To The Moon

🌟🌟🌟On August 7, DBS will unveil its Q2 25 results.  For some it is just another earnings day.  For me, it is an reaffirmation of why DBS remains the cornerstone of my portfolio - a bank built not for the next quarter but for future generations of Singaporeans. 

Fortress Fundamentals, Even in Headwinds 

Analysts expect net interest margins to compress - likely down to 2.05%, reflecting softer rates.  But DBS is not flinching.  Fee income, especially from wealth management, is projected to surge 31%, driving a 13.2% year on year increase.

Net profit may dip slightly to SGD 2.691 billion but that is strategic not symptomatic.   DBS is absorbing a SGD 400 million tax hit due to the global minimum tax of 15% for large Singapore multinational enterprises.  This is a move that is aligned with an initiative led by OECD aimed at tax transparency.

DBS is increasing its general provisions by nearly 10 fold year on year to SGD 205 million to buffer against the challenges caused by US tariffs.  These challenges include trade disruption, growth slowdown, interest rate uncertainty, weaker market sentiments and credit stresses. 

According to new CEO Tan Su Shan, DBS will stay nimble to capture opportunities while prudently managing risks.   That is not fragility, it is foresight.

Dividends That Do Not Waver 

I expect DBS to reaffirm its SGD 0.60 quarterly dividend plus a 15% capital return payout.    In a world of uncertainty, that kind of consistency is rare.  It is a promise to long term investors like me that DBS's strength isn't seasonal, it is here to stay.  The current dividend yield is 4.73% paid every quarter.  This is heaps better than putting  money into savings accounts, Singapore bonds or treasury bills. 

Analysts Expectations 

Analysts remain cautiously optimistic about DBS's Target price ranging from SGD 46.90 by Phillips Securities to SGD 50.00 by OCBC Investment.  The consistency across Analysts suggests confidence in DBS's ability to weather margin compression and deliver stable returns.

DBS Share Price Performance 

DBS share price is up 9.7% year todate and in 2024, it has skyrocketed by 47%. In July DBS reached its all time high of SGD 49.21.  The next level would be SGD 50.00.

Why I hold DBS Through Every Cycle

Earnings may fluctuate.  Rates may fall.  But DBS's strength from its leadership, its balance sheet, its dividend discipline remains unshaken.  DBS isn't just a stock to me.  DBS is a legacy I hold for future generations. 

As we celebrate Singapore's 60th National Day, it is with much pride and joy in the knowledge that DBS will always be the symbol of Singapore's national pride. 

Majullah Singapura, Onwards We Progress! 🥰🥰🥰🇸🇬🇸🇬🇸🇬🌈🌈🌈💰💰💰

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