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DBS Group Holdings (SG:D05)
SGX:D05
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DBS Group Holdings
(SGX:D05)
Rating:78Outperform
Price Target:―
Positive Factors
Capital Return Initiative
DBS's S$3bn share buyback programme between FY25-27F could further lift its long-term ROE by 0.5% pt.
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.
Non-Interest Income Growth
Non-interest income growth was led by wealth management fees and trading income, with an overall increase of 21%.
Negative Factors
Global Economic Uncertainty
A weaker global economy from ongoing trade tension between US and its trade partners could soften earnings outlook for remainder of FY25F.
Higher Costs and Taxes
Higher expenses, provisions, and the global minimum tax are expected to negatively impact PATMI in FY25.
Non-Performing Loans
NPLs increased 4% qoq as upgrades and recoveries were lower, with the NPL ratio inching higher to 1.1%.
DBS Group Holdings (D05) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
$143.89B
Dividend Yield4.79%
Average Volume (3M)4.14M
Price to Earnings (P/E)12.8
Beta (1Y)1.33
Revenue Growth13.03%
EPS Growth12.01%
CountrySG
Employees41,000
SectorFinancial
Sector Strength69
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.99
Shares Outstanding2,838,021,500
10 Day Avg. Volume4,300,276
30 Day Avg. Volume4,142,246
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.52
Enterprise Value/Revenue9.67
Enterprise Value/Gross Profit9.67
Enterprise Value/Ebitda21.71
Forecast
1Y Price Target
$48.03Price Target Upside-5.35% Downside
Rating ConsensusModerate 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: 1.99%|
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call reflected a robust performance in the first half of 2025 with record total income and profit before tax, strong asset quality, and notable growth in wealth management and digital assets. However, the decline in net profit compared to the previous quarter and challenges from external factors like interest rate fluctuations slightly offset the positive aspects.Q2-2025 Updates
Positive Updates
Record First Half Total Income and Profit Before Tax
For the first half of 2025, total income grew 5% to a record $11.6 billion, and profit before tax rose 3% to $6.83 billion.
Strong Asset Quality and Capital Position
The NPL ratio improved from 1.1% to 1.0%, and allowance coverage was 137% and 236% after considering collateral. The CET1 ratio was 17.0% on a transitional basis.
Wealth Management Growth
Wealth Management segment income grew 8% to a record $2.84 billion, with assets under management growing 16% year-on-year to $442 billion.
Digital Asset Initiative
Significant advancements in digital asset capabilities, including a 171% increase in digital exchange volumes and development of tokenized services.
Dividend Announcement
The Board declared a total dividend of $0.75 per share for the second quarter, comprising a $0.60 ordinary dividend and a $0.15 capital return dividend.
Negative Updates
Decline in Net Profit Compared to Previous Quarter
Net profit was 3% lower compared to the previous quarter.
Impact of Lower Interest Rates and Fee Income Decline
Commercial book net interest income fell 3% quarter-on-quarter, and fee income declined 8% due to lower wealth management and loan-related fees.
Challenges from External Environment
Uncertainty around U.S. trade policy, interest rate fluctuations, and geopolitical tensions posed challenges.
Company Guidance
In the second quarter of 2025, DBS delivered strong financial results despite challenging market conditions. Profit before tax increased by 5% to $3.39 billion, and net profit rose 1% to $2.82 billion, even with the impact of the global minimum tax. Total income grew by 5% to $5.73 billion, driven by robust deposit growth and proactive balance sheet hedging. The bank's asset quality improved, with the NPL ratio declining from 1.1% to 1.0%, and allowance coverage remained strong at 137%, or 236% after accounting for collateral. The cost-to-income ratio was stable at 39%, and the CET1 ratio stood at 17.0% on a transitional basis. The board declared a total dividend of $0.75 per share. For the first half of the year, net profit was slightly down by 1% to $5.72 billion due to higher tax expenses, while profit before tax increased by 3% to $6.83 billion. The bank's liquidity coverage ratio was 147% and net stable funding ratio was 114%, both well above regulatory requirements. Moving forward, DBS expects net interest income to be slightly above 2024 levels, with continued growth in wealth management, noninterest income, and cost management, maintaining a cost-to-income ratio in the low 40s.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 | 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 |
| EBITDA | 0.00 | 0.00 | 9.88B | 8.45B | 6.02B |
| Net Income | 11.29B | 10.06B | 8.19B | 6.80B | 4.72B |
Balance Sheet | |||||
| Total Assets | 827.33B | 739.30B | 743.37B | 686.07B | 649.94B |
| Cash, Cash Equivalents and Short-Term Investments | 139.06B | 118.88B | 115.01B | 108.34B | 101.48B |
| Total Debt | 64.90B | 44.83B | 47.08B | 53.86B | 45.21B |
| Total Liabilities | 760.89B | 677.05B | 686.30B | 628.36B | 595.29B |
| Stockholders Equity | 66.39B | 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 | -58.79B | 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
50.74
Price Trends
46.10
Positive
44.32
Positive
43.19
Positive
Market Momentum
1.02
Negative
78.99
Negative
89.70
Negative
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 50.74 is above the 20-day moving average (MA) of 47.98, above the 50-day MA of 46.10, and above the 200-day MA of 43.19, indicating a bullish trend. The MACD of 1.02 indicates Negative momentum. The RSI at 78.99 is Negative, neither overbought nor oversold. The STOCH value of 89.70 is Negative, 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $143.89B | 12.78 | 17.10% | 4.79% | 13.03% | 12.01% | |
76 Outperform | $17.15B | 26.45 | 30.82% | 2.25% | 8.76% | 15.45% | |
74 Outperform | S$75.46B | 10.26 | 12.87% | 5.49% | 0.69% | -0.06% | |
74 Outperform | $10.22B | 9.25 | 10.35% | 7.48% | 3.45% | -22.03% | |
69 Neutral | $59.32B | 9.99 | 12.80% | 5.74% | 5.68% | 5.92% | |
69 Neutral | S$15.03B | 15.31 | 8.75% | 3.85% | -0.62% | 34.52% | |
62 Neutral | C$15.22B | 6.65 | 19.04% | 5.62% | 32.98% | -40.14% |
* Financial Sector Average
Performance Comparison
SG:D05
DBS Group Holdings
50.74
18.71
58.42%
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Keppel Corporation Limited
8.58
2.95
52.40%
SG:S68
Singapore Exchange
16.02
6.53
68.72%
SG:U11
UOB
35.70
7.37
26.01%
SG:O39
OCBC
16.79
3.76
28.83%
SG:C07
Jardine Cycle & Carriage
25.85
1.24
5.03%
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.