DBS Group (D05) Q4 2025 earnings summary

Executive summary

• Achieved record full-year pre-tax profit of SGD 13.1 billion and net profit of SGD 11.03 billion, with ROE at 16.2% and ROTE at 17.8%.

• Total income reached a record SGD 22.9 billion, up 3% year-over-year, despite rate and FX headwinds and absence of prior year non-recurring gains.

• Deposit inflow reached SGD 64 billion, the highest in history, driving record net interest income.

• Fourth quarter net profit was SGD 2.36 billion, with pre-tax profit down 6% year-over-year due to lower non-recurring gains and higher allowances.

• Asset quality remained sound with NPL ratio stable at 1.0%.

Financial highlights

• Group net interest income hit a new high at SGD 14.5 billion, supported by record deposit growth and hedging.

• Fee income rose 18% to SGD 4.90 billion, led by wealth management; treasury customer sales and markets trading income reached new highs, with trading income up 49%.

• Cost-to-income ratio stable at 40%; expenses up 4% to SGD 9.25 billion, mainly from staff costs.

• Allowances increased 27% to SGD 791 million, with specific allowances at SGD 854 million, mainly from a real estate NPL.

• Dividend for the year rose 38% to SGD 3.06 per share; board proposes maintaining capital return dividend through 2027.

Outlook and guidance

• 2026 total income expected to be around 2025 levels, with net profit slightly below 2025.

• Anticipates continued strong deposit and net new money growth, mid-single digit loan growth, and high single-digit non-interest income growth for commercial book.

• Wealth management income projected to grow in the mid-teens; cost growth targeted at 4% and cost-income ratio to remain in low-40% range.

• Expects SP to remain between 17-20 bps, with potential for GP writebacks depending on macro conditions.