Company Name: DBS GROUP HOLDINGS LTD
| Research House: CIMB | Price Call: BUY | Target Price: 17.28 |
Stock Name: UOB
Company Name: UNITED OVERSEAS BANK LTD
| Research House: CIMB | Price Call: HOLD | Target Price: 22.47 |
Singapore’s business loan demand was surprisingly good in August, boosting year-to-date system loan growth to 7.0%, CIMB says.
“The strong manufacturing loan growth could be related to foreign borrowings given the relatively low interest rates for SGD. If sustained, loan growth could go to low teens, potentially exceeding local banks’ loan growth guidance.”
But it keeps a Neutral call on the Singapore bank sector.
“The system is still flush with liquidity, but the margin outlook remains weak given the stiff deposit competition on the ground. Leading credit indicators suggest potential asset quality deterioration.”
It keeps DBS at Outperform with a $17.28 target, as 3Q capital-market-related fees could surprise positively, it keeps UOB at Neutral with a $22.47 target, given fair valuations and rates OCBC at Underperform with a $10.24 target on earnings volatility.
UOB is up 0.15% at $19.68, DBS is down 0.7% at $14.29 and OCBC is down 0.6% at $9.28.
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