Financial Analysis of DBS Bank

The assignment provides an in-depth analysis of the financial performance of DBS Bank, using data from 2012 to 2017. It includes charts and tables showing revenue, EPS, net margin, and return on equity, as well as a peer group comparison with United Overseas Bank Ltd and Oversea Chinese Banking Corporation. The document also references relevant academic studies and provides a comprehensive summary of the financial performance of DBS Bank.

Running head: FINANCE AND PLANNING
FINANCE AND PLANNING
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Author’s Note:

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FINANCE AND PLANNING
Table of Contents
History of Development Bank of DBS............................................................................................2
Financial Performance.....................................................................................................................2

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FINANCE AND PLANNING
History of Development Bank of DBS
Development Bank of Singapore (DBS) is recognized as a multinational bank which has
its headquarter situated Singapore. The bank was established by the authority of the Singapore’s
Government in July 1968. The Development Bank of Singapore has nowadays more than 90
branches which can be found in Singapore. The bank is considered to be the largest bank in
South East Asia considering the assets and among the larger banks in Asia. The company has a
count of total assets of S$ 482 billion as on 31st Dec 2016. The main purpose of the bank is to
provide loans and other financial assistance to different industries in order to help them establish
their business in Singapore. The bank is one of the leading traders in consumer banking, treasury
and market, asset management and brokerage of securities in the Asia as per the 2015 analysis.
DBS banking institutions are leading banks which are into digital banking system and has
established banks in various parts of Asia such as India, Singapore, Hong Kong and other Asian
countries as per the 2016 estimates
Financial Performance
Financial performance of the company refers to the performance of the company on the
basis of financial indicators such as total revenue earned or on the basis of key financial ratios.
In the case of DBS, the financial performance of the business is very good as the bank is
regarded as one of the larger banks of Asia (Ongore and Kusa 2013). The financial performance
of the company is shown in the chart below:

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FINANCE AND PLANNING
Figure 1: (Chart showing Financial performance of DBS)
Source: (Sg.finance.yahoo.com, 2018)
The above charts show a basic summary of the financial performance of the company for
the year 2017. The EPS of the company which is earned during the year 2017 is shown at 1.68.
The overall financial performance of the company can be measured as the cash and cash
balances has increased from the previous year figures (Gitman, Juchau and Flanagan 2015). The
net profit of the company as per the annual reports comparisons have increased by 4% which
shows that the company has been performing well. The market price of the shares has also been
on the rise which shows improvements. On the other hand, the beta of the company is a bit high
which shows that the company is facing certain amount of risks as suggested by the beta which is
1.48. The revenues which is earned by the company has been depicted in the chart below:

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FINANCE AND PLANNING
2017-12 2016-12 2015-12 2014-12 2013-12 2012-12 2011-12
10,380 10,055 10,194
9,149
8,407 8,514
7,631
Revenue SGD Mil
Figure 2: (Chart showing revenue generation of DBS)
Source: (Created by the Author)
The revenue of the company shows that the company have been earning consistent
amount of revenue and the total revenue of the company has increased from the previous year
figures. This shows that the company has operational efficiency and the company is still at its
growing phase as per the analysis of financial reports.
Statement Showing Ratio
Particulars 2017-12 2016-12 2015-12 2014-12 2013-12 2012-12 2011-12
Earnings Per Share SGD 1.69 1.66 1.77 1.61 1.48 1.56 1.26
Net Margin % 42.11 41.65 43.39 43.84 43.68 44.74 43.93
Return on Equity % 9.5 9.86 11.31 11.25 11.13 12.59 10.96
Financial Leverage 10.91 10.8 11.34 11.69 11.74 11.12 11.84

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FINANCE AND PLANNING
2017-12 2016-12 2015-12 2014-12 2013-12 2012-12 2011-12
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
Earnings Per Share SGD
Figure 3: (Chart Showing EPS)
Source: (Created by Author)
2017-12 2016-12 2015-12 2014-12 2013-12 2012-12 2011-12
42.11
41.65
43.39
43.84 43.68
44.74
43.93
Net Margin %
Figure 4: (Chart Showing Net Margin)
Source: (Created by Author)

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FINANCE AND PLANNING
2017-12 2016-12 2015-12 2014-12 2013-12 2012-12 2011-12
0
2
4
6
8
10
12
14
Return on Equity %
Figure 5: (Chart Showing Return on Equity)
Peer Group Analysis
Peer group analysis involves comparison between the close group of companies which
are of similar nature. In other words, companies in such groups have similar characteristics and
also similar interests (Seddig 2014).
Revenues 2017 2016 2015 2014 2013 2012
Development Bank of Signapore 10,380 10,055 10,194 9,149 8,407 8,514
United Overseas Bank Ltd 8123 7468 7376 6822 6291 6019
Oversea Chinese Banking Corporation 8965 7763 8234 7983 6329 7690
Figure 6: (Table showing peer group)
Source: (Created by Authors)

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FINANCE AND PLANNING
2017 2016 2015 2014 2013 2012
0
2,000
4,000
6,000
8,000
10,000
12,000
Total Revenues
Development Bank of Signapore United Overseas Bank Ltd
Oversea Chinese Banking Corporation
Figure 6: (Table showing peer group’s total revenue)
Source: (Created by Authors)
The above table shows the total income of the peer group of which DBS companies
forms a part. The peer group contains DBS, United overseas bank and overseas Chinese banking
corporation.

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Reference
Gitman, L.J., Juchau, R. and Flanagan, J., 2015. Principles of managerial finance. Pearson
Higher Education AU.
Ongore, V.O. and Kusa, G.B., 2013. Determinants of financial performance of commercial banks
in Kenya. International Journal of Economics and Financial Issues, 3(1), p.237.
Seddig, D., 2014. Peer group association, the acceptance of norms and violent behaviour: A
longitudinal analysis of reciprocal effects. European Journal of Criminology, 11(3), pp.319-339.
Sg.finance.yahoo.com. (2018). D05.SI: Summary for DBS - Yahoo Finance. [online] Available
at: https://sg.finance.yahoo.com/quote/D05.SI?p=D05.SI [Accessed 16 Mar. 2018].