Broker Name: CGS International
Date of Report: April 30, 2026

Excerpt from CGS International report

Report Summary

• Stock: DBS Group (DBS SP)
• Action: Upgrade to Add (previously Hold)
• Target Price: S\$63.80 (up from S\$60.00)
• Current Price: S\$58.50
• Key Idea: DBS is well-positioned to navigate the current interest rate environment with resilient net interest income and strong growth in wealth management fees.
• Highlights:
  • Management expects no US Fed rate cuts in 2026 due to inflationary pressures.
  • DBS has reduced its fixed rate asset exposure from S\$80bn to S\$60bn, mitigating NIM pressure.
  • Wealth management fee income grew 25.3% yoy and 40.6% qoq in 1Q26, with fee yield rising to 0.74% of wealth AUM.
  • EPS forecasts for FY26F-28F raised by 1.1-1.3% due to stronger wealth management performance.
  • Long-term ROE assumption revised to 19.0% (from 18.0%).
  • Dividend payout ratio expected to remain high (85-89.5%).
  • Re-rating catalysts include sustained wealth management fee growth and potential write-back of provisions.
  • Downside risks: slower net new money inflow and higher credit costs from non-performing assets.

Ticker: DBS SP

above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website : https://www.cgs-cimb.com