<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>DBS to give new push to POSB 10 min
</TR><!-- headline one : end --><TR>New DBS chief concedes bank had under-invested in POSB's network and heralds new push to 're-energise' it </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Gabriel Chen
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DBS Bank's chief Richard Stanley -- is all set to 'relaunch' POSB. FILE PHOTO/THE BUSINESS TIMES
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->DBS Bank's new boss was certainly not mincing words when he spoke about the way the bank has run POSB: 'We've disappointed Singaporeans and we plan to turn it around.'
The stark admission from Mr Richard Stanley, who was presiding over his first results briefing yesterday, heralded a new push by the bank to re-energise POSB.
He conceded, when questioned, that DBS Group Holdings had under-invested in the POSB network but that it intended to make amends.
Mr Stanley, who took over the helm in May, said he was very excited about the 'relaunch' of POSB.
One initiative launched yesterday was the POSB More Value Book, which will be given to customers who sign up for banking products at their branches. It will give discounts on utility bills, groceries and other items.
'Part of our strategy is to engage more in Singapore, to leverage this privileged position which I've spoken about before,' said Mr Stanley at the half-year results.
'We hope to have a more diverse client base in Singapore, in Hong Kong, and elsewhere.'
Analysts said it remains to be seen if DBS can deliver, having 'relaunched' POSB several times in the past.
A bank analyst said after the briefing: 'It's admirable that DBS wants to invest more in POSB, which holds a place in the heart of Singaporeans.
'But remember, only some years ago, it was bleeding $44 million a year as it was unable to cover the cost of serving small customers.'
Kim Eng analyst Pauline Lee pointed out that DBS' strategy to invest in POSB was a sound one, but it remained to be seen how fast it will add to the group's bottom line.
'POSB has the majority of accounts for various age groups, so there are a lot of pockets you can maximise,' she said.
Retail banking was also on the mind of OCBC Bank chief executive David Conner, who told a results briefing why it is offering a new preference share offering, given that it has just closed a similar capital-raising exercise.
He said the new preference shares, with details yet to be announced, would be targeted mostly at the retail segment.
Mr Conner said it was evident from the good response to the Class B preference shares which closed recently, that there is a significant demand for such preference shares in the market.
The popularity is clear. The ATM offer for OCBC's preference shares was 11 times subscribed.
A stronger capital position will also enable the bank to further expand and take advantage of market opportunities.
'We've a significantly growing (loan) book...and this indicates we'll be using up more capital as we go forward,' Mr Conner said. [email protected]
</TR><!-- headline one : end --><TR>New DBS chief concedes bank had under-invested in POSB's network and heralds new push to 're-energise' it </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Gabriel Chen
</TD></TR><!-- show image if available --><TR vAlign=bottom><TD width=330>
</TD><TD width=10>
DBS Bank's chief Richard Stanley -- is all set to 'relaunch' POSB. FILE PHOTO/THE BUSINESS TIMES
</TD></TR></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->DBS Bank's new boss was certainly not mincing words when he spoke about the way the bank has run POSB: 'We've disappointed Singaporeans and we plan to turn it around.'
The stark admission from Mr Richard Stanley, who was presiding over his first results briefing yesterday, heralded a new push by the bank to re-energise POSB.
He conceded, when questioned, that DBS Group Holdings had under-invested in the POSB network but that it intended to make amends.
Mr Stanley, who took over the helm in May, said he was very excited about the 'relaunch' of POSB.
One initiative launched yesterday was the POSB More Value Book, which will be given to customers who sign up for banking products at their branches. It will give discounts on utility bills, groceries and other items.
'Part of our strategy is to engage more in Singapore, to leverage this privileged position which I've spoken about before,' said Mr Stanley at the half-year results.
'We hope to have a more diverse client base in Singapore, in Hong Kong, and elsewhere.'
Analysts said it remains to be seen if DBS can deliver, having 'relaunched' POSB several times in the past.
A bank analyst said after the briefing: 'It's admirable that DBS wants to invest more in POSB, which holds a place in the heart of Singaporeans.
'But remember, only some years ago, it was bleeding $44 million a year as it was unable to cover the cost of serving small customers.'
Kim Eng analyst Pauline Lee pointed out that DBS' strategy to invest in POSB was a sound one, but it remained to be seen how fast it will add to the group's bottom line.
'POSB has the majority of accounts for various age groups, so there are a lot of pockets you can maximise,' she said.
Retail banking was also on the mind of OCBC Bank chief executive David Conner, who told a results briefing why it is offering a new preference share offering, given that it has just closed a similar capital-raising exercise.
He said the new preference shares, with details yet to be announced, would be targeted mostly at the retail segment.
Mr Conner said it was evident from the good response to the Class B preference shares which closed recently, that there is a significant demand for such preference shares in the market.
The popularity is clear. The ATM offer for OCBC's preference shares was 11 times subscribed.
A stronger capital position will also enable the bank to further expand and take advantage of market opportunities.
'We've a significantly growing (loan) book...and this indicates we'll be using up more capital as we go forward,' Mr Conner said. [email protected]
