DBS Group - RHB Invest 2024-02-08: Better Clarity On Dividend Commitment; Upgrade To BUY

• Upgrade DBS (SGX:D05) to BUY from Neutral, with DBS's target price rises to S$36.10 from S$34.70, 11% upside with ~ 7% FY24F yield.
• - Read this at SGinvestors.io -
• A reduced rates leverage and ample overlay buffers are added “bonuses”.

4Q23 results in line …

• DBS’s 4Q23 results are in line, and it is broadly retaining its 2024 guidance. with FY23 core net profit of S$10bn (+26% y-o-y) making up 99-101% of our and consensus FY23F PATMI.
• - Read this at SGinvestors.io -
• The final dividend of 54 cents (4Q23F: 52 cents; 4Q22: 42 cents ordinary plus 50 cents special dividend) brings DBS's dividend for FY23 to S$1.92 (FY22: S$2.00, inclusive of the special dividend). This translates to a payout ratio of 49% (FY22: 63% total payout or 47% payout on ordinary dividend).
• A 1-for-10 bonus issue has also been proposed. See DBS's bonus issue date.

… with reported net profit down 12% q-o-q (-3% y-o-y).

• Read more at SGinvestors.io.

Singapore Research RHB Securities Research | https://www.rhbgroup.com/ 2024-02-08 SGinvestors.io

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