“[The bank’s] better leverage offsets [its] slight earnings downgrade on trading income and provisions, marginally offset by higher NIM and opex (operating expenses) discipline,” he writes.
Citi Research’s Tan Yong Hong has raised his target prices for all three local banks for several reasons.
The analyst increased his target price estimate for DBS Group Holdings to $63.60 from $61.10, citing a higher long-term return on equity (ROE) estimate of 17.4%. Tan also expects the bank to sustain its ordinary dividend growth through 2028, implying an ordinary payout ratio of 70%.
