- DBS (SGX:D05) delivered 1Q24 earnings well ahead of MIBG and Street expectations. Trading was a key driver. This may not repeat in the same magnitude going forward given a more bearish interest rate cut environment vs the start of 2024E.
- - Read this at SGinvestors.io -
Wealth momentum rising.
- Fees came in stronger than expected with weath management expanding +47% y-o-y. Some is from integrating Citi Taiwan. Even excluding this the segment grew +35% y-o-y, according to DBS's management. To us, this indicates customers are taking higher risks.
- DBS has enjoyed ~S$24bn of AUM inflows per year in the past 2-years and the run-rate in 1Q24 is consistent. This gives significant dry-powder for further wealth growth.
Trading sustainable?
- - Read this at SGinvestors.io -
- We raise 2024-26E non-interest income assumptions for DBS by 3-7%.
NII support from higher rates.
- Read more at SGinvestors.io.
