Temasek: DBS will weather Singapore’s fresh property cooling measures

DBS ATM in SingaporeDBS ATM in Singapore

Banking group DBS wasn’t likely to face a significant earnings impact from fresh property cooling measures, Singapore state-owned investment company Temasek said on Tuesday.

Singapore’s government last week implemented a fresh round of property cooling measures, targeting the additional buyer’s stamp duty (ABSD) and loan-to-value limits. That was expected to stem home-price rises and transaction volumes, with knock-on effects on banks, which may see declines in mortgage-loan demand.

“DBS has built multiple engines for growth in the last few years both in Singapore as well as in the region. I think the mortgage market is only one of many different markets they’re in,” Png Chin Yee, head of financial services at Temasek, said on Tuesday at the fund’s earnings briefing.

“We don’t expect it to have a significant long term impact on DBS’ profits,” she said.

DBS, the largest bank in Southeast Asia by assets, has expanded its presence well beyond Singapore’s market in recent years, with operations in Hong Kong, China, Taiwan, India and Indonesia.

Temasek held a 29 percent stake in DBS as of 31 March 2018.

Temasek said on Tuesday that its net portfolio value grew to S$308 billion for the financial year ended 31 March, up S$33 billion on-year, for a one-year total shareholder return of 12.19 percent.

Clarificiation: This article has been updated to refer to Temasek as a state-owned investment company.

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