DBS Group's Credit Costs Could Be Lower Than Expected -- Market Talk

Dow Jones11-07

0714 GMT - DBS's credit costs next year could come below the lender's expectation for 17 bps-20 bps, say CGS International's Tay Wee Kuang and Lim Siew Khee in a note. They see scope for the lender to continue writing back allowances given stabilizing macro conditions and anticipate around S$100 million to S$150 million in credit cost write-backs over 2025-2027. They reckon DBS could continue to benefit from the bifurcation of capital flows into Asia given its position as one of the largest banks by assets in the region, excluding China. Tay and Lim raise their 2025 and 2027 earnings per share estimates by 1.3% and 2.8% respectively, but lower 2026's by 0.8%. CGSI raises its target for DBS to S$60.50 from S$54.90 and maintains an add rating. DBS falls 1.5% to S$54.71. (megan.cheah@wsj.com)

(END) Dow Jones Newswires

November 07, 2025 02:14 ET (07:14 GMT)

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