Stock Name: DBS
Company Name: DBS GROUP HOLDINGS LTD
Research House: RBS
While earnings are decent, they mostly suggest a continuation of the same themes seen for most of 2010: loan margin pressure and strength in customer-based trading income.
Company Name: DBS GROUP HOLDINGS LTD
Research House: RBS
DBS Group (D05.SG) is off 1.4% at $14.60 in morning trade, underperforming the STI (down 0.6%) as global risk aversion dwarfs any optimism about the bank’s performance.
Additionally, the bank’s 4Q net profit is only marginally above analysts’ expectations, likely disappointing those who were expecting something more remarkable from the results and capping any potential upside for the stock.
Additionally, the bank’s 4Q net profit is only marginally above analysts’ expectations, likely disappointing those who were expecting something more remarkable from the results and capping any potential upside for the stock.
While earnings are decent, they mostly suggest a continuation of the same themes seen for most of 2010: loan margin pressure and strength in customer-based trading income.
More broadly, DBS has underperformed the STI over the past 12 months and this is likely to continue until the current bear market trends reverse.
RBS analyst Trevor Kalcic says he continues to “like DBS, and the rest of the sector, for its potential for incremental improvement” and has a $16.50 target for the stock.
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