SINGAPORE (Nov 8): Phillip Capital is maintaining its “buy” rating on DBS Group with a higher target price of $26.83 despite 3Q17 PATMI of $0.8 billion missing its estimate by 38.5% due to accelerated provisions of $815 million.
See: DBS reports 25% lower 3Q earnings of $802 mil on higher net allowances
Among the positives, analyst Jeremy Teong says 3Q17 wealth management income came in 21% higher y-o-y at $546 million supported by a 19% rise in investment products. Wealth management AUM increased to $195 billion in 3Q17 compared to $175 billion in 2Q17. About $15 billion came from the ANZ integration and $5 billion from the DBS wealth management franchise.