DBS Asean Banking

The next league

• Emerging ASEAN banks continue to rally, but we believe there is still upside. We now rank our preference by Thailand , Indonesia , followed by Malaysia banks.

• Singapore banks remained under-performers likely due to imminent short-term headwinds, but are still poised for longer-term re-rating. Valuations remain cheapest among ASEAN banks.

• Heading towards “normalization” phase in 2011. Stock picks are crucial. Top ASEAN bank picks are BBNI, KBANK, Maybank and OCBC. Our small cap bank picks are BBTN and Alliance .