DBS

DBS: JPMorgan views the acqn of RBS’ China assets as a small but positive transaction which involves the right geography & is part of the bank's strategy to generate 30% of group revenue from Greater China. House maintains Overweight call with $18.00 target. Adds it expects DBS to differentiate itself from the past on 2 aspects - good execution of plans & passing over unsuitable & costly M&A deals. Believes DBS could shape up as one of the biggest turnarounds amongst Asian banks in 2011.

DBS is acquiring RBS retail & commercial banking business in Shanghai, Beijing & Shenzhen for an undisclosed amount, giving it up to 25k RBS customers. The deal is expected to be completed within 6 mths. Shares are down 0.6% at $13.94, tracking the broad market pullback. See support at $13.70