SG60 agenda to push DBS50

DBS looks to volume growth to mitigate falling interest rates stock soars to record high, hits S$50 mark
The lender guides 2025 net interest income to be above 2024 levels

[SINGAPORE] Shares of DBS : D05 +1.84% soared to a record high on Thursday (Aug 7) &ndash briefly hitting a milestone S$50 mark &ndash as South-east Asia&rsquo s biggest lender beat expectations for its second-quarter results amid challenging times ahead for the banks.

The counter eased to close at S$49.75, up 1.8 per cent for the day, after some 6.5 million shares changed hands. Shares of DBS have climbed 13.8 per cent in the year to date.

In the quarters ahead, the bank expects falling interest rates to put a dent in its net interest margin (NIM). But chief executive Tan Su Shan believes deposits volume growth will continue to support net interest income for 2025.

Speaking at the lender&rsquo s second-quarter results briefing on Thursday, Tan flagged changes in interest rates and foreign exchange (forex) as the biggest risks to performance she said, however, that this could be mitigated by volume growth.

&ldquo Don&rsquo t focus on NIMs, because the NIM will go down with the markets, but the net interest income can go up with volumes, and that&rsquo s how you mitigate that, and also how you hedge your net interest income risk nimbly.&rdquo

Tan expects the bank&rsquo s ability to manage balance sheets, grow deposits and capture market share will help tide it through uncertainty and hit its 2025 target of having group net interest income slightly above 2024 levels.

Meanwhile, DBS continues to boost structural growth in wealth management, global transaction services, digitalisation, financial institutions.

Q2 earnings beat expectations
DBS on Thursday posted a year-on-year rise of 1 per cent in net profit to S$2.82 billion for Q2, beating the S$2.79 billion consensus forecast in a Bloomberg survey of six analysts.

Commercial book net interest income fell 4 per cent to S$3.63 billion NIM fell 28 basis points (bps) year on year to 2.55 per cent due to US Federal Reserve rate cuts, as well as lower Singapore Overnight Rate Average (Sora) and Hong Kong Interbank Offered Rate (Hibor).

This was mitigated by balance sheet hedging and partly offset by strong deposit growth.

Tan said that because forex rates drive interest rate volatility, there is a need for the bank to be nimble with interest rate swaps and forex hedging.

Deposits in Q2 rose 7 per cent on year in constant-currency terms to S$574 billion, from increases in both fixed deposits and current and savings accounts.

Having seen sustained momentum in July, Tan expects deposits growth will continue for the rest of the year.

The growth in deposits exceeded loan growth, and the surplus was deployed into liquid assets, which was accretive to net interest income and return on equity, though it modestly reduced NIM.

Return on equity for Q2 stood at 16.7 per cent, down from 18.2 per cent a year earlier.

Meanwhile, Q2 loans rose 4 per cent in constant-currency terms to S$433 billion, led by non-trade corporate loans from broad-based growth across industries.

Tan said the lender has seen structural growth in its loans it has been increasing market share by deepening its industry expertise, and winning lead manager roles.

She still sees opportunities for strong growth in non-trade corporate loans in segments including tech, as well as in logistics and transportation.

Commercial book net fee and commission income was up 11 per cent at S$1.17 billion, largely due to higher wealth management fees, while investment banking fees were higher from increased debt and equity capital market activity.

Tan said the lender&rsquo s fee income was &ldquo quite pleasing&rdquo , given that growth was across the board in wealth fees, loan fees and treasury sales fees.

Commercial book other non-interest income increased 9 per cent to S$522 million, driven by strong treasury customer sales to wealth management and corporate customers.

Markets trading income, meanwhile, more than doubled to S$418 million from higher contributions across a range of activities, benefiting from lower funding costs and a more conducive trading environment.

The bank&rsquo s non-performing loans ratio fell to 1 per cent, from 1.1 per cent the same period a year earlier, as new non-performing asset formation stayed low and was more than offset by higher repayments and write-offs.

DBS declared an ordinary dividend of S$0.60 per share and a capital return dividend of S$0.15 per share for the period.

This brings the quarter&rsquo s total dividend payout to S$0.75 per share, compared with the S$0.54 in the year-ago period.

DBS kept its 2025 guidance. It expects commercial book non-interest income growth to be mid- to high-single digits, supported by a double-digit growth in wealth management cost-income ratio to be in the low-40 per cent range and specific provisions will normalise to 17 to 20 bps in the second half.

Overall, it is guiding for net profit to be below 2024 levels mainly due to global minimum tax of 15 per cent.

Anyone sold some DBS today, took some profit and buy something nice for the weekend? I did some at 50.68, gonna have a nice meal with my child

Have fun! Good on you!

DBS is my only SG stock. Not goona sell, just hold it for dividend for the moment.
Will only sell it when i retiree and cash out all my US stock.

My broker revise TP to $56 cause of this $50 breakthrough

please ask him to revise it to $60.

Extraordinary climb for DBS with flurry of upgrades after share price hit $50

SINGAPORE &ndash DBS Bank shares continued their bull run on Aug 8 to close at a record high on the back of a flurry of analyst upgrades sparked by the bank&rsquo s stellar latest earnings.

The stock, which crossed $50 for the first time ever on Aug 7, hit $50.98 in morning trade before closing at $50.74, up 2 per cent.

That puts the shares 15 per cent ahead since Jan 1, with a striking 50 per cent gain in the past 12 months.

The catalyst for the surge came on Aug 7 when DBS reported a 1 per cent rise in second-quarter net profit to $2.82 billion, beating the $2.77 billion average estimate compiled by LSEG. Total income rose 5 per cent to $5.73 billion.

DBS chief executive Tan Su Shan said the strong results were delivered amid a challenging environment, but she still sees opportunities ahead.

&ldquo Our proactive management of the balance sheet puts us in a good position to navigate the interest rate cycle, while strong capital and liquidity ensure we are well placed to support customers,&rdquo Ms Tan noted.

The board declared an ordinary dividend of 60 cents a share for the quarter and a capital return dividend of 15 cents a share.

US investment bank Goldman Sachs noted that the results demonstrated &ldquo steady performance across operation lines despite lower rates and a highly volatile market environment in the second quarter, which showcases the bank&rsquo s strong franchise and effective management&rdquo .

Another key focus for analysts was DBS&rsquo capability to sustain the 24 cents annual step-up in core dividend per share (DPS) for 2025 and 2026 despite lower interest rates.

Goldman Sachs is keeping its buy call on DBS, and has revised the 12-month target price from $54.50 to $57.20.

Citi also likes the DBS management&rsquo s commitment to returning $8 billion of excess capital.

The plan involves returning capital through a $3 billion share buyback and $5 billion through additional DPS or the equivalent from 2025 to 2027.

Citi is raising its target price on DBS from $48.85 to $56.50, despite the latter trading at a significantly higher price-to-book multiple compared with rivals OCBC Bank and UOB.

The optimism is underpinned by the bank&rsquo s earnings resilience, cost efficiency, high return on equity (ROE) of 17 per cent and dividend growth.

ROE measures how efficient the bank is at generating profit from money investors have put into the business.

HSBC Global Investment Research, which has raised the target price on DBS from $51 to $55, also noted the bank&rsquo s resilient earnings, return of excess capital and dividend yield.

However, it is keeping its &ldquo hold&rdquo rating, adding: &ldquo While we recognise DBS&rsquo multiple areas of strength such as in wealth and capital return, we think a lot of the positives are already priced in.&rdquo

J.P. Morgan&rsquo s equity analysts are holding a &ldquo neutral&rdquo rating on DBS, and a target price of $48 by June 2026.

It said DBS has been rewarding shareholders with steadily higher dividends, bonus shares and buybacks, which supports its valuation. However, without stronger earnings growth, it will be hard for the stock to re-rate much further.

DBS is also expected to earn about $10.8 billion over the next three years, even as net interest margin (NIM) slips with lower rates. Wealth management will keep driving non-interest income, and asset quality remains solid.

The American investment bank also noted that DBS has achieved one of the strongest ROE improvements in the past decade, helped by higher interest rates, strong digital capabilities and better efficiency. Its digital strengths are boosting loan share, wealth management and underwriting.

Potential risks include a rise in bad loans or problems in trade-related exposures which could weigh on the stock price.

Mr Thilan Wickramasinghe, head of research at Maybank Securities, has upgraded his call on DBS from a hold to a buy and raised the target price from $45.26 to $56.15.

&ldquo We believe DBS&rsquo scale, strong execution and safe-haven beneficiary status give it a significant advantage over regional peers. Upgrade to buy,&rdquo he said, noting the above-market growth DBS is able to generate across its core divisions.

&ldquo We believe this is sustainable in the medium term, given the self-reinforcing effects of scale and strong management execution,&rdquo Mr Wickramasinghe added.

Morningstar senior equity analyst Michael Makdad is keeping his $48 fair value estimate for DBS.

&ldquo DBS continues to deliver higher returns than peers &ndash ROE has been around 17 per cent versus 13 per cent for OCBC and UOB &ndash and has proved more resilient to the mid-2025 (interest) rate drop. However, we believe this strength is already priced in,&rdquo Mr Makdad said.

He estimates that the market values DBS at nearly twice its book value on a forward-looking basis, compared with a multiple closer to one for OCBC and UOB.

&ldquo While DBS&rsquo performance merits a premium, we see relatively greater value in its peers at current levels,&rdquo Mr Makdad added.

Congrats again to all DBS shareholders,......

Bros… just an unfortunate suspicion here…
SBS Transit might LOSE the Tampines Bus Package… results of tender to be ann’d this mth or early-September… just my thinking….

I bought in too earlier…. Selling before news is one tactic…

Referring to above input back in Jun 13.
At 11.20 am in SG yesterday (as per SG Time Region), Boustead SG announced they have filed for a REIT listing for its holding of its SG logistics & industrial assets.
The REIT is coming…. ‘to screw….’, some shareholders said earlier…lol…
But F9D’s valuation will rise with the above action.

Bros…. Chk out F9D.. after MAS spproves… more upsides…dydd…

What’s your thought on this? Am not familiar with Boustead’s property assets but heard about them monetising it for years. So it’s gonna be Boustead L&C reit? 🤔

Yeah… it’ll probably be named Boustead REIT, perhaps eith additional deacriptions. Properties are abailable in SG, & generally this type of assets in SG will do well, except for business parks.

I’ll do more research later & input here…I’ll go post something in my ‘Europe Stint’ thread first…

Boustead is helping UIB Hldgs yo listbthis REIT. Assets in SG, China, Japan and Vietnam. Not too sure if these assets are wuality ones… must wait gor the prospectus to be logged into MAS OPERA.

Mapletree Logs Trust’s assets in China are ‘suffering’….

DBS reaches new peak of S$52.87, as STI soars to record high of 4,355.84 points

JPMorgan has bullish STI target of up to 5,000 by year’s end, cites declining interest rates and Republic’s S$5 billion market development programme


[SINGAPORE] DBS : D05 +3.64% shares hit an all-time high on Wednesday (Sep 10), helping to boost the Straits Times Index (STI) to a new record as investors continued to bet on Singapore’s efforts to revive the local market.

Shares of the bank soared 3.9 per cent from their previous close to a peak of S$52.87 as at 4.59 pm. It ended the day at S$52.73, up 3.6 per cent or S$1.85.

The STI rose nearly 1.4 per cent, or more than 50 points, to 4,355.84 – new territory for the benchmark index. It finished at 4,346.46, up 1.1 per cent or 48.89 points.

DBS closed at S$50.88 the previous day, while the STI stood at 4,297.57 points. The index has climbed 14.7 per cent in the year to date, while DBS is up nearly 20 per cent in the year to date.

The lender posted a second-quarter year-on-year net profit rise of 1 per cent to S$2.82 billion, beating the S$2.79 billion consensus forecast in a Bloomberg survey of six analysts.

Investors and analysts’ optimism for the Republic’s bourse – especially regarding its blue chips – go beyond just index and stock-price rallies.

Thank you, bro…I’m in the midst of exploring Europe now… my dividend shares are yielding great reaults… This is the ldeal FIRE….?

Ann’t has been made. The assets that will be injected into the REIT are 21 industrial & logistic props in SG, and 2 similar-use props in Japan. So…. No China, no Vietnam properties in the REIT. For further infos…

Boustead’s proposed Reit listing has portfolio value of S$1.9 billion
https://bt.sg/BYxo

Bros… Keppel DC REIT has ann’d a Pref Offering yesterday evening, your time…..

I’m still studying it… but it’s worth it… the DC in Japan has an existing long-term tenant and it’s worth it…

Have a look please….

Bros…. Centurion Accomodation REIT opened trading at 98c at 2 pm your time. IPO subscription price was 88c…
Untung 11% immediately… but can’t get many allocations…

Centurion jumped up 4c now….