Education
About Us
Working with TipRanks
Follow Us
DBS Group Holdings (DBSDY)
OTHER OTC:DBSDY
Top Page
DBS Group
(OTC:DBSDY)
Select Model
Select Model
Rating:77Outperform
Price Target:
$209.00
â–²(16.00% Upside)
Action:ReiteratedDate:02/10/26
The score is driven primarily by strong profitability and improving revenue trajectory, supported by constructive (but not aggressive) technical trends. Valuation is reasonable with an attractive dividend yield, while the earnings call adds confidence via strong deposits/wealth growth and shareholder returns; the main constraints are rising leverage, cash-flow volatility, and guidance pointing to mild profit pressure from rate headwinds, tax, and credit costs.
Positive Factors
Balance Sheet Strength
Zero reported debt and a substantial equity base give DBS durable financial flexibility. Low leverage supports regulatory capital ratios, funds lending and capital returns, and reduces solvency risk, enabling resilience through economic cycles and optionality for strategic moves.
Cash Generation
Material increases in operating cash flow and improving free cash flow conversion indicate robust, repeatable cash generation. Strong cash flow funds organic growth, supports dividends and capital returns, and provides a buffer in downturns without needing external financing.
Diversified Fee Revenue and Wealth Growth
Strong fee income and wealth management expansion (AUM growth cited) demonstrate successful revenue diversification away from interest income. Sticky fee streams boost margin sustainability and reduce earnings volatility tied to interest rate cycles, strengthening long-term revenue mix.
Negative Factors
Net Interest Margin Pressure
NIM compression directly reduces core banking revenue, a key profitability driver. If prolonged by a low-rate backdrop or competitive loan pricing, it pressures net income and ROE, forcing management to seek higher-yield loans or non-interest income to sustain returns.
Higher Effective Tax Burden
A structurally higher 15% global minimum tax reduces after-tax profitability and distributable earnings. Persistently higher tax rates lower long-term capital available for dividends, buybacks and reinvestment, pressuring ROE unless offset by sustained revenue or margin gains.
Sluggish Loan Growth
Stagnant loan growth with excess deposits parked in liquid assets limits expansion of interest-earning assets. Over months this caps net interest income growth and returns on assets, forcing dependence on fee income or lower-yield investments to drive earnings growth.
DBS Group (DBSDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$128.36B
Dividend Yield4.56%
Average Volume (3M)12.14K
Price to Earnings (P/E)15.3
Beta (1Y)0.45
Revenue Growth4.50%
EPS Growth8.21%
CountryUS
Employees41,000
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)10.37
Shares Outstanding711,014,300
10 Day Avg. Volume6,115
30 Day Avg. Volume12,137
Financial Highlights & Ratios
PEG Ratio-3.85
Price to Book (P/B)2.33
Price to Sales (P/S)4.37
P/FCF Ratio13.39
Enterprise Value/Market Cap0.72
Enterprise Value/Revenue3.05
Enterprise Value/Gross Profit3.05
Enterprise Value/Ebitda8.94
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)12.58
Revenue Forecast (FY)$18.62B
DBS Group Business Overview & Revenue Model
Company DescriptionDBS Group Holdings Ltd provides financial products and services in Singapore, Hong Kong, rest of Greater China, South and Southeast Asia, and internationally. It operates through Consumer Banking/Wealth Management, Institutional Banking, Treasury Markets, and Others segments. The Consumer Banking/Wealth Management segment offers banking and related financial services, including current and savings accounts, fixed deposits, loans and home finance, cards, payments, investment, and insurance products for individual customers. The Institutional Banking segment provides financial services and products for bank and non-bank financial institutions, government-linked companies, large corporates, and small and medium sized businesses. Its products and services comprise short-term working capital financing and specialized lending; cash management, trade finance, and securities and fiduciary services; treasury and markets products; and corporate finance and advisory banking, as well as capital markets solutions. The Treasury Markets segment is involved in the structuring, market-making, and trading in a range of treasury products. The Others segment offers Islamic banking services. The company was founded in 1968 and is headquartered in Singapore.
How the Company Makes MoneyDBS Group generates revenue through multiple key streams, primarily from interest income and non-interest income. Interest income is derived from lending activities, including personal loans, mortgages, and business loans, where the bank earns interest on the funds it lends out. Non-interest income comes from fees and commissions related to banking services, such as transaction fees, advisory fees for mergers and acquisitions, investment management fees, and wealth management services. Additionally, DBS benefits from treasury and market activities, including foreign exchange trading and derivatives. Strategic partnerships with fintech companies and a strong focus on digital banking initiatives have also enhanced its ability to attract customers and increase transaction volumes, contributing positively to its overall earnings.
DBS Group Earnings Call Summary
Earnings Call Date:Feb 08, 2026
(Q4-2025)
| Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operational and financial picture: record full-year pre-tax profit, record total income, robust deposit growth, strong Wealth Management and fee income gains, solid capital and liquidity metrics, and increased shareholder returns. Key near-term challenges were highlighted — notably the impact of a new global minimum tax (SGD 400 million), rate headwinds compressing margins, a Q4 reclassified real estate exposure that increased specific allowances, and seasonal volatility that reduced quarter-on-quarter income. Management signaled disciplined cost and credit management, a constructive but cautious outlook for 2026, and continued investment in AI and structural growth areas, indicating confidence in the franchise’s resilience despite macro and geopolitical headwinds.Q4-2025 Updates
Positive Updates
Record Full-Year Pre-Tax Profit and Strong Returns
Pre-tax profit rose to a record SGD 13.1 billion for FY2025; full-year net profit was SGD 11.0 billion. Return on equity was 16.2% and return on tangible equity was 17.8%.
Record Total Income and Net Interest Income
Total income increased 3% to a record SGD 22.9 billion. Group net interest income reached a new high of SGD 14.5 billion, modestly higher year-on-year despite a challenging rate environment.
Exceptional Deposit Growth
Total deposits grew by SGD 64 billion or 12% in constant currency for the year — the largest absolute increase in the bank's history — with over two-thirds of the increase in CASA; quarterly deposits rose SGD 16 billion (3% in constant currency).
Wealth Management Outperformance
Wealth Management was a key growth driver: full-year segment income up 9% to SGD 5.68 billion; assets under management grew 19% in constant currency to SGD 488 billion; net new money inflows were SGD 39 billion for the year (up 21% YoY) and SGD 12 billion in Q4.
Strong Fee and Treasury Customer Income
Fee income rose 18% (SGD 730 million) to a record net SGD 4.90 billion; gross fee income rose 15% to SGD 5.86 billion. Treasury customer sales grew 14% to a new high of SGD 2.14 billion.
Markets Trading Recovery
Markets trading income increased 49% (SGD 452 million) to SGD 1.37 billion — the highest level since 2021 — driven by lower funding costs and a more conducive trading environment.
Prudent Capital and Liquidity Positions
Transitional CET1 ratio was 17.0% (fully phased-in 15.0%); leverage ratio 6.2%. Liquidity coverage ratio was 155% and net stable funding ratio was 117%, both well above regulatory minima.
Shareholder Returns Increased
Board proposed a Q4 final dividend of SGD 0.81 per share (SGD 0.66 ordinary, up SGD 0.06, plus SGD 0.15 capital return). Total dividends for the year were SGD 3.06 per share (SGD 8.68 billion), a 38% increase YoY; capital return of SGD 0.15 per quarter planned through 2026–27.
Controlled Costs and Efficiency
Expenses were tightly managed: full-year expenses up 4% to SGD 9.25 billion with cost-to-income ratio unchanged at 40%. Q4 operating expenses declined ~1% to SGD 2.37 billion.
CSR and One-Time Provisions for Community Support
One-time allocation of SGD 100 million from 2025 profits toward a 10-year CSR commitment (up to SGD 1 billion); cumulative CSR contribution since 2023 is SGD 300 million.
Negative Updates
Net Profit and Quarterly Earnings Pressures
Full-year net profit was down 3% YoY to SGD 11.0 billion. Q4 pre-tax profit was SGD 2.8 billion, down 6% YoY, and Q4 net profit declined 20% quarter-on-quarter from the prior quarter.
Higher Tax Expense from Global Minimum Tax
Net profit was impacted by a SGD 400 million increase in tax expense due to the implementation of a 15% global minimum tax, contributing to the 3% YoY net profit decline.
Rate Headwinds and Margin Compression
Average SORA and HIBOR fell nearly 200 basis points; group NII faced headwinds with Q4 group net interest income down 4% YoY and commercial book NII down 6% in Q4 (SGD 239 million). Group NIM was 1.93% in Q4, down 3 bps QoQ.
Allowance and Credit Charges Related to Real Estate Exposure
Total allowances rose 27% YoY to SGD 791 million. Specific allowances increased materially: Q4 specific allowances were SGD 415 million and full-year specific allowances SGD 845 million (19 bps of loans), driven largely by the recognition of a previously watchlisted real estate exposure as an NPL in Q4.
Q4 Seasonal and Trading Volatility
Quarter-on-quarter declines in non-interest income: fee income fell 19% QoQ (SGD 258 million) and markets trading income fell 65% QoQ (SGD 285 million) from a high base; seasonal client activity reduced commercial book non-interest income.
Higher Expenses Driven by Staff Costs and Integrations
Full-year expenses rose 4% YoY, led by higher staff costs. Q4 staff costs temporarily declined due to lower accruals and post-integration roll-offs; AI-driven transformation could imply future restructuring and retraining risks.
Geopolitical, FX and Macro Uncertainty
Adverse translation effects from a strong Singapore dollar reduced reported income. Management expects continued rate pressures, geopolitical volatility and macro uncertainty; guidance suggests total income around 2025 levels and net profit slightly below 2025 depending on macro outcomes.
Hong Kong Specific Provisions Increased
Hong Kong total allowances doubled to SGD 296 million for the year, reflecting higher specific allowances largely from the Q4 real estate NPL recognition.
Company Guidance
Management guided that 2026 total income should be around 2025 levels (2025 total income SGD22.9bn) assuming SORA of ~1.25 and two further rate cuts, with net profit expected to be slightly below 2025’s SGD11.0bn; they see continued strong deposit and net-new-money momentum after 2025’s SGD64bn (12%) deposit increase and record SGD39bn net inflows. Operational guidance includes commercial-book non‑interest income growth in the high single digits, Wealth Management income growth in the mid‑teens, mid‑single‑digit expense growth (~4%), and specific provisions (SP) comfortably around 17–20bps with potential room for general-allowance write‑backs. Capital and capital return guidance: the Board plans to maintain a SGD0.15 per‑share quarterly capital return through 2026–27 and assumed quarterly dividends of SGD0.81 (annualized SGD3.24 per share, ~5.5% yield on the recent share price).DBS Group Financial Statement Overview
Summary
Strong multi-year revenue growth and durable profitability (net margins ~29–30% in 2023–2025) support a solid fundamental profile. Offsetting factors are rising leverage (debt-to-equity up to ~1.16 by 2025) and more volatile operating cash flow, which increase risk in weaker credit or funding conditions.Income Statement
Revenue expanded strongly over the period (from 2020 to 2025), with 2025 showing a sharp growth pickup versus the prior year. Profitability is consistently solid, with net profit margins holding around ~29–30% in 2023–2025 and strong operating profitability in those years. The main weakness is margin compression versus 2021–2022 (when margins were notably higher), and revenue dipped in 2024 before re-accelerating in 2025, indicating some volatility in the growth path.82
Very Positive
Balance Sheet
The equity base is substantial and has grown over time, supporting a large asset base typical for a regional bank. Returns on equity are healthy in the mid-teens (where provided), signaling good profitability relative to shareholder capital. Offsetting this, leverage has increased: debt-to-equity moved from ~0.72 (2023) to ~1.16 (2025), and total debt rose materially in 2024–2025, which can elevate risk if credit conditions tighten or funding costs rise.74
Positive
Cash Flow
Cash generation is generally strong, with free cash flow closely tracking net income (roughly ~0.76 to ~0.98 across the years shown), indicating earnings are largely backed by cash. However, cash flow is more volatile than profits: operating cash flow swung significantly year-to-year (notably low in 2022–2023 and higher in 2024–2025), and free cash flow declined in 2022 before recovering, which reduces confidence in near-term cash flow stability.67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 30.11B | 36.67B | 38.72B | 34.35B | 21.48B | 15.92B |
| Gross Profit | 30.11B | 22.90B | 22.22B | 20.13B | 16.49B | 14.17B |
| EBITDA | 10.28B | 13.38B | 13.71B | 12.23B | 10.08B | 8.45B |
| Net Income | 11.25B | 10.93B | 11.29B | 10.06B | 8.19B | 6.80B |
Balance Sheet | ||||||
| Total Assets | 841.90B | 897.49B | 827.22B | 739.30B | 743.37B | 686.07B |
| Cash, Cash Equivalents and Short-Term Investments | 141.23B | 149.72B | 140.17B | 118.88B | 115.01B | 107.75B |
| Total Debt | 76.30B | 79.55B | 64.90B | 44.83B | 47.08B | 53.86B |
| Total Liabilities | 773.29B | 828.57B | 758.39B | 677.05B | 686.30B | 628.36B |
| Stockholders Equity | 68.56B | 68.87B | 68.79B | 62.06B | 56.89B | 57.53B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 11.97B | 14.43B | 4.69B | 2.10B | 7.16B |
| Operating Cash Flow | 0.00 | 12.48B | 15.34B | 5.41B | 2.77B | 7.73B |
| Investing Cash Flow | 0.00 | -708.00M | -1.24B | 727.00M | -694.00M | -1.60B |
| Financing Cash Flow | 0.00 | -11.18B | -6.60B | -9.43B | -3.89B | -2.58B |
DBS Group Technical Analysis
Neutral
180.17
Price Trends
180.65
Negative
173.24
Positive
160.26
Positive
Market Momentum
0.03
Positive
45.03
Neutral
39.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DBSDY, the sentiment is Neutral. The current price of 180.17 is below the 20-day moving average (MA) of 183.28, below the 50-day MA of 180.65, and above the 200-day MA of 160.26, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 45.03 is Neutral, neither overbought nor oversold. The STOCH value of 39.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $128.36B | 15.32 | 16.36% | 4.56% | 4.50% | 8.21% | |
74 Outperform | $96.81B | 12.49 | 22.50% | 9.77% | 11.82% | 3.41% | |
71 Outperform | $149.95B | 19.06 | 14.06% | 3.03% | -1.78% | 0.65% | |
69 Neutral | $108.37B | 17.86 | 16.66% | 0.85% | 10.85% | 7.98% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $81.18B | 15.00 | 10.47% | 3.19% | -20.94% | -18.71% | |
57 Neutral | $113.89B | 15.67 | 10.22% | 2.31% | -2.84% | 25.48% |
* Financial Sector Average
DBSDY
DBS Group
180.64
50.73
39.05%
HDB
Hdfc Bank
31.85
1.84
6.12%
IBN
Icici Bank
30.51
2.81
10.13%
ITUB
Itau Unibanco
9.05
4.51
99.25%
LYG
Lloyds Banking
5.55
2.04
57.94%
MFG
Mizuho Financial
8.87
3.23
57.27%
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.