- Post meeting with management, we think DBS (SGX:D05)'s 2Q24 earnings could ease sequentially as non-II wanes from a very strong 1Q24. However, we are not expecting any major negative surprises.
- With the sector’s earnings outlook likely remaining muted amid the monetary easing cycle, dividend yields and growth in dividend per share should continue as the main driver for SG Banks’ share price performance. DBS, in our view, is best positioned to deliver on this, thanks to its absolute dividend commitment.
Expecting a softer 2Q24 reporting quarter q-o-q
- - Read this at SGinvestors.io -
- - Read this at SGinvestors.io -
- Finally, given the operating environment does not appear to have changed much either way, asset quality should remain under control. 1Q24 special provisions (SP) were 10bps vs 17-20bps guidance, and we are not discounting the possibility that 2Q SP will continue to trend below guidance.
Expect an interim DPS of 54 cents
- Read more at SGinvestors.io.
Singapore Research RHB Securities Research | https://www.rhbgroup.com/ 2024-07-18
Previous report by RHB:
2024-05-03 DBS - A Strong Start To FY24; Stay BUY.
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
