DBS 01 (May 08 - Jul 10)

[millionairemind]

January 21, 2009, 9.19 pm (Singapore time)

DBS's $4 bln rights issue oversubscribed

SINGAPORE - Singapore's DBS Group, Southeast Asia's biggest bank, said on Wednesday its S$4 billion (US$2.7 billion) rights issue to boost its capital had been oversubscribed.

The rights issue came as banks across Asia look to shore up their balance sheets in readiness for a tougher business environment amid the global economic downturn.

DBS said in a statement it had received more applications and acceptances than the total number of rights shares offered.

The capital raising is expected to strengthen DBS's core tier-1 capital adequacy ratio to 9.9 per cent from 7.8 per cent.

Singapore state investor Temasek Holdings had a 27.6 per cent stake in DBS, making it the biggest shareholder in the bank before the offering. DBS did not say much Temasek had taken up.

The bank offered investors one new share for every two existing shares at S$5.42 a piece in December, which was then a discount of about 45 per cent. DBS shares were 57 per cent above the rights issue price at the close of trading on Wednesday.

Another Temasek-controlled bank PT Bank Danamon Tbk, Indonesia's fifth-largest lender, has hired investment banks to help raise several hundred million dollars in a rights offering, two people familiar with the matter said on Wednesday.

'The primary investor concern about DBS at the moment is asset-quality deterioration,' Trevor Kalcic, an analyst at RBS said in a recent note.

'Clearly 2009 will herald a turn in the provisioning cycle. Bad debt charges peaked at 60 basis points following the 2001 recession and we forecast a peak of 70 bps for 2009.'

DBS said last month its fourth-quarter earnings could show a moderate decline from the third quarter, when it reported a 38 per cent fall in quarterly net profit to S$379 million and said it would cut 900 jobs, or 6 per cent of its staff.

This is the second time in less than a year the bank has raised cash. It raised S$1.5 billion last May through a sale of preference shares paying investors 5.75 per cent per annum. -- REUTERS

[millionairemind]

First to offer you an umbrella when sun is out, first to take it away when it starts raining.. no???

Published January 23, 2009

DBS vows to stand by loyal customers - even in bad times
By SIOW LI SEN

DBS Group Holdings will stand by its customers and expects to grow its loan book this year, chairman Koh Boon Hwee said yesterday.

He also said that the bank has received many loan applications from small businesses and is processing them as fast as it can.

Speaking on the sidelines of a client event, Mr Koh said DBS - which raised $4 billion through a recent rights issue - will use the proceeds to 'stand by our customers in this difficult period'.

'Customers who have a long-term relationship with DBS, where we are their primary banker, and who have not been dealing with DBS in a transaction mode, who are open and transparent in sharing their business challenges with us, therefore allowing us to work things out together with you, at DBS we pledge to stand by you, our loyal customers in good times and in times like these,' he said.

'But if you come to us only in times of need, or you are already in trouble, please understand that there are much greater constraints on what we can do.'

Elaborating on the pledge to help customers, Mr Koh said DBS bankers have been told to look at each company individually and not draw blanket conclusions.

'Blanket conclusions mean industry X is in trouble so we will start reducing lines to companies in industry X,' he said.

'That is rather what I call a blunt kind of instrument. What we really want our people to do, our relationship managers and our credit managers, is to work individually with each of our customers, evaluate the conditions they are in.'

Companies should be transparent about the problems they face, he said. 'What we want to know is that this downturn is affecting their business temporarily. We understand that. So no pre-emptive strikes, no blanket broad brush that 'this is a bad industry to be in'. Everything has to be done very specifically.'

On extending credit to smaller companies, Mr Koh says DBS has added resources to handle applications from small and medium enterprises (SMEs). DBS takes the government's risk sharing plan on credit to SMEs seriously, he said.

Companies have said that banks have tightened lending despite the government stepping in to share the risks.

But Mr Koh said: 'Government plans for risk sharing, we take that very seriously. We have got a lot of applications. We are increasing our resources so that they are processed as expeditiously as possible.

'We fully expect to increase our loan portfolio. Obviously we have to be cautious because companies are under stress, and we also have to ensure the pricing reflects the credit risks that are the new reality in the world. This applies to everyone. We do fully expect to have loans growth this year.'

A DBS spokeswoman said later that applications for government loan schemes have risen three times since last month.

'Loans approved have increased, and we have also doubled the number of staff, seconded from other departments, to evaluate these applications and handle loan requests,' she said.

Mr Koh also said that while the economy is in for a tough time, Asia's banking industry overall is in a much better position than that in the US and Europe.

'I find all banks in Singapore quite well-capitalised,' he said. 'We certainly are very well-capitalised now, and while it will not be what I call a great year for banks, I do not see it being an extraordinarily bad year.'

[winston]

Shares suspended. Wonder what is the announcement ?

Minibonds related ? Or something worst ?

[iam802]

if you think it is going to be bad news...better start preparing to trade the downtrend for 'all other counters' as well

[iam802]

Not good. CEO needs treatment. Hope things goes well for him.


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DBS CEO RICHARD STANLEY DIAGNOSED WITH LEUKEMIA; BEGINS TREATMENT IMMEDIATELY

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

--

[millionairemind]

Not good. CEO needs treatment. Hope things goes well for him.


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DBS CEO RICHARD STANLEY DIAGNOSED WITH LEUKEMIA; BEGINS TREATMENT IMMEDIATELY

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

--

Hope he recovers well. Must be the stress that comes with the job.

All the prestige and money in the world will not help your family when you children misses you because you are gone pre-maturely.

Don't wait till a life threatening event like this to make life altering decisions. Nobody is indispensable in the corporate world. The only position that you are indispensable is when you are a parent.

In the end, your family must always be first and foremost.

Hope his treatment will work out well and he recovers fast.

[LenaHuat]

Yes, stress weakens the immunity system and can trigger diseases that were previously benign.
Let's hope that KohBoonHwee's health holds.

[helios]

On headlines today ... coverpage.

[helios]

DBS Asset Management and SGX to launch the DBS Singapore STI ETF on February 25.

Initial offer period for the ETF is from February 12 to 18.

(San's comment to Sidney: this is as what you have said )

[helios]

DBS Group Holdings' chairman Koh Boon Hwee talks to KENNETH JAMES about his multiple roles as private investor, corporate leader and educationist

GOOGLE the subject of this Raffles Conversation and one is rewarded with this unexpected gem:"I Love Koh Boon Hwee' T-Shirts complete with bright red heart, for sale at Amazon.com.

Told about it, Koh Boon Hwee bursts out laughing. 'You've got to be kidding me!' he says. 'Anyway, who on earth would buy one?'
Well, let's see. As one of corporate Singapore's most prominent figures, Mr Koh no doubt has his detractors, but there are probably a whole lot more admirers of his corporate story.

After all, his track record is impressive. Our wide-ranging conversation takes place in a meeting room across from his office at the top of DBS Building Tower One; he is chairman of DBS Group Holdings and DBS Bank, the country's largest bank. Prior to this appointment, from July 2001 to December 2005, he was chairman of Singapore Airlines, where he successfully shepherded the iconic international carrier through one of the most turbulent periods in aviation history.

From 1986 to 2001 he was chairman of the Singapore Telecom Group (SingTel), overseeing its transformation from statutory board to regional communications powerhouse. All this while, for 10 years from 1991, he headed the Wuthelam Group as its executive chairman.

Read more ...

Source: http://sgmanagement.blogspot.com/2008/1 ... iness.html

19-feb, attending a MOU signing ceremony between HP Alumni ...