To The Moon

📢This morning, $DBS(D05.SI)$ announced their much-anticipated second quarter earnings which came in higher than analysts’ expectations

☀Powered by a surge in wealth-led fee income, DBS CEO Tan Su Shan expects total income this year to exceed 2025 levels and has lifted the outlook from her earlier projection of a match

The stock which pulled back 1.3% yesterday to close at $73.55, has erased all losses to trade 1.8% higher this morning (as of 920AM) to $74.86 – within whiskers of its all-time high of $75.00

✳✴Trending DBS call warrant $DBS MB eCW270226(IJMW.SI)$ is trading six times higher i.e +11.4% to $0.147 while trending put warrant $DBS MB ePW270226(V1RW.SI)$ is down 11.3% to $0.086

DBS call warrants continue to dominate the 8-week and 12-week top warrant gainers table with gains up to 231% given DBS’s 22.8% rally since the middle of May (https://warrants.com.sg/marketdata/topgainloss/gainer/12W), while DBS put warrants have lost as much as 87% over the past 8 weeks (https://warrants.com.sg/marketdata/topgainloss/loser/8W)

✍Macquarie Research’s (MQ) published a flash note this morning highlighting the key takeaways from the results

Read more for the full article and important disclaimers:

2Q26 PATMI of S$3.08b; 1H26 S$6.0b, 53% of full-year consensus

• The quarterly $0.81/share dividend is in line with guidance and expectations.

• Guidance on revenues raised: Total income to exceed 2025, with Net Interest Income to be at least flat year-on-year (YoY), non-interest income mid-teens, Cost/Income ratio low-40% range (unchanged) and specific credit costs 17-20bps range (unchanged).

• DBS' media and analyst briefings are at 10.30am and 11.30am.

​​​​​​​Takeaways from the results

What looks good. Non-interest Income (NII) and asset quality drove the beat. Wealth fees rose 42% to S$919m (in line with MQ’s expectation) and other non-wealth fees in lending and transaction services held up, led by strong loan momentum in the quarter.

Trading and treasury customer sales Non-NII (combined S$1.05 billion) were ahead of MQ’s estimate by around 10%. Specific credit charges were benign at 16bps, with a S$75 million general allowance write-back driving a lower credit charge of 10bps.

What could be better. The net interest margin (NIM) was down by 2bps to 1.87%, though MQ expects this was due to weaker SORA-3month and should rebound. The bank's guidance of steady NII for FY26 YoY assumes flat interest rates from here.

What looks interesting. Wealth asset under management crossed S$500 billion to S$516 billion, led by sustained net new money flows (S$11 billion) and strong market performance during the quarter.

​​​​​​​MQ has an Outperform rating and a 12-month $70.86 price target (based on a Price-to-Book stock methodology)

Whilst the shares have exceeded MQ’s price target, key drivers are all strong and they expect a positive market response

Note:

Macquarie Research is independent from the Warrants business, what the Macquarie Warrants desks quote from Macquarie Research may not reflect the complete analysis of Macquarie Research on the relevant company over time.

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Macquarie’s trending DBS call and put warrants provide leveraged exposure to DBS shares while requiring a lower capital outlay than DBS shares.

Trending call warrant IJMW is currently trading at $0.147 as DBS shares trade at $74.86 (as of 920) while trending put warrant V1RW is priced at $0.086. Both have moved six times more than DBS shares this morning.

​​​​​​​Use the Exposure Simulator to compare the warrants’ investment outlay compared to a similar exposure to DBS shares, and to see the warrants’ simulated returns and maximum holding periods based on your price targets on DBS.

Watch a 7-minute tutorial on how to use the tool

Trending DBS call IJMW: https://warrants.com.sg/tools/exposuresimulator/IJMW

Trending DBS put V1RW: https://warrants.com.sg/tools/exposuresimulator/V1RW