Singapore, January 20, 2026, 14:50 SGT — Regular session
- Shares of DBS slipped about 0.8% after CGS International downgraded the stock to “hold”
- Broker flagged pressure on net interest margins after Singapore’s benchmark rate slipped
- Investors are positioning themselves ahead of DBS’ full-year results due on Feb. 9
Shares of DBS Group Holdings Ltd fell 0.8% to S$58.26 by 2:50 p.m. in Singapore, pulling back from a session high just shy of its 52-week peak following a broker downgrade. The stock traded between S$58.13 and S$58.63 and still hovers close to its 52-week high of S$59.25. 1
Timing is tough for investors in Singapore banks. Following a solid rally, expectations have shot up, and the next big focus is on earnings. For DBS, any sign of margin pressure might hit the stock harder than the actual profit numbers.
CGS International cut DBS from “add” to “hold,” keeping the target price unchanged at S$60.50, The Business Times reported. Analyst Tay Wee Kuang pointed to “muted” Q4 prospects and said upside is limited given current valuations. He forecasts DBS’ net interest margin — the spread between loan earnings and deposit costs — to fall roughly 5 basis points, or 0.05 percentage points, as the average SORA benchmark rate dropped. “DBS is now trading at an all-time high valuation, with limited upside,” Tay added, flagging risks like softer non-interest income and rising provisions. 2
The broader market remained flat as Singapore’s Straits Times Index lingered around 4,836. In banking, OCBC edged up roughly 0.5%, but UOB dipped about 0.3%. 3
Interest rates continue to be the main variable for DBS. When benchmark rates fall, loan yields tend to decline faster than funding costs, squeezing the spread that fuels net interest income — the heart of bank profits.
Investors chasing “income” stocks have made that sensitivity even sharper. A small change in margin guidance can swing dividend expectations and rattle bank shares, even when credit conditions stay steady.
The opposite can happen as well. Should rates drop faster than expected or credit costs rise sharply, the stock could struggle to justify a valuation built on stable earnings and reliable dividends.
DBS will release its full-year 2025 financial results before markets open on Monday, Feb. 9, per an SGX announcement. 4
Traders aren’t just looking at profit figures; DBS’s remarks on margins, funding costs, fee income, and capital returns will draw close attention. The next key date for DBS shares is the Feb. 9 update.
