DBS: Look on the bright side

In Banks on 06/07/2010 at 6:55 am

Time to buy the stock?

Everything that could have gone wrong has — from blowing up customer (HN5), losing money (Islamic Bank of Asia), CEO dying of cancer, losing status of top dog in region, bad strategy (tiny stakes in regional banks) and now juz after trumpeting its return to retail banking, a blow-up in its systems that took eight hrs to fix.

The thing to watch is the fate of Rajan “the wealth destroyer” (he signed off on the HN5 notes as head of consumer bank). He is implicated the the latest failure because he is still the head of consumer banking, and because before he became head of consumer banking, he was head of IT.

If he leaves ASAP after this balls-up, then we know DBS is serious abt fixing its “countrymen” problems, they stock could be worth a buy. And oh and the head of IT in DBS is an ang-moh.

BTW OCBC (FT CEO, but taz abt it) and UOB (proudly “home-grown” with some FTs) have not had a systems failure on this scale. Shows the lie to the “FT is best” policy, neh?


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