DBS, representing the Development Bank of Singapore, is one of the Big Three local banks, alongside UOB and OCBC. It is also the largest bank in Southeast Asia by assets, totalling S$739 billion as of the end of 2023.
How to invest in DBS shares in Singapore?
You can invest in DBS shares via a local brokerage firm, such as Moomoo or Interactive Brokers. The two brokers offer user-friendly access and competitive fees for investing in Singapore-listed stocks.
Moomoo offers new users zero commission for the first year. Thereafter, standard charges apply, including 0.03% transaction amount, or a minimum of S$0.99/order, whichever is greater. Additionally, platform fees from Moomoo, as well as trading and clearing fees from SGX, are also applicable.
Source: Moomoo Singapore as of 20 June
Interactive Brokers charges a commission of 0.08% of the trade value or a minimum of S$2.5 per order, whichever is greater. Exchange fees from the SGX also apply, though there are no platform fees.
Source: Interactive Brokers as of 20 June
Are DBS shares a good investment?
DBS stock price has risen only 0.78% as of 20 June this year, slightly underperforming the 2.5% gain in the Straits Times Index (STI). The stock tumbled approximately 22% in early April from an all-time high, following the US tariff shocks, before staging a swift rebound. Despite this, DBS has delivered a 24% return in the past year and 129% over five years.
A high dividend yield
DBS stocks remain attractive to long-term investors due to their stable and high dividend payout. The bank offers an annualized yield of 6.7%, based on the S$0.75 per share payout in the first quarter. The return is the highest among the “big three,” all of which offer yields above 6%. The bank also announced a S$3 billion share buyback programme in November last year and has completed 9% so far.
Near-term risks
However, risks remain in the near term for the banking sector. Global central banks are in an easing cycle, and lower interest rates tend to reduce banks’ net interest income for commercial banks. Meanwhile, ongoing uncertainties around Trump’s trade policies may weigh on loan growth. On the positive side, looser monetary policy supports trading and investment activities and boosts income in the wealth management division.
Stable growth
In the first quarter of 2025, the bank reported a 2% year-on-year decline in net profit due to higher tax from the implementation of a global minimum tax and increased provisions amid macro uncertainties. However, pre-tax profit rose by more than 1% year on year, indicating stable underlying growth. The bank also has a healthy Return on Equity (ROE) ratio of above 17%. DBS projects a loan growth of between 5% and 6% and forecasts a higher net interest income for 2025.
DBS Share price outlook
I would expect DBS’ shares to rise by about 5% in the second half of the year. However, in the short term, recent rising geopolitical tensions in the Middle East will likely continue weighing on broader market sentiment, pressuring its share price.
Source: TradingView as of 20 June
Manulife and DBS partnership
The Canadian insurer Manulife signed a 15-year bancassurance partnership with DBS in 2015, focusing on life insurance and wealth management solutions in key Asian markets. The agreement enhanced the bank’s product offerings and expanded its customer reach. The agreement appears to contribute to its long-term growth.
