DBS Group Holdings reported record net profit of S$3.08 billion for the quarter ended 30 June, up 9% year-on-year, as buoyant wealth-related fees and stronger markets trading income offset pressure from lower interest rates.
Total income grew 6% YoY to an all-time high of S$6.09 billion, while return on equity stood at 17.5%. The board declared an ordinary dividend of S$0.66 per share and a special capital-return dividend of S$0.15 per share for the second quarter, taking first-half payouts to S$1.32 and S$0.30 respectively. The bank did not disclose earnings per share or payment dates for the dividends, nor did it provide a prior-year comparison for the distributions.
Group net interest income slipped 2% YoY to S$3.58 billion as net interest margin narrowed 18 basis points to 1.87%, reflecting a softer rate environment. Robust balance-sheet expansion—loans rose 8% to S$469 billion and deposits climbed 11% to S$638 billion—together with active hedging mitigated most of the rate pressure. Fee income advanced 25% to S$1.46 billion, underpinned by a 42% surge in wealth-management fees to a record S$919 million as assets under management exceeded S$500 billion. Treasury customer sales grew 30% to S$681 million, while markets trading income increased 12% to S$469 million on heightened market volatility. Operating expenses rose 3% to S$2.35 billion; nevertheless, the cost-income ratio improved slightly to 39%.
For the first half, Consumer Banking/Wealth Management income climbed 5% YoY to S$5.52 billion, supported by net new money inflows and stronger investment-product and bancassurance sales. Institutional Banking income edged 1% higher to S$4.54 billion as fee growth in transaction services and investment banking tempered lower net interest income. Markets Trading posted its best six-month performance in five years with income up 10% to S$858 million.
Pressure from lower benchmark rates remained the main headwind, cutting group net interest margin to 1.87% in the quarter. Nonetheless, the bank’s non-performing loan ratio was steady at 1.0%, with specific allowances at 16 basis points of loans, indicating resilient asset quality.
During the period DBS completed its first synthetic securitisation transaction, broadening its capital-management toolkit and bolstering lending capacity. Management also highlighted ongoing investment in wealth management capabilities, after segment AUM passed S$500 billion for the first time.
Chief executive Tan Su Shan noted that record income and profit reflected proactive balance-sheet management and sustained momentum in wealth and institutional banking, despite the challenging interest-rate backdrop. She added that ample liquidity—evidenced by a 142% liquidity coverage ratio—and a Common Equity Tier 1 ratio of 16.6% position the group to pursue growth opportunities while maintaining “sustainable shareholder returns.” Looking ahead, management signalled continued focus on capital optimisation and client-driven treasury activities to support earnings amid an evolving macroeconomic environment.
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