Analysts raise DBS targets to as high as S$81 after record Q2 net profit

[SINGAPORE] Analysts have raised their target prices for DBS , after the bank posted a record second-quarter net profit of S$3.08 billion last week, with at least two researchers forecasting the share price to touch the S$80 mark.

RHB Group Research increased its target price to S$81.20 from S$75.70, and retained its “buy” call on the stock after DBS lifted its operating income guidance for the full-year 2026.

Similarly, UOB Kay Hian research director Jonathan Koh raised his target price for DBS to S$80 from S$76.85. He maintained a “buy” rating, as the lender revised its non-interest income (NII) growth forecast upwards to the mid-teens from the high-single digits previously.

Koh noted that DBS’ Q2 performance comes on the back of a surge in wealth management fees – up 42 per cent on the year – which was in turn due to healthy growth in investment product sales and bancassurance.

He also highlighted that DBS’ wealth assets under management rose above the S$500 billion mark for the first time, hitting S$516 billion in the quarter.

Stronger wealth inflows

Other analysts also raised their target prices for DBS, but remained less bullish, keeping their estimates below S$80.

Carmen Lee, head of equity research at OCBC Group Research, lifted her target price to S$78 from S$60.93, but kept a “hold” rating on the stock.

She also raised her price-to-book valuation from 2.4 times to three times, amid a recent “sharp market rerating” of the counter.

Lee noted that DBS’ total income in 2026 is expected to exceed 2025 levels, with wealth management leading stronger growth in NII.

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“This suggests that recurring fee income is increasingly offsetting the impact of lower interest rates, supporting the investment case that DBS is evolving into a wealth-led financial institution,” she said.

She added that the bank is likely to hold on to its earnings premium over its peers, given a robust inflow of funds into Singapore, as well as DBS management’s focus on wealth income.

Jayden Vantarakis, head of Asean equity research at Macquarie, maintained a target price of S$70.86 with an “outperform” rating on the stock.

“While the shares have exceeded our price target, key drivers are all strong and we expect a positive market response,” he said. DBS’ share price stood at S$76.99 as at market close on Tuesday (Aug 11).

While the lender’s net interest margin (NIM) was down by two basis points at 1.87 per cent, Vantarakis expects this figure to rebound.

The NIM was mitigated by “proactive hedging”, noted UOB Kay Hian’s Koh.

He said: “(As) loan growth was robust at 8 per cent year on year and 3 per cent quarter on quarter (on a constant-currency basis)... NII only suffered a mild decline of 2 per cent to S$3.58 billion.”

Higher capital return dividends

Analysts from RHB Group Research also flagged that DBS has S$2.6 billion left of its S$3 billion share-buyback programme, which ends in 2027.

“Amid continued share price strength, it may convert this into capital return dividends – worth about S$0.92 per share,” they noted.

For Q2, DBS’ board declared a total dividend of S$0.81 per share, comprising an ordinary dividend of S$0.66 and a capital return dividend of S$0.15.

RHB Group Research also noted that the bank does not expect China’s recent financial activity regulations to have a significant impact on it, as it is a regulated entity.

“DBS is well-positioned to benefit from both onshore and offshore activities, and has been winning offshore market share,” the analysts said.