Brokers' take

DBS Group Holdings | Hold Target price: S$22.50 Aug 7 close: S$21.15 Jefferies Singapore, Aug 7

Q2 earnings grew 8 per cent YoY (year on year) underpinned by broad-based loan growth and fee income. It was partly offset by flat margins from lower Singdollar interbank rates and weaker trading performance. Asset quality guidance is for continued weakness. Cost discipline is unchanged. Dividend is up 10 per cent on the back of consistent financial performance and strong capital position (common equity tier 1 14 per cent), though payout ratio run rate remains below 40 per cent. The group has gained market share in mortgage and cards, and is participating in China's One Belt, One Road initiatives selectively. Outlook remains for a mid-single loan growth with an upward bias. While medium-term outlook is attractive (cost discipline and possibility of higher payout ratios), share price may be capped in near term due to uncertainty in interbank rates and asset quality.

UOL Group | Add Target price: S$9.03 Aug 7 close: S$8.16 CIMB Research, Aug 7