DBS - RHB Invest 2023-05-03: Guidance Cut As Outlook Softens; Downgrade To NEUTRAL

• Downgrade DBS (SGX:D05) to NEUTRAL from Buy, new S$35.70 target price from S$39.80, 8% upside with FY23F 5% yield.
• DBS’s 1Q23 results are broadly in line. Key highlights: NIM expansion (albeit moderating), healthy fee income growth and solid asset quality.
• - Read this at SGinvestors.io -

DBS's 1Q23 within expectations.

• DBS’s 1Q23 net profit of S$2.57bn (+43% y-o-y, +10% q-o-q) comprises 25% and 27% of our and Street FY23F earnings. Reported ROE improved to 18.6% (4Q22: 17.2%) while CET-1 was a strong 14.4%.
• - Read this at SGinvestors.io -
• In 1Q23, PPOP rose 16% q-o-q, on an 8% q-o-q rise in operating income and a 4% q-o-q drop in opex as 4Q22 was bumped up by accelerated depreciation, special awards to staff and the integration of Citi Consumer Taiwan. Net profit growth was moderated by allowances of S$161m (4Q22: S$42m net writeback).

Loan growth tweaked.

• Read more at SGinvestors.io.

Singapore Research RHB Securities Research | https://www.rhbgroup.com/ 2023-05-03 SGinvestors.io

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