Broker Name: CGS International Securities
Date of Report: January 16, 2026

Excerpt from CGS International Securities report.

Report Summary
• DBS Group is expected to report muted 4Q25 profit, impacted by weaker seasonality, lower net interest margin (NIM) due to a decline in SORA, and one-off credit cost uptick from exposure to Autobahn Rent A Car.
• Despite earnings headwinds and a downgrade to Hold, DBS maintains an attractive dividend yield (5.6% in FY26F, 6.1% in FY27F) and has ongoing share buybacks, with capital return initiatives providing support to shareholders.
• Valuations are at historical highs (2.4x FY26F P/BV), limiting upside, but the bank’s strong wealth management growth, potential provisioning write-backs, and robust ESG efforts remain key positives.
• Risks include weaker NIM, macroeconomic headwinds raising provisions, and slower non-interest income growth, but the bank’s S\$2.5bn management overlay provides a buffer.
• DBS scores well on ESG (B- LSEG ESG Combined Score), with best-in-class practices, but remains under scrutiny for environmental controversies related to palm oil financing.
• The competitive sector review places DBS at the top among Singapore banks for yield and ROE, though Indonesian and Malaysian peers show higher growth rates and lower valuations.

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