DBS profit up, share price down

DBS announcing another unbelieveable achievement for the 4th quarter results. At the rate it is making profit, in no time DBS would be the biggest bank in the world and the most profitable one.  4th quarter profit up 20%, to $1b in 3 mths. Who is saying banks cannot make big profits like the casinos? And revenue hit $10b or $10.79b in a quarter, extrapolate to one year it would be more than $40b! Earning per share also up from $1.32 to $1.57.

With this kind of scintillating performance, the management must be handsomely rewarded by the millions and well deserving. But please put in the claw back clause for safety reasons, just in case like Sembawang and Keppel. But touch wood it would not happen to DBS. DBS can expect to grow and grow and profit to go up and up like the salaries of super talents.

Now the bad news. Share price of DBS bank was down 18% for the year and this was based on yesterday’s price. Today(24 Feb) its price fell by another 26c.  What is happening, with such good results and no bad news, the share price of DBS is falling like a rock! How to explain this?

Didn’t the investors and fund managers believe in the good numbers and start to rush in to buy up more DBS shares for keeps? With 30c of dividend, it is as good as getting 30c discount. The fund managers and investors are not saying they don’t believe in the results right? And it cannot be a sell on news because the share price has been falling and not rising before the announcement. What is going on, what is happening?

DBS is not like those western banks that reported billions and billions of profits only to reveal a big black hole during the banking crisis and begged the US govt for handouts or go bust. The MAS has a very tight control and would not allow local banks to have their accounts cooked like those western banks, creating billions of profits when the truth is losing billions instead. MAS has a very high standard of control and governance and the scintillating results of DBS or any local banks are real. Don’t worry, we are in good hands.

One possible reason, the computers are doing all the damages. Computer trading is never about fundamentals. It is pure trading and gambling. The computers are programmed to trade against the investors. When investors rush in to buy, the computers will be computing when to sell and how much to sell to make profit against the investors. This could be the case. The investors and funds are rushing in to buy only to be sold down by the computers and the victims are the investors and fund managers having faith in the good results, and  the share price of DBS.

The big winners, the computer traders. And if you look at the volume of trades done, more than 10m shares in half a day, or more than $130m of trades done. This could not be the work of small investors or fund managers trading. It is the sign of computers trading and doing the damage.

DBS, Temasek and GIC and big funds are paying a heavy price to the computer traders that would show them the middle fingers as far as fundamentals are concerned. DBS is doing very well, very good company, top bank in Singapore, Batam and Bintan, oops I mean in the Asia and the world. Why is the price falling like a coconut?

Thank you, computer trading. You are a darling, very good for the market and for long term investors buying on fundamentals.


Anonymous said...

DBS profit up, share price down
What is wrong with that?

Singapore economy doing well.
Singaporean PMETs unemployment rate going up.
What is wrong with that?

Singapore Reserves continue to increase
More elderly Singaporeans work as toilet cleaners to survive.
What is wrong with that?

"What's wrong with collecting more money?"
What is wrong with that?

Anonymous said...

2 million foreign talents, GDP up 2%.
Inflation up 2%.
Net growth 0%

Anonymous said...

"What's wrong with collecting more money?"

Collect whose money?
Collect more money from Singaporeans?
Collect more money from tourists?
Collect more money from rich people?

Collect more money from who?

Anonymous said...

High profits does not mean high share price mah.
High salaries does not mean high performance mah.

Who in Singapore are paid high salaries?
Are we getting the high performance we deserve?

Ⓜatilah $ingapura⚠️ said...

@ RB:

>> Who is saying banks cannot make big profits like the casinos? <<

Sure they can. These days banks make money from many revenue streams like account fees and the sale of dubious "investment products"...but the main way banks have been making gazillions ever since they came into existence is by LOANING MONEY. Most of the money loaned is not "real" (physical) money. It is just ledger entries into the banks asset column when they credit lenders accounts with the loans.

In fact, the need for "physical money" declines rapidly over time. As we are living in a world where the medium of exchange is FIAT CURRENCY, in a FRACTIONAL RESERVE banking mechanism, banks actually don't need your fucking deposits, because they can loan out much more than they have on deposit...and they are allowed to do this BY LAW.

Suppose you work hard and save, and place your precious $100 in the bank for "safe keeping" or worst still "investment"---hoping to make interest income of say 0.5-1.5% (50¢ to $1.5)...which the bank begrudgingly has to pay you.

The Shylock motherfuckers then lend out multiples of your hard-earned money---perhaps 8 or 10 times. Let's say 10x, that's $1000 and they'll earn 2-12++% interest depending on what loans they make. Credit cards are big earners at over 12%, personal loans around 5%. The bank pays you $1.50, and earns around $50 or more, so FUCK YOU!😜 Go back to break your back some more, shit blood and be sleep deprived to get more money to "save". 😂

Hard working motherfuckers are always struggling to get out of debt, or live very frugally so as not to rack up debt. The joke is on them (us, me--over 25 years debt free...I just paying interest), because we live in a global economy fueled by DEBT as the main "asset". Now you know why the Forex and Bond markets are THE BIGGEST markets, and if you go to any city, the BANKS and INSURANCE COMPANIES own the biggest buildings, and LOTS of them.

Banks "create" most of the money flying around out there in the economy. It's all anchored in DEBT! (What could possibly go wrong?)

>> DBS is doing very well, very good company, top bank in Singapore, Batam and Bintan, oops I mean in the Asia and the world. Why is the price falling like a coconut? <<

Many possible reasons, and they all act in tandem in a complex manner. In general, stock prices are in a downward trend anyway. I'll offer my favourite gasak-buta one: because "record profits" probably correlate with "record loans", how many of those loans (assets to the bank) are in serious trouble with the distinct possibility of DEFAULT?

I would say many. Sit back and enjoy the show!

Veritas said...

In such market condition when everyone else is losing their pants including DB, Citi, Standchart, my hair stand up when I heard this FT Indian helmed bank is making so much monies.

Every top financial institution infested by Indians go bankrupt, including Citi, DB and Standchart.

Not too long ago, Olam, a Indian commodity trader go broke and Chinese majority Singapore GiC bail them out.

THis is happen in DBS.

We are gonna be a poor country.

Anonymous said...

Waiting for the Show to start
soon after the Trailers.
Remisier Rb worries not, MS
is making his piles in Sin. Rb
may like to take a leave or two
from MS.

Ⓜatilah $ingapura⚠️ said...

@ hopeful, 1204:

>> MS is making his piles in Sin <<

I wish..;-) My upside is I live real cheap, have no debt. If you really want to be rich, you need to have access to OSM (other suckers' money), then be ruthless and work hard and smart... or just become a member of LHL's cabinet...Me? I like to relac far too much :-)

Anonymous said...

The easiest way to get money from the bank is to have an insider to offer you loan with fake collaterals or guarantees. Take the money and then report business goes bust and walk away with the cash, and then split between the two of you.

When you have foreigners running your banks and have a lot of connections to lend this kind of money to, be warned, you can be robbed without you knowing. And they could even pay their fathers, mothers, uncles, aunties, cousins, neighbours etc etc with the banks money and share among themselves, everyone getting rich at the banks' expense.

Be careful when you have daft in charge and very clever people working for the daft.

Ⓜatilah $ingapura⚠️ said...

@ 140:

>> The easiest way to get money from the bank is to have an insider to offer you loan with fake collaterals or guarantees. Take the money and then report business goes bust and walk away with the cash, and then split between the two of you. <<

Wah piang eh. Do you think you're the first person in history to dream up such a scam?!?

Why don't you try and see if this works? 😹

Tip for the day: Banks are the most kiasu organisations. They don't become bloody rich from being stupid.

Anonymous said...

When you allowed third world people to take charge of your banks, when fakes and cheats are all over you, you dummies will be screwed and sucked dry and still sleeping. This is especially true in first world countries when they think everyone is honest and would not cheat. And even more true for Spore when everyone thinks the other is a priest or a monk or a reverend and will not cheat.

See what happened to citi, Deutsche, Stanchart, HSBC and many western banks.

Anonymous said...

This stupid man thinks he is dealing with daft Sinkies, do not know how to cheat, only got cheated by hungry anything goes foreigners. So many lost millions to scams. Dealing with hungry foreigners when cheating is in their culture is a different ball game.

Anonymous said...

Yes it is that simple if foreigners are all over the place. If Singaporeans, you can be very sure it would not happen. The Singaporeans forgot how to cheat and never know there is something called cheating.

Anonymous said...

Singaporeans so honest
and innocent???
No wonder they got manipulated,
exploited and scammed
by their Elite Fellow Countrymen
all the Time

Anonymous said...

That is exactly what I am saying. Singaporeans are as good as unthinking robots. You tell them they are stupid they will say yes I am stupid. You tell them you are a super talent and show tell a fake certificate they will believe you. They don't have a brain, just a microchip in the head to be programmed to do what you want them to do, not to think.

Anonymous said...

Yes, "worst case scenarios," like what Sweden's Foreign Minister Margot Wallström described last October when she said "most people feel that we cannot maintain a system where perhaps 190,000 people will arrive every year – in the long run, our system will collapse."
Can Singapore succeed in taking 190,000 new people every year as citizens;
when Sweden say they cannot?


Anonymous said...

last checked......DBS fell another S$0.05 today............

fear not fear not fear not.........

is like that lah.........

very very very confident that DBS will.....................


Anonymous said...

Noble prize quotation."trouble starts frm digging.."

Anonymous said...

Who do you think is running Noble to the ground?

Anonymous said...

In the beginning all the local banks like OCBC, UOB, OUB, TAT LEE BANK, POSB, LEE WAH BANK,DBS,SZE HAI TONG OR FOUR SEAS BANK,Bank Of SINGAPORE and CHUNG KIAU BANK were founded by Singaporeans with hundred percent local capital. They were for decades well run by Singaporeans who set up excellent banking systems and build up strong goodwill, contacts and connections throughout the region and China. In fact DBS was the latest in the line of local banks when it was founded by Doctor Goh Keng Swee in the late 1960s. Soon some clever upstart in the government suggested local banks to merge for economy of scale. Chung Kiau Bank and Lee Wah Bank was merged with UOB. Sze Hai Tong Bank, Tat Lee Bank and Bank of Singapore merged with OCBC. DBS took over POSB for a song without any tender. DBS was trying to take over OUB too but fortunately UOB beat it to a gun and OUB was eventually merged with UOB. Before long sometimes in the late 1980s or early 1990s the government replaced the local CEO of DBS with an American. The moment this American CEO took over the running of DBS he played havoc with POSB after acquiring it at the expense of ten of thousands of Singaporean depositors. He closed down countless number of POSB outlets throughout the island causing great inconvenience to depositors.It soon followed that one after another CEO of DBS was reserved for foreign talent. The latest is this Pyush Gupta. Gupta and all previous DBS CEOs were paid ten to twelve millions annually for their so called talent. The point is that, what have they contributed to the development and profit of DBS. The bank has for decades been well run by local bankers and citizens and has been highly profitable. The set up, the system , the connection and contacts have all been in place and all the various sections and departments of the bank have been well taken care of and managed by Singaporeans. Why suddenly the need to recruit a foreigner to be the CEO of DBS and to pay him wasteful money of millions annually. It will not be wrong to say that since the bank has all the time been so well set up and managed by Singaporeans that even if the CEO is not there or on long term leave the bank will still be in good shape and profitable.Or is it just putting a foreigner there will give a better image. Isn't it just self delusion. I guarantee you that if a blind man is put on the seat as CEO the bank will still run smoothly and profitably. I really want to know what high performance and new business Gupta has done for DBS to deserve the millions he is taking away from Singaporeans. All I know is that I gain hear that he has brought in many of his countrymen to work in DBS at the expense and disadvantage of blue Singaporeans.
Anti-Foreign Trash

Anonymous said...

Singapore is in the good hands of incompetents and foreigners.