In March 2020, DBS announced a staggering pay check of $12.1 million to CEO Piyush Gupta for leading the bank to the Promised Land – DBS’ total income had more than doubled, net profit has tripled, and market capitalisation had nearly doubled in FY2019. However, almost half of his annual salary was in the form of the company’s share plan. Thus, the upheaval of DBS Group Holdings share price in recent months must have left a bitter taste in CEO Piyush Gupta’s mouth.
Previously, the supreme form of DBS Group Holdings share price was largely due its strong financial results, which was fuelled by its aggressive loan growth strategy. With $362 billion gross loans, DBS is the largest lender in Singapore. In comparison, UOB holds $269 billion while OCBC holds $264 billion of loans.
For sure, CEO Piyush likes to put his money where his mouth is. In 2016, he bought $2.8 million of DBS shares at the peak of the oil crisis. At that point of time, he was confident that DBS Group Holdings share price was undervalued. Time flies. 2020 saw oil price plunged into negative territory while COVID-19 virus brings the global economy into a complete standstill. The market chaos led to a bloodbath for DBS Group Holdings share price.
Singapore has the world largest bunkering port due to it’ strategic geographical location. So the collapse of Hin Leong is unlikely to cause major disruption to the country’ oil trading hub ecosystem. But the downfall of the homegrown oil trader could be a harbinger of things to come for DBS Group Holdings share price as the unprecedented negative …Read more