While market conditions were challenging in 1H25 following the aftermath impact from the US Liberation Day and the sharp declines in SORA and HIBOR, DBS surprised with a good set of results. 2Q25 net earnings came in at S$2.82b, higher than market expectation of S$2.78b.
Higher-than-consensus 2Q results.
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Card fees also improved from S$297b in 1Q25 to S$302b in 2Q25. Allowances came down from S$325m in 1Q25 to S$133m in 2Q25.
The non-performing loans (NPL) ratio was fairly flat at 1.0%.
Return on equity (ROE) was 17.0% versus 17.4% in 1Q25.
Record 1H wealth income.
After a record 1Q25 wealth management income of S$1.49b, DBS's 2Q25 wealth management income dipped to S$1.35b – making 2Q25 the second-best quarter for wealth income.
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We believe there are more opportunities for cross-selling of wealth related products, especially with its enlarged AUM base.
Digital asset strategy.
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Above is an excerpt from a report by OCBC Investment Research. Clients of OCBC Securities may be the first to access the full PDF report @ https://www.iocbc.com/.
