DBS

DBS: Deutsche hosted co. in its investors conference. Key discussion topics are outlined below: Loan growth remains healthy - total loans grew 3% QoQ in 1Q12, and DBS believes its full year target of 11-12% growth is still achievable. Expect growth to be broad based. Trade finance still a key driver, albeit starting to slow. DBS believes key downside risk to loan vol remains a sharper-than-expected slowdown in China, though its base case is a moderate slowdown in Asia in 2H12 with domestic consumption remaining robust. Mgt indicate current loan pipeline remains healthy enough to maintain guidance. Because DBS's mortgage demand is mainly driven by local customers, control measures (mainly aimed at foreigners) haven't really affected the bank. Mgt noted underlying demand remains strong and a pick-up in investment property demand recently. With average LTV of 54%, DBS appears to have a comfortable buffer against potential credit losses. Margins are holding up well, while DBS indicated it will remain focused on growing fee revenue. The bank has built up $10bn of liquidity (of which $4b deposit, $4b wholesale and $2b other) as a buffer against potential market volatility