Looking for a trusted Stock Remisier? Augustine works closely with a small group of clients - providing regular market updates, Bazi & astrology wealth insights, and clear guidance to invest with confidence.
Credit Bureau Asia two DWBs launched in Singapore – kicking off one of CBA’s new prospective revenue streams. CBS’s member bureaus will rise from 31 to 36.
We think that DFBs could add at least c.3-6% in incremental revenue by endFY26F depending on the banks’ ramp-up. DWBs will augment this further.
Reiterate Add. Growth prospects abound, though earnings accretion may take time. Meanwhile, ASEAN border re-openings will support growth.
GLDB and ANEXT – 2 new DWBs launched in Singapore
Two of the four digital banking licence awardees in Singapore (Green Link Digital Bank [GLDB] by Greenland Financial’s consortium and ANEXT Bank by Ant Group) launched their digital wholesale banking (DWB) businesses in the past week.
GLDB will focus on integrating technological solutions to supply chain financing for SMEs, while ANEXT aims to serve local and regional micro and SMEs engaging in cross-border operations for global expansion.
Including the two digital full banks (DFBs, Grab and Singtel’s GXS Bank and Sea Limited’s digital bank) and Trust Bank (rebranded from SC Digital Bank), Credit Bureau Asia (CBA) count of bureau members will rise to 36.
Credit Bureau Asia earnings upside will depend on products and value proposition
As Credit Bureau Asia Singapore drives the lion’s share of CBA’s revenues (c.44% of FY21 revenue), additional bureau members offer scope for incremental revenue contribution.
This is based on the volume of credit enquiries from these banks and portfolio risk reviews the banks undertake.
That said, we highlight that most of the incremental income will stem from DFBs given their focus on retail banking (potential transaction volumes in the millions) vs. DWBs (volumes in hundred-thousands).
Further, the ramp-up of operations will depend on the types of products offered (e.g. credit cards garner larger volumes compared to unsecured retail loans or mortgages) and value proposition (e.g. rates, user experience).
Credit cards from DFBs could add c.3-6% revenue upside in FY26F
Our scenario analysis for incremental revenue to CBA from DFBs for new credit enquiries assumes that the DFBs augment the number of credit and charge card holders in the industry by c.2-10% by lending to the unbanked and underserved segments.
This could raise CBA’s revenue by c.3-6% by end-FY26F (Figure 1). Credit enquiries for other retail products and data packets to DWBs (priced at higher rates) could lead to further revenue streams for CBA.
We expect earnings visibility for CBA to emerge only in the medium term once the banks firm up their growth strategies.
Valuation/Recommendation
Reiterate Add with DCF-based TP of S$1.20. Growth prospects abound for CBA (licencing process to collect and use commercial credit information from FIs, regulation of buy-now -pay-later providers by MAS), but these initiatives will likely take time to materialise.
CBA remains on the lookout for synergistic M&A.
Downside risks: rising inflation, suppressing credit demand (and therefore enquiries).
Credit bureau share price
You can find the full report here and the company website here
Be A Valued Client of Augustine in Lim&Tan Securities
Receive Augustine’s regular stock updates via Telegram plus full access to his private client hub with exclusive research, astrology and Bazi insights.
(Exclusive Readings for Clients Only)
BaZi investment loss prediction is an ancient yet highly practical approach to understanding financial timing using Chinese astrology. In BaZi (八字), also known as the Four Pillars of Destiny, your birth chart reveals how the Five Elements (Wood, Fire, Earth, Metal, Water) interact to shape your personality, opportunities, and wealth potential. Among these, the Wealth
When market sentiment turns upbeat and investors begin looking beyond the large-cap names for fresh drivers of growth, Singapore’s small cap stocks could quietly offer outsized upside. With interest rates stabilising, infrastructure spending picking up, and niche sectors recovering, several overlooked companies may shine in the next market rally. Here are four SGX-listed small-caps worth
You don’t need to be the next Warren Buffett to succeed in investing. But you do need to find your own investing style – so that you compound your wealth that fits your personality, lifestyle, and long-term goals. The truth is, there’s no “one size fits all” approach. Some investors love diving into spreadsheets. Others
Investing in the stock markets can be tricky and you will probably lose hell a lot of money even before making any if you lack the right guidance. Thus, as a beginner, it’s important to avoid making the common mistakes that others have made. In fact, these mistakes offer paramount lessons for you to cut