- 1Q21 earnings of S$1.0bn in-line, at 25.5% of our FY21e forecast boosted by stronger than expected other non-interest income but dragged by higher than expected allowances.
- NIM unchanged QoQ at 1.57%, helped by lower cost of deposits at 1Q21. Guidance for FY21e remain unchanged.
- 1Q21 credit cost declined 26bps on QoQ basis to 29bps. FY21e guidance is 30bps, down from 30-40bps previously.
- The bank is reviewing Citi’s for-sale assets in Asia Pacific. Information memorandum on sale expected later this month.
- Maintain ACCUMULATE and GGM TP (1.17x of FY21e P/BV) of S$28.70.