Broker Name: CGS International Securities
Date of Report: February 10, 2026
Excerpt from CGS International Securities report.
- Report Summary:
- DBS Group expects softer earnings in FY26 due to lower net interest income (NII) amid a low interest rate environment and slightly higher credit costs.
- The bank maintains its capital return initiatives, including special dividends and share buybacks, though buyback completion remains uncertain.
- Analysts reduced FY26F-27F EPS estimates by 2.3-5.2% and introduced FY28F estimates, lowering the target price to S\$60 and maintaining a Hold rating.
- Asset quality remains stable, with specific provisions largely linked to a previously watchlisted real estate account; no systemic stress detected.
- DBS continues to show strong wealth management fee growth, but lacks near-term earnings catalysts; upside and downside risks are tied to deposit growth, NII, macroeconomic conditions, and fee income sustainability.
- DBS scores well on ESG, despite environmental controversies from palm oil financing; the bank is committed to sustainable finance and zero thermal coal exposure by 2039.
- Financial highlights include steady net profit, high ROE, robust dividend yield, and stable asset quality ratios.
Above is an excerpt from a report by CGS International Securities. Clients of CGS International Securities can be the first to access the full report from the CGS International Securities website: https://www.cgs-cimb.com
