DBS buys SocGen's Asian banking arm (ST:18.3)
The acquisition represent 1.75% of the US$12.6b assets managed by SocGen Asia's private bank last year.
This will mark the end of SocGen's Asian private banking business.
DBS head of consumer banking and wealth management, Ms Tan Sure Shan says that DBS expects to retain about US$10b of SocGen's Asian assets a majority of the 330 SocGen's staff to join DBS.
Love Compassion
A Life not Reflected is a Life not Worth Living.
DBS directors quizzed on bank's social role at AGM
Published on Apr 29, 2014 1:38 AM
DBS chief executive Piyush Gupta.
By Yasmine Yahya Finance Correspondent
SHAREHOLDERS of DBS Group Holdings yesterday seized the chance to quiz its directors on issues ranging from directors' pay to bank queuing times and the social role of DBS and POSB.
About 200 shareholders turned up for the annual general meeting, quizzing DBS directors for nearly two hours.
One shareholder even quipped that DBS chairman Peter Seah should take up a less strenuous pastime such as yoga or qigong.
This was after shareholders were told that Mr Seah could not attend the meeting, held at the NTUC Auditorium as he was under observation in hospital after a weekend mountain bike accident. DBS board member Euleen Goh chaired the meeting instead.
One topic that cropped up several times was how DBS, and particularly POSB, could do more for its loyal customers, especially the "mom and pop" depositors.
Shareholder Mano Sabnani noted that the bank is seen to have an important social role in Singapore. He suggested that POSB could perhaps, like the Central Provident Fund, invest some of its deposits in low-risk investments such as Singapore Government bonds so that it can offer higher deposit rates.
Other shareholders raised the issue of service standards, noting, for example, that queues at DBS branches tend to be long.
DBS chief executive Piyush Gupta said the bank has commercial interests to take care of on top of stakeholder and customer interests and that it has already made "a balanced compromise" between the two.
DBS' net interest margin, a measure of profits from loans, is down substantially from four or five years ago but deposit rates have not been reduced as sharply, he noted.
"The reality is that banks have absorbed some of the reduction in rates," he said.
He added that DBS has pushed out a range of subsidised loan packages for social enterprises, an HDB home loan with low interest rates and a new multiplier programme to reward loyal customers.
He added that DBS has rolled out measures to cut queues at branches. The average waiting time during peak periods has fallen from two hours a few years ago to 40 minutes now, and 80 per cent of branch visitors now wait 15 minutes or less.
Directors' pay was another
talking point.
Shareholders passed a resolution to raise directors' fees from $2.9 million to $3.7 million, which Ms Goh explained would bring the board's remuneration more in line with industry norms, and recognise board members for their task of managing a regional bank in an increasingly complicated industry.
A few shareholders spoke up about Mr Seah's new pay package. He earned $1.84 million in total for the 12 months to Dec 31, up from the $999,284 he received in 2012, according to DBS' 2013 annual report.
Mr Sabnani argued that as a bank with a national role, DBS should think twice about such a big increase in the remuneration for the non-executive chairman, who is not involved in executing strategy.
But fellow shareholder Christopher Cheong argued that DBS was fortunate to have Mr Seah as chairman as his credentials and experience made him a valuable guide to the bank's management.
DBS also made plain that it is serious about integrity - both ethical and technological.
Mr Gupta said the bank has imposed some "quite draconian" rules on traders, for example, forbidding them from using mobile phones while in the trading rooms and barring chatroom access in these rooms.
These measures follow a government review completed last year that found traders at 20 banks in Singapore, including DBS, had tried to rig benchmark interest rates, including one that affects the cost of home loans.
Mr Gupta said DBS is also working with SingTel and StarHub to come up with contingency plans so that banking services will be uninterrupted if one of the telcos experiences a network failure.
yasminey@sph.com.sg
Background story
DBS' net interest margin, a measure of profits from loans, is down substantially from four or five years ago but deposit rates have not been reduced as sharply, noted DBS chief executive Piyush Gupta.
"The reality is that banks have absorbed some of the reduction in rates," he said.
"invest some of its deposits in low-risk investments such as Singapore Government bonds so that it can offer higher deposit rates"??? Seriously does the guy know what he is talking about?
But $2m as non executive chairman is too much... irks with smells of patronage and golden parachute... he might as well become minister... ministers still have to shake hands with fishmongers and kiss babies.
POSB 1.38% Six Month Fixed Deposit 3-day only promotion starting today.
1. logon into
https://internet-banking.dbs.com.sg/IB/Welcome
2. click on "Account Opening and Placements" -> "S$ Fixed Deposit Placement"
3. key in your Two-factor-authetication (token or SMS)
4.
If you dont have a fixed deposit account with POSB
4.1 choose "New Account Opening" -> Fixed Deposits -> Singapore Dollar Fixed Deposit
4.2 choose "POSB Everyday Saving Account" as Existing account.
5.
Placement
5.1 Amount = $10,000; Placement Period = 6 month
6. Interest = $69.19
attached: screen shot for your reading pleasure.
(29-04-2014, 07:33 AM)greengiraffe Wrote: [ -> ]One topic that cropped up several times was how DBS, and particularly POSB, could do more for its loyal customers.
Shareholder Mano Sabnani suggested that POSB could perhaps, like the Central Provident Fund, invest some of its deposits in low-risk investments such as Singapore Government bonds so that it can offer higher deposit rates.
Love Compassion
^^ You think this came about because of what Mano said?
I don't know but I know that Mano is a good man.
Actually, I'm more impress with the CEO, he took action and quick actions (just like many tikam buddies).
For $69, he brought some loyal customers.
Oh, forgot to says, you must have $10k in your POSB account to get this FD online (thru website).
On 2nd thought, who don't have at least $10k in POSB?
(30-04-2014, 12:50 PM)specuvestor Wrote: [ -> ]^^ You think this came about because of what Mano said?
Love Compassion
Max 10k per customer only.害我白开心一下。
(30-04-2014, 03:00 PM)chialc88 Wrote: [ -> ]I don't know but I know that Mano is a good man.
Actually, I'm more impress with the CEO, he took action and quick actions (just like many tikam buddies).
For $69, he brought some loyal customers.
Oh, forgot to says, you must have $10k in your POSB account to get this FD online (thru website).
On 2nd thought, who don't have at least $10k in POSB?
(30-04-2014, 12:50 PM)specuvestor Wrote: [ -> ]^^ You think this came about because of what Mano said?
Love Compassion
It seems that One need to have an existing FD account in order to do it online. For those without an existing FD account, you will need to have it created first, which will take up to 2 working days, which mean that you can't make it to place the FD with promotional interest rate in time, unless that you go and queue over the counter.
