DBS Group (D05) Q3 2025 (Q&A) earnings summary

Executive summary

• Achieved record total income and pre-tax profit for Q3 and nine months of 2025, with ROE above 17% and strong momentum in wealth management and deposit growth.

• Non-trade loan growth expected in mid-single digits next year, driven by tech, data centers, TMT, real estate, and renewables, with strong momentum in Singapore, Australia, and London.

• Digital asset capabilities enhanced, including tokenised structured notes and money market funds.

• Wealth management AUM grew 7% quarter-on-quarter and 18% year-on-year, reaching SGD 474 million, with robust inflows across Asia and internationally.

Financial highlights

• Q3 2025 pre-tax profit was SGD 3.48 billion, up 1% YoY; total income reached SGD 5.93 billion, with net profit at SGD 2.95 billion, down 2% YoY due to global minimum tax.

• Net interest margin for Q3 held at 1.96%, with exit NIM in September at 1.95% and October at 1.92% due to SORA declines.

• Fee income and treasury customer sales at record highs; markets trading income up 33% YoY in Q3.

• Cost-income ratio at 40% for Q3; expenses up 6% YoY, mainly due to higher staff costs.

• Deposit growth was strong both quarter-on-quarter and year-on-year, with CASA ratio at 53%.

Outlook and guidance

• 2026 total income expected to be around 2025 levels despite rate headwinds; group net interest income projected slightly below 2025.

• NIM sensitivity: For every 1 basis point drop in rates, SGD 16 million impact on net floating assets and SGD 5 million on net floating liabilities for next year.

• NII expected to be slightly down next year, by about SGD 0.3–0.4 billion, due to lower rates and hedge roll-offs, but deposit deployment will cushion the impact.

• Cost-income ratio to remain in low-40% range; net profit to be slightly below 2025.

• Guidance for next year assumes SGD 78 billion of fixed-rate asset maturities, with two-thirds expected to be replaced at lower yields.