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$DBS(D05.SI)$

**DBS Group Holdings (D05.SI) remains a strong investment** due to its leadership as Singapore’s largest bank, superior fundamentals, and reliable shareholder returns in Asia’s wealth hub.

It boasts high ROE (~16%), a resilient balance sheet (CET1 ratio 15.1%), stable NPLs at 1%, and diversified revenue. 3Q2025 delivered record total income of S$5.93bn (+3% YoY), with wealth management fees surging 30% to S$796m—now half of fee income—as affluent inflows boost Singapore’s role as a global wealth centre.

Dividends shine: trailing yield ~5.1% at recent S$57.40 price, with 2026 ordinary dividends rising to S$0.66 quarterly (+S$0.06) plus S$0.15 capital returns, annualising ~S$3.24. Ongoing S$3bn buybacks (only ~12% used) and potential specials enhance total returns.

Analyst consensus is **Outperform** (16 analysts), average target S$58.98 (+2.75% upside), highs to S$70.

**2026 outlook** is steady: total income flat, non-interest income high-single-digit growth offsetting NIM compression; net profit slightly below 2025 but supported by loan expansion and market reforms. Risks include rate easing, yet DBS’s scale, hedging, and capital deployment position it for S$65+ potential long-term. Ideal for income investors seeking stability and Asia growth.


LFG la

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Comments

  • quiettt
    15:39
    quiettt
    Spot on! DBS is a gem for steady income and growth in Asia. [开心]
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