DBS share buyback raises questions on capital management as counter hits all-time high
The buyback follows the move by Singapore’s largest lender to issue bonus shares in February to return capital to shareholders
DBS has been active on the capital-management front in recent years. It raised dividends in tandem with profit growth, and issued bonus shares after the release of record 2023 results.
Its latest move is a S$3 billion share-buyback programme on the back of strong third-quarter 2024 earnings, with a promise that the move will raise earnings per share (EPS) and return on equity (ROE).
Under the programme, the bank’s shares will be purchased in the open market and cancelled. The bank has not given further details on the buybacks, except that they will be carried out at the management’s discretion, subject to market conditions.
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