Commercial Banking. DSB’s commercial banking services include trade finance, overdraft facilities, commercial lending, syndicated loans, property development and investment lending, deposit-taking from corporates and institutions, mortgage lending, corporate credit cards, hire purchase and equipment leasing. As at 31st December, 2005, the commercial banking division accounted for approximately 29% of the Bank’s consolidated loan portfolio. The Bank’s customers are principally small and medium sized enterprises in industrial, manufacturing and trading businesses based in Hong Kong, many of which have manufacturing plants in the Pearl River Delta Region. Many of these customers have been banking with DSB for many years. The commercial banking division is divided into three departments: marketing, risk management and trade services, each of which reports directly to the head of the division. The risk management department is further divided into credit approval, credit administration and special attention credits teams, and functionally reports to the Head of Group Risk. DSB provides trade finance services to its customers, with a principal focus on import and export financing. Services provided include the issuance of documentary credits, import loans, purchase of export bills, packing loans, issuance of shipping guarantees and financing of accounts receivable. ▇▇▇▇▇▇ received with respect to trade finance is a combination of commissions and interest income. As well as being affected by macro-economic factors in Hong Kong and Mainland China, the volume of the Bank’s trade finance business fluctuates based on seasonal factors. As a result, the majority of transactions tend to be effected in the second and third quarter of the year. DSB also provides overdraft and term loan facilities to local companies for general working capital and other commercial purposes. The majority of these loans are supported in whole or in part by collateral such as property, although depending on the borrower’s status, unsecured facilities may also be extended. Credit facilities are subject to review at least annually depending on credit performance. The Bank also provides revolving loans and syndicated loan to larger corporate customers. The Bank’s participation in syndicated loans is dependent on the creditworthiness of borrowers, pricing and the Bank’s relationship with arrangers. The Bank provides property lending facilities to corporate customers to facilitate the development or purchase of properties for commercial or investment purposes. As with residential loans, the Bank’s normal practice in respect of commercial mortgage loans is to advance up to 70% of the lower of the appraised value of the relevant property or the purchase price. The loans are typically secured by a first legal charge over the property for which the mortgage is sought. In certain circumstances, the Bank will lend more than 70% of the value of a property, especially where properties are secured for trade-related facilities, term loans and overdraft facilities for customers with good credit standing. The Bank’s hire purchase business comprises hire purchase finance and leasing, principally involving taxi, vehicle and equipment financing and leasing, all of which are generally required to be secured against the respective underlying assets. Vehicle financing for the purchase of taxis, public light buses, trucks, lorries and private cars has been an established core business of the Bank since the mid-1980s. The standard credit underwriting requirements of the hire purchase business include taking possession of registration and title documents of the relevant vehicle or equipment as security, assessment of the relevant business and, where appropriate, cash flow analysis. Approximately 14.3% of the consolidated customer deposits of the Bank as at 31st December, 2005 were generated from its commercial banking division. The Bank’s principal commercial depositors are corporates and their respective directors and staff, institutions and public sector entities. The majority of the Bank’s core deposits come from its longer-term relationship customers. The types of deposit products offered include current, savings, call and time deposits and certificates of deposit in Hong Kong dollars and selected major foreign currencies. The Bank distributes general insurance products under a distribution agreement and an agency agreement with DSIA. DSIA pays a commission to the Bank in respect of any insurance business that it refers. Customers of the Bank who wish to purchase general insurance products are first referred to DSGI which has the right of first refusal to provide such products. If no suitable products are provided by DSGI, or if DSGI does not wish to underwrite the risk, the customers will then be referred to the Bank’s insurance broking subsidiary, which will then refer the customer to third party general insurance providers. DSGI provides a comprehensive range of general insurance products, including fire, household, motor and travel insurance.
Appears in 1 contract
Sources: Offering Circular
Commercial Banking. DSB’s commercial banking services include trade finance, overdraft facilities, commercial lending, syndicated loans, property development and investment lending, deposit-taking from corporates and institutions, mortgage lending, corporate credit cards, hire purchase and equipment leasing. As at 31st December, 20052008, the commercial banking division accounted for approximately 2952.3% of the Bank’s consolidated loan portfolio. The Bank’s customers are principally small and medium sized enterprises in industrial, manufacturing and trading businesses based in Hong Kong, many of which have manufacturing plants in the Pearl River Delta Region. Many of these customers have been banking with DSB for many years. The commercial banking division is divided into three departments: marketing, risk management and trade services, each of which reports directly to the head of the division. The risk management department is further divided into credit approval, credit administration and special attention credits teams, and functionally reports to the Head of Group Risk. DSB provides trade finance services to its customers, with a principal focus on import and export financing. Services provided include the issuance of documentary credits, import loans, purchase of export bills, packing loans, issuance of shipping guarantees and financing of accounts receivable. ▇▇▇▇▇▇ received with respect to trade finance is a combination of commissions and interest income. As well as being affected by macro-economic factors in Hong Kong and Mainland China, the volume of the Bank’s trade finance business fluctuates based on seasonal factors. As a result, the majority of transactions tend to be effected in the second and third quarter of the year. DSB also provides overdraft and term loan facilities to local companies for general working capital and other commercial purposes. The majority of these loans are supported in whole or in part by collateral such as property, although depending on the borrower’s status, unsecured facilities may also be extended. Credit facilities are subject to review at least annually depending on credit performance. The Bank also provides revolving loans and syndicated loan to larger corporate customers. The Bank’s participation in syndicated loans is dependent on the creditworthiness of borrowers, pricing and the Bank’s relationship with arrangers. The Bank provides property lending facilities to corporate customers to facilitate the development or purchase of properties for commercial or investment purposes. As with residential loans, the Bank’s normal practice in respect of commercial mortgage loans is to advance up to 70% of the lower of the appraised value of the relevant property or the purchase price. The loans are typically secured by a first legal charge over the property for which the mortgage is sought. In certain circumstances, the Bank will lend more than 70% of the value of a property, especially where properties are secured for trade-related facilities, term loans and overdraft facilities for customers with good credit standing. The Bank’s hire purchase business comprises hire purchase finance and leasing, principally involving taxi, vehicle and equipment financing and leasing, all of which are generally required to be secured against the respective underlying assets. Vehicle financing for the purchase of taxis, public light buses, trucks, lorries and private cars has been an established core business of the Bank since the mid-1980smid- 1980s. The standard credit underwriting requirements of the hire purchase business include taking possession of registration and title documents of the relevant vehicle or equipment as security, assessment of the relevant business and, where appropriate, cash flow analysis. Approximately 14.316.3% of the consolidated customer deposits of the Bank as at 31st December, 2005 2008 were generated from its commercial banking division. The Bank’s principal commercial depositors are corporates and their respective directors and staff, institutions and public sector entities. The majority of the Bank’s core deposits come from its longer-term relationship customers. The types of deposit products offered include current, savings, call and time deposits and certificates of deposit in Hong Kong dollars and selected major foreign currencies. The Bank distributes general insurance products under a distribution agreement and an agency agreement with Dah Sing Insurance Agency Limited (“DSIA”). DSIA pays a commission to the Bank in respect of any insurance business that it refers. Customers of the Bank who wish to purchase general insurance products are first referred to DSGI Dah Sing Insurance Company Limited (“DSIL”) which has the right of first refusal to provide such products. If no suitable products are provided by DSGIDSIL, or if DSGI DSIL does not wish to underwrite the risk, the customers will then be referred to the Bank’s insurance broking subsidiary, which will then refer the customer to third party general insurance providers. DSGI DSIL provides a comprehensive range of general insurance products, including fire, household, motor and travel insurance.
Appears in 1 contract
Sources: Offering Circular