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DBS Group Holdings (SG:D05)
SGX:D05
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DBS Group Holdings
(SGX:D05)
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Rating:73Outperform
Price Target:
S$66.00
▲(15.55% Upside)
Action:ReiteratedDate:02/09/26
The score is driven primarily by strong financial performance (solid profitability and cash generation) balanced by higher balance-sheet risk from leverage volatility. Technicals are supportive with price above key moving averages and positive momentum, while valuation is helped by a reasonable P/E and attractive dividend yield. Earnings call guidance points to steady-to-slightly softer near-term profit amid rate and credit-cost headwinds, tempering upside.
Positive Factors
Profitability & Cash Generation
Sustained high profitability and strong free cash flow provide durable internal funding for lending, reserves and shareholder returns. Consistent net income growth and robust FCF in 2024–2025 support capital build, dividend policy and strategic reinvestment even through cycles.
Wealth and Fee Income Growth
Expanding wealth assets and higher fee income diversify revenue away from interest spreads, creating more recurring, higher-margin income. Strong wealth flows and fee momentum improve revenue stability and cross-sell potential, supporting margins even if NII softens.
Strong Deposits, Capital and Liquidity
Large deposit inflows, especially CASA, strengthen low-cost funding and reduce refinancing risk. Robust liquidity and CET1 metrics give balance-sheet flexibility to expand loans, absorb shocks, sustain dividends and pursue growth without relying on volatile wholesale funding.
Negative Factors
Elevated Specific Allowances (Real‑estate NPL)
Material uptick in specific allowances tied to a reclassified real‑estate exposure signals pocketed credit stress. Higher specific provisions directly reduce earnings and capital, and may presage further credit costs if property markets or individual exposures deteriorate.
Balance‑Sheet Leverage Volatility
Sharp swings in reported debt levels increase sensitivity to funding and interest‑rate conditions. Volatile leverage can strain liquidity planning, amplify refinancing risk and complicate capital management, reducing predictability of returns and raising downside in stressed scenarios.
NIM Pressure from Lower Rates
Sustained declines in benchmark rates compress net interest margins, the core earnings driver for a bank. Even with fee growth, weaker NII limits medium‑term earnings leverage from loan growth and requires ongoing balance‑sheet hedging or product repricing to restore sustainable margins.
DBS Group Holdings (D05) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
$162.33B
Dividend Yield5.06%
Average Volume (3M)4.21M
Price to Earnings (P/E)14.8
Beta (1Y)1.43
Revenue Growth2.67%
EPS Growth6.32%
CountrySG
Employees41,000
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)3.28
Shares Outstanding2,844,057,100
10 Day Avg. Volume4,562,425
30 Day Avg. Volume4,209,830
Financial Highlights & Ratios
PEG Ratio-6.40
Price to Book (P/B)2.32
Price to Sales (P/S)4.22
P/FCF Ratio13.15
Enterprise Value/Market Cap0.57
Enterprise Value/Revenue3.05
Enterprise Value/Gross Profit3.05
Enterprise Value/Ebitda8.94
Forecast
1Y Price Target
$62.42Price Target Upside9.28% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)3.99
Revenue Forecast (FY)$23.63B
DBS Group Holdings 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 primarily through interest income from loans and advances, fees from banking services, and investment income. The bank's core revenue streams include interest earned from consumer and corporate lending, which constitutes a significant portion of its earnings. Additionally, DBS earns fees from various banking services, including transaction fees, management fees from wealth management services, and commissions from investment banking activities. The bank has also established strategic partnerships with fintech companies and other financial institutions, enhancing its service offerings and expanding its customer base. Moreover, DBS's focus on digital banking initiatives has streamlined operations, reduced costs, and attracted a younger demographic, further contributing to its revenue growth.
DBS Group Holdings Earnings Call Summary
Earnings Call Date:Feb 08, 2026
(Q4-2025)
| Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call highlighted multiple record outcomes — record pre-tax profit, record total income, record deposit growth, strong wealth flows/AUM expansion, higher fee income and robust capital and dividends — demonstrating resilience and effective balance sheet management despite significant macro headwinds (falling rates, stronger SGD) and a one-off tax charge. Key challenges included elevated specific allowances from a real-estate NPL, quarterly volatility in markets income and fee seasonality, modest NIM pressure from lower SORA/HIBOR, and a small year-on-year decline in net profit driven by higher tax. On balance the positives (sustained record performance, strong deposit and wealth franchise, capital returns and disciplined costs) outweigh the negatives, though near-term earnings face rate and market volatility risks.Q4-2025 Updates
Positive Updates
Record Pre-tax Profit and Strong Full-Year Income
Full-year pre-tax profit reached a record SGD 13.1 billion; total income rose 3% to a record SGD 22.9 billion despite a challenging rate environment and adverse FX translation.
Solid Net Profit and Returns
Full-year net profit was SGD 11.0 billion with return on equity (ROE) at 16.2% and return on tangible equity (ROTCE) at 17.8%.
Net Interest Income at New High
Group net interest income (NII) was modestly higher for the year at SGD 14.5 billion, a new high driven by record deposit growth and proactive balance sheet hedging.
Fee Income and Wealth Management Outperformance
Gross fee income rose 15% to a record SGD 5.86 billion and net fee income rose 18% to SGD 4.90 billion, led by Wealth Management; Wealth AUM grew 19% (constant currency) to SGD 488 billion.
Markets and Treasury Customer Sales Strength
Markets trading income rose 49% (SGD 452 million) to SGD 1.37 billion (highest since 2021). Treasury customer sales grew 14% to a record SGD 2.14 billion.
Record Deposit Growth and Strong Liquidity
Total deposits increased by SGD 64 billion or 12% (largest absolute increase in bank history), with over two-thirds of the rise in CASA; liquidity coverage ratio 155% and NSFR 117%.
Wealth Net New Money and Segment Income
Wealth Management recorded net inflows of SGD 12 billion in Q4 and a full-year record SGD 39 billion (up 21% year-on-year); full-year Wealth segment income rose 9% to SGD 5.68 billion.
Capital and Dividend Actions
Transitional CET1 ratio was strong at 17.0% (fully phased-in 15.0%), leverage ratio 6.2%. Board proposed Q4 final total dividend SGD 0.81 per share (ordinary SGD 0.66, capital return SGD 0.15); full-year dividend SGD 3.06 per share (up 38%).
Cost Discipline
Full-year expenses rose 4% to SGD 9.25 billion with cost-to-income ratio unchanged at 40%; Q4 expenses were 1% lower at SGD 2.37 billion.
Prudent Reserves and Allowance Coverage
Total allowance reserves at SGD 6.28 billion with allowance coverage at 130% (197% after collateral). General allowance overlay of SGD 2.4 billion remains in place.
Negative Updates
Net Profit Slightly Lower Year-on-Year Due to Tax
Full-year net profit was 3% lower (SGD 11.0 billion) largely due to SGD 400 million of higher tax expense from the implementation of the 15% global minimum tax.
Quarterly Profitability Pressure
Q4 pre-tax profit fell 6% year-on-year to SGD 2.8 billion; Q4 net profit declined ~20% quarter-on-quarter versus the prior quarter.
Rate Headwinds and NIM Compression
SORA and HIBOR fell almost 200 basis points year-on-year, pressuring net interest margin; group NIM was 1.93% in Q4 (down 3 bps quarter-on-quarter) and group NII declined 4% in Q4.
Higher Credit Specific Allowances from Real-Estate NPL
Specific allowances increased materially: Q4 specific allowances rose to SGD 415 million; full-year specific allowances were around SGD 845 million (~19 bps of loans), driven largely by a previously watchlisted real estate exposure reclassified to NPL.
Total Allowances Increased
Total allowances rose 27% (SGD 169 million) to SGD 791 million for the full year, reflecting higher specific allowances despite some general allowance write-backs.
Quarterly Volatility in Markets Income and Fees
Markets trading income fell 65% quarter-on-quarter (seasonal and portfolio rebalancing) and fee income showed meaningful quarter-on-quarter declines (gross fee income down ~13% QoQ; some fee lines down due to seasonality).
Headwinds from Strong Singapore Dollar
Adverse translation effects from a stronger Singapore dollar partially offset income gains and moderated reported growth in some lines.
Company Guidance
Management guided that 2026 total income should be around 2025 levels assuming SORA at 1.25 and two further rate cuts with a strong USD; they expect commercial‑book non‑interest income to grow in the high single digits, Wealth Management to grow in the mid‑teens, loan growth in the mid‑single digits, expenses to rise mid‑single digits (~4%), and specific provisions (SP) to run about 17–20 bps (with scope for general allowance write‑backs), leaving net profit slightly below 2025; the Board intends to maintain a SGD 0.15 per‑share quarterly capital‑return dividend through 2026–27 (Q4 total dividend was SGD 0.81 per share—SGD 0.66 ordinary + SGD 0.15 capital return; FY2025 total dividend SGD 3.06 per share / SGD 8.68bn, +38%, and annualized at SGD 3.24 implying a 5.5% yield), while capital and liquidity remain robust (transitional CET1 17.0%, fully phased‑in 15.0%, LCR 155%, NSFR 117%).DBS Group Holdings Financial Statement Overview
Summary
Strong and fairly consistent profitability (net income growth over 2020–2024; ~29% net margins in 2023–2024) and robust free cash flow in 2024–2025 support the score. Offsetting factors include uneven revenue/margin trajectory and a notable 2025 leverage swing (sharp rise in total debt), increasing balance-sheet sensitivity to funding/credit conditions.Income Statement
Profitability is strong and fairly consistent, with net income rising from 2020 to 2024 (about 4.7B to 11.3B) and healthy net profit margins in 2023–2024 (~29%). Revenue has expanded materially over the cycle (2021–2024), though growth has been uneven (declines in 2020–2021 followed by sharp rebounds in 2022–2023 and a more moderate increase in 2024). A key watch item is margin compression versus earlier years (2021–2022 margins were higher than 2023–2024). 2025 annual revenue is slightly lower than 2024, suggesting momentum may be cooling even as earnings remain solid.78
Positive
Balance Sheet
Capital base is sizeable and growing modestly (equity roughly 54.6B in 2020 to ~68.8B in 2024–2025), and returns on equity in 2023–2024 are solid (~16%). However, leverage/indebtedness looks volatile: total debt rises sharply in 2025 (to ~158.8B) versus 2024 (~64.9B), and earlier years also show periods of higher leverage (e.g., debt-to-equity above 1x in 2020). Total assets have grown meaningfully over time, but the variability in leverage reduces balance-sheet quality and increases sensitivity to funding/credit conditions.62
Positive
Cash Flow
Cash generation is generally strong with positive free cash flow every year shown and very high free cash flow in 2024–2025 (~14.4B and ~12.2B). Cash flow quality is decent, with free cash flow close to net income in 2023–2024 (roughly ~0.87–0.94x). That said, operating and free cash flow have been volatile across the cycle (notably very high in 2020, much lower in 2022–2023, then rebounding in 2024), which is a risk for predictability and can reflect working-capital or balance-sheet movements typical for banks.70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 30.11B | 37.89B | 38.72B | 34.35B | 21.48B | 15.92B |
| Gross Profit | 30.11B | 23.34B | 22.22B | 20.13B | 16.49B | 14.17B |
| EBITDA | 10.28B | 13.85B | 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 | 114.30B | 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 | 12.16B | 14.43B | 4.69B | 2.10B | 7.16B |
| Operating Cash Flow | 0.00 | 12.69B | 15.34B | 5.41B | 2.77B | 7.73B |
| Investing Cash Flow | 0.00 | -95.40B | -1.24B | 727.00M | -694.00M | -1.60B |
| Financing Cash Flow | 0.00 | 80.17B | -6.60B | -9.43B | -3.89B | -2.58B |
DBS Group Holdings Technical Analysis
Neutral
57.12
Price Trends
57.68
Negative
55.58
Positive
51.18
Positive
Market Momentum
-0.15
Positive
42.37
Neutral
38.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:D05, the sentiment is Neutral. The current price of 57.12 is below the 20-day moving average (MA) of 58.20, below the 50-day MA of 57.68, and above the 200-day MA of 51.18, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 42.37 is Neutral, neither overbought nor oversold. The STOCH value of 38.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SG:D05.
DBS Group Holdings Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | S$288.84B | 5.40 | ― | 5.05% | ― | ― | |
75 Outperform | $19.49B | 29.92 | 30.82% | 2.27% | 11.28% | 8.34% | |
73 Outperform | $162.33B | 14.83 | 17.10% | 5.06% | 2.67% | 6.32% | |
71 Outperform | $96.31B | 13.15 | 12.87% | 4.71% | 0.69% | -0.06% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $61.10B | 13.39 | 12.80% | 6.49% | -0.76% | 4.96% |
* Financial Sector Average
SG:D05
DBS Group Holdings
57.12
13.98
32.40%
SG:O39
OCBC
21.43
5.21
32.14%
SG:S68
Singapore Exchange
18.20
5.22
40.23%
SG:U11
UOB
36.97
1.00
2.78%
SG:HBND
Bank of China Ltd UnSp Singapore Depositary Receipt Repr 1 Sh
0.76
0.02
2.58%
SG:HSHD
HSBC Holdings PLC UnSp Singapore Depositary Receipt Repr 1/5 Sh
4.76
1.75
58.14%
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.