They note that DBS expects to sustain this commitment over the next two to three years, while reduced rates leverage and ample general provision buffers are added bonuses. The analysts had upgraded DBS to “buy” from neutral on its dividend commitment after its FY2023 ended December results release.
RHB Bank Singapore has kept “neutral” on Singapore banks with DBS Bank as its top pick as the sector braces for tougher times ahead.
Amid a scenario of flattish earnings as the interest rate cycle turns, DBS’ commitment to increase distribution per share (DPS) by 24 cents per annum means its absolute DPS will continue to grow, the analysts highlight. As such, investors will have a good line of sight of its trajectory.
