| A Stellar Year for Treasury Business
DBS?Treasury & Markets demonstrated the soundness of the Banks clientcentric strategy by achieving record growth in revenue over the previous year. A truly remarkable performance, given the dramatic events of 2001, especially the second half of the year when a world desperately tried to comprehend the shocking events of September 11, 2001, the ensuing repercussions, global economic slowdown and pendulum swings in market sentiment. Setting Benchmarks in the Market
2001 was the year in which Treasury & Markets, together with other teams within the Bank, seamlessly developed and launched the first ever synthetic Collateralized Loan Obligation (CLO). This was a milestone for the Bank as DBS became the first bank in Asia to introduce CLO as a tool to facilitate the efficient management of capital from the corporate loan portfolio. The CLO not only created a new asset category in the local market, but was also the first structured transaction in Singapore to be rated by all three international rating agencies - Standard & Poors, Moodys and Fitch. Supported by a base corporate loan portfolio of S$2.8 billion, the S$224 million notes were well received, particularly by insurers and off-shore lenders who snapped up 80% of the issue. A Regional Focus
In 2001, the Treasury group continued to focus on building a strong foundation and shoring its capabilities in Asian markets. The initiatives were evident in the new products developed for multi-asset classes, the enhanced talent pool and investments in technology to develop world-class risk management systems and skills. In June 2001, DBS acquired Dao Heng Bank in Hong Kong, further strengthening its franchise in the market. By the end of the year, treasury business across Dao Heng, DBS Kwong On Bank and the DBS Hong Kong Branch were fully integrated. A Unique Customer Appreciation
With nine out of every ten customers based in Asia, DBS?inherent Asian heritage allows it to leverage a unique level of pan-Asian knowledge and expertise to deliver advisory and risk management solutions across Asian currencies and markets to a diverse customer base. With customer focus at the very heart of Treasury & Markets?operational philosophy, 2001 saw the closely-knit team substantially increase its market share through its market making and structuring skills in foreign exchange (FX) and interest rates across a spectrum of vanilla and derivative instruments. Phase two of the strategy - marshalling the same capabilities in equity and credit products - was also set in motion during the year.
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The credit and equity derivatives teams were substantially reinforced to broaden the range of derivative products offered across customer segments. |
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An impressive number of credit and equity derivative products were introduced during the year, including the immensely popular GROWTH ACCOUNT. A 100% principal-protected deposit offering, GROWTH operates like a fixed deposit, yet delivers returns like an investment. When a similarly structured offering was snapped up by the Banks priority banking clientele earlier in the year, it suggested that GROWTH would prove attractive to the Banks retail customer segment. |
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The revenue contribution by the entire suite of derivative instruments to Treasurys bottom line figures in 2001 doubled over the previous year - another step in the drive to transform Treasury & Markets into a pan-Asian derivatives bank of choice competing with global peers. |
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According to the Interbank Derivatives Survey 2001 conducted by AsiaRisk, DBS was the only Asian bank to break into the top five spots, sweeping virtually all Singapore Dollar categories. |
Among the Best-of-the-Best
The global FX market has been thrown into a state of flux by the worldwide economic upheaval and rapidly evolving technologies. DBS has achieved growth and expansion despite global uncertainties and its 2001 performance has won accolades from the industry. Global Finance named DBS the Best Foreign Exchange Bank in Southeast Asia and Singapore. FX Week picked DBS as one of the Best Banks in Emerging Asian Currencies (among banks all over the world) - another first for an Asian bank. The essence of Treasury & Markets?business is its uncompromising focus on the customer. Sales and product teams were further re-aligned in mid 2001 to strengthen the collaborative partnership within the Group in support of this customer-driven strategy. Dedicated sales teams were formed, each to serve defined segments of the customer base - the corporate customer and consumer groups, the private banking clientele and financial institutions, and the active trading client group. Derivative specialists - in the four key asset classes of FX, interest rate, credit and equity - will assist the sales teams while they concentrate on creating broader and deeper customer relationships and sourcing transactions for clients. Treasury has come a long way since 1999, when it stated its goal of becoming a major risk advisory player in Asia. DBS - with its dominance in Singapore and presence in Hong Kong and Thailand - may well be the only regional provider of financial solutions to customers.
| KEY ACHIEVEMENTS |
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In 2001, DBS became the first bank in Asia to introduce Collateralized Loan Obligation (CLO) as a capital management tool. The milestone launch created a new asset category in the local market and was also the first structured transaction in Singapore to be rated by all three international rating agencies - Standard & Poors, Moodys and Fitch. |
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In 2001, DBS continued its dominance as No.1 in delivering a full range of Singapore Dollar products and, in the process, won numerous other regional and global accolades for Asian currencies. |
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DBS acquired Hong Kongs Dao Heng Bank in June 2001. By the end of the year, Treasury & Markets?business across Dao Heng Bank, DBS Kwong On Bank and the DBS Hong Kong Branch were already fully integrated. |
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Best Foreign Exchange Bank in Southeast Asia & Singapore Global Finance, March 2002 |
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Ranked 1st in FX, Interest Rate & Equity Derivatives Products in Singapore AsiaRisk, June 2001 |
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Ranked 2nd in Interest Rate Products in Hong Kong AsiaRisk, June 2001 |
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Ranked 4th in the Interbank Derivatives Survey 2001 AsiaRisk, December 2001 |
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Ranked 2nd globally in Emerging Asian Currencies FX Week, December 2001 |
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Domestic Derivatives House of the Year in South Asia, 2000 and 2001 AsiaRisk |
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