DBS

DBS: (S$15.28) The only outperformer in 1Q on reduced provisions
- 1Q core net profit of $1.2b (+6% y/y, +20% q/q) beat estimates, compared to the lacklustre set of results released by its peers last week.
- Mainly led by wider NIM on higher SGD interest rates, while customer loans contracted.
- Non-interest income slipped, dragged by lower trading fees and investment banking activities.
- The key variance for its outperformance stemmed from zero general allowances
- Comparatively, DBS is trading at a discount to peers with 0.93 P/B, versus UOB's 1.02x and OCBC's 1.05.