DBS Group (DBSDY) AI Stock Analysis

DBS Group

(Other OTC:DBSDY)

Select Model

Rating:79Outperform

Price Target:$263.00▲(16.89% Upside)

Action:reiterated

Date:08/06/26

The overall score of 79 reflects DBS's strong financial health, positive technical trend, and encouraging earnings outlook, tempered by a slightly elevated P/E ratio. The bank's robust profitability, solid balance sheet, and record fee income are key strengths, while net interest margin pressure and macro uncertainties present manageable risks.

Positive Factors

Wealth management AUM growthA 17% YoY AUM increase and record wealth income indicate durable fee revenue diversification. Larger, sticky AUM supports recurring advisory and distribution fees, improves customer stickiness and cross‑sell potential, and partially offsets structural net interest income pressure over the medium term.

Negative Factors

Persistent NII pressureA sustained decline in net interest income amid lower SORA and a guidance outlook that expects no near-term rate hikes creates a structural earnings headwind. NII is the bank's core earnings driver; prolonged compression forces reliance on fee income and can constrain long-term margin recovery.

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

Market Cap: $161.99B
Dividend Yield: 4.34%
Average Volume (3M): 48.67K
Price to Earnings (P/E): 18.5
Beta (1Y): 0.35
Revenue Growth: -2.26%
EPS Growth: 2.77%
Country: US
Employees: 39,721
Sector: Financial
Sector Strength: 68
Industry: Banks

DBS Group Business Overview & Revenue Model

Company Description

DBS Group Holdings Ltd. is an investment company, which engages in retail, small and medium-sized enterprise, corporate, and investment banking services. It operates through the following business segments: Consumer Banking/Wealth Management, Institu...

How the Company Makes Money

DBS primarily makes money through a mix of net interest income, fee and commission income, and trading/treasury income, alongside other operating income. 1) Net interest income (core earnings): DBS takes customer deposits and other funding and deploy...

DBS Group Earnings Call Summary

Earnings Call Date:Aug 04, 2026(Q2-2026)|% Change Since:-1.01%|Next Earnings Date:Nov 04, 2026

Earnings Call SentimentPositive

The call emphasizes multiple record outcomes — including record net profit, record total income and wealth AUM — and strong growth in fee income, treasury customer sales and trading income, supported by disciplined costs, resilient asset quality and solid liquidity/capital metrics. Offsetting these positives are persistent net interest income pressure from lower rates, modest expense inflation, capital ratio effects from capital returns and RWA growth, and macro/regulatory uncertainties (including China policy changes and geopolitical volatility). Overall, the results demonstrate robust franchise strength and successful diversification into fee and customer-driven income, while management remains cautious on NII and external risks.

Positive Updates

Record Quarterly and Half-Year Profit

Net profit reached a record $3.08 billion in Q2, up 9% year-on-year; first-half net profit was a record $6.01 billion, up 5% year-on-year.

Negative Updates

Net Interest Income Pressure

Group net interest income declined 2% year-on-year in Q2 to $3.58 billion and fell 3% for the first half to $7.08 billion; net interest margin edged down (~2 bps QoQ to 1.87%) as SORA fell ~100 bps YoY, creating continued NII headwinds.

Company Guidance

Management guided that 2026 total income should exceed last year’s level and that the year‑to‑date decline in group net interest income (first‑half NII was down ~3%) should narrow as rates bottom out; they do not expect further rate hikes and see SORA averaging around 1.2 for the remainder of the year. Other forward targets: deposit growth in the high single digits, commercial‑book non‑interest income growth raised to the mid‑teens, a cost‑to‑income ratio to be kept in the low‑40s (Q2 was 39%), and specific provisions assumed at 17–20 basis points with a general‑provision overlay of about SGD 2.4 billion; management will continue proactive hedging and opportunistic trading while maintaining strong capital and liquidity (CET1 ~16.6% transitional / ~14.6% fully phased‑in; LCR 142%; NSFR 113%).

DBS Group Financial Statement Overview

Summary

DBS demonstrates strong profitability with net margins above 29%, solid balance sheet (equity-to-assets ~7.5-8.4%, ROE improving), and robust cash flow conversion. Slight revenue moderation and increased leverage are minor concerns.

Income Statement

78Positive

Balance Sheet

85Very Positive

Cash Flow

72Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	36.00B	36.67B	38.72B	34.35B	21.48B	15.92B
Gross Profit	35.81B	22.90B	22.22B	20.13B	16.49B	14.17B
EBITDA	13.77B	13.38B	13.71B	12.23B	10.08B	8.45B
Net Income	11.22B	10.93B	11.29B	10.06B	8.19B	6.80B
Balance Sheet
Total Assets	965.60B	897.49B	827.22B	739.30B	743.37B	686.07B
Cash, Cash Equivalents and Short-Term Investments	152.56B	149.72B	140.17B	118.88B	115.01B	107.75B
Total Debt	86.40B	79.55B	64.90B	44.83B	47.08B	53.86B
Total Liabilities	895.38B	828.57B	758.39B	677.05B	686.30B	628.36B
Stockholders Equity	70.17B	68.87B	68.79B	62.06B	56.89B	57.53B
Cash Flow
Free Cash Flow	0	11.97B	14.43B	4.69B	2.10B	7.16B
Operating Cash Flow	0	12.48B	15.34B	5.41B	2.77B	7.73B
Investing Cash Flow	0	-708.00M	-1.24B	727.00M	-694.00M	-1.60B
Financing Cash Flow	0	-11.18B	-6.60B	-9.43B	-3.89B	-2.58B

DBS Group Technical Analysis

Technical Analysis SentimentNegative

Last Price225.00

Price Trends

50DMA238.55Negative

100DMA228.78Negative

200DMA203.48Positive

Market Momentum

MACD-2.81Positive

RSI27.55Positive

STOCH-0.01Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DBSDY, the sentiment is Negative. The current price of 225.00 is below the 20-day moving average (MA) of 232.36, below the 50-day MA of 238.55, and above the 200-day MA of 203.48, indicating a neutral trend. The MACD of -2.81 indicates Positive momentum. The RSI at 27.55 is Positive, neither overbought nor oversold. The STOCH value of -0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DBSDY.

DBS Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

DBSDY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IBN	82Outperform	$105.43B	16.95	15.93%	0.85%	0.06%	1.65%
DBSDY	79Outperform	$162.40B	18.47	16.23%	4.34%	-2.26%	2.77%
MFG	73Outperform	$118.51B	13.82	12.28%	1.81%	2.65%	54.00%
HDB	71Outperform	$112.49B	13.31	13.54%	5.42%	-3.00%	2.20%
MUFG	68Neutral	$245.78B	14.52	12.34%	3.11%	7.56%	43.28%
SMFG	68Neutral	$155.08B	14.48	10.89%	2.97%	7.19%	41.88%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

* Financial Sector Average

Performance Comparison

DBSDY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DBSDY	DBS Group Holdings	228.93	73.40	47.19%
HDB	Hdfc Bank	22.18	-13.52	-37.87%
IBN	Icici Bank	29.45	-0.75	-2.47%
MUFG	Mitsubishi Ufj Financial	21.56	6.49	43.07%
MFG	Mizuho Financial Group	9.66	3.00	45.05%
SMFG	Sumitomo Mitsui Financial	24.20	8.06	49.94%

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.

Date of analysis: Aug 06, 2026

DBS Group AI Stock Analysis