Silver Lining In Uneven Recovery

Singapore banks remained resilient as sectors affected by the COVID-19 pandemic, such as construction, retail trade, transport & storage, accommodation and food & beverage, accounted for a manageable 11% of GDP. The banks also rode on the recovery in Singapore and Greater China, which accounted for 89.1%, 69.6% and 62.8% of total income for DBS, OCBC and UOB in 1Q21. BUY OCBC (Target price: S$15.50), followed by DBS (BUY/Target price: S$35.45). Maintain OVERWEIGHT.