DBS Group (D05) Q4 2025 (Q&A) earnings summary

Executive summary

• Real estate NPL exposure is less than SGD 0.5 billion, with China real estate exposure at SGD 10 billion, diversified across SOEs, strong foreign entities, and POEs with a 50% LTV.

• GP overlay remains strong at SGD 2.4 billion, providing a buffer against potential credit losses.

• Achieved record total income of $22.9b and pre-tax profit of $13.1b for FY25, despite rate headwinds and absence of prior year non-recurring gains.

• Net profit for FY25 was $11.03b, down 3% year-over-year, with ROE at 16.2% and ROTE at 17.8%.

• Asset quality remained sound, with NPL ratio stable at 1.0% and prudent reserves maintained.

Financial highlights

• Deposit growth reached 12% year-over-year in constant currency for 2025, with record $64b inflow.

• FY25 total income up 3% year-over-year to $22.9b; pre-tax profit up 1% to $13.1b.

• Fee income rose 18% to $4.9b, led by wealth management; treasury customer sales up 14%.

• Markets trading income surged 49% to highest since 2021, contributing SGD 0.6 billion to NII in 2025.

• Allowances for credit and other losses increased 27% to $791m for FY25.

Outlook and guidance

• FY26 total income expected to be around FY25 levels despite anticipated rate headwinds.

• Net interest income guidance is cautious due to lower expected deposit growth and the full-year effect of lower Singapore rates.

• Commercial book non-interest income growth targeted at high single digits; mid-teens growth in wealth management.

• Cost-income ratio to remain in low-40% range; net profit expected to be slightly below FY25.

• Committed to returning SGD 8 billion of excess capital by end-2027, with 21% already returned through buybacks and dividends.