DBS Group Dragging As Rates And Slow Loan Growth Weigh On Near-Term Growth

When I last wrote about DBS Group (OTCPK:DBSDY), I noted that “a credit loosening cycle in the U.S. and increased trade tensions could create some near-term challenges,” and those challenges have in fact materialized for this leading Singaporean bank. Still, the company has handled these challenges well and the growth outlook hasn’t been compromised all that much, particularly as credit and net interest margins have held up better than expected.

DBS Group shares have eked out a slight gain since that last piece due to the dividend (the share price is down modestly), and the shares have done about as well as OCBC (OTCPK:OVCHY) and the Singaporean market, while United Overseas (OTCPK:UOVEY) and Standard Chartered (OTC:SCBFY) have both done a little better. Despite a lackluster run over the last year or so, I still believe this is a very high-quality Asian bank with good leverage to growth in China, South Asia, and Southeast Asia, and though it might take a little time for the shares to work, I think it’s still a good name to consider.

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DBS Group Dragging As Rates And Slow Loan Growth Weigh On Near-Term Growth