To The Moon

$DBS(D05.SI)$  

 DBS SECOND-QUARTER NET PROFIT UP 9% TO RECORD SGD 3.08 BILLION

AS QUARTERLY TOTAL INCOME CROSSES SGD 6 BILLION FOR FIRST TIME

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First-half total income and net profit reach new highs; ROE at 17.5%

Singapore, 6 Aug 2026 – DBS Group achieved record net profit of SGD 3.08

billion for second-quarter 2026, 9% higher than a year ago. Total income rose 6% to

a new high of SGD 6.09 billion despite a challenging rate environment, driven by

higher non-interest income, reflecting structural growth of the customer franchise.

The Board declared an ordinary dividend of SGD 66 cents per share and a

Capital Return dividend of SGD 15 cents per share. Total 81 cents per share. Same as last quarter.

Fee income remained near record levels and treasury customer sales reached a new

high as wealth management momentum was sustained, with assets under

management in the Wealth segment surpassing SGD 500 billion for the first timeMarkets trading income also strengthened. Group net interest income fell slightly due

to lower interest rates, with strong loan and deposit growth as well as proactive

hedging mitigating most of the impact. The cost-income ratio was 39%. Compared to

the previous quarter, total income rose 2% and net profit increased 5%.

For the first half, total income and net profit rose 3% and 5% respectively to

new highs of SGD 12.0 billion and SGD 6.01 billion respectively. Lower interest rates

were partially offset by hedging and balance sheet growth. Fee income and treasury

customer sales reached new highs, led by wealth management, while markets

trading income was also higher. The cost-income ratio was 39%. Return on equity

was 17.5%, while return on tangible equity was 19.2%.

Asset quality continued to be resilient with the non-performing loan ratio at

1.0% and specific allowances at 16 basis points of loans for the second quarter and

15 basis points of loans for the first half.

Second quarter 2026 vs. second quarter 2025

Group net interest income declined 2% to SGD 3.58 billion due to lower

interest rates, with strong loan and deposit growth as well as proactive hedging

mitigating most of the impact. Group net interest margin fell 18 basis points to 1.87%.

Loans rose 8% or SGD 35 billion in constant-currency terms to SGD 469

billion led by broad-based growth in lending to large corporates. Deposits increased

11% or SGD 61 billion in constant-currency terms to SGD 638 billion, with Casa

balances accounting for about three-quarters of the increase.

Net fee income rose 25% to SGD 1.46 billion, the second-highest quarterly

level on record. The increase was largely due to wealth management fees, whichgrew 42% to a record SGD 919 million from higher customer investment activity,

while Wealth segment assets under management rose 16% in constant-currency

terms to SGD 516 billion.

Commercial book other non-interest income increased 30% to a record SGD

681 million driven by treasury customer sales to both wealth management and

corporate customers.

Markets trading income rose 12% to SGD 469 million, benefiting from volatile

markets and lower funding costs.

Expenses increased 3% to SGD 2.35 billion, while the cost-income ratio

improved slightly to 39%.