The logo of DBS is pictured outside an office in Singapore. Reuters

DBS Group Holdings has become Southeast Asia's biggest company by market capitalization, dethroning previous holder Singapore Telecommunications.

The lender had a market capitalization of S$62.97 billion ($46.8 billion) as of Thursday's close, compared with Singtel's S$60.42 billion, Bloomberg data showed.

DBS's digital transformation has helped it strengthen customer base and achive financial goals in the technology-driven banking space.

Earlier this week, UOB Hay Kian and CIMB maintained "buy" calls on DBS citing the positive reception of its continued digital transformation.

UOB raised its target price from S$24.40 to S$26.10 - a 6.9 percent increase from its current valuation, while CIMB maintained its target price of S$25.

However, brokers at UOB have warned that DBS may continue to face competition from digital giants such as Google, Facebook and Alibaba, primarily due to their huge customer base, cost efficiency and ability to scale.

Shares in DBS have rallied 42 percent so far this year compared to a mere 1.4 percent gain in Singapore Telecommunications over the same period.