To The Moon

This morning, $DBS(D05.SI)$ S gapped down 2% to trade below the $70 level, after the bank announced before-market a third quarter (3Q26) profit that missed market estimates, weighed by softer wealth management fees and trading income

DBS has now pulled back 11% in the past month from its 6 October peak of $78.56, with the three technical indicators of RSI (11.3), Stochastic Oscillator (%K at 11.7)  and Bollinger band (below lower band) flashing oversold signals (Bloomberg)

According to Bloomberg, this is a rare confluence of oversold signals that historically marks a short-term selling exhaustion point

Importantly, while today’s earnings miss has disappointed, some analysts remain positive on DBS; outlook and share price

In a flash note published this morning on 5 November 2026, Macquarie Research (MQ) highlighted several key takeaways from DBS results and their target price on DBS shares

Read more for the full article and important disclaimers:

S$2.81b PATMI, -9% quarter-on-quarter (QoQ) / -5% year-on-year (YoY); 9M26 PATMI S$8.8b +2% YoY

• Profits came in 2% below MQ’s / 4% below consensus.

• The bank provided 2027 guidance of total income growth in mid-single digit range, mid-single digit expense growth (low 40% cost to income ratio) and 17-20bps specific allowances (constant on this year).

• The 81 cents total 3Q26 dividend (4.6% yield) is in line. DBS also announced succession for its longstanding chairman Peter Seah to Anthony Lim, an existing DBS Director.

Takeaways from the resultsWhat looks good. The Net Interest Margins (NIM) held up at 1.87% (flat QoQ). Wealth asset under management (AUM) was above expectations rising 5% QoQ (vs consensus 3%), driven by S$15 billion of net new money inflows (vs S$11b in 2Q26 and S$7 billion in 3Q25).

What could be better. Wealth activity was softer than expected with fees -6% QoQ and +9% YoY. Stronger loan related fees partially offset, with total fees -2% QoQ / +6% YoY. Markets trading non interest income declined 95% QoQ.

What looks interesting. The fully phased in CET1 ratio was 14.1% (-50bps QoQ after adjusting for a 10bps benefit from MAS' reduction of DBS' operational risk penalty this month). DBS' target CET1 range is 12.5-13.0%.

MQ has an Outperform rating and a 12-month $79.84 price target (based on a Price-to-Book stock methodology)

DBS is supported by the strongest funding position of the three local banks and upside to dividend yields in 2027-2028.

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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Trading DBS’ volatility with call and put warrants

DBS' earnings-driven sell-off has created significant price movements across both call and put warrants. As of 9:10am, selected DBS call warrants had fallen between 15% and 30%, while certain put warrants gained between 6% and 100%, highlighting the amplified impact that leverage can have on warrant prices.

For investors looking to express a short-term market view following today's volatility, structured warrants offer a capital-efficient alternative to trading DBS shares directly.

Positioning for a rebound

Investors who believe that DBS’ recent sell-off may have been excessive and expect its shares to recover could consider DBS call warrants.

With the stock now trading near technically oversold levels and some analysts maintaining a constructive stance on the longer-term outlook, call warrants provide leveraged exposure to a potential rebound.

A relatively small recovery in DBS shares can translate into a larger percentage gain in the warrant, although losses can likewise be magnified if the share price continues to weaken.

Positioning for further downside

Alternatively, investors who expect earnings-related concerns and negative sentiment to persist may consider DBS put warrants.

Put warrants are designed to increase in value when DBS shares decline, allowing investors to potentially benefit from further weakness without having to short-sell the stock. This can be useful for traders expecting continued downside momentum following today's earnings disappointment.

Not all DBS warrants will perform the same

While all DBS call warrants benefit from rising share prices and all DBS put warrants benefit from falling share prices, their performance can vary significantly.

Factors such as effective gearing, time to expiry, exercise price, and time decay mean that two warrants on the same underlying stock can deliver very different returns from an identical move in DBS shares.

This explains why, despite today's approximately 2% decline in DBS, the warrants in the table above recorded price changes ranging from -15% to +100%.

Use the Warrant Selector to compare amongst warrants

Before trading, investors may wish to use the Warrant Selector (https://warrants.com.sg/tools/selector) to compare DBS call and put warrants based on their entry and exit target levels on DBS.

The tool provides an estimate on the price performance and maximum holding period of the various DBS call/put warrants quoted on tight spreads. An investor can then choose amongst them based on his/her risk profile.

Remember: Warrants are leveraged instruments. While gains can be magnified if the market moves in your favour, losses can also occur more rapidly, and investors may lose their entire investment.

Trending DBS call and put warrants with the tightest spreads and highest liquidity

Call $DBS MB eCW270329(UCXW.SI)$

Put $DBS MB ePW270226(V1RW.SI)$