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DBS Group Holdings (DBSDY)
:DBSDY
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DBS Group
(OTC:DBSDY)
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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)
Market Cap
$113.64B
Dividend Yield3.77%
Average Volume (3M)7.67K
Price to Earnings (P/E)13.4
Beta (1Y)0.38
Revenue Growth4.50%
EPS Growth8.21%
CountryUS
Employees41,000
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)3.08
Shares Outstanding709,505,400
10 Day Avg. Volume4,170
30 Day Avg. Volume7,666
Financial Highlights & Ratios
PEG Ratio0.92
Price to Book (P/B)1.81
Price to Sales (P/S)3.21
P/FCF Ratio8.61
Enterprise Value/Market Cap1.51
Enterprise Value/Revenue5.80
Enterprise Value/Gross Profit5.80
Enterprise Value/Ebitda16.73
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
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.85
Very Positive
Balance Sheet
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.90
Very Positive
Cash Flow
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.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 29.65B | 38.72B | 19.55B | 16.27B | 14.17B | 11.53B |
| Gross Profit | 29.65B | 22.30B | 20.18B | 16.27B | 14.17B | 11.53B |
| EBITDA | 10.28B | 13.71B | 0.00 | 10.08B | 8.45B | 0.00 |
| Net Income | 11.25B | 11.29B | 10.06B | 8.19B | 6.80B | 4.72B |
Balance Sheet | ||||||
| Total Assets | 841.90B | 827.22B | 739.30B | 743.37B | 686.07B | 649.94B |
| Cash, Cash Equivalents and Short-Term Investments | 141.23B | 139.06B | 117.67B | 114.30B | 107.75B | 101.48B |
| Total Debt | 76.30B | 64.90B | 24.59B | 47.08B | 53.86B | 17.76B |
| Total Liabilities | 773.29B | 758.39B | 677.05B | 686.30B | 628.36B | 595.29B |
| Stockholders Equity | 68.56B | 68.79B | 62.06B | 56.89B | 57.53B | 54.63B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 14.43B | 4.45B | 2.10B | 7.16B | 24.33B |
| Operating Cash Flow | 0.00 | 15.34B | 5.17B | 2.77B | 7.73B | 24.88B |
| Investing Cash Flow | 0.00 | -1.24B | 727.00M | -694.00M | -1.60B | -415.00M |
| Financing Cash Flow | 0.00 | -6.60B | -9.19B | -3.89B | -2.58B | -2.37B |
DBS Group Technical Analysis
Positive
160.82
Price Trends
159.54
Positive
150.77
Positive
138.92
Positive
Market Momentum
0.92
Positive
49.84
Neutral
5.96
Positive
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 160.82 is below the 20-day moving average (MA) of 161.93, above the 50-day MA of 159.54, and above the 200-day MA of 138.92, indicating a neutral trend. The MACD of 0.92 indicates Positive momentum. The RSI at 49.84 is Neutral, neither overbought nor oversold. The STOCH value of 5.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DBSDY.
DBS Group Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $113.64B | 13.42 | 17.10% | 3.77% | 4.50% | 8.21% | |
73 Outperform | $113.02B | 18.86 | 17.41% | 0.81% | 10.85% | 7.98% | |
73 Outperform | $71.10B | 9.96 | 20.49% | 6.13% | 5.44% | 2.81% | |
70 Outperform | $175.48B | 22.23 | 14.17% | 0.19% | -1.78% | 0.65% | |
70 Neutral | $65.65B | 12.92 | 10.06% | 3.75% | 0.76% | -5.74% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $79.51B | 13.69 | 8.69% | 1.47% | -2.22% | 24.37% |
* Financial Sector Average
DBSDY
DBS Group
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50.43
44.94%
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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.