DBS Group (D05) Q2 2025 (Q&A) 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 and profit before tax up 5% to SGD 3.39 billion, despite macroeconomic headwinds and the new 15% global minimum tax.

• Total income reached a record SGD 11.6 billion for the first half, up 5% year-over-year, with strong deposit and AUM growth across Singapore, Hong Kong, and China.

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

• Return on equity for the first half was 17.0%, and return on tangible equity was 18.8%.

• Board declared an ordinary dividend of SGD 60 cents and a capital return dividend of SGD 15 cents per share for Q2 2025.

Financial highlights

• Q2 2025 total income increased 5% year-over-year to SGD 5.73 billion; net interest income rose 2% to SGD 3.65 billion.

• Fee income grew 17% to $2.44 billion, led by a 30% increase in wealth management fees; non-interest income up 10% to SGD 2.08 billion.

• Markets trading income surged 80% year-over-year, reaching a four-year high at SGD 781 million for the first half.

• Cost-income ratio remained stable at 39–40% for the first half.

• Allowances for credit and other losses rose 62% to $458 million, with specific allowances at 12 basis points of loans.

Outlook and guidance

• 2025 group net interest income expected slightly above 2024 levels, 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 expected.

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

• Management expects continued slow and steady non-trade loan growth in areas like real estate, renewables, and infrastructure.

• Prudent general allowance reserves set aside in view of ongoing macroeconomic and geopolitical uncertainty.