SINGAPORE (Mar 13): RHB Group Research is keeping “neutral” on DBS with a lower target price of $21.50 from $24.80 previously.

The research house has also lowered its sustainable ROE assumption to 11.2% from 12.6%, while FY20 earnings were cut on lower net interest margin (NIM) and higher provisions assumptions. This follows yesterday’s declaration by WHO on a global pandemic and the sharp fall in crude oil price.

In a Thursday report, analyst Leng Seng Choon says, “Given DBS’ higher earnings sensitivity (versus peers), at the lower Fed Fund Rate (FFR), DBS is the least preferred amongst Singapore banks.”

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