Banks: MAS estimates that lending was up 1.7% mom in Nov to $318.5b, for the 12th consecutive mth of growth. This beats analyst expectations and eases earlier fears of a sharp slowdown in lending activity. Both business loans and consumer housing loans continued to expand.
Loans to the 3 major industry sectors - i) building & construction, ii) financial institutions, incl fund mgt co & Reits, iii) transport, storage & communication - all rose over the month.
DBS: Morgan Stanley maintains at Overweight with $16.75 target.
Expects DBS to produce the strongest EPS growth of any Spore bank to 2014, largely driven by lower debt charges, which the mkt has missed. Sees DBS as offering the best value in the industry with the most upside to the price target. Believes the market has been overly focused on the risks of a sustained low interest rate environmt & execution risks related to the transformation program, but these are likely already priced in.
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