DBS Group - RHB Invest 2023-05-25: Leveraging Tech Capabilities For Outperformance

DBS Group - Leveraging Tech Capabilities For Outperformance

DBS (SGX:D05) | SGinvestors.ioDBS (SGX:D05)
  • At DBS Investor Day 2023 – Digital Transformation 2.0 held earlier this week, DBS's management quantified key achievements made since 2017 (when it first shared details on the bank’s digital transformation) and showcased how DBS has deepened its technology capabilities, become data-driven, and is achieving scale and effectiveness. See presentation slides in DBS's announcement dated 22 May 2023.
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  • Maintain NEUTRAL on DBS with S$35.70 target price, 14% upside from the current DBS's share price with ~6% FY23F yield.

Medium-term ROE.

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  • Over the next three years, DBS's ROE is expected to range between 15% and 17%, down from the high of 18.6% in 1Q23 – with the drags being NIM (Federal Funds Rate falling below 3%) and credit cost (through the cycle 18bps vs 10-15bps for FY23F). Offsets are expected to come from:
    1. Faster growth in capital-light high-ROE businesses such as wealth management, global transaction services (GTS), and treasury market sales (TMS);
    2. improved profitability in growth markets in India, Taiwan and Indonesia, and
    3. capital management.

Capital management.

  • Read more at SGinvestors.io.

Singapore Research RHB Securities Research | https://www.rhbgroup.com/ 2023-05-25

Read also RHB's most recent report:
2023-11-07 DBS Group - ASEAN & India The Bright Spots Ahead.

Previous report by RHB:
2023-11-02 DBS Group - MAS Takes Further Action For Latest Outages.

Price targets by 3 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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