DBS Group Holdings (DBS)

New digital bank models to lower compliance and other costs as local banks extend lead

(Sept 23): Earlier this year, DBS Group Holdings received a thank-you note from a digibank customer in India. A self-employed customer was looking for financial aid towards the end of the Muslim holy month of Ramadan. “My children wanted new clothes for Eid. When I was looking for options, I happened to open my digibank app. I saw the ‘PL’ [personal loan] option, clicked on it and applied. I got the money in my account in two to three minutes. No waiting period. This is the best service ever,” the Indian digibank customer says.

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Credit costs, NPLs to rise, says Maybank Kim Eng's artificial intelligence algorithm

SINGAPORE (Sept 16): On Sept 12, Maybank Kim Eng (MBKE) said in a report that it was using artificial intelligence to gauge the different metrics affecting the non-performing loans (NPLs) of local banks.

According to its analysis, the pace of non-Singapore dollar loan growth, domestic inflation and the rate of change in special-mention loans have the strongest influence in setting the direction of NPLs. In contrast, interest rates, changes to unemployment and GDP growth — variables that traditionally guide NPL forecasts — seem to have a smaller impact.

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DBS launches hybrid human-robo investment solution for retail customers

SINGAPORE (Sept 2): DBS Bank has launched DBS digiPortfolio – a hybrid human-robo investment solution that allows retail investors to tap on investment strategies from the bank’s wealth management team.

According to DBS, the one-stop portfolio solution combines the expertise of DBS’ Wealth Management investment strategists and the efficiency of robo technology, and can be purchased by customers with no prior investment experience.

Recession fears a temporary setback, local banks should rise in long term

SINGAPORE (Sept 2): Looking beyond current global economic uncertainties, the fact remains that the stock market usually rises in the very long term. The local banks are a good example. Once proxies to GDP growth in Singapore and Malaysia, they now reflect growth in Asia as they gradually regionalise. Economies usually grow over the long term. The 30-year price charts (see Charts 1 to 3) of the three local banks show that their prices have risen over a 30-year period, despite the two occasions on which there were serious declines — during the Asian and global financial crises.

Banks as yield plays, with upside from earnings growth

SINGAPORE (Aug 12): Slowing global growth and uncertainties over the escalating trade war, tech supply chain, China and Hong Kong have all taken their toll on the share prices of the three local banks — DBS Group Holdings, Oversea-Chinese Banking Corp and United Overseas Bank. Interestingly, both DBS and UOB are still ahead (see Table 1) in terms of price gains, and OCBC is unchanged since the start of the year. Of course, at one point, the banks had double-digit share-price gains, with DBS up 20% since Jan 2.

Onerous conditions for new digital bank licences enable local banks to forge ahead with digital plans

SINGAPORE (Aug 12): On June 28, the Monetary Authority of Singapore (MAS) announced that it would issue five new digital bank licences: two digital full-bank licences and three digital wholesale bank licences. Following the announcement, InstaReM, iFAST Capital and peer-to-peer (P2P) operator Validus Capital expressed interest in applying for the licences.

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Banks as yield plays, with upside from earnings growth

SINGAPORE (Aug 12): Slowing global growth and uncertainties over the escalating trade war, tech supply chain, China and Hong Kong have all taken their toll on the share prices of the three local banks — DBS Group Holdings, Oversea-Chinese Banking Corp and United Overseas Bank. Interestingly, both DBS and UOB are still ahead (see Table 1) in terms of price gains, and OCBC is unchanged since the start of the year. Of course, at one point, the banks had double-digit share-price gains, with DBS up 20% since Jan 2.

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DBS expects lower income growth in 2H; CEO Gupta downplays threat from digital banks

SINGAPORE (July 29): DBS Group Holdings may have achieved 11% growth in total income of $7.26 billion and 12% growth in net profit of $3.254 billion for 1HFY2019 but these growth rates may not be repeated in the second half, cautions CEO Piyush Gupta.

See: DBS posts record 1H earnings after 20% rise in 2Q earnings to $1.6 bil

DBS posts record 1H earnings after 20% rise in 2Q earnings to $1.6 bil

SINGAPORE (July 29): DBS Group’s reported record earnings of $3.25 billion for 1H19 after 2Q19 earnings rose 20% to $1.60 billion from a year ago.

The quarterly bottomline beat the average estimate from three analysts of $1.47 billion, according to data from Refinitiv.

DBS says total income rose 16% to $3.71 billion from $3.2 billion a year ago which outstripped a 9% growth in expenses.

Net interest income increased 9% to $2.43 billion from $2.23 billion as loans grew 5% in constant-currency terms and net interest margin improved six basis points to 1.91%.

Can Singapore banks fend off new challengers as city-state grants digital bank licences?

SINGAPORE (July 4): DBS Group Holdings (DBS), Oversea-Chinese Banking Corp (OCBC) and United Overseas Bank (UOB) have enjoyed a decades-long dominance of the banking market in Singapore.

But a decision by the central bank to grant up to five digital bank licenses to non-bank players is about to shake up the market.

The Monetary Authority of Singapore (MAS) last week announced it will grant as many as two digital full-bank (DFB) licenses and up to three digital wholesale bank (DWB) licenses.

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