The ratings on DBS Bank Ltd. reflect the bank's solid franchise in the Singapore market, where it is the largest bank in terms of consolidated as well as domestic assets. Standard&Poor's Ratings Services also recognizes the bank's strong funding and liquidity profile, and strong capitalization and financial flexibility. The bank's more volatile loan quality as compared to peers, especially from its exposure outside Singapore, and the pressure on its profitability counterbalance these strengths. DBS Bank's strong franchise in Singapore, including its Post Office Savings Bank branding, and its wide branch network, provides it with a very good liquidity and funding profile. The bank benefits from its strong customer deposit base, which mainly comprises low-cost current and savings accounts.
