DBS' big boss asserts operating profit growth is realistic this year

But it'll be 'mid-single digit'.

According to CIMB, DBS CEO Piyush Gupta thinks that a ‘mid-single digit growth’ in operating profit is possible in 2013. DBS’s PPOP grew by only 2.8% in 2012.

The guide is achievable if non-interest income blossoms in 2013. "We think this is possible. Our own forecasts pencil in NII growth of 2% (2013 average NIM 1.64%, 8% loan growth) and non-interest income growth of 10%," CIMB said.

Here's more from CIMB:

Operating jaws should also improve slightly. One has to appreciate that DBS did not have strong equity capital markets activity in 2012, even though investment banking did credibly on strong debt capital markets activity.

Debt capital markets activity will likely still stay strong in 2013. If the current equity market conditions sustain, other capital markets-related fee streams like stockbroking, investment banking, wealth management can surprise on the upside.