- DBS (SGX:D05)’s 1Q26 earnings of S$2.9bn were within our estimates, at 26% of our FY26e forecast. 1Q26 DBS's dividends increased 8% y-o-y to 81 cents (comprising 66 cents ordinary dividend and 15 cents capital return dividend); we estimate total FY26e dividend of S$3.30 (+8% y-o-y).
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- Management subtly upgraded FY26 guidance, with total income now expected around 2025 levels (vs prior implied PATMI decline), despite assuming no further US rate cuts and a lower SORA assumption of 1%.
The Positives
Record non-II; structural diversification through bancassurance.
- - Read this at SGinvestors.io -
- Importantly, bancassurance (~20% of wealth fees) is counter-cyclical to investment-linked fees and provides structural diversification. April investment momentum was muted in the first two weeks but rebounded in week three, while bancassurance momentum has been “exceptionally strong”. Cash equities also scaled (+77% y-o-y) as institutional equities grew 36% y-o-y, signalling a new growth lever beyond the wealth franchise.
Allowances normalise, asset quality strengthening.
- Read more at SGinvestors.io.
