DBS 01 (May 08 - Jul 10)

[winston]

I dont think DBS can do much in China anyway.


SOUTH CHINA MORNING POST

Singapore based DBS Group Holdings has wider ambitions than just focusing on China and plans to connect customers from all over the region, DBS consumer banking group executive Rajan Raju said.

[winston]

Not vested. How's the mortage war in HK & Spore ? How are NPLs ?

Singapore's DBS says H1 looks promising for earnings

SINGAPORE, Jan 13 (Reuters) - DBS Group , Southeast Asia's biggest lender, said on Wednesday the first half of this year looks positive for its earnings.

"Overall it looks very promising for the first half," Chairman Koh Boon Hwee told reporters in Singapore, referring to both earnings and the economy.

He said there could be changes in the regulatory environment in the second half of this year, but the bank is reasonably optimistic.

Source: Reuters

[millionairemind]

Down 2% on high volume today. Results due tomorrow.

Somebody knows something you don't??

[Musicwhiz]

Down 2% on high volume today. Results due tomorrow.

Somebody knows something you don't??

Probably just sentiment. I don't normally read too much into price movements the day before results are released. Yes, there may be a lot of speculators who are trying to make a quick buck, but it doesn't say anything about the business itself.

[winston]

Takeaways for me:-
1) 40% jump in bad debt charges
2) big losses from its exposure to a unit of Dubai World
3) jump in non-performing loans was largely due to borrowers outside Asia. ( Wonder how big are their exposure to non-Asian clients ? And exposure to PIGS ?

========================================

DBS says Q4 net profit up 67 pct, beat forecasts

SINGAPORE, Feb 5 (Reuters) - DBS Group , Southeast Asia's biggest bank, said its fourth-quarter net profit rose 67 percent, beating forecasts, with strong fee income and higher loans offsetting an about 40 percent jump in bad-debt charges.

DBS said on Friday its October-December net profit was S$493 million ($348 million) versus S$295 million a year ago, its second straight quarterly increase in profit.

Analysts had predicted a net profit of S$372 million, factoring in big losses from its exposure to a unit of Dubai World [DBWL.UL], according to the average of five forecasts in a Reuters survey.

The DBS statement did not mention Dubai losses, but said the jump in non-performing loans was largely due to borrowers outside Asia.

DBS's bad-debt charges rose to S$384 million in the fourth quarter, from S$269 million a year ago.

The outlook for Singapore banks in 2010 has improved on the back of an economic rebound in Asia, feverish capital-market activity and a likely decline in bad-debt charges.

Singapore bank shares have weakened this year after a sharp rally last year when financials globally recovered from the market meltdown in 2008.

DBS shares have fallen about 7.8 percent so far this year, against a 9.2 percent drop in shares of Oversea-Chinese Banking Corp and a 6.4 percent drop for United Overseas Bank .

[kennynah]

all of ~S$1.2bil profits in a year....

[winston]

Not vested. Can they really grow in China ?

DBS Aims to Grow in China and India, Cut Reliance on Singapore By Joyce Koh

Feb. 6 (Bloomberg) -- DBS Group Holdings Ltd., Southeast Asia’s biggest bank, will focus on growing its operations in China and India without pursuing acquisitions as the lender seeks to reduce dependence on its Singapore home market.

DBS aims for Singapore to account for 40 percent of revenue in five years, from about two-thirds now, Chief Executive Officer Piyush Gupta said yesterday. Greater China and south and Southeast Asia would each account for 30 percent, he said.

Gupta, 50, speaking in his first media briefing since becoming CEO in November, said boosting earnings in Asia outside Singapore will be challenging. DBS yesterday posted quarterly profit that exceeded analysts’ estimates as investment-banking fees and lending income advanced.

“The strategy is largely unchanged over the last 10 years,” said Matthew Wilson, a Singapore-based analyst at Morgan Stanley. “Execution will be critical, and this will be interesting given we have essentially the same senior management team in place.” He rates DBS shares “underweight/in-line.”

Fourth-quarter net income at DBS climbed 67 percent to S$493 million ($347 million), the biggest increase in quarterly profit in three years, beating the S$464 million average estimate of seven analysts surveyed by Bloomberg.

China, India

DBS plans to focus on corporate and affluent customers in China and India, Gupta said. Regulatory restrictions in those two countries make it difficult for the bank to grow through acquisitions, he said.

The Singapore-based lender has doubled Indian revenue since 2007, and grown its customer base in China more than fourfold since incorporating in the nation in 2007. Still, Singapore accounted for more than 60 percent of total income in 2009, DBS said yesterday.

( How much does doubling of Indian Revenue and 4x Chinese customer base translates to in dollars ? )

“We really want to build an Asian franchise with an Asian footprint,” said Gupta. “We have enough to do in our backyard and that is where we hope to focus.”

Gupta also said he aims to expand the lender’s consumer banking operations in Taiwan and Indonesia.

In Hong Kong, where the bank bought Dao Heng Bank Group for $5.4 billion in 2001, DBS plans to invest in rebuilding its brand there to improve profitability, according to Gupta.

The bank has a market share in Hong Kong, its second- largest market after Singapore, of about between three and five percent, and operates more than 50 branches in the territory.

“Thinking through and developing a far better refined segmented strategy for our Hong Kong businesses will be a priority,” said Gupta.


http://www.bloomberg.com/apps/news?pid= ... NH1ILWDBG4

[winston]

Not vested. From Kim Eng:-


Maintain Buy on improving outlook

We have trimmed our earnings estimates for FY10 and FY11 by 3% and 7% respectively to account for higher operating costs. Our TP is reduced slightly to $17.40 (pegged to its recovery PBV cycle of 1.5x FY10 PBV).

With its NPLs peaking, newfound leadership and favourable operating outlook, we believe a re-rating is imminent. Maintain BUY.

[millionairemind]

The SUPER LAGGARD of the big 3 banks finally breaks out of a 7 week consolidation...

Buying UOB or OCBC is a better trade... useless bank!

[kennynah]

phew.... sigh of relieve...i thought my 3 billion in DBS was in danger of her collapsing...