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Business Times - 20 Mar 2010
Peter Seah to become DBS chairman in May
He sees good future, with DBS having emerged from financial crisis 'as one of the few well-capitalised banks with a strong balance sheet'
By SIOW LI SEN
(Singapore)
PETER Seah will become DBS Group Holdings' next chairman on May 1, the bank said yesterday, confirming Singapore Inc's worst kept secret.
With a distinguished career in banking behind him, Mr Seah will take over from Koh Boon Hwee who will step down as chairman of South-east Asia's largest bank after its annual shareholder meeting on April 30.
Mr Seah will have his hands full, given shareholders' concern over DBS's lacklustre performance.
Yesterday, shareholders dumped the stock, causing it to fall 46 cents or 3.2 per cent. About 1.5 million DBS shares were sold, accounting for 20 per cent of the day's 5.3 million volume.
A report by The Boston Consulting Group found that DBS's relative total shareholder return (RTSR) was a negative 4.6 per cent over the five-year 2005-2009 period, falling behind its local rivals.
For the same period, OCBC and UOB had a 2.4 per cent and 0.4 per cent RTSR respectively.
An analyst said yesterday's selling in DBS was probably on account of some hedge funds getting active.
Mr Seah's upcoming appointment had been well-flagged, he said. 'I think the market will greet this positively. After all, he has been a banker,' he added.
Mr Seah was the chief executive of Overseas Union Bank before it was acquired in 2001 by United Overseas Bank (UOB). He was appointed to DBS's board last November and it was widely assumed he would become the next chairman.
Mr Koh, who has been chairman of Singapore Airlines and Singapore Telecommunications, joined DBS's board in June 2005 and became chairman on Jan 1, 2006.
Although he was not a banker, Mr Koh stepped up to the plate and steered DBS during a tumultuous time for the global financial industry when its chief executive Richard Stanley suddenly passed away in April last year.
In a statement, Mr Koh said that during his time as chairman, 'we've entrenched its (DBS's) positions in Singapore and Hong Kong, and expanded our presence in China, India, Indonesia and Taiwan.
'DBS has also emerged from the financial crisis in a solid position with strong capital, liquidity and good credit ratings, and is today seen as a worthy competitor in Asian banking,' he said.
Mr Seah said: 'The world has just experienced its worst financial crisis since the Great Depression. However, DBS has emerged as one of the few well-capitalised banks with a strong balance sheet, and this will offer the bank tremendous opportunities in Singapore and the region.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Peter Seah to become DBS chairman in May
He sees good future, with DBS having emerged from financial crisis 'as one of the few well-capitalised banks with a strong balance sheet'
By SIOW LI SEN
(Singapore)
PETER Seah will become DBS Group Holdings' next chairman on May 1, the bank said yesterday, confirming Singapore Inc's worst kept secret.
With a distinguished career in banking behind him, Mr Seah will take over from Koh Boon Hwee who will step down as chairman of South-east Asia's largest bank after its annual shareholder meeting on April 30.
Mr Seah will have his hands full, given shareholders' concern over DBS's lacklustre performance.
Yesterday, shareholders dumped the stock, causing it to fall 46 cents or 3.2 per cent. About 1.5 million DBS shares were sold, accounting for 20 per cent of the day's 5.3 million volume.
A report by The Boston Consulting Group found that DBS's relative total shareholder return (RTSR) was a negative 4.6 per cent over the five-year 2005-2009 period, falling behind its local rivals.
For the same period, OCBC and UOB had a 2.4 per cent and 0.4 per cent RTSR respectively.
An analyst said yesterday's selling in DBS was probably on account of some hedge funds getting active.
Mr Seah's upcoming appointment had been well-flagged, he said. 'I think the market will greet this positively. After all, he has been a banker,' he added.
Mr Seah was the chief executive of Overseas Union Bank before it was acquired in 2001 by United Overseas Bank (UOB). He was appointed to DBS's board last November and it was widely assumed he would become the next chairman.
Mr Koh, who has been chairman of Singapore Airlines and Singapore Telecommunications, joined DBS's board in June 2005 and became chairman on Jan 1, 2006.
Although he was not a banker, Mr Koh stepped up to the plate and steered DBS during a tumultuous time for the global financial industry when its chief executive Richard Stanley suddenly passed away in April last year.
In a statement, Mr Koh said that during his time as chairman, 'we've entrenched its (DBS's) positions in Singapore and Hong Kong, and expanded our presence in China, India, Indonesia and Taiwan.
'DBS has also emerged from the financial crisis in a solid position with strong capital, liquidity and good credit ratings, and is today seen as a worthy competitor in Asian banking,' he said.
Mr Seah said: 'The world has just experienced its worst financial crisis since the Great Depression. However, DBS has emerged as one of the few well-capitalised banks with a strong balance sheet, and this will offer the bank tremendous opportunities in Singapore and the region.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
