Singapores three largest banks are expected to report improved earnings as the global economy recovers from the Covid19 pandemic, said analysts. The banks are scheduled to release firstquarter earnings in the coming days. The largest of the trio, DBS Group Holdings, will be the first to do so on Friday, while smaller peers United Overseas Bank and OverseaChinese Banking Corp will report on May 6 and May 7, respectively.
Heres what analysts are expecting from the banks financial report cards, according to estimates compiled by Refinitiv as of Friday. Investors have appeared more optimistic about the banks prospects, with all three stocks gaining more than 15 this year as of Fridays close outpacing the benchmark Straits Times Index, which rose about 12.3 in the same period. Krishna Guha, an equity analyst at investment bank Jefferies, said in a report this month that a better earnings outlook could send the citystates bank stocks higher. The analyst has a buy rating on all three banks and raised his price targets for them in earlyApril.
DBS 33 Singapore dollars, implying an upside of around 14 from Fridays close.
OCBC 13.50 Singapore dollars, which is a 13 upside.
UOB 29.50 Singapore dollars, an upside of 12.
Guha said growth in the banks loans business is picking up, while lending margins may recover. Buoyant dealmaking activities in the financial markets could also boost service fees for the banks, he added.
Source FXPro