DBS Reports Record Shares of $52.87 Lifts STI to New Heights

DBS share prices crossed $50 for the first time after it released its second-quarter results for 2025, and all analysts are upgrading their target price for the stock.

DBS shares have hit a historic peak in September, lifting the Straits Times Index (STI) to a new high above 4340 points.

Singapore’s largest bank reached a high of $52.87 during the trading day, eventually closing at $52.73, which is a 3.64% increase from its previous closing price of $50.88. The STI increased by 1.1%, closing at 4,346.46 points.

Mr. Thilan Wickramasinghe, head of equity research at Maybank, suggested that the reason for DBS’s increased performance and that of the STI might be that the bank was perceived as a safe haven for investment in Singapore.  

As there have been various geopolitical tensions in the Middle East in recent days, investors were focused on secure and quality assets.

He also noted that the DBS dividend seems visibly high until 2027, and with the expectation of rate cuts from the US Federal Reserve this September, banks seem to be an appealing option for investors.

JP Morgan upgraded the bank to an overweight rating, with a target price of $56, as it was yielding a sector-leading dividend.

Previously, in May, the bank was downgraded to neutral with a target price of $47 due to limited potential for share price increase, and the net interest margin also affected the bank at the time.

DBS share prices crossed $50 for the first time after it released its second-quarter results for 2025, and all analysts are upgrading their target price for the stock. Since August, at least four analysts have predicted the price of DBS, with Goldman Sachs valuing the stock at $57.20, the highest estimate among analysts.

The results announced an interim dividend of 60 cents and a capital return dividend of 15 cents per share, amounting to $2.13 billion. DBS reported 1% increase in its net earnings, reaching $2.82 billion, exceeding analysts’ expectations, thanks to strong wealth fees and trading revenue.

DBS shares have risen steadily since the company announced its financial results in August for the second quarter, with a 1% increase in net profit to $2.82 billion, up from $ 2.80 billion in the same quarter last year.

According to DBS chief executive Tan Su Shan, the bank was able to offset the challenges posed by lower interest rates and tariff pressures through strong balance sheet management and an increase in deposits.

Singapore’s two other banks closed flat for the day, with Oversea-Chinese Banking Corporation Limited (OCBC) closing at $16.85 and United Overseas Bank Limited (UOB) at $35.48. Together, the three banks represent over half of the Straits Times Index (STI), which crossed the 4,000-point threshold in July.

The index has also risen due to renewed investor confidence, with US tariff rates for Singapore being among the lowest in the world at 10%.  

The market is expecting further announcements from the Monetary Authority of Singapore (MAS) on its Equity Market Development Programme, which aims to improve market liquidity and support Singapore’s fund management ecosystem.

In July, the Monetary Authority of Singapore (MAS) disclosed that $1.1 billion of the $5 billion funds allocated under the program would be distributed to three fund managers: Avanda Investment Management, Fullerton Fund Management, and JPMorgan Asset Management, with additional fund managers expected to be announced by the fourth quarter of 2025.

During the press conference, the Deputy Chairman of MAS, Chee Hong Tat, stated that the focus was not solely on injecting capital into the Singapore market, but rather on developing the fund management industry.

In summary, DBS’s historic share price surge has not only propelled the Straits Times Index but also been driven by strong earnings, attractive dividends, and positive analyst outlooks. DBS’s momentum shows optimism for the banking industry and Singapore’s market resilience, even amid global uncertainties.