Southeast Asia’s biggest lenders including DBS Group Holdings Ltd. have performed the worst among the region’s bank stocks in the past five years on concern overseas expansion plans will fail to boost earnings.
Hugh Young, who helps manage $70 billion in Asian equities as Singapore-based managing director of Aberdeen Asset Management Asia Ltd., comments on Oversea- Chinese Banking Corp.’s announcement that Chief Executive Officer David Conner will retire in April after a decade running the city’s second-largest lender.
Thailand’s stocks are relatively cheap with potential to climb as the political crisis that prompted the biggest selloff in five months will probably be resolved peacefully, the top Thai fund manager said.
Thailand’s earnings growth may help stocks withstand a renewal of political turmoil after a bomb attack in the capital over the weekend, said Aberdeen Asset Management Plc, which runs the best-performing Thai equity fund.
Ask David Conner, chief executive officer of Singapore’s Oversea-Chinese Banking Corp., what makes a world-class bank and he smiles and tells the story of how he was hired. It was April 2002, and Singapore’s banks faced a struggling economy, poor demand for credit and rising competition from foreign lenders that had just won greater access to the Singaporean market.