DBS Group - Phillip Securities 2023-11-07: Growth Across The Board Offset By Allowances

DBS Group - Growth Across The Board Offset By Allowances

DBS (SGX:D05) | SGinvestors.ioDBS (SGX:D05)
  • DBS (SGX:D05)'s 3Q23 adjusted PATMI of S$2.63bn was above our estimates due to higher NII, fee income and other non-interest income offset by higher allowances. 9M23 adjusted PATMI is 78% of our FY23e forecast.
  • - Read this at SGinvestors.io -
  • NII rose 16% y-o-y on NIM expansion of 29bps despite loan growth dipping slightly. Fee income rose 9% y-o-y, while other non-interest income grew 21% y-o-y. DBS has maintained its FY23e guidance.
  • DBS provided FY24e guidance of double-digit fee income growth (from wealth management and credit card fees), stable NII as higher NIMs from higher-for-longer rates will be offset by lower loan growth and total allowances to normalise to 17-20bps of loans. FY24e PATMI to be maintained at around the current levels in FY23.
  • - Read this at SGinvestors.io -

The Positives

NIM and NII continue to increase y-o-y.

  • DBS's NII rose 16% y-o-y to S$3.5bn due to a 29bps NIM increase to 2.19% (2Q23: 2.16%) as interest rates continue to remain high, despite loan growth dipping 2% y-o-y.
  • Loan growth dipped due to a decline in customer and trade loans due to unattractive pricing while non-trade corporate loans were lower due to higher repayments. Nonetheless, the Citi Taiwan consolidation contributed S$10bn to loans.

Fee income continues to grow.

  • 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/ 2023-11-07

Read also Phillip's most recent report:
2024-05-03 DBS Group - NII & Fee Income Boost Earnings.

Previous report by Phillip:
2024-02-09 DBS Group - Fee Income Recovers; Strong Dividend Growth.

Price targets by 4 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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