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<TABLE cellSpacing=0 cellPadding=0 width=452 border=0><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published April 9, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>AGM WATCH
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>DBS' Koh Boon Hwee takes it all in stride
By SIOW LI SEN
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DBS Group Holdings' annual general meeting yesterday saw a turnout of more than 300 shareholders. The almost two-hour session saw wide-ranging questions, with good-natured DBS chairman Koh Boon Hwee taking them all in stride. One well- meaning shareholder even offered to give up his cash dividend - to help the Singapore banking group conserve cash amid the global economic crisis.
The meeting heard from Mr Koh that chief executive Richard Stanley's illness is serious with its ups and downs. But Mr Stanley, who has been on medical leave since January when he was diagnosed with leukaemia, is responding well to treatment, said Mr Koh.
He revealed that Mr Stanley's almost $5 million pay for eight months of work in 2008 is 'quite normal' and guaranteed for first-year pay. Mr Stanley joined the bank last May.
The chairman reassured shareholders that the bank's senior management work well as a team and 'key decisions are still made everyday without missing a beat'.
=> Then why the need to keep a $5M-for-8-Mth Jiat Liao Bee? Recall that NEA running dog who boasted that he could go for French cooking classes cos his department didn't need him to be around?
Many quizzed him about the bank's lending policies, its higher provisions and its non-performing loans (NPL).
Others wanted to know if the bank has any more toxic assets not disclosed.
What about the jump in NPL to 1.5 per cent from 1.1 per cent and why have specific provisions for losses in Hong Kong soared over 100 per cent, was one question.
Shareholder Ramesh Sheth asked the bank to be careful in making loans.
'The provisions are within our expectations and normal in this part of the credit cycle,' said Mr Koh. 'We are prepared that NPL and specific provisions will rise as the economy is stressed,' he said, adding that, overall, Hong Kong still remains profitable.
Another had a long exchange with Mr Koh on its collateralised debt/loan obligations (CDO/CLO). He asked Mr Koh to explain CLO and whether there would be further defaults.
Mr Koh replied: 'You take a bunch of loans and bundle them into one package and sell to DBS - it's called CLO.' They are the same as other loans, he said - some will default. DBS has made a 30 per cent provision against its CLO portfolio, he said.
=> Cost to pass on to Sporns?
DBS's total exposure at end-2008 to CDO/CLO was $1.3 billion and allowances came to $459 million.
'What future toxic assets in the bank are (not) inside the book?' asked one shareholder.
'Nothing inside our book which is not on page 36,' said Mr Koh. DBS's CDO/CLO disclosures are on that page of its annual report.
'I don't think you answered my question,' the shareholder retorted. 'I don't think you understood my answer,' was the rejoinder.
Mr Koh repeated several times that 'we have no other CDO or CLO other than those put on page 36'.
=> Chao kuan?
And more than once, Mr Koh said the only way to avoid bad loans is to get out of the lending business in its entirety.
=> Ah, just like Lemon Limp twisting the Peasants' request for lower fares as wanting free rides and threatening hiking GST! Fark the PAPee dogs!
Some shareholders asked for higher dividends while others were confused about the bank's new share dividend scrip scheme, which was voted in at the end of the meeting.
'Basically, it's to give the bank more flexibility in managing its capital requirement,' said Mr Koh. But he assured shareholders that, by default, they will receive cash if they do not opt for the scrip scheme.
Shareholder Stephen Chen suggested that DBS turn all of its $1.2 billion dividend for 2008 into scrip to help the company conserve cash.
A shareholder noted that DBS directors who sit on over 100 boards 'must be supermen'. DBS director Christopher Cheng sits on 152 boards.
'There are many different kinds of businesses,' said Mr Koh. 'If you happen to be in the property business, it's normal for every property to be held in a different shell company.
'I assure you that DBS receives the lion's share of the attention of every director who sits up here,' the chairman added.
</TD></TR></TBODY></TABLE>
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>AGM WATCH
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>DBS' Koh Boon Hwee takes it all in stride
By SIOW LI SEN
<TABLE class=storyLinks cellSpacing=4 cellPadding=1 width=136 align=right border=0><TBODY><TR class=font10><TD align=right width=20>
</TD><TD>Email this article</TD></TR><TR class=font10><TD align=right width=20></TD><TD>Print article </TD></TR><TR class=font10><TD align=right width=20></TD><TD>Feedback</TD></TR></TBODY></TABLE>DBS Group Holdings' annual general meeting yesterday saw a turnout of more than 300 shareholders. The almost two-hour session saw wide-ranging questions, with good-natured DBS chairman Koh Boon Hwee taking them all in stride. One well- meaning shareholder even offered to give up his cash dividend - to help the Singapore banking group conserve cash amid the global economic crisis.
The meeting heard from Mr Koh that chief executive Richard Stanley's illness is serious with its ups and downs. But Mr Stanley, who has been on medical leave since January when he was diagnosed with leukaemia, is responding well to treatment, said Mr Koh.
He revealed that Mr Stanley's almost $5 million pay for eight months of work in 2008 is 'quite normal' and guaranteed for first-year pay. Mr Stanley joined the bank last May.
The chairman reassured shareholders that the bank's senior management work well as a team and 'key decisions are still made everyday without missing a beat'.
=> Then why the need to keep a $5M-for-8-Mth Jiat Liao Bee? Recall that NEA running dog who boasted that he could go for French cooking classes cos his department didn't need him to be around?
Many quizzed him about the bank's lending policies, its higher provisions and its non-performing loans (NPL).
Others wanted to know if the bank has any more toxic assets not disclosed.
What about the jump in NPL to 1.5 per cent from 1.1 per cent and why have specific provisions for losses in Hong Kong soared over 100 per cent, was one question.
Shareholder Ramesh Sheth asked the bank to be careful in making loans.
'The provisions are within our expectations and normal in this part of the credit cycle,' said Mr Koh. 'We are prepared that NPL and specific provisions will rise as the economy is stressed,' he said, adding that, overall, Hong Kong still remains profitable.
Another had a long exchange with Mr Koh on its collateralised debt/loan obligations (CDO/CLO). He asked Mr Koh to explain CLO and whether there would be further defaults.
Mr Koh replied: 'You take a bunch of loans and bundle them into one package and sell to DBS - it's called CLO.' They are the same as other loans, he said - some will default. DBS has made a 30 per cent provision against its CLO portfolio, he said.
=> Cost to pass on to Sporns?
DBS's total exposure at end-2008 to CDO/CLO was $1.3 billion and allowances came to $459 million.
'What future toxic assets in the bank are (not) inside the book?' asked one shareholder.
'Nothing inside our book which is not on page 36,' said Mr Koh. DBS's CDO/CLO disclosures are on that page of its annual report.
'I don't think you answered my question,' the shareholder retorted. 'I don't think you understood my answer,' was the rejoinder.
Mr Koh repeated several times that 'we have no other CDO or CLO other than those put on page 36'.
=> Chao kuan?
And more than once, Mr Koh said the only way to avoid bad loans is to get out of the lending business in its entirety.
=> Ah, just like Lemon Limp twisting the Peasants' request for lower fares as wanting free rides and threatening hiking GST! Fark the PAPee dogs!
Some shareholders asked for higher dividends while others were confused about the bank's new share dividend scrip scheme, which was voted in at the end of the meeting.
'Basically, it's to give the bank more flexibility in managing its capital requirement,' said Mr Koh. But he assured shareholders that, by default, they will receive cash if they do not opt for the scrip scheme.
Shareholder Stephen Chen suggested that DBS turn all of its $1.2 billion dividend for 2008 into scrip to help the company conserve cash.
A shareholder noted that DBS directors who sit on over 100 boards 'must be supermen'. DBS director Christopher Cheng sits on 152 boards.
'There are many different kinds of businesses,' said Mr Koh. 'If you happen to be in the property business, it's normal for every property to be held in a different shell company.
'I assure you that DBS receives the lion's share of the attention of every director who sits up here,' the chairman added.
TALK COCK!
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