SG : Banks - 1Q22F: Weighed down by risk-off sentiment

1Q22F earnings will likely be characterised by weaker wealth and treasury income, weighed down by risk-off sentiment amid market volatility. Credit costs likely stayed stable in 1Q22F, but watch out for revisions in the banks’ outlook for the rest of FY22F given the geopolitical uncertainty. Reiterate Overweight. We see continued share price upside as US Fed fund rate hikes filter into NIMs. For 1Q22F results, we think OCBC could offer a better risk-reward with valuation of 1.1x FY22F P/BV and +23% qoq rise in net profit.