SG Bank

SG Bank: UBS has bank report. Note that Risk/reward highly favourable and share prices have deviated from the fundamentals, and at current valuations, risk/reward profile is highly favourable for the SG banks like OCBC and DBS…..

Tip banks to expect another strong year of loan growth, net interest margins to remain flat as most loans have already been repriced down. Main risk is policy intervention, not inflation as inflation, which is accompanied by a steeper yield curve, is typically good for the Spore banks prefer SG banks to HK banks, see better value in Sore banks, which trade at 1.6x 2010 adjusted book (ROE 14.6%), vs HK banks at 2.9x (ROE 17.1%)