- DBS delivered a better-than-consensus 1Q25 result, but management has also taken the prudent move to increase its allowances in 1Q25.
- 1Q25 net earnings of S$2,897m is down 2% y-o-y , but higher than Bloomberg consensus expectations of S$2,840m.
As expected, higher allowances in 1Q25 due to an uncertain outlook and potentially slower economic growth.
- - Read this at SGinvestors.io -
- Allowances for credit and other losses went up from S$135m in 1Q24 to S$325m in 1Q25, largely reflecting the current prudent stance in view of the trade tariff situation.
Muted guidance.
- DBS management is guiding for FY25 net profit to be lower than FY24, largely impacted by the global minimum tax.
- - Read this at SGinvestors.io -
- Cost-to-income ratio is estimated to come in at the 40% range.
- Management is positioning DBS for more intra-regional trades in view of the current US-China tariff situation.
What changed?
- Read more at SGinvestors.io.
