Development Bank of Singapore Limited, DBS Bank (SGX: D05): Is It Worth Investing?
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DBS Bank (SGX: D05)
DBS recently reported a quarterly profit slightly below estimates on Monday (Nov 5), expressing worries due to trade war and property cooling measure that might lead to hold back on its loan book growth next year.
With the intensifying tariff dispute between China and the United States impacting Singapore’s export-reliant economy and implementation of the new measure, the outlook for the bank is clouded after reporting their profit last year.
DBS reported net profit came in at S$1.41 billion in the three months ended September as compared to S$822 million a year earlier.
DBS having 31 per cent share of the Singaporean housing loan market mention that the slowdown in new mortgages due to recent cooling measures is bigger than expected. Before the latest round of measures were introduced this year, DBS is expected to grow its mortgage book by around S$4 billion in 2018. However, the lender revised it to S$3.5 billion and now expects about S$2.5 billion after implementation of the cooling measures.
Let’s look at how DBS is scoring based on ShareInvestor’s grid:
Price movements of DBS Bank
DBS shares fell 2.6 per cent in afternoon trade after the result release, on track for their biggest single-day percentage fall in nearly three months.
In terms of price movement, although there is a huge decline in its year on year high but there is a strong support for its incremental year on year low.
Compound Annual Growth Rate of DBS Bank
Reviewing historical CAGR data, the company is also showing positive performances across the ups and downs of both business and market cycles.
Forward Estimates of DBS Bank
However, considering that CAGR does not reveal growth volatility, we can look at forward estimates to have a sensing of the pace of growth and momentum that can be carried into future years.
With strong estimates put forth by the analysts based on growth forecast, four analysts from research houses maintain DBS as BUY and one as Hold in November 2018.
With its less than estimated profit for Q3, is it still a good stock to include in your portfolio? Leaving you with ShareInvestor’s consensus estimates.
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