A display management processor receives an input image with enhanced dynamic range to be displayed on a target display which has a different dynamic range than a reference display. The input image is first transformed into a perceptually-quantized (PQ) color space. A non-linear mapping function generates a tone-mapped intensity image in response to the characteristics of the source and target display and a measure of the intensity of the PQ image. After a detail-preservation step which may generate a filtered tone-mapped intensity image, an image-adaptive intensity and saturation adjustment step generates an intensity adjustment factor and a saturation adjustment factor as functions of the measure of intensity and saturation of the PQ image, which together with the filtered tone-mapped intensity image are used to generate the output image. Examples of the functions to compute the intensity and saturation adjustment factors are provided.