DBS    Last:42.43    +0.13

DBS Results Out

DBS islifting off the ground and soon, will be on its way to the moon

 

looks very strongly supported today.

any brave souls shorting this? care to share any views.

I was personally thinking of shorting it and to cover ard mth end. Not shorted yet. :)

 

That is right. We are now witnessing a lively puppet show with Mr Gupta as the character in ther center stage. The Board of Directors like Mrs Lee & company are the decision makers. In spite of the recent mistakes in the GIC, I still have good faith in Mrs Lee.

If you have spare change, DBS will be your best bet. Looking forward to the coming harvest in September and hopefully, by then, it will reach $20.60 as forecasted by UOBKayhian.

 

No fear,  the bank is not run buy one guy only....he is just a front. The bank was captainless for a while did it collaspe? Aneh need to be very very powderful to do something to this monster. The monopoly is guarantee that money is printed for the share holders. Whether Aneh or Angmeh!.Lock in at 13.x and throw away the key, forget it and come back at retirement.

 

.......DBS's responsibility to the citizen's money holds more significancy than GIC and Temasek......and it has to be a saving bank...regardless how Piyush Gupta wants to say it.......most singaporeans have a POSB account and they trust that their money will be safe...and if one day Piyush Gupta have things his way...DBS becomes over aggressive...ends up like citibank...Piyush Gupta at most leave singapore for india...leaving singapore's political party to answer to the public...singapore's political party will not want to answer to the public...therefore DBS will not because of one man and destroy their decades of hard built foundation.....

 

 

Tmr will see $14..bye bye. Welcome $13.xx...

 

Being the chief executive officer of a big corporation like DBS, one has no choice except to trim cost when time is bad. Kind heartedness will see the corporation go belly up and by then more people will go around holding the tin cup. 

If one cannot stand the heat, get out of the kitchen. I still fully support the action taken by the previous CEO of DBS to trim 900 staff. He was doing his job and he could cry over it when alone at home.

 

Is this morally correct ? Slash workers, produce good returns to push share price, big bonuses to top executives ...

a good corporation is one that manage its growth efficiently - govt only realise recently when it says to "quality growth" and not growth at all costs.., create a vibrant and happy culture in the organisation, profitable, top are not greedy, employees' gratitudes in turn will pass on to society and less fortunate...the list go on etc........

 

incirent      ( Date: 20-Apr-2009 08:02) Posted: I fully agree with an article in the Business Times that DBS needs to have a tough new CEO.  The previous CEO did the right thing by slashing 900 DBS staff members corresponding to the downturn in the banking business. However, his action was not taken kindly by the politicians in power. This might be one of the causes for his illness to deteriorate so rapidly. Look, the bottom line of running a successful business is to produce a good Balance Sheet. If the Balance Sheet is not "greasy" enough to reward the shareholders, the stock price will go down and the CEO will be blamed. MBA 401, MBO, Management By Objective, in this case it is finance and not politics, stupid.

 

Published February 6, 2010

DBS to put huge deposit base to work - hard

New chief Piyush Gupta outlines multi-pronged strategy for bank

By SIOW LI SEN

UNVEILING his vision for DBS to become a leading pan-Asian bank, new chief executive Piyush Gupta said yesterday it has to tackle its huge deposit base, rebuild management strength in Hong Kong and grow rapidly in India and Indonesia.

 

DBS will also 're-orientate' its focus on the Middle East, he added.

Calling DBS a 'very strong deposit surplus bank', Mr Gupta said 'we're more hurt than other banks' when interest rates are low. On its 'unbalanced balance sheet', he said DBS 'needs to build up our customer assets ... needs to be more than just a savings bank'.

DBS's government link is a strong magnet for deposits and the 2008-09 financial crisis has made savers park even more money with the bank.

Speaking at DBS's full-year 2009 results announcement, Mr Gupta said it should offer a wider suite of products, including appropriate investment products, and sell more mortgages and unsecured loans.

Its loan-to-deposit ratio fell to 71 per cent in 2009 from 74 in 2008, and it 'needs to do more to improve that ratio'.

But Mr Gupta declined to say what would be an optimum ratio for DBS.

Loans growth in 2009 was 3 per cent and 2 per cent for Q4 quarter-on-quarter. Net interest margin fell to 2.02 in Q4, from 2.03 in Q3 and 2.04 a year earlier.

While full-year and Q4 earnings rose 6 per cent to $2.04 billion and 67 per cent to $493 million respectively, Mr Gupta is under pressure to deliver better results amid the low interest rate and sluggish loans growth environment.

Unimpressed analysts said a tax write-back contributed to the Q4 earnings boost, as bad debt charges surged 43 per cent from a year earlier, according to a Reuters report.

Mr Gupta wants to improve the relationship with DBS Group's POSB or mass-market customers. He noted the long queues at branches and its ATMs, which have the highest ATM usage anywhere in the world.

DBS will launch a programme to look at processes, documentation and policies to make them more customer-centric, Mr Gupta said.

As for becoming a leading pan-Asian bank, DBS has the financial strength and expertise to do so, Mr Gupta pointed out. It is near the top of 23-25 double AA rated banks worldwide, and benefited during the financial crisis amid a flight to quality, he pointed out. 'When I go round the region, DBS is really well known,' he explained. Not just in Indonesia but also in Hong Kong and Taiwan, 'we're seen as a progressive bank'.

DBS should aim for a revenue mix of 40:30:30 Singapore, Greater China, South and South-east Asia in five years, Mr Gupta said. It now gets 62 per cent and 27 per cent of revenue from Singapore and Greater China. 'We are also making progress in our growth markets,' Mr Gupta noted. 'In Taiwan, we have delivered a profit a year ahead of schedule. We have strengthened our franchise in Indonesia, growing to 40 branches in 11 cities.

'So our aspiration is to continue to focus on this playing field. What that means therefore (is) we're also unlikely to be looking at expanding our businesses in domestic franchises in Europe, in North America (and) frankly even the Middle East. We have enough to do in our backyard and that's where we hope to focus, that's where we hope to build our future certainly for the next five or 10 years.'

DBS will rebuild its management strength in Hong Kong, after people there were pulled to help out in Taiwan and mainland China, he said. Asked about DBS Hong Kong's slipping market share, Mr Gupta said it can be improved, though a 3-5 per cent market share is not bad.

On the group's Islamic Bank of Asia (IBA) unit, there is no change to the strategy, which is to mediate flows from the Middle East to Asia. 'What we might do is re-orientate our focus - in the sense of building a domestic presence in the Middle East - we'll take a pass on that,' Mr Gupta said.

 

Published February 6, 2010

DBS Q4 profit jumps 67% Results beat analyst estimates on continued growth in customer loans By CONRAD TAN   DBS Group's net profit rose 67 per cent to $493 million in the fourth quarter from a year earlier, beating analysts' estimates, as customer loans continued to grow. Total income grew 7 per cent to $1.57 billion.   MR GUPTA DBS is seeking to build a 'more balanced' mix of assets and liabilities, so that its earnings are less vulnerable to movements in interest rates But allowances for losses on loans, investment securities and other assets rose 22 per cent to $384 million, due partly to the group's exposure to Dubai World through a US$400 million loan that could suffer from a restructuring of the state-backed firm. Dubai World has not missed any interest payments on the loan, but DBS has classified it as non-performing as a precautionary step and made provisions for potential losses on it, DBS chief executive Piyush Gupta said. He did not reveal how much the bank has set aside for losses on its Dubai World exposure. Phillip Securities analyst Brandon Ng said of DBS's Q4 performance: 'It's quite a good set of results. Operating results were better than expected.' For the full year, net profit rose 6 per cent to $2.04 billion as total income grew 9 per cent to $6.6 billion. Related articles: Click here for DBS's news release Performance summary Slide presentations The bank has declared a dividend of 14 cents per share for Q4, unchanged from Q3. Compared with the preceding quarter, Q4 net profit of $493 million was 12 per cent lower, due mainly to the sharp increase in allowances for credit and other losses. Five analysts polled by Reuters had forecast an average of Q4 net profit of $372 million for DBS - including losses from its Dubai World exposure - while the average forecast of seven analysts surveyed by Bloomberg was $464 million. Overall, DBS's its non-performing loans grew to $3.88 billion at the end of December, up 13 per cent from the end of September and nearly double the $1.96 billion in NPLs a year earlier. The proportion of NPLs in its loans book rose to 2.9 per cent, from 2.6 per cent at end-September and just 1.5 per cent at the end of 2008. Mr Gupta, who was taking questions on the bank's results for the first time since he joined DBS in November, said he expected the NPL ratio to improve if the economic recovery continues. 'As best as I can say right now, I think that our NPL ratio has peaked,' he said. Over the quarter, customer loans - less allowances for bad loans - expanded 1.8 per cent to $130.6 billion, driven by a surge in housing loans in Singapore and Hong Kong. Its housing loan portfolio grew 7 per cent during the quarter, and 13 per cent over the year, to $33.1 billion. Overall, loans by DBS's consumer banking unit grew by a record 13 per cent, or $4.6 billion, over the year to $39.4 billion, driven by the rapid growth in home loans. Compared to a year earlier, the group's net customer loans grew 3.2 per cent, compensating for narrower net interest margins, which measure how profitable its lending activities are after deducting funding costs. As a result, DBS's net interest income from its lending activities grew one per cent from a year earlier to $1.13 billion, just below the record $1.14 billion reported in the third quarter. Mr Gupta said that as part of a review of DBS's strategy, the group would seek to build a 'more balanced' mix of assets and liabilities, so that its earnings are less vulnerable to movements in interest rates. Currently, the group's large base of savings deposits that pay little interest means that its profits are badly squeezed whenever interest rates are low because it has difficulty reducing its cost of funding even as the rates it can charge on loans fall. Its non-interest income from stockbroking, investment banking, wealth management, trading and other activities rose to $445 million, up 24 per cent from a year earlier and 1.8 per cent higher than in Q3. DBS's share price ended 1.1 per cent lower at $14.04 yesterday, outperforming the Straits Times Index, which slumped 2.2 per cent amid a broad slide in equity markets across Asia. DBS's annualised earnings per share for Q4 - or what the group would earn for a whole year if its earnings continued at the same pace - was 85 cents, down from 98 cents for Q3 but higher than the 80 cents a year earlier.

 

Business Times - 06 Nov 2009


Update: DBS leads Q3 surge in S'pore bank profits

SINGAPORE - DBS Group, Southeast Asia's biggest bank, led a surge in quarterly profits among Singapore's three listed banks, all of which beat forecasts and are better positioned than global peers for post-crisis growth.

DBS, whose new CEO and former Citibanker Piyush Gupta will join the bank this month, said net interest income was at a quarterly record and fee income at its highest since the onset of the global financial crisis.

Related links: Click here for DBS's news release Presentation Financial statements

Earnings at Singapore's banks are poised to improve further next year with bad debts peaking, a recovery in Asian economies boosting loan demand and rising fees from a buoyant capital market.

'You will continue to see the same momentum going forward,' said Thilan Wickramasinghe, a bank analyst at CLSA. 'If you are talking about recovery and demand returning in the region, they are geared towards some of the high-growth geographies.'

JPMorgan analyst Harsh Wardhan Modi, who maintained its 'overweight' on DBS, said Singapore bank stocks should outperform the broader market going into 2010.

'The key drivers for these stocks would be across-the-board estimate revisions,' he said.

Analysts had predicted strong results from DBS after rivals United Overseas Bank and Oversea-Chinese Banking Corp beat forecasts last week.

DBS said on Friday its July-September net profit rose to S$563 million (US$404 million) from S$379 million year ago, and beat analysts' forecasts for S$480 million, according to an average of six forecasts in a Reuters survey.

Its shares opened 3.2 per cent higher, outperforming a 1.5 per cent rise in the benchmark Singapore index.

'I believe DBS is well positioned to take advantage of the nascent economic recovery - we will emerge fitter and stronger,' said DBS Chairman Koh Boon Hwee in a statement.

Pulled out of ING race
DBS has been focusing on a strategy to grow its existing business in Indonesia, India and China to lower its reliance on Singapore, which accounted for more than half of January-September net profit.

It has shied away from expensive acquisitions, recently pulling out of a race to buy ING's Asia private banking business, which was bought instead by OCBC.

Investors want to know if DBS will adopt new strategies to expand aggressively in the region, though the bank did not make any references to acquisitions when announcing its results.

Mr Koh, who has been running the bank since January, told Reuters in September that DBS plans to double its branch network in Indonesia over the next three years as it seeks expansion in Southeast Asia's biggest economy.

DBS, 28 per cent-owned by Singapore investor Temasek, saw loan growth of 1 per cent in the third quarter from a year ago.

Quarterly net interest income rose 6 per cent to S$1.1 billion as net interest margins rose to 2.03 per cent from 1.99 per cent, and fee and commission income climbed by 14 per cent.

Bad debt charges fell 17 per cent to S$265 million.

Shares of DBS are up about 58 per cent this year, outperforming the benchmark index's 52 per cent gain and beating UOB, though on a par with OCBC. -- REUTERS

 

DBS is the symbol of singapore bank.

 

Dear Pastime

From your writing, it appears that you are a very kind hearted person. CEO of a corporation might not be to your taste and the CEO of a charity might be more appropriate. Even then, you will be answerable to the bottomline and ie how much money you managed to solicit for the charity. If the number falls short of the established target, your CEO chair will start to rock.

 

hi incirent, i beg to differ.

 if everone think ahead and cut 5-10% of headcount. then what is perceived as recession becomes real. and if it is real become worse.

in the end the sheer force of those being out and down will pull you down as well.

do more good to others and the good will come back to you. +ve cycle.

smart alek cut cost retrench today pay big big retrenchment benefits then 6 months later found not enough people doing work. hire back. is it really smart?

for long term investor unless being short to extreme like c really there is no effect. the write down is far more, much more then the salary save.

but by doing a show, it make everyone take a short term stand. so is that good.

 the winning formula is to do long term business and let the magic of compound return do the trick. the drankan way of quick return with huge yearly bonus has shown its down side effect. should be do away.

better to reward very very small yearly (make it a law) and pay over 20 years or for as long as business stay.

ave return of investment is 6% (Graham) and believe it still stay true today.

incirent      ( Date: 20-Apr-2009 08:02) Posted: I fully agree with an article in the Business Times that DBS needs to have a tough new CEO.  The previous CEO did the right thing by slashing 900 DBS staff members corresponding to the downturn in the banking business. However, his action was not taken kindly by the politicians in power. This might be one of the causes for his illness to deteriorate so rapidly. Look, the bottom line of running a successful business is to produce a good Balance Sheet. If the Balance Sheet is not "greasy" enough to reward the shareholders, the stock price will go down and the CEO will be blamed. MBA 401, MBO, Management By Objective, in this case it is finance and not politics, stupid.

 

I fully agree with an article in the Business Times that DBS needs to have a tough new CEO. 

The previous CEO did the right thing by slashing 900 DBS staff members corresponding to the downturn in the banking business. However, his action was not taken kindly by the politicians in power. This might be one of the causes for his illness to deteriorate so rapidly.

Look, the bottom line of running a successful business is to produce a good Balance Sheet. If the Balance Sheet is not "greasy" enough to reward the shareholders, the stock price will go down and the CEO will be blamed. MBA 401, MBO, Management By Objective, in this case it is finance and not politics, stupid.


 

 

Good luck...

 

Stock moving at good pace.

 

I agree. Good Post.

idesa168      ( Date: 13-Apr-2009 08:18) Posted: A pity. He is so young, at 48! My condolences to his family. Can all of us see, when you pass on, the company will get on as usual and probably replace you within weeks. However, your family will cry for you for the rest of their living years. So shouldn't we spend more time with family!

 

Judging from the media info, As AML is the only cancer without staging, he probably has the illness as early as one year ago and he did not make it to the transplant stage.  After the chemo put the cancer into remission, you need to do a transplant to make sure the remission stay put.

Why is ah koh so early to announce the good news that he is recovering......did not even bother to sit down with the panel of doctors to talk about it ??

Anyway, a company cannot go without a CEO for very long......the second liner with be spending a many time eyeing on what is the color of the new leather sit.....

 

idesa168      ( Date: 13-Apr-2009 08:18) Posted: A pity. He is so young, at 48! My condolences to his family. Can all of us see, when you pass on, the company will get on as usual and probably replace you within weeks. However, your family will cry for you for the rest of their living years. So shouldn't we spend more time with family!

 

A pity. He is so young, at 48! My condolences to his family.

Can all of us see, when you pass on, the company will get on as usual and probably replace you within weeks. However, your family will cry for you for the rest of their living years. So shouldn't we spend more time with family!