$DBS GROUP HOLDINGS LTD(D05.SI)$Keeping DBS on watchlist as we enter an economic downturn. I believe DBS is a fundamentally strong company that will withstand financial shocks. Loans wise, DBS has low non performing loans and net charge offs due to strong underwriting & Singapores stricter financial regulations. Long term wise, DBS is well positioned for growth (compared to $OVERSEA-CHINESE BANKING CORP(O39.SI)$and $UNITED OVERSEAS BANK LIMITED(U11.SI)$) as they have a stronger digital banking lineup tocompete against fintechs and neo banks. For example, the most widely used payment method in Singapore is now Paylah! hence DBS gives consumers the benefit of both a fintech & traditional banking platform. Additionally, DBS is seeing strong growth in the Indian market.
However as DBS is still at a P/B of around 1.4, I believe that there is still room for it to fall, especially in a recession. A P/B around 1-1.1 would be agood entrance price given DBS historical PB of 1.2.
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