DBS Group - Phillip Securities 2023-05-25: Dividends To Increase By S$0.24 Per Year

DBS Group - Dividends To Increase By S$0.24 Per Year

DBS (SGX:D05) | SGinvestors.ioDBS (SGX:D05)
  • We attended DBS’ Investor Day on 22 May 2023 where management shared their digital-led strategy in growth markets, how new businesses with potential have evolved from the previous Investor Day in 2017 and addressed some of the questions from investors and analysts.
  • - Read this at SGinvestors.io -
  • Technology has transformed the way they manage with the use of a hybrid multi-cloud strategy with in-house infrastructure as a service. Other business segments such as Consumer and SME, Private banking, Global transaction services, and Treasury markets have also benefited from the digital transformation.

DBS' Group Financials

Medium-term ROE of 15-17%, dividends to increase by S$0.24 per year.

  • - Read this at SGinvestors.io -
  • increasing ROE with scale in growth markets such as transaction banking, wealth management, SME lending and unsecured retail lending, and;
  • capital headroom to support profitable growth and higher distributions.
  • Notably, DBS' ordinary dividends would be lifted by S$0.24 to S$1.68 in 2023. There is also a further upside of S$3bn based on the optimal CET-1 operating range of 12.5-13.5% (1Q23: 14.1%), which could be distributed in further ordinary dividend step-up, special dividend or share buyback. See DBS' dividend history.

Group ROE structurally improved by 250bps.

  • Read more at SGinvestors.io.

Above is the excerpt from report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full report in PDF @ https://www.stocksbnb.com/.

Glenn Thum Phillip Securities Research | https://www.stocksbnb.com/ 2023-05-25

Read also Phillip's most recent report:
2023-08-04 DBS - Continued NIM Growth Boosts NII.

Price targets by 5 other brokers at DBS Target Prices.

Listing of research reports at DBS Analyst Reports.

Relevant links:
DBS Share Price History,
DBS Announcements,
DBS Dividends & Corporate Actions,
DBS News Articles


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