DBS Group Holdings (DBS)

Virtual banks not a threat to Singapore banks – for now, says CGS-CIMB

SINGAPORE (June 20): The Monetary Authority of Singapore (MAS) is studying the potential for opening the doors to “digital-only banks with non-bank parentage”.

But CGS-CIMB Research dismisses fears that such virtual banks on could put a dent in the market share of incumbents DBS Group Holdings (DBS), Oversea-Chinese Banking Corp (OCBC) and United Overseas Bank (UOB) – at least for now.

“We think that virtual banks are not likely to threaten the primary lending businesses of DBS, OCBC and UOB in the near term,” says lead analyst Andrea Choong in a report on Wednesday.

Who are the 40 highest-paid CEOs among Singapore's listed companies?

SINGAPORE (June 14): Prudential’s Barry Stowe, who retired in Dec 2018, was the highest paid CEO among Singapore listed companies in 2018.

Besides being listed in London, Prudential has a secondary listing on the Singapore Exchange since May 2010.

For lifting the international financial services group’s earnings by 26%, Stowe was given a 7.8% hike in compensation to $16.5 million.

Right timing: Downwards drift continues despite oversold readings

(May 31): With the break below the 200-day moving average at 3,180 caused the decline by the Straits Times Index to quicken. Support stays at Jan low of 3,012. The break below its equilibrium line by quarterly momentum and its continued decline has caused the index to weaken. In addition, volume expanded as prices fell, indicating selling pressure.

Banks can still pay dividends despite a more uncertain macro outlook

SINGAPORE (May 27): Excluding real estate investment trusts, the local banks are probably the safest dividend plays for now. This is despite growing geopolitical and economic uncertainties. In the short term, rising trade tensions and the increasing probability of slower global and US growth could weigh on their share prices.


Right timing: Downwards drift continues despite oversold readings

SINGAPORE (May 24): The decline by Straits Times index slowed during the past five trading sessions.

Despite this, the index slipped below the 200-day moving average currently at 3,183.

At the same time, quarterly momentum has fallen below its equilibrium line and continues its decline.

ADX is rising, and the DIs remain negatively placed, confirming the weaker phase ahead.

Right timing: STI reaches support, decline to slow

SINGAPORE (May 18): The Straits Times index 68 points or just 2% over the past five trading sessions compared with a decline of 3.5% in the previous week.

This has brought the index to 3,20, below the 100-day moving average at 3,230 but above the flat 200-day moving average at 3,167.

There could be a short term pause to the decline as stochastics is at the bottom of its range, and 21-day RSI is at 38. RSI’s support is at 30.

Singapore says it's studying whether to allow digital-only banks

(May 7): Singapore is discussing the possibility of allowing virtual banks to operate in the city state, the Monetary Authority of Singapore said Tuesday.

“MAS is studying whether to admit such digital-only banks with non-bank parentage,” the financial regulator said in an emailed reply to questions from Bloomberg News. “We have been engaging relevant stakeholders to ascertain the unique value that such entrants could bring to our banking landscape, and understand how potential risks will be managed and contained.”

Singapore may allow virtual banks after Hong Kong move, DBS says

(May 6): Singapore could follow Hong Kong in handing out virtual banking licenses, according to the head of the largest local lender, in a move that would create another source of competition for the city state’s established banks.

US Fed to keep rates steady, UOB sees 2020 cut, No Signboard shares slump on CAD probe

(May 6): The US central bank is keeping rates steady, with Federal Reserve chairman Jerome Powell saying he sees no immediate need to move interest rates either higher or lower, and that the Fed is watching for a rebound in persistently sluggish inflation.

On May 1, it kept the target range for the benchmark federal funds rate unchanged at 2.25% to 2.5%, which is where the rate has been since December. It made a “technical tweak” to one of its key rates to ensure borrowing costs remain where it wants them to stay.


DBS kept at 'buy' on continued NIM rise, better trading income and improved credit costs

SINGAPORE (May 2): Jefferies, CGS-CIMB Research and RHB Research are maintaining their “buy” call on DBS Group Holdings while OCBC is downgrading the stock to “hold”.

DBS posted 1Q19 net earnings of $1.65 billion, up 9% y-o-y which is better than consensus expectations of $1.48 billion based on Bloomberg estimate.

NIM (Net Interest Margin) improved from 1.83% in 1Q18 to 1.88% in 1Q19 but management seems certain NIM will improve this year as last year’s rate increases have not fully flow through into FY19.

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