With oil off its hands, DBS needs to fire bigger digital gun

DBS's latest "accelerated recognition" of allowances in the oil-and-gas (O&G) segment in the third quarter is aimed at refocusing on its operating performance and digitalisation agenda. And when one takes a closer look at the other big drivers of its share price - as a measure of investor confidence - that refocus has more urgency than may be apparent at first glance.

It is likely Mr Market would have punished DBS more severely for its slower recognition of the structural problems in the O&G segment, if not for the strong buying interest in property, better economic prospects and the expected lift in rates that should aid Singapore's largest bank.

The blistering tear in the banks' share price masked the fact that investors took more money off the table when it came to DBS, once the bank acknowledged in early August that the O&G sector was mired in deeper troubles.