Why DBS is still attractive despite O&G exposure

SINGAPORE (Nov 2): UOB Kay Hian remains bullish on DBS Group, maintaining a “buy” call with a target price of $18.98, despite the bank’s exposure to the oil and gas industry.

In a Tuesday report, analyst Jonathan Koh notes that DBS’ recent 3Q16 results exceeded earnings expectations of $993 million to report a $1.07 billion.

While the results saw a slight pickup in loan growth of 1.8% year-on-year, this was offset by net interest margin falling 1.77% on the steep correction in SIBOR/SOR as well as setting aside extra US dollar liquidity to mitigate adverse impact from the US money market, notes Koh.

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