DBS 01 (May 08 - Jul 10)

[iam802]

just found out yesterday that my mother-in-law also have some of those structured products from DBS.

Good thing, for now, none of it are tie to Lehman.

But, what I am 'angry' about is that she thought the structured product is a FD (and we have been asking whether she has invested in anything)

She belongs to the group that can't read and had bought into the products thinking it is a 'better
' FD.

I have to admit, those 'Terms n Conditions', brochures are not clear about the risks (at least from an untrained eyes like mine).

The key message is, double check and confirm with your parents (those who are not as savvy) about possible exposure to all these toxic stuffs.

[iam802]

3Q results

http://info.sgx.com/webcorannc.nsf/ef3b ... enDocument

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[millionairemind]

This is going to weigh heavily on the STI today.

From BT
November 7, 2008, 7.46 am (Singapore time)

DBS Q3 net profit falls 38%, below forecast

SINGAPORE - DBS Group, Southeast Asia's biggest bank, posted a 38 per cent drop in quarterly profit, below market expectations, as losses from bad debts mounted amid global financial market turmoil.


The bank said on Friday it earned $379 million (US$253 million) in July-September, compared with $610 million a year ago.

Analysts had predicted a net profit of $475 million, according to the average of five forecasts compiled by Reuters.

DBS's result came after its smaller rivals reported below forecast earnings, hurt by writedowns on bad debts including complex products such as collateralised debt obligations.

Singapore's second-ranked lender, United Overseas Bank, posted a 5 per cent drop and Oversea-Chinese Banking Corp announced a 13 per cent slide in third-quarter profit.

DBS, which is 28-percent owned by Singapore state investor Temasek Holdings, has benefited from strong loan growth, but an end to the republic's property boom and slowing Asian economies are likely to crimp lending and lead to an increase in non-performing loans.

DBS shares dropped 11 per cent in the third quarter, less than the 12.2 per cent drop in OCBC, but more than the 9.8 per cent drop in UOB shares. -- REUTERS

[iam802]

TOL.

Did DBS adopt new accounting standard? (maybe not, since it takes time to do it...or is it that simple to just shift it off the books??)

IIRC, OCBC did state that they have not adopt the new proposed accounting standard for the 3Q results.

[millionairemind]

RPT-Singapore's DBS says to cut 6 pct of workforce
Thu Nov 6, 2008 11:47pm EST

SINGAPORE, Nov 7 (Reuters) - DBS Group (DBSM.SI: Quote, Profile, Research, Stock Buzz), Southeast Asia's biggest bank, will cut 900 staff from Singapore and Hong Kong or six percent of its workforce by the end of this month to reduce costs, its CEO Richard Stanley said on Friday.

DBS earlier on Friday posted a 38 percent drop in quarterly profit, below expectations, as losses from bad debts quadrupled and it warned the financial crisis has made business challenging

[iam802]

I think it is stated that they reclassify $2.3B worth of assets following the new Accounting Standards.

First of the 3 local banks to do it.

[financecaptain]

"Great" job ! As a defacto national bank, they are the first FI to the cut staff setting" good" example for others to follow. And when they are still profitable (unless they are already seeing Q4 red) and not allowing their retrenched staff to even smell Christmas or Chinese New Year.
Why they are performing so badly compared with the other 2 local banks when they too enjoyed one of the biggest banking margins (between deposit and lending rates) in the world ?
Because being a commercial bank they are involved in so much structured products and derivatives; and costs to revenue ratio is one of highest in the industry.
Of course new CEO does not help - "Over-staffing or over-optimistic planning is the sin of the old management, I have no responsibility".
Wonder if cutting staff will improve bank's effectiveness overall.

[millionairemind]

If he does not cut, he might go the way of Jackson Tai - who wants to all of sudden, to spend time with his family??? haha..

[kennynah]

cut jobs sure will have a positive impact on bottom line...

[fclim]

i got relative just joined DBS recently.... *smack on forehead*

dunno will get chop or not...
eventually may impact moi... *pray hard*

have fun,
fc