- Amid a scenario of flattish earnings as the interest rate cycle turns, DBS’s commitment to increase dividend by S$0.24 per annum means its absolute dividend will continue to grow, and investors will have a good line of sight as to its trajectory.
- - Read this at SGinvestors.io -
- Stay NEUTRAL on Singapore banking sector; Top Pick: DBS.
4Q23 banking sector highlights
- Singapore banks’ (DBS, OCBC, UOB) 4Q23 results were within expectations. 4Q23 sector operating income was down 3% q-o-q (+7% y-o-y) as NII dipped slightly on the NIM squeeze, while non-II softened 9% q-o-q – a combination of seasonality, and lower treasury and markets as well as insurance contributions.
- - Read this at SGinvestors.io -
- On the flip side, total allowances were down 22% q-o-q as asset quality was relatively benign. Hence, 4Q23 sector net profit was down by 8% q-o-q (+7% y-o-y).
- For FY23, sector net profit jumped 25% y-o-y on stronger NII (+22% y-o-y) and non-II (+18% y-o-y). CIR improved to 41.5% from 43.7% in FY22, but these were partly offset by higher credit cost of 20bps (FY22: 13bps) due to specific allowances (SP) for some isolated incidences and lower general allowance (GP) writebacks.
Guidance largely unchanged.
- Read more at SGinvestors.io.
Singapore Research RHB Securities Research | https://www.rhbgroup.com/ 2024-03-11
More reports on banking & finance sector:
Analyst Reports on Singapore Banking & Finance Sector
Read also:
Analyst Reports on DBS Group
Analyst Reports on OCBC Bank
Analyst Reports on United Overseas Bank (UOB)
