- DBS Group shares have sold off sharply in the aftermath of Russia's invasion of Ukraine, likely due to reduced prospects for more aggressive rate hikes and slower overall global growth.
- DBS is exceptionally rate-sensitive, and the bank is well-placed to leverage loan growth, higher rates, and controlled expense growth to drive attractive pre-provision profit growth.
- The acquisition of Citi's Taiwan operations significantly improves DBS's operations in Taiwan and does so at a very attractive price.
- I would still like to see DBS invest more to establish a stronger presence in growth markets like Indonesia, India, and Vietnam.
- A slower/lower tightening cycle is a clear risk, but DBS Group looks undervalued today and worth a closer look.
For further details see:
Global Turmoil Gives Investors Another Crack At DBS Group