OCBC is maintaining its “buy” call on DBS with $23.30 fair value as it expects the bank to continue to do well as interest rates look likely to head higher, says OCBC analyst Carmen Lee in a July 27 report.
Despite the uncertain global market outlook and management’s projection of 5% loans growth in 2015 after the strong double-digit growth of the past few years, the outlook remains fairly positive and management is expecting NIM (Net Interest Margin) to stay at the same level for the rest of the year.
In 2Q15, DBS posted earnings of $1.12 billion, up 15% on-year and down 12% on-quarter, and above market expectations of $1.08 billion based on a Bloomberg poll.
Total income grew 16% on-year and was down 6% on-quarter to $2.7 billion as both net interest income and fee income reached new quarterly highs.
NIM rose from 1.67% in 2Q14 and 1.69% in 1Q15 to 1.75% this quarter – the highest in 13 quarters, boosting Net Interest Income to $1.7 billion. The improvement was largely due to SGD loans re-pricing. A first-half dividend of 30 cents per share was declared, higher than 28 cents in 1H14.
Apart from the continuing strong performance from its Wealth Management, there were also strong performances from several units. Wealth Income grew strongly, up 34% in 1H15 to $342 million. This was followed by Cards, which posted 21% growth to $207 million.
In the Singapore mortgage market, DBS reported market share of 25.3%. For Bancassurance, DBS is now the No. 1 in Singapore based on 1Q15 market share for new business.
DBS is down 7 cents to $21.01 as at 10:50a.m.
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Despite the uncertain global market outlook and management’s projection of 5% loans growth in 2015 after the strong double-digit growth of the past few years, the outlook remains fairly positive and management is expecting NIM (Net Interest Margin) to stay at the same level for the rest of the year.
In 2Q15, DBS posted earnings of $1.12 billion, up 15% on-year and down 12% on-quarter, and above market expectations of $1.08 billion based on a Bloomberg poll.
Total income grew 16% on-year and was down 6% on-quarter to $2.7 billion as both net interest income and fee income reached new quarterly highs.
NIM rose from 1.67% in 2Q14 and 1.69% in 1Q15 to 1.75% this quarter – the highest in 13 quarters, boosting Net Interest Income to $1.7 billion. The improvement was largely due to SGD loans re-pricing. A first-half dividend of 30 cents per share was declared, higher than 28 cents in 1H14.
Apart from the continuing strong performance from its Wealth Management, there were also strong performances from several units. Wealth Income grew strongly, up 34% in 1H15 to $342 million. This was followed by Cards, which posted 21% growth to $207 million.
In the Singapore mortgage market, DBS reported market share of 25.3%. For Bancassurance, DBS is now the No. 1 in Singapore based on 1Q15 market share for new business.
DBS is down 7 cents to $21.01 as at 10:50a.m.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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