DBS Group Holdings share price to hit $70?

After galloping to a record high of nearly $60 on 29 January 2026, it appears that the wheels came off the wagon for DBS Group Holdings share price as the counter subsequently fell to $56.90 in early February 2026. The punctured form of DBS Group Holdings share price came after the Singapore bank delivered a subpar financial result that saw net profit for 4QFY2025 decreasing 10% year-on-year to $2.36 billion. The weak result left investors wondered if the counter has peaked.

In this blog, I have always maintained that what goes up must come down. Any stocks that keep going up linearly without corrections are poised for bubble in the making. The recent crash of silver spot price is a classic example. In view of this, the recent correction of DBS Group Holdings share price should be considered healthy.

Looking back, my last article on DBS Group Holdings share price in 2024 was a tribute to former CEO Piyush Gupta. Back then, I had forecast that it would be difficult for the stock to reach $50 unless DBS listed its international transfers platform, Remit. Indeed, DBS Group Holdings share price did not reach $50 in 2024 nor did it list Remit. However, the counter exceeded my expectations when it managed to cross the magical $50 in 2025. What has exactly changed that moved the needle for DBS Group Holdings share price.

Previously, I have maintained that based on business fundamentals alone, it would be difficult for DBS Group Holdings share price to smash past $50. To unlock value, it was essential for DBS to list its digital assets. What I did not foresee was the MAS’s Equity Market Development Programme (EQDP) introduced in February 2025 as part of the Equities Market Review Group’s recommendations to revive SGX. In February 2026, MAS has expanded the EQDP from $5 billion to $6.5 billion. 

Although MAS did not disclose whether the funds released to the asset managers has been used to purchase DBS shares, the matter of fact is that DBS Group Holdings share price enjoyed a splendid rally, surging from $38.10 in April 2025 to the record high of nearly $60 in February 2026. The explosive rally of DBS Group Holdings share price was the longest in recent memory.

Of course, there are those who would argue that the rampant form of DBS Group Holdings share price in 2025 was largely attributed to the series of shares buybacks conducted by the bank. To this end, I do not disagree but it is also important to note that the last shares buybacks took place 11 July 2025. Since then, the counter kept rising till February 2026. On this note, shares buybacks should not be the only major catalyst driving DBS Group Holdings share price to record highs in 2025.

Given that MAS has only released about half the funds for EQDP, I believe there is still potential upside for DBS Group Holdings share price in 2026. Furthermore, DBS has only done about $370 million of shares buybacks out of the total $3 billion buyback programme (about 12%). So yes, I do think that the best is yet to be for DBS Group Holdings share price. In this article, I will share my insights on the outlook for DBS in 2026.

Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. Furthermore, I am not vested and have never invested in DBS Group Holdings share before. Whether DBS Group Holdings share price will surge or collapse has no impact on me. Thus, this article is not meant to induce readers to make any form of investment decisions.

DBS Group Holdings share price to scale Mount Everest!

Tan Su Shan became DBS’ first female CEO when she took over Piyush Gupta on 28 March 2025. It would be an understatement to claim that she has big shoes to fill if you look at the 15-year legacy left behind by Piyush Gupta, who has transformed DBS into a regional banking and digital powerhouse. When Gupta took over the reins in 2009, DBS Group Holdings share price was trading at the $11 to $12 bandwidth. By the end of 2017, DBS managed to knock Singtel off the perch to become the largest market capitalization stock in SGX.

Gupta’s final legacy saw DBS achieving record profits of $11.4 billion in 2024 and increased of DBS Group Holdings share price by 167% in 5 years. His tenure was marked by 5 major acquisitions – Lakshmi Vilas Bank (India, 2020), Citibank Taiwan (2023), ANZ’s Retail and Wealth Business (2016–2018), Societe Generale wealth management business (2014) and Shenzhen Rural Commercial Bank (2021–2025).

Based on the past acquisitions, it is clear that DBS is aggressively shifting from being a “lender” to a “wealth manager” to combat the boom-and-bust cycle caused by interest rates. For example, DBS’s 2014 acquisition of Societe Generale wealth management business in Singapore, Hong Kong and Dubai and the 2016 acquisition of ANZ’s wealth management and retail banking business in Singapore, Hong Kong, Mainland China, Taiwan and Indonesia have turbocharged DBS moat in this area.

DBS doubled down the effort to expand its wealth management segment through the acquisition of Citigroup Taiwan, which led to its investment assets to increase more than three-fold to $12 billion. These strategic acquisitions in wealth management businesses enabled DBS Group Holdings share price to remain robust for the past decade.

It is likely that Su Shan was chosen to be the successor of Piyush Gupta due to her background in wealth management, something that DBS is pivoting in. She was the Group Head of Consumer Banking & Wealth Management, having led this division for nearly a decade and was credited with growing it into a “crown jewel” that accounts for a significant portion of the bank’s earnings. Prior to that, she served as Morgan Stanley’s Head of Private Wealth Management for Southeast Asia.

In the first few years as CEO of DBS, I would think that she would avoid “rocking the boat” and is likely to continue building on Piyush Gupta’s legacy. There is a strong internal focus on “tech resilience” after a series of high-profile system disruptions from 2023 to 2025, leading MAS to mete out penalty in the form of making DBS set aside roughly S$1.6 billion in additional regulatory capital that could otherwise have been used for lending or dividends. MAS also imposed a six-month pause (1 November 2023 to 30 April 2024) on DBS Bank Ltd’s non-essential IT changes. During that period, DBS was also not allowed to acquire new business ventures during this period or reduce the size of its branch and ATM networks in Singapore.

Su Shan’s first M&A

Su Shan is not a technocrat like Piyush Gupta. So I do not expect her to create digital platforms like Remit, Partior, DBS PayLah and DBS Digital Exchange. Instead, I think she will play to her strength, continuing to build DBS’ wealth management business and scale the bank’s core business in lending through regional M&A.

In her first year as CEO, income from DBS wealth management grew by a remarkable 29% year-on-year to reach $2.81 billion. The strong performance of the wealth management unit helped to cushion the impact of the interest rate headwinds which caused net interest income in 4QFY2025 to decline 4% from a year ago to $3.59 billion. Interestingly, the Group’s net interest income of $14.5 billion was modestly higher than 2024’s as the impact of lower SORA rates was offset by balance sheet hedging and deposit growth. Apparently, surplus deposits were deployed into liquid assets, which was accretive to net interest income.

Full-year net profit decreased 3% year-on-year to $10.9 billion. Liquidity coverage ratio was 155% and net stable funding ratio was 117%, both above the regulatory requirement of 100%. However, new NPLs surged to $428 million in FY2025 from $278 million in FY2024.

All eyes will be on Su Shan’s first M&A as DBS is reportedly in talks to acquire a 29.06% stake in Alliance Bank Malaysia Bhd. The potential acquisition would mark a major breakthrough for DBS, which has sought a meaningful foothold in the Malaysian banking sector for nearly two decades. While Bank Negara Malaysia (BNM) reportedly did not approve an initial plan for DBS to take a controlling 49% stake, a 29% stake remains a significant entry point that could trigger further consolidation in the Malaysian market. A successful entry into Malaysia via Alliance Bank is viewed as a “re-rating” catalyst. It would finally put DBS on par with OCBC and UOB in the Malaysian market, potentially adding a new stream of high-growth fee income.

Conclusion

For DBS Group Holdings share price to hit $70, it will require a massive re-rating of its business fundamentals. Assuming a full-year net profit of $10.7 billion in FY2026, the EPS would be $3.76. To hit $70, the P/E would be 18.8, an unchartered water for DBS shares given that the historical 5-year average P/E is about 11.5x. So to hit $70 would be too stretch for this counter, at least in 2026.

Nonetheless, I would think that DBS Group Holdings share price could turn bullish and hit the range of $65 to $68. Two major catalysts would be the market reform measures implemented by MAS and DBS’ strategic capital deployment. As the bellwether of Singapore’s financial hub, DBS is the primary beneficiary of the government’s ramped-up $6.5 billion Equity Market Development Programme. The recent $1.5 billion top-up in the February 2026 Budget signals a long-term commitment to market liquidity that directly supports DBS’s valuation.

Additionally, DBS is currently sitting on a mountain of excess capital. If DBS cannot find the right price for M&A (like the Alliance Bank deal) or if it completes its $3 billion share buyback early the bank may issue a special dividend. A surprise special payout on top of the projected $3.24 annual dividend would likely trigger a massive “buy” signal, pushing the shares toward that $68 bull-case target.

For sure, Gupta has cemented himself as one of the banking legends of Singapore. He has set a bar so high that many investors wonder if his successor can fill his shoes. Perhaps, unlocking value from the listing of digital assets like Remit and rewarding shareholders with a special dividend could push the counter to another new high. Till then, enjoy the ride.

Congratulations on your first step to becoming part of SG Wealth Builder community! For a one-off payment of $100, you can get full access to all the articles and enjoy the benefits of SG Wealth Builder Membership.

The full benefits and privileges of SG Wealth Builder Membership:

1. Access to the latest premium articles of SG Wealth Builder
2. Email notifications of latest blog articles
3. Request for coverage on stocks, insurance and other personal financial topics

Note: After payment is made, you will be prompted with registration form to create your user-id and personal password.