Tuesday, May 3, 2011

DBS Group Holdings rated 'buy' by Nomura

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

Nomura Research in an Apr 29 research report says: "1Q record earnings of $807 million (+19% q-o-q, +52% y-o-y) was 10% ahead of Nomura and consensus in the range of $700 million-$720 million; on an annualised basis, DBS is looking at FY2011F net earnings of $3.22 billion versus Nomura, consensus in the $2.84 billion-$2.91 billion range.

"Outperformance was across the board with loan growth beating expectations, net interest margin actually improved marginally versus expectations of further softness, strong non-interest income beat (trading income +75% q-o-q) and undershooting for both operating and credit costs.

"Balance sheet also strengthened, with non-performing loans ratios falling across all geographies, CASA share holding stable at 61% and core equity ratio a comfortable 11.5%. Target price of $16.7. MAINTAIN BUY."

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