Should I buy DBS stock in 2025?

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At HelloSafe, our expert has been monitoring the performance of DBS for more than three years. Each month, hundreds of thousands of users in Singapore rely on us to interpret market trends and highlight the best investment opportunities. Our analysis is intended for informational purposes only and does not constitute investment advice. In line with our ethical charter, we have never received, and will never receive, any payment from DBS.

What is DBS?

How much is DBS stock?

The price of DBS stock is rising this week. As of today, DBS shares are trading at SGD 43.82, up 1.69% over the last 24 hours and showing a 2.37% increase for the week.

The stock features a P/E ratio of 10.72, a healthy dividend yield of 5.15%, and a beta of 0.50, indicating lower volatility than the broader market. This combination of growth, steady income, and stability highlights DBS as an appealing choice in the Singapore market.

Our full analysis on DBS stock

We have conducted an exhaustive review of DBS Group Holdings’ latest financial results alongside its share price evolution over the past three years, drawing on a wide dataset of financial metrics, technical indicators, market signals, and peer comparisons, all synthesised using our proprietary analytics. The emerging signals point to a confluence of positive operational, market, and technical dynamics that underscore a strong case for renewed investor attention. So, why might DBS stock once again become a strategic entry point into Asian banking and financials as we look ahead to 2025?

Recent Performance and Market Context

DBS Group Holdings has delivered an enviable share price trajectory over the past twelve months, surging 23.89% to close at SGD 43.82 on May 9, 2025. This performance stands out sharply against the backdrop of regional banking sector volatility, positioning DBS firmly at the forefront of Singapore’s large-cap opportunities. The steady gain is reinforced by robust trading volume averaging 6.17 million shares daily, reflecting deep liquidity and sustained market confidence.

Recent events have buoyed sentiment. In Q1 2025, DBS posted record total income (SGD 5.91 billion, +6% YoY) and maintained a stable cost-to-income ratio of 37%, even as net interest margin declined modestly. The wealth management arm set a fresh record for fee income (+39% YoY), validating management’s strategic pivot toward annuity-like revenues less sensitive to short-term rate fluctuations. Additionally, in March, the smooth transition to incoming CEO Tan Su Shan signaled operational continuity and fresh impetus—her experience spanning consumer banking, wealth management, and institutional banking bodes well for multi-dimensional growth.

From a macro perspective, Singapore’s resilient economic fundamentals, prudent regulation, and the region’s rising affluence create a compelling backdrop for DBS’s multi-market strategy. Anticipated U.S. Fed rate cuts later in 2025 could prove especially stimulative for loan growth and fee-based services, underpinning both NII and non-interest income. With geopolitical risks appropriately acknowledged but counterbalanced by DBS’s diversification and capital strength, the context remains fundamentally favourable for further upside.

Technical Analysis

DBS’s technical structure illustrates a textbook case of persistent uptrend and accumulation. The stock currently trades above all its key moving averages—20-day (SGD 43.45), 50-day (SGD 43.11), 100-day (SGD 42.75), and 200-day (SGD 41.63)—a statistically significant bullish configuration rarely seen without follow-through momentum. The MACD remains positive at 0.23, flagging ongoing trend strength, while the RSI (14) sits at 65.92—well shy of extreme overbought yet confirming positive momentum.

A close inspection of support and resistance levels highlights strong demand zones around SGD 43.23 and SGD 42.93, while immediate resistance lies at SGD 43.99 and the 52-week high of SGD 46.97. Momentum metrics such as Stochastic (9,6) at 83.87 hint at near-term overbought conditions, but this phenomenon often precedes breakouts in structurally robust uptrends rather than immediate reversals.

Notably, recent pullbacks have been met with increased buy-side volumes, underlining investor appetite and further validating near-term support. The aggregate weight of technical evidence points toward a scenario where any corrective moves are more likely to offer renewed entry points rather than signaling a breakdown—a pattern consistent with sustained institutional accumulation phases.

Fundamental Analysis

The fundamental underpinnings of DBS Group remain exceptionally strong. The bank is the region’s undisputed market leader, with an enviable SGD 124.3 billion market cap and a business model spanning retail, corporate, and wealth management. Q1 2025 saw total income climb to a record SGD 5.91 billion, offsetting a modest 2% YoY decline in net profit due to conservative provisions and the slight compression in net interest margin (2.12%).

Profitability metrics remain highly attractive, even against global peers, with a return on equity (ROE) at 17.3%—decisively above sector averages and only marginally below the exceptional 19.4% level posted a year earlier. The efficiency ratio (cost-to-income at just 37%) and a notably low NPL ratio of 1.1% speak to outstanding risk controls and operational discipline.

Valuation multiples accentuate the investment case. At a P/E of 10.72, P/B of 1.79, and trailing dividend yield of 5.15% (forward yield at 6.96%), DBS offers investors a rare blend of value and yield in a market that has increasingly priced quality defensive financials at premium multiples. The robust dividend payout, further enhanced by a capital return dividend in Q1, evidences strong free cash flow and prudent capital stewardship.

Structurally, DBS continues to outpace its peers through digital leadership (recognized as the region’s leading digital bank), outsized market share in Singapore and Greater China, and growing scale in India post its Lakshmi Vilas Bank acquisition. The record SGD 724 million in Q1 wealth management fees and SGD 426 billion in client AUM signal a durable competitive advantage in accumulating sticky, high-margin assets.

Volume and Liquidity

DBS’s deep, stable liquidity profile is a differentiator in the Singapore market. Average daily volumes consistently exceed 6 million shares, indicating strong institutional engagement and minimal risk of forced volatility from illiquidity. This sustained high turnover reflects a market-wide consensus on DBS’s investment merits and confidence in the stock’s medium- to long-term trajectory.

Additionally, the substantial public float and high share turnover ensure that DBS remains highly responsive to positive catalysts and market demand, supporting dynamic valuation re-ratings when new information emerges. The robust liquidity gives institutional and retail investors alike the flexibility to position meaningfully—an important consideration ahead of anticipated upward re-pricing events.

Catalysts and Positive Outlook

DBS is positioned at the confluence of several potent near-term and secular growth catalysts:

• Management Transition: CEO Tan Su Shan’s leadership is expected to catalyze next-phase growth, especially across wealth and digital channels.
• Wealth Management Momentum: Record-high Q1 fees foreshadow continued expansion, driven by Asia’s burgeoning affluent class and investor demand for diversified products.
• Digital Transformation: Investments in digitalization deliver operational scale and exceptional customer experience, giving DBS a moat that’s difficult for competitors to breach.
• Strategic M&A: The acquisition of Citibank’s Taiwan operations and consolidation in India demonstrate ambitious, sustainable regional growth.
• Dividend Policy: An elevated and well-covered dividend payout is both a sign of health and a magnet for income seekers.
• Regulatory and Macro Tailwinds: High capital ratios (Common Equity Tier-1 at 17.4%, loan growth guidance of 5-6%) provide a buffer and optionality as monetary policy shifts in 2H 2025.

On the ESG front, DBS’s repeated recognition for sustainability initiatives will continue to attract institutional capital, with green finance and responsible lending platforms expanding in prominence across the region.

Potential headwinds—such as macroeconomic volatility or regulatory intervention—are actively monitored by DBS’s risk management apparatus. Nonetheless, the bank’s structural advantages and proven adaptability inspire confidence that it will emerge stronger from any near-term challenges.

Investment Strategies

Given the balance of technical, fundamental, and market factors, DBS seems to present compelling arguments for both tactical entry and long-term positioning:

• Short-term Positioning
• Continuous upward momentum supported by strong technicals and robust trading volume suggest favorable conditions for short-term traders, especially as the stock hovers near key support levels.
• Short-term dips, should they emerge from overbought signals, are likely to be met with renewed buying.
• Medium-term Opportunity
• The positive trend in fee income, cost containment, and ongoing digital transformation underpin mid-term earnings growth.
• Investors seeking to benefit from anticipated Fed rate cuts and rising loan growth in H2 2025 will find the current share price range attractive relative to projected earnings expansion.
• Long-term Outlook
• Leadership in Singapore and Greater China, best-in-class ROE, a high and sustainable dividend, and a clear ESG strategy build a persuasive case for core portfolio inclusion.
• Recent strategic acquisitions and digital innovation position DBS to capture secular shifts in Asia’s economy.
• The current valuation remains undemanding versus peer group averages, and the forward yield exceeds most developed market bank comparables.
• Technical Low or Ahead of Catalysts
• With the stock trading near intermediate support and several positive catalysts imminent, the timing appears attractive for initiating or adding to positions.

Is it the Right Time to Buy DBS?

Summing up the analytical signals, several key strengths argue in favour of renewed interest in DBS:

• A sector-leading combination of resilient profitability, disciplined risk management, and superior capital strength
• Ongoing record results in wealth management and digital banking
• Attractive and sustainable dividend yield well above the headline inflation rate
• Strong momentum and technical indicators painting a picture of robust institutional accumulation and uptrend resilience
• A dynamic leadership team and strategy geared toward asset growth, operational excellence, and innovation

Looking ahead, while risks—such as macro volatility, regulatory headwinds, or episodic profit compression—must be recognized, the risk/reward profile appears exceedingly attractive at current levels. The stock currently trades with upside to consensus target price, further bolstered by upcoming dividend payouts and strategic catalysts.

For investors focused on growth, yield, or sector leadership, the case for DBS appears particularly timely and compelling. With its rare blend of financial strength, innovative edge, and bullish technical structure, DBS seems well-positioned to enter a new phase of market outperformance. The opportunity at hand deserves the serious consideration of all who seek quality, resilience, and forward-looking growth in Asia’s leading financial sector stock.

As strategic positioning in the Singapore banking sector becomes ever more critical, DBS offers a unique and robust opportunity for long-term value creation, making the present moment remarkably favorable for those willing to bet on Asia’s premier banking franchise.

How to buy DBS stock in Singapore?

Buying DBS stock online is both simple and secure when using a regulated broker in Singapore. Investors can choose between two main methods: spot (cash) buying, where you directly own the shares, or trading Contracts for Difference (CFDs), which lets you speculate on price movements without owning the underlying asset. Spot buying is ideal for long-term investors seeking dividends, while CFDs suit those looking for shorter-term, leveraged opportunities. Below, we detail these methods and provide concrete examples. To help you make an informed decision, be sure to review our comprehensive broker comparison further down the page.

Cash buying

A cash purchase of DBS stock means you buy actual shares on the Singapore Exchange (SGX) in your own name, benefiting directly from price appreciation and dividend payouts. Most Singapore brokers charge a fixed commission per trade, typically ranging from SGD $2 to $10 per order.

Example

The current DBS share price is SGD $43.82. With SGD $1,000 (including an average brokerage fee of SGD $5), you can buy approximately 22 shares:
- (SGD $1,000 - $5 commission) ÷ $43.82 ≈ 22 shares.

Gain scenario:
If the share price rises by 10% (to $48.20), your 22 shares would be worth about SGD $1,060. Your gross gain is roughly +SGD $100, or +10% on your initial investment.

Trading via CFD

CFDs (Contracts for Difference) allow you to speculate on the price movement of DBS shares without owning them. CFDs enable leveraged trading, meaning with a modest deposit (margin), you can access larger market positions. Fees typically include a spread (the difference between buy and sell prices) and overnight financing costs if you keep positions open beyond a day.

Example

You open a CFD on DBS with SGD $1,000 and use 5x leverage, giving you exposure of SGD $5,000.

Gain scenario:
If DBS stock rises 8%, your position moves 8% × 5 = 40%. That’s a +SGD $400 gain on your SGD $1,000 outlay (excluding spreads and overnight fees).

Final advice

Before investing, it's crucial to compare brokers’ fees, features, and conditions carefully, as costs and available products can vary widely in Singapore. Your preferred method—spot buying or CFD trading—should align with your objectives, risk appetite, and investment horizon. Long-term investors may prefer the security and dividends of direct share ownership, while active traders might benefit from the flexibility and leverage of CFDs. For detailed comparisons and to find a broker that suits your needs, consult the broker comparison tool further down this page.

Our 7 tips for buying DBS stock

The latest news about DBS

DBS shares advanced 2.37% over the last week, outperforming the broader Singapore market. This recent rally is underpinned by robust trading activity—average daily volume stands at 6.17 million shares—and signals renewed investor confidence following strong quarterly results and positive analyst commentary. The stock is currently priced at SGD 43.82, having appreciated nearly 24% over the past year, with technical indicators pointing to sustained bullish momentum. The current price remains just below the near-term resistance of SGD 43.99, and there is a consensus upside potential to SGD 45.82, reflecting continued optimism among institutional investors in Singapore.

DBS posted record total income and profit before tax in Q1 2025 despite a modest YoY dip in net profit. Total income hit an all-time high of SGD 5.91 billion (up 6% YoY), and profit before tax reached SGD 3.44 billion, driven by increased fee income and solid loan and deposit growth. While net profit slightly decreased by 2% YoY, the quarter’s performance underscored the bank’s ability to navigate a challenging macroeconomic environment, maintaining strong asset quality (non-performing loan ratio held steady at 1.1%) and impressive capital strength. Return on equity remained robust at 17.3%, further supporting the stock’s premium valuation.

DBS’s wealth management division delivered extraordinary fee growth, a strategic bright spot for the bank. Fee income from wealth management surged 39% to a record SGD 724 million in Q1 2025, as strong market sentiment encouraged client activity and higher sales of investment and bancassurance products. With assets under management reaching SGD 426 billion, DBS solidifies its leadership position in this lucrative segment, which remains a key growth driver for the bank’s Singapore and regional operations. This success further buffers the group from cyclical fluctuations in lending margins and reinforces confidence in DBS’s revenue diversification.

Dividend returns remain highly attractive, boosted by a special capital return for shareholders in May. A first-quarter interim dividend of SGD 0.60 per share and a one-off capital return of SGD 0.15 per share (ex-date: May 16, payment: May 27) underscore the bank’s commitment to distributing excess capital in line with strong regulatory ratios. The forward dividend yield is now projected at an impressive 6.96%, making DBS a standout among large Singaporean corporates and affirming its appeal to income-oriented investors, especially given Singapore’s stable regulatory regime and supportive shareholder environment.

The recent CEO transition to Tan Su Shan was smooth, with signals of continued strategic focus and stability. Tan Su Shan, a veteran with 35 years of banking experience and deep ties to Singapore’s financial community, has taken the helm following Piyush Gupta’s retirement. Her leadership ensures ongoing emphasis on digital transformation, regional expansion, and risk management. This seamless leadership change, together with the bank’s strong balance sheet and prudent outlook amid global uncertainties, reassures both investors and stakeholders about the continuity of DBS’s strategic vision and operational excellence.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.