DBS - RHB Research 2025-02-11: Dishing Out Even More Dividends, Stay BUY

• Maintain BUY, with the new target price for DBS at S$51.20 (up from S$44.70), representing a 13% upside from the current DBS share price and ~7% yield. DBS’ 4Q24 results were in line and management reiterated its 2025 guidance and outlook.
• - Read this at SGinvestors.io -

Results highlights.

• - Read this at SGinvestors.io -
• DBS’ net profit q-o-q drop was from:
  1. lower non-II with fee (-13% q-o-q) and non-fee (-23% q-o-q) down, partly due to seasonality;
  2. higher opex (+11% q-o-q) – also seasonal and impact from special one-time staff bonus; and
  3. higher specific provisions (SP) of 20bps (3Q24: 14bps) due to lower recoveries.
• NIM rose 4bps q-o-q as lower funding cost for markets trading more than offset the squeeze in the commercial book. Else, a weaker S$ saw loan and deposit growth momentum pick up and an uptick in NPLs. NPLs were also higher q-o-q on lower recoveries and writeoffs.

FY24 dividends of S$2.22.

• Read more at SGinvestors.io.

Singapore Research RHB Securities Research | https://www.rhbgroup.com/ 2025-02-11 SGinvestors.io

---