DBS Group (DBSDY) AI Stock Analysis

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DBS Group

(OTC:DBSDY)

Rating:77Outperform

Price Target:―

DBS Group's overall score is bolstered by its strong financial performance, characterized by revenue and net income growth, excellent leverage management, and robust cash flow. The earnings call provides a balanced but optimistic outlook with strong investment metrics. Despite short-term technical weaknesses, the valuation remains attractive with a reasonable P/E ratio and high dividend yield.

Positive Factors

Strong Financial Performance

DBS's robust revenue and net income growth indicate a solid financial foundation, enhancing its ability to invest in strategic initiatives and withstand economic fluctuations.

Wealth Management Growth

The significant growth in wealth management reflects DBS's effective client acquisition and retention strategies, contributing to long-term revenue stability and diversification.

Effective Risk Management

Prudent risk management with a substantial GP overlay positions DBS to handle potential economic stress, ensuring resilience and stability in uncertain environments.

Negative Factors

Hong Kong Asset Quality Concerns

Rising non-performing loans in Hong Kong indicate asset quality issues, potentially impacting profitability and requiring increased provisions, which could strain resources.

SME Stress in Hong Kong

Stress in Hong Kong's SME sector due to high interest rates may lead to reduced lending opportunities and increased credit risk, affecting DBS's regional performance.

Seasonal Decline in Wealth Management

A seasonal decline in wealth management could signal volatility in this revenue stream, necessitating strategies to mitigate such fluctuations and stabilize earnings.

DBS Group (DBSDY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$116.57B

Dividend Yield3.77%

Average Volume (3M)28.35K

Price to Earnings (P/E)13.7

Beta (1Y)0.41

Revenue Growth4.50%

EPS Growth8.21%

CountryUS

Employees41,000

SectorFinancial

Sector Strength70

IndustryBanks - Regional

Share Statistics

EPS (TTM)3.09

Shares Outstanding709,505,400

10 Day Avg. Volume0

30 Day Avg. Volume28,347

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.47

Enterprise Value/Revenue7.69

Enterprise Value/Gross Profit4.64

Enterprise Value/Ebitda24.98

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

DBS Group Business Overview & Revenue Model

Company DescriptionDBS Group Holdings Ltd is a leading financial services group headquartered in Singapore, with a significant presence in Asia. As one of the largest banks in Southeast Asia, DBS Group operates in the banking and financial services sector, offering a comprehensive range of products and services. These include consumer banking, wealth management, institutional banking, and treasury services, catering to individuals, small and medium-sized enterprises, and corporations.

How the Company Makes MoneyDBS Group makes money primarily through its diverse banking operations. The company's key revenue streams include interest income from loans and advances to customers, fees and commissions from wealth management and investment services, and trading income from treasury and market activities. DBS also generates revenue through its extensive network of branches and digital platforms, which facilitate transactions and offer financial products. Significant contributions to its earnings come from its operations in Singapore, Hong Kong, and other key Asian markets. Additionally, strategic partnerships and investments in technology enhance its service offerings and operational efficiency, further bolstering its revenue generation capabilities.

DBS Group Earnings Call Summary

Earnings Call Date:Aug 07, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Nov 06, 2025

Earnings Call Sentiment Neutral

DBS delivered a strong performance in the first half of 2025 despite challenging market conditions, achieving record highs in profit before tax and total income. The bank demonstrated resilience with improved asset quality and significant growth in fee income and markets trading. However, challenges such as declines in commercial book net interest income and subdued loan growth in Hong Kong impacted overall performance. The proactive management of balance sheet and market opportunities offset some negative trends.

Q2-2025 Updates

Positive Updates

Record Highs in Profit Before Tax and Total Income

The bank announced a record profit before tax of $6.83 billion for the first half, a 3% increase, and total income reached a new high of $11.6 billion, growing by 5%.

Strong Asset Quality

The Non-Performing Loan (NPL) ratio improved from 1.1% to 1.0%, with specific allowances at 15 basis points of loans and allowance coverage at 137%.

Significant Growth in Fee Income

Fee income rose 11% to $1.69 billion in the second quarter, led by a 25% increase in wealth management fees.

Markets Trading Income Surge

Markets trading income more than doubled to a 13-quarter high, rising $231 million to $418 million.

Solid Growth in Wealth Management

Wealth management segment income grew 8% to a record $2.84 billion in the first half, with assets under management increasing 16% year-on-year.

Negative Updates

Decline in Commercial Book Net Interest Income

Commercial book net interest income fell 4% year-on-year to $3.63 billion due to sharp declines in interest rates.

Challenges with Lower Interest Rates

Net interest margin declined 13 basis points quarter-on-quarter and 28 basis points year-on-year to 2.55%.

Reduced Loan Growth in Hong Kong

Loans in Hong Kong declined 5% due to subdued credit demand and repayments, despite a 9% increase in deposits.

Higher Tax Expenses Impacting Net Profit

Net profit for the first half fell 1% to $5.72 billion due to higher tax expenses.

Company Guidance

In the second quarter of 2025, DBS reported a 5% increase in profit before tax to $3.39 billion, while net profit rose by 1% to $2.82 billion. Total income grew by 5% to $5.73 billion, driven by higher net interest income, robust deposit growth, and effective balance sheet management. The bank's return on equity stood at 17.0%, with a return on tangible equity at 18.8%. Asset quality remained strong, with the NPL ratio improving to 1.0% and allowance coverage at 137%, or 236% when considering collateral. The CET1 ratio was reported at 17.0% on a transitional basis, and 15.1% fully phased-in. DBS declared a dividend of $0.75 per share, including a $0.60 ordinary dividend and a $0.15 capital return dividend. For the first half, DBS achieved a record high of $6.83 billion in profit before tax, with total income reaching $11.6 billion, despite challenges such as lower interest rates and currency fluctuations.

DBS Group Financial Statement Overview

Summary

DBS Group exhibits a strong financial position with impressive revenue and net income growth, excellent leverage management, and robust cash flow generation. The company's financial health appears solid with consistent improvements in profitability and equity returns. Minor areas of concern include limited data on EBIT/EBITDA margins and variability in cash flow growth, though these are outweighed by overall strong performance.

Income Statement

Very Positive

DBS Group shows strong performance with a noticeable revenue growth rate from 2023 to 2024. The gross profit margin is high as total revenue equals gross profit, indicating no cost of goods sold, typical for banking. Net profit margin has also improved, reflecting efficient cost management. However, the absence of EBIT and EBITDA figures in recent periods limits a comprehensive profitability assessment.

Balance Sheet

Very Positive

The balance sheet is robust with zero reported debt in 2024, indicating excellent leverage management. The equity ratio is solid due to a significant stockholder equity base, suggesting financial stability. Return on equity has improved over time, demonstrating effective utilization of equity capital.

Cash Flow

Positive

Operating cash flow has significantly increased, reflecting strong cash generation capability. The free cash flow to net income ratio is positive and increasing, indicating strong cash conversion. However, fluctuations in free cash flow growth rates suggest some variability in capital expenditures or operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.37B	38.72B	19.55B	16.49B	14.17B	14.58B
Gross Profit	37.01B	22.30B	20.18B	16.49B	14.17B	14.58B
EBITDA	6.88B	13.71B	0.00	0.00	0.00	0.00
Net Income	11.21B	11.29B	10.06B	8.19B	6.80B	4.72B
Balance Sheet
Total Assets	840.82B	827.22B	739.30B	743.37B	686.07B	649.94B
Cash, Cash Equivalents and Short-Term Investments	0.00	139.06B	117.67B	114.30B	108.34B	101.48B
Total Debt	0.00	64.90B	44.83B	47.08B	53.86B	45.21B
Total Liabilities	772.08B	758.39B	677.05B	686.30B	628.36B	595.29B
Stockholders Equity	68.70B	68.79B	62.06B	56.89B	57.53B	54.63B
Cash Flow
Free Cash Flow	7.96B	14.43B	4.45B	2.10B	7.16B	24.33B
Operating Cash Flow	8.21B	15.34B	5.17B	2.77B	7.73B	24.88B
Investing Cash Flow	-31.67B	-1.24B	727.00M	-694.00M	-1.60B	-415.00M
Financing Cash Flow	34.07B	-6.60B	-9.19B	-3.89B	-2.58B	-2.37B

DBS Group Technical Analysis

Technical Analysis Sentiment

Positive

Last Price164.01

Price Trends

50DMA

150.85

Positive

100DMA

142.10

Positive

200DMA

133.50

Positive

Market Momentum

MACD

3.00

Negative

RSI

73.95

Negative

STOCH

97.55

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DBSDY, the sentiment is Positive. The current price of 164.01 is above the 20-day moving average (MA) of 157.36, above the 50-day MA of 150.85, and above the 200-day MA of 133.50, indicating a bullish trend. The MACD of 3.00 indicates Negative momentum. The RSI at 73.95 is Negative, neither overbought nor oversold. The STOCH value of 97.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DBSDY.

DBS Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DBSDY	77 Outperform	$116.57B	13.73	17.10%	3.77%	4.50%	8.21%
IBN	73 Outperform	$113.75B	18.01	17.47%	0.81%	17.32%	12.99%
ITUB	73 Outperform	$71.33B	9.98	20.49%	6.76%	5.44%	2.81%
LYG	71 Outperform	$65.43B	12.92	10.06%	3.75%	0.76%	-5.74%
HDB	69 Neutral	$168.34B	43.27	13.78%	0.20%	2.48%	33.95%
Sector *	68 Neutral	$18.10B	11.52	9.93%	3.73%	9.70%	1.14%
MFG	65 Neutral	$83.56B	14.20	8.69%	2.34%	-2.22%	24.37%

* Financial Sector Average

Performance Comparison

DBSDY

DBS Group

164.01

54.75

50.11%

HDB

Hdfc Bank

35.39

4.47

14.46%

IBN

Icici Bank

31.98

2.56

8.70%

ITUB

Itau Unibanco

7.08

1.53

27.57%

LYG

Lloyds Banking

4.51

1.62

56.06%

MFG

Mizuho Financial

6.63

2.60

64.52%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 20, 2025