DBS 01 (May 08 - Jul 10)

[LenaHuat]

Since the troika of American Chinese (originally from HK) took over the reins, things had been sour.
Now we know that two of them had boarded Galleon, what more can I say abt.

(My laptop has a viral attack and I'm still trying to recover. Looks like I won't be posting much.
Moreover, I'm preparing to go overseas)

[millionairemind]

Nov 6, 2009
DBS Q3 profit up 49%

DBS Group, South-east Asia's biggest bank, said its third-quarter profit rose a better-than-expected 49 per cent on strong interest rate margins and lower bad debt charges.

DBS said on Friday its July-September net profit was $563 million versus $379 million a year ago, its first expansion since the second quarter of 2008.

Analysts had predicted a net profit of $480 million, according to an average of six forecasts in a Reuters survey.

DBS was expected to post strong results after its rivals United Overseas Bank and Oversea-Chinese Banking Corp announced better-than-expected results last week.

Singapore banks have emerged from the financial crisis in a better shape and earnings are poised to improve next year as a recovery in Asian economic growth boosts loan demand and fees improve from rising capital market deals. -- REUTERS

[winston]

So why did they do a Rights Issue at such a cheap price ?

[kennynah]

now...that's a tough one....

in fact, why do they even have to issue rights? they cash poor meh? cant maintain required liquidiy ratio? or just something to do...past time?

[winston]

Not vested. From Phillips:-

DBS – 3Q09 Results (Brandon Ng)
Recommendation: Hold (Upgrade)
Previous close: S$13.72
Fair value: S$14.55

• Results review DBS reported net earnings of S$563mil (+48.5% yoy, +2.0% qoq, 2Q09: S$552mil) due to record high interest income, stable expenses and lower provision charges.

• NPLs fell 7% over the quarter to S$3.42bil with the NPL ratio lowered to 2.6% from 2.8% in 2Q09 led by repayment in Hong Kong, Rest of Greater China and South and South-east Asia. DBS’ Tier 1 ratio and total CAR were slightly lower at 12.5% and 16.1% respectively due to the increase in risk-weighted assets. The Group declared a dividend of 14 cents per share, unchanged from previous quarter.

• Recommendation We adjust our earnings upwards 20.4% for 2009 as we take into account stronger operating profits with lower provision charges. We also increase the valuation to 1.29x NAV as we input a higher ROE expectation from previously forecast.

This is still a discount to the 5-year average P/NAV of 1.39 times. Nevertheless, we raise our target price to S$14.55 as we roll over the valuation to peg to FY10 NAV and we upgrade DBS to HOLD.

[millionairemind]

This is still a discount to the 5-year average P/NAV of 1.39 times. Nevertheless, we raise our target price to S$14.55 as we roll over the valuation to peg to FY10 NAV and we upgrade DBS to HOLD.

I like the word NEVERTHELESS.... its like saying "WHO GIVES A SH*IT"

[LenaHuat]

It's all in those words : Never the Less implying it's always 'more', giving it more, giving it the benefit of the doubt

[winston]

Not vested.

RBS raised its recommendation on Singapore's largest lender, DBS Group, to buy from hold and its target price to S$18 ($12.97) from S$14 previously.

Source: Reuters

[winston]

DBS GROUP -- DBS owns 50 percent of tiny Islamic Bank of Asia, which focuses on wholesale commercial banking, corporate finance, capital markets and wealth management services in the Middle East and Asia from its offices in Singapore and Bahrain.

DBS also has a branch in Dubai.

DBS, 28 percent owned by state investor Temasek [TEM.UL], derives the bulk of its revenue from Singapore and Hong Kong. But in its earnings statement for the second quarter ended June 2009, it blamed an increase in non-performing loans to "exposures to shipping and Middle East corporates and institutions".

Source: Reuters

[millionairemind]

Dec 1, 2009
DBS' exposure at $1.8b
By Francis Chan & Esther Teo

DBS disclosed on Monday that its exposure to debt-ridden Dubai is about $1.8 billion, while OCBC Bank and United Overseas Bank (UOB) said their dealings in the emirate were not significant.

The regulator, the Monetary Authority of Singapore (MAS), said it was monitoring developments and that Singapore's banking sector exposure to the United Arab Emirates stands well below 1 per cent of total banking assets.

DBS said its position was 'manageable' as it had lent mainly to Dubai firms operating in Asia, such as Labroy Marine and the consortium developing the South Beach site in Beach Road. The loans were also secured against certain assets.

According to DBS, the only loan affected when Dubai World - one of the government's investment vehicles - asked for a debt payment delay was a $558 million bilateral loan.

The loan represents 0.2 per cent of DBS' total balance sheet.

Singapore's largest lender said its total exposure to the entire Middle East region accounts for about 2 per cent of its balance sheet.