DBS Group Holdings (DBSDF) AI Stock Analysis

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Positive Factors

Capital Return

The capital return initiative includes a 24 cents annual increment, 15 cents capital return dividend per quarter, and a S$3bn share buyback.

Earnings

Fee income was the primary contributor to earnings momentum, rising 22% YoY to S$1.3bn, driven by wealth management growth.

Negative Factors

Global Economic Conditions

A weaker global economy from ongoing trade tension between US and its trade partners could soften earnings outlook for remainder of FY25F.

Tax and Provisions

Higher provisions and the global minimum tax are expected to negatively impact PATMI in FY25.

DBS Group Holdings (DBSDF) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$99.47B

Dividend Yield4.68%

Average Volume (3M)5.75K

Price to Earnings (P/E)12.0

Beta (1Y)0.52

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees41,000

SectorFinancial

Sector Strength82

IndustryBanks - Regional

Share Statistics

EPS (TTM)0.79

Shares Outstanding2,840,171,400

10 Day Avg. Volume8,353

30 Day Avg. Volume5,751

Financial Highlights & Ratios

PEG Ratio-0.89

Price to Book (P/B)1.81

Price to Sales (P/S)0.00

P/FCF Ratio8.43

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$35.04

Price Target Upside-1.38% Downside

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 Money

DBS Group Holdings Earnings Call Summary

Earnings Call Date:May 07, 2025

(Q4-2024)

% Change Since: 8.03%|

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 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

Very Positive

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

Very Positive

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.

Cash Flow

Very Positive

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
20.95B	22.30B	19.55B	16.49B	14.17B	14.58B
	Gross Profit
20.95B	22.30B	20.18B	16.49B	14.17B	14.58B
	EBIT
12.08B	13.26B	14.29B	14.37B	7.78B	5.33B
	EBITDA
0.00	0.00	0.00	9.88B	8.45B	6.02B
	Net Income Common Stockholders
10.54B	11.29B	10.06B	8.19B	6.80B	4.72B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	139.06B	118.88B	114.30B	107.75B	101.48B
	Total Assets
783.02B	827.22B	739.30B	743.37B	686.07B	649.94B
	Total Debt
0.00	0.00	49.40B	47.08B	53.86B	45.21B
	Net Debt
0.00	-139.06B	-118.88B	-67.22B	-53.89B	-56.27B
	Total Liabilities
0.00	758.39B	677.05B	686.30B	628.36B	595.29B
	Stockholders Equity
63.68B	68.79B	62.06B	56.89B	57.53B	54.63B
Cash Flow		Free Cash Flow
14.68B	14.43B	4.69B	2.10B	7.16B	24.33B
	Operating Cash Flow
15.39B	15.34B	5.17B	2.77B	7.73B	24.88B
	Investing Cash Flow
-32.54B	-1.24B	727.00M	-694.00M	-1.60B	-415.00M
	Financing Cash Flow
35.89B	-6.60B	-9.20B	-3.89B	-2.58B	-2.37B

DBS Group Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DBSDF		$99.47B	12.05	17.99%	4.68%	―	―
Sector *	64 Neutral	$12.87B	9.81	7.76%	16985.65%	12.28%	-7.83%
OVCHF		$56.83B	10.11	13.78%	5.03%	―	―
SPXCF		$11.93B	24.29	35.32%	2.38%	―	―
UOVEF		$45.67B	10.56	13.43%	4.79%	―	―
HBND		S$268.59B	5.41		5.25%	―	―
HSHD		S$269.29B	10.47	10.78%	3.99%	―	―

* Financial Sector Average

Performance Comparison

DBSDF

DBS Group Holdings

35.53

10.40

41.38%

OVCHF

OCBC

12.65

2.82

28.69%

SPXCF

Singapore Exchange

11.15

4.46

66.67%

UOVEF

UOB

28.11

6.87

32.34%

SG:HBND

Bank of China Ltd UnSp Singapore Depositary Receipt Repr 1 Sh

0.76

0.16

26.67%

SG:HSHD

HSBC Holdings PLC UnSp Singapore Depositary Receipt Repr 1/5 Sh

3.05

0.71

30.34%

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.