Last month’s removal of the dividend cap on Singapore’s three banks has played out its impact, say CGS-CIMB Research analysts Andrea Choong and Lim Siew Khee. 

Choong and Lim are maintaining “neutral” on the banking sector here, with “add” calls on all three banks. The analysts set target prices of $32.70 for DBS Group, $13.75 for Oversea-Chinese Banking Corporation (OCBC) and $29.00 for United Overseas Bank (UOB).

“DBS Group’s earnings were supported by low credit costs in 1HFY2021, resulting in total impairment provisions of just $89 million (FY2020: $3 billion). Its key revenue drivers of wealth and treasury income remained strong in 2QFY2021, albeit normalised from its record-high level in 1QFY2021,” write Choong and Lim.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook