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Polarisgsg
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18-Sep-2007 11:05
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Just checking - have anyone receive dividend? OVERSEA-CHINESE BANKING CORP
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Pinnacle
Master |
18-Sep-2007 10:14
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Oversea-Chinese Banking Corp (OCBC), Singapore's smallest bank, said yesterday that fund manager Aberdeen Asset Management now held a stake of just over 5% in the bank, but that did not make it a substantial shareholder. The bank said in a statement that the Monetary Authority of Singapore had also allowed Aberdeen's Asian arm and its subsidiaries to hold up to 10 per cent of the bank's issued ordinary shares, provided that the shares on which they are able to exercise voting rights do not exceed 5%. OCBC said Aberdeen had a stake of 5.025 per cent. The price and timing of the acquisition were not released, but at current market levels the stake would be worth S$1.35 billion. A separate statement from Aberdeen said the fund manager had voting rights on only 3.24% of the shares. The share purchase does not make the fund manager a substantial shareholder in the bank, OCBC said. |
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ghlau935
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14-Sep-2007 10:14
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0110 GMT [Dow Jones] STOCK CALL: UOB KayHian reiterates Buy on OCBC (039.SG) with S$10.80 target; tips OCBC to continue to outperform DBS (D05.SG). DBS rated Hold, but says would turn buyer below S$19.50; has S$22.80 target. "We are more optimistic on OCBC's longer-term growth due to its larger exposure to faster-growing economies." Marking-to-market of OCBC's 10% stake in Bank of Ningbo seen as catalyst; will take effect from 3Q07; says could add S$0.42/share to OCBC's book value (from 2Q07's S$4.39/share). Says "we expect more market players to raise their price targets on OCBC as the book value increases." OCBC currently +1.1% at S$8.85; DBS currently +1.0% at S$19.80. (KIG) |
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ngchunleng
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07-Sep-2007 22:22
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hi folks, any target price for this counter? i aiming >9 in near future... |
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Pinnacle
Master |
06-Sep-2007 10:27
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Banks are tightening up on the way they lend money for buying homes while the property market is coming off the boil. With the world's financial markets in turmoil, following a crisis in US mortgage lending to people with bad credit records, bankers in Singapore say that when it comes to assessing home loan applications, the ability of borrowers to pay is paramount. |
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Pinnacle
Master |
04-Sep-2007 10:25
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DBS VickersBanking SectorJul-07 stats: All time high loan growthLoan growth at its highest so far. The system?s domestic loans grew its best at 10.9% y-o-y and 4.6% q-o-q against 10.3% y-o-y and 3.8% q-o-q in Jun-07. Consumer loans grew its strongest since mid-05 particularly housing loans, which was at its peak. Business loans accelerated at 15.1% y-o-y and 6.1% y-o-y to dominate the system?s growth for the month. Housing loans growth at its best. Housing loans grew at the strongest pace since Aug-05 at 8.1% y-o-y and 3.8% q-o-q in Jul-07, in line with the influx of private residential activities thriving from bullish home sales and expectations of en-bloc sales. We expect the momentum to continue into 2H07. In addition, as the deferred payment schemes reached maturity i.e. as property projects near completion, buyers would need to seek financing. While we believe all three domestic banks would generally benefit, we gather that domestic banks are gradually turning cautious and selective in mortgage lending. UOB has the highest estimated market share at 22%. Construction loans took a slight breather. Construction loans growth was slower in Jul-07 at 18.9% y-o-y and 5.2% q-o-q (Jun-07: 20.8% y-o-y and 8.2% q-o-q). We still think construction loans will accelerate in view of increased construction demand and hence flow through to the volume of construction loans. DBS has the largest estimated market share at 30% followed by OCBC at 29% and UOB at 26%. Higher low cost deposit growth. We note that demand and savings deposits continue to overwhelm fixed deposit growth and we believe this could be a deliberate strategy by banks to maintain NIMs. Despite flattish interest spreads, we believe lower funding costs coupled with volume of loan growth would at least maintain healthy NIMs for banks. Maintain Overweight. Despite the recent problem on CDOs and risk on US sub-prime mortgages, we believe that the fundamentals of banks are still intact. We believe that banks? would continue to deliver strong results coupled with loan growth in view of the strong macro-economic backdrop. We maintain our Overweight rating on banks with UOB (Buy, TP $27.50 as our top pick. We also have a Buy rating for OCBC with target price of $10.20. |
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Pinnacle
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03-Sep-2007 10:12
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A pick up in Singapore housing loans has spurred the greatest rise in domestic bank lending in more than 9 years. Bank loans climbed 10.9% in July from a year earlier to S$211.1b. |
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tomwong
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01-Sep-2007 08:46
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waiting for them to drop so as to pick up some... | |||||||||||||||||||||||||
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soloman
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01-Sep-2007 08:14
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Sorry - banks no cheong CNN : No rate cut is imminent Bernanke pointed out that it not the Fed''s responsibility to protect lenders and investors from the consequences of their financial decisions |
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Pinnacle
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31-Aug-2007 15:56
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Bank to cheong next week? |
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Pinnacle
Master |
31-Aug-2007 15:48
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SINGAPORE, Aug 31 (Reuters) - Singapore's Straits Times Index <.STI> was up 1.62 percent at 0730 GMT. Stocks and factors to watch: Bank stocks rose on investor hope that U.S. President George W. Bush's proposal to help homeowners avoid default with subprime mortgages, due later on Friday, will lift financial stocks there and trigger a rally in Singapore next week. DBS Group Holdings President Bush's proposal will be his first public step to address the crisis that has created turmoil in financial markets around the world. "George Bush's announcement expected tonight has provided the catalyst to bargain hunt on the banks, not so much Bernanke's speech," said a dealer at a local stockbroker. Federal Reserve Chairman Ben Bernanke will speak at a conference later on Friday, an event which investors will watch closely for the central bank's intention to cut benchmark U.S. interest rates soon. But some market watchers expect Bernanke's speech to have limited impact on the markets. "At the moment, rate cuts have already been priced in. Only if there is no rate cut, will there be big disappointments which will cause equity markets to react very negatively," said Daphne Roth, vice president of Asia Equity Research for ABN Amro Private Banking. |
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Pinnacle
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31-Aug-2007 09:57
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China to allow foreign banks to distribute funds SHANGHAI, Aug 30 (Reuters) - China plans to allow foreign banks to distribute products for domestic fund houses, opening up a new revenue source for overseas lenders in the fast-growing economy, sources close to the situation said on Thursday. The China Banking Regulatory Commission has agreed in principle to allow foreign banks, starting in the fourth quarter of this year, to kick off fund distribution businesses for China-based fund management companies, the sources told Reuters. The plan still needs approval from the China Securities Regulatory Commission, the country's top securities regulator, which is revising rules to enable foreign banks to enter the business, the sources said. "Foreign banks and fund companies are all targeting the same type of customer -- middle-class Chinese families," said one of the sources who was briefed on the plan by regulators. "The government is also encouraging individual investors to rely on professional fund managers so the stock markets are expected to become more stable and less speculative," he added. Currently, foreign banks in China are only allowed to distribute insurance policies for China-based insurers. Foreign banks have been lobbying Beijing for more than a year to allow them to distribute mutual funds, which are becoming increasingly popular among Chinese investors amid a stock market bull-run which started early last year. Some foreign banks such as HSBC Holdings Plc and JPMorgan have already teamed up with Chinese partners to set up fund management joint ventures. China's mutual fund industry had grown to around 1.8 trillion yuan ($238.4 billion) as of the end of June compared with almost nothing just a few years ago. There are about 60 fund management companies in China, half of which are Sino-foreign joint ventures. Most of them now rely on a national network of big Chinese banks such as Industrial and Commercial Bank of China (ICBC), China's biggest lender, for distribution. Foreign banks including HSBC and Hong Kong's Bank of East Asia have communicated with Chinese regulators but have not yet formally applied for the new business as the CSRC has not yet revised its rules, the sources said. Compared with big national banks like ICBC, which operates thousands of outlets in major Chinese cities, network coverage of foreign banks is so far limited. Bank of East Asia runs about 40 outlets across the country. Many of its wealth management clients are millionaires, while ICBC has many clients who are retirees and working-class people. " You can imagine how much money a VIP client of a foreign bank can invest in a mutual fund product if the product is really attractive to him," said another of the sources. "So I think the new distribution business will be a very good new point of profit growth for the consumer banking businesses of foreign banks in China," he added. ($1=7.55 yuan) |
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Pinnacle
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22-Aug-2007 09:22
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New revenue coming in.. THE STRAITS TIMES - Singapore's central bank is drafting new rules to pave the way for Singapore banks to take up mortgage insurance for the first time. |
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Pinnacle
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21-Aug-2007 09:51
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KIM ENG - Singapore Banks
2Q07 earnings review: DBS led loans growth, UOB outperformed fee incomeThe Singapore banks posted 2Q07 results that beat our expectations. UOB posted the best earnings growth of 12.9% sequentially in 2Q07 due to strong non-interest income and cost management. DBS recorded the fastest loans growth of 5% sequentially and 19% Y/Y driven by corporate and SME loans. UOB posted slightly lower loans growth at 17.5% Y/Y but housing loans outperformed (+18% Y/Y). Despite milder loans growth, OCBC posted the fastest net interest income growth due to vast NIM improvement from 2.04% to 2.13% asa result of a shift toward lower cost of funding. For fee based income, UOB recorded the strongest growth in 2Q07 (+27.4% sequentially) led by fund management, investment and trade related activities. UOB also recorded huge trading gains of S$171m in 2Q07, and has the lowest expense ratio among the Singapore banks. DBS has the best asset quality with NPLs standing at 1.4%. UOB charged the highest provisioning of S$84m in 2Q07 while OCBC continues to enjoy loans recoveries. DBS, UOB and OCBC declared DPS of 40 cents, 35 cents and 14 cents respectively for 1H07. Singapore banks expect minimal impact from CDOsThe local banks have a total of S$2.3b collateralized debt obligations (CDOs)with S$645m in ABS CDOs. More than 60% of the CDOs are at least A grade. The Singapore banksreassured investors that their exposure to CDOs is small and do not expect material impact to their earnings. They are not leveraged in positions and intend to hold the CDOs until maturity. With regards to their CDOs under asset management which amounted to S$19bn in total, the local banks highlighted that risks are distributed to institutional or sophisticated investors. As most of the CDOs owned by local banks are held on available for sale basis and are meant to be held to maturity, mark-to-market losses will most directly affect equity. On prudent account, we factored full impairment of the Singapore bank?s exposure to CDOs on their net asset values(NAV). As such, we reduced DBS?s forward NAV by 6%, UOB by 2.2% and OCBC by 4.5% respectively. Trimming earnings estimates in view of slower fee-base income from 2H07We also expected more muted fee-based income growth from 2H07 in view of the volatile market conditions on the back of lingering US sub prime mortgage concerns and potential adverse impact on consumer spending on financial products. As we trimmed our fee income growth forecasts from 13-20% to 5-8%, our FY07/08 earnings estimates for the Singapore banks were lowered by approximately 1-2%. As at 1H07, OCBC has the highest portion of non-interest income to total income at 48.4% compared to 38.9% for UOB and 33.8% for DBS.
Strong fundamentals intact
Despite choppy market sentiments, we remain upbeat on the Singapore bank?s earnings prospects. Earnings growth is likely to remain buoyant on the back of resilient domestic economy (2Q07 GDP rose 8.2% Y/Y ahead of expectations), resurgent construction (completion of the 2 multibillion integrated resorts by 2009), as well as growing regional exposure. The Singapore banks are growing their branch network in Southeast Asia and China. Faster loans growth and higher NIMs from these regions will add diversity and resilienceto the banks? earnings. Moreover, Singapore banks boost strong asset quality with NPL ratio at below 2.8%, and strong cumulative coverage on non-performing assets at above 100%.
Accumulate opportunity for DBS and UOBIn line with our regional blended PBV and lower earnings estimates, we have trimmed our target prices for DBS from S$25.50 to S$24.20 (1.9x FY08 PBV); UOB from S$24.30 to S$23.80 (1.9x FY08 PBV); and OCBC to S$9.50 (1.95x FY08 PBV). We maintained our Buy ratingon DBS due to its laggard valuation, market leadership on low-cost deposits and resilient NIM. We keep a Buy on UOB in view of its strong excess capital position (close to S$2bn) and S$600m share buyback program to provide growth and defensiveness to the stock. Reiterate Hold on OCBC.
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Pinnacle
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20-Aug-2007 08:50
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JP MorganBanks may be in focus on Monday after Wall Street's rebound on Friday, and after JPMorgan published a positive research note on Singapore's banking sector. U.S. stocks surged on Friday to end a turbulent week after the Federal Reserve cut the discount rate it charges banks in an emergency move to stabilise credit markets and keep the economy on track. JPMorgan said in a note on Monday that it remains "fundamentally positive" on Singapore banks. "It appears overall that the stocks are trading very close to floor valuations and should witness near-term support, though significant outperformance does not seem likely in light of newsflow risk," JPMorgan analysts Harsh Modi and Sunil Garg said. |
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Pinnacle
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16-Aug-2007 15:34
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Singapore Banks? Capital Adequacy RatioMay need to be built up to accommodate future loan growthThe 3 Singapore banks recorded robust loan expansion in the recent past.
With the recent robust loan expansion, the 3 banks have seen some declines in their CARs
DBS may be constrained if they want to increase loan by more than 7%.
On the other hand, if we use Total Capital as the limiting factor (based on banks aiming to keep Total CAR at above 13%), all 3 banks still have scope to expanded loan book by at least another 16%.
There are more options available to raise Total CAR than to raise their Tier 1 CAR. Hence, we feel that the more critical constraint to loan expansion is Tier 1 CAR ? in which case DBS may need to start raising Tier 1 Capital soon or have to curtail their loan expansion. As for OCBC, at a later stage, there will also be a need to start increasing their Tier 2 Capital in order to accommodate future loan expansion.
DBS remains HOLD. OCBC is a BUY. |
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Pinnacle
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14-Aug-2007 12:11
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Standard & Poor's Ratings Services said today it has reviewed the rated Singapore banks' exposure to U.S. subprime mortgage-related instruments and has determined that their exposure is negligible at this time. Standard & Poor's includes DBS Bank Ltd. (AA-/Stable/A-1+), United Overseas Bank Ltd. (UOB; A+/Stable/A-1), and Oversea-Chinese Banking Corp. Ltd. (OCBC; A+/Stable/A-1) in Group 1 of the three risk groups defined in the article "U.S. Subprime Impact Limited On Rated Asia-Pacific Banks And Insurers," released on Aug. 3, 2007. Standard & Poor's believes that Group 1 entities have negligible exposure. The three banks have disclosed their investments in CDOs as follows: --DBS Bank-US$850 million, of which 22% (or US$188 million) are in ABS; --UOB-Singapore dollar (S$) 392 million, of which 23% (or S$91 million) are in ABS; and --OCBC-US$430 million, of which 42% (or US$180 million) are in ABS. Singapore banks' holdings of ABS amounted to 0.5% to 2% of their shareholders' equity as of June 30, 2007, and to 3.5% to 13% of their net profit before tax for fiscal 2006. As only a small portion of these exposures is estimated to be related to U.S subprime mortgage-related instruments, Standard & Poor's anticipates the most likely financial impact from such exposure on Singapore banks to be insignificant. Naturally, Standard & Poor's continues to monitor effects from the U.S. subprime situation on other market segments which may impact these Singapore banks and could result in rating action. |
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Pinnacle
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13-Aug-2007 14:28
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DBS Vickers - Banking SectorCDO impact an over-reactionSingapore banks have shed light on their respective exposures to CDOs. We gather that the banks have investments in CDOs but they are not directly exposed to the US sub-prime mortgages. For their respective asset management arms, we understand that such funds with exposure to the US sub-prime market are minimal. We understand banks intend to hold the CDOs until maturity and we believe there is no intention to liquidate them. We note that there has been no rating downgrades on any portion of their respective portfolio to date. Under the accounting treatment, mark-to-market changes in the banks CDO portfolio will be set-off against its fair value reserves. We note that UOB and OCBC have marked down a portion of their CDO portfolio due to low liquidity in the CDO market. We are maintaining our overweight stance on banks despite concerns on the CDO exposure as we believe the banks fundamentals remain sound. We still believe that growth would emanate from strong loan growth, mainly from private residential and construction sectors. |
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Pinnacle
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10-Aug-2007 11:15
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DBS VickersPrice Target : 12-month S$ 10.202Q07 results above expectations; CDO exposure explained BUY S$8.70; Story: OCBC?s annualised core 2Q07 earnings were above our estimates and consensus for the second consecutive quarter. Management addressed concerns on OCBC?s exposures to CDOs Point: OCBC?s performance for the quarter was driven mainly by non-interest income and supported strongly by net interest income. Management explained that while it has investments in CDOs, but to-date, there have been no losses or ratings downgrades of any CDO investments of OCBC Bank and GEH, as well as CDOs managed by Lion Capital. Relevance: Maintain Buy with target price unchanged at $10.20 based on the Gordon Growth Model. We have revised our FY07-09 earnings upwards in view of higher non-interest income. |
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Pinnacle
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10-Aug-2007 09:24
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Phillip Securities ResearchCore net earnings increased S$518m (+65.0% yoy, +2.0% qoq, 1Q07: S$510m), attributed to higher non-interest income and net interest income over the year. Net interest income rose to S$558m (+28.3% yoy, +9.8% qoq, 1Q07: S$508m) driven by growth in interest earnings assets and better interest margins to 2.13% (2Q06: 2.00%, 1Q07: 2.04%) as compared to a year ago. Non-interest income boosted to S$493m (+49.9% yoy, -2.6% qoq, 1Q07: S$506m) over the year due to higher fee income of S$217m (+53.9% yoy, +21.9% qoq, 1Q07: S$178m). The Group reiterates that there are no losses or ratings downgrades for any CDO investments and will continue to watch developments in the financial markets closely, given the spillover impact these developments may have on the economies in the region. OCBC is reaping the harvest in expanding its customer franchise over the year by getting close to people?s hearts through offering innovative initiatives like Full Sunday Banking Service, supermarket banking with NTUC, branch transformation project etc. These initiatives helped increase their low cost deposits base, which in turn improved their net interest income and net interest margins significantly despite a fall in local market interest rates. OCBC declared a net dividend of 14 cents per share this quarter. Bank of Ningbo was listed on 19th July 2007 on Shenzhen Stock Exchange and it is trading at RMB 29.48 as of 8 August 2007. With the cost of only RMB 2.28 per share, mark to market gains of S$1.36b will be reflected to equity from 3Q07. We maintain OCBC?s target price to S$10.90, 2 x FY08 NAV based on our Gordon growth model. Outlook wise, Singapore loans growth is still strong due to the construction activities and property sector. However, overall market sentiments may weigh down the stock price despite optimistic outlook. Maintain BUY. |
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