DBS CEO: Not expecting negative growth in the next quarter | Capital Connection

DBS CEO: Not expecting negative growth in the next quarter | Capital Connection



well I think it's quite clear that you're looking at what people are calling a synchronized global slowdown so I think you will see economic slowdown that's what the IMF data suggests says well I do think however that second quarter was a bit of a cliff and so even as we started getting into June and into the third quarter we're seeing some bounce back from really slow April and me so I think there would be slowed down but it might not be as bad as the second quarter data suggests all around second quarters obviously week for exports week for p.m. eyes our own sense though is that the rest of the year will be somewhat better than that though on an average it would be slower than it was now a slow Asia still grows at four or five percent and four five percent is not in an adequate amount of growth in which to be able to build some decent businesses and that's four five percent real GDP growth so if you add some inflation you get 78 percent nominal GDP growth I think it is still possible to continue to get positive top-line income growth around the region or bit slower than it was right but can you continue the run rate on profits that you witness that's fine to the end to the first two quarters last quarter was a record profit a quarter for you can you better 1.65 Singapore billion dollars really in terms of profits for the second half I think we can continue to improve the absolute profit number yes because I don't expect negative growth and so you will see an absolute positive number the rate of growth would slow down without a doubt we grew 12 percent in the first half of the year I certainly don't expect to see 20 percent growth in the second half of the year but I do expect to see a overall fully a growth still come in at the high single digits okay and what about a loan growth you have forecasted that loan growth will be in mid-single digits with the likelihood of a Fed rate cut coming now and perhaps more in the offing do those numbers get adjusted higher I don't think so I don't think credit demand is being driven a lot today by the level of interest rates what are we being driven by you argue that if rates are lower people will borrow a lot more I think people's borrowing is really driven today by business confidence and business investment is generally slow not because rates have gone up because confidence is low so if you have an environment where confidence continues to be slow I don't see a big pickup in credit demand or borrowing the one hey everybody its Hadley gamble from our new CNBC Middle East Bureau in Abu Dhabi thanks for stopping by now to watch more you can try one of the videos that just popped up on your screen and don't forget to subscribe

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