Broker Name: OCBC Group Research
Date of Report: 9 February 2026
Excerpt from OCBC Group Research report.
Report Summary
- DBS Group Holdings saw net profit decline 2% YoY to SGD11b in FY25 due to softer rates and higher tax, with 4Q25 net profit missing expectations.
- Despite challenging market conditions, asset quality remains sound, with NPL ratio stable at 1.0% and strong liquidity and capital ratios above regulatory requirements.
- DBS has committed to maintaining high dividend payouts, raising FY25 DPS to SGD3.06 and promising at least 15 Singapore cents per quarter for FY26 and FY27, translating to an attractive 5.5% dividend yield at current prices.
- Management is committed to capital return through dividends and potential share buybacks, with a fair value estimate raised to SGD59.43 per share.
- Growth is expected from wealth management and digital banking, though risks include slower loans/earnings growth, margin pressure, and asset quality deterioration due to economic slowdown.
- DBS remains one of Singapore’s top dividend yield plays, supported by a strong balance sheet and regional expansion strategies.
Above is an excerpt from a report by OCBC Group Research. Clients of OCBC Group Research can be the first to access the full report from the OCBC Group Research website: https://www.ocbc.com/
