There's still a long way to go in terms of addressing the global pandemic and getting back to business as usual, but the global economy is picking up. Between government assistance programs in many countries and its own underwriting discipline, Singapore's DBS Group (OTCPK:DBSDF) (OTCPK:DBSDY) has come through this trial in better-than-expected shape, answering critics who tried to claim that earnings were being boosted by less disciplined underwriting standards that would be exposed during the next big economic downturn.
Since my last update on DBS Group, these shares have done okay - rising about 25% and doing a little better than other regional peers like Standard Chartered (OTCPK:SCBFY), United Overseas Bank (OTCPK:UOVEY), and OCBC (OTCPK:OVCHF), but not really standing out from global peers as much as you might hope relative to what I see as superior underlying quality.
I still see double-digit potential from DBS Group on what I believe are relatively conservative long-term growth assumptions that drive a core earnings growth rate around 5%. Meaningful upside could come from greater progress in emerging markets, particularly using digital banking strategies and select physical acquisitions to grow in attractive markets like India, Indonesia, and Vietnam over the coming decade, though increased competition remains a risk.
Read more here:
DBS Group Has Quieted Credit Concerns And Can Pivot To Growth Again
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