Stock Name: DBS
Company Name: DBS GROUP HOLDINGS LTD
Company Name: DBS GROUP HOLDINGS LTD
| Research House: CIMB | Price Call: BUY | Target Price: 14.00 |
CIMB Research has upgraded Singapore’s DBS Group (DBSM.SI), Southeast Asia’s largest bank, to outperform from underperform and raised its target price to $14.00 from $11.90.
CIMB said DBS’s third-quarter net profit was above its expectation and consensus forecast on the back of treasury gains and trade fees.
CIMB said DBS’s third-quarter net profit was above its expectation and consensus forecast on the back of treasury gains and trade fees.
This may be attributed to DBS’s initiatives to build its global trade services offerings to clients, CIMB said, adding that it may also reflect the trend of French banks pulling out of trade finance in Asia.
Loans had another strong quarter, but margins suffered as securities yields fell while deposit costs in Hong Kong rose, CIMB said. But this reflects the competition for local deposits across the world, it noted.
Key concerns are rising costs, as well as liquidity and potential non-performing loans from China, CIMB said. At 10:22 a.m., DBS shares were up 0.6% at $12.05.
DBS said on Wednesday it can ride out near-term economic uncertainties after posting a better-than-expected 6% rise in quarterly profit.
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