5 Reasons Why DBS Group Holdings Is a Good Share Option

DBS Bank is one of the largest multinational banking and financial services corporation headquartered in Marina Bay, Singapore. DBS Group is operating in 17 countries with more than 250 branches across 50 cities. The group is engaged in the provision of retail, small and medium-sized enterprise, corporate and investment banking services. 

5 Reasons Why DBS Group Holdings Is a Good Share Option

Being one of the largest major banks in Singapore, DBS Group Holdings Ltd, lately declared 2018 first-quarter earnings update. Below, are the Five reasons why 5 Reasons Why DBS Group Holdings Is a Good Share Option. 

• Growth of Revenue- 16% !! Yes, the revenue of the bank grew 16% year-on-year to a record high of S$3.4 billion in 2018’s first quarter led by broad-based growth in loans and non-interest income as well as a higher net interest margin.

• Improved Return on Equity (ROE)- The annualized return on equity (ROE) for the bank enhanced from 11.1% multi-year back to 13.1%, the highest level achieved in a decade.

• Maintaining of strong capital position and Balance sheet-  DBS maintained an extremely sound capital position and strong balance sheet as of 31 March 2018. Its Common Equity Tier 1 capital adequacy ratio (CAR), Tier 1 CAR, and Total CAR were at 14.0%, 15.0%, and 15.8% respectively. They were well above their respective regulatory requirements of 6.5%, 8%, and 10%.

• The impressive quarter of DBS’s Hong Kong business- DBS's Hong Kong business conveyed a surprising quarter. As far as steady monetary forms, the business' aggregate income and net benefit were up by 99% and 100% year-on-year, separately.

• The cost to Income ratio- DBS's cost-to-income proportion tumbled from 43% to 42% because of its income increment, and a slower increment in expenses. The bank's aggregate income had expanded by 16% as specified before, however, its costs ventured up by just 12%. As a rule, a lower cost-to-income proportion is favored.

Above points explains why DBS Group Holdings is a stock recommendation.