DBS spends its pocket money

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

It means DBS is out of the MA game for a while, comments one analyst. The bank will have to cease looking at acquisitions and start consolidating. The top Singapore bank will launch a $1.1...

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