πππDBS $DBS Group Holdings(D05.SI)$
Share Performance and Q1 25 Highlights
DBS is up 3.8% and over the past year it has surged 22.8%, outpacing the STI Index. Q1 25 key drivers include :
Total Income up 6% to SGD 5.91 billion, pre tax profit hit SGD 3.44 billion and net profit is SGD 2.90 billion.
Net interest income up 2% year over year, offsetting a 9 basis point dip in NIM.
Fee income soared 22% on robust wealth management and loan related fees.
Market trading income jumped 48%, the strongest quarterly in 3 years.
Loan book expanded 2% quarter on quarter to SGD 435 billion. Deposits rose 3%.
Asset quality is pristine with NPL ratio at 1.1%.
DBS's CET1 ratio at Q1 25 remains rock solid at 17.4%, comfortably above MAS's minimum requirements and signalling ample buffer for dividends, buybacks or future growth investments.
Analyst Price Targets and Valuation
Consensus from major brokers points to 4% to 10% upside potential, even after the latest rally:
OCBC Investment - Buy rating, Target price DGD50.00
RHB Research - Buy rating, Target price SGD 51.20
CGSI Research - Add rating, Target price SGD 47.90
Phillips Securities - Accumulate, Target price SGD 46.90
Maybank Research - Hold, Target price is SGD 45.26.
DBS trades at an undemanding 11.5 times trailing P/E ratio. The current dividend yield is 5%. It has a Aa1/AA- credit rating. CET1 ratio is 17.4% underpinning DBS capacity for dividends and buybacks.
Global Accolades
DBS has won some of the world's most prestigious banking awards, validating its leadership across digital innovation, risk management, client service and sustainability.
Among its many awards are Asia's Safest Bank for 16 consecutive years by Global Finance, reflecting DBS unwavering credit discipline and robust risk management framework.
World's Best Bank for Sustainable Finance 2025 by Global Finance. This underscores DBS's pioneering green financing solutions and cross border sustainability deals.
World's Best Bank for High Net Worth Clients by Euromoney. This validates DBS 's superior private banking platform and wealth management expertise.
Most Innovative Bank in Digital Banking by The Banker. This showcases how DBS leverages AI, data analytics and UX design to redefine customer engagement.
These accolades don't just adorn the trophy cabinet. They translates into stronger client acquisition, premium fee income and a differentiated competitive moat that underpins DBS's enduring "Buy" case.
Why DBS Is Still A Buy
DBS stands out on multiple fronts:
Great Dividends - The current dividend yield is 5%, paid every 3 months.
Valuation Support - DBS trades below historical P/E norms despite delivering industry leading ROE of 17%. The current trailing P/E ratio is 11.45 which is below its historical high of 17.29. For a bank with global accolades, record earnings and fortress capital, this P/E level still looks compelling.
Digital Powerhouse - Market leading mobile platform and AI driven analytics fuel fee growth and cost efficiency.
Capital Firepower - Robust CET1 ratio supports special dividends, buybacks.
ESG Leadership - Sustainability awards enhance brand strength and regulatory goodwill.
Concluding Thoughts
DBS's Q1 25 excellent earnings, analyst upside, juicy dividends, rock solid credit metrics, top global awards and superior comparative edge reinforce that this blue-chip champion still has more room to run.
If you are hunting for a resilient anchor that delivers both growth and income, now is the time to double down on DBS.
I am a long term investor of DBS and I am so proud of its sterling performance.
Go Long Go Strong Go DBS! ππππππππππ°π°π°πΈπ¬πΈπ¬πΈπ¬
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