Post Reply
21-40 of 137
No amount of reasearch or analysis, no matter how profound or meaty,
is going to change the course of the stock's or the market's direction...
February 10, 2012, 7.34 am (Singapore time)  | |
DBS Q4 net profit up 8% beats forecast SINGAPORE - DBS Group Holdings, Southeast Asia's biggest lender, posted an unexpected 8 per cent rise in quarterly earnings as strong loans growth more than made up for subdued interest rates. |
DBS has been capturing market share from rivals, in particular European banks that have stepped back from Asia due to the eurozone debt crisis. In the three months ended December, the Singapore lender chalked up loans growth of 28 per cent.
Analysts, however, say earnings growth this year could prove to be difficult as a slowdown in Asian economies reins in loan growth, while interest rate margins remain hostage to low US rates.
Hopes for higher rates in DBS's key markets - Singapore and Hong Kong - were dented after the Federal Reserve signalled that US rates would probably remain at their current level near zero through late 2014.
'We are committed to pursuing growth in a judicious and disciplined manner while keeping a watchful eye on the health of the global economy ' CEO Piyush Gupta, a former Citigroup executive who took over the top post more than two years ago, said in a statement.
The Singapore bank made a net profit of S$731 million (US$586 million) for October-December period, up from S$678 million a year earlier.
That compared with an average forecast of S$672 million, according to six analysts surveyed by Reuters.
The bank also posted record high annual net profit of S$3.04 billion, up 86 per cent from 2010.
DBS kicked off the earnings season for Singapore banks, with Oversea-Chinese Banking Corp reporting results on Feb 20 and United Overseas Bank on Feb 23.
Mr Gupta has been praised by investors for turning around the bank as he focused on boosting revenue from the existing businesses such as wealth management and avoiding pricey acquisitions.
But growth will remain restricted unless DBS acquires a lender in Indonesia or Malaysia, countries where it has smaller presence compared to its key competitors.
Net interest income rose 17 per cent to S$1.29 billion from a year earlier, despite a 6 basis point drop in margins to 1.73 per cent from a year earlier as loans expanded by 28 per cent.
DBS' net interest margin was flat versus the third quarter.
Net fee and commission income dropped 4 per cent from a year ago to S$342 million, hurt by weak capital markets in the last quarter of 2011.
Bad-debt charges rose 46 per cent to S$229 million from a year ago.
DBS shares have rebounded this year, soaring 18 per cent compared to UOB's 15 per cent rise and OCBC's 13 per cent gain.
Its shares fell about 20 per cent in 2011, underforming the benchmark index. -- REUTERS
February 11, 2011, 7.36 am (Singapore time) | ||||||||||||||||
DBS Q4 net beats forecast promises better returns SINGAPORE - DBS, Southeast Asia's biggest lender, said on Friday it wanted to boost shareholder returns and grow its regional business, after beating expectations with a 38 per cent rise in quarterly profit on falling bad-debt charges and higher trading income. The strong earnings, which came after DBS posted a record net profit in the third quarter, shows CEO Piyush Gupta's success in trying to turn around the bank's performance since taking over in November 2009. He has won investor praise for cleaning up DBS's balance sheet, sold non-core assets such as a small Indian unit and accelerated the bank's expansion into China with the purchase of RBS's portfolio in three major cities.
But lower interest rate margins have restrained growth for DBS, although analysts said that is likely to change in the months ahead as global rates are seen headed upward. 'DBS is in a good position to strengthen the value of our franchise in Singapore in Singapore, Greater China, South and Southeast Asia and fortify our position as a leading Asian bank,' Mr Gupta said in a statement. In presentation notes, DBS said it was focused on enhancing shareholder returns. Return on equity improved to 10.2 per cent in the last financial year that ended in December from 8.4 per cent a year earlier, it said. DBS, which kicked off earnings for Singapore banks, posted a net profit of S$678 million (US$530 million)in October-December against S$493 million a year earlier. That compared with an average forecast of S$660 million, according to six analysts surveyed by Reuters. Bad debt charges declined 59 per cent to S$157 million from a year ago. Net interest income however fell 2 per cent to S$1.1 billion as net interest margins declined by 23 basis points 1.79 per cent in the fourth quarter. Fees and commission income was flat at S$358 million, while trading income tripled to S$164 million. There are rumours that DBS, which wants to increase income from outside its core Singapore and Hong Kong markets, could buy state investor Temasek's 68 per cent stake in Bank Danamon in Indonesia. However, the bank has dismissed the rumours as Mr Gupta wants to avoid expensive buys after DBS got burned for overpaying for a bank purchase in Hong Kong a decade ago. Mr Gupta last year had announced plans to boost revenue from outside the bank's core Singapore and Hong Kong markets. He wants South Asia and Southeast Asia, excluding Singapore, to account for 30 per cent of revenue in five years, with the same coming from Greater China. Singapore's share will drop to 40 per cent from 60 per cent in the same period. DBS shares are up about 3.5 per cent so far this year against rival United Overseas Bank's 3.4 per cent gain. Shares of Oversea-Chinese Banking Corp have fallen about 3 per cent so far this year after gaining about 9 per cent in 2010 when it outperformed its rivals. -- REUTERS
| ||||||||||||||||
