- DBS (SGX:D05)'s 1Q24 adjusted PATMI of S$2.96bn was slightly above our estimates due to higher NII, fee income, and other non-interest income offset by higher expenses. 1Q24 adjusted PATMI is 28% of our FY24e forecast. 1Q24 DBS's dividend raised 29% y-o-y to 54 cents.
- - Read this at SGinvestors.io -
- DBS has maintained its FY24e guidance of double-digit fee income growth (from wealth management and credit card fees) and credit cost of 17-20bps but increased its guidance for FY24e NII and PATMI to be above FY23 levels.
- Downgrade DBS to ACCUMULATE with a lower target price of S$38.50 (previously S$38.90) as we account for recent performance of DBS share price and 1-for-10 bonus share issue.
The Positives
NII rises 7% y-o-y.
- - Read this at SGinvestors.io -
- Management noted that loan growth was broad-based but was seen more in Singapore and India, which was offset by Hong Kong loans shifting to mainland China.
Fee income continues to recover.
- Read more at SGinvestors.io.
