We expect DBS to step up quarterly dividend by another 6 cents to 66 cents in 4Q25. DBS’s balance sheet could weather tough times due to an ample management overlay of S$2.6b for general provisions.
DBS's 2Q25 Results
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NIM compression moderated by balance sheet hedging. NIM eased 9bp y-o-y and 7bp q-o-q to 2.05% in 2Q25 due to lower SORA and HIBOR, partially mitigated by balance sheet hedging and deposit growth. Loans grew 4% y-o-y and 1% q-o-q on a constant-currency basis driven by non-trade corporate loans. Net interest income grew 1.5% y-o-y.
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Other non-interest income grew 9% y-o-y to S$917m in 2Q25. Treasury customer sales grew 16% y-o-y to S$653m. DBS also clocked gains from investment securities.
Maintains cost efficiency. Operating expenses increased 5% y-o-y to S$2,270m in 2Q25. Staff costs increased 7% y-o-y due to salary increment and bonus accrual, although head count was stable. Cost-to-income ratio was healthy at 39.6% in 2Q25 (1Q25: 37.5%).
Stable asset quality.
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