DBS

DBS: DBS was still able to deliver resilient 1Q15 earnings on strength in non-interest income and benign asset quality. As 2Q15 draws to a close, aside from the expected NIM improvement, its HK operation should benefit from buoyant market activity, a geographical edge unmatched by peers.
In DBS HK, the strength in market liquidity will potentially help non-interest income as well as keeping asset quality trends intact, as property prices remain elevated while liquidity inflow should keep funding costs low.

Deutsche continues to favour DBS, remains their top pick among SG banks, given its better risk-rewards and upside catalysts vs its peers. Aside from more favourable trends, other upside catalysts include its CASA deposit franchise, benefiting from an eventual pick-up in USD rates and more steady FX geographical exposure than peers. The house reiterates its BUY rating with TP: $23.20.