DBS Group (D05) Q2 2026 earnings summary

Executive summary

• First-half 2026 net profit rose 5% year-over-year to a record SGD 6.01 billion, with total income up 3% to SGD 12.0 billion, driven by record fee income, treasury customer sales, and robust wealth management performance; Q2 net profit rose 9% to SGD 3.08 billion, with total income surpassing SGD 6 billion for the first time.

• Wealth management was a key growth driver, with assets under management surpassing SGD 500 billion, up 17% year-on-year, and wealth management fee income up 30%.

• Markets trading income reached its highest level since 2021, and treasury customer sales set new records.

• Asset quality remained resilient, with a stable NPL ratio at 1.0% and allowance coverage at 130% (196% with collateral).

• Board declared a Q2 dividend of SGD 0.81 per share, including a capital return component.

Financial highlights

• Net interest income for H1 2026 fell 3% year-over-year to SGD 7.08 billion, with net interest margin declining 20 bps to 1.88%; Q2 net interest income declined 2% to SGD 3.58 billion.

• Net fee income rose 25% year-over-year to SGD 1.46 billion in Q2, driven by a 42% increase in wealth management fees; commercial book non-interest income grew 30%.

• Cost-to-income ratio improved to 39%; profit before allowances up 8% to SGD 3.75 billion.

• Total allowances fell 15% year-over-year and 41% quarter-on-quarter, with general allowance write-backs due to repayments.

• Deposits grew 4% in the first half to SGD 638 billion; gross loans up 5% to SGD 475 billion.

Outlook and guidance

• Full-year guidance raised; total income for 2024 expected to exceed 2023, with deposit growth targeted in high single digits and commercial book non-interest income growth raised to mid-teens, led by wealth management.

• Cost discipline to be maintained, aiming for cost-to-income ratio in the low 40% range; SP assumed within 17-20bp in 2H.

• No rate hikes expected for the remainder of the year; SORA projected to stay around 1.2%.