The Directors of Dah Sing Financial Holdings Limited (the "Company") announce that the unaudited profit attributable to shareholders was HK$340.9 million for the six months ended 30th June 2000, up 40.4% from the HK$242.8 million for the same period in 1999.

UNAUDITED INTERIM FINANCIAL STATEMENTS
The accounting policies used in preparing the unaudited interim financial statements of the Company and its subsidiaries (the "Group") are consistent with those adopted in the 1999 annual financial statements.

UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the six months to 30th June

CHARGE FOR BAD AND DOUBTFUL DEBTS
for the six months to 30th June

TAXATION
Hong Kong profits tax has been provided at 16% (1999: 16%) on the estimated assessable profit for the period.

Included in the taxation is the attributable share of estimated Hong Kong profits tax losses arising from investments in limited partnerships. The Group's investments in limited partnerships are written off in the same year as the taxation benefits resulting from those investments are received and utilised.

There is no significant deferred taxation liability not provided for.

BASIC AND DILUTED EARNINGS PER SHARE
The calculation of basic earnings per share is based on earnings of HK$340,871,000 (1999: HK$242,786,000) and the weighted average number of 245,931,000 (1999: 243,648,861) shares in issue during the period.

The calculation of diluted earnings per share is based on earnings of HK$340,871,000 (1999: HK$242,786,000) and the weighted average number of 246,245,893 (1999: 243,887,817) shares in issue during the period after adjusting for the effect of all dilutive potential ordinary shares.

ADVANCES TO CUSTOMERS AND OTHER ACCOUNTS

GROSS ADVANCES TO CUSTOMERS BY INDUSTRY SECTOR

THE TOTAL ADVANCES ON WHICH INTEREST IS BEING PLACED IN SUSPENSE OR ON WHICH INTEREST ACCRUAL HAS CEASED

OVERDUE ADVANCES

OVERDUE ADVANCES ARE RECONCILED TO NON-ACCRUAL ADVANCES AS FOLLOWS

AMOUNT OF RESCHEDULED ADVANCES

RESERVES

CONTINGENT LIABILITIES, COMMITMENTS AND DERIVATIVES

The credit risk weighted amounts and replacement costs of the above off-balance sheet exposures, without taking into account the effect of bilateral netting arrangements, are as follows:

The credit risk weighted amounts are the amounts which have been calculated in accordance with the Third Schedule of the Banking Ordinance and guidelines issued by the Hong Kong Monetary Authority. The amounts calculated are dependent upon the status of the counterparty and the maturity characteristics of each type of contract.

Replacement cost is the cost of replacing all contracts which have a positive value when marked to market (should the counterparty default on its obligations) and is obtained by marking to market contracts with a positive value. Replacement cost is considered to be a close approximation of the credit risk for these contracts at the balance sheet date.

CAPITAL ADEQUACY RATIOS

The capital adequacy ratio represents the consolidated ratio of the Banking Group. The capital adequacy ratio of each entity within the Banking Group is computed in accordance with the Third Schedule of the Banking Ordinance.

The adjusted capital adequacy ratio represents the consolidated ratio of the Banking Group. The adjusted capital adequacy ratio of each entity within the Banking Group is computed in accordance with the Guideline "Maintenance of Adequate Capital Against Market Risks" issued by the Hong Kong Monetary Authority. The adjusted ratio takes into account market risk.

LIQUIDITY RATIOS

The liquidity ratio is calculated as the simple average of each calendar month's average liquidity ratio for the period for the Banking Group. The liquidity ratio of each entity within the Banking Group is computed in accordance with the Fourth Schedule of the Banking Ordinance.

FINANCIAL RATIOS

INTERIM DIVIDEND
The Directors have declared an interim dividend of HK$0.42 per share for 2000, up 35.5% from that paid in 1999. The dividend will be payable on or after Monday, 4th September 2000 to shareholders on the Register of Shareholders at the close of business on Friday, 1st September 2000.

CLOSING OF REGISTER OF SHAREHOLDERS
The Register of Shareholders will be closed from Monday, 28th August 2000 to Friday, 1st September 2000, both days inclusive. In order to qualify for the interim dividend, all transfers accompanied by the relevant share certificates must be lodged with the Company's Registrars, Central Registration Hong Kong Limited, 17th Floor, Hopewell Centre, 183 Queen's Road East, Hong Kong for registration not later than 4:00 p.m. on Friday, 25th August 2000.

REVIEW OF BUSINESS
With the continued recovery in the local economy and an improvement in the economic fundamentals, a more stable operating environment was experienced in the first six months of 2000. The renewed confidence in the local market and a gradual re-rating of the economy's prospects led to increasing competition in the financial services market. However, with the high real rates of interest and sluggish loan demand, many banks, with a large pool of surplus liquidity, resorted to competing aggressively on loan pricing in order to reverse the contraction in their loan books brought about by the recession in the past 2 years.

The Group was able to achieve a stronger performance and profitability improved over the period. Operating profit before provisions was 13.6% higher, mainly resulting from the increased revenue contribution from our banking business.

Net interest income grew by 15.9% in the first six months of the year. Despite the keen pricing competition in the residential mortgage sector, and rises in interest rates, our net interest margin increased to 3.75% which is notably higher than the 3.45% reported for the first half of 1999. The widening in the net interest margin and the increase in net interest income were largely the results of a continued growth in our higher yielding lending and a more effective control in managing the increases in funding costs.

Other operating income was 1.0% higher than the same period in 1999, reflecting growth in fee and commission income in our banking business which was offset in part by the lower revenue contribution from the life assurance business. Our Banking Group posted a 25.4% increase in its other operating income, driven mainly by stronger credit card income and lending related fees. Our life assurance net contribution in the period, using the embedded value accounting treatment, fell to HK$26.4 million which was 40.5% lower relative to the HK$44.4 million profit booked in the first half of 1999.

Operating expenses increased by 9.9% relative to the same period in 1999, but was 4.1% below the second half of 1999. This rise was mainly caused by the increase in our IT investment to support business growth and to deliver e-banking services, higher spending on marketing promotion, and a higher level of staff expenses. With the stronger pace of growth in revenue, our cost to income ratio dropped to 39.4%.

The Group's charge for bad and doubtful debts was 22.4% lower compared to that of the first six months in 1999, reflecting the continued improvement in the asset quality of our loan portfolio and the positive impact of a stabilizing property market amidst the recovery of the local economy. The combined ratio of overdue and rescheduled loans of our Banking Group dropped from 4.93% at the end of 1999 to 4.58% at the end of June 2000.

For our banking business, total loans and advances to customers were flat compared to the total at the end of 1999. The growth in our consumer and commercial lending was offset by the contraction in mortgage loans, reflecting our increased emphasis on higher yielding lending and our more conservative approach in dealing with the pricing competition in the mortgage market. The small increase in our total deposit base relative to the end of 1999 was the result of our proactive asset and liability management that carefully balanced our need to maintain prudent liquidity whilst enhancing profitability.

Relative to the balance sheet at the end of 1999, there was a notable increase in our total assets, and a large increase in other accounts on the liability side of the balance sheet at the end of June 2000, reflecting the more proactive approach in managing our balance sheet. The increase was brought about by utilizing the facilities afforded to Dah Sing Bank as a market maker in Exchange Fund bills and notes which enabled us to access cheaper funding for reinvestment at higher rates of return.

Our life assurance business generated lower profits than the first half of last year with the rise in interest rates during the period resulting in a smaller increase in the embedded value contribution. Whilst the tough economic environment in Hong Kong and increased competition for life business caused a slowdown in the sales of new policies in the market, our new business sales were ahead of last year particularly in the first quarter but the trading result was adversely affected by lower equity values at the half year.

Riding on the investment and initiatives made in 1999, Dah Sing Bank continued to make notable progress in delivering on-line e-banking services and new product launches in the first six months this year. Our e-banking capabilities now include a host of different on-line applications, virtual ATM and on-line balance enquiry, transfer and bill presentment. We plan to offer more e-banking services in the coming few months.

In May 2000, the Hong Kong Monetary Authority issued its guideline governing the authorization of virtual banks in Hong Kong. We are continuing our evaluation and preparation to set up a stand-alone e-bank taking into consideration the key parameters set by the new guideline. We will shortly commence the reorganization of our Hong Kong based D.A.H. Private Bank's business with a transfer of the private banking operation to Dah Sing Bank. Subject to receiving all the required regulatory approvals and completing all the necessary infrastructure development, we are planning to convert our Hong Kong private bank to a stand-alone e-bank and start operating it before the end of 2000.

PROSPECTS
Due to the uncertainty on the direction of the US and Hong Kong interest rates, we maintain a cautious outlook for the second half of 2000. With a soft loan demand, pricing competition spreading to many banking sectors, added demand to invest in IT and people, we anticipate more challenges ahead amidst an increasingly competitive financial services market. The high level of net interest margin we achieved in the first half may not be sustainable.

We remain optimistic on the continued improvement in local economic performance and market sentiment. If the stabilization in property prices can be sustained, we hope to see a continued improvement in our asset quality and therefore a reduction in the loan loss charge in the coming few months.

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 ended 30th June 2000.

Hong Kong, Tuesday, 8^th August 2000