To The Moon

$DBS(D05.SI)$ **Why DBS Group Holdings is a Good Investment in March 2026**

DBS, Southeast Asia’s largest bank by assets, remains a compelling investment despite moderating interest rates. As of mid-March 2026, the stock trades at S$55.31 after a pullback from 2025 highs, delivering a strong 33% one-year total return while offering stability in a volatile environment.

FY2025 results were resilient: net profit reached S$11.0 billion (down 3% YoY due to rate headwinds and higher tax), but total income hit a record S$22.9 billion (+3%), driven by deposit growth of 12% and proactive hedging. Pre-tax profit set a new high at S$13.1 billion with ROE at 16.2%. NIM eased to 1.93%, yet fee income (especially wealth management) and treasury sales surged, offsetting pressures. NPLs stayed low at 1.0%, underscoring strong asset quality and prudent risk management.

Shareholder returns shine: FY2025 dividends totalled S$3.06 per share (+38% YoY, including S$0.60 capital returns), equating to a ~5.5% trailing yield at current levels. Management has committed to maintaining capital returns through FY2027 and stepping up ordinary dividends, with analysts forecasting ~S$3.24 for 2026 (yield ~5.8%).

Analysts are bullish: consensus targets hover at S$59–61 (8–10% upside), with POEMS at S$60 (Accumulate) citing dividend stability and non-interest income growth. Capital adequacy (CET1 17%) supports potential buybacks.

Risks include further NIM compression and a premium valuation (~2.2x book). However, DBS’s wealth diversification, record income base, and reliable high-yield payouts position it as a defensive growth play for long-term investors in Singapore and the region. At current prices, it offers attractive total returns of 10–15%+ in 2026.

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