Huat with DBS in Year of the Dragon!

DBS reported stellar full year 2023 results.

Net profit rose 26% to S$10.3 billion.

Return on equity improved from 15% to 18%.

2023 saw a 22% increase in total income largely due to higher net interest margin, fee income and treasury customer sales.

A final dividend of 54c was proposed and this is 6c higher than before.

2023 full year dividend at $1.92.

DBS is also proposing a bonus share issue of 1 share for every 10 shares.

Bonus shares will qualify for dividends from 1Q 2024.

Assuming DPS stays the same, this will boost dividend received by 10% in 2024!

My decision to add to my investment in DBS in November last year was fortuitous.

This makes me happy.

Mr. Market seems to like the news as well as DBS share price has gone up by 2.6% so far today.

Gong Xi Fa Cai!

Wishing all readers a Happy Chinese New Year!

Reference:
Added to position in DBS.

Updated plan as yield plunged on 6 months T-bill!

It could be a sign of things to come.

Cut-off yield in the latest 6 months T-bill auction was 3.54% p.a.

That is a huge decline from 3.7% p.a. seen in the prior auction.

100% of my non-competitive bid was filled.

3.54% p.a. is still decent but it is similar to what I am able to get from 6 months fixed deposits now.

I have a few fixed deposits maturing this month and I will be renewing them at 3.55% p.a. interest rate for a 6 months tenure with CIMB.

I have talked to myself about when to dismantle the T-bill ladder.

The plan is to dismantle the ladder when Mr. Market goes into a depression.

However, if the cut-off yield becomes significantly lower than what I could get from 6 months fixed deposits, then, I could dismantle the ladder too.

Place fixed deposits instead of buying T-bills.

Still laddering but with fixed deposits instead.

As for CPF OA money, I would simply leave the money undeployed if cut-off yield goes under 3.5% p.a. which is where I would place my competitive bids.

This is why I said it makes sense to transfer the funds from CPF IA to CPF OA when I did.

It is for in case I am unsuccessful in getting T-bills at the cut-off yield which is meaningful to me.

Where are things going?

So, it seems that T-bill cut-off yield is trending lower.

This is probably in response to dovish statements from the Fed and also the ECB on possible interest rate cuts this year.

Just have to roll with the punches and adapt.

If AK can roll, so can you!

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