Upcoming DBS CEO Tan Su Shan is likely to maintain continuity at the Singapore lender given her extensive experience working with Piyush Gupta, according to Morningstar, who is stepping down in 2025.
In March 2025, Piyush Gupta will step down as CEO of DBS and be succeeded by Tan Su Shan. According to Morningstar in a note, it views Tan as a «continuity candidate».
«Given the extended transition period and Tan’s extensive experience working with Gupta for 14 years at DBS (and before DBS at Citi), we view Tan as a continuity candidate,» the note said.
«While we expect that Gupta is likely to give Tan time to shape her own plans for DBS' future capital allocation, we believe there is potential for an increase in shareholder distributions before Gupta’s departure if DBS continues to deliver strong results.»
Share Forecast
The note also forecasted that the fair value share price of DBS at S$44 ($33), up from its previous estimate of S$43 following the latest second quarter results. DBS' current share price is around S$33.5.
«[W]e have revised our forecast for net fee income growth this year to 15 percent, up from our previous estimate of 6 percent,» Morningstar said. «The strength in fee income growth from the first quarter, when net fees rose by 22 percent, not only continued but also accelerated in the second quarter. While fee income growth was particularly impressive, other aspects of DBS’ earnings were also robust.»
