DBS Earnings Preview: Can DBS Break $60 Next Week?
@Tiger_SG：
The "Alpha" of Singapore banking, $DBS(D05.SI)$, is set to release its full-year 2025 and Q4 results on Monday, Feb 9. With the stock currently hovering near the $60 psychological barrier after a massive 2025 rally, all eyes are on whether this report will provide the momentum for a breakout. Market consensus: Annual Net Profit Projection: S$11.275 Billion (Expected slight dip of 1.2%). Q4 Net Profit Projection: S$2.52 Billion (Expected year-on-year decline of 3.8%). Total Annual Income: S$23.21 Billion (Expected 4.1% year-on-year growth). 🕒 2025 Performance Recap: The Banking Trio's Great Divide Before looking ahead, let’s review how the three local giants diverged in 2025—a key factor driving current market sentiment: DBS surged 28%. Fueled by high dividend visibility and a boom in its wealth management segment, it was the undisputed market leader. OCBC rose 19%. Investors were optimistic about its wealth management prospects and potential for further capital returns. UOB fell 4%. The laggard of the group, weighed down by earnings disappointments and concerns over asset quality (particularly US and Greater China real estate exposure). 🔍 The Bull Case: Why are analysts targeting $70? J.P. Morgan has a price target of $70 for DBS by end-2026. The bull case rests on a shift in valuation logic: NIM Bottoming Out: While US rate cuts weighed on margins in late 2025, DBS Research notes that Singdollar short-term rates are bottoming. As funding costs for deposits retreat in 2026, we are nearing a turning point for Net Interest Margins (NIM). Wealth Management as the "Growth Engine": Analysts expect Q4 wealth management fees to surge 44% year-on-year. This proves DBS is successfully pivoting from a traditional "lending bank" to a high-fee "wealth giant." Dividend Certainty: DBS has already guided for a S$0.06 increase in quarterly dividends (from S$0.60 to S$0.66). This "High Dividend + Consistent Buyback" combo makes it a haven for long-term capital. Can DBS break $60 next week? With the stock closing at S$59.66, we are just cents away from history. A. Breakout to $60+! Wealth management growth will shock the market; the rally continues. B. Buy the Rumor, Sell the Fact. Seasonal weakness and "priced-in" news lead to a pullback toward $58. 🎁Join the prediction game Each participant who guesses the correct closing price will share 1,000 Tiger Coins (evenly split). Each participant gets 5 Tiger Coins just for joining. Comment below E.g. I think DBS can break new highs and close above $60 next week. or A
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