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3 BIG Spore banks ....:))

Yes ALL 3 banks are now powering up .....to welcome DBS result on Friday. 
( choose before mkt opens ....for a good closing on Friday ) 
UOB has crossed 26.50 and shld see 27 before May 6th ( result ) 
OCBC is seated above $12 ......and see what the new CEO can do now. 
Dyodd ( oh and we still dont kn what is 2021 dividend payout ) 
Happy investing. 

 

Over 1m shares are cleared at the $12 level w most sellers taken out . 
So this forming a good support very soon . 
Result 7th May , just awaiting patiently to see how much of improvement over Q1 2020 . 
Dyodd

 

 

CONGRATULATIONS ......finally ALL 3 banks crossed the 29, 26 and 12 critical resistance to support  ( ok DBS a little weak w result this Friday ) 

BUT UOB and OCBC are advancing strongly as they are STILL trading aro 1.1X book value .....
Dyodd
Happy investing. 

 

- MQ has a Neutral rating for DBS with a price target of S$30.00/share
- MQ has an Outperform rating for OCBC with a price target of S$13.00/share
- MQ has an Outperform rating for UOB with a price target of S$29.00/share
All 12-month target prices above are based on a price-to-book methodology.

 

Next week will the start of banks result season ...leading w DBS on 30th Morning before mkt opens 
Expected to be good as we have a low base for last yr Q1 .  Further I am also expecting a record wealth mgt fee for all 3 banks. 
Over the last mths .....fund has flow into Spore esp some from HK etc. 
NOTE : UOB n OCBC are both still trading at below 1.1X its book ......at better times 1.3/4 X is very possible 
All BAD loans are provision for and in fact exceeded ( when will this return to book ) .  Dividend update. 
Happy investing. 

A 2020 global wealth report by Boston Consulting Group found that Singapore is the third-largest hub for cross-border wealth, with total bookings in 2019 exceeding US$1 trillion.   




 

 

OCBC is the last to try crossing $12 a super resistance ....but once cross .....HMM
It come under attack several times ......with result 7th May ....let see 
Also new CEO from HK cld be more aggressive . 
Dyodd

 

https://www.scmp.com/business/banking-finance/article/3130332/dbs-buys-13-cent-stake-shenzhen-rural-commercial-bank

 

Analysts bullish on Singapore banking sector ahead of 1Q21 results

Analysts from UOB Kay Hian Research and DBS Group Research are expecting Singapore banks to report strong earnings recovery for the 1QFY2021 ending March when results  are reported in the coming weeks.
UOB Kay Hian analyst Jonathan Koh maintains his &lsquo overweight&rsquo rating for the sector in a research report dated April 20.
He forecasts DBS Bank' s net profit for  the1QFY2021  to grow 22.3% y-o-y and 40.7% q-o-q to $1.42 billion. For the Oversea-Chinese Banking Corporation (OCBC), he expects net profit to grow 68.6% y-o-y and 3.9% q-o-q to $1.2 billion.
DBS analyst Lim Rui Wen agrees that banks will continue to show earnings recovery in 1Q extending through the year. She forecasts a 23% y-o-y earnings recovery across Singapore banks for FY2021.
The analysts cite stable net interest margins (NIM), higher non-interest income, loan growth, and lower credit costs as driving factors for the banks&rsquo performance.
Koh expects NIM for both banks to remain stable, forecasting 1QFY2021 NIM of 1.48% and 1.55% for DBS and OCBC respectively. Lim agrees that NIM will continue to be supported in light of the  move by the banks to cut interest rates on basic tier flagship accounts at the start of the year.
The stable NIM should drive net income interest as loans grow for the period driven by the recovering economy and stronger lending activities.
&ldquo We believe Singapore banks are on track to meet their FY2021 guidance, as credit demand continues to recover. Bright spots for loan growth include mortgages, loans arising from trade diversification investments, sustainability-related loans, battery and chip supply chains, amongst other corporate loans,&rdquo says Lim in an April 19 report.
Both analysts anticipate stronger non-interest income for the banks, driven by increased fees and commissions from trading, wealth management, and investment banking-related activities as the economy recovers.

In addition, they view that the expiry of the loan moratorium has stabilised the banks&rsquo asset quality. As of end-January, loans under moratorium stood at 1% for DBS and 2% for OCBC. For UOB, loans under relief (which are 90% collateralised and supported by government relief measures) made up 6% of its loan book.
The improving asset quality is expected to translate to lower credit costs, with lower provisions recognised by the banks in FY2021. Koh and Lim also anticipate better FY2021 dividends from the banks as dividend caps are gradually relaxed. Both analysts predict a two-stage process with dividend payouts incrementally boosted  between FY2021 and FY2022 back to pre-Covid levels.
Koh maintains &lsquo buy&rsquo ratings for both DBS and OCBC with target prices of $29.02 and $11.96 respectively, while UOB is unrated.
Lim maintains &lsquo buy&rsquo ratings on UOB and OCBC with target prices of $29.20 and $13.60 respective, while DBS is unrated.

Shares in DBS, OCBC and UOB closed at $29.02, $11.92 and $26.27 respectively on April 20.

 

DBS Group Research . Equity
19 Apr 2021

Off to a strong start

&bull Strong loan growth bodes well for net interest income amidst stable Net Interest Margins (NIMs)
&bull 1Q21 non-interest income expected to do well driven by trading income and wealth management, and recovery in loan-related and trade-related fees
&bull Asset quality largely stable post expiry of loan moratoriums banks to continue writing general provisions in the quarter
&bull Maintain BUY for UOB and OCBC with higher TPs of S$29.20 and S$13.60 on higher ROE assumptions, representing ~1.1X FY22F P/BV, below its 12-year average forward P/BV we expect firm earnings recovery q-o-q in 1Q21 on improving loan growth, higher noninterest income and lower credit costs 

https://researchwise.dbsvresearch.com/ResearchManager/DownloadResearch.aspx?E=gcbehkhfj

 

Yes DBS will be largest on its board, but its privately own and wonder how much it can help its growth ? 
Is not HK brand doing a great job their in SZ ? 

 

DBS TO ACQUIRE A 13% STAKE IN SHENZHEN RURAL COMMERCIAL BANK *** SINGAPORE, HONG KONG, INDONESIA, INDIA, CHINA, TAIWAN, 20 April 2021 - DBS Group Holdings Ltd (the &ldquo Group&rdquo ) wishes to announce that its wholly-owned subsidiary, DBS Bank Ltd (&ldquo DBS&rdquo ), has entered into an agreement and obtained approvals from Monetary Authority of Singapore (&ldquo MAS&rdquo ) and China Banking and Insurance Regulatory Commission, Shenzhen Office (&ldquo Shenzhen CBIRC&rdquo ) to subscribe for a 13% stake in Shenzhen Rural Commercial Bank Corporation Limited (&ldquo SZRCB&rdquo ) for RMB 5,286 million (SGD 1,079 million)1 (the &ldquo Investment&rdquo ). The Investment is in line with the Group&rsquo s strategy of investing in its core markets and accelerates its expansion in the rapidly growing Greater Bay Area (&ldquo GBA&rdquo ). 

This move is a little surprise ....why pay S$1B for a 13% share of a unknowm SZ bank ?  ALL under their control and never know HOW MUCH more $$ will drain 
Not much news on this .....any comment ? 
 

 

DBS, StanChart weigh bids as Citi retreats from Asia consumer business - sources
ue, 20 April 2021, 3:52 pm

SINGAPORE (Reuters) -Banks including DBS Group, Mitsubishi UFJ Financial Group (MUFG), OCBC and Standard Chartered are set to bid for parts of Citigroup' s consumer business in Asia, people with direct knowledge of the matter said.

The sale process will start within a couple of weeks, they added, declining to be named as they were not authorised to speak to media.

The move comes after Citi said it would exit from its consumer franchises in 13 markets, 10 of which are in Asia, as it refocuses on its more lucrative institutional and wealth management businesses in these markets.

Potential bids from the regional banks and StanChart, which makes most of its profit in Asia, underscores their growing appetite for businesses like credit cards and mortgages in a push to lock in long-term income growth.

The businesses Citi is exiting had $82 billion in assets and were allocated $7 billion in tangible common equity last year. Citi has plans to reposition its Asian consumer banking business from its " wealth centres" of Hong Kong and Singapore.

As Citi is not giving up its banking licences in most of the markets it is exiting, the sale of the consumer banking portfolios and branches will only appeal to lenders with existing presence in these countries, the people said.

" Asia is critical to our firm' s strategy, and we will allocate resources to drive profitable growth," a Citi spokesman in Hong Kong said, declining to comment on the sale process.

Representatives at Japanese lender MUFG and StanChart, and Sumitomo Mitsui Financial Group, which the sources said was another potential bidder, declined to comment.

" DBS has always been open to exploring sensible bolt-on opportunities in markets where we have a consumer banking franchise (China, India, Indonesia and Taiwan) and where we can overlay our digital capabilities," Southeast Asia' s biggest lender said in a statement.

In 2016, DBS bought ANZ' s wealth management and retail businesses in five Asian markets for about $80 million.

Citi' s sprawling India consumer business, comprising retail deposits, mortgages and credit cards, and its Taiwan business would be among the most valuable parts of its Asian consumer portfolio, the sources said.

Citi' s consumer banking business in the 13 markets accounted for $4.2 billion of the bank' s $74.3 billion revenue in 2020. All the markets it is exiting made a combined loss of $40 million in the consumer banking business in the same year.

INDIA ' JEWEL IN THE CROWN'

DBS, the only big foreign bank with a fully owned Indian subsidiary, is eyeing Citi' s India business, which is also set to attract StanChart and local lenders Kotak Mahindra Bank and Axis Bank, the sources said.

SBI Cards and Payment Services Ltd, a unit of State Bank of India, is also weighing a bid for Citi' s credit card portfolio in India, two of the sources said.

Citi' s India consumer business is valued at over $2 billion, according to four sources.

" India is the jewel in the crown and will command a better price than the other markets," one of the sources added.

Citi has been in India for decades and was among the first to introduce Indians to credit cards in 1987. It ranks as the sixth largest local card issuer with nearly 2.7 million cards.

Sources say Citi has a significant share in the premium segment, commanding higher spends per card of 10-25% versus the industry average. It is also among the top five wealth management players, with 35 branches and about 4,000 staff in the consumer banking segment.

Kotak Mahindra declined to comment, while Axis Bank and SBI Cards did not respond to a request for comment.

The other markets Citi is exiting as part of its new CEO Jane Fraser' s strategy include South Korea, Australia, mainland China and Thailand - countries where it does not have the necessary scale to compete with local rivals.

Singapore' s DBS and OCBC, Britain' s StanChart, and the Japanese lenders are also weighing bids for some of Citi' s Southeast Asia businesses, the people said.

Citi' s businesses in Australia and South Korea could attract interest from domestic banks, they added.

https://sg.finance.yahoo.com/news/exclusive-dbs-stanchart-among-potential-075250154.html

 

Sorry if u got me wrong . MR Heng is a great leader and hardworking man . Sporean are lucky still  to hv him aro ( at least my view here) 

Politic aside but many of these great organisation are running by the mid mgt/and lower mgt....people who can run the show and really surface as what the public see. U can hv a good leader but if they are so/so , u cant win much in major competition. 
Singtel is one example....( just my view ) ...a gp of soso mid mgt that darn not do MORE then needed .( hero die early /play safe) 
DBS totally different ( of course a good leader) or some private companies ( which I shld not list in case ppl are working there LOL) ....
Just my view. MAS need to look into all the different org ....esp that SGX ....how many good IPO won ?  How many companies has delisted n moved ? 
What happened to all the China link companies that are suspended etc.
just my view.

Goldfinger      ( Date: 20-Apr-2021 11:47) Posted: We need Tharman to inspire MAS again.. Tharman was a great and inspirational leader when he took charge at the MAS. FATABA      ( Date: 20-Apr-2021 11:45) Posted: normal OVER cautious .....we need more aggressive leader there/ who are not worry about their job. ...LOL

 

We need Tharman to inspire MAS again.. Tharman was a great and inspirational leader when he took charge at the MAS.

FATABA      ( Date: 20-Apr-2021 11:45) Posted: normal OVER cautious .....we need more aggressive leader there/ who are not worry about their job. ...LOL  Goldfinger      ( Date: 20-Apr-2021 11:44) Posted: MAS is taking a very very long time to lift the dividend cap and restrictions.  Why are they so behind the curve leh...

 

normal OVER cautious .....we need more aggressive leader there/ who are not worry about their job. ...LOL 

Goldfinger      ( Date: 20-Apr-2021 11:44) Posted: MAS is taking a very very long time to lift the dividend cap and restrictions.  Why are they so behind the curve leh...

 

MAS is taking a very very long time to lift the dividend cap and restrictions.  Why are they so behind the curve leh...

 

After weeks .....DBS and UOB has stayed above the 29 and 26 level ....OCBC is still attacking the all important 12 ( will it break ) 

Q1 result guildance coming up w DBS 30th morning  UOB 6th Morning and OCBC 7th Morning. 
It should be good as compare to last year (  a much lower base) . I wonder will there be an announcement of dividend adjustment ? 
Happy investing.
Dyodd 

 

When the next result announcement came, the banks will fly again...

 

OCBC is going for 12 again ....will it rise and stay above $12,  should know by this week 
Gd luck