UOB/Banks: CIMB Overweight on Banks with UOB as Top Pick, followed by OCBC but Underweight on DBS. We note that view similar to Goldman Sachs recent note, tipping DBS to be hurt most by a weak Sibor, while UOB would be the least affected given its conservative stance…
Notes that SG banks have lagged the local market due to a persistent low i/r environment and the main investment case for SG banks now lies in their relative attractiveness after being laggards. CIMB has net profit estimates of 4Q results at, DBS: $666m, UOB: $596m and OCBC: $565m, while Goldman Sachs Tips DBS to post earnings of $662m (-8% qoq), OCBC: $495m (-2%) and UOB $554m (-8%)….
Highlights surprise factors for SG banks could stem from greater traction in overseas loans, sustained fee income growth from transactional activities and trading. UOB scheduled to report results tomorrow.
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