DBS's Higher 2026 Guidance Appears Largely Within Expectations

Dow Jones
08/06

0122 GMT - DBS Group's higher guidance for 2026 appears to be largely within expectations, says Citi analyst Tan Yong Hong in a note. The Singapore lender raised its guidance for 2026 total income to grow, versus a previous expectation for it to be stable. DBS also expects its commercial book noninterest income growth to be a mid teen percentage, compared with a high single digit. This implies that commercial book noninterest income growth could slow in 2H, given that 1H's growth came in at 20%, Tan says. While DBS's 2Q profit beat consensus estimates, Tan flags it was driven by volatile items, such as a repayment-driven general provisions writeback and lower-than-expected total provisions. Citi maintains its buy rating and target price of S$73.50. Shares rise 1.8% to 74.86 Singapore dollars.

 

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