DBS Group Holdings reported its Q4 2025 results on February 9, 2026, confirming a 10% year-on-year drop in net profit to S$2.36 billion (or S2.26 billion including one-off items). This missed analyst estimates of roughly S2.6 billion. While the "record high" interest rates of the past few years provided a massive boost to Singaporean banks, the latest data suggests that peak has passed. Here is a breakdown of why the profit dipped and what the bank expects for the rest of 2026: Why Profit Declined 10% Margin Compression: Net Interest Margin (NIM) fell by 22 basis points to 1.93%. This was driven by lower benchmark interest rates (SORA) and a stronger Singapore Dollar. Higher Credit Costs: Specific allowances for bad loans jumped significantly due to a "prudent downgrade" of a previousl