DBS Group Holdings | Buy (maintained) Feb 19 close: S$25.10 Target price: S$29.00 CIMB-CGS, Feb 19

While there could be a possibility of fewer than two US Fed rate hikes in 2019F (CGS-CIMB's house view), we believe net interest margin (NIM) will still rise in forecasted fiscal 2019 as fixed-rate mortgages get re-priced upwards towards Sibor-pegged housing loans. We pen in a five basis point rise in forecasted fiscal 2019 NIM to 1.9 per cent.

Given the volatile markets in Q4, DBS conservatively guides for net trading income of S$200 million/quarter, which we think is a bit conservative - fair considering the uncertain macroeconomic outlook, but upside to this figure is likely.