DBS Group (D05) Q1 2026 TU earnings summary

Executive summary

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

• Return on equity was 17%, and return on tangible equity was 18.7%.

• Net profit rose 24% sequentially, supported by fee income, treasury sales, and trading income.

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

• Wealth management and transaction services delivered record performance.

Financial highlights

• Total income reached a record SGD 5.95 billion, up 1% year-over-year and 12% sequentially.

• Net interest income declined 5% year-over-year to SGD 3.49 billion due to lower rates and FX, but fee income rose 16% to SGD 1.48 billion, led by wealth management.

• Non-interest income rose 41% sequentially, with fee income and treasury customer sales at record highs.

• Expenses rose 4% year-over-year, with cost-to-income ratio at 39%.

• CET1 ratio stood at 16.9% (transitional), 14.8% (fully phased-in); leverage ratio at 5.9%.

Outlook and guidance

• Guidance improved: net profit and total income now expected close to 2025 levels, with deposit growth projected in the high single-digit range and loan growth in the mid-single digit.

• Cost discipline to be maintained, targeting a cost-income ratio in the low-40% range.

• No US rate cuts expected due to geopolitical risks; SORA guidance at 1%.

• Continued focus on recurring fee income, technology investment, and a fortress balance sheet.

• Stress tests indicate the credit portfolio remains sound despite geopolitical uncertainties.