DBS Group Holdings Ltd (星展銀行) said it expects the COVID-19 outbreak to hurt revenue slightly this year as it unveiled steps to alleviate its impact on small businesses and home owners.
Assuming the outbreak is controlled by the summer, the virus would impact revenue by about 1 to 2 percent, chief executive officer Piyush Gupta said in a presentation yesterday after Singapore’s biggest bank posted higher fourth-quarter profit.
DBS is one of the first major Asian banks to flag the risks to earnings from the virus. The outbreak has penetrated the bank, where an employee at its Singapore headquarters was diagnosed with the disease earlier this week, prompting it to send 300 workers home.
In line with lenders in Hong Kong and Singapore that are helping clients during a virus-hit economic slowdown, DBS is offering a six-month debt moratorium on principal repayments for property loans extended to small and medium-sized businesses in Singapore and Hong Kong, as well as on mortgage loans for retail clients in Singapore, it said.
United Overseas Bank Ltd (大華銀行), a local smaller rival, has allocated S$3 billion (US$2.16 billion) of “relief assistance” to Singaporean companies aimed at addressing near-term liquidity, it said on Wednesday.
Policymakers around the world are assessing the potential economic hit from the virus, which has already disrupted travel, commerce and manufacturing throughout Asia. Singapore is bracing for a tourism slump that DBS economists say might wipe 0.5 percentage point off this year’s growth.
For DBS, the impact is not confined to the domestic market: More than a quarter of its revenue comes from Greater China, including Hong Kong.
DBS posted fourth-quarter profit that climbed 14 percent to S$1.51 billion, led by income from lending and wealth management. That compared with the S$1.49 billion average estimate of five analysts surveyed. Full-year earnings also climbed 14 percent, to a record S$6.4 billion.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion