Not impressed with DBS chairman comments

[Cheekg98]

thinks he's just echoing what the press is stating ... too late ... plus he's not a real banker...

Business Times - 03 Apr 2008

AGM WATCH

Liquidity crunch will affect all banks: DBS chief

No link between sub-prime losses and ex-CEO's departure, he says

By CHOW PENN NEE

FINANCIAL markets are still in an 'unprecedented period of volatility', said DBS chairman Koh Boon Hwee on the sidelines of the bank's Annual General Meeting (AGM) yesterday.

 

He added that although Asian banks were less affected by the US sub-prime crisis, all banks would feel the impact of the ensuing liquidity shortage.

'We are all affected secondarily because when there is a shortage of liquidity, it affects all banks, good or bad,' he told reporters.

 

The bank made allowances for 90 per cent of its S$267 million in investments in collaterialised debt obligations (CDOs) linked to the sub-prime.

 

He said financial markets are still facing an 'unprecedented period of volatility' owing to the sub-prime crisis.

 

Mr Koh also talked about expansion plans beyond its main markets in Singapore and Hong Kong. These may include acquisitions in the Middle East, Australia and Vietnam. 'I definitely include the Middle East and I think of Australia as part of Asia,' Mr Koh said. He added 'a rep office is not the only thing I want in Vietnam'.

 

 

The bank earlier this month received a licence from the State Bank of Vietnam to set up a representative office in Hanoi.

 

A shareholder, Mr Ow, asked why Jackson Tai - the outgoing chief executive - was the only 'casualty' of the losses in CDOs relating to the sub-prime. This, despite all local banks having sustained losses relating to investments in the sub-prime debacle.

 

Mr Koh responded that there is no connection between Mr Tai's decision to return to the United States and the sub-prime losses. He also added: 'The deterioration in the bank's share price has no correlation with the departure of Mr Tai.'

 

Separately, on a question pertaining to DBS' decision to close down some of its 'Treasures' preferred banking branches in a few locations, Mr Koh noted that rentals are escalating and the bank was not able to get the space it wanted. 'We have to take into account the expense and cost factors,' he explained

[Amuze]

As long as you r a real scholar, you will be looked after, for life.

[Kingcopa]

No matter how screw up u r.

[Cheekg98]

guess probably more movements in DBS top mgt over the next few months ...

 

will not want to invest in DBS shares, with the current top management running the show ...

[User12343]

then what would you expect him to say?

[User12343]

the name sells by itself, irrespective of who's running the biz. there's a reason why they are the largest bank in sg and not UOB.

[Longg8]

define 'largest' bank pls.

by mkt cap?

[Bugsbunny]

By the biggest mouth?

[Beavc]

the bank don't sell lah...they are what they are now is more historical...like the takeover of POSB lor..so..no biggy...imagine those days people rather park their funds with govt bank mah so now almost everyone has an account...

 

plus don't believe all the BS they claim about being the largest Islamic Bank in terms of paid up capital lah etc it is all about skewing the term...I mean how can they be right? how about the other islamic bank in Saudi, UAE, etc..u mean their paid up cap is lesser than DBS? ma la wu kor ling....

[Cheekg98]

by director's fees ?

[Amuze]

No matter how screw up u r.

 

Yep, just need to relocate u.

[User12343]

their market cap slightly falls less than that of uob, but look closely at their recent balance sheets (assets/liabilities/eps/yield) and u shd know. uob is a Wee-family-owned business while dbs is not. dbs exposure in both local and overseas is greater than the 2nd biggest lender. somehow gahment dun really prefer uob to dbs.

Edited April 3, 2008 by User12343

[Typhoonz]

He's priming up to be a politician mah... Don't they all copy and paste wholesale then do some adjustments?