
*NEW ISSUE- DBS Bank Ltd SGD Tier 1 Pref Share - PUBLIC OFFER *
Issuer: DBS Bank Ltd (Aa1/AA-/AA-).
Securities: SGD Reg S Fixed Rate Non-Cumulative
Non-Convertible Non-Voting Preference Shares
Capital Treatment: Tier 1 capital. Ranks junior to Tier 2 capital
and senior to ordinary share capital
Dividend Deferral: Subject to Singapore regulations (with dividend stopper language)
Issue Ratings: A3/A/A (Moody's/S&P/Fitch)
Issue Size: SGD 500mio (option to increase up to 800mio)
Placement: up to SGD 250mio offered to institutional investors
Reserve Offer: up to SGD 50mio to directors,management and employees of DBS Group and its subsidiaries (Placement plus Reserve Offer capped at SGD 250mio)
Settlement: 22 November 2010 (to be confirmed)
Maturity: Perpetual
Issuer Call: At par, on any date on or after 22 November 2020
Regulatory Call: At par at any time after a Change of Qualification Event is continuing. (Please see OIS)
Dividend Rate: 4.70% per annum
Issue Price: 100.3
Liquidation Preference: SGD 250,000
Listing: Singapore
Clearing: CDP/Euroclear/Clearstream
Governing Law: Singapore
Selling Restrictions: As per OIS (The OIS has been lodged with the MAS)
Use of Proceeds: To refinance the DBS preference shares that are
callable in 2011. (Please see OIS)
Sole Lead and Books: DBS Bank Ltd.
DBS to sell up to $800m preference shares in small lots
WRITTEN BY THOMSON REUTERS |
WEDNESDAY, 10 NOVEMBER 2010 13:53 |
DBS Group (DBSM.SI), Singapore’s largest bank, said on Wednesday it will issue up to $800 million worth of preference shares that will qualify as Tier 1 capital to retail investors.
“The purpose of the issue is for the DBS Group to exercise the calls on its outstanding Tier 1 instruments which are callable in 2011,” the bank said in a statement.
The money raised will also strengthen DBS’s capital base to support its growth initiatives, it added.
zhangwuji ( Date: 10-Nov-2010 15:06) Posted:
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In 2010 dividend paid 3 times already, so yr end 2010 no dividend ???.
So holiday in JB ?????????.
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DBS posts record quarterly profit as bad debts fall
THURSDAY, 04 NOVEMBER 2010 08:33 WRITTEN BY THOMSON REUTERS
DBS (DBSM.SI), Southeast Asia’s biggest lender, posted a record quarterly profit on Thursday and joined rivals in beating expectations as falling bad debts and strong trading income helped it overcome low interest rates.
But weak margins on loans at Singapore banks due to low US rates and an expected economic slowdown in the months ahead could slow the pace of earnings recovery this year.
“This year we have been able to leverage the strength of our customer franchise to expand our loan book and increase cross-sell, thus mitigating the effects of headwinds in a low rate market,” CEO Piyush Gupta said in a statement.
“Going forward, we will continue to focus single-mindedly on execution so as to consistently deliver quality earnings.
DBS posted a net profit of $722 million in July-September against $563 million a year earlier, up 28%.
That compared with an average forecast of $645 million, according to seven analysts surveyed by Reuters.
Bad debts declined 26% to $195 million from a year earlier.
DBS’s smaller rivals Oversea-Chinese Banking Corp (OCBC.SI) and United Overseas Bank (UOBH.SI) have both announced better-than-expected quarterly earnings.
Asian banks have benefited from the region’s strong economic recovery which has helped reduce bad debts and boosted loan growth.
DBS said loans grew 15% in the third quarter from a year earlier, faster than UOB’s 8.7% expansion, but slower than OCBC’s 29% growth.
Net interest income, however, dropped 5% to $1.08 billion as net interest margins declined by 23 basis points, compared with an 18-basis-point decline for OCBC and 32 basis points for UOB.
Fee and commission income for DBS fell 6% to $340 million, while trading income more than doubled to $235 million.
The revival of Singapore’s IPO market this year is expected to help DBS earn more investment bank fees as it advised on the share sale of Global Logistic Properties’ (GLPL.SI) US$3 billion ($3.9 billion) and Mapletree Industrial Trust’s (MAPI.SI) US$720 million listing.
Singapore bank shares have underperformed the broader market this year as investors are concerned about weak margins as well as an economic slowdown in the next few quarters after a strong first half.
DBS shares are down 8.4% so far this year, underperforming both its rivals. UOB shares are down about 6% while OCBC, which has been bolstered by its private bank, is the only Singapore bank in the black this year, up 2.2%.
The overall Singapore index <.FTSTI> has climbed about 11% since the start of the year.
DBS profit beats analysts’ estimates on loan growth
THURSDAY, 04 NOVEMBER 2010 08:11 WRITTEN BY BLOOMBERG
DBS Group Holdings, Southeast Asia’s biggest bank, reported third-quarter profit that beat analysts’ estimates as loan growth outweighed narrowing interest margins.
Net income climbed 28% to a record $722 million in the three months ended Sept. 30, from $563 million a year earlier, the Singapore-based company said in a statement today. That beat the $655.3 million average of nine estimates compiled by Bloomberg.
DBS, led by Chief Executive Officer Piyush Gupta, is benefiting from a revival in credit growth as Asia’s economic expansion outpaces the rest of the world. That has spurred profit even as income from lending is crimped by low borrowing costs in Singapore and Hong Kong.
“Stronger loan momentum, and evidence that some fee-related initiatives are beginning to bear fruit” makes DBS a preferred pick, Robert Kong, a Singapore-based analyst at Citigroup Inc., wrote in a report on Oct 22.
Net interest income, or the difference between what the bank makes from lending and pays on deposits, rose 1% from the previous quarter to $1.1 billion. Loans rose 1%, spurred by corporate borrowing across Asia as well as home loans in Singapore. The net interest margin, a measure of loan profitability, declined four basis points to 1.8%.
Total loans in Singapore rose 12.1% from a year earlier to $309.4 billion in September, data from the Monetary Authority of Singapore show.
Non-interest income fell 2% from the previous quarter to $730 million, dragged down by a drop in loan-related fees, DBS said. Investment banking revenue rose, while trading income growth slowed, the statement said.
Published July 31, 2010 ![]() |
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DBS moves on, taking a $1b impairment charge
Writedown for HK unit puts it $300m in the red, but will not affect cash flow or liquidity
By SIOW LI SEN
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up 10cents now. no change to buy cheap today
Update: DBS Q1 net profit up 23%; above consensus
SINGAPORE - DBS, Southeast Asia's biggest bank, said it was seeing good momentum for its business after posting a 23 per cent rise in quarterly profit on higher fees and trading income, and smaller bad-debt charges.
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The result, which was slightly above forecasts, came two days after rival OCBC reported bumper profits and showed how an economic rebound could help turn around earnings this year for Singapore banks.
Investors hope chief executive Piyush Gupta, who took over in November, will get DBS, which makes most of its money from Singapore and Hong Kong, to boost earnings from the rest of Asia.
But analysts do not see a quick fix for the bank which faces regulatory bottlenecks that may prevent it from expanding aggressively in China, India and Malaysia. DBS also needs an acquisition strategy to increase its footprint in Indonesia, analysts say.
Mr Gupta is also making a big push into wealth management which was underscored by his recent hire of Morgan Stanley's influential private banker Tan Su Shan.
'DBS has had good momentum so far, and in the months to come, we will continue to single-mindedly execute against strategy so as to become a leading Asian bank,' Mr Gupta, a former Citibanker, said in a statement.
DBS said on Friday its Jan-March net profit was S$532 million (US$380 million) versus S$433 million a year ago, its best quarterly profit since the third quarter of 2009.
Analysts had predicted a net profit of S$523 million, according to the average of five forecasts in a Reuters survey.
DBS said its net interest income fell 1 per cent to S$1.066 billion as margins dropped, though loans grew 3 per cent, slower than OCBC's 12 per cent growth.
Fee and commission income jumped 8, while bad-debt charges fell 14 per cent to S$355 million. Net trading income jumped 27 per cent, as DBS, the biggest player in Singapore's money market, took advantage of a pickup in volumes for currencies and bonds.
Singapore bank shares have weakened this year after a sharp rally last year when financials globally recovered from a slump in 2008 triggered by the collapse of Lehman Brothers.
DBS shares have fallen about 5 per cent so far this year, against a 5 per cent drop in shares of OCBC and a 1.9 per cent drop for United Overseas Bank. The benchmark Singapore index is down 2 per cent. -- REUTERS