THESE are not the best of times for banks, but DBS Group Holdings can at least claim that it has emerged as the most resilient of the three local players this week.

On many criteria - from share price to valuation - it held up best when all three filed their first-quarter results.

While they all delivered numbers largely in line with forecasts, their shares, which had enjoyed a fortnight of relative calm, were bruised after a rally ended on Tuesday.

Investors, unnerved over how banks would fare amid a period of slow economic growth, pocketed profits.

While DBS shares fell 1.28 per cent for the week, they came off relatively lightly compared with OCBC Bank - down 1.89 per cent - and United Overseas Bank (UOB), which retreated 3.47 per cent.

DBS, which posted a smaller-than-expected 2 per cent drop in earnings to $603 million, closed unchanged yesterday at $19.98.

Two analysts singled out the bank for a thumbs up, with research reports maintaining ‘buy’ calls, while downgrading UOB and OCBC to a ‘neutral’ from a ‘buy’ on concerns over easing loan demand.

‘We believe the market has been cautious towards DBS, as it is the prime casualty of falling rates and also because of concerns over the performance of its large Treasury division in these tough markets,’ said UBS analyst Jaj Singh in a report yesterday.

‘We believe the lower rates are fully priced in, and that there is scope for improvement with loan spreads widening, while an improvement in capital markets in recent weeks suggests the worst is over for Treasury earnings.’ 

Citigroup analyst Robert Kong also tipped DBS as the most promising of the banks. He said that while last year’s 25 per cent loan growth was unlikely to happen again, there were indications that double-digit loan growth would be achieved this year, and there was still room to improve margins.

Valuations of DBS also seem more attractive. According to UBS, DBS is trading at 12.5 times its 2008 earnings. This is low compared with 14.7 for UOB and 15.3 for OCBC.

Its share price is down 3.96 per cent this year, while OCBC is up 6.39 per cent and UOB has gained 2.31 per cent.

This indicated an upside potential for DBS, but UBS cautioned that such a potential for banking stocks was limited.

It said a higher valuation premium would require earnings forecast upgrades or a dramatic improvement in the global economy, neither of which was likely to happen in the near term.

Source : Straits Times - 10 May 2008

I REFER to yesterday’s article, ‘Two more slow quarters for OCBC ahead, says CEO’.

Our CEO, Mr David Conner, was responding to a journalist’s request for his views on how long the downturn in the US economy would last.

Mr Conner’s reply was that the US had experienced two quarters of fairly low growth and it was certainly possible this could continue for another two quarters.

The headline gives the misleading impression that Mr Conner was referring to the outlook for OCBC Bank.

Koh Ching Ching (Ms)
Head Group Corporate Communications, OCBC Bank

Source : Straits Times - 9 May 2008

DOGGED by a multitude of problems stemming from the sub-prime mortgage crisis in the US, banks here are not having it easy. Nor will it become easier as the year progresses. Last year saw them dogged by writedowns on their holdings in collateralised debt obligations (CDOs). Yes, they suffered from provisions made on their CDO holdings; but no, the crisis did not bring them to the point of near-collapse, as it did some of their European and US counterparts.

Investors focused on how much writedowns the local banks had, largely ignoring the other positive parts of the bank’s earnings such as their tremendous loans growth and strong fee income. The CDO issue has largely been laid to rest, but banks aren’t out of the woods yet. They still have to contend with the fallout from the sub-prime turmoil in the financial markets in terms of widening credit spreads, high inflation, slower growth and compression of their interest margins.

A proxy for the local economy, banks have been pummelled on several fronts - by the volatility in global financial markets and a softening property market. Collectively, their Q1 earnings dipped from a year ago as all three banks suffered marked-to-market losses on their investment portfolio. And even though net interest income - or profits from loans - are still holding up, the banks have warned that the over 20 per cent growth in loans seen in the preceding quarters will not continue.

Loans growth will be moderated in the coming year, and OCBC Bank CEO David Conner even noted that industry loans growth is likely to come in at the ‘low double-digit range’.

So are banking stocks worth a buy now? With no clear profit drivers and a US recession looming in the background (and what shocks that may produce for the domestic economy), the market generally has a ‘hold’ call on the banks.

Operationally, a mixed set of results makes it difficult to pin down bright spots in revenue. On the one hand, a surprising jump in interest margins means banks are earning more on their loans. That, however, will be mitigated by the lower trading and investment income, as well as lower wealth management sales, as customers shy away from buying investment products.

Net interest income will be adversely affected amid continued swings in the markets. Analysts have also pointed to higher impairment charges on loans - a function of swelling loan books and economic activity - in the coming quarters, which will take a toll on the banks’ bottom lines. Add to that mix burgeoning expenses from rising inflation, ballooning staff costs and rentals for their premises, and you have a recipe for little profit growth.

Judging from how revenue is coming under pressure, grand plans for regional expansion through mergers and acquisitions might have to take a back seat, as the local banks deal with problems on the home turf first. With Singapore accounting for the lion’s share of the banks’ profits, fixing domestic leaks would take priority over overseas pursuits.

The banking heads, though honest about the challenges ahead, are quick to point out that opportunities still abound in Singapore and the Asian region. They point to the upcoming integrated resorts, the Formula One race in September, and the still red-hot economies of China and India. But with banks so inextricably linked to the fortunes of the economy,  which is heavily affected by what happens in the US, it is fair to expect fewer reasons for cheer when the next earnings season rolls around.

Source : Business Times - 9 May 2008

Trading losses drag down income, but earnings still better than expected

DBS Group’s first-quarter net profit dipped 2 per cent to $603 million from a year earlier, dragged down by trading losses amid financial market volatility, the bank said yesterday.

The lower net profit for the quarter was still better than analysts had expected. Net interest income - from the bank’s main lending business - rose 9 per cent to $1.06 billion from a year earlier, mainly due to strong growth in loans over the year, which helped offset narrower interest margins or the profit earned on loans.

Ms Wong: Loans growth this year is unlikely to match last year’s exceptional expansion, but should continue at a double-digit pace, given Q1’s strong growth — JOHN HENG

The group recorded a net trading loss of $161 million, including an $86 million loss announced in February from liquidating assets held in a special purpose vehicle, Red Orchid Secured Assets.

But overall non-interest income was supported by gains from financial investments, including $53 million from DBS’s stake in payment card firm Visa which listed in March.

Still, its non-interest income of $506 million was 11 per cent down from a year earlier.

Six analysts polled by Reuters had predicted an average net profit for DBS of $566 million, while the median estimate of six analysts surveyed by Bloomberg was $572.5 million.

Compared with Q4 last year, net profit was up 23 per cent, net interest income was flat as interest margins shrank slightly despite customer loans growth, and non-interest income rose 7 per cent.

Basic earnings per share for the quarter were 39.5 cents - against 40.75 cents a year earlier and 35.5 cents in the preceding quarter.

The group declared an interim tax-exempt dividend of 20 cents a share for the quarter. Its share price ended 1.1 per cent lower at $20.28 yesterday.

Chief financial officer Jeanette Wong said the bank will continue to manage pressures from low interest rates in Singapore by repricing its deposits and loans.

‘Credit spreads are improving for new corporate loans although the existing loan book may take a few quarters to be fully repriced,’ she said.

Net customer loans reached $114.2 billion at the end of March, up 21 per cent from a year earlier and 5 per cent higher than at end-December.

Loans growth this year is unlikely to match last year’s ‘exceptional’ expansion, but should continue at a double-digit pace given the strong growth in the first quarter and the existing pipeline of loans, Ms Wong said.

‘While this quarter’s growth was broad-based across industries and the region, the strongest growth was in Singapore corporate borrowing.

‘We continue to see a healthy pipeline in loan demand from our customers.’

Non-performing loans (NPLs) fell 15 per cent from a year earlier but rose 2 per cent from the previous quarter to $1.19 billion due to the larger loan base, DBS said. The proportion of NPLs in the bank’s loan book fell to one per cent, from 1.5 per cent a year ago and 1.1 per cent in the previous quarter.

Asked if provisions for bad loans could rise in the coming months if borrowers are hurt by slowing economic growth and financial market turbulence, Ms Wong said: ‘We are always very watchful of potential systemic risks. But so far, what we have not seen are things that would worry us.’

Still, she said, the bank is ‘keeping an eye’ on its loans to small and medium-size businesses ‘to make sure that if there is a downturn in the economy here in Asia, none of them goes through unnecessary stress’.

Source : Business Times - 8 May 2008

THE volatility in the financial markets has taken its toll on local bank earnings, with OCBC Bank yesterday reporting a 4 per cent drop in first-quarter net profit to $622 million despite higher divestment gains. The earnings beat analysts’ expectations, however.

OCBC’s results for the three months to March 31 were hit by a plunge in life assurance profits from its subsidiary Great Eastern Holding, as well as mark-to-market trading losses and lower realised gains on investment securities. For the corresponding quarter last year, OCBC’s net profit was $647 million.

Basic earnings per share, including divestment gains and tax refunds, was 20.1 cents, down from 21 cents.

A boost for OCBC for the quarter came from a net $156 million gain from divestment of shares in The Straits Trading Company - against net divestment gains of $90 million in the year-ago period. This helped to offset a $41 million fall in tax refund to $6 million. Stripped of divestment gains and tax refund, core net profit was 10 per cent lower at $460 million compared to the year before. But on a sequential basis, the core net profit was 8 per cent higher than the preceding quarter’s $425 million.

The quarter’s net profit of $622 million beat the $570 million median estimate of seven analysts surveyed by Bloomberg News.

As for writedowns relating to collateralised debt obligations (CDOs), OCBC said its ABS (asset-backed securities) CDO investment portfolio did not require further allowances this quarter. ‘The CDO problem is behind us,’ said CEO David Conner at a press briefing yesterday. The bank’s CDO investments of $250 million had already been written down by 85 per cent last year. Additionally, their corporate CDO investment portfolio of $344 million ‘continues to perform’, it said, despite the quarter’s mark-to-market losses of $16 million for the underlying credit default swaps, which impacted non-interest income.

Operationally, it was a mixed bag as the bank saw growth in its core businesses of net interest income, but a decline in its non-interest income. For the quarter, non-interest income, excluding divestment gains, dropped 26 per cent to $377 million, due to a steep 93 per cent fall in life assurance profits, a key reason being mark-to-market losses for the investments in the non-participating fund.

The bank’s derivatives and securities trading also registered a $65 million net loss. The bank said a boost in fee and commission income - driven by growth in investment banking, wealth management, loan-related and trade-related activities - partly helped prop up non-interest income.

Net interest income - or profit from loans - for the quarter grew 26 per cent from a year ago to $638 million. Customer loans hit $75.4 billion, up 19 per cent year-on-year, led by corporate and small and medium enterprise (SME) lending in Singapore, Malaysia and overseas markets, as well as Singapore housing loans. However, Mr Conner noted that the industry loans growth - which has been in the above 20 per cent range - is expected to come down. ‘It is bound to taper off,’ he said, adding: ‘It will come down to a low double-digit range.’

The increase in the bank’s loans was mainly to the building and construction, housing, and transport sectors. Interest margins improved from 2.04 per cent a year ago to 2.17 per cent as the cost of funds fell faster than its asset yields.

Expenses increased 21 per cent to $426 million, due largely to the bank’s higher salaries and increased headcount. The jump in hirings occurred in the group’s overseas markets, including Malaysia, Indonesia and China. Increased business promotion expenses, volume-related brokerage and processing fees also accounted for the swelling expenses.

Mr Conner was cautious about the future, stating ‘we are on alert given inflationary pressures and the potential for a further deterioration in the global economy’. He added that the bank’s strategy is to pick and choose to lend to industries that are identified to be successful. On the results, he said: ‘Our first-quarter core earnings showed resilience in spite of volatile global financial markets.’

OCBC shares ended 2 cents or 0.2 per cent lower yesterday at $9.

Source : Business Times - 8 May 2008

Bank’s first-quarter net profit falls 4% to $622m, but still beats analysts’ estimates

OCBC Bank has now suffered two straight quarters of sliding profits and may well have to endure more tough times ahead, the bank’s chief executive, Mr David Conner, warned yesterday.

‘We’ve had two quarters of very low growth. Can it happen for two more quarters? Yes,’ Mr Conner told reporters at a briefing for OCBC’s first-quarter results.

Betting on oil, construction: To shore up its finances, OCBC Bank is setting its sights on businesses that are going to be successful despite the difficult times ahead, said chief executive David Conner. These include ‘anything that’s oil-related’ and construction, which is not restricted to developers but extends to ‘guys who move dirt’, he added.

The reason, he said, was the economic slowdown in the United States. ‘It’s probably going to be fairly prolonged, perhaps not too deep, but lasting several quarters,’ said Mr Conner.

Still, OCBC beat expectations with a net profit of $622 million for the first quarter ended March 31, down 4 per cent from a year earlier. The figure included a $156 million one-time gain from the sale of a stake in The Straits Trading Company.

The result easily beat the $570 million median estimate of seven analysts Bloomberg surveyed.

In the first quarter, OCBC incurred losses of $65 million in securities and derivatives trading. Insurance unit Great Eastern Holdings also suffered a 93 per cent drop in life assurance profits to $7 million.

Mr Conner called the massive drop in life assurance profits ‘a very unusual situation’ caused by fast-widening credit spreads that peaked this quarter.

This led to mark-to-market losses for investments in Great Eastern’s non-participating fund, which eroded earnings from impressive loans growth at OCBC.

The bank, South-east Asia’s third-largest lender, saw a 19 per cent rise in loans to corporations and small and medium-sized enterprises, particularly in the building and construction sector.

Mr Conner said that although this figure was ‘very robust, it’s bound to taper off’.

In the future, he said, OCBC would ‘pick and choose to lend to the industry and the players within each industry that we think are going to be successful, even if there are difficult times ahead’.

These include ‘anything that’s oil-related’ and construction, which is not restricted to developers but extends to ‘guys who move dirt’, he added.

OCBC is also prepared to offer loans to homebuyers on residual deferred payment purchases, even though the popular scheme was scrapped in October last year, leaving buyers of uncompleted homes to make progressive payments rather than delaying the bulk of their payments.

‘I don’t think real estate has collapsed, nor do I think it will collapse,’ said Mr Conner.

He added: ‘Rental demand is so strong, and the reality is, most people who purchased on deferred payments will take delivery, and there will be financing opportunities for us.’

Volatile financial markets resulted in a fall in overall non-interest income by 26 per cent to $377 million.

Net interest income grew 26 per cent to $638 million in the first quarter. Net interest margin rose to 2.17 per cent, up from 2.03 per cent in the corresponding period last year.

Annualised earnings per share for the first quarter fell to 58.7 cents from 66 cents a year ago.

OCBC said the value of its collateralised debt obligation (CDO) portfolio of $250 million as at March 31, which had been written down by 85 per cent last year, did not require further allowances in the first quarter.

However, non-interest income was hit by a $16 million mark-to- market loss on its corporate CDO investment portfolio.

Source : Straits Times - 8 May 2008

Two Singapore banks on Wednesday reported falls in first-quarter net profit as trading activities took a hit from global financial turmoil.

DBS Group, Southeast Asia’s biggest bank, said its net profit in the first quarter ended March 31 dipped 2.0 percent to S$603 million (US$446 million) compared with the previous year.

Singapore’s smallest bank, Oversea-Chinese Banking Corp (OCBC), reported a four percent fall in net profit to S$622 million for the first quarter.

DBS said its revenue totalled S$1.56 billion, up 1.0 percent from the same period last year, but it reported a trading loss of S$161 million, compared with a S$171-million net profit the year before, amid a global credit crunch triggered by a crisis in the US housing market.

Income from fees rose 14 percent over the previous year, but was down 7.0 percent from the preceding quarter “due to weaker capital market activities such as wealth management, investment banking and stockbroking,” added DBS, which has operations in 16 Asian markets including Hong Kong.

“The results were not bad,” David Lum, an analyst at Daiwa Institute of Research, said of DBS.

OCBC said its net interest income rose by 26 percent to S$638 million, boosted by loan volumes and improved interest margins.

“However, volatile financial markets resulted in overall non-interest income falling by 26 percent” to S$377 million, OCBC said, citing a decline in life assurance profits and losses in securities and derivatives trading along with lower gains on investment securities.

“The first quarter 2008 loss included a S$16 million mark-to-market loss on credit default swaps related to the bank’s corporate CDO investments,” it said, referring to collateralised debt obligations.

Despite the S$16-million loss, the bank’s corporate CDO investment portfolio of S$344 million continues to perform, it said.

OCBC added that its asset-backed securities CDO portfolio of S$250 million, written down by 85 percent in 2007, did not require further allowances in the first quarter.

CDOs are securities backed by a range of assets including bonds, loans and their derivatives, including corporate loans, high-grade mortgages, sub-prime mortgages, car loans and credit card debt.

World financial markets have been battered since last August by fallout from a crisis in the US sub-prime, or high-risk, loan sector which forced commercial banks to tighten lending criteria leading to a credit crunch which spread to threaten the global economy.

Banks around the world suffered multi-billion-dollar losses linked to sub-prime loans given to US homebuyers with risky credit histories.

DBS Group chairman Koh Boon Hwee said his bank remains financially strong and well-capitalised.

DBS has a relatively small exposure to the sub-prime sector. It had S$259 million in asset-backed CDOs, and said it has set aside provisions for about 90 percent of that amount.

“We don’t expect any further provision charges for CDOs to be significant in the coming quarters,” said chief financial officer Jeannette Wong, adding total CDO exposure fell to S$1.44 billion from S$1.5 billion in the fourth quarter.

Both the DBS and OCBC profit figures beat analysts’ forecasts but UOB came in below market expectations.

On Tuesday United Overseas Bank Group (UOB) said its net profit in the first quarter rose an annual 2.1 percent to S$529 million, boosted by loan growth.

UOB said its investment in CDOs declined further to S$268 million, including S$82 million in asset-backed securities, while impairment charges increased by 1.8 percent to S$89 million, largely attributed to provision for CDOs.

The bank said it has fully provided for its asset-backed securities CDOs.

Lum said the banks face a scarcity of growth sources given a risk-averse investment environment. - AFP/ac

Source : Channel NewsAsia - 7 May 2008

Singapore’s Oversea-Chinese Banking Corp (OCBC), Southeast Asia’s third-largest lender, posted a lower-than-expected 4 per cent fall in first-quarter profit and said it saw growth opportunities in its core markets.

OCBC’s earnings reflected strong loan growth in Singapore during the first three months of 2008 thanks to a construction boom in the republic. But its profit was down from a year ago due to sharply lower earnings at its insurance arm.

Core earnings, which exclude one-time gains from the divestment of assets and tax refunds, fell 10 per cent to $460 million

‘Our first quarter core earnings showed resilience in spite of volatile global financial markets. We continue to see growth opportunities in our major markets for the remainder of 2008,’ chief executive David Conner said in a statement.

OCBC, whose main operations are in Singapore and Malaysia, earned $622 million (US$458 million) in the three months ended March, compared with $647 million a year earlier.

Its net profit beat the $456 million average estimate of six analysts polled by Reuters as it booked a gain of $156 million from the sale of shares in commodities and property firm Straits Trading .

Core earnings, which exclude one-time gains from the divestment of non-core assets and tax refunds, fell 10 per cent to $460 million from $510 million in January-March 2007.

The bank’s net interest income rose 26 per cent from a year ago to $638 million, while its loan margin increased to 2.17 per cent from 2.14 per cent at the end of December.

But non-interest income, which includes commissions and fees, fell 26 per cent to $377 million, the bank said.

‘Strong growth in net interest income, fee income and foreign exchange income were offset by a significant decline in life assurance profits from Great Eastern Holdings,’ OCBC said.

Great Eastern - the largest life insurer in Singapore and Malaysia - reported on Tuesday a 67 per cent fall in net profit to $45 million partly due to marked-to-market losses on its investments. OCBC owns around 87 per cent of Great Eastern.

OCBC’s first quarter 2007 net profit was partly boosted by a divestment gain of $90 million from the sale of an office property, and a tax refund of $47 million.

OCBC shares fell 3.1 per cent in morning trade ahead of its results, which were released during the midday market break.

The broader market was off 1.2 per cent.

OCBC shares fell 2.3 per cent in the first quarter this year, compared with a 3.8 per cent decline for larger rivals UOB and a 13 per cent drop for DBS, Singapore’s biggest bank by assets. — REUTERS

Source : Business Times - 7 May 2008

DBS Group, South-east Asia’s biggest bank by assets, posted a smaller-than-expected two per cent drop in quarterly profit after strong loan growth helped to ease credit-related writedowns.

Analysts warned that more difficulties lie ahead in the second half when a looming United States recession catches up with Asia’s robust economies, putting a brake on earnings momentum.

DBS took a previously announced $86 million (US$63.33 million) of writedowns in the first quarter on complex derivatives exposed to risky debt, which pushed its trading income into the red

‘It’s all driven by the macro environment for DBS,’ said Mr Matthew Wilson, an analyst at Morgan Stanley. ‘I’m cautious on the United States because a recession there will affect Singapore.’ Mr Wilson warned the booming Singapore property market, which had boosted loan growth for the lender, was also peaking.

Most analysts expect Singapore’s loan growth to slow to 12 to 13 per cent this year after it expanded by 20 per cent in 2007.

DBS earned January-March net profit of $603 million, down from $617 million a year ago. Analysts had predicted net profit of $566 million, according to an average forecast from six analysts polled by Reuters.

DBS shares were almost flat at $20.50 at 9.25am Singapore time after rising to a 2008 high of $20.80.

The result on Wednesday came after United Overseas Bank, Singapore’s second-biggest bank, posted a 2.1 per cent rise in quarterly profit, broadly in line with market forecasts, but warned that loan growth could slow this year. Smaller rival Oversea-Chinese Banking Corp (OCBC) reports later on Wednesday.

Writedown, Visa gain

DBS, in which state investor Temasek has a 28 per cent stake, took a previously announced $86 million of writedowns in the first quarter on complex derivatives exposed to risky debt, which pushed its trading income into the red.

But the writedown was much lower than last year when it wrote down $270 million on structured instruments, the bulk in the fourth quarter, including debt exposed to the collapsing US sub-prime mortgage market.

Asian banks, including DBS, have been spared from the worst of the sub-prime-related losses that have hit global peers such as UBS, Bear Stearns and Merrill Lynch.

However a nine per cent rise in interest income, boosted by 21 per cent growth in loans, and an unexpected $53 million gain from its investment in Visa’s initial public offering, limited the losses.

January-March fee income rose 14 per cent from a year earlier, but fell seven per cent from the previous quarter.

Stockbroking fees dropped six per cent amid volatile markets, while wealth management services fees declined 15 per cent.

Former Citibanker Richard Stanley, who took charge as DBS’s new chief executive last week, will brief the media and analysts for the first time later on Wednesday.

Analysts are looking for hints on how Mr Stanley plans to grow the bank’s Asian business beyond its core markets of Singapore and Hong Kong, from where it derives about 90 per cent of its earnings.

Chairman Koh Boon Hwee said DBS would continue to grow its customer franchise and increase business volumes as it seeks expansion in Vietnam, India and Taiwan.

DBS shares dropped 13 per cent in the first quarter, underperforming its rivals. UOB dropped 3.8 per cent and third-ranked OCBC fell 2.3 per cent.

DBS declared a dividend of $0.20 per share, similar to the previous quarter. — REUTERS

Source : Business Times - 7 May 2008

FOR many investors, United Overseas Bank’s (UOB’s) first-quarter results yesterday provided further proof that the worst effects of the global credit crunch might be over for Singapore banks.

On one hand, UOB’s first-quarter earnings of $529 million disappointed analysts, who had estimated that it would report a profit of as much as $538.5 million.

On the other hand, there was widespread relief among traders that its latest write-down of $43 million meant UOB had now made full provisions for holdings of collateralised debt obligations.

These are the financial derivatives linked to the United States sub-prime crisis, which burnt a big hole in the balance sheets of many global banks.

This has also raised hopes that the two other local banks - DBS Group Holdings and OCBC Bank - will paint the same positive picture when they report their own first- quarter results today.

And the ground could not have been sweeter for Singapore banks too, as their businesses continue to expand on the domestic market.

In a report on Monday, UOB Kay Hian noted that borrowings in the building and construction sector had jumped sharply, following loans to Marina Bay Sands and Resort World at Sentosa.

Local banks would also benefit from a huge demand for loans, as infrastructural projects such as the Downtown MRT Line and Marina Coastal Expressway projects get under way.

Unlike foreign banks, which have to rely on the interbank market for funding, local banks enjoy another advantage - cheaper funding from the huge deposit bases that retail customers maintain with them.

For those daunted by the big outlay needed to buy bank shares, one way to gain exposure is to buy covered warrants. These instruments give them the option to buy the counter at a pre-determined level, known as the strike price, over a period of three to six months.

For UOB, Deutsche Bank has a call with a strike price of $21.30 that expires in September.

For exposure to DBS, the bank has a call with a strike price of $19.50 expiring in October.

Source : Straits Times - 7 May 2008