DBS shares up 3.4%, touch two-month high on estimate-beating Q1 earnings

[SINGAPORE] Shares of DBS touched a two-month peak on Thursday (Apr 30) after Singapore’s largest lender posted higher earnings for its first quarter ended Mar 31.

The counter rose to S$59 as at 9.05 am, its highest price in more than 11 weeks. It last traded higher at S$59.52 on Feb 6, 2026.

It later pared some gains to close up 3.4 per cent at S$58.50, having added S$1.94 over the day.

DBS on Thursday posted a Q1 net profit of S$2.93 billion, up 1 per cent from S$2.9 billion in the year-ago period on strong wealth management performance. Total income rose 1 per cent to a record S$5.95 billion.

The improved earnings surpassed the S$2.88 billion consensus forecast in a Bloomberg survey of six analysts.

The bank announced a total dividend of S$0.81 per share for Q1, including a S$0.66 ordinary dividend and a S$0.15 capital return dividend.

Net fee and commission income rose 16 per cent to a record S$1.48 billion, fuelled by improved wealth management fees, which hit a new high of S$907 million.

For the quarter, customer deposits rose 9 per cent on the year to S$629.9 billion, driven by the current accounts and savings accounts (Casa), outpacing the 4 per cent growth in customer loans to S$453.2 billion.

DBS chief executive Tan Su Shan said that deposit growth was “higher than expected”, and that the bank is lifting its 2026 deposit growth outlook as it guides for steady earnings amid an uncertain rate environment.

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DBS CEO Tan Su Shan strikes upbeat tone on deposits, wealth growth after strong Q1

Safe-haven flows, no Q1 Fed cut support positive earnings outlook for DBS, OCBC, UOB: analysts

Prior to DBS’ earnings release – which is the first of the three local banks’ – analysts’ forecasts indicated that Iran war-related safe-haven deposit inflows could boost Q1 net interest income (NII) of Singapore banks, The Business Times reported on Monday.

UOB and OCBC are set to post results on May 7 and May 8, respectively.

The absence of previously-expected rate cuts from the US Federal Reserve within Q1 was another factor that analysts predicted could shore up local lenders’ earnings.

Earlier on, at its Q4 earnings briefing, the bank had pencilled in two Fed rate cuts for 2026. However, the US central bank turned away from the anticipated Q1 rate cuts following fuel price hikes; more recently, it decided to keep interest rates unchanged after the latest Fed meeting on Wednesday.

Moreover, DBS now expects FY2026 net profit to stand at around 2025 levels, an improved forecast from last quarter, when it guided for lower full-year earnings.

Analysts mixed on DBS post-earnings release

On Thursday, analysts were mixed on DBS following the release of its results.

Citi Research on Thursday assigned DBS a target price of S$63.60, implying a 2.6 times price-to-book ratio, and gave it a “buy” rating, highlighting key positives such as the bank’s deposits growth and improved asset quality.

Another positive is that DBS’ NII guidance remains “largely intact despite the Singapore Overnight Rate Average (Sora) run-rate (being) below initial expectations”, said Citi Research analyst Tan .

CGS International (CGSI) on Thursday maintained its “hold” rating for DBS, with its target price unchanged at S$60.

The investment house kept its FY2026 guidance for DBS unchanged in light of the Middle East crisis, which could lead to higher credit costs for the rest of the financial year, said CGSI analyst Tay Wee Kuang.

“We remain cognisant of potential asset quality deterioration that could result in higher credit costs for the remainder of FY2026,” Tay said.

Another downside risk is the “further compression in net interest margin from lower Sora, that could mimic US interest rates should the Fed start to lower interest rates,” he added.

Meanwhile, upside risks include stronger-than-expected wealth assets-under-management inflows for the rest of the year, which could lift non-interest income and recovery in Sora, to support a “resilient NII”, said Tay.

In a flash note on Thursday, Macquarie Capital maintained its guidance for DBS and kept its “underperform” rating for the bank unchanged. It lowered its 12-month target price of S$48.56 from S$48.67 previously.

While DBS’ Q1 fee income was “strong”, driven by the wealth segment, Macquarie Capital analyst Jayden Vantarakis noted that growth was more modest for all other segments, including cards and loans.

He added that the 5 per cent year-on-year compression in NII was the “key reason (why) profits were essentially flat year on year”, while net interest margin dropped four basis points on the quarter to 1.89 per cent.

“The slides indicate the impact of rates has been largely mitigated, with DBS continuing to capture hedging opportunities,” Vantarakis said.