DBS less likely to suffer slower loan growth from housing curbs

It has granted fewer housing loans compared to OCBC and UOB.

DBS could be shielded from slower loan growth in Q2 2018 as housing loans accounted only 22% of its loan book compared to OCBC’s 26% and UOB’s 28%, OCBC Investment Research said.

OCBC added that the panic buying of more than 1,000 units in the four hours following the announcement of the surprise property policy can also minimize the impact of slower loan growth.

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“However, the longer term potential drop in transaction volumes could impact loans growth,” OCBC commented.

OCBC Investment Research thinks that the pace of consumers switching banks to get mortgage loans will also increase.

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“The recent regional sell-down has brought valuations lower, butwe still believe DBS deserves a higher premium than its peers in this region,” OCBC explained.