DBS Group (D05) investor relations material

Executive summary

• Real estate NPL exposure is less than SGD 0.5 billion, with China real estate exposure at SGD 10 billion, diversified across SOEs, strong foreign entities, and POEs with conservative LTVs.

• GP overlay stands at SGD 2.4 billion, providing a strong buffer against potential credit losses.

• Achieved record total income of $22.9b and pre-tax profit of $13.1b for FY25, despite rate headwinds and absence of prior year non-recurring gains.

• Deposit inflow reached $64b, the highest in history, driving record net interest income and strong balance sheet growth.

• Wealth management, fee income, and treasury customer sales all reached new highs, with AUM up 19% to $488b.

Financial highlights

• Net interest income (NII) sensitivity: SGD 14 million per basis point for SGD assets, minus $4 million per basis point for USD liabilities.

• NIM expected to remain stable or slightly increase, but full-year NII guidance is down due to lower deposit growth and reduced market trading benefits.

• Markets trading income surged 49% to highest since 2021, but this may not repeat in 2026.

• FY25 total income up 3% year-over-year to $22.9b; pre-tax profit up 1% to $13.1b.

• Allowances for credit and other losses increased 27% to $791m for FY25.

Outlook and guidance

• FY26 total income expected to be around FY25 levels despite anticipated rate headwinds.

• Net interest income projected to be slightly below FY25, assuming Sora at 1.25%, two Fed rate cuts, and stronger SGD.

• Deposit growth will be seasonal and likely lower than last year, but still positive.

• Share buyback program remains opportunistic, with 12% of SGD 3 billion utilized; committed to returning SGD 8 billion of excess capital by 2027.

• Cost-income ratio to remain in low-40% range; net profit expected to be slightly below FY25.