Net interest income/operating income 65.1% 61.9%
Cost to income ratio 42.9% 44.3%
Loan to deposit (including certificates of deposit) ratio 65.9% 68.2%
Return on average total assets (Note 1) 1.2% 1.2%
Return on average shareholders’ funds (Note 1) 12.6% 11.8%
Dividend payout ratio (Note 1) 48.7% 50.9%
Capital adequacy ratio (Note 2) 16.6% 16.6%
Average liquidity ratio (Note 3) 58.0% 55.2%
Net interest margin 2.36% 1.98%
Note:
1. The normalised attributable profit of HK$1,207,683,000, excluding profit on disposal of interests in subsidiaries totalling
HK$189,443,000, is used in calculating the profitability and dividend payout ratios for the year ended 31 December
2006.

2. The capital adequacy ratio represents the combined ratio of the banking subsidiaries within the Banking 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.
3. 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 of each Hong Kong banking subsidiary
within the Banking Group is computed with reference to the methods set out in the Fourth Schedule of the Banking
Ordinance.
4. Only the locally incorporated banking subsidiaries within the Group are subject to the minimum capital adequacy ratio
and liquidity ratio requirements 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.
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$1.60 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.

— 15 —
For the year, our operating profit after loan impairment grew by 44% to HK$1.6 billion, our profit attributable to
shareholders grew by 37% to HK$1.4 billion, our normalised EPS grew by 18% from HK$4.09 to HK$4.83, and our
total assets grew by 17% from HK$93 billion to HK$109 billion.
Our core banking 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.
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.
Our insurance business performed strongly, both in life assurance and in general insurance. The life business benefited
from premium growth, including a return to sales of single premium products and the successful introduction of direct
sales through telemarketing, to supplement the traditional whole of life and endowment products, as well as benefiting
from the strong investment markets during the year. Our general insurance business performed well, and we maintained
both our leading market position in Macau, as well as our “A” rating from AM Best. We announced in December that
we had agreed to purchase the 49% interest in Dah Sing General Insurance Company Limited that we did not already
own, bringing all of our Hong Kong insurance businesses to 100% ownership.
In the Mainland, our 20% owned associate, Great Wall Life Insurance Company (“Great Wall Life”) continued to grow
rapidly, reporting tenfold growth in premiums relative to 2005 when the business commenced. As this business is still
in its early stage of development, it continues to report operating losses, which we expect will be mitigated over time
both by the growth of the business and potentially by the adoption of embedded value accounting, which we currently
employ for our Hong Kong and Macau life businesses, but which Great Wall Life has not yet implemented.
In February 2006, DSFH announced that it had placed a further 3.6% of the shares in DSBG in order to restore the
public float of DSBG to above the 25% level, raising approximately HK$506 million for DSFH, and generating a profit
on disposal of HK$189 million.

— 16 —
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$1,397 million. Excluding
the exceptional gain of HK$189 million arising from the Company’s placement of a 3.6% interest in DSBG, the
normalised attributable profit was HK$1,208 million, which represented an increase of 18.5% when compared with
2005. The increase was driven mainly both by significantly higher net interest income and non-interest income.
Net interest income for the year increased by 45% to HK$2,029 million from HK$1,398 million in 2005. The strong
increase was the result of (1) wider Prime-Hibor spread, (2) higher average loan balance and (3) contribution from PF
and BCM portfolios. The impact of these positive factors more than outweighed the negative impact of rising funding
costs to net interest income, especially from fixed-rate assets. The net interest margin of our Banking Group was
2.36%, up from 1.98% in 2005. Relatively benign HK$ 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 42%, 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.
Net trading income increased due mainly to the stronger returns on both bond and equity portfolios of our Insurance
Group.
Net insurance premium income, incorporating insurance premium income generated by our Macau insurance subsidiaries
acquired at the end of 2005, grew strongly by 34% to HK$1,005 million, due both to continuing good persistency
levels as well as new business, both single and regular premium. Against such a stronger income, the net insurance
claims including transfer to insurance reserves, also including those related to our Macau insurance subsidiaries, rose
by 45% to HK$909 million. The sales mix, together with a strong performance from the investment book of the life
business relating to a steady bond market and a stronger global equity market in 2006, led to a relatively strong growth
in statutory profits despite a higher cost base and a weaker embedded value performance, whilst overall profit before
taxation from the insurance business grew strongly from HK$213 million to HK$273 million in 2006, up 28%.
Operating expenses rose 34% 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 recognized in acquiring PF and BCM. Intangible
amortization costs amounted to HK$46 million whilst the newly acquired subsidiaries’ costs (including acquisition
related costs) in 2006 totaled HK$204 million. Excluding these expenses with corresponding normalisation of the
2005 cost base, on an organic growth basis, operating expenses increased by 11.8% as compared to 2005.
Cost income ratio for the year was 42.9%, lower than 44.3% in 2005.
Operating profit before loan impairment charges was HK$1,779 million, up 41% 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.

— 17 —
Operating profit after impairment charges was HK$1,618 million, 44% higher than 2005.
An exceptional gain of HK$189 million was realized on the placing of 3.6% interest in DSBG held by the Company in
February 2006 to raise DSBG’s public float to 25.1%.
We recorded a gain of HK$64 million relating to the revaluation of our investment properties and reversal of past
impairment on bank premises, a gain of HK$91 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$1,969 million, an increase of 38% over the previous year. Excluding the
exceptional gain of HK$189 million, the normalised profit before taxation was HK$1,780 million, an increase of 25%
over 2005.
Profit attributable to shareholders, increased by 37% including the exceptional gain to HK$1,397 million for the year,
and increased by 18.5% to HK$1,208 million excluding this gain.
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 totalled HK$2.3 billion. The loan to deposit ratio decreased from 68.2%
as at 31 December 2005 to 65.9% 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.
As at 31 December 2006, the total value of our Hong Kong and Macau in-force long-term life assurance businesses
(embedded value) as calculated in conjunction with the independent actuary was HK$811 million, and shareholders’
funds employed in our life and non-life insurance business increased to HK$1,169 million, giving an overall book
value for the insurance business in the accounts of DSFH of HK$1,980 million, an increase of 21% over 2005.
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.
We are devoting additional resources to grow our life business, particularly in Hong Kong where we are expanding our
agency force and making additional efforts to improve bancassurance productivity, and expect good growth in sales in
this business in 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.

— 18 —
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 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 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 to 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.
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 DSFH are Messrs. David Shou-Yeh Wong, Hon-Hing
Wong (Derek Wong), Roderick S. Anderson, Gary Pak-Ling Wang and Nicholas J. Mayhew. The independent non-
executive Directors are Messrs. Peter G. Birch, Robert Tsai-To Sze, Tai-Lun Sun (Dennis Sun) and Kwok-Hung Yue
(Justin Yue). The non-executive Directors are Messrs. Chung-Kai Chow, Kunio Suzuki (Kenichi Yonetani as alternate),
Tatsuo Tanaka (Keisuke Tahara as alternate), Eiichi Yoshikawa, John Wai-Wai Chow and Yiu-Ming Ng.
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