DBS Group Holdings share price riding the storm
Following the release of 3rd quarter business update, it seems to me that DBS Group Holdings share price is set for a much-anticipated rebound. The latest report showed that total allowances for 3rd quarter shrank to $554 million. This amount is significantly lower than the $1.94 billion recorded for the 1st half.
The drop in allowances could spark the revival for DBS Group Holdings share price as the bank navigates the fallout from COVID-19. In my opinion, this is the best window of opportunity to invest in this counter as Singapore’s GDP expanded by 7.9% on quarter in the third quarter of 2020. As DBS is the biggest lender in Singapore, DBS Group Holdings share price will be among the first stocks to benefit from the country’s recovery.
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The latest financial result is certainly impressive as third quarter’s net profit jumped 4% on quarter to $1.30 billion while fee income rises 17% to pre-COVID levels.
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