[SINGAPORE] DBS Group Holdings became the first listed company in Singapore to top US$100 billion in market value, helped by a softer US currency that amplified gains on the local stock market.
South-east Asia’s top lender gained as much as 0.9 per cent in Singapore trading on Monday (Jun 9), and is trading at a market capitalisation of S$129.2 billion, extending its gains this year to more than 4 per cent.
The advance in DBS’s share price in US dollar terms was driven by the weaker greenback. So far this year, the Singapore dollar has appreciated about 6 per cent against the US dollar. In local currency terms, DBS has eased slightly from its record closing high of S$46.67 on Feb 26.
At the current market value, DBS ranks about 22nd among global banks, according to data compiled by Bloomberg. That is ahead of Tokyo-based Sumitomo Mitsui Financial Group, but half that of HSBC Holdings. Some of Asia’s biggest banks like Commonwealth Bank of Australia and India’s HDFC Bank have bigger market capitalisations.
The milestone comes after the Republic’s lenders pledged in recent months to hand over billions of US dollars in surplus capital to investors, encouraged by record-high earnings last year. DBS in particular, has benefited from increases in lending and wealth fees. Other than DBS, Singapore-based Sea that is listed in New York reached this valuation before.
Chief executive officer Tan Su Shan took charge of DBS in March from Piyush Gupta after his 15-year leadership. Tan said at her first earnings call last month that the bank seeks to benefit from supply-chain changes undertaken by its clients and increased demand for hedging foreign exchange exposure amid US President Donald Trump’s tariff moves.
“A lot of DBS’s out-performance has been due to the larger growth of its wealth management, which is really starting to challenge top players in Asia,” said Michael Makdad, a senior analyst at Morningstar, adding he sees the business continuing to grow. “Despite Trump’s tariffs, the environment remains relatively benign for Singapore banks which are increasing share dividends and buybacks more than we would’ve expected a year ago.”
DBS is the third-largest wealth manager in Asia, excluding mainland China, according to data compiled by industry publication Asian Private Banker. Net new money for its business catering to the rich came in at S$21 billion last year, demonstrating the strong inflows that have exceeded S$20 billion for the past three years through 2024. BLOOMBERG
