DBS may benefit from the shift in income growth to non-interest-income from net-interest income, RHB Research's Singapore Research team says in a note, raising the stock's target price to S$38.30 from S$36.70 with an unchanged buy rating.
This should free up capital and support capital-return initiatives for the Singapore-listed bank, the team says.
In a scenario of flattish earnings as the rate cycle turns, DBS' commitment to increase its dividend per share by 24 Singapore cents a year means its 'absolute' DPS will continue to rise, the team adds. Absolute DPS typically excludes special dividends.
Shares are 1% higher at S$36.43.
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