The Week Ahead: Big Week For DBS Group

We are about halfway through the quarterly earnings season. But next week is the big one – Singapore’s three banks are pencilled in for results.

DBS Group (SGX: D05) has managed to defy the naysayers in recent quarters by delivering results that have been ahead of expectations. Could it do so again on Thursday, given its exposure to the oil and gas sector? Could improvements in the bank’s Net Interest Margin save the day?

Both United Overseas Bank (SGX: U11) and Oversea-Chinese Banking Corporation (SGX: O39) are believed to be less exposed to the troubled oil sector. But they are unlikely to escape totally unscathed. So once again, provisions for bad and doubtful debts could be the focus of brokers’ attention.

CapitaLand (SGX: C31) has benefitted from a judicious mix of assets. It has enabled the property company to generate strong and stable revenues in the face of market volatility. So, the continuing demands for prime properties in China could help CapitaLand weather another sluggish quarter in the Singapore property market.

Other companies with results include Genting Singapore (SGX: G13) and Singapore Technologies Engineering (SGX: S63).

On the economic front, Chinese Vice Premier has taken aim at those who falsify economic data. Zang Gaoli said those who do so will be punished. There has long been scepticism about the reliability of Chinese economic data that includes inflation numbers, which are on tap next week.

The UK has inflation numbers too. Last month, consumer prices rose 1.6% year on year, which was not only higher than expected but also the highest inflation rate for nearly three years. The weak pound has been blamed for the rise.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore Director David Kuo doesn’t own shares in any companies mentioned. The Motley Fool has recommended United Overseas Bank,