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DBS may post 5 pct fall in Q1 profit-poll
DBS Group, Southeast Asia's largest bank, is expected to report a 5 percent drop in first quarter net profit before the market opens on Friday, hurt by lower interest margins and a decline in fee income. DBS will kick off the earnings reporting of Singapore's banks, including Oversea-Chinese Banking Corp OCBC.SI and United Overseas Bank Ltd UOBH.SI.
DBS will report net earnings of S$764 million ($614 million) for the three months ended in March, according to the average estimate of five analysts polled by Reuters. That would be lower than its earnings of S$807 million a year earlier.
DBS shares were down 0.4 percent at S$13.65 on Thursday - 3.7 percent lower than before the Danamon deal was announced. But the shares have gained about 18 percent since the start of the year.
CIMB cuts Sheng Siong to neutral
CIMB Research downgraded supermarket chain operator Sheng Siong Group Ltd to neutral from outperform and cut its target price to S$0.49 from S$0.51, citing intense competition that could further hurt its profits. Sheng Siong's shares were down 1 percent at S$0.48, but have gained 9 percent so far this year, underperforming the FT ST Small Caps Index's 16 percent rise.
Sheng Siong reported a 74 percent rise in quarterly net profit to S$16.8 million, but CIMB said its core earnings per share was below its expectations, due to lower-than-expected gross margins. CIMB cut its 2012-2014 earnings per share estimates for Sheng Siong by 3-8 percent and said the company's cost savings from bulk handling and higher-margin fresh foods were eroded by higher promotions and discounts.
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