- S$8bn capital return planned through FY27 via DBS's dividends and share buybacks, implying a 5.9% FY26e and 6.3% FY27e dividend yield.
Background
- - Read this at SGinvestors.io -
- DBS acquired Citigroup’s consumer banking franchises in Taiwan in Jan 2022 and was named the World’s Best Bank 2022 by Global Finance.
Investment Merits/Outlook
NIM and NII decline despite loan and deposit growth:
- - Read this at SGinvestors.io -
- For FY26e, DBS expects NII to come in slightly below FY25 levels as the full-year impact of lower rates will be mitigated by deposit growth.
- Deposit growth was led by CASA (+6% y-o-y), and the CASA ratio improved to 53% (3Q24: 52%). The impact of lower interest rates was mitigated by effective balance-sheet hedging, while strong deposit growth helped support loan expansion and a higher allocation to liquid assets.
Non-interest income driving growth:
- Read more at SGinvestors.io.
