DBS Group (D05) Q1 2025 earnings summary

Executive summary

• Record profit before tax of SGD 3.44 billion and net profit of SGD 2.9 billion for Q1 2025, with ROE at 17.3% and total income up 6% year-on-year to SGD 5.91 billion, driven by broad-based business growth, especially in wealth management and trading.

• Net profit declined 2% year-on-year due to the 15% global minimum tax, but rose 10% sequentially from Q4 2024.

• Wealth management, loan-related fees, and treasury customer sales all reached record levels, with strong momentum continuing into April.

• Interim dividend of 60 cents per share and a capital return dividend of 15 cents per share declared, totaling an estimated payout of SGD 2.13 billion.

Financial highlights

• Commercial book total income grew 4% year-on-year to SGD 5.54 billion; net interest income rose 2% despite a 9 bps decline in NIM.

• Fee income surged 22% year-on-year to SGD 1.28 billion, led by wealth management (+35%) and loan-related fees (+23%).

• Markets trading income rose 48% year-on-year to SGD 363 million, the highest in 12 quarters and more than doubled sequentially.

• Expenses increased 6% year-on-year to SGD 2.21 billion, mainly from higher staff costs; cost-income ratio stable at 37%.

• Gross loans grew 2% quarter-on-quarter to SGD 442 billion, with non-trade corporate loans up 3%; deposits rose 3% quarter-on-quarter to SGD 576 billion, with CASA ratio at 53%.

Outlook and guidance

• Net interest income for 2025 expected to be slightly above 2024, with NIM guided at around 2.09% ± a few basis points, assuming three rate cuts.

• Loan growth forecast at 5%-6% for the year, subject to second-half macro conditions; non-interest income growth projected at mid- to high-single digits.

• Net profit for 2025 expected to be below 2024 due to the global minimum tax, but pre-tax profit could be around last year's level.

• Cost-income ratio targeted to remain in the low 40% range.

• Commitment to maintain strong dividend payout, with annualized yield at 7.0%.