Lim & Tan Securities Research Report March 25, 2025
Incoming DBS CEO Tan Su Shan Poised to Drive Singaporean Lender’s Expansion
DBS Group’s New Leader Outlines Vision for Growth
In a recent interview, incoming DBS Group CEO Tan Su Shan shared her plans to bolster the bank’s high-return businesses and explore “bolt-on” acquisitions while navigating global economic uncertainties.
Tan, who will become DBS’ first female CEO and the first to be appointed from within the bank, emphasized her focus on wealth and transaction banking as key drivers of the bank’s future growth. She also expressed openness to selective M&A opportunities that fit DBS’ strategic priorities.
“We are only interested in bolt-on deals rather than large-scale M&As which will divert attention from our areas of focus, including digital and AI – key drivers of the future,” Tan said.
Strengthening DBS’ Core Businesses
Tan highlighted several key priorities for her tenure:
Boosting Wealth and Transaction Banking
Tan plans to further strengthen DBS’ high-return businesses such as wealth management and transaction banking, which have been central to the bank’s success in recent years.
Selective M&A Approach
While open to “bolt-on” acquisitions, Tan emphasized that any deals must align with DBS’ strategy, create additional value, and be accretive within an acceptable timeframe. She said the bank will avoid large-scale M&A that could distract from its digital and AI initiatives.
Upskilling Employees for the Future
DBS has identified around 13,000 staff for upskilling or reskilling, particularly in areas like AI and data-related skills. Tan sees this as crucial to ensuring the bank’s workforce is prepared for the digital future.
Navigating Economic Uncertainties
Acknowledging the “significant uncertainty” in the macroeconomic and geopolitical landscape, Tan said DBS has robust scenario planning and early warning systems in place to proactively address potential challenges.
Attractive Valuation and Dividend Yield
With a market capitalization of $129.5 billion, DBS Group currently trades at 11.5x forward P/E and 1.9x P/B, offering an attractive dividend yield of 4.9%. Consensus target price stands at S$48.63, representing a potential upside of 6.9% from the current share price.
The bank’s normalized dividend yield of 5.3% ($2.40 per share) and 6.6% including the return of excess capital ($2.40 normal dividend plus $0.60 return of excess capital) are seen as very attractive by analysts.
Conclusion
Tan Su Shan’s appointment as DBS Group’s new CEO signals the bank’s commitment to building on its strengths and seizing strategic growth opportunities. Her focus on high-return businesses, selective M&A, and future-proofing the workforce positions DBS well to navigate the uncertain economic landscape and deliver value for shareholders.

Incoming DBS CEO Tan Su Shan Poised to Drive Singaporean Lender’s Expansion

DBS Group’s New Leader Outlines Vision for Growth

In a recent interview, incoming DBS Group CEO Tan Su Shan shared her plans to bolster the bank’s high-return businesses and explore “bolt-on” acquisitions while navigating global economic uncertainties.
Tan, who will become DBS’ first female CEO and the first to be appointed from within the bank, emphasized her focus on wealth and transaction banking as key drivers of the bank’s future growth. She also expressed openness to selective M&A opportunities that fit DBS’ strategic priorities.
“We are only interested in bolt-on deals rather than large-scale M&As which will divert attention from our areas of focus, including digital and AI – key drivers of the future,” Tan said.

Strengthening DBS’ Core Businesses

Tan highlighted several key priorities for her tenure:

Boosting Wealth and Transaction Banking

Tan plans to further strengthen DBS’ high-return businesses such as wealth management and transaction banking, which have been central to the bank’s success in recent years.

Selective M&A Approach

While open to “bolt-on” acquisitions, Tan emphasized that any deals must align with DBS’ strategy, create additional value, and be accretive within an acceptable timeframe. She said the bank will avoid large-scale M&A that could distract from its digital and AI initiatives.

Upskilling Employees for the Future

DBS has identified around 13,000 staff for upskilling or reskilling, particularly in areas like AI and data-related skills. Tan sees this as crucial to ensuring the bank’s workforce is prepared for the digital future.

Navigating Economic Uncertainties

Acknowledging the “significant uncertainty” in the macroeconomic and geopolitical landscape, Tan said DBS has robust scenario planning and early warning systems in place to proactively address potential challenges.

Attractive Valuation and Dividend Yield

With a market capitalization of $129.5 billion, DBS Group currently trades at 11.5x forward P/E and 1.9x P/B, offering an attractive dividend yield of 4.9%. Consensus target price stands at S$48.63, representing a potential upside of 6.9% from the current share price.
The bank’s normalized dividend yield of 5.3% ($2.40 per share) and 6.6% including the return of excess capital ($2.40 normal dividend plus $0.60 return of excess capital) are seen as very attractive by analysts.

Conclusion

Tan Su Shan’s appointment as DBS Group’s new CEO signals the bank’s commitment to building on its strengths and seizing strategic growth opportunities. Her focus on high-return businesses, selective M&A, and future-proofing the workforce positions DBS well to navigate the uncertain economic landscape and deliver value for shareholders.