“We use PPoP/gross loans as an indicator of resiliency to withstand shocks from deterioration in asset quality,” explains Koh.
SINGAPORE (June 8): UOB Kay Hian is remaining “overweight” on Singapore’s banking sector after reviewing the city state’s three banks based on asset quality as well as ability to generate pre-provision operating profit (PPoP).
In a Thursday report, analyst Jonathan Koh names DBS and Oversea-Chinese Banking Corporation (OCBC) as his top two “buy” picks with target prices of $23.30 and $11.70 respectively.
