DBS

DBS: Analyst meeting for DBS Hong Kong (DBS HK) was held, with targets of DBS HK at 12%-15% ROE and 1.3%-1.4% ROA over the medium term, higher than 2010’s ROE of 11% and ROA of 1.06%. Priority of bank would be to benefit from trends from internationalization of China and its RMB…

Co will look to penetrate the SME segment through a differentiated loan strategy and also grow its savings deposit base through building up its brand and transactional platform. Houses covering stock generally view strategy as reasonable but highlight that execution will be key. HSBC maintains Overweight on DBS at TP$17.80, GS maintains Buy at TP$17.30 and BNP maintains Buy at TP$15.80 but prefers OCBC.