Singapore Stock Market News

DBS Group - Rising rate beneficiary

StockFanatic
Publish date: Thu, 18 Sep 2014, 04:06 PM
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Immediate beneficiary of turn in rate cycle
DBS Group is estimated to see the largest and most immediate impact from a turn in the interest rate cycle. This is expected to be a positive catalyst for the stock assuming the US interest rate cycle turns next year. Historically, there is a strong positive correlation between the 3 month SIBOR rate and DBS' net interest margin (NIM).

The latter has also seen a convergence with the sector average with the gap closing to only 3bp by year end from a peak of 16bp.
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