DBS spends its pocket money

With its Hong Kong acquisition, DBS has used up its surplus capital.

Steven Irvine

April 12, 2001

With its $5.3 billion acquisition of Hong Kong's Dao Heng bank, DBS will be off the acquisition trail for a while, according to analysts.

The deal sees DBS taking its capital adequacy ratio to a low point. Indeed, the deal has been structured so that part of the payment to the Guoco group has been deferred till the end of 2002. This was done to ensure that the capital adequacy ratio did not fall below 9%.

Sign In to Your Account Access Exclusive FinanceAsia Content!

Please sign in to your subscription to unlock full access to our premium FA resources.

Free Registration & 7-Day Trial
Register now to enjoy a 7-day free trial - no registration fees required. Click the link to get started.

Note: This free trial is a one-time offer.

Questions?
If you have any enquiries or would like a quote for a team or company licence, please contact us at [email protected]. Our subscription team will be happy to assist you.