CIMB in a Feb 10 research report says: "4Q11 net profit ($731 million) was above both our expectations ($700 million) and Street ($687 million) primarily on a low 4Q tax rate.
"Net interest income was strong as loans grew 4.9% and margins stayed flat at 1.73%. Importantly, deposit growth (+4.8% q-o-q) matched loans in a tight liquidity environment – evidence that DBS has diversified its client base out of its Singapore home base.
"A seasonally slow quarter was as expected but (1) stable margins; (2) healthy deposit growth; (3) Hong Kong looking more stable (NIM +10bp q-o-q); (4) improved capital ratios; and (5) below-peer valuations (1.1x P/BV) should support further outperformance. Unchanged price of $14.00, based on 1.1x CY12 P/BV (GGM). MAINTAIN OUTPERFORM."
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