DBS (SGX:D05)'s 1Q22 earnings of S$1.80bn in line with our estimates. 1Q22 PATMI is 24% of our FY22e forecast. 1Q22 DPS stable q-o-q at 36 cents.
NIM fell 3bps y-o-y to 1.46% but loan growth of 8% y-o-y cushioned NII. NIM grew 3bps q-o-q. Fee income grew 9% q-o-q but fell 7% y-o-y due to weaker market sentiment.
Maintain ACCUMULATE rating on DBS with unchanged target price of S$41.60. Our FY22e estimates remain unchanged. For FY22e, DBS's management guided benign provisions, continued growth in loans and stable NIMs. We believe there is upside to NIM guidance. A 50bps move in interest can raise earnings by 13%.
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