DBS Bank INVESTMENT TABLE OF CONTENTS Executive Summary

BAF1045 INVESTMENT
TABLE OF CONTENT

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Executive Summary...................................................................................................................1
Company Background............................................................................................................1
Evaluation of Company’s History..........................................................................................3
Financial Performance of the company..................................................................................5
Perform ROE of DBS Bank using DuPont ROE approach including peer group comparison
................................................................................................................................................9
Analysing current issues facing by the company in Banking Industry................................16
Explain the impact of the issues on the company’s future earnings.....................................17

TABLE OF FIGURES
Figure 1 Share Prices................................................................................................................1
Figure 2 Shareholders of DBS bank..........................................................................................3
Figure 3 Share Price history......................................................................................................5

EXECUTIVE SUMMARY
Current report will emphasize on portraying the character of DBS Bank in the terms
of its performing and non-performing assets revealed in front of the external users. History of
the company is publicized in this assignment to highlight its ability in coping with various
changes takes places in its business throughout its business tenure.
Financial performance of the bank is measured through DuPont analysis in which
strengths and weaknesses of the company comes in a bigger picture in comparison with its
competitors operating in a similar market.
Financial and non-financial structure of the company is discussed in a report to make
judgments about the increasing or declining performance of the company. Banking
regulations act as a benchmarking tool in evaluating the success or failure of an entity. An
entity operates their business in the presence of several other competitors such as UOB and
OCBC banks.
Company Background
MARKET PROFILE
Figure 1 Share Prices
1

(Source: DBS group holdings Ltd share price history, 2017)
DBS Bank is a renowned company in a Singapore also recognise as ‘The
development bank of Singapore Limited’ is a transnational banking entity. This corporation
deals in offering various kinds of financial services such as personal banking and corporate
banking option to cater all the needs of its customers.
DBS Bank is a public Ltd Company listed under Singapore stock exchange with
SGX: D05 stock index in the banking industry. Entities strive hard to achieve all its goals
before its competitions to overcome the existing market competition in this particular
industry.
DBS Bank UOB OCBC
0
200
400
600
800
1000
1200
Revenue of 2016
Revenue of 2016
Revenue and profit comparison is shown in the above chart of three companies such as DBS,
OCBC and UOB. It reflects the revenue of 2016 is less than DBS Bank.1 This graphic
representation shows the capability of DBS bank in comparison with these two competitors
who are unable to beat this bank.
1 Knight, F. H., (2012). Risk, uncertainty and profit. Courier Corporation.
2

Singapore Malaysia Overseas
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Location of shareholders
Location of
shareholders
Majority of shareholders of DBS belongs to Singapore with around 99.14%, 0.61%
shares held by Malaysian shareholder and least share of 0.25% is held by other shareholders
from all across the world. This line chart also shows the monopoly of the company by
offering its significant shares only to the domestic users instead of giving to the external
users.
Figure 2 Shareholders of DBS bank
(Source: DBS Group Holdings Ltd, 2017)
Evaluation of Company’s History
DBS bank comes into operation in the year 1968 in Marina Bay in Singapore where
headquarter of this entity is located to handle all its banking and financial services
transactions. This bank has set up by the government of Singapore in the year 1968 under the
3