DBS Group (D05) Q4 2025 earnings summary

Executive summary

• Achieved record full-year pre-tax profit of SGD 13.1 billion and net profit of SGD 11.0 billion, with ROE at 16.2% and ROTE at 17.8%.

• Total income reached a record SGD 22.9 billion, up 3% year-over-year, despite rate and FX headwinds.

• Deposit inflow reached SGD 64 billion, the highest in history, driving record net interest income.

• Fee income and treasury customer sales reached new highs, led by wealth management.

• Board proposed a final ordinary dividend of 66 cents per share and a Capital Return dividend, bringing total annual dividend to SGD 3.06 per share, up 38% year-over-year.

Financial highlights

• Group net interest income hit a new high at SGD 14.5 billion, supported by record deposit growth and hedging.

• Fee income rose 18% to SGD 4.90 billion, led by wealth management; treasury customer sales grew 14%.

• Markets trading income surged 49% to SGD 1.37 billion, the highest since 2021.

• Cost-to-income ratio stable at 40%; expenses up 4% to SGD 9.25 billion, mainly from staff costs.

• Loans expanded SGD 24 billion (6%) and deposits grew SGD 64 billion (12%) in constant-currency terms, with CASA accounting for over two-thirds of deposit growth.

Outlook and guidance

• 2026 total income expected to be around 2025 levels, with net profit slightly below 2025.

• Anticipates continued strong deposit and net new money growth, mid-single digit loan growth, and high single-digit non-interest income growth for commercial book.

• Wealth management income projected to grow in the mid-teens; cost growth targeted at 4%.

• Board plans to continue Capital Return dividends of 15 cents per share per quarter for 2026 and 2027, barring unforeseen circumstances.

• Expects SP to remain between 17-20 bps, with potential for GP writebacks depending on macro conditions.