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DBS Group Holdings (SG:D05)
SGX:D05
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DBS Group Holdings
(SGX:D05)
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Rating:78Outperform
Price Target:
S$62.00
▲(14.86% Upside)
DBS Group Holdings scores highly due to its strong financial performance and positive earnings call results, showcasing resilience and strategic growth initiatives. The technical analysis supports a bullish trend, while the valuation remains attractive. Challenges such as lower interest rates and loan growth are noted but are outweighed by the company's strengths.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market position and effective business strategies, contributing to long-term financial stability.
Digital Asset Initiatives
Expansion into digital assets positions DBS as a forward-thinking leader in fintech, potentially driving future revenue streams and market differentiation.
Asset Quality Improvement
Improved asset quality and strong capital ratios enhance financial resilience, reducing risk and supporting sustainable growth.
Negative Factors
Impact of Lower Interest Rates
Lower interest rates can compress margins, impacting profitability and potentially limiting growth in interest income over the medium term.
Challenges in Loan Growth
Declining loan growth in key markets like Hong Kong may hinder overall expansion, affecting revenue from lending activities.
Higher Tax Expenses
Increased tax expenses can reduce net profitability, impacting cash flow and potentially limiting reinvestment opportunities.
DBS Group Holdings (D05) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
$147.46B
Dividend Yield4.89%
Average Volume (3M)4.21M
Price to Earnings (P/E)13.1
Beta (1Y)1.38
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. Volume4,562,425
30 Day Avg. Volume4,209,830
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 Cap1.48
Enterprise Value/Revenue7.38
Enterprise Value/Gross Profit7.38
Enterprise Value/Ebitda21.31
Forecast
1Y Price Target
$52.94Price Target Upside-1.92% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering9
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 generates revenue primarily through interest income from loans and advances, fees from banking services, and investment income. The bank's core revenue streams include interest earned from consumer and corporate lending, which constitutes a significant portion of its earnings. Additionally, DBS earns fees from various banking services, including transaction fees, management fees from wealth management services, and commissions from investment banking activities. The bank has also established strategic partnerships with fintech companies and other financial institutions, enhancing its service offerings and expanding its customer base. Moreover, DBS's focus on digital banking initiatives has streamlined operations, reduced costs, and attracted a younger demographic, further contributing to its revenue growth.
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.78
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.72
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 | 15.92B | 11.53B |
| Gross Profit | 29.65B | 22.22B | 20.18B | 16.27B | 14.17B | 11.53B |
| EBITDA | 10.28B | 13.71B | 12.23B | 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 | 114.30B | 107.75B | 101.48B |
| Total Debt | 76.30B | 64.90B | 44.83B | 47.08B | 53.86B | 80.57B |
| 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
Positive
53.98
Price Trends
51.82
Positive
49.09
Positive
45.81
Positive
Market Momentum
0.57
Negative
62.90
Neutral
80.53
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 53.98 is above the 20-day moving average (MA) of 53.29, above the 50-day MA of 51.82, and above the 200-day MA of 45.81, indicating a bullish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 62.90 is Neutral, neither overbought nor oversold. The STOCH value of 80.53 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | $18.69B | 28.81 | 30.82% | 2.23% | 11.28% | 8.34% | |
| ― | S$300.54B | 5.33 | ― | ― | ― | ― | |
| ― | $147.46B | 13.10 | 17.10% | 4.89% | 2.67% | 6.32% | |
| ― | $75.37B | 10.25 | 12.87% | 5.50% | 0.69% | -0.06% | |
| ― | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
| ― | $57.52B | 9.76 | 12.80% | 5.82% | -0.76% | 4.96% |
* Financial Sector Average
SG:D05
DBS Group Holdings
53.98
17.13
46.47%
SG:O39
OCBC
17.04
2.74
19.20%
SG:S68
Singapore Exchange
16.84
5.79
52.41%
SG:U11
UOB
34.72
4.68
15.57%
SG:HBND
Bank of China Ltd UnSp Singapore Depositary Receipt Repr 1 Sh
0.74
0.14
23.33%
SG:HSHD
HSBC Holdings PLC UnSp Singapore Depositary Receipt Repr 1/5 Sh
3.60
1.29
55.84%
DBS Group Holdings Corporate Events
DBS Group Holdings Reports Stable Profits Amid Economic Challenges
Aug 7, 2025
DBS Group Holdings Ltd, a leading financial services group in Asia, is headquartered in Singapore and operates across 18 markets, offering a comprehensive range of banking services including consumer banking, wealth management, and institutional banking. The company is recognized for its digital transformation efforts and strong regional presence.
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.