DBS Group - UOB Kay Hian 2024-05-03: Accelerating Pace Of Returning Surplus Capital To Shareholders

DBS Group - Accelerating Pace Of Returning Surplus Capital To Shareholders

DBS (SGX:D05) | SGinvestors.ioDBS (SGX:D05)
  • DBS’s 1Q24 net profit of S$2,951m (+15% y-o-y) was significantly above our expectation. Management will continue to review DBS’s capital structure in view of returning more surplus capital to shareholders.

DBS’ 1Q24 Results

  • - Read this at SGinvestors.io -

Resilient NIM despite lower HIBOR.

  • NIM expanded 2bp y-o-y and 1bp q-o-q to 2.14% in 1Q24. Net interest income grew 7% y-o-y.
  • DBS benefitted from repricing of fixed-rate assets at higher interest rates. 3M HIBOR declined 43bp q-o-q to 4.72% and had a negative impact of 2bp on NIM.
  • - Read this at SGinvestors.io -
  • Deposits expanded 1% or S$7b q-o-q, while CASA outflow has eased.

Strong organic growth for fee income.

  • Fees & commissions jumped 23% y-o-y and 20% q-o-q in 1Q24. The recovery was led by wealth management (+47% y-o-y), cards (+33% y-o-y) and loans-related fees (+30% y-o-y).
  • Wealth management benefitted from stronger market sentiment and high net worth clients deploying the expanded AUM in a wide range of investment products.
  • Both wealth management and cards benefitted from the consolidation of Citi Taiwan. Excluding Citi Taiwan, growth from wealth management and cards would still be sizeable at 35% and 12% y-o-y respectively.

Bonanza quarter for treasury sales.

  • Read more at SGinvestors.io.

Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.

Jonathan KOH CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2024-05-03

Previous report by UOB:
2024-02-08 DBS Group - Accelerating Pace Of Returning Surplus Capital To Shareholders.

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


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