Read? Worst Cash Flow From Investment Portfolio of Stocks In SGX Since 2009?
Read? DBS’s Gupta pans banks’ dividend cuts
For his part, Gupta says cutting dividends now is “nonsensical” and “a bit of a red herring”. He notes that years of Basel reforms have left banks with “enormous capital reserves” and a clear protocol: to dip first into buffers, then counter-cyclical buffers, and finally into capital reserves.
If this is a multi-year problem... banks will likely get to the point where they can’t pay dividends. But promising now to not pay them is, to me, illogical - Piyush Gupta, DBS
He points to the number of retirees who own a handful of treasured DBS shares, which they use to leaven their pension pot, noting that eliminating dividends “doesn’t just hit the fat cats but people who just want to supplement their pensions a bit”.
[SINGAPORE] Singapore's DBS Group Holdings set aside S$1.09 billion to cover the impact of the coronavirus pandemic as South-east Asia's biggest lender reported a 29 per cent fall in first-quarter profit to the lowest in 2.5 years.
DBS said provisions for credit losses surged in January-March from S$76 million a year earlier. They were well above an average estimate of S$605 million, according to Refinitiv data.
First-quarter profit fell to S$1.16 billion compared with S$1.65 billion a year earlier, in line with an average estimate of S$1.13 billion from four analysts, according to Refinitiv data.
DBS said it set aside the allowances "to accelerate the build-up of reserves", with two-thirds of the amount kept for general allowances to anticipate a "deeper and more prolonged economic impact from the pandemic." The remainder was for specific allowances, mainly for new exposures recognised as non-performing during the quarter.
DBS, which pays quarterly dividends, retained its proposed dividend of 33 Singapore cents per share for the latest quarter.
CW8888
:-)
With $0.66 (FY 19 + FY 20 Q1) confirmed; it is unlikely that cash flow in 2020 from investment income to be the lowest since 2009
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Uncle8888,
ReplyDeletePrudent & well-capitalised big caps like DBS will survive no prob & emerge stronger after Covid. Such companies will follow the ancient playbook to grab more market share and absorb promising smaller companies when prices are low & the doomers and gloomers abound. 😂
But in the short term, the 6-week uptrend is getting kinda mature. May see bigger volatility as traders prepare mentally for next Friday's US unemployment rate (>20% ??) and trying to estimate how fast can economies re-open & what post-covid commerce will look like.
Annualised US Q3 GDP may be -25% or -30% when reporting in Aug. But this will be priced in way before July ends.
Without visibility on a viable treatment or vaccine, we're just plucking figures from the air. That's what makes this so fun! Kekeke!!
S&P500 now testing 61.8% Fib retracement as well as 200-day MA from below.
On weekly chart, it's testing 40-week EMA & approaching a downward-sloping weekly Bollinger centreline from below. Weekly volumes have been declining over the past 6 weeks as the S&P is rising.
Same as last week, I haven't sold anything but mentally prepared to buy more when/if markets re-test March lows and/or go below it. 😛
Steady!
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