not vested
DBS finished 3Q18 with a net profit of $1.4 billion.
One of the key reasons for its record net profit is loan growth from its business segments.
DBS saw its loan books grow by 8.2 percent year-on-year with Hong Kong, India and Indonesia growing at double-digit rate.
Net interest margin expansion was also another driving factor for the net profit improvement as its Singapore and Hong Kong business both saw net interest margin expansion.
DBS’ management expects the loan growth momentum to continue in 2019. They have guided for mid-single digit loan growth and continued net interest margin expansion.
While non-trade corporate loans are expected to slow, it is still expected to be around 6-7 percent.
Overall, DBS’ management sees a sustainable path towards an return-on-equity of 13 percent over the longer term.
BUY, TP $29.50; Current share price $23.51
Source: Shares Investments