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when they gonna declare dividend date payable
Chairman Peter Seah was asked I f would DBS still proceed with a 40% stake in Bank Danamon first. Note that smaller stake in Danamon would require a review of deal economics, as a 40% stake would not allow DBS to integrate with existing Indonesia business. BI deputy governor note that positive progress has been made in the talks, but Indonesia is now waiting for Singapore's response. While this is happening, further competition in Asean’s banking sector heats up as CIMB announced that it will pay nearly US$300m to buy a 58% stake in San Miguel Corp's banking unit. The deal involving San Miguel's unlisted unit, Bank of Commerce, which has assets worth more than US$2b, paves the way for CIMB's entry into the Philippines as part of Asean expansion drive.
What price can grab??
CLSA has a SELL rating, with TP of $17.16. DBS and Temasek have extended their agreement for another two months as they wait to hear back from the Singaporean and Indonesian regulators on reciprocity. This is unsurprising but house also believe it is likely that there will be further extensions of the extended agreement. Although not exactly the same, RHB capital had seven extensions over a period of 30 months relating to its proposed acquisition of Indonesian lender PT Mestika. The proposed Danamon deal is still far from a conclusion, in CLSA's view. CLSA are of the view that investors are becoming increasingly impatient for a decision and while are sympathetic to the difficult situation that DBS’ finds itself in, are hopeful that DBS’ will only allow a few more short extensions before setting a drop dead date.
Strong set of results which was way ahead of estimates. Net profit reached a record $950m vs street estimates of $824m, + 25% q/q and +2% y/y. Total income hit a new qtrly high at $2.32b, +7% y/y and +18% q/q, led by loan and deposit vol growth as well as a broad-based increase in non-interest income.
Net interest income at $1.33b, -1% y/y and +3% q/q, which included $4b of short-term financing for a corporate client, baring which underlying loan growth of 4% was led by trade finance, while grp’s Net interest margin increased 2 b.p q/q to 1.64% as underlying margin trends were stable from the previous qtr. Non-interest income increased 49% q/q to a record $990m, as Fee income rose to a new high at $507m, +25% y/y and +36% q/q, led by contributions from its wealth management and trade and transaction services, while loan-related fee income was also higher. In addition, stock broking and investment banking benefited from stronger capital market activities during the qtr. Other non-interest income +17% y/y and +64% q/q to $483m as customer income from cross-selling treasury products doubled to a qtrly high of $299m and accounted for 48% of total Treasury income. Trading gains were also higher due to more favorable market conditions.
Overall, grp’s fundamentals remains strong, with capital adequacy ratios maintained. DBS had a Tier 1 ratio of 12.9% and total capital adequacy ratio of 15.5% based on the Basel III capital frameworks which are above the standards prescribed by MAS. The grp had also doubled general allowances to cater for the stronger loan growth. DBS CEO note that after a slower 2H12, the grp started the year on a very solid note. Business momentum is strong, and growth has been broad-based, showing the impact of grp’s investments across all lines of business. Grp also benefited from favourable market conditions, enabling it to turn in yet another quarter of record earnings. At current price, DBS trades at 1.26x P/B
DBS Group Holdings, Southeast Asia’s largest bank, posted an unexpected increase in profit for the 11th straight quarter as fees and commissions and trading income rose.
Net income advanced 2% to $950 million in the three months ended March 31 from $933 million a year earlier, the Singapore-based lender said in a statement to the stock exchange today. That exceeded the $824 million average of six analysts’ estimates compiled by Bloomberg.
Chief Executive Officer Piyush Gupta is betting on fee- generating businesses such as wealth management and growth overseas through his proposed acquisition of PT Bank Danamon Indonesia as near-zero interest rates crimp lending margins in Singapore. Smaller rival Oversea-Chinese Banking Corp. earlier this week posted profit that beat analysts’ estimates.
“The Singapore banks have been increasingly focused on fee income in the low interest-rate environment,” Sharnie Wong and Abhimanyu Verma, Hong Kong-based analysts at Barclays Plc, said in a note to clients before the results. “The housing loan pipeline remains strong, despite recent property cooling measures by the Monetary Authority of Singapore.”
Shares of DBS have gained 13% this year, more than a 6.4% advance for the benchmark Straits Times Index.
Fees, Commissions
Net fees and commissions climbed 25% from a year earlier to $507 million, led by investment banking, wealth management and loan-related fees, DBS said in today’s statement. Other non-interest income advanced 17% to $483 million on a 26% gain in trading income.
DBS’s net interest income, or the difference between what it makes from lending and pays on deposits, was little changed at $1.3 billion.
Its net interest margin narrowed to 1.64% in the quarter from 1.77% a year earlier. Singapore’s banks have the lowest margins in Southeast Asia, averaging 1.94% at the end of last year, data compiled by Bloomberg show.
OCBC, Southeast Asia’s second-largest lender, on April 30 reported first-quarter profit that fell less than analysts estimated as an increase in fees and commissions outweighed narrowing net interest margins. Its net income declined 16% to $696 million.
Danamon Bid
Gupta is awaiting approval on his US$6.8 billion ($8.4 billion) bid last year for Bank Danamon to tap earnings in Indonesia, where the average net interest margin for lenders is about 6.3%, the highest in Southeast Asia. Bank Indonesia will probably have a decision by early May on the proposed acquisition, Governor Darmin Nasution said on April 15.
Indonesia’s economy is expected to grow 6.25% this year, the fastest among Southeast Asian countries, according to the median estimate from a Bloomberg survey of economists. Singapore’s gross domestic product shrank an annualised 1.4% in the three months through March 31 from the previous quarter, when it rose 3.3%.
DBS’s loan book expanded 13% from a year earlier to $223.7 billion in the three months. Provisions for credit and other losses increased 55% to $223 million.
Singapore’s average monthly credit growth slowed to about 19% in the quarter from 27% a year earlier, according to Bloomberg calculations based on Monetary Authority of Singapore data.
Prices are attempting to retest and break above resistance of $16.08. Quarterly momentum has turned up and appears poised to break above its own resistance. ADX has turned up and the DIs are positively placed.
A successful breakout by momentum — which is in positive territory — would trigger a price breakout. An earlier breakout indicated a target of $16.50 and this remains valid. A break above $16.08 points to a measured move to $16.90. Volume is expanding, suggesting that the break should be good.
looks like DBS did a mad rush from 15.35 and opened gap up to 16.08 today and then reacted down ( now 15.80) alright according to plan of 18 mar - Cyprus black monday .
hello123 ( Date: 18-Mar-2013 02:31) Posted:
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Young and sweet:)
hello123 ( Date: 01-Apr-2013 04:08) Posted:
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Sweet 16 is just my short-term target in the so called " mad dash to 16 from 15.35" for some dbs call wrt play for my students in this cyprus banking crisis which managed to reap rewards of 30% in 10 days , i expect a small down reaction here then further upside before we see much stronger down reaction at 16.60-90 .. as to at which exact price in this band will the strong down reaction occur exactly , stay tuned or write me an email .
Hello123, u said your chart shows a very strong resistance at 16.05. After it drops from 16.05, will it surpass this 16.05 and reach sweet 17? Or price will range bound below sweet 16?
DBS bounced from 15.35 to hit sweet 16 thurs 28 mar as predicted in the midst of the Cyprus crisis 10 days prior on 18 mar.
for more details, see my dbs chart ( click here) tq
hello123 ( Date: 18-Mar-2013 02:31) Posted:
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I still prefer UOB and OCBC for their growth attractiveness.
DBS gains market share
DBS Bank has gained market share in key areas such as mortgages, car loans and business loans and intends to continue doing so, its chief executive Piyush Gupta has said.
And it has done this while halving the margin gap with its key rivals, OCBC Bank and United Overseas Bank (UOB), he noted.
In mortgages, after reversing its market share slide in 2008/2009, when it fell to 24 per cent from 42 per cent 10 years ago, it is now 25 per cent, he said.
Speaking to reporters on Wednesday evening on the transformation of DBS over the three years since he joined DBS, he said it would take the bank a " long, long time" to return to a 42 per cent market share.
Next early week will dash to 16....
i think DBS may make one final mad dash to 16.05 then react down strong
for more details see my dbs chart ( click here )
Wow, the last post was more than 4 years ago!... How time flies...
senecus ( Date: 09-Mar-2013 19:27) Posted:
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This one is good
AK had highlighted my opinion on d other DBS's issue for sharing.
As most analysts claimed that, including people on d street feeling, finance n bank sectors would be kena hit badly under current recessoion period, though no bottom line was given.
AK opine that, stay sideline to observe is a better option before u see better bargain on d local banks loh. Your choice liao.
goondoo ( Date: 11-Jan-2009 00:41) Posted:
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Now is financial crisis. Although many people believe banking crisis is over! I personally think that bank stock is rather expensive compare to others. I hope to see DBS below $7. No reason it stay at such high price after right issue!