Banks

Banks: DBSV tells investors ‘Time to Accumulate’. Highlight that given robust quality and capital there isn’t a better time to accumulate banks, with NIM and Sibor at cyclical lows, the only way to go is up…..

Notes that grp’s widening P/B discount to Asean peers (1.4x vs 1.8x) unjustified given the solid asset quality and capital indicators of SG banks, with ROEs expected to revert closer to 2007 levels. Adds that 3Q10 results could surprise with non-interest income being the ‘Wild Card’….

Prefers OCBC (TP $10.70) to UOB (TP $22.80) for exposure given its aggressive regional expansion plans and higher reliance on wholesale and private banking, placing OCBC highly geared to take advantage of any improved global sentiments.