- DBS's 3Q24 adjusted PATMI of S$3.03bn was above our estimates due to higher fee income and trading income. 9M24 adjusted PATMI is 83% of our FY24e forecast. DBS's dividend for.3Q24 rose 23% y-o-y to 54 cents.
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- DBS maintained its FY24e guidance with PATMI growth of mid to high-single digit, while providing FY25e guidance for NII at 2024 levels and non-interest income growth of high-single digit. PATMI to drop below 2024 levels.
- Maintain NEUTRAL with higher DBS's target price of S$41.60 (previously S$38.50) as we raise our FY24e estimates.
The Positives
Trading and WM income surges.
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- WM fees (+55% y-o-y) led fee income growth as there was a continued shift from deposits into investments and bancassurance as well as an expansion in AUM to S$401bn (+14% y-o-y).
- As a result, DBS's non-interest income rose 28% y-o-y to S$2,156mil and was the main contributor to earnings momentum.
NII rises despite lower NIM.
- Read more at SGinvestors.io.
