- DBS Group has continued to exceed analyst expectations, with both improved credit costs (lower provision expense) and pre-provision earnings outperformance.
- Loan demand is slowly improving, but DBS Group needs short-term rates to move higher to really benefit, and recent crackdowns in China could threaten loan demand in HK/Greater China.
- Management is committed to pursuing growth in markets like India and Indonesia through a combined digital/physical banking presence, and Citi's sale of most of Asian operations could be an opportunity.
- Long-term core earnings growth of 6% can still drive a double-digit long-term annualized expected return.
For further details see:
The Recovery At DBS Group Is Underway, With Growth To Come