- DBS’s 1Q24 results beat estimates on better-than-expected non-interest income, and loan impairments tracking below estimates. As a result, it is now more optimistic on operating income growth and guided for some PATMI growth in 2024 (vs flat earnings previously).
- - Read this at SGinvestors.io -
- We believe the dividend yield and yield compression investment thesis for DBS remains intact.
1Q24 results a beat
- DBS (SGX:D05)'s 1Q24 results a beat, with S$3bn (+15% y-o-y, +30% q-o-q) in earnings at 30% of our and consensus FY24F PATMI. ROE rose to a new high of 19.4% (FY23: 18%) while CET-1 was stable at 14.7% (FY23: 14.6%).
- - Read this at SGinvestors.io -
- 1Q PIOP rose 14% y-o-y, underpinned by a 23% y-o-y jump in fees while other non-interest income rose 24% y-o-y.
- Wealth management, cards and loans-related fees were key fee income drivers while stronger treasury customer sales drove other non-interest income. Do note that the strong y-o-y growth also reflects the inclusion of Citi Taiwan (since 3Q23) and a non-recurring S$100m FX hedging gain from its overseas books.
- Net-interest income was up 7% y-o-y on 2% loan growth and a 2bps y-o-y net-interest margin expansion while opex grew 11% y-o-y.
- Specific provision charge was contained at just 10bps (vs 17-20bps guidance).
Decent loan growth
- Read more at SGinvestors.io.
Singapore Research RHB Securities Research | https://www.rhbgroup.com/ 2024-05-03
Previous report by RHB:
2024-03-26 DBS - Upcoming 1Q24 Results Unlikely To Surprise.
Price targets by 3 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
