Brokers' take

DBS Group Holdings >Reduce Phillip Securities Research, Feb 17 Feb 17 close: S$18.60 Target price: S$16.73

MANAGEMENT'S guidance for 2017 loans and income growth is mid-single digit. Therefore, we have revised our total income growth estimate from 2 per cent to 5 per cent. Management also provided guidance that the total allowance in 2017 would be similar to 2016 excluding provisions for Swiber. Based on the total allowance guidance and the divestment gains from the sale of the PwC Building, we estimate net profit growth to be more than 10 per cent. However, we still think that a mid-single digit income growth may not be sufficient to secure growth of shareholder returns if non-performing loans escalates more than expected. Downgrade to a lower target price of S$16.73 (previously S$16.85).

DBS Group Holdings > Hold Maybank Kim Eng Research, Feb 17 Target price: S$18.13