DBS

DBS: CLSA maintains Sell with higher TP of $13.30 from $12.90
- 1Q16 netprofit of $1.2b was 13% ahead of expectations but of low quality, driven by trading income, a one-off gain and lower provisions.
- Positive surprise from improvement in CET1 but was driven by FX.
- Management retained 2016 guidance. Y/Y growth to be in the lower end of 7-8%, some deterioration in asset quality. Expects earnings growth in 2016.
- CLSA continues to remain concerned about outlook, expects earnings contraction instead.