DJ MARKET TALK: DBS Likely To "Clear Decks" With 4Q Results - DB

0752 GMT [Dow Jones] STOCK CALL: DBS (D05.SG) set to use 4Q07 as a

quarter to "clear the decks" for new CEO, Deutsche Bank says in report.

Expects S$150 million in CDO-related provisions (vs S$200 net

exposure), S$57 million writedown of its TMB (TMB.TH) investment. "With

Jackson Tai already having left the bank, and a new CEO yet to be

announced, we believe DBS has every reason to be as conservative as

possible in valuing its ABS CDO portfolio." Says unlike pre-3Q07

results, no guidance from bank that CDO losses would not be material to

earnings, suggesting larger writedowns more likely than not. Notes,

however, forecasted S$150 million ABS CDO writedown equates to only 5%

of FY07E earnings, 0.6% of FY07E book value. "While sentiment could be

adversely impacted in the near term, this may present an opportunity

for long-term investors to accumulate DBS given cheap valuations and

strong loan growth." Keeps at Buy with S$28.20 target price. Share down

1.9% at S$17.72; STI down 1.9%. (LES)