DBS Group - CGS-CIMB Research 2023-11-06: Holding Steady Into FY24

DBS Group - Holding Steady Into FY24

DBS (SGX:D05) | SGinvestors.ioDBS (SGX:D05)
  • DBS (SGX:D05) recorded 3Q23 core net profit of S$2.63bn (-2% q-o-q, +18% y-o-y). This was in line with our expectations but 7% above Bloomberg consensus’ S$2.5bn estimate. 9M23 core net profit formed 76%/78% of our/Bloomberg consensus full-year forecasts.
  • - Read this at SGinvestors.io -

3Q23: Steady NIM, fees; higher credit costs

  • Net interest margins (NIM) and fee trends were largely in line, though stronger-than-expected treasury income offset the heftier ~20bp credit costs in 3Q23.
    • NIM expanded 3bp q-o-q to 2.19% in 3Q23. 3Q23 net interest income (NII) was flattish q-o-q (+16% y-o-y) as loan growth stayed soft at ~1% q-o-q. The contraction (S$4bn) in consumer, trade loans and non-trade corporate loans in 3Q23 was offset by the consolidation of Citi Taiwan (+S$10bn in loans).
    • - Read this at SGinvestors.io -
    • Rise in treasury customer boosted overall treasury income in 3Q23 (+12% y-o-y).
    • Opex rose 6% q-o-q (+12% y-o-y) in 3Q23 due to higher staff costs and consolidation of Citi Taiwan.
    • 3Q23 credit costs were higher than we expected at 20bp– 18bp for specific provisions (allowances taken for anti-money-laundering case in Singapore) and 2bp for general provisions.

Positive income growth drivers to sustain net profit y-o-y in FY24F

  • Read more at SGinvestors.io.

Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.

Andrea CHOONG CGS-CIMB Research | LIM Siew Khee CGS-CIMB Research | https://www.cgs-cimb.com 2023-11-06

Read also CGS-CIMB's most recent report:
2024-02-07 DBS Group - Keep Yielding On.

Previous report by CGS-CIMB:
2023-12-12 DBS Group - Regional Financial Conference Takeaways.

Price targets by 5 other brokers at DBS Target Prices.

Listing of research reports at DBS Analyst Reports.

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