atans1

Hin Leong: Must be DBS and OCBC again

In Banks, Energy on 18/05/2020 at 4:56 am

Dabbling in oil-related lending yet again and losing money. (Previous fiasco: see end of article.)

Honourable exception is UOB where I got economic interest via Haw Par: Haw Par: Rediscovered yet again. Btw, during the recent market falls, the Wee family co was buying Haw Par shares.

Local banks’ exposure (ex UOB) not as tiny as what our constructive, nation-buildng media try to picture it by emphasising HSBC’s exposure.

Here’s the truth, thanks to Seedly

S$411 million (US$290 million) owed to DBS — 0.11% of DBS’ loan book

S$354 million (US$250 million) owed to OCBC — 0.12% of OCBC’s loan book

S$209.7 million (US$148 million) owed to UOB — 0.05% of UOB’s loan book

S$850.7 million (US$600 million) owed to HSBC — 0.0005% of of HSBC’s loan book

https://blog.seedly.sg/hin-leong-scandal/?fbclid=IwAR39LRL8OX_kZLbm1qj201_2GuDl9R2A4zgLF-etv4L-y2BhOyNii1FNnZE

Good work Seedly. Go to the above cited link for a great blow-to-blow account of what happened to Hin Leong.

Here’s another schematic showing OCBC’s and DBS’s in exposure in perspective to other banks. Interestingly, only one US bank has a tiny exposure, and its not Citi.

The last time oil prices tanked a few yrs ago, DBS and OCBC were caught swimming naked with big exposures to the offshore marine sector (Think Swiber).

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