DBS's Raised 2024 Guidance Offers Surface-Level Relief -- Market Talk

Dow Jones08-08

0723 GMT - DBS Group's higher 2024 guidance and stable asset quality could soothe the market given the stock's recent underperformance, but focus will return to the 2025 earnings outlook, Citi Research says. Analyst Tan Yong Hong notes positives in the quarterly results, such as the Singapore bank's net interest margin and nonperforming-loan ratio remaining stable at 2.14% and 1.1%, respectively, and its robust capital position, with a 14.8% CET1 ratio. But there are also negatives, he says in a note, including a 4% on-quarter rise in operating expenses--the heaviest among peers--and an unchanged dividend of S$0.54, which could disappoint some investors. Tan rates DBS at sell with a S$31.90 target due to uncertainties around its earnings prospects amid Citi's expectations for 225 bps of Fed rate cuts. Shares fall 0.4% to S$33.51. (farah.elias@wsj.com)

(END) Dow Jones Newswires

August 08, 2024 03:23 ET (07:23 GMT)

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But there are also negatives, he says in a note, including a 4% on-quarter rise in operating expenses--the heaviest among peers--and an unchanged dividend of S$0.54, which could disappoint some investors. Tan rates DBS at sell with a S$31.90 target due to uncertainties around its earnings prospects amid Citi's expectations for 225 bps of Fed rate cuts. Shares fall 0.4% to S$33.51. (farah.elias@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  August 08, 2024 03:23 ET (07:23 GMT)\n</p>\n<p>\n  Copyright (c) 2024 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>DBS's Raised 2024 Guidance Offers Surface-Level Relief -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nDBS's Raised 2024 Guidance Offers Surface-Level Relief -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-08-08 15:23 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://dowjonesnews.com/newdjn/logon.aspx?AL=N><strong>Dow Jones</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>0723 GMT - DBS Group's higher 2024 guidance and stable asset quality could soothe the market given the stock's recent underperformance, but focus will return to the 2025 earnings outlook, Citi ...</p>\n\n<a href=\"https://dowjonesnews.com/newdjn/logon.aspx?AL=N\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU2257852520.SGD","symbol_name":"JPMorgan Funds - Asia Growth A (acc) SGD","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2457960354","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2457960354","pubTimestamp":1723101780,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0723 GMT - DBS Group's higher 2024 guidance and stable asset quality could soothe the market given the stock's recent underperformance, but focus will return to the 2025 earnings outlook, Citi Research says. Analyst Tan Yong Hong notes positives in the quarterly results, such as the Singapore bank's net interest margin and nonperforming-loan ratio remaining stable at 2.14% and 1.1%, respectively, and its robust capital position, with a 14.8% CET1 ratio. But there are also negatives, he says in a note, including a 4% on-quarter rise in operating expenses--the heaviest among peers--and an unchanged dividend of S$0.54, which could disappoint some investors. Tan rates DBS at sell with a S$31.90 target due to uncertainties around its earnings prospects amid Citi's expectations for 225 bps of Fed rate cuts. Shares fall 0.4% to S$33.51. 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