DBS Last:43.71 -

DBS

MACD crossing under. Will relook when it nears $14.00

Look like MAS may be ask banks to hike the leading interest rate . Is that good news to banks ?

why?

Hulumas ( Date: 15-Feb-2011 12:02) Posted:

I have cleared all my Bank counters last week!

DBS - Technical Analysis

DBS stock failed to confirm Monday's slight break above resistance at 14.96 on Tuesday. It pulled back for a retest of the rising 50-day moving average near 14.62 yesterday. The very short-term technical picture is neutral. A decisive close above 14.96/14.98 is needed for the bulls to regain control. Clearing the recent peak at 15.24 decisively would signal resumption of the uptrend targeting 15.40 initially. Next potential mid-term upside target is seen at 15.74/15.80. Next zone of support is located at 14.50/14.60. A close below would be bearish and could pave the way for a wave down towards 13.84-13.94. Further support is seen at 14.37 and 14.24.

/dbwarrants/fyi

I have cleared all my Bank counters last week!

DBS is leading the free fall. It is on track to achieving $13.50.

Analysts' prediction are wrong as usual. You will do a lot better betting against them.

DBS announces record full-year core profit

DBS's chief executive Piyush Gupta says expansion plans are on course as the Singapore lender reports strong profit growth.

By Rupert Walker | 14 February 2011
Keywords: dbs | piyush gupta | singapore

DBS Group Holdings, Southeast Asia's largest bank, reported record full-year results on Friday last week, driven by strong loan growth across the region, higher income from cross-selling of treasury products and an improvement in asset quality.

Chief executive Piyush Gupta announced a core net profit of S$2.65 billion ($2.07 billion) for 2010, a 28% increase compared with the previous year. But, the figure excluded a one-time goodwill impairment charge S$1.02 billion for DBS Bank (Hong Kong).

“The record performance reflects the early success of strategic initiatives implemented during the year,” said Gupta in a statement.

Return-on-equity rose to 10.2% from 8.4% and the return-on-assets improved to 0.98% from 0.80%.

Higher borrowing by large companies and small and medium-size enterprises, led to double-digit loan growth in Hong Kong, China, Taiwan, India and Indonesia. Total loans rose 16% from a year earlier to S$152.1 billion, which partially offset the impact of weaker margins caused by low interest rates and narrower credit spreads. Net interest income fell 3% to S$4.32 billion.

Meanwhile, non-interest income rose 28% to S$2.75 billion. Trading income doubled to S$895 million, mostly due to higher revenues from cross-selling of treasury products, and fee income from wealth management, stockbroking and investment banking improved in line with more favourable market conditions. However, these improvements in fee income were offset by lower margins in trade and remittances as well as lower loan-related fees.

The full-year results were given a boost by a strong performance in the fourth quarter – which was above analysts’ estimates. Net profit jumped 38% compared to the fourth quarter 2009 to S$678 million, driven by higher non-interest income and lower allowances. Trading income tripled to S$164 million, with customer revenues accounting for a large part of that figure. There were also gains from the sale of financial investments and fixed assets.

Asset quality also improved throughout the year. Bad debt charges dropped 40% as the non-performing loan rate fell to 1.9% from 2.9%. As of the end of 2010, Singapore-based DBS had a total capital adequacy ratio of 18.4%, a tier-1 capital ratio of 15.1% and core tier-1 ratio of 11.8%, buoyed by the issuance of S$2.5 billion of tier-1 preference shares in the fourth quarter.

Although total income grew by 7%, expenses rose by 12% due to spending on recruitment and infrastructure, as well as higher brand marketing costs to meet Gupta’s ambitious plans to build a regional bank and adjust the geographical proportions of its revenue base.

The cost-to-income ratio, which was 41% in 2010, should “trend towards” 45% in 2011, said Gupta.

In his February 2010 “roadmap”, Gupta pledged to reduce DBS’s reliance on its domestic market to just 40% of revenues, and earn 30% from South and Southeast Asia (excluding Singapore) and 30% from Greater China.

Gupta, who took up his position in November 2009 after a long career at Citi, aims to focus the bank’s activities on wealth management and the SME sector, and to develop DBS’s franchise in China and India.

So far, there has been little change in the balance. Singapore still dominates with a 63% share of total revenues, while Greater China accounts for 27%, and the rest of South and Southeast Asia for just 6% (down from 8% in 2009).

“While much of what we want to achieve remains work-in-progress, we believe that by continuing to single-mindedly execute [in line with] the strategy we laid out 12 months ago, DBS is in a good position to strengthen the value of our franchise in Singapore, Greater China, South and Southeast Asia and fortify our position as a leading Asian bank,” said Gupta.

DBS intends to hire a further 1,500 people this year, and Gupta has concrete plans for regional markets. In December, the bank agreed to take over Royal Bank of Scotland Group’s retail and commercial banking businesses in three major cities in China.

This year he wants to convert the bank’s Taiwanese branch business into a separate legal entity in order to hasten its growth, and might do the same in India. In any case, he has a three-year objective to have 50 branches each in China, India and Indonesia.

Gupta said last year that he wanted to increase the bank’s managed assets to $50 billion from $35 billion within three years, which would be sourced from regional emerging markets.

DBS announced a full-year dividend payout of 56 Singapore cents a share, unchanged from 2009. The bank’s share price fell 0.135% to S$14.80 on Friday, compared with a 0.8% decline in the benchmark Straits Times Index.

© Haymarket Media Limited. All rights reserved.

//source from: financeasia.com//

Analysts are the biggest liers then ?

Why they like the lying job?

1) They are licensed to lie

2) Get paid to lie

hahaha!!!

ktnpl2005 ( Date: 12-Feb-2011 09:25) Posted:

Analysts' TP is always bloated out of proportion and never achievable in the near future. I maintain my TP for DBS at $13.50.

DBS extended its pullback sharply the past two sessions. It violated the mid-term uptrend line and the 20-day moving average yesterday. The stock hit a session low at 14.76 but held horizontal support at 14.82 on a closing basis. A spinning top candle in the daily chart is indicating very short-term indecision at current levels. Unless a closing back above next resistance at 14.93/14.96 occurs, price remains vulnerable to a further near-term setback. A break below yesterday's low would point to immediate resumption of the correction. Next solid support is the rising 50-day moving average currently at 15.56. Mid-term crucial zone of support is seen at 14.24-14.42. A decisive close above resistance at 14.96 would likely be followed by a retest of the recent peak at 15.24. Clearing 15.24 decisively would signal resumption of the short-term uptrend targeting 15.40 initially. Next potential mid-term upside target is seen at 15.74/15.80. A drop below 14.24 would negate this objective

Shayne Heffernan has issued a Strong Buy on DBS Group Holdings in Singapore with a 2011 price target of $20.

DBS Group Holdings Ltd is an investment holding company that operates through its main subsidiary, DBS Bank Ltd (the Bank).

The Bank is engaged in the provision of retail, small and medium-sized enterprise, corporate, and investment banking services. The Company’s financial businesses are organized into five sectors: Consumer Banking, Institutional Banking, Global Financial Markets, Central Treasury Unit, and Central Operations

DBS, which kicked off earnings for Singapore banks, posted a net profit of S$678 million ($530 million)in October-December against S$493 million a year earlier.

Bad debt charges declined 59 percent to S$157 million from a year ago. Net interest income however fell 2 percent to S$1.1 billion as net interest margins declined by 23 basis points 1.79 percent in the fourth quarter.

Fees and commission income was flat at S$358 million, while trading income tripled to S$164 million.

There has been market talk that DBS, which wants to increase income from outside its core Singapore and Hong Kong markets, could buy state investor Temasek’s 68 percent stake in Indonesia’s Bank Danamon .

Valuation Ratios

	Company	Industry	Sector	S& P 500
P/E Ratio (TTM)	25.69	11.99	22.33	18.18
P/E High – Last 5 Yrs.	31.20	28.73	142.84	84.45
P/E Low – Last 5 Yrs.	8.02	9.91	108.15	12.36

Beta	1.14	1.26	1.20	1.30

Price to Sales (TTM)	4.89	2.64	5.99	2.24
Price to Book (MRQ)	1.30	0.95	1.16	2.74
Price to Tangible Book (MRQ)	1.58	1.23	1.40	4.35
Price to Cash Flow (TTM)	18.89	2.40	7.24	7.99
Price to Free Cash Flow (TTM)	3.07	0.47	4.46	35.25

% Owned Institutions	–	–	–	–

Dividends

	Company	Industry	Sector	S& P 500
Dividend Yield	3.78	1.78	1.80	1.56
Dividend Yield – 5 Year Avg.	3.64	1.82	1.62	2.27
Dividend 5 Year Growth Rate	10.19	8.16	7.81	-5.62

Payout Ratio(TTM)	67.47	10.98	18.18	34.34

Growth Rates

	Company	Industry	Sector	S& P 500
Sales (MRQ) vs Qtr. 1 Yr. Ago	-1.49	5.77	12.48	10.77
Sales (TTM) vs TTM 1 Yr. Ago	-15.20	6.58	16.61	11.55
Sales – 5 Yr. Growth Rate	8.62	14.96	18.37	7.90

EPS (MRQ) vs Qtr. 1 Yr. Ago	20.93	53.29	43.96	65.14
EPS (TTM) vs TTM 1 Yr. Ago	-30.12	–	–	–
EPS – 5 Yr. Growth Rate	-4.64	4.69	9.31	5.04

Capital Spending – 5 Yr. Growth Rate	12.35	10.72	10.50	4.37

On Friday, DBS re-tests the support at $14.50 and closed at $14.80 with HIGH volume of 9.87 million shares traded.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

RSI & MACD are bearish as MACD perform a “cross down” recently.

Immediate Resistance of DBS: $14.90

Immediate Support of DBS: $14.72

Currently prices are resisted by 20 days MA at $14.90

The good earning results from DBS on Monday have boosted............READ MORE

Analysts' TP is always bloated out of proportion and never achievable in the near future. I maintain my TP for DBS at $13.50.

DBS : Don't Buy Supporters stock !!!!

DBS Group profit climbs 38% as trading income triples: Update

WRITTEN BY BLOOMBERG

FRIDAY, 11 FEBRUARY 2011 15:59

DBS Group Holdings, Southeast Asia’s biggest bank, reported a 38% increase in fourth- quarter profit as trading income tripled and allowances for credit losses shrank.

Net income climbed to $678 million ($530 million) from $493 million a year earlier, the Singapore-based bank said in a statement to the stock exchange today. That beat the $669 million average of eight estimates compiled by Bloomberg. The stock fell in Singapore after outperforming the city’s benchmark this year.

Chief Executive Officer Piyush Gupta, who joined DBS in November 2009 after a 27-year tenure at Citigroup Inc., aims to expand operations in China and India and build businesses that cater to wealthy individuals as Asia’s economic expansion outpaces the rest of the world. That’s helping bolster earnings even as low borrowing costs in Singapore and Hong Kong crimp income from lending.

“More evidence of new initiatives bearing fruit will start to show up in the first or second quarter,” Kenneth Ng, a Singapore-based analyst at CIMB Research Pte, wrote in a Feb. 7 report. “DBS provides both low-risk exposure to interest rates creeping up at some point this year, and an equally attractive proxy for the wealth-management business building up in Singapore.”

The bank’s return on equity strengthened to 10.2% last year from 8.4% in 2009, DBS said. Net income rose 28% to a record $2.7 billion in 2010, excluding a one-time goodwill impairment charge at DBS’s Hong Kong unit.

STOCK SLIDES
DBS fell 0.8% to S14.70 at 3:35 p.m. on the Singapore stock exchange, compared with a 0.6% decline in the benchmark Straits Times Index. DBS had gained 3.5% this year before today while the Straits Times slipped 2.7%. CIMB, which has an “outperform” rating on DBS, expects the stock to rise to S$17, Ng said in the report.

Trading income tripled to $164 million in the quarter, with customer revenue accounting for a “substantial portion,” the bank said. Net interest income, or the difference between what DBS makes from lending and pays on deposits, fell 2% from the previous quarter to $1.11 billion.

Allowances for credit and other losses shrank 59% from a year earlier to $157 million.

LOAN MARGINS
Total loans in Singapore grew to S$322.8 billion in December from $318.5 billion a month earlier, as lending to businesses as well as building and construction increased, according to data from the Monetary Authority of Singapore.

Gupta said today at a press conference that he expects mortgage volumes to decline after Singapore introduced measures to curb gains in property prices.

“We think there will be some slowdown but we think we have the opportunity to grow in the upper segment,” he said. “The top end is driven by cash and liquidity.”

Total loans grew 16% from the previous year to $152 billion, DBS said. Growth will likely slow to the “low double digits” this year, Gupta said.

DBS’s net interest margin, a measure of loan profitability, narrowed to 1.79% from 2.02% a year earlier. Singapore’s three-month interbank lending rate, or Sibor, averaged 0.56% last year. The equivalent rate in Hong Kong, Hibor, averaged 0.25%.

“Overall, it’s pretty good,” said Christopher Wong, who helps oversee $70 billion of assets at Aberdeen Asset Management Plc in Singapore. “The net interest margin seems to have stabilized, there’s loan growth and the asset quality seems to be quite good.”

Aberdeen will consider increasing its holdings in DBS “at the right price,” Wong said.

‘INVESTMENT MODE’
DBS’s net fee and commission income rose 5% from the previous quarter to $358 million, led by its investment banking business, the bank said. DBS was the top arranger of share sales in Singapore last year, helping underwrite 18% of the US$8.3 billion ($10.6 billion) raised by companies, according to data compiled by Bloomberg.

Costs rose 12% to $2.9 billion last year as the bank increased staff and expanded its business, it said. The cost-to-income ratio, which stood at 41% in 2010, should “trend toward” 45% through this year, Gupta said.

“We see ourselves, in this couple of years at least, in investment mode,” he said. “We are adding headcount and technology.”

TAIWAN BUSINESS
DBS plans to convert its branch business in Taiwan this year into a subsidiary, or a separate legal entity, allowing it to grow its business more quickly, Gupta said. The bank is also “quite hopeful” of doing the same in India, where it has 12 branches, should discussions with the regulator go well, he said.

The lender plans to hire 1,500 people through this year as it seeks to boost revenue from wealth management operations and units serving small- and mid-sized companies, Gupta said in November. He also plans to have 50 branches each in China, India and Indonesia within three years.

In private banking, which serves clients with at least S$1.5 million in disposable wealth, DBS aims for “double- digit”%age growth in new assets annually from emerging markets over the next few years, the bank said last year. DBS plans to increase its managed assets to US$50 billion from US$35 billion in three years, it said.

In Hong Kong, where the bank bought Dao Heng Bank Group for US$5.4 billion in 2001, profit fell 24% from the previous quarter to $144 million as non-interest income declined and expenses rose, DBS said.

DBS said in December it will take over Royal Bank of Scotland Group Plc’s retail and commercial banking businesses in China. RBS will transfer close to 25,000 clients in Shanghai, Beijing and Shenzhen to DBS China, it said then. DBS didn’t spend any money on the deal, said Melvin Teo, chief executive officer of DBS China.

////theedge////

DBS seeks more branches in China, eyes Indian incorporation

SINGAPORE, Feb 11 - DBS , Southeast Asia's biggest bank, said the bank would want to have 50 branches in China over the next three years and could do the same in India if it could set up a locally incorporated banking unit.� � � � � � �

" We want to try and get to 50 branches in China in the next three years," CEO Piyush Gupta told a news conference. � � � " If the subsidisation thing works out, we probably want to do the same in India in the next three years." � � � The bank has 16 outlets, including 8 branches, in China, where it has a locally incorporated unit. It has 12 branches in India.

DBS also has plans to convert its Taiwan operation into a subsidiary to rapidly expand in the country. � � � Local incorporation is a requirement before China and India allow foreign banks more complete access to retail banking and locally incorporated foreign banks often win fast regulatory approval to set up branches or launch new products.

DBS- Technical Analysis

DBS extended its pullback sharply the past two sessions. It violated the mid-term uptrend line and the 20-day moving average yesterday. The stock hit a session low at 14.76 but held horizontal support at 14.82 on a closing basis. A spinning top candle in the daily chart is indicating very short-term indecision at current levels. Unless a closing back above next resistance at 14.93/14.96 occurs, price remains vulnerable to a further near-term setback. A break below yesterday's low would point to immediate resumption of the correction. Next solid support is the rising 50-day moving average currently at 15.56. Mid-term crucial zone of support is seen at 14.24-14.42. A decisive close above resistance at 14.96 would likely be followed by a retest of the recent peak at 15.24. Clearing 15.24 decisively would signal resumption of the short-term uptrend targeting 15.40 initially. Next potential mid-term upside target is seen at 15.74/15.80. A drop below 14.24 would negate this objective.

/dbwarrants////fyi only/

SINGAPORE, Feb 11 (Reuters) - DBS , Singapore's biggest lender, said on Friday it had not held any talks with state investor Temasek on buying its 68 percent stake in Indonesia's Bank Danamon .

CEO Piyush Gupta told reporters DBS had not held talks with anyone on Bank Danamon. There has been market talk that DBS, which wants to increase income from outside its core Singapore and Hong Kong markets, could be looking at Bank Danamon, but Gupta has dismissed the idea.

Analysts say Gupta probably wants to avoid expensive buys after DBS got its fingers burnt by overpaying for a bank purchase in Hong Kong a decade ago.

(Reporting by Saeed Azhar) ((Saeed.Azhar@thomsonreuters.com)(+65-64035664)(Reuters Messaging: saeed.azhar.reuters.com@reuters.net))

DBS Group is unlikely to get a lift as its 4Q net profit comes in on par with expectations. 4Q net profit rose 38% yoy but fell 6% qoq to $678m due to higher non-interest income (+40%) , lower allowances but its loans business (-2%) continued to struggle in the face of persistent mortgage margin pressure.

Net interest margin fell to 1.79% from 2.02% a year earlier & 1.80% in the 3Q. Nothing exceptional in the results.

Going forward, net interest income segment is expected to remainweak as trading is expected to be very volatile. The stock currently trades at P/B of 1.32x vs its historical mean of 1.45x.

Yes. 0.28c. Together with earlier interim, this makes if more than 3% from today's price. Still better than putting your money into your own DBS bank account.....

Please, please, drop more so I can afford to buy more.

leoleo ( Date: 11-Feb-2011 09:58) Posted:

any dividend ?