Broker Name: CGS International Securities
Date of Report: February 10, 2026
Excerpt from CGS International Securities report.
Report Summary
- DBS Group expects slightly weaker earnings for FY26F due to lower net interest income (NII) amid a low interest rate environment and normalised credit costs.
- Management is committed to returning excess capital through special dividends and share buybacks, although progress on buybacks is slower than planned.
- Asset quality remains stable, with no systemic stress, despite a specific provision related to real estate exposure.
- DBS maintains a Hold rating with a lowered target price of S\$60, citing a lack of near-term earnings growth catalysts, though wealth management and fee income show resilience.
- Key upside risks include stronger deposit growth and continued fee income momentum; downside risks involve steeper NIM declines, macroeconomic weakness, and slower non-interest income growth.
- DBS’s ESG score is B-, with strong progress in sustainable finance and responsible lending, though environmental controversies related to palm oil financing remain a concern.
- Financials show moderate revenue and profit growth, robust ROE, and high dividend payout ratios over the forecast period.
- Sector comparison highlights DBS’s leading position in Singapore but underlines competitive challenges across regional banks.
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 website: https://www.cgs-cimb.com
