Serious DBS exposure to Swiber at S$700m, expects to recover only half of amount

SOUTH-EAST Asia's largest bank DBS says that it expects to only recover half of the S$700 million it has exposed to the Swiber group of companies.

In a filing to the Singapore Exchange on Thursday night, DBS said that the exposure to Swiber is at about S$700 million, and comprises loans, bonds and off-balance sheet items.

This makes it the first Singaporean bank to disclose its total exposure to the offshore services firm. Swiber announced earlier on Thursday that it has filed an application to place the company under provisional liquidation.

Said DBS: "As the exposure is partially secured, DBS expects to recover half of it and will provide fully for the anticipated shortfall."

"DBS will tap on its surplus general allowances and the net allowance charge will be lower, at about S$150 million," it added.

Swiber's announcement sent shock waves in the oil and gas industry hit by a protracted price slump due to oversupply. The winding-up application will be heard in court on Aug 19.

DBS stated that its balance sheet remains strong, and there is minimal impact on its capital adequacy ratio.

The bank will announce its second quarter results on Aug 8 as scheduled.

DBS's statement on Thursday night follows comments made by UOB and OCBC.

UOB said that it has "some exposure" to the oil and gas contractor which is seeking to wind up its operations.

OCBC alluded that it has no exposure to Swiber.

"We have no borrower who has abandoned operations. This is a good sign. We do not foresee any customers who will abandon ship," said OCBC's group chief executive officer Samuel Tsien.

Before the statement, DBS shares closed S$0.38 lower on Thursday at S$15.88. UOB shares fell S$0.24 to S$18.70, while OCBC closed S$0.05 lower at S$8.80.

Told you already this is the golden era, the golden colour of smelly piss onto the fake prosperity of sinkieland lol.

Relaks...don't panic...The unrecoverable half will be marked as long-term investments in its books.

SNTCK said:

... "We have no borrower who has abandoned operations. This is a good sign. We do not foresee any customers who will abandon ship," ...

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tis remarkz bestest! ...

as if customers wil gif dem prior information dat dey r going 2 jump ship b4hand ...

seems like bank din provide provisions 4 it ... probly mor such coys haf not been sexposed yet ...

headed by n ah neh ...

tits of the iceberg

this is why $30k bank robbery is nothing,in fact 30k robbery is considered a good day.sup sup sui lah,they even got surplus general allowance capable of supporting up to 150 million dollars of losses.

Ah Neh CEO thinks that he is the best ...now this shit hits him.
Ah Nehs are thick skin. He won't give a hoot. It is other people's money. He still get his hefty pay and bonus as long as he doesn't upset the powers.

SNTCK said:

... DBS's statement on Thursday night follows comments made by UOB and OCBC ...

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can c how sneaky ahneh is ...

if ze other 2 kept quiet, he wud wun say anyting ...

oni wen ze other 2 has cum clean, den oni he cum out n say his part ...

What does this means ? Dbs also going to have retrenchment next ?

After acquiring posb for $2. Time they acquire another bank. Maybe hong leong will also sell for $2

Jul 28, 20165:36 PM

THE share price of Vallianz Holdings collapsed on Thursday morning, following shocking news that its controlling shareholder Swiber Holdings has filed to wind up and is under provisional liquidation.

After hitting S$0.016 a share, Vallianz was trading around S$0.02 a share at 10:18am, down 1.6 Singapore cents, or more than 44 per cent. It eventually closed 41.7 per cent or 1.5 Singapore cents lower at S$0.021. More than 307.6 million shares changed hands, making it the most actively traded stock on the Singapore Exchange. The unusual price and volume prompted a query from the exchange.

On Wednesday, Vallianz announced that its non-executive director and chairman, Raymond Kim Goh, 48, has resigned due to "health reasons". Mr Goh is also the executive chairman and founder of Swiber Holdings.

The resignation was followed by a shocking announcement early Thursday by Swiber, which said that it has filed an application to place the company under provisional liquidation. The winding-up application will be heard in court on Aug 19.
listening to the financial crowd
Market voices on: Vallianz HLD Ltd
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Updated: 29.07.2016, 08:40, last 30 days

Swiber - once a darling in the Singapore oil and gas sector - also said its executive director and vice chairman Francis Wong, executive director and chief financial officer Leonard Tay and executive director Nitish Gupta have all resigned "to seek new opportunities".

This comes at a time when the company is facing letters of demand for about US$25.9 million in total, and is seeking legal advice.

On Monday, the company said it was facing just US$15.2 million in outstanding demand letters for which legal proceedings had not commenced, and US$4.76 million of outstanding demand letters that had not been paid off.

Shares of Swiber have been halted from trading since July 27. At the time of the halt, the shares were trading around S$0.109 each, down 0.2 Singapore cent, or 1.80 per cent.

Chart of the Day: Which bank is most exposed to the struggling oil and gas sector?


DBS is most exposed to the oil and gas sector. Its loans to O&G players amount to $22 billion, making up 8% of its loan book. DBS also has $9 billion worth of loans to oil and gas support services players, making up 3% of loans.

Meanwhile, OCBC has $13 billion of loans to the oil and gas sector, making up 6% of its loan book. It also has around $5 billion of loans to O&G support services providers, amounting to 2% of its total loans.

United Overseas Bank (UOB) has the smallest exposure to the sector. Its total O&G loans amount to $10 billion, making up 5% of its loan book. UOB did not disclose the amount of loans it has disbursed to O&G support services players.

In terms of other commodities excluding oil and gas, OCBC has the largest exposure to the commodities sector at $15 billion, or 7% of its loan book. This is followed by DBS with $12 billion, or 4% of its loan book, and UOB with $6 billion, amounting to 3% of its total loans.

See more at: http://sbr.com.sg/energy-offshore/n...gling-oil-and-gas-sector#sthash.2tlEmJHH.dpuf

DBS gonna own couple of ships..........................new biz

chootchiew said:

What does this means ? Dbs also going to have retrenchment next ?

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What do you think? You have solutions for that impairment?

In a true democracy, the free press will be asking questions about Temasek's investment.

winnipegjets said:

In a true democracy, the free press will be asking questions about Temasek's investment.

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In Sg, Ka Ki lang asked Ka Ki lang question? Hmmm... ownself asked ownself ?

Greed said:

What do you think? You have solutions for that impairment?

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I will sack all the investment mgrs relating to swiber.
Then I will remove all interest to negative like rbs warned.
Then I retrench all other cbl staffs

winnipegjets said:

In a true democracy, the free press will be asking questions about Temasek's investment.

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Many 'true democracies' have gone broke, suffered from incompetent revolving door governments and are now very unsafe thanks to nonsensical migrant policies that allowed in intolerant and dangerous refugees.

which are the other banks????... any bros know??
knn. .. my $7k. .. gone