DBS

DBS: Has underperformed index by 4% and UOB by 7% YTD. This is a reflection of higher uncertainty in Mainland China where DBS has higher exposure. Deutsche highlights 1Q14 results should offer comfort level for investors. Deutsche further ressures investors that its HK ops remains poised to deliver sustainable growth. HK ops has been a consistent earnings contributor to DBS and the transformation has continued to work well. There is increased focus on trade finance lending (33% vs FY07: 18%), while fee income contribution is best among HK peers at 36%, with growing focus on mass affluent/wealth management segment. While DBS has cut its branch to 51 (-15% from FY11), profitability per branch has improved to $17m/branch in FY13 (CAGR of 21% since 2009), one of the highest among domestic peers in HK. Deutsche continues to prefer DBS over UOB, and maintains a Buy rating with a TP of $19.50