In a March 11 note, Thum remains “positive” on banks, maintaining “buy” on all three local bank stocks following the release of their results for FY2023 ended Dec 31, 2023. “Net interest margins (NIMs) may see flat growth despite the higher-for-longer interest rate environment, but a recovery in loan growth and fee income will uplift profits.”
PhillipCapital Research senior analyst Glenn Thum is staying “overweight” on Singapore’s three banks despite “mixed” performance in February, with shares in DBS Group Holdings up 4.7% and shares in United Overseas Bank (SGX:U11
) (UOB) down 1.4%.
“In comparison, DBS was the best performer, likely due to the increase in dividends and 1-for-10 bonus share issue, which would boost their dividend yield to 7.2%,” writes Thum.
