4Q08 net profits (all in) of S$295mn vs. JPMe of S$251mn (tablebelow). Core profits of S$383mn vs. JPMe of S$351mn. Importantly,results should remove concerns DBS had large losses on its portfolio.Stock should re-rate, and rotation from UOB/OCBC to DBS shouldcontinue. At close to NTA of S$8, very limited downside for DBS.

NIM solid at 2.04%, 5bps over 3Q08 - very positive, loan yieldsimproved 5bps q/q, despite lower rates. This underscores pricing powerof the bank. Other revenues also held up better than expected despitelower read on trading income. Operating costs came out lower thanexpected, largely due to lower restructuring charges.

Provisions of S$269mn for 4Q, out of which S$111mn for HK SME andprivate bank loans, as expected. Very importantly, next shoe to dropshould be ASEAN SME credit costs for UOB/OCBC – NISP (OCBC)numbers gave early signs of this. Rotation from UOB/OCBC to DBSremains a high conviction call.