Equity Analysis /
Singapore

SG : Banks - 1Q21F: Looking forward to a strong quarter

    Andrea Choong
    Siewkhee Lim
    Siewkhee Lim

    Head of Singapore Research

    CGS-CIMB
    14 April 2021
    Published by

    We expect DBS and OCBC’s 1Q21F results to be a showdown of wealth management and trading income strength, on the back of robust sentiment. Loan growth likely rebounded in 1Q21F from 4Q20 contractions while NIMs stabilised qoq. We expect 42bp/25bp of credit costs for DBS/OCBC in 1Q21F We think OCBC’s valuation of 1.1x FY21F P/BV (1 s.d. below 15-yr mean) looks more attractive vs. DBS at 1.4x FY21F P/BV (1 s.d. above 15-yr mean).