DBS - DBS Group cut to $11.50 by RBS; Keeps Sell

Stock Name: DBS
Company Name: DBS GROUP HOLDINGS LTD
Research House: RBS

RBS lowers DBS Group (D05.SG) target price to $11.50 from $12.00, keeps Sell rating on expected continued pressure on its net interest income, says Dow Jones.



RBS notes bank has “embarked on an admirable restructuring of its operations” in Singapore, HK, Southeast Asia, with management changes at HK operations. But low Sibor, increasing costs likely to weigh on earnings growth.



Cuts 2011, 2012 earnings forecasts by 5.6%, 1.3% respectively, based on 20bp and 5bp cuts in Sibor assumptions over both years. Adds gross loan growth also expected to moderate to “more sustainable” rates.



Share price up 0.1% at $14.12.