DBS Bank

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DBS Bank Ltd
Type Public
Traded as SGX: D05
Industry Banking
Founded 1968
Headquarters Singapore
Key people Peter Seah Lim Huat, Chairman
Piyush Gupta, CEO
Products Financial Services
Operating income
  • Increase SGD 8.927 billion (2013)
  • Increase SGD 8.064 billion (2012)
[1]
Net income
  • Increase SGD 3.501 billion (2013)
  • Increase SGD 3.359 billion (2012)
Total assets
  • Increase SGD 402.008 billion (2013)
  • Increase SGD 353.033 billion (2012)
Employees 18,000[2]
Website www.dbs.com
DBS Building (far left and right) was the flagship building for DBS, before it was sold in 2010
Marina Bay Financial Centre, the current corporate head office of DBS, is in the background

DBS Bank Ltd (Chinese: 星展银行有限公司; pinyin: Xīngzhǎn Yínháng Yǒuxìan Gōngsī) is a bank incorporated in Singapore. It was previously known as The Development Bank of Singapore Limited, before the present name was adopted in July 2003 to reflect its changing role as a regional bank.[3]

The bank was set up by Government of Singapore in June 1968 to take over the industrial financing activities from the Economic Development Board. Today, its branches numbering more than 100 can be found island-wide. DBS Bank is the largest bank in South East Asia by assets and among the larger banks in Asia. It has market-dominant positions in consumer banking, treasury and markets, asset management, securities brokerage, equity and debt fund-raising in Singapore and Hong Kong. The bank's strong capital position, as well as "AA-" and "Aa1" credit ratings that are among the highest in the Asia-Pacific region, earned it Global Finance's "Safest Bank in Asia" accolade for five consecutive years, from 2009 to 2013.[4]

With operations in 15 markets, the bank has a regional network spanning more than 250 branches and over 1,100 ATMs across 50 cities.[4]

Acquisition of POSB Bank[edit]

In 1998, DBS Bank merged with POSB Bank, giving it a dominant market share with over four million customers.

The Post Office Savings Bank was renamed as POSBank in March 1990. It was subsequently fully acquired by DBS Bank on 16 November 1998 for S$1.6 billion; at the same time, ceased to exist as a statutory board under the Ministry of Finance. POSB Bank still operates one of the highest number of bank branches in Singapore, especially in the suburban neighbourhoods, and operates the highest number of ATM outlets throughout Singapore. The integration of both banks allowed customers of either bank to share the facilities; DBS Bank depositors may use the Cash Deposit Machine installed islandwide in POSBank branches, likewise for POSB Bank depositors.

Shareholders[edit]

The largest shareholders as of 4 March 2013[5] are:

  1. Citibank Nominees Singapore Pte Ltd 468,062,070 shares 19.182%
  2. Maju Holdings Pte. Ltd. 428,888,448 shares 17.573%
  3. DBS Nominees Pte Ltd 374,782,964 shares 15.364%
  4. Temasek Holdings (Private) Ltd 284,145,301 shares 11.645%
  5. DBSN Services Pte Ltd 237,510,987 shares 9.736%
  6. HSBC (Singapore) Nominees Pte Ltd 157,973,300 shares 6.47%

* Percentage is calculated based on the total number of issued ordinary shares, excluding treasury shares

Temasek Holdings (Pte) Ltd, a company wholly owned by the Ministry of Finance, is deemed to be interested in 433,338,229 ordinary shares in which its subsidiaries and associated companies have or are deemed to have interests. The breakdown is as follows:

  • Maju – 428,888,448 shares (17.57%).
  • Fullerton Fund Management Company Ltd. – 500,000 shares (0.02%), a subsidiary of Temasek.
  • Keppel Corporation Limited – 3,949,781 shares (0.16%) held by the Keppel Corporation Limited group of companies which are Temasek associated companies.

International operations[edit]

DBS has branches and offices in China, Dubai, Hong Kong, India, Indonesia, Japan, South Korea, Malaysia, Myanmar, Philippines, Taiwan, Thailand, Vietnam, United Kingdom and United States.

Hong Kong[edit]

Main article: DBS Bank (Hong Kong)

DBS started its operations in Hong Kong in 1999 by acquiring Kwong On Bank from Leung's family & Japanese-based Fuji Bank, and renamed it as DBS Kwong On Bank. It acquired Dao Heng Bank (and its subsidiary Overseas Trust Bank) in 2001. The three banks were later merged under the trading name of DBS.

China[edit]

Strategically located in the key trade and financial hubs of China, DBS has a network of full service branches in Beijing, Guangzhou, Shanghai, Shenzhen, Suzhou, Tianjin, Dongguan, Nanning and Hangzhou; and representative offices in Fuzhou which provide a comprehensive range of commercial and corporate banking services. In December 2006, DBS Bank received approval from the China Banking Regulatory Commission (CBRC) to prepare for local incorporation in China. DBS is the only Singapore bank among nine foreign banks to receive this approval. In 2010, it also became the first Singapore bank to issue UnionPay debit cards in China.

Taiwan[edit]

In May 2008, DBS integrated Taiwan's Bowa Bank into its operations after acquiring the "good bank assets" in February. There are 40 distribution outlets across the country, half of which are based in Taipei.

India[edit]

Headquartered in the commercial capital of Mumbai, DBS operates via a network of 12 bank branches across India in Banglore, Chennai, Cuddalore, Calcutta, Kolhapur, Moradabad, Bombay, Nashik, New Delhi, Pune, Salem and Surat.[6] DBS India had a 37.5% stake in DBS Cholamandalam Finance, a non-bank financial institution, in April 2009, it transferred its shares to the parent company Tubes Investments of India Limited, thus terminating its shared holder agreement in Cholamandalam DBS .

Indonesia[edit]

DBS has a 99%-owned subsidiary, PT Bank DBS Indonesia, with 39 branches and sub-branches in 11 cities.

On April 2012, DBS announced that it was planning to buy over a majority stake in Bank Danamon from Temasek Holdings.[7] Initial reactions to the proposed purchase in Indonesia were cautious with most commentators saying that the deal was expected to be approved but that government regulators would doubtless wish to look at some of the details, including reciprocity from Singapore policy makers, quite closely before making a final decision.[8]

On 31 July 2013, DBS announced that it had allowed the Bank Danamon bid to lapse, but that they remained committed to Indonesia and will continue to invest and grow franchise.[9]

The Islamic Bank of Asia[edit]

DBS Bank launched The Islamic Bank of Asia (IB Asia) on May 7, 2007, after receiving official approval from the Monetary Authority of Singapore for a full bank licence. IB Asia's founding shareholders include majority stakeholder DBS and 34 Middle Eastern investors from prominent families and industrial groups from Gulf Cooperation Council (GCC) countries.

DBS iB Secure Device and Internet Banking[edit]

DBS iB Secure Device showing code number

Starting in late 2006, the bank began releasing to its Internet banking customers a Dual Factor Authentication device to assist in thwarting phishing attacks. The DBS iB Secure Device is a hardware device with a key fob form factor that generates a password that is linked to the log-on name. The password changes every sixty seconds and once used is no longer valid. The institution Code for DBS is 7171.

In 2012, DBS introduced a New Generation IB Secure Device as part of the financial industry-wide initiative for an even safer online banking experience. The device has stronger authentication capabilities and provides users with an extra layer of security against potential fraudulent activities and threats. [10]

DBS has a total of 1.9 million Internet banking users in Singapore as of 2012. [11]

Mobile Banking[edit]

On 15 April 2010, DBS Bank launched mobile banking service, mBanking, to both DBS and POSB customers. It allows customers to view their banking and credit card accounts, transfer funds and pay bills via their mobile phones. Customers will need to download an application from the company website to use this service

mBanking was already soft-launched on both DBS and POSB websites on 10 April 2010 with more than 2,300 downloads.

Customers using mBanking will be protected by DBS Bank's 'money-safe' guarantee. The bank promised reimbursements if there are any unauthorised transactions.[12]

As of 2012, there were 600,000 mBanking users in Singapore. [11]

DBS Group Earning Record for First Half of 2013[edit]

DBS Group Holdings delivered record half-year earnings of SGD 1.84 billion for the first six months of 2013, up 5% from a year ago. Total income rose 13% to a half-year high of SGD 4.63 billion from higher loan volumes and broad-based non-interest income growth. Profit before allowances increased 15% to SGD 2.69 billion, also a half-year record.

For the second quarter, net profit rose 10% from a year ago to SGD 887 million. Total income increased 19% to SGD 2.31 billion and was maintained at the record level of first-quarter 2013.[13]

References[edit]

External links[edit]