Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. 

Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 16 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $180 billion in assets under advisement or management as of June 30, 2015. We have operations in 27 countries.

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Equity Bottom-Up

&nbsp;DBS Group posted solid third-quarter results. Net profit was steady at SGD 1.07 billion, excluding a one-off SGD 50 million funding valuation adjustment to the firm's derivatives position. Net interest income was strong, up 4% to SGD 1.8 billion against last quarter, driven by an improvement in net interest margin. Fees and commission fell 11% as weaker financial markets reduced brokerage and transaction-related revenue while investment banking revenue was also lower. Trading income was strong at SGD 286 million, ahead of our expectations.Our estimates are adjusted mainly on better-than-expected trading income year to date, but the change does not alter our fair value estimate of SGD 21.20. We continue to see DBS as the best positioned of its peers to benefit from the eventual increase in U.S. interest rates, given its relatively larger Singapore dollar deposits.We are maintaining our loan growth assumption of 6% in fiscal 2015 and expect a similar growth rate in fiscal 2016. While regional economies are slowing and overall loan growth was down 1% on constant currency on a quarter-to-quarter basis, management expects refinancing and corporate activities to support.Analysts:&nbsp;Michael Wu, CAIA &amp;&nbsp;Iris Tan, CFA

&nbsp;DBS Group posted solid third-quarter results. Net profit was steady at SGD 1.07 billion, excluding a one-off SGD 50 million funding valuation adjustment to the firm's derivatives position. Net interest income was strong, up 4% to SGD 1.8 billion against last quarter, driven by an improvement in net interest margin. Fees and commission fell 11% as weaker financial markets reduced brokerage and transaction-related revenue while investment banking revenue was also lower. Trading income was strong at SGD 286 million, ahead of our expectations.Our estimates are adjusted mainly on better-than-expected trading income year to date, but the change does not alter our fair value estimate of SGD 21.20. We continue to see DBS as the best positioned of its peers to benefit from the eventual increase in U.S. interest rates, given its relatively larger Singapore dollar deposits.We are maintaining our loan growth assumption of 6% in fiscal 2015 and expect a similar growth rate in fiscal 2016. While regional economies are slowing and overall loan growth was down 1% on constant currency on a quarter-to-quarter basis, management expects refinancing and corporate activities to support.Analysts:&nbsp;Michael Wu, CAIA &amp;&nbsp;Iris Tan, CFA

DBS Group's 3Q Results Solid Despite Tough Conditions