Furthermore, the Lion City’s AAA rating by all three ratings agencies, an exclusive club of just nine countries, was probably a tailwind for the SGD, and by the same token, enabled banks such as DBS to access lower funding costs versus regional and international peers.
For The Edge Singapore’s CFO Interview, we sat down with DBS Group CFO Chng Sok Hui, who not only unpacked her role but may have let slip the bank’s secret sauce.
DBS has been among the best global performers. From September 2009 to the end of September this year, DBS has outperformed the local banks, HSBC and Standard Chartered Bank. Compared to the S&P500, DBS is marginally behind on an annual basis (see chart), returning 14.31% versus 14.33% for the S&P500. In SGD, DBS has outperformed the S&P 500. This is partly due to the Singapore dollar’s haven status this year, as investors, including global investors, deployed their funds into Singapore equities and other Singapore dollar assets.
