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Just read an article in CNA and I am just thinking out loud if it is still a good idea to invest in Singapore banks?
Southeast Asia's biggest bank has said demand for home and car loans in Singapore has plunged this year following government measures to cool inflation.
DBS Group's chief executive, Piyush Gupta, told Channel NewsAsia new home loan demand fell by 50 to 60 per cent last month.
He said lending this year is unlikely to match 2012.
.... Mr Gupta said much of the bank's Singapore operations lose money and Indonesia is the focus for growth this year.
Read full article: here.
Related posts:
1. More cooling measures on the way?
2. Cooling measures for cars.
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9 comments:
Looking at DBS's financial statements as of 31 Dec 2012, net profit from Singapore - "based on the country in which the transactions are booked" - was $2529m or about 66% of the total net profit of $3809m for the year. So it looks like by "lose money" Gupta means "make insane amounts of money". He probably means something more sophisticated like return on assets or capital.
Hi IzyData,
I have a feeling that Gupta was referring to the first quarter of 2013 which is coming to a close soon. Am I mistaken?
I read the article. Did he really said Singapore Operation losing money or earning lesser ? Just want to be sure the extend of the impact.
Hi Cory,
The words are from the article. I did not change a single word.
What do you think? ;)
Hi AK71,
Theoretically he could be right... much of the Singapore operations lose money, but the rest of the operations earn so much money that the overall result is still a nice profit.
I don't know enough about a bank's operations to know if that's correct. :)
He did not say that the Singapore operations lose money. He said "much of the bank's Singapore operations lose money" which is totally different.
That is theoretically possible (Pareto principle, anybody?) but I don't know enough about a bank's operations to comment further. :)
Hi kh,
Very enlightening comments! Thank you very much. :)
Must buy this bank, even though " most of sg operation lose money" but its share prices keep going up. LOL
Hi seefei,
I was a shareholder once upon a time at under $10 a share. Haha.. Sold too early. ;p
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