Latest news with #UOB
Business Times
2 days ago
- Business
- Business Times
UOB awarded S$17.7m in civil suit against Lippo Marina Collection over inflated housing loans
[SINGAPORE] UOB has been awarded S$17.7 million in claims against Indonesian developer Lippo Marina Collection (LMC) and two property agents, Goh Buck Lim and Ms Aurellia Ho, in a long-running civil suit that began in 2014. The High Court's assessment of the damages dated Jun 30, 2025, follows a key ruling by the Appellate Division of the High Court, which in 2022, overturned an earlier judgement and found LMC, a unit of Lippo Group, liable for conspiring with the property agents to mislead the bank into disbursing inflated housing loans. The police commenced investigations into LMC following the October 2022 court ruling. The court noted that the conspiracy caused UOB to suffer substantial losses after it financed more than 100 per cent of the purchase prices of 38 condo units in Marina Collection, a high-end waterfront residential enclave developed and sold by LMC. UOB had granted approximately S$182 million in home loans between December 2011 and September 2013 to the purported purchasers of the 38 units, all of whom defaulted on their loans by April 2015. UOB, represented by a legal team led by Eddee Ng of Tan Kok Quan Partnership, had sought to recover S$92 million in losses. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up The court recognised about S$53 million in claims but deducted S$37.2 million to account for repayments and rental income collected by the bank. UOB also received S$2.3 million in statutory interest. LMC is represented by Senior Counsel Siraj Omar of Siraj Omar LLC. The lawsuit centred around a rebate scheme concealed from UOB. The 124-unit Marina Collection in Sentosa Cove was launched for sale in late 2007, but only 42 units were sold by Mar 10, 2011, after a series of cooling measures were introduced. The courts heard that for subsequent condo purchases, LMC gave substantial 'furniture rebates' of 22 per cent to 34 per cent, which were used to offset the cash payments required for the purchases. These subsidies, undisclosed to UOB, led the bank to grant larger loans based on the full sale price stated in the purchase agreements. At the time, banks were allowed to lend up to 80 per cent of the purchase price of a residential property. UOB's loans exceeded the cap based on the inflated purchase prices. The actual purchase prices were significantly lower. The excess was paid to the buyer, so each of them gained a significant cash benefit from the purchase. In a brief judgment assessing damages dated Jun 30, 2025, Justice Aidan Xu found that UOB had suffered losses from the concealment of the subsidy, for which he awarded about S$50.8 million in 'excess loans' losses. This formed the bulk of the damages. UOB was also compensated for lost profits it could have earned through lending its funds to other customers, a component known as the credit spread. The court accepted UOB's evidence that there was sufficient demand for loans. Other awards included S$720,535 for the cost of funding the loans; S$967,093 for the credit spread and S$180,053 for investigation expenses, including staff time and private investigator fees. However, Justice Xu found that UOB had failed to mitigate its losses by not selling the repossessed condo units when there was a recovery in the property market in 2017. 'UOB need not have sold (the units) in the midst of softening conditions, that would have been a risky course of action,' said Justice Xu in his brief remarks. 'But when the market turned in 2017, UOB should have started selling at that point.' He also rejected UOB's argument that it was reasonable to delay mitigation while awaiting the outcome of the lawsuit. 'Wait and see is not what the law requires,' he said. Justice Xu also pointed out that UOB's loss was reduced through mortgage repayments and rent collected from the properties, which amounted to S$37.2 million, and that sum should be deducted from the total award. 'Notwithstanding the award, UOB intends to appeal the decision,' a UOB spokesman said in a statement to The Straits Times. THE STRAITS TIMES
Straits Times
2 days ago
- Business
- Straits Times
DBS shares rally to a new record as STI clocks yet another high
Find out what's new on ST website and app. Shares of DBS, which is the largest constituent of the STI, has gained more than 6 per cent to date this year. SINGAPORE - DBS shares rose to a new high on July 18, bringing the Straits Times Index (STI) to a fifth consecutive record in intraday trade this week. As at 9.04am, DBS hit $47.05, 0.8 per cent or 37 cents above its previous day's closing price of $46.68, with 620,800 shares changing hands. By 11.31 am, it had eased to $46.91, still up 0.5 per cent with some 1.6 million shares transacted. The STI rose to 4,180.95 points, extending its winning streak. On July 17, it reached a high for a fourth consecutive trading day, hitting an intraday peak of 4,163.45 before closing at 4,161.43. With a market capitalisation of $132.7 billion, DBS is the largest constituent of the STI. Year to date, the lender has gained more than 6 per cent. DBS will post its earnings results for the first half year on Aug 7. In May, its first quarter earnings fell marginally to $2.9 billion, 2 per cent lower than the $2.95 billion posted in the year-ago period. The STI crossed the 4,000 threshold for the first time on March 28. It has advanced by nearly 10 per cent in the year to date. Broader market The other Singapore banks were also trading higher on July 18. Top stories Swipe. Select. Stay informed. Singapore 30% of aviation jobs could be redesigned due to AI, automation; $200m fund to support workers: CAAS Singapore Alleged Kpod peddler filmed trying to flee raid in Bishan charged with 6 offences Business Global fintech firms expanding in Singapore with larger offices, APAC hubs Singapore UOB awarded $17.7 million in civil suit against Lippo Marina Collection over inflated housing loans Life Kinokuniya opens third bookstore in Raffles City, weeks ahead of schedule Singapore 5 foreigners charged over scheme to deliberately get arrested in S'pore to sell sex drugs Life F1 Singapore Grand Prix: Music acts Lewis Capaldi, Clean Bandit, Spice Girls' Melanie C added World Trump threatens to sue WSJ over story on alleged 2003 letter to Epstein As at 11.31 am, OCBC was up 1.1 per cent to $17.26, with 2.8 million shares traded. UOB climbed 0.1 per cent to $36.82, with 889,800 shares transacted. Year to date, OCBC has gained 2.3 per cent and UOB, 1.2 per cent. Other STI constituents, such as offshore and marine specialist Seatrium and Chinese vesselmaker Yangzijiang Shipbuilding, were some of the most heavily traded stocks by volume.
Straits Times
2 days ago
- Business
- Straits Times
UOB awarded $17.7 million in civil suit against Lippo Marina Collection over inflated housing loans
Find out what's new on ST website and app. UOB was also compensated for lost profits it could have earned through lending its funds to other customers, a component known as the credit spread. SINGAPORE - UOB has been awarded $17.7 million in claims against Indonesian developer Lippo Marina Collection (LMC) and two property agents, Mr Goh Buck Lim and Ms Aurellia Ho, in a long-running civil suit that began in 2014. The High Court's assessment of the damages dated June 30, 2025, follows a key ruling by the Appellate Division of the High Court, which in 2022, overturned an earlier judgement and found LMC, a unit of Lippo Group, liable for conspiring with the property agents to mislead the bank into disbursing inflated housing loans. The police commenced investigations into LMC following the October 2022 court ruling. The court noted that the conspiracy caused UOB to suffer substantial losses after it financed more than 100 per cent of the purchase prices of 38 condo units in Marina Collection, a high-end waterfront residential enclave developed and sold by LMC. UOB had granted approximately $182 million in home loans between December 2011 and September 2013 to the purported purchasers of the 38 units, all of whom defaulted on their loans by April 2015. UOB, represented by a legal team led by Mr Eddee Ng of Tan Kok Quan Partnership, had sought to recover $92 million in losses. The court recognised about $53 million in claims but deducted $37.2 million to account for repayments and rental income collected by the bank. UOB also received $2.3 million in statutory interest. The lawsuit centred around a rebate scheme concealed from UOB. Top stories Swipe. Select. Stay informed. Singapore Up to 30% of aviation jobs would have to be redesigned because of AI, automation: CAAS Singapore Alleged Kpod peddler filmed trying to flee raid in Bishan charged with 6 offences Business Global fintech firms expanding in Singapore with larger offices, APAC hubs Singapore 5 foreigners charged over scheme to deliberately get arrested in S'pore to sell sex drugs Life F1 Singapore Grand Prix: Music acts Lewis Capaldi, Clean Bandit, Spice Girls' Melanie C added World Trump threatens to sue WSJ over story on alleged 2003 letter to Epstein Asia Appointment of Malaysia's new chief justice eases controversy over vacant top judge seats for now Singapore SPCA appoints Walter Leong as new executive director The 124-unit Marina Collection in Sentosa Cove was launched for sale in late 2007, but only 42 units were sold by March 10, 2011, after a series of cooling measures were introduced. The courts heard that for subsequent condo purchases , LMC gave substantial 'furniture rebates' of 22 to 34 per cent that were used to offset the cash payments required for the purchase . These subsidies, undisclosed to UOB, led the bank to grant larger loans based on the full sale price stated in the purchase agreements. At the time, banks were allowed to lend up to 80 per cent of the purchase price of a residential property. UOB's loans exceeded the cap based on the inflated purchase prices. However, the actual purchase prices were significantly lower. The excess was paid to the buyer, so each of them gained a significant cash benefit from the purchase. In a brief judgement assessing damages dated June 30, 2025, Justice Aidan Xu found that UOB had suffered losses from the concealment of the subsidy, for which he awarded about $50.8 million in 'excess loans' losses. This formed the bulk of the damages. UOB was also compensated for lost profits it could have earned through lending its funds to other customers, a component known as the credit spread. The court accepted UOB's evidence that there was sufficient demand for loans. Other awards included $720,535 for the cost of funding the loans; $967,093 for the credit spread and $180,053 for investigation expenses, including staff time and private investigator fees. However, Justice Xu found that UOB had failed to mitigate its losses by not selling the repossessed condo units when there was recovery in the property market in 2017. 'UOB need not have sold (the units) in the midst of softening conditions: that would have been a risky course of action,' said Justice Xu in his brief remarks. 'But when the market turned in 2017, UOB should have started selling at that point.' He also rejected UOB's argument that it was reasonable to delay mitigation while awaiting the outcome of the lawsuit. 'Wait and see is not what the law requires,' he said. Justice Xu also pointed out that UOB's loss was reduced through mortgage repayments and rent collected from the properties, which amounted to about $37.2 million and that sum should be deducted from the total award. 'Notwithstanding the award, UOB intends to appeal the decision,' a UOB spokesman said in a statement to The Straits Times.
Business Times
4 days ago
- Business
- Business Times
Singapore shares rise to new high; STI up 0.3%
[SINGAPORE] Shares on the Singapore bourse closed higher on Wednesday (Jul 16), marking the third straight day the benchmark Straits Times Index (STI) hit a new high. Other regional markets ended lower, amid signs of rising US inflation that is dampening investor sentiment. The STI rose 0.3 per cent or 12.43 points to close at 4,132.25 – just shy of its intra-day peak of 4,132.41. Across the broader market, advancers outnumbered decliners 384 to 178, with 1.5 billion securities worth S$1.3 billion traded. The top gainer on the benchmark index was City Developments (CDL) , which rose 6.3 per cent or S$0.35 to S$5.92. The property developer's shares surged on Wednesday after it announced that its board director Philip Yeo, who had backed executive chairman Kwek Leng Beng in his boardroom battle against his son, would be retiring. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The biggest decliner was CapitaLand Integrated Commercial Trust . The counter fell 1.4 per cent or S$0.03 to S$2.19. The trust was also the most actively traded counter by volume, with 27.3 million units worth S$59.8 million traded. Regional bourses mostly ended Wednesday lower. Japan's Nikkei 225 was down 0.04 per cent, and South Korea's Kospi was down 0.9 per cent. Australia's ASX 200 fell 0.8 per cent, and Hong Kong's Hang Seng Index fell 0.3 per cent. Their performance follows Tuesday's release of figures showed that the US consumer price index – an indicator for inflation – had risen 2.7 per cent year on year in June, up from 2.4 per cent the month before. Alvin Liew, senior economist at UOB, said that the higher consumer price index figures for June show 'clearer marks of tariff-induced price increases'. However, he expects the US Federal Reserve to remain patient in cutting interest rates amid uncertainty over the impact of US tariffs. UOB continues to hold the view that there would be three rate cuts of 25 basis points each in September, October and December.
Business Times
4 days ago
- Business
- Business Times
Security and compliance among concerns of banks in granting API access to fintechs
[SINGAPORE] Security and compliance concerns are top of the list when Singapore's brick-and-mortar banks decide whether to grant fintechs Application Programming Interface (API) access to the financial data, particularly that of the banks' small and medium-sized enterprises' (SME) clients. DBS, OCBC and UOB told The Business Times that they provide API access to only certain fintech platforms. BT understands that a critical mass of customers is needed before API access is considered, and that some banks provide this access for free to some platforms by bearing the costs of maintaining the API. APIs are sets of protocols that allow for different software programs to talk and exchange data. Fintechs, such as those seeking to give loans to SMEs, which have been barred from accessing the banks' client data have resorted to manually processing spreadsheets and pdf documents from their SME customers. The process would be much smoother if these fintechs are able to just pull the data from their customers' banks. Think tank Fintech Nation on Jul 7 released a report highlighting this lack of API access to fintechs, which could hamper the growth of financial services for SMEs. OCBC has set up API connections for fintech platforms with a more than 30 per cent share of total API calls, said Adriano Ortega, head of implementation and client services, global transaction banking at OCBC. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'When evaluating potential API connectivity with other parties, several key considerations come into play. These include the strength of the other party's cybersecurity risk-management capabilities and the commercial viability of the business-use case,' he said. Connecting via API has to provide meaningful benefits to OCBC's business customers, while still maintaining security and reliability. For DBS, data privacy is a key concern in whether the bank would open up API access to a platform. This is to ensure that information accessed is used responsibly. 'DBS has guardrails in place to ensure that only platforms with robust data privacy infrastructure can access our customers' data. We provide access to our customers' data via API integrations to platforms which meet these standards, and have done so for several years,' said a DBS spokesperson. UOB offers API access for customers to support specific business operations. The bank did not elaborate which operations these were. 'Our active push for client digitalisation is in line with the nation-wide acceleration for enhanced digital connectivity. We also work together with the government and the industry to spearhead initiatives that advance the payment landscape,' said a UOB spokesperson. The Monetary Authority of Singapore (MAS) views credit – including that given to SMEs – as a key function of the financial sector. The regulator says it regularly reviews the potential to enhance both banks' and non-traditional lenders' ability to underwrite loans; it does so by tapping various available data sources while maintaining financial stability. MAS says that it is engaging banks, alternative lenders and SMEs as part of the review, and will welcome solutions from the industry. 'To deliver meaningful outcomes for SMEs, the proposed solutions must be commercially viable and sustainable, while carefully balancing costs and benefits for all parties involved,' said a MAS spokesperson.
