3 Things Investors Should Know About DBS Group Holdings Ltd Now

DBS Group Holdings Ltd (SGX: D05) is one of the three major banks in Singapore with the other two being United Overseas Bank Ltd (SGX: U11) and Oversea-Chinese Banking Corp Limited (SGX: O39).

Here are three things about DBS that investors may want to know.

1. Latest earnings result

DBS had released its fiscal first-quarter earnings for 2016 last week. The bank reported revenue and profit of S$2.87 billion and S$1.2 billion, respectively, up by 5% and 6% from the same period a year ago.

DBS also ended the quarter with a strong balance sheet as its capital adequacy ratios (CARs) – a measure of a bank’s cushion to absorb losses – were in the mid-teens range and far above regulatory requirements. For more, you can check out here.

2. A history of consistently paying a dividend

Over its last 10 completed fiscal years (stretching from 2005 to 2015), DBS has paid an annual dividend in each year. Moreover, the bank has maintained its ordinary dividend between a range of S$0.56 and S$0.71 in that timeframe.

At DBS’s latest share price of $14.84, it has a dividend yield is 4.0% thanks to its dividend of S$0.60 per share in 2015.

3. A low valuation

The bank’s current share price also gives it a price-to-book (PB) ratio of 0.91, which is near the lower end of the valuation range seen over the past five years.

DBS's price-to-book (PB) ratio from 10 May 2011 to 10 May 2016
Source: S&P Global Market Intelligence

Moreover, DBS has the lowest PB ratio among the three local banks at the moment.

If you like what you've seen, you can get even more investing insights and analyses from The Motley Fool's weekly investing newsletter Take Stock Singapore. It's FREE, so do check it out here.

Also, like us on Facebook to follow our latest news and articles. The Motley Fool's purpose is to help the world invest, better.

The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.