DBS Group (D05) H1 2025 earnings summary

Executive summary

• Record first-half income and pre-tax profit achieved, with Q2 2025 net profit up 1% year-over-year to SGD 2.82 billion, supported by resilient asset quality and strong deposit and fee growth despite macroeconomic and tax headwinds.

• Total income rose 5% to a record SGD 11.6 billion in the first half, with return on equity at 17.0% and cost-income ratio stable at 39%.

• Franchise resilience demonstrated through nimble balance sheet management, robust deposit inflows, and market share gains in wealth management and treasury products.

• Asset quality remained robust, with NPL ratio improving to 1.0% and allowance coverage at 137%.

• Digital asset business expanded profitably, with initiatives in tokenized deposits and digital exchange offerings.

Financial highlights

• Q2 2025 total income increased 5% year-over-year to SGD 5.73 billion; net interest income up 2% to SGD 3.65 billion; net fee income reached a record SGD 2.44 billion, up 17% year-over-year, led by a 30% increase in wealth management fees.

• Markets trading income surged 80% to SGD 781 million, reaching a multi-year high.

• Expenses rose 5% to SGD 4.48 billion, mainly from higher staff costs.

• Customer loans grew 4% year-over-year to SGD 439 billion; deposits rose 7% to SGD 574 billion, with CASA ratio improving to 52%.

• 2Q25 dividend payout of 75¢ per share, split between ordinary and capital return dividends.

Outlook and guidance

• Group net interest income for 2025 expected slightly above 2024, with lower rates offset by hedging and deposit growth.

• Commercial book non-interest income projected to grow mid- to high-single digits; double-digit growth in wealth management.

• Cost-income ratio to remain in low-40% range; net profit to be below 2024 due to global minimum tax impact.

• Management highlights proactive balance sheet management and strong capital and liquidity as key strengths to navigate ongoing uncertainties.

• Dividend step-ups of SGD 0.06 are expected in both 2024 and 2025, with payout ratios sustainable unless unforeseen events occur.