- DBS (SGX:D05)'s 1H24 earnings were ahead of Maybank Investment Banking Group (MIBG) and Street expectations thanks to improving fees and good cost management.
- Net interest margins (NIM) are holding better than peers. However, expect headwinds amidst Fed rate cuts.
- - Read this at SGinvestors.io -
- A strong balance sheet, high CET1 and a focus on returning capital back to shareholders keeps dividend visibility high for DBS, even as rates come down.
Better NIM resilience. But some downside risks
- DBS's 1H24 NIMs were flat y-o-y (-2bps y-o-y 2Q24). DBS displays stronger margin management vs peers. 1H24 interest bearing assets (IBA) yields +42bps y-o-y vs +28bps for UOB (SGX:U11) and interest bearing liabilities (IBL) +47bps y-o-y vs +49bps for OCBC (SGX:O39). This goes to the strength of its franchise.
- - Read this at SGinvestors.io -
- We lower 2025-26E net interest income forecasts for DBS by 1% each.
Fee income making a comeback
- Read more at SGinvestors.io.
