DBS to maintain strong solvency, robust funding: Moody’s

It is anticipated to sustain high profitability with return on assets of around 1.3%.

The DBS Bank Ltd. (DBS) will maintain strong solvency and robust funding and liquidity over the next 12 to 18 months, according to Moody’s.

DBS is projected to uphold its high credit quality with a problem loans ratio expected to stay below 2% of gross loans.

The bank's core capital, as measured by tangible common equity to adjusted risk weighted assets, is expected to experience a modest decrease to around 14%, down from 15.2% at the end of 2023.

Still, the DBS' return on assets is expected to stay strong at about 1.3% in 2024-2025, slightly down from 1.4% in 2023, due to net interest margin compression driven by monetary policy easing.

“Funding and liquidity will remain very strong. DBS has a modest reliance on market borrowings, and its funding benefits from a very strong transaction banking franchise and sticky domestic deposit base,” Moody’s said.

A NOTE FROM SINGAPORE BUSINESS REVIEW

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia