$UOB(U11.SG)$
Singapore banks 'sitting on massive liquidity', UOB 'clear beneficiary': Maybank Kim Eng
1. Singapore banks are sitting on massive liquidity and deploying it could offer strategic advantages, says Maybank Kim Eng Research analyst Thilan Wickramasinghe.
2. In an Oct 19 note, Wickramasinghe is recommending “buy” on all three local banks, with target prices of $35.11 for DBS Group, $14.30 for Oversea-Chinese Banking Corporation (OCBC) and $29.34 for United Overseas Bank (UOB).
3. “Singapore banks are sitting on massive liquidity. How they deploy could determine profitability on the other side of Covid-19. DBS has been mostly parking excess at central banks, while UOB has increased its securities holdings. For the latter, this may provide a near-term margin boost,” writes Wickramasinghe.