• Maintain BUY and SGD30.30 target price, 13% upside. 
• 1H18 earnings represented 50% of our full-year forecast, while 2Q18 NIM widened 2bps q-o-q to 1.85% on higher Singapore and Hong Kong interest rates. However, both net trading income and wealth management fees contracted q-o-q. 
• We raise our 2018 NIM forecast to 1.87% from 1.85%, in line with management’s guidance at the recent results briefing. 
• We derive our Target Price on our assumption of long-term ROE of 13.6%. Widening NIM is the catalyst to drive DBS’ share price higher.

DBS’ 2Q18 Net Profit Stood at SGD1.33bn,

DBS’ 2Q18 net profit stood at SGD1.33bn down 12% q-o-q (+18% y-o-y). Excluding one-time items, core net profit should have been slightly higher at SGD1.37bn.

Source: RHB Invest Research - 02 Aug 2018