Singapore banks kept at 'overweight' by KGI with 'buy' for DBS, OCBC

Stock Name: DBS
Company Name: DBS GROUP HOLDINGS LTD

Research House: KGI Fraser

Price Call: BUY

Target Price: 22.38

Stock Name: OCBC Bank
Company Name: OVERSEA-CHINESE BANKING CORP

Research House: KGI Fraser

Price Call: BUY

Target Price: 11.63

Stock Name: UOB
Company Name: UNITED OVERSEAS BANK LTD

Research House: KGI Fraser

Price Call: HOLD

Target Price: 23.04

SINGAPORE (Mar 18): KGI has initiated coverage on Singapore banks with "overweight", despite interest rates going up.

It has called out DBS (target price: $22.38) as its top pick, while OCBC (TP: $11.63) takes second place; both with "Buy" calls. UOB (TP: $23.04) is the least favoured, which KGI keeps at "Hold".

According to KGI, as US Federal Reserve raises interest rates, net interest margin (NIM) is expected to go up.