DBS Group (D05) Q1 2025 (Q&A) earnings summary

Executive summary

• First quarter 2025 saw record total income of SGD 5.91 billion, up 6% year-over-year, and pre-tax profit of SGD 3.44 billion, driven by strong wealth management, fee, and treasury customer sales.

• Net profit was SGD 2.90 billion, down 2% year-over-year due to the 15% global minimum tax, but up 10% sequentially; return on equity was 17.3%.

• Asset quality remained resilient with a stable NPL ratio and prudent general provision build.

• Strategic investments in digital platforms, AI, and relationship management continue to drive structural growth.

• Broad-based business growth was led by wealth management and robust deposit inflows across currencies.

Financial highlights

• Net interest income rose 2% year-over-year to SGD 3.72 billion, offsetting a nine-basis-point decline in net interest margin to 2.68%.

• Fee income reached a record, up 22% year-over-year, with wealth management and loan-related fees at new highs.

• Wealth AUM reached SGD 432 billion, up 13% year-over-year and SGD 4–6 billion quarter-on-quarter, with 56% invested assets.

• Markets trading income was the highest in 12 quarters, up 48% year-over-year and more than doubled sequentially.

• Expenses increased 6% year-over-year, with cost-income ratio stable at 37%.

Outlook and guidance

• Business momentum remained resilient in April, but risks persist from heightened geopolitical and tariff uncertainty.

• Group net interest income expected to be slightly above 2024 levels, assuming three rate cuts; lower NIM to be offset by balance sheet growth.

• Non-interest income guidance revised from high single digit to mid-to-high single digit growth, reflecting market volatility.

• Loan growth expected to be strong in the first half, with potential moderation in the second half due to uncertainty.

• CASA ratio expected to continue trending upwards, supporting NII even if NIM slightly declines.