- DBS delivered 2Q25 core-earnings ahead of MIBG and Street expectations. The Group generated above market trend growth across all pillars. We believe this is sustainable in the medium term given the self-reinforcing effects of scale and strong management execution.
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Strong execution across pillars.
- 2Q NIMs fell less than peers. DBS’s interest rate hedges are providing downside support. With the book duration of 2-3 years, this support can last longer, in our view. Management claims Fed rate cuts could potentially boost NII by pricing down non-S$ liabilities (which are largely in US$).
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- Separately, treasury income saw +42% y-o-y growth. Given market volatility showing no signs of abating, expect continued resilience.
- Asset quality remains well-supported and limited stress seen so far. DBS claims continuous stress tests and conservative risk exposures should provide safety.
AI, digital assets creating opportunities.
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