Contents

Buy Banks: Look Beyond The Provisions Cycle 5
Top pick DBS, but UOB has more near-term price catalysts 5
High provisions charges marred strong 2Q09 results 6
But ROEs may rise to 12-15% once the provision cycle ends 8
Singapore Strategy — STI Target 3000 18
Singapore Economics — Call a 'V' a 'V' 24
Singapore Property — Residential Update 28
Rising Interest Rates — Not That Scary 32
Company Updates 35
DBS Group (DBSM.SI) 36
Buy, Target Price S$15.50 36
Key Forecast Assumptions and Sensitivities 38
DBS 1H/2QFY09 Results at a Glance 40
Post-Results Management Briefing Highlights 41
OCBC (OCBC.SI) 46
Buy, Target Price S$8.80 46
Key Forecast Assumptions and Sensitivities 48
OCBC 1H/2QFY09 Results at a Glance 51
Post-Results Management Briefing Highlights 52
UOB (UOBH.SI) 58
Buy Target Price S$18.60 58
Key Forecast Assumptions and Sensitivities 60
UOB 1H/2QFY09 Results at a Glance 62
Post-Results Management Briefing Highlights 63
Appendix A-1 72