...Sound Funding Structure: DBS Bank Ltd.'s (DBS) high current and savings accounts (CASA) ratio of 57.9% underpins the funding advantage of the largest bank in south-east Asia by assets. Its Singapore-dollar loan-to-deposit ratio (LDR) was a comfortable 80.9% at end-June 2015, and its US dollar funding is adequately sourced through a mix of US dollar deposit- gathering, swapping of excess Singapore dollar deposits and wholesale funding. Well-Managed Concentration Risk: DBS's exposure to greater China, excluding Hong Kong, had risen by 9pp to 17% of gross loans by end-June 2015 since 2008. Fitch Ratings believes its credit risk from this exposure is sufficiently mitigated because: first, a large part of the increase came from short-term, self-liquidating trade loans, which are traditionally safer and are mostly backed by letters of credit from systemically important Chinese banks; and second, DBS says it targets better-quality Chinese and international corporates. Steady Profitability: DBS's...
