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DBS Group Holdings (SG:D05)
:D05
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DBS Group Holdings
(OTC:D05)
Select Model
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Rating:78Outperform
Price Target:―
DBS Group Holdings scores well due to its strong financial performance, highlighted by solid revenue growth, zero debt, and efficient cash management. The earnings call also supports a generally positive outlook despite some challenges. However, technical analysis suggests caution, and valuation metrics point to potential undervaluation, making the stock attractive for income-focused investors.
Positive Factors
Negative Factors
DBS Group Holdings (D05) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
S$142.76B
Dividend Yield5.25%
Average Volume (3M)3.49M
Price to Earnings (P/E)12.7
Beta (1Y)1.36
Revenue Growth2.67%
EPS Growth6.32%
CountrySG
Employees41,000
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.99
Shares Outstanding2,838,021,500
10 Day Avg. Volume3,731,907
30 Day Avg. Volume3,486,093
Financial Highlights & Ratios
PEG Ratio0.92
Price to Book (P/B)1.81
Price to Sales (P/S)5.73
P/FCF Ratio8.62
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
S$51.96Price Target Upside3.31% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
DBS Group Holdings Business Overview & Revenue Model
Company DescriptionDBS Group Holdings Ltd (D05) is a leading financial services group headquartered in Singapore, with a strong presence in Asia. Recognized for its innovative banking solutions, DBS offers a comprehensive range of financial services, including consumer banking, wealth management, institutional banking, treasury and markets, and brokerage services. The bank is committed to digital transformation and sustainability, positioning itself as a forward-thinking institution in the financial sector.
How the Company Makes MoneyDBS Group Holdings generates revenue through a diverse array of financial services. Key revenue streams include net interest income from lending activities, where the bank earns interest on loans and advances issued to individuals and corporations. Additionally, non-interest income is a significant contributor, derived from fees and commissions related to wealth management, investment banking, and transaction services. The bank also earns from trading in financial markets, foreign exchange operations, and managing investment portfolios. Strategic partnerships and a focus on digital banking innovations enhance DBS's ability to reach a broader customer base and increase its revenue-generating opportunities. Furthermore, DBS's regional expansion and acquisition strategies contribute to its growth by tapping into emerging markets in Asia.
DBS Group Holdings Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
DBS delivered strong financial results despite facing significant external challenges such as lower interest rates and geopolitical uncertainties. The bank achieved record levels in several areas, including income and wealth management, supported by strategic initiatives in digital assets. However, the impact of declining interest rates and subdued loan growth in certain regions posed challenges. Overall, the bank demonstrated resilience and proactive management, positioning itself well for future uncertainties.Q2-2025 Updates
Positive Updates
Record Performance in a Challenging Environment
DBS reported a strong set of results despite challenging market conditions, with a 5% increase in profit before tax to $3.39 billion and a 1% rise in net profit to $2.82 billion for the second quarter.
Broad-Based Income Growth
Total income grew 5% to $5.73 billion, supported by higher net interest income from strong deposit growth and proactive balance sheet hedging. Markets trading income more than doubled, reaching a 13-quarter high.
Asset Quality and Capital Strength
The NPL ratio improved from 1.1% to 1.0%, and capital remained strong with a CET1 ratio of 17.0% on a transitional basis.
Dividend and Share Buyback
A total dividend of $0.75 per share was declared for the second quarter. Additionally, $370 million worth of shares were bought back under the share buyback program.
Wealth Management Growth
Wealth management fees rose 30% to $1.37 billion, with assets under management growing 16% year-on-year to $442 billion.
Digital Asset Initiatives
DBS made significant strides in the digital asset space, including a 171% increase in digital exchange volumes and initiatives like programmable money using blockchain.
Negative Updates
Impact of Lower Interest Rates
The commercial book net interest income fell 3% quarter-on-quarter and 4% year-on-year due to sharp declines in interest rates.
Challenges in Loan Growth
Hong Kong's loan growth declined by 5% due to subdued credit demand and repayments, impacting overall loan growth.
Higher Tax Expenses
Net profit for the first half fell 1% to $5.72 billion due to higher tax expenses, despite a 3% rise in profit before tax.
Fee Income Decline Compared to Record Quarter
Fee income declined 8% quarter-on-quarter, largely due to lower wealth management and loan-related fees compared to record performances in the previous quarter.
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 1% to $2.82 billion. Total income grew 5% to $5.73 billion, bolstered by higher net interest income, fee income, and markets trading income, which hit a 13-quarter high. The bank maintained a stable cost-to-income ratio of 39% and improved its asset quality with a reduction in the non-performing loan ratio from 1.1% to 1.0%. The CET1 ratio stood at 17.0% on a transitional basis. DBS declared a total dividend of $0.75 per share for the quarter. Despite challenges such as falling interest rates and currency fluctuations, the bank's proactive balance sheet management and robust deposit growth contributed to its resilient financial performance.DBS Group Holdings Financial Statement Overview
Summary
DBS Group Holdings demonstrates robust financial performance with strong revenue growth, high profitability, and excellent cash flow generation. The balance sheet is particularly strong with zero debt and impressive equity ratios.Income Statement
DBS Group Holdings has demonstrated strong revenue growth from $19.55B in 2023 to $22.30B in 2024, representing a solid 14.5% growth rate. The company maintains robust profitability with a gross profit margin of 100% and a net profit margin of approximately 50.6% for 2024. EBIT margin is high at 59.5%, indicating efficient operations. However, the decline in EBIT from 2023 shows room for operational improvements.85
Very Positive
Balance Sheet
The company has a strong balance sheet with zero total debt in 2024, showcasing excellent financial health and stability. The equity ratio stands at 8.3%, reflecting a well-capitalized institution. The return on equity is impressive at 16.4%, indicating efficient use of equity capital. The significant cash position further enhances financial resilience.90
Very Positive
Cash Flow
Cash flow analysis reveals strong operational cash generation with operating cash flow increasing to $15.34B in 2024. Free cash flow of $14.42B shows a robust 207.4% growth from 2023, highlighting excellent cash management. The free cash flow to net income ratio is favorable, indicating efficient capital expenditure management.88
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 29.65B | 21.68B | 19.55B | 16.27B | 14.17B | 11.53B |
| Gross Profit | 29.78B | 21.68B | 20.18B | 16.27B | 14.17B | 11.53B |
| EBITDA | 10.28B | 13.71B | 0.00 | 9.88B | 8.45B | 6.02B |
| Net Income | 11.25B | 11.29B | 10.06B | 8.19B | 6.80B | 4.72B |
Balance Sheet | ||||||
| Total Assets | 841.90B | 827.33B | 739.30B | 743.37B | 686.07B | 649.94B |
| Cash, Cash Equivalents and Short-Term Investments | 141.23B | 140.17B | 118.88B | 115.01B | 107.75B | 101.48B |
| Total Debt | 76.30B | 64.90B | 44.83B | 47.08B | 53.86B | 45.21B |
| Total Liabilities | 773.29B | 760.89B | 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 | 4.69B | 2.10B | 7.16B | 24.33B |
| Operating Cash Flow | 0.00 | 15.34B | 5.41B | 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 | -9.43B | -3.89B | -2.58B | -2.37B |
DBS Group Holdings Technical Analysis
Neutral
50.29
Price Trends
49.79
Positive
46.97
Positive
44.53
Positive
Market Momentum
0.18
Positive
47.47
Neutral
11.33
Positive
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 50.29 is below the 20-day moving average (MA) of 50.97, above the 50-day MA of 49.79, and above the 200-day MA of 44.53, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 47.47 is Neutral, neither overbought nor oversold. The STOCH value of 11.33 is Positive, 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
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | 17.99B | 27.74 | 29.45% | 2.17% | 11.28% | 8.34% | |
78 Outperform | S$142.76B | 12.68 | 17.10% | 5.25% | 2.67% | 6.32% | |
74 Outperform | 11.45B | 10.37 | 11.41% | 5.00% | 3.45% | -22.03% | |
69 Neutral | 57.08B | 9.63 | ― | 5.88% | -0.76% | 4.96% | |
69 Neutral | 15.56B | 15.85 | 8.53% | 3.83% | -0.62% | 34.52% | |
68 Neutral | 73.52B | 10.00 | 12.79% | 5.77% | 0.69% | -0.06% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
SG:D05
DBS Group Holdings
50.29
14.81
41.75%
OVCHF
OCBC
12.38
1.26
11.33%
SPXCF
Singapore Exchange
12.65
4.33
52.04%
UOVEF
UOB
26.10
2.64
11.25%
SG:HBND
Bank of China Ltd UnSp Singapore Depositary Receipt Repr 1 Sh
0.70
0.10
16.67%
SG:HSHD
HSBC Holdings PLC UnSp Singapore Depositary Receipt Repr 1/5 Sh
3.55
1.23
53.02%
DBS Group Holdings Corporate Events
DBS Group Holdings Conducts 26th Annual General Meeting
Apr 26, 2025
DBS Group Holdings Ltd held its Twenty-Sixth Annual General Meeting at Marina Bay Sands Expo and Convention Centre in Singapore. The meeting was chaired by Mr. Olivier Lim Tse Ghow, Lead Independent Director, as Mr. Peter Seah, the Chairman of the Board, participated remotely. The AGM proceeded with a quorum present, indicating the company’s commitment to maintaining governance and stakeholder engagement.
DBS Announces Key Leadership Changes Effective April 2025
Feb 12, 2025
DBS Group Holdings has announced key senior-level appointments effective from 1 April 2025, highlighting its commitment to nurturing internal talent. Derrick Goh will transition from his current role as Head of Group Audit to the new position of Group Chief Operating Officer, where he will oversee Operations and the Transformation Group. Koh Kar Siong, currently in charge of Group Corporate and SME Banking, will succeed Goh as Group Head of Audit. These strategic moves are expected to strengthen DBS’s leadership team and further its operational and transformational objectives.
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.