DBS Shares Hit Record on Back of Analyst Upgrades, Strong Earnings Report

Stock closes 2% higher at $50.74 amid flurry of optimism as analysts raise target price

- Angela Tan

DBS Bank shares continued their bull run on Aug 8 to close at a record high on the back of a flurry of analyst upgrades sparked by the bank's stellar latest earnings.

The stock, which crossed $50 for the first time ever on Aug 7, hit $50.98 in morning trade before closing at $50.74, up 2 per cent.

That puts the shares 15 per cent ahead since Jan 1, with a striking 50 per cent gain in the past 12 months.

The catalyst for the surge came on Aug 7 when DBS reported a 1 per cent rise in second-quarter net profit to $2.82 billion, beating the $2.77 billion average estimate compiled by LSEG. Total income rose 5 per cent to $5.73 billion.

DBS chief executive Tan Su Shan said the strong results were delivered amid a challenging environment, but she still sees opportunities ahead.

"Our proactive management of the balance sheet puts us in a good position to navigate the interest rate cycle, while strong capital and liquidity ensure we are well placed to support customers," Ms Tan noted.

The board declared an ordinary dividend of 60 cents a share for the quarter and a capital return dividend of 15 cents a share.

US investment bank Goldman Sachs noted that the results demonstrated "steady performance across operation lines despite lower rates and a highly volatile market environment in the second quarter, which showcases the bank's strong franchise and effective management".