DBS Group - UOB Kay Hian 2023-11-07: 3Q23 Resilient NIM & Net Profit; Pondering Capital Management

DBS Group - 3Q23 Resilient NIM & Net Profit; Pondering Capital Management

DBS (SGX:D05) | SGinvestors.ioDBS (SGX:D05)
  • DBS’ 3Q23 net profit of S$2,593m (+16% y-o-y) was slightly above expectations. NIM expanded 29bp y-o-y and 3bp q-o-q, while net interest income grew 16% y-o-y. Other non-interest income expanded by a robust 21% y-o-y to S$845m.
  • - Read this at SGinvestors.io -
  • DBS will consider capital management by potentially returning surplus capital of S$3b or S$1.20 per share to shareholders.

DBS' 3Q23 Results

  • DBS Group (SGX:D05) reported net profit of S$2,593m for 3Q23, up 16% y-o-y but down 1% q-o-q. The results were slightly above our net profit forecast of S$2,532m despite incurring one-time integration costs of S$40m for Citibank Taiwan.

Continued NIM expansion.

  • - Read this at SGinvestors.io -
  • Net interest income grew 16% y-o-y.

Loans contracted 2% y-o-y.

  • Loans grew 1% q-o-q on a constant-currency basis in 3Q23. Corporate loans contracted 1% q-o-q due to higher prepayments. Trade loans contracted 3% q-o-q due to unattractive pricing.
  • Citibank Taiwan contributed loans of S$10b.

Broad-based growth in fee income.

  • Read more at SGinvestors.io.

Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.

Jonathan KOH CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2023-11-07

Previous report by UOB:
2023-08-04 DBS 2Q23 - Net Profit Of S$10b Is Within Reach.

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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