104389782
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Refer last 2 important paragraphs, DBS retains its position as "top investment bank" and last paragraph, DBS is better hedged than OCBC and UOB with unexpired hedges and strength in deposit growth", Which means DBS' profits will not be affected by Fed's interest rate cuts (because DBS already predicted this and hedge these with contracts that give them profits, so there is minimal drop in their net interest income, unlike the other 2 banks. Pls note also target price for DBS is $ 68.95. (recommended by uob stocks analysts) which at current price (after profit taking) reoresents an upside of 19 percent (now market price due to profit taking is $57.6. Target price reported by newspapers is $68.95. Potential upside (68.95-57.6)/57.6 ×100% = approx 19 percent.
104389782
DK11
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If no hedge, interest income declines and pull down profits greatly. Yes, there is hedging charges but I think DBS has other streams of income (like being top performer in investment banking fees) and will compensate for it.
104389782 : Refer last 2 important paragraphs, DBS retains its position as "top investment bank" and last paragraph, DBS is better hedged than OCBC and UOB with unexpired hedges and strength in deposit growth", Which means DBS' profits will not be affected by Fed's interest rate cuts (because DBS already predicted this and hedge these with contracts that give them profits, so there is minimal drop in their net interest income, unlike the other 2 banks.
Pls note also target price for DBS is $ 68.95. (recommended by uob stocks analysts) which at current price (after profit taking) reoresents an upside of 19 percent (now market price due to profit taking is $57.6. Target price reported by newspapers is $68.95. Potential upside (68.95-57.6)/57.6 ×100% = approx 19 percent.
DK11 : hedging is not free though.
104389782 DK11 : If no hedge, interest income declines and pull down profits greatly. Yes, there is hedging charges but I think DBS has other streams of income (like being top performer in investment banking fees) and will compensate for it.
DK11 104389782 : not necessarily there will be multiple cut. even there is, 2 cuts? 0.5%?. won't be that spectacular.