- DBS beat MIBG/Street earnings expectations in FY24. Raise DBS's target price to S$51.37. BUY.
Execution + Yield
- - Read this at SGinvestors.io -
- DBS’s capital returns policies should deliver dividend yields above 6.5%. All this justifies a higher valuation, in our view.
Focus on higher ROE segments
- - Read this at SGinvestors.io -
- Under the new CEO, growth in high ROE segments will be a key priority. This will include Wealth Management along with transaction banking and commercial banking.
- 4Q24 net-interest margins (NIM) rose +4bps. NIM growth is unlikely to last going in to FY25E. However, Management claims credit pipeline is strong and this should help offset NIM declines. We forecast loans growth to accelerate to 5.4% y-o-y in FY25E.
- Overall, we forecast DBS sustainable ROE to average to 15.8% in FY25-27E vs 12% in the past 10-years. This is in the middle of Management’s guided range of 15-17%, so there are upside risks.
Tech optimisation priority.
- Read more at SGinvestors.io.
Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @ https://www.maybanktrade.com.sg/.
Thilan Wickramasinghe Maybank Research | https://www.maybanktrade.com.sg/ 2025-02-10
Previous report by Maybank:
2024-11-07 DBS Group - Hitting The Right Notes.
Price targets by 2 other brokers at DBS Target Prices.
Listing of research reports at DBS Analyst Reports.
Relevant links:
DBS Share Price History,
DBS Announcements,
DBS Dividend Payout Dates & Corporate Actions,
DBS News
