To The Moon

🌟🌟🌟DBS $DBS Group Holdings(D05.SI)$  share price has hit a record high this week at SGD 39.70 due to optimism that arose from positive catalysts in the region.

Zacks Equity Research has recently upgraded DBS to a Zacks Rank Number 1 which is a Strong Buy.  This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.  Only the Top 5% of Zacks covered stocks get a "Strong Buy" rating.  This makes DBS a solid candidate for producing market beating returns in the near term.

DBS is poised to benefit from rising regional credit demand in the fast growing  ASEAN region as well as the Johor Singapore Special Economic Zone.  With the Feds interest rate cuts, a lower interest rate environment will likely benefit the shift from fixed deposits to wealth management products commanding higher fees.

China's jumbo stimulus measures in September may result in subsequent growth in loans in the North Asian operations of DBS which accounts for 29% of DBS's loan books.

In Q2 24, DBS achieved net profit of SGD 2.80 billion, up 4% from a year ago.  Return on equity was 18.2%.  Total income increased 9% to SGD 5.48 billion.  

For the first half of 2024, DBS's net profit rose 9% to a new record high of SGD 5.76 billion with return on equity at 18.8%.  Total income increased 11% to SGD 11.0 billion from broad base growth in net interest income, fee income and treasury customer sales.  The cost income ratio was 39% and profit before allowances rose 10% to a record SGD 6.79 billion.

Capital for DBS remained healthy with Common Equity Tier 1 ratio at 14.8%.  The leverage ratio was at 6.5%, more than twice the regulatory minimum of 3%.

DBS's Balance sheet asset quality remained sound.  Non performing assets fell 3% from the previous quarter to SGD 5.08 billion as new non performing asset formation was more than offset by repayments and write offs. The non performing loan ratio was unchanged at 1.1%.

DBS rewards its shareholders well with dividends paid quarterly.  The current dividend yield is 5.08%.  DBS is scheduled to report its Q3 24 Earnings on 7 November 2024.

DBS's current CEO Piyush Gupta will be retiring in March 2025 and Tan Su Shan will be the new CEO thereon.  This is the first time that DBS has filled the top job internally.  Ms Tan comes with a wealth of banking experience, having more than 35 years of experience in consumer banking, wealth management and institutional banking, with stints in Hong Kong, Tokyo and London. 

DBS was founded in 1968 to help develop a young nation.  Since then DBS has grown alongside Singapore to become the largest bank in South East Asia.  DBS has won numerous awards over the years including the World's Best Bank by Euromoney  and Global Bank of the Year by The Banker.  DBS has been accorded the Safest Bank in Asia Award by Global Finance for 15 consecutive years from 2009 to 2023.

I am proud of DBS's achievements and happy that I own a small part of this wonderful bank.  I believe that DBS will hit a new high of SGD 40.00 soon and am super excited about it.  Analysts are bullish on DBS with a Buy rating,  Average Target price of SGD 40.30.

DBS has done Singapore proud and in my opinion is The Crown Jewel in Temasek Holdings' portfolio.

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