- We recently met DBS for an update. We expect DBS's 1Q24 earnings (to be released on 2 May 2024) to stay muted but the shift to non-II-led income growth from NII should free up capital and support capital return initiatives.
- - Read this at SGinvestors.io -
Muted loan growth
- 1Q24 loan growth should still be muted, amidst the ongoing trade-off between NIM and loan growth. The trend of higher repayments has persisted, and the softer growth environment has led to competitive pricing pressure in the mortgage segment – which, so far, DBS has avoided competing aggressively in. Hence, we think its 1Q loan growth is likely to track its own guidance of low single-digit growth.
- - Read this at SGinvestors.io -
- Despite the shift in expectations, DBS does not think the difference would be meaningful enough to impact its NIM guidance as the additional cuts it expects would have been towards the tail-end of 2024.
Non-II looks decent, although it is still early days.
- Read more at SGinvestors.io.
Singapore Research RHB Securities Research | https://www.rhbgroup.com/ 2024-03-26
Read also RHB's most recent report:
2024-05-03 DBS - A Strong Start To FY24; Stay BUY.
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
