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DBS Group Holdings (SG:D05)
SGX:D05
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DBS Group Holdings
(SGX:D05)
78Outperform
Positive Factors
Capital Management
The adherence to its share buyback timeline suggests its capital management initiatives, including its Capital Return DPS of S$0.15 per quarter planned for FY25F, are intact for now.
Dividend Yield
The dividend yield of 6.7% along with a capital return initiative, including a 24 cents annual DPS increase, 15 cents capital return dividend per quarter, and a S$3bn share buyback, are very attractive.
Net New Money
DBS attracted net new money of S$6b for 4Q24 and S$21b for 2024, with AUM expanding 17% yoy to S$426b.
Negative Factors
Effective Tax Rate
A higher effective tax rate from the implementation of the Base Erosion and Profit Sharing (BEPS) initiative likely translated to a 6.2% yoy decline in net profit for 1Q25F.
Global Economy Impact
A weaker global economy from ongoing trade tension between US and its trade partners could soften earnings outlook for remainder of FY25F.
Operating Expenses
Higher expenses, provisions, and the global minimum tax are expected to negatively impact PATMI in FY25.
DBS Group Holdings (D05) vs. S&P 500 (SPY)
Market Cap
$122.01B
Dividend Yield5.01%
Average Volume (3M)6.92M
Price to Earnings (P/E)10.9
Beta (1Y)1.28
Revenue Growth13.03%
EPS Growth12.01%
CountrySG
Employees41,000
SectorFinancial
Sector Strength89
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.02
Shares Outstanding2,840,171,400
10 Day Avg. Volume4,397,190
30 Day Avg. Volume6,919,955
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$45.38Price Target Upside3.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
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 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 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.―
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
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.―
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 22.30B | 19.55B | 16.49B | 14.17B | 14.58B | Gross Profit |
| 22.30B | 20.18B | 16.49B | 14.17B | 14.58B | EBIT |
| 0.00 | 14.29B | 14.37B | 7.78B | 5.33B | EBITDA |
| 0.00 | 0.00 | 9.88B | 8.45B | 6.02B | Net Income Common Stockholders |
| 11.29B | 10.06B | 8.19B | 6.80B | 4.72B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 139.06B | 118.88B | 114.30B | 107.75B | 101.48B | Total Assets |
| 827.22B | 739.30B | 743.37B | 686.07B | 649.94B | Total Debt |
| 0.00 | 49.40B | 47.08B | 53.86B | 45.21B | Net Debt |
| -139.06B | -118.88B | -67.22B | -53.89B | -56.27B | Total Liabilities |
| 758.39B | 677.05B | 686.30B | 628.36B | 595.29B | Stockholders Equity |
| 68.79B | 62.06B | 56.89B | 57.53B | 54.63B |
| Cash Flow | Free Cash Flow | |||
| 14.43B | 4.69B | 2.10B | 7.16B | 24.33B | Operating Cash Flow |
| 15.34B | 5.17B | 2.77B | 7.73B | 24.88B | Investing Cash Flow |
| -1.24B | 727.00M | -694.00M | -1.60B | -415.00M | Financing Cash Flow |
| -6.60B | -9.20B | -3.89B | -2.58B | -2.37B |
DBS Group Holdings Technical Analysis
Positive
43.71
Price Trends
43.18
Positive
43.44
Positive
40.55
Positive
Market Momentum
0.17
Negative
59.33
Neutral
73.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:D05, the sentiment is Positive. The current price of 43.71 is above the 20-day moving average (MA) of 41.67, above the 50-day MA of 43.18, and above the 200-day MA of 40.55, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 59.33 is Neutral, neither overbought nor oversold. The STOCH value of 73.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:D05.
DBS Group Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Performance Comparison
SG:D05
DBS Group Holdings
43.71
9.78
28.82%
JCYCF
Jardine Cycle & Carriage
17.90
-1.81
-9.18%
OVCHF
OCBC
12.52
2.78
28.54%
SPXCF
Singapore Exchange
11.10
4.44
66.67%
UOVEF
UOB
24.10
3.16
15.09%
SG:BN4
Keppel Corporation Limited
6.75
0.38
5.97%
DBS Group Holdings Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q4-2024)
| % Change Since: 2.22%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive sentiment with strong performance in dividend yield, fixed rate book management, and wealth management growth. However, there are notable challenges with increased NPLs in Hong Kong and China, and a cautious approach towards interest rate sensitivity.Q4-2024 Updates
Positive Updates
Strong Dividend Yield and TSR Growth
DBS provided a consistent 6-7% dividend yield in an appreciating currency and a total shareholder return (TSR) growth of 14% over 15 years.
Fixed Rate Book Expansion
DBS expanded its fixed rate book to $200 billion, exceeding the planned $190 billion, which indicates proactive management in response to interest rate changes.
Wealth Management Growth
Wealth Management showed a 40% growth year-on-year, with net new money of $21 billion for the year, including $6 billion in Q3.
Robust Loan Recovery
DBS successfully exited and recovered loans in Hong Kong real estate, selling properties at market clearing prices about 30% below previous valuations.
Generative AI Initiatives
DBS is actively exploring the use of generative AI for operational efficiencies and better client engagement.
Negative Updates
Hong Kong and China Loan Exposure
Increased NPLs in the Hong Kong book due to exchange rate and deteriorating real estate portfolio, with continued stress expected in the Hong Kong SME sector.
NPL Recovery Challenges
Lower recoveries this quarter, impacting the net SP (specific provision) which appeared higher due to consistent SP and reduced recoveries.
Interest Rate Sensitivity
Interest rate sensitivity expected to increase, influenced by fixed asset rollouts and CASA movements, although mitigated by proactive asset management.
Company Guidance
During the DBS Fourth Quarter Analyst Briefing for Fiscal Year 2024, held on February 10, 2025, the company provided insights into its financial guidance and projections. The net interest margin (NIM) was discussed with an expectation of resilience against rate cuts, influenced by about $55 billion of the $200 billion fixed rate book rolling off this year. The company anticipates a sensitivity increase to $6 million to $7 million in NII gains, slightly up from previous quarters. The guidance assumes a 65% pass-through from Fed rate cuts into Sing dollar rates, with a potential upside if rates exceed this assumption. The wealth management segment showed a strong net new money flow of $21 billion for the year, although it experienced a seasonal 15% drop in Q4. The company's ROE is expected to remain at the higher end of the 15% to 17% range, contingent on interest rate trends. Capital management strategies include a $3 billion share buyback, with considerations for potential M&A activities. The company underscored its cautious approach to asset quality, particularly in Hong Kong, while emphasizing strategic growth in wealth management and the potential for further capital returns.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
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.