DBS - Phillip Securities 2026-01-05: The Capital Return Story

• 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.

Above is an excerpt from a report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full PDF report @ https://www.stocksbnb.com/.

Read also Phillip's most recent report:
2026-02-11 DBS Group - Dividends Maintained Despite Earnings Decline.

Price targets by 4 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