liveindices.com

[jkhoo88]

CitiGrp results reporting due Fri. @ NYSE.
The CEO already announced in the 1st week Mar.'09 that their Jan.& Feb.'09 performances were good,& leading into Mar.'09 should fair well.

Last week ,WellsFargo also reported good 1stQ'09.

These american banks has free fundings from their govt. during their crisis, so they are free of financiation costs ;thus making good profits!!

This'll lead our Sgp banks to rally too.Cheers.

[dinosor]

dow going downhill despite jpmorgan profit

[jkhoo88]

Are we awaiting the double bottom that may not come?
Swine-flu jitters lasted 2 days but more than recovered within the last 2 days.

Sub-prime fever emerged in USA 2007 ,but blown into a full flu 2008 pandemic worldwide into 2009.

This May'09 opening into week 78 of the current recession.
Since the great depression,every recession lasted an average 80 weeks.

Cheers

[jkhoo88]

World's safest banks ranked @ CNBC:-

DBS #27;
OCBC & UOB are Jointly #37 .

[inphyy]

DBS sets up US$10 bln debt issuance programme

June 24, 2010, 5.45 pm (Singapore time)
By ANGELA TAN

DBS Bank Ltd said on Thursday that it has established a US$10 billion Debt Issuance Programme, under which the bank may issue senior debt securities.

The net proceeds from the issue of notes under the programme will be used for the general business purposes of DBS and its consolidated subsidiaries.

DBS is the arranger of the programme.

[inphyy]

Margin pressure, strong trading gains

Above expectations; but maintain Underperform and S$13.97 target price
(based on 1.23x P/BV). 2Q10 net profit (excluding goodwill charge) of S$718m was
above our expectations and consensus, led by another strong trading quarter. 1H10
profit of S$1,250m made up 51% of our full-year forecast. Overshadowing the
results was a chunky S$1,018m goodwill charge for DBS Hong Kong. This was due
to persistent strains on wholesale funding markets, increasing the likelihood of
sustained interest-margin compression in Hong Kong. As a result, management has
reassessed carrying values for DBS Hong Kong, knocking them down to 2.2x P/BV.
We will be reviewing our estimates after the briefing. We continue to see de-rating
catalysts from margin pressure.

Net interest income. Loan growth was impressive at +9% qoq. Margins, however,
declined 9bp qoq. Half of this was due to a shift in the securities portfolio to higherquality
issues with lower yields, pointing to caution towards global macros. The
other half was due to higher deposit costs, primarily more funding competition in
US$ and HK$. Customer loan yields were stable.

•Non-interest income. Fee income was in line with expectations. Most fee streams
were stable qoq. Trading boasted another stellar quarter. Other income was
S$390m vs. 1Q’s S$306m. Management guided that almost the entire qoq increase
stemmed from customer flows, not trading positions.

• Costs and allowances. Costs went up 2%, within expectations. Cost ratio was
good at 39.5%, as trading supported revenue. NPL ratio fell to 2.3% and similarly,
allowances declined 43% qoq. SPs fell steeply as Middle-East provisions were over
while GPs were pushed up, mirroring loan growth.

• We deem this a decent set of results. Operationally, most items were in line.
Strong volume was offset by margin compression though part of the compression
appears to reflect a more defensive posture towards investment securities. Trading
once again provided upside to our numbers. DPS of 14cts was unchanged. We do
not see the Hong Kong goodwill charge as consequential since it does not affect
Tier-1 capital. Goodwill has already been deducted from Tier-1, as the 6-month-old
CEO took the chance to clean up the balance sheet.

CIMB-GK Securities

[inphyy]

Losses due to DBSHK goodwill impairment

Recorded 2Q10 net loss due to DBS HK goodwill impairment. DBS reported
2Q10 net loss of S$300m. Adjusting for the one-time goodwill impairment charge
of S$1.02b for DBS HK, core net profit of S$718m was up 30% YoY. This is
higher than our S$585m expectations, largely due to continued robust
performance from the volatile trading income segment. We will be reviewing our
earnings forecast and recommendation. We believe DBS share price could see
some downside following this results release.

NIM narrowed 9 bps QoQ and 18 bps HoH. Loans expanded 9% QoQ from
broad-based regional corporate loan demand and from housing loan drawdowns
in Singapore and HK. But DBS experienced a 9 bps QoQ NIM squeeze to
1.84%. Although more than half of the NIM decline was due to a shift in
securities portfolio towards lower-yield higher quality issues, we note that DBS’
2Q10 NIM of 1.84% is sharply narrower than OCBC’s 1Q10 2.03% and UOB’s
1Q10 2.25%. We believe investors’ interest in DBS could be dampened by this
narrower NIM.

Strong trading income. Trading income grew 21% QoQ to S$278m, driven by
customer revenues which surged 45% and accounted for more than half of total
trading income. However, this is a volatile segment and the 2Q10 strength may
not be repeated in subsequent quarters.

Goodwill impairment led to losses. DBS took a one-time goodwill impairment
charge of S$1.02b for DBS HK. Management expects the recent DBS HK NIM
compression to persist. After the charge, the carrying value of DBS HK falls to
S$8.4b, equivalent to 2.2x its book as of 30 Jun 10.

DBS share price weakened after goodwill impairment in 4Q05. Prior to this,
DBS last made goodwill impairment of S$1.13b for DBS HK in 4Q05. After DBS
announced its 4Q05 results on 17 Feb 06, its share price weakened, falling
~1.2% on the next trading day on 20 Feb 06.

DMG&PARTNERS SECURITIES

[inphyy]

If Not For Impairment Loss

�� We expect at worse a knee-jerk reaction to the
“shock” announcement of a $300 mln net loss for
Q2, taking into account DBS’ recent stock price
underperformance relative to its peers. (At $14.50,
DBS is 6.9% off 52 - week high, vs -4.9% for UOB
and -1.2% for OCBC.)

�� Unfortunately, with the downgrading of bank stocks
across the globe in the aftermath of the financial
crisis, the purchase of DBS HK (former Dao Heng
Bank) almost 10 years ago has come back to haunt:
after the $1.1 bln write-off in early 2006 for financial
year 2005, the Bank is providing a $1.18 bln writeoff,
to bring the book value of DBS HK to S$8.4
bln, albeit still a high 2.2x book.

�� At least, being an accounting / balance sheet
matter, the impairment loss gives ROE a good
boost to 11.1% from 9.1% a year ago, and only 8.2%
a quarter ago.

�� If not for the impairment loss, net profit would
have shown a solid 30% improvement to $718
mln in Q2, comfortably above analysts consensus
expectations (<$600 mln) as reported by
Bloomberg.

�� Of more significance are the following:
- 9.1% q-o-q increase in net loans & advances,
led by 20.2% increase in loans to Financial
Institutions. (Housing loans, accounting for the
biggest 25% of total gross loans, rose 6.1%; and
Building & Construction 7.6%)
- Loan-deposit ratio at almost 80%, vs 71.5%
a year ago.
- 38% drop in inter-bank assets to $21.85 bln.
- Provisions have normalized, to $204 mln (a big
part of which was compensation for HK
investors in Constellation notes), vs a recent
peak of $466 mln a year ago (Financial Crisis),
and $355 mln a quarter ago (likely for Middle
East).

�� Having lagged the sector, and at 1.3x RNAV of
$11.14 per share, DBS continues to justify a BUY.

LIM & TAN SECURITIES

[inphyy]

DBS caught too in Bank of Singapore's poaching spree

Its loss includes Larry Leong, head of a team serving Indonesian clients

By CONRAD TAN
Published August 7, 2010

BANK of Singapore, OCBC's private bank, has hired three senior bankers from DBS Group, among some 40 private bankers it has attracted from rivals in recent months, BT has learned.

The most senior of the latest hires is Larry Leong, previously head of a team of eight Singapore-based relationship managers (RMs) at DBS serving clients from Indonesia. He joined Bank of Singapore yesterday, where he will continue serving Indonesian clients, together with two of his former colleagues at DBS who have also joined the bank, a source told BT.

Mr Leong has over 30 years' experience in financial services, and spent the past 18 years as a private banker at DBS, the source said.

The two others from his former team at DBS, Johann Chia and Stanley Chew, start at Bank of Singapore next week. Both will report to Mr Leong, who in turn will report to Bank of Singapore's Indonesia market head Robin Heng. All three new hires will be based here.

Mr Chia has nearly a decade of experience as a private banker at DBS, while Mr Chew has about six years' experience as a private banker - first at HSBC, then at DBS.

DBS itself recently hired Tan Su Shan, previously head of private wealth management for South-east Asia at Morgan Stanley, to head its own private bank. Ms Tan, a former colleague of DBS chief executive Piyush Gupta when both were at Citigroup, started at DBS on July 1.

Bank of Singapore, which became a wholly owned unit of OCBC on Jan 29, has hired some 40 Singapore-based private bankers this year from its rivals. It now has slightly over 200 RMs, the source said.

The new hires have come from various banks including DBS, Citi, HSBC, Hong Leong Bank, Bank of America's Merrill Lynch, and UBS. In February, Bank of Singapore chief executive Renato de Guzman said he planned to add as many as 100 RMs to the bank over the next three years.

Senior bankers it has hired since then include Mr Heng, its current Indonesia market head, and Derrick Tan, its Malaysia market head, who both joined the bank in March from UBS; and Aseem Arora, head of strategic initiatives and new markets for India, who joined the bank in May from Merrill Lynch.

On July 26, the bank announced two other additions to its private-banking team. Jeffrey Tan, who joined the bank as Singapore market head, was formerly a Merrill Lynch banker, responsible for its wealth management business in Asia-Pacific.

The second, Moon Seong-Jin, joined as head of Bank of Singapore's Korea desk. He previously worked at Standard Chartered in Singapore, Citi in Korea and Korea Development Bank, Bank of Singapore said at the time.

Bank of Singapore has lost some of its private bankers, too. In April, The Business Times reported that about 10 of OCBC's original team of 50-odd RMs had threatened to quit because they were unhappy about their positions within the new private bank, which was formed after OCBC bought ING Asia Private Bank for US$1.44 billion and merged it with its own private banking business.

'About five' of those bankers eventually left, OCBC chief executive David Conner told OCBC shareholders at the group's annual general meeting on April 16.

At OCBC's Q2 results briefing on Monday this week, Mr Conner, who is also Bank of Singapore chairman, said the private bank has hired 'roughly 3.5 people for every two' it has lost so far.