ASIA FIRST TO MARKET

Research evidence excerpt

ASIA FIRST TO MARKET

ny-compiled

consensus. STAN is our top pick among HK/CH banks, for the following reasons. First, revenue growth was

stronger than expected, as shown in 2Q results, with Wealth +43% y/y, Banking +18% y/y and Markets flow

income +16% y/y offsetting weaker episodic income as flagged. STAN also revised up NII guidance from flat

to low single-digit % y/y (cons. +1.7% y/y), partly reflecting the upgraded FY26 total income guidance to the

middle of the 5-7% range (vs cons. 6.4%). Second, impairment charges were 37% lower than consensus

with Middle East-related overlay declining from $190mn in 1Q26 to $44mn in 2Q26. The 2Q26 annualized

credit cost of 26bps is likely lower than HSBC (JPMe 51bps) and BOCHK (JPMe ~35bps). Third, against the

backdrop of a tightening on cross-border investment account openings and potential change in individual

ODI regulation, client and asset growth remain robust, with 76k new to bank affluent clients, up from 64k in

2Q25. Net new money inflow of $15bn was lower than $18bn in 1Q26 and largely flat vs 2Q25 ($15.6bn)

which were respectively the highest and second-highest quarterly flows since disclosure became

available. Fourth, we expect low-mid single digit cons EPS upgrades post the 2Q print, bringing upside to

FY28E cons ROTE (15.5%), up from 11.9% in 2025. The strong ROTE expansion will be the key support for

further PB multiple upgrade. STAN is currently trading at 10.0x PE, 1.2x P/B and 1.4x PTNAV, for a ROTE of

14.9% or ROE 12.8% in 27E. We reiterate our OW rating.

Singapore Telecom (STEL.SI, OW – S$4.61), Singapore (Ranjan Sharma)

Analysis of news reports of potential Optus stake sale

As per media reports, ST is in advanced discussions to sell a “significant minority stake” in Optus. This has