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A Look into DBS Group Holdings’ Q4 and FY2020 Results (Guest Post)

A Look into DBS Group Holdings’ Q4 and FY2020 Results (Guest Post)

DBS Group Holdings (SGX:D05) is the first of the three Singapore-listed banks to release its results for the fourth quarter, as well as for the financial year 2020 ended 31 December 2020 early this morning (10 February 2021) – the other two banks will be releasing its results on the final week of February (OCBC on 24th February, and UOB on 25 February – both before market hours.)

In my post today, let us take an in-depth look into DBS’ latest ‘report card’ – particularly its key financial results, key financial ratios, as well as its dividend payouts to shareholders, along with my personal opinions as a shareholder of Singapore’s biggest bank to share.

Image result for dbs

This post was originally posted here. The writer, Lim Jun Yuan is a veteran community member and blogger on InvestingNote, with a username known as @ljunyuan and has close to 2,000 followers.

Key Financial Results (Q4 FY2019 vs. Q4 FY2020, and FY2019 vs. FY2020)

In this section, you will find the bank’s results on a quarter-on-quarter (q-o-q) basis (i.e. Q4 FY2019 vs. Q4 FY2020), as well as on a year-on-year (y-o-y) basis (i.e. FY2019 vs. FY2020):

Q4 FY2019 vs. Q4 FY2020:

Q4 FY2019 Q4 FY2020 % Variance
– Net Interest
Income (S$’mil)
$2,426m $2,120m -12.6%
– Net Fee & Commission
Income (S$’mil)
$741m $747m +0.8%
– Other Non-Interest
Income (S$’mil)
$294m $396m +34.7%
Total Income
(S$’mil)
$3,461m $3,263m -5.7%
Total Expenses
(S$’mil)
$1,600m $1,580m -1.3%
Net Profit
(S$’mil)
$1,508m $1,012m -32.9%

Total income (which consisted of 3 components: net interest income, net fee and commission income, as well as other non-interest income) fell 5.7% on a q-o-q basis to S$3,263m, as a decline in its net interest income (due to a 37 basis point q-o-q drop in its net interest margin to 1.49%), cushioned by an increase in its net fee and commission income (attributed by an improvement in its wealth management fees), as well as in its other non-interest income (as a result of an increase in its trading income.)

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4 Key Things to Know about DBS & Lakshmi Vilas Bank (LVB) Merger (guest post)

4 Key Things to Know about DBS & Lakshmi Vilas Bank (LVB) Merger (guest post)

By now, you probably have heard about India’s central bank proposing a scheme to merge the ailing Lakshmi Vilas Bank (LVB) with DBS Bank.

Many investors have been crying foul about the bad deal etc. On the analysts side, there have been a mixed reaction as shown from the Biz Times article here.

But on an objective note, here’s 4 key things investors need to know about the proposed DBS – Lakshmi Vilas Bank (LVB) merger (there are plenty of snippets from various sources below and you can refer to the url links posted at the end).

This post was originally posted here. The writer, James Yeo is a veteran community member and blogger on InvestingNote, with a username known as @Smallcapasia and has 913 followers.

1) What led to DBS – Lakshmi Vilas Bank (LVB) merger?

This is believed to be the first time that the India central bank has turned to a foreign lender to rescue a failing local bank, in a move that took the industry by surprise.

Lakshmi Vilas Bank has been struggling with financial decline and red ink for the past three years. It incurred a loss of around $150 million in the 12 months to March 31. Its net worth has also shrunk while unpaid loans have increased.

India’s central bank advised LVB in September last year to reduce bad assets and bring in new capital.

However, after many months of futile discussion talks and sensing that things are deteriorating, The central bank stepped in to bail them out.

RBI (Reserve Bank of India) then did the following on 17 Nov 2020:

  • Imposed a one-month moratorium on LVB
  • Capped deposit withdrawals at 25,000 rupees and
  • Unveiled the proposed merger with DBS soon after.

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DBS Group Holdings – Key Highlights Of Q3 and 9M FY2020 Business Updates (Guest Post )

DBS Group Holdings – Key Highlights Of Q3 and 9M FY2020 Business Updates (Guest Post )

Is DBS doing better than expected?

 DBS launches transition financing framework to help 'less than dark-green' industries | News | Eco-Business | Asia Pacific

This post was originally posted here. The writer, Lim Jun Yuan is a veteran community member and blogger on InvestingNote, with a username known as @ljunyuan and has 1433 followers.

Early this morning, the other 2 Singapore banks, DBS Group Holdings (SGX:D05), as well as Overseas-Chinese Banking Corporation (SGX:O39), reported their business updates for the third quarter as well as for the first nine months of financial year 2020 (ended 30 September 2020.)

In this post, my focus will be on DBS’ latest results (I will publish a separate post to review OCBC’s latest quarter results shortly), where I will be looking at some of the key financial statistics (Q3 FY2019 vs. Q3 FY2020, and 9M FY2019 vs. 9M FY2020), as well as some of their key financial ratios (reported for Q3 FY2020 ended 30 September 2020, compared against the ratios reported 3 months ago – i.e. Q2 FY2020 ended 30 June 2020), along with information regarding its dividend payout for the quarter (DBS is the only bank out of the 3 Singapore banks that pays out a dividend to its shareholders on a quarterly basis.) Finally, you will also find in this post my personal thoughts about the bank’s latest set of results.

Let’s begin…

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UOB Shows 2Q Robust Results. Is It A Good Time To Buy Singapore Bank Stocks Now?

UOB Shows 2Q Robust Results. Is It A Good Time To Buy Singapore Bank Stocks Now?

UOB has announced its 2Q18 net earnings of S$1077m on last Thursday, that’s +28% increase YoY and +10% QoQ.

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The outperformance came from a strong improvement in Net Interest Income which rose 14% YoY and 5% QoQ. In addition, Non-interest Income also grew 5% QoQ to S$800m. Net Interest Margin (NIM) eased off slightly from 1.84% in the previous quarter to 1.83% this quarter, but this is still an increase over 1.75% in 2Q17. Management has also declared an interim dividend of 50 cents (vs 35 cents in 2Q17), and this is payable on 28 Aug 2018.

How does UOB compare with its peer, DBS?

DBS on the other hand, reported an 18% gain in net profit for 2Q18 but that missed expectations as stronger net interest income was offset in part by a fall in non-interest income on lower trading income.

Why is that the case?

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SG’s 4th Telco…and Fed Raises the Rate!

SG’s 4th Telco…and Fed Raises the Rate!

2 major news happened this week: 1. TPG wins bid to become the 4th Telco and 2. US has increased interest rates!

TPG is 4th Official Telco

tpg_telecom

TPG has won the bid to become the 4th telco, ousting out competition such as Circles.life and MyRepublic. A new entrant in the oligopolistic market for telecommunications, might just shake up the market share for the Big 3 telcos of Singapore.

However, the question is now to what extent is TPG going to shake up the market share?

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