Question

What are latest developments in Corporate Governance from 2015 to 2019 in DBS bank Singapore.

Answer 1

DBS Bank Ltd may be a Singaporean multinational banking and financial services corporation headquartered in Marina Bay, Singapore. the corporate was referred to as the event Bank of Singapore Limited, before this name was adopted on 21 July 2003 to reflect its changing role as a worldwide bank.

The bank was found out by the govt of Singapore on 16 July 1968 to require over the economic financing activities from the Economic Development Board. Today, its branches numbering quite 100 are often found island-wide. DBS Bank is that the largest bank in Southeast Asia by assets and among the larger banks in Asia, with total assets of S$518 billion as at 31 Dec 2017. it's market-dominant positions in consumer banking, treasury and markets, asset management, securities brokerage, equity and debt fund-raising in Singapore, Hong Kong and Taiwan. DBS Bank's largest, and controlling, shareholder is Temasek Holdings, Singapore's second-largest sovereign wealth fund (after GIC). As of 31 March 2018, Temasek owns 29% of DBS shares.

The bank's strong capital position, also as "AA-" and "Aa1" credit ratings by Standard & Poor's and Moody's that are among the very best within the Asia-Pacific region, earned it Global Finance's "Safest Bank in Asia" accolade for 6 consecutive years, from 2009 to 2015. The Bank was also awarded the simplest Digital Bank within the World within the year 2016 by Euromoney. In July 2019, DBS became the primary bank ever to concurrently hold three of the foremost prestigious global best bank honours (Euromoney, Global Finance, The Banker).In addition, DBS Bank is listed on the Dow Jones Sustainability Asia Pacific Index since 2 October 2018, making it the primary bank in Southeast Asia to try to to so. DBS was one among the primary companies in Singapore to be recognised for gender equality efforts along side City Developments Limited within the first Bloomberg Gender-Equality Index (GEI) published in 2018.

With operations in 17 markets, the bank features a regional network spanning quite 250 branches and over 1,100 ATMs across 50 cities.

Internal controls framework

DBS banks internal controls framework covers financial, operational, compliance and knowledge technology controls, also as risk management policies and systems.

Culture

The DBS Board believes that corporate governance principles should be embedded in their corporate culture. Our corporate culture is anchored on competent leadership, effective internal controls and a group of common values.

Delegation by the Board to the Board committees

To discharge its stewardship and fiduciary obligations more effectively, the Board has delegated authority to varied Board committees to enable them to oversee certain specific responsibilities supported clearly defined terms of reference. Any change to the terms of reference for any Board committee requires Board approval.

Total income

Total income reached a replacement high, bolstered by growth in loans and fee income, also as a better net interest margin.

Net profit

Net profi t increased 28% to a record and return on equity was at its highest since 2007.

Dividend

The company proposed a final dividend of 60 cents per share, bringing the full-year ordinary dividend to SGD 1.20 per share, up 29%.

A stellar year

2018 was a stellar year for the bank. In Golden Jubilee year, the bank delivered a record performance, continued to form solid progress through digital transformation journey, and gained momentum in our efforts to drive sustainability as a core feature of our way of doing business.The bank also grew talent bench and improved people processes. Without a doubt, the highlight of the year was the slew of worldwide accolades received. DBS was concurrently named “Bank of the Year – Global” by The Banker and “Best Bank within the World” by Global Finance, something no other bank has achieved. This was also remarkable as past winners have attended be the massive global players, making DBS far and away the littlest bank to possess ever gained these recognitions. From private banking to SME banking to cash management, the bank also recognised as being the simplest globally. Across the citations, the bank also earned praise for continued digital transformation, and therefore the attendant impact this had on customers and fi nancials. That said, the year wasn't without challenges. the worldwide economy started 2018 on an upbeat note, but sentiment turned within the last half amid rising trade friction between the US and China, also as headwinds caused by tightening fi nancial market conditions. variety of emerging market economies also showed signs of strain. Despite this, we had another record year. Our performance benefi tted from broad-based business growth also as a better net interest margin. Total income reached a replacement high of SGD 13.2 billion and net profi t rose 28% to a record SGD 5.63 billion. Return on equity (ROE) was at 12.1%, A level not seen since 2007. During the year, wealth and cash management franchises delivered exceptional performances. Wealth income grew by 26% from deeper customer relationships also because the consolidation of the ANZ retail and wealth business we acquired. It improved incoming ANZ relationship manager productivity, launched Treasures Private Client segments onshore in Indonesia and Taiwan, introduced DBS iWealth in Hong Kong and unrolled new products including those within the Environmental, Social and Governance space. In cash management, the digital strategy continued to line us aside from other banks, and this helped us to shut a record number of mandates with both multinational corporations (MNCs) and little and medium enterprises (SMEs).

Commemorating DBS banks 50th anniversary 2018 was DBS’ 50th year

Recognising that strong stakeholder support has been key to the success over the years, the bank felt it had been important for our Jubilee celebrations to incorporate a measure of giving back – to shareholders, customers, employees and therefore the community. DBS shareholders were rewarded when the bank paid out a special dividend of fifty cents per share to mark the bank 50th anniversary.The bank ran a gamut of 50th anniversary-themed customer promotions to thank customers.The bank expressed gratitude to our 26,000 employees who are integral to DBS’ journey and success by gifting SGD 500 to every of them. the workers actively mentored 50 social enterprises and took part in 50 volunteer initiatives within the bank’s birthday month, among other initiatives.

For children and families

The bank have always played a key role in encouraging children to save lots of for his or her future with initiatives like the POSB National School Savings Campaign. Since the POSB Smart Buddy programme – the world’s first in-school savings and payments programme using wearable technology – was launched in 2017, an increasing number of faculties and students have participated within the programme. As of end-2018, it have distributed over 17,000 free watches and built cashless systems in on the brink of 50 schools. It also held an annual POSB-National Library Board (NLB) Kids’ Lit quiz for youngsters aged 10 to 13 years old. per annum , quite 70 schools compete to answer quiz questions on popular children’s books starting from the classics to comics. The competition is a component of a series of POSB events held with NLB to inculcate the worth of thrift through storytelling sessions. These events reached quite 10,000 grade school children. on the brink of 10,000 participants joined the bank at the tenth anniversary edition of the POSB PAssion run Kids, which was marked by an inaugural evening race. a complete of SGD 1 million was raised for the POSB PAssion Kids Fund, bringing the entire amount raised so far to SGD 8.2 million. The fund has supported some 110 programmes that have benefitted quite 400,000 children so far .

For Seniors

Through the bank partnership with the People’s Association,the bank have reached bent seniors within the community to teach them on financial literacy, self-service banking, digital skills and active ageing. for instance , POSB ran workshops that provided hands-on learning sessions, so seniors can better understand the way to use self-service and digital banking services. The bank also organised mental wellness advocacy programmes to boost awareness around topics like dementia awareness. The outreach programmes benefitted over 500 seniors in 2018. It partnered the Info-communications Media Development Authority on their nationwide ePayment Journey initiative. POSB was a part of six learning journeys, which educated quite 1,200 seniors on the utilization of digital tools. additionally , it's also a neighborhood of a seniors outreach programme, where POSB branch employees volunteer once a month at NTUC Health Nursing Homes near their branches in Geylang East, Chai Chee and Jurong West. In May, the bank conducted a pilot of POSB Smart Senior – the world’s first holistic health and payment programme developed for seniors, with some 60 participants in Yishun.

For the community

In Singapore, they believe building an inclusive society where everyone has access to banking services. POSB provides subsidised banking services to an outsized segment of consumers . Fees are waived for several , including youths, seniors, national servicemen and other people under public assistance schemes. It also work with Singapore Prison Service to waive fees for ex-offenders to assist with their reintegration into society. The bank have enhanced a number of their branches to 24-hour digital service lobbies. Operable around the clock, these lobbies provide customers with more convenience, allowing them to conduct their transactions beyond regular banking hours. Besides cash transactions, customers also are ready to conduct non-cash banking services via our Video Teller Machines (VTMs). Our VTMs are ready to instantly replace debit cards and internet banking tokens, take instructions for passbook replacements, also as offer face-to-face assistance from their customer service officers via live video streaming. Introduced in 2017, the VTMs are very well-received and that they have since installed 42 across the island. In support of environmental sustainability, POSB participated within the North East Eco Kids Programme which is supported by the POSB PAssion Kids Fund and therefore the North East Community Development Council. It consists of a series of workshops to inculcate environmental values in preschoolers within the North East district. quite 800 children and fogeys joined within the programme’s finale – the only one Earth Day Carnival. During the event, POSB volunteers helped participants create their own self-watering plants, nature journals, natural cleaners, and even mud creatures! In February, they worked with the Migrant Workers’ Centre and various merchant partners to develop a replacement membership programme catered specifically for migrant workers in Singapore. The programme is that the first of its kind to compile different merchants to supply meaningful benefits, freed from cost, to migrant workers in Singapore. Up to 200,000 migrant workers could potentially benefit within the first year of the programme. POSB also partnered the Centre for Domestic Employees (CDE) to assist newly-arrived and transferring foreign domestic workers (FDWs) to use for a POSB Payroll account and CDE membership, as a part of the work pass application process. the appliance comes with a NETS 2.0 Contactless Transit-enabled card. Today, we've some 30,000 POSB Payroll accounts opened for FDWs.

Governance framework

The banks governance framework is anchored on competent leadership, effective internal controls, a robust risk culture and accountability to shareholders. The Board plays a key role in setting our governance standards to satisfy our stakeholders’ expectations, and therefore the leadership model ensures an appropriate balance of power, accountability and independence in decision-making across various functional and geographic units.The corporate governance practices suits the Banking (Corporate Governance) Regulations 2005 (Banking CG Regulations). We also comply, altogether material aspects, with the subsequent corporate governance best practice guidelines issued by the Monetary Authority of Singapore (MAS): (i) the rules on Corporate Governance for Financial Holding Companies, Banks, Direct Insurers, Reinsurers and Captive Insurers issued on 3 April 2013, which comprises: • the Code of Corporate Governance 2012 (2012 Code); and • supplementary guidelines and policies added by MAS to cater to the various and sophisticated risks undertaken by fi nancial institutions (Supplementary Guidelines). (ii) the Code of Corporate Governance 2018 issued on 6 August 2018 (2018 Code),

Enhancing corporate governance disclosures

The 2018 Code seeks to encourage listed companies in Singapore to supply thoughtful and meaningful explanations around their corporate governance practices. Rule 710 of the SGX Listing Manual requires Singapore listed companies to explain their corporate governance practices with specifi c regard to the 2018 Code in their annual reports for fi nancial years commencing on or after 1 January 2019. As a part of their continuing efforts to reinforce their corporate governance disclosures, the Board has elected to adopt Rule 710 of the SGX Listing Manual beforehand .

Keppel Infrastructure Trust and Keppel Energy secure Singapore's first sustainability-linked loan within the energy sector from DBS Bank and OCBC Bank

Keppel Infrastructure Trust (“KIT”) and Keppel Energy Pte. Ltd. (“KE”), through a venture , have secured a 7-year S$700 million sustainability-linked loan from DBS Bank and OCBC Bank for its jointly owned gas-fired co-generation plant, Keppel Merlimau Cogen Plant.

One of the most important sustainability-linked loans in Singapore, the transaction also marks KIT and KE’s maiden sustainability-linked loan and is that the first such loan for Singapore’s energy sector so far .

DBS Bank and OCBC Bank acted as joint lenders and sustainability coordinators for this transaction.

The loan is linked to carbon emission targets for Keppel Merlimau Cogen Plant. These targets include benchmarking of the plant’s carbon emissions intensity against national indices, also as demonstrating continuous improvement within the plant’s carbon emissions intensity. If these pre-set targets are met, the rate of interest on the power are going to be subsequently reduced on a tiered basis.

This strengthens KIT’s sustainability efforts, where many of the Trust’s businesses and assets across its portfolio have already incorporated best-in-class technologies to support sustainable urban infrastructure. Key initiatives include the implementation of a water management plan at City Gas that reduced water consumption by up to 13% in 2019, the introduction of the utilization of drones for equipment inspection at selected Ixom HoldCo Pty Ltd (Ixom) facilities, improving efficiency and safety levels, and therefore the development of a sensible chemical handling system at Keppel Merlimau Cogen Plant, which reduced staff exposure to chemicals.


DBS launches world’s first sustainable and transition finance framework and taxonomy to assist clients advance on sustainability agenda

As a part of DBS’ efforts to partner clients from key industries to transition to a low-carbon economy, DBS today published a Sustainable and Transition Finance Framework and Taxonomy.

The world’s first Sustainable and Transition Finance Framework and Taxonomy by a bank will form the bedrock for DBS to interact with clients who are furthering their sustainability agenda. The taxonomy will function a regard to guide clients to adapt and build resilience within the face of global climate change , resource scarcity and address critical global issues like social inequality.

To encourage greater transparency in sustainable and transition economic activities, the taxonomy outlines the way DBS manages transactions that are classified as “Green”, “Transition” and/or contributing to the United Nations Sustainable Development Goals (UN SDGs). It also summarises a broad list of eligible economic activities – be it the utilization of recycled plastics for attire making, or an electricity grid upgrade to enable integration of intermittent renewable energy.