External broker reports(aggregated public sources), RHB Invest

RHB Invest

RHB Investment Bank is one of the leading capital market players in Malaysia. Supported by an award-winning research team of experienced product specialists, RHB Group Investment Banking offers a full range of investment banking products and services covering primary markets, such as advisory (corporate & debt restructuring, mergers and acquisitions, takeovers), fundraising via both equity and debt instruments, and secondary markets including securities trading for both institutional and retail clients.

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

External broker reports(aggregated public sources)

RHB Investment Bank is one of the leading capital market players in Malaysia. Supported by an award-winning research team of experienced product specialists, RHB Group Investment Banking offers a full range of investment banking products and services covering primary markets, such as advisory (corporate & debt restructuring, mergers and acquisitions, takeovers), fundraising via both equity and debt instruments, and secondary markets including securities trading for both institutional and retail clients. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>At DBS Investor Day 2023 – Digital Transformation 2.0 held earlier this week, DBS's management quantified key achievements made since 2017 (when it first shared details on the bank’s digital transformation) and showcased how DBS has deepened its technology capabilities, become data-driven, and is achieving scale and effectiveness. See presentation slides in DBS's announcement dated 22 May 2023.</li><li>Maintain NEUTRAL on DBS with S$35.70 target price, 14% upside from the current DBS's share price with ~6% FY23F yield.</li><li>Over the next three years, DBS's ROE is expected to range between 15% and 17%, down from the high of 18.6% in 1Q23 – with the drags being NIM (Federal Funds Rate falling below 3%) and credit cost (through the cycle 18bps vs 10-15bps for FY23F). Offsets are expected to come from: Faster growth in capital-light high-ROE businesses such as wealth management, global transaction services (GTS), and treasury market sales (TMS); improved profitability in growth markets in India, Taiwan and Indonesia, and capital management.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

At DBS Investor Day 2023 – Digital Transformation 2.0 held earlier this week, DBS's management quantified key achievements made since 2017 (when it first shared details on the bank’s digital transformation) and showcased how DBS has deepened its technology capabilities, become data-driven, and is achieving scale and effectiveness. See presentation slides in DBS's announcement dated 22 May 2023.Maintain NEUTRAL on DBS with S$35.70 target price, 14% upside from the current DBS's share price with ~6% FY23F yield.Over the next three years, DBS's ROE is expected to range between 15% and 17%, down from the high of 18.6% in 1Q23 – with the drags being NIM (Federal Funds Rate falling below 3%) and credit cost (through the cycle 18bps vs 10-15bps for FY23F). Offsets are expected to come from: Faster growth in capital-light high-ROE businesses such as wealth management, global transaction services (GTS), and treasury market sales (TMS); improved profitability in growth markets in India, Taiwan and Indonesia, and capital management.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

DBS Group - Leveraging Tech Capabilities For Outperformance