yup ..... very pivotal that this quarter it added $1.05B profit ..... 🙂
surefire...u are correct.& accurate...BUT general provision was $650M so really taking 200 out is what it meant for..MOST important...this qtr it add $1.05B ( not m ) profit ....in such climate, do you think that MOddy is talking sense ?
Anyway what I am trying to point out is that DBS is still having a strong set of resuts many banks would welcome.Below $15 is definately too cheap ( review its book value and ROI) ....Happy investing.
What dbs did was to use up $200mm of their general provision. hence they only charged an addition specific provision of $150mm. A bit of a fudge since it means they now have less general provision to cover other loans. But it achieved the objective of everyone focussing on 150 instead of 350
Fuds buying 🙂
surefire...u are correct.& accurate...BUT general provision was $650M so really taking 200 out is what it meant for..
MOST important...this qtr it add $1.05B ( not m ) profit ....in such climate, do you think that MOddy is talking sense ?
Anyway what I am trying to point out is that DBS is still having a strong set of resuts many banks would welcome.
Below $15 is definately too cheap ( review its book value and ROI) ....Happy investing.
What dbs did was to use up $200mm of their general provision. hence they only charged an addition specific provision of $150mm. A bit of a fudge since it means they now have less general provision to cover other loans. But it achieved the objective of everyone focussing on 150 instead of 350!
Net profit fell 6% from a year ago to $1.05 billion due to a net allowance charge of $150 million for Swiber group. Total income increased 8% to a new high of $2.92 billion, exceeding cost growth of 6%. Business momentum picked up during the quarter as loans rose 4% over the three months while net fee income climbed to a record. The cost-income ratio improved to 44% as cost growth continued to decelerate. Profit before allowances rose 10% to $1.63 billion. Compared to the previous quarter, net profit was 13% lower. While total income and profit before allowances were higher, the impact was offset by the net allowance charge for Swiber.The provison for Swiber group is only 150m?
Shouldnt it be 350m?
Total exposure to Swiber is around 700m right?
As mentioned, without tackling bad debt concern directly, it will continue to linger and drag share price. Anyway, I think share price is quite fair now with almost $5b price in. Vested some more.
05/08 $14.86
08/08 $14.91
The dividend will provide support and drive to share price. But DBS does not turn more aggressive on bad debt treatment. One thing I am surprised is that they don't even top up the $250m general allowance. In any case, as mention before, the price now is pretty fair.
Vested at $14.86.
DBS' s net profit of S $ 1.05 billion * in the three months ended June, this is line with an average forecast of S $ 1.051 billion from six analysts polled by Reuters.The poll was taken before DBS disclosed its S $ 700 million exposure to troubled oilfield services firm Swiber Holdings Ltd.
* The results included a net allowance charge of SGD 150 million for DBS ' exposure to the Swiber group after drawing SGD 250 million from general allowance reserves.
DBS announced a total exposure of $ 700m to the Swiber group comprising loans, bonds, and off-balance sheet items.
DBS expects to recover half of this sum as the exposure is partly secured.
DBS stated that it will provide fully for the anticipated shortfall, and that it will use surplus general allowances and the net allowance charge will be lower at about $ 150m.
Net profit fell 6% from a year ago to $1.05 billion due to a net allowance charge of $150 million for Swiber group. Total income increased 8% to a new high of $2.92 billion, exceeding cost growth of 6%. Business momentum picked up during the quarter as loans rose 4% over the three months while net fee income climbed to a record. The cost-income ratio improved to 44% as cost growth continued to decelerate. Profit before allowances rose 10% to $1.63 billion. Compared to the previous quarter, net profit was 13% lower. While total income and profit before allowances were higher, the impact was offset by the net allowance charge for Swiber.The provison for Swiber group is only 150m?
Shouldnt it be 350m?
Total exposure to Swiber is around 700m right?
What dbs did was to use up $200mm of their general provision. hence they only charged an addition specific provision of $150mm. A bit of a fudge since it means they now have less general provision to cover other loans. But it achieved the objective of everyone focussing on 150 instead of 350!
Net profit fell 6% from a year ago to $1.05 billion due to a net allowance charge of $150 million for Swiber group. Total income increased 8% to a new high of $2.92 billion, exceeding cost growth of 6%. Business momentum picked up during the quarter as loans rose 4% over the three months while net fee income climbed to a record. The cost-income ratio improved to 44% as cost growth continued to decelerate. Profit before allowances rose 10% to $1.63 billion. Compared to the previous quarter, net profit was 13% lower. While total income and profit before allowances were higher, the impact was offset by the net allowance charge for Swiber.The provison for Swiber group is only 150m?
Shouldnt it be 350m?
Total exposure to Swiber is around 700m right?
Net profit fell 6% from a year ago to $1.05 billion due to a net allowance charge of $150 million for Swiber group. Total income increased 8% to a new high of $2.92 billion, exceeding cost growth of 6%. Business momentum picked up during the quarter as loans rose 4% over the three months while net fee income climbed to a record. The cost-income ratio improved to 44% as cost growth continued to decelerate. Profit before allowances rose 10% to $1.63 billion. Compared to the previous quarter, net profit was 13% lower. While total income and profit before allowances were higher, the impact was offset by the net allowance charge for Swiber.
This counter is still SOLID as gold.
Exceed my $1B profit ...even INCLUDING $150 swiber lost. Well done in such business climate.
OH MOODY can do it or remain moody.
Brother, if not for the Swiber provision (which I actually thought shd have been provided under 3Q16 instead), earnings wld have been nearer 1.2 bil, n 2016 earnings cld, according to my own guestimate, have been, or at least get very close to, 5 bil. That wld give EPS of close of 2/share, or PE of abt 10 at 20SGD. So, personally, I' d stick my neck out for a tp > 20. But then again, don' t know what the creative bunch in the media industry n the like wld come up with. So, I wldn' t rush in to buy with exuberence .....
superb info, bro ..... noted the Strong Balance Sheet ..... do you think DBS should be re-rated to $20 ?
Dont think about it.
I think DBS is one reason for the STI to have been artificially compressed to its current level. Such a shame that DJ continues on record highs n the mkt here seeming regressing without reversal in sight. How are the top SGX management planning to " undo in injustice" , I wander.
DBS is one of the leading component ..... hopefully will unleash a powerful energy .....
up up and the way....
well said 
I think DBS is one reason for the STI to have been artificially compressed to its current level. Such a shame that DJ continues on record highs n the mkt here seeming regressing without reversal in sight. How are the top SGX management planning to " undo in injustice" , I wander.
DBS is one of the leading component ..... hopefully will unleash a powerful energy .....
This a stock forum.. Please refrain from posting irrelevant things like your kopi flying out.. Quoting from famous pinky earlier posts.
Joke of the century. My kopi nearly fly out now.
wa bro ..... your guestimate very detail too .....hopefully market will seriously view your TP > 20
