DBS Group (D05) investor relations material

Executive summary

• Net profit for Q1 2026 rose 1% year-over-year to SGD 2.93 billion, with total income reaching a record SGD 5.95 billion, driven by strong wealth management, treasury customer sales, and robust performance in transaction services.

• Return on equity was 17.0%, and return on tangible equity was 18.7%.

• Asset quality remained resilient with a stable NPL ratio of 1.0% and allowance coverage at 131%.

• Maintained prudent general allowances, with stress tests indicating sufficient buffers for worst-case macro scenarios, including geopolitical risks and commodity price shocks.

• Recognized as World's Best Private Bank and committed $10m to support consumers and SMEs.

Financial highlights

• Total income for Q1 2026 was SGD 5.95 billion, up 1% year-over-year and 12% quarter-over-quarter; net profit rose 24% sequentially.

• Net interest income declined 5% year-over-year to SGD 3.49 billion due to lower interest rates and a stronger SGD, but was stable sequentially.

• Wealth management fees exceeded SGD 900 million in Q1, with bancassurance contributing about 20% of total wealth fees.

• Non-interest income rose 41% quarter-over-quarter, with fee income up 35% and treasury customer sales at a record high.

• Dividend of 81¢ per share declared, including 66¢ ordinary and 15¢ capital return.

Outlook and guidance

• Full-year guidance unchanged; total income expected to be around 2025 levels.

• Deposit growth projected in high single digits; non-interest income growth also in high single digits.

• Loan growth expected to broadly track GDP, with focus on TMT, FIG, and renewables; downside risks remain if macro conditions worsen.

• Dividend increase of SGD 0.06 remains possible, but contingent on macro and geopolitical developments.

• Management highlighted continued investment in technology and structural growth initiatives.