Written by Bloomberg
Monday, 30 August 2010 12:50
SembCorp Industries plans to sell $200 million of notes under its $1.5 billion medium-term note program, according to a Singapore stock exchange statement.
$100 million of 4.25% bonds will mature in 2025 while a further $100 million of notes which will pay interest of 0.55% more than the six-month Singapore dollar swap offer rate will mature in 2017, the statement said.
Proceeds will be used to repay debt and for general working capital purposes and DBS Group Holdings is managing the sale, the statement said.
Showing posts with label DBS. Show all posts
Showing posts with label DBS. Show all posts
Monday, August 30, 2010
Singapore’s DBS consumer head resigns: Update
Written by Thomson Reuters
Monday, 30 August 2010 15:06
DBS’s (DBSM.SI) head of consumer banking, Rajan Raju, has resigned after spending 11 years with Southeast Asia’s biggest lender, sources familiar with the move told Reuters on Monday.
Raju, who joined Singapore’s DBS from Citibank (C.N), will end his current role on Aug 31, His official last day is on Sept 30, according to a staff memo made available to Reuters. His successor will be announced shortly, the memo said. DBS confirmed Raju’s departure.
Monday, 30 August 2010 15:06
DBS’s (DBSM.SI) head of consumer banking, Rajan Raju, has resigned after spending 11 years with Southeast Asia’s biggest lender, sources familiar with the move told Reuters on Monday.
Raju, who joined Singapore’s DBS from Citibank (C.N), will end his current role on Aug 31, His official last day is on Sept 30, according to a staff memo made available to Reuters. His successor will be announced shortly, the memo said. DBS confirmed Raju’s departure.
Thursday, August 19, 2010
CapitaMall Trust said to sell $300m of 4, 7-year notes
Written by Bloomberg
Thursday, 19 August 2010 16:42
CapitaMall Trust sold $300 million of four-year and seven-year bonds, according to a person familiar with the matter.
The $150 million of four-year bonds were priced to yield 2.85% while the $150 million of seven-year bonds were priced to yield 3.55%, the person said, asking not to be identified as details are private.
DBS Group Holdings managed the sale, the person said.
Thursday, 19 August 2010 16:42
CapitaMall Trust sold $300 million of four-year and seven-year bonds, according to a person familiar with the matter.
The $150 million of four-year bonds were priced to yield 2.85% while the $150 million of seven-year bonds were priced to yield 3.55%, the person said, asking not to be identified as details are private.
DBS Group Holdings managed the sale, the person said.
2H10 challenging for Singapore banks: DBS Vickers
Written by The Edge
Thursday, 19 August 2010 12:08
The second-half of the financial year will be a challenging one for Singapore banks with net interest margin still under pressure, loan growth moderating, says DBS Vickers, according to Dow Jones.
With provisions almost at all-time lows, non-interest income will be key factor determining earnings performance. Expects fee income to remain robust in 2H10 given strong capital markets.
Thursday, 19 August 2010 12:08
The second-half of the financial year will be a challenging one for Singapore banks with net interest margin still under pressure, loan growth moderating, says DBS Vickers, according to Dow Jones.
With provisions almost at all-time lows, non-interest income will be key factor determining earnings performance. Expects fee income to remain robust in 2H10 given strong capital markets.
Wednesday, August 18, 2010
DBS Group cut to $11.50 by RBS; Keeps Sell
Written by The Edge
Wednesday, 18 August 2010 09:30
RBS lowers DBS Group (D05.SG) target price to $11.50 from $12.00, keeps Sell rating on expected continued pressure on its net interest income, says Dow Jones.
RBS notes bank has “embarked on an admirable restructuring of its operations” in Singapore, HK, Southeast Asia, with management changes at HK operations. But low Sibor, increasing costs likely to weigh on earnings growth.
Cuts 2011, 2012 earnings forecasts by 5.6%, 1.3% respectively, based on 20bp and 5bp cuts in Sibor assumptions over both years. Adds gross loan growth also expected to moderate to “more sustainable” rates.
Share price up 0.1% at $14.12.
Wednesday, 18 August 2010 09:30
RBS lowers DBS Group (D05.SG) target price to $11.50 from $12.00, keeps Sell rating on expected continued pressure on its net interest income, says Dow Jones.
RBS notes bank has “embarked on an admirable restructuring of its operations” in Singapore, HK, Southeast Asia, with management changes at HK operations. But low Sibor, increasing costs likely to weigh on earnings growth.
Cuts 2011, 2012 earnings forecasts by 5.6%, 1.3% respectively, based on 20bp and 5bp cuts in Sibor assumptions over both years. Adds gross loan growth also expected to moderate to “more sustainable” rates.
Share price up 0.1% at $14.12.
Monday, August 16, 2010
DBS Hong Kong CEO Yip to leave, succeeded by Paredes: Update
Written by Bloomberg
Monday, 16 August 2010 16:11
DBS Group Holdings, Southeast Asia’s biggest bank, said Sebastian Paredes will succeed Amy Yip as chief executive officer of its Hong Kong unit, as it seeks to boost profit from its second-largest market after Singapore.
Yip will retire at the end of the year and Paredes’s appointment is effective Sept. 13, subject to regulatory approvals, DBS said in statement today to the Singapore stock exchange. Paredes was president director of P.T. Bank Danamon from 2005 until early this year, and spent 20 years at Citigroup Inc. before that, DBS said.
Monday, 16 August 2010 16:11
DBS Group Holdings, Southeast Asia’s biggest bank, said Sebastian Paredes will succeed Amy Yip as chief executive officer of its Hong Kong unit, as it seeks to boost profit from its second-largest market after Singapore.
Yip will retire at the end of the year and Paredes’s appointment is effective Sept. 13, subject to regulatory approvals, DBS said in statement today to the Singapore stock exchange. Paredes was president director of P.T. Bank Danamon from 2005 until early this year, and spent 20 years at Citigroup Inc. before that, DBS said.
Saturday, August 14, 2010
Takeaways from ASEAN Investor Conference, Aug. 11-12 - Citi
Takeaways from Singapore - DBS presented at Citi's ASEAN Investor Conference on
Aug. 11-12. Below are key takeaways.
Outlook on loan growth – After a strong 1H10 (loans +12.6%), mgmt guided loan
growth is likely to moderate, possibly in the range of low-mid single digits each
quarter, with FY10 loan growth possibly in the high teens. Healthy demand seen for
long-term fixed rate loans (both mortgages and corporate), and presents
opportunities for DBS to make better use of its excess S$, while growing its S$-
loans market share. This strategy is meant to be deployed through the interest rate
cycle, and not only at selected points in the cycle.
Improving quality of trading income. For 2Q10, c.60% (1Q10: 50%) of trading
income was customer-driven, driven by stronger demand for FX and rates hedging
products.
NIM drivers – Of the 9bps fall in NIM, 6bps attributed to shift in investment
securities portfolio. Remaining 3bps due to loan and deposits pressure. Loan yield
pressure due to re-pricing of housing loans (c.1ppt difference) while corporate
yields are fairly stable.
Rolling out various initiatives. Mgmt highlighted a number of initiatives which the
bank has been working on, including 1) Regional cash management, 2) Regional
SME platform, and 3) Wealth management. Initiatives will likely take a few quarters
before earnings kick in. Similarly, expenses likely to rise progressively, which could
see cost-income ratio (1H10:40%) creeping upwards.
Update on regional businesses. Hong Kong: As an anchor into greater China, DBS
Hong Kong remains an important part of the group. High LDR (Jun 2010: 104%)
due to tight liquidity as more Chinese banks use Hong Kong as a funding base.
Beside retail deposits, DBS could also finance additional loan growth using
interbank, or by swapping S$ into US$. .China. Now present in 8 cites, the bank
plans to add more sub-branches to deepen DBS’s presence and grow the SME &
wealth mgmt businesses. India: DBS has been successful at growing the loan book
at good margins. India now contributes c.6-8% of revenue and earning. RBI is
expected to provide more details on foreign banks’ subsidiarization later this year,
which could facilitate the opening of more branches in India. Indonesia. The bank
now operates about 40 branches across 11 cities in Indonesia. Overall contribution
to group’s bottom-line still small.
Aug. 11-12. Below are key takeaways.
Outlook on loan growth – After a strong 1H10 (loans +12.6%), mgmt guided loan
growth is likely to moderate, possibly in the range of low-mid single digits each
quarter, with FY10 loan growth possibly in the high teens. Healthy demand seen for
long-term fixed rate loans (both mortgages and corporate), and presents
opportunities for DBS to make better use of its excess S$, while growing its S$-
loans market share. This strategy is meant to be deployed through the interest rate
cycle, and not only at selected points in the cycle.
Improving quality of trading income. For 2Q10, c.60% (1Q10: 50%) of trading
income was customer-driven, driven by stronger demand for FX and rates hedging
products.
NIM drivers – Of the 9bps fall in NIM, 6bps attributed to shift in investment
securities portfolio. Remaining 3bps due to loan and deposits pressure. Loan yield
pressure due to re-pricing of housing loans (c.1ppt difference) while corporate
yields are fairly stable.
Rolling out various initiatives. Mgmt highlighted a number of initiatives which the
bank has been working on, including 1) Regional cash management, 2) Regional
SME platform, and 3) Wealth management. Initiatives will likely take a few quarters
before earnings kick in. Similarly, expenses likely to rise progressively, which could
see cost-income ratio (1H10:40%) creeping upwards.
Update on regional businesses. Hong Kong: As an anchor into greater China, DBS
Hong Kong remains an important part of the group. High LDR (Jun 2010: 104%)
due to tight liquidity as more Chinese banks use Hong Kong as a funding base.
Beside retail deposits, DBS could also finance additional loan growth using
interbank, or by swapping S$ into US$. .China. Now present in 8 cites, the bank
plans to add more sub-branches to deepen DBS’s presence and grow the SME &
wealth mgmt businesses. India: DBS has been successful at growing the loan book
at good margins. India now contributes c.6-8% of revenue and earning. RBI is
expected to provide more details on foreign banks’ subsidiarization later this year,
which could facilitate the opening of more branches in India. Indonesia. The bank
now operates about 40 branches across 11 cities in Indonesia. Overall contribution
to group’s bottom-line still small.
Banks - CIMB
• DBS the best, UOB and OCBC within expectations. The banks’ 2Q came in
within expectations with common features being 1) accelerating loan growth; 2)
lower provisions; 3) widening capital buffers; but 4) stronger-than-expected margin
pressure. DBS stood out from the pack because it had an extremely strong trading
gains. OCBC missed our PPOP numbers as its costs spiked up unexpectedly.
• Revenue challenges await. Our impression from 2Q is that revenue challenges are
brewing. The lending business sees tentative credit demand as disintermediation is
a rising trend again. Tighter lending spreads and lower yields from investment
securities are weighing down on margins. Revenue growth opportunities lies in fees
but those opportunities could be somewhat blunted if capital markets remain edgy.
• Sector rated Overweight; top pick OCBC, least preferred DBS. The sector is
rated Overweight though as valuations have pulled back to almost -1sd from mean
P/BV and looks attractive relative to other cyclicals. Also, having gone through
Banking Crisis Round 1 two years ago and operating away from western markets
that still need to cope with de-leveraging, we believe that the Singapore banks will
hold up. Our top pick is OCBC (Outperform, TP S$10.08) as we expect it to be best
positioned to derive revenue growth. DBS (Underperform, TP $14.03) saw its 1H10
revenue growth supported by trading gains - that is inherently volatile - but, ROE still
lags behind peers even with the trading boost and goodwill write-off. It is our least
preferred. UOB (Outperform, TP $21.37) might be a near-term revenue growth
laggard, but the avoidance of low-margin loans could accelerate the regionalisation
strategy while the de-risking of its balance sheet is a positive.
within expectations with common features being 1) accelerating loan growth; 2)
lower provisions; 3) widening capital buffers; but 4) stronger-than-expected margin
pressure. DBS stood out from the pack because it had an extremely strong trading
gains. OCBC missed our PPOP numbers as its costs spiked up unexpectedly.
• Revenue challenges await. Our impression from 2Q is that revenue challenges are
brewing. The lending business sees tentative credit demand as disintermediation is
a rising trend again. Tighter lending spreads and lower yields from investment
securities are weighing down on margins. Revenue growth opportunities lies in fees
but those opportunities could be somewhat blunted if capital markets remain edgy.
• Sector rated Overweight; top pick OCBC, least preferred DBS. The sector is
rated Overweight though as valuations have pulled back to almost -1sd from mean
P/BV and looks attractive relative to other cyclicals. Also, having gone through
Banking Crisis Round 1 two years ago and operating away from western markets
that still need to cope with de-leveraging, we believe that the Singapore banks will
hold up. Our top pick is OCBC (Outperform, TP S$10.08) as we expect it to be best
positioned to derive revenue growth. DBS (Underperform, TP $14.03) saw its 1H10
revenue growth supported by trading gains - that is inherently volatile - but, ROE still
lags behind peers even with the trading boost and goodwill write-off. It is our least
preferred. UOB (Outperform, TP $21.37) might be a near-term revenue growth
laggard, but the avoidance of low-margin loans could accelerate the regionalisation
strategy while the de-risking of its balance sheet is a positive.
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