DBS

DBS Group is unlikely to get a lift as its 4Q net profit comes in on par with expectations. 4Q net profit rose 38% yoy but fell 6% qoq to $678m due to higher non-interest income (+40%) , lower allowances but its loans business (-2%) continued to struggle in the face of persistent mortgage margin pressure. Net interest margin fell to 1.79% from 2.02% a year earlier & 1.80% in the 3Q. Nothing exceptional in the results.

Going forward, net interest income segment is expected to remainweak as trading is expected to be very volatile. The stock currently trades at P/B of 1.32x vs its historical mean of 1.45x.