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DBS Group Holdings (DBSDY)
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DBS Group (DBSDY) AI Stock Analysis

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DBSDY

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.

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

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: 1.82%|
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
85
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
90
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
80
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue22.37B38.72B19.55B16.49B14.17B14.58B
Gross Profit37.01B22.30B20.18B16.49B14.17B14.58B
EBITDA6.88B13.71B0.000.000.000.00
Net Income11.21B11.29B10.06B8.19B6.80B4.72B
Balance Sheet
Total Assets840.82B827.22B739.30B743.37B686.07B649.94B
Cash, Cash Equivalents and Short-Term Investments0.00139.06B117.67B114.30B108.34B101.48B
Total Debt0.0064.90B44.83B47.08B53.86B45.21B
Total Liabilities772.08B758.39B677.05B686.30B628.36B595.29B
Stockholders Equity68.70B68.79B62.06B56.89B57.53B54.63B
Cash Flow
Free Cash Flow7.96B14.43B4.45B2.10B7.16B24.33B
Operating Cash Flow8.21B15.34B5.17B2.77B7.73B24.88B
Investing Cash Flow-31.67B-1.24B727.00M-694.00M-1.60B-415.00M
Financing Cash Flow34.07B-6.60B-9.19B-3.89B-2.58B-2.37B

DBS Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price155.28
Price Trends
50DMA
144.17
Positive
100DMA
136.19
Positive
200DMA
130.20
Positive
Market Momentum
MACD
3.39
Negative
RSI
64.88
Neutral
STOCH
24.91
Neutral
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 155.28 is above the 20-day moving average (MA) of 151.38, above the 50-day MA of 144.17, and above the 200-day MA of 130.20, indicating a bullish trend. The MACD of 3.39 indicates Negative momentum. The RSI at 64.88 is Neutral, neither overbought nor oversold. The STOCH value of 24.91 is Neutral, 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 (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$75.61B13.1211.19%3.37%3.60%22.68%
78
Outperform
$176.49B23.1713.78%0.17%2.48%0.36%
77
Outperform
$109.35B12.8917.10%3.95%4.50%8.21%
73
Outperform
$117.55B18.8317.47%0.78%17.32%12.99%
73
Outperform
$70.19B9.8820.49%7.76%5.44%2.81%
65
Neutral
$82.51B14.018.69%2.43%-2.22%24.37%
58
Neutral
HK$111.27B6.73-5.15%3.95%9.05%-47.66%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DBSDY
DBS Group
155.28
52.03
50.39%
HDB
Hdfc Bank
74.86
15.05
25.16%
IBN
Icici Bank
32.88
4.97
17.81%
ITUB
Itau Unibanco
6.65
0.91
15.85%
MFG
Mizuho Financial
6.47
2.22
52.24%
PNC
PNC Financial
192.99
25.68
15.35%
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