DBS (SGX:D05) generated a record 3Q25 pre-tax profit of S$3.48b, up 1% y-o-y. Total income up 3% y-o-y to new high of S$5.93b.
Strong 3Q25 beats expectations.
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For the 9-month period (9M25), total income rose 5% to a new high of S$17.6b.
Its balance sheet and asset quality remained strong. Non-performing loan (NPL) ratio was stable at 1.0%, while specific provisions were at 15bps for 3Q. Expenses were well-managed and stayed at a cost-to-income level of 40%.
Wealth management led growth.
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Total 3Q25 dividends of S$0.75; step-up dividend in 2026.
Management has declared a total dividend payout of S$0.75 for 3Q25, comprising an ordinary dividend of S$0.60 and a capital return dividend of S$0.15. The stock will trade ex-dividend on 13 Nov and payment will be on 24 Nov 2025.
As a recap, the group has previously committed to a total capital return of S$8b, of which S$3b has been allocated for share buybacks over 2-3 years. To-date, it has used up almost 12% for the share buyback programme. The balance of S$5b will be distributed via dividends.
Management has also provided that a S$0.06 step-up dividend is likely to be proposed in 4Q25 and will be implemented in 2026. This effectively means that DBS's 2026 dividends will comprise of
normal dividend (S$0.60 per quarter),
capital return dividend (S$0.15 per quarter which will go on till end 2027) and
a step-up dividend of S$0.06 per quarter.
This translates to a total dividend of S$0.81 per quarter in 2026.
Opportunity in the artificial intelligence (AI) space.
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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/.
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