Singapore banks

CGS-CIMB keeps UOB as top bank sector pick despite underperforming NIM expansion

SINGAPORE (June 3): CGS-CIMB Research is keeping United Overseas Bank (UOB) as its top pick among the Singapore banks, despite the bank’s NIM expansion underperforming compared to its peers.

According to lead analyst Andrea Choong, UOB’s valuations are inexpensive at 1.0 times FY19F price-to-book value (P/BV) – close to 1 standard deviation below its long-term mean. The bank also offers a FY19F dividend yield of 5.1%.

RHB stays 'overweight' on Singapore banks as MAS keeps policy unchanged

SINGAPORE (Apr 15): RHB Group Research is maintaining its “overweight” call on Singapore banks, after the Monetary Authority of Singapore (MAS) on Friday kept its monetary policy settings unchanged amid a worsening global growth outlook and low inflation.

MAS uses the exchange rate as its main policy tool. After tightening policy twice last year, the central bank last week left the slope and width of the currency band unchanged, as well as the level at which it is centred.

MAS says the stance is “consistent with a modest and gradual appreciation path” of the currency band.

DBS, UOB poised for better NIMs and higher dividend yields, says Maybank

SINGAPORE (Feb 13): Maybank Kim Eng remains positive on the outlook of Singapore’s banking sector, with DBS and United Overseas Bank as its top picks for their gearing towards better net interest margins (NIMs) as well as better dividend-yield visibility.

This comes ahead of the release of DBS’s 4Q18 results on Feb 18, followed by UOB and Oversea-Chinese Banking Corporation (OCBC), rated “hold” with a target price of $10.95, on Feb 22.  

Banking on banks

SINGAPORE (Feb 1): Banks are increasingly turning into yield plays, which tend to do well when interest rates are not rising sharply.

And analysts expect the three local banks to continue to experience slow and steady growth this year and into 2020, global financial crises notwithstanding.

In a recent interview with The Edge Singapore, Harsh Modi, banking analyst at JPMorgan for Southeast Asia, indicated that Singapore banks stood out as the most visible in terms of margins and loan growth.

Why UOB is the better of two 'buys', according to DBS

SINGAPORE (Dec 4): DBS Vickers Securities is maintaining its “buy” for United Overseas Bank (UOB) and Oversea-Chinese Banking Corp (OCBC) with target prices of $29.50 and $13.20.

In a Tuesday report, analyst Lim Rui Wen notes that UOB is offering close to 5% yield and OCBC, at around 4%.

Singapore banks a 'buy' on higher ROE in medium term: Jefferies

SINGAPORE (Oct 11): Jefferies is reiterating its modestly bullish stance on Singapore within the global asset allocation.

The three local banks – DBS, UOB and OCBC – contribute about 40% weight of local market index.

The Singapore central bank chief has an upbeat outlook on the economy, though being cautious about slump in investment, if global sentiment are negatively impacted.

The Monetary Authority of Singapore (MAS) is due to announce its policy statement on Friday.

Shares in DBS drop after suffering worst performance in treasury and markets operation since Piyush took top job

(Aug 2): DBS Group Holdings Ltd. shares fell after second-quarter results suffered from what Chief Executive Officer Piyush Gupta described as the worst performance in its treasury and markets operation since he took the top job almost a decade ago.

See: DBS 2Q net profit up 20% to $1.37 bil from year ago; declares 60 cents interim dividend

This 'interesting' 2Q earnings season could be UOB's chance to shine: DBS

SINGAPORE (July 19): DBS Vickers Securities expects an “interesting” 2Q18 earnings season with diverging trends across Singapore’s banks as they continue to spend on improving technology infrastructure, with some potential for slight upticks in personnel costs for salary revisions.

While the research house has rated both UOB and OCBC at “hold” with target prices of $28.30 and $12.20, respectively, it prefers the former as a more attractive dividend play on expectations of at least a 40-cent interim dividend to be declared for the quarter.

Can Singapore banks weather the storm as surprise property cooling measures strike?

SINGAPORE (July 6): DBS Group Research is downgrading its recommendations for both Oversea-Chinese Banking Corporation (OCBC) and United Overseas Bank (UOB) – and slashing their target prices by up to 20%.

This comes after the government yesterday evening announced a couple of property cooling measures that will kick in with effect from today.

“Previous property cooling measures caused loan growth to half from a high of 16% after a year,” says lead analyst Lim Sue Lin in a Thursday report.

Overseas investors like Singapore banks and tech firm Venture: CGS-CIMB

SINGAPORE (June 11): CGS-CIMB Securities is reiterating a number of its top stock picks across various sectors following its recent marketing trip to Tokyo and Hong Kong.

There, the research house found that investors in indexed funds were generally “overweight” on Singapore banks and technology, mainly Venture Corp. The tech manufacturer is rated “add” by CGS-CIMB with a target price of $25.64, and valued at 15.4 times the 11-year average P/E.

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