- We hosted DBS (SGX:D05) in our regional financials conference held during 6-7 Dec 2023. With the Fed fund rate outlook still being rather uncertain, DBS reiterates its view that there is an inverse relationship between NIMs and growth.
DBS expects stable NII y-o-y in FY24F
- - Read this at SGinvestors.io -
- According to DBS, there is about S$10bn of loans will be repriced in 4Q23F, ~S$40bn in FY24F, and ~S$50bn from FY25F onwards.
- - Read this at SGinvestors.io -
Balancing growth and margins
- DBS thinks loan growth could total ~2-3% in FY24F as the rate of repayments from customers remain high given the elevated interest rates.
- We note that the bank had conscientiously allowed some trade loan volumes to run off in 3Q23 as margins ran thinner given the aggressive competition amongst peers, impeding on ROE.
- In essence, competitive dynamics amid the uncertain macroeconomic environment makes a more precise loan growth outlook for FY24F a tough call at this juncture, in our view. Stronger loan growth amid Fed rate cuts are an upside risk.
Citi Taiwan will aid its business in scaling up
- Read more at SGinvestors.io.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
Andrea CHOONG CGS-CIMB Research | LIM Siew Khee CGS-CIMB Research | https://www.cgs-cimb.com 2023-12-12
Read also CGS-CIMB's most recent report:
2024-02-07 DBS Group - Keep Yielding On.
Price targets by 4 other brokers at DBS Target Prices.
Listing of research reports at DBS Analyst Reports.
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