RHB has maintained DBS at “buy” with a higher target price of $30 from $25.20 previously as the brokerage’s research team believes the bank is on its way to a sustained return on equity (ROE) recovery in FY2021-FY2022F.

The team has also maintained its earnings forecasts for the FY2021F and FY2022F.

“Aside from lower credit costs, the pick-up in economic activities will underpin continued improvements in fee income growth and loan demand. Strategies to manage excess liquidity and deposit repricing should also help support net interest income (NII),” says the team.

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