While investors in North America and Europe have been
selling off bank stocks to a degree that seems to price in a coming
recession, Singapore’s banks have held up a little better. I was a
little concerned about China-related macro risk and efforts to slow/cool
Singapore’s housing market in reference to DBS Group (OTCPK:DBSDY) back in August,
but the shares have done okay next to most global indices as housing,
construction, and manufacturing-related demand have all held up
reasonably well.
I continue to believe that DBS
Group shares look appealing barring a global recession and/or a serious
deterioration in China. Loan demand is likely to slow noticeably next
year, but DBS Group should still be poised to benefit from some rate
moves while credit quality remains benign. Longer term, I expect
meaningful leverage from the company’s investments in digitalization and
market entry/development in India and Indonesia.
Read more here:
DBS Group Executing On A High-Quality Growth Plan
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