DBS (SGX:D05)’s 3Q25 earnings of S$3bn were slightly above our estimates, with 9M25 earnings at 77% of our FY25e forecast. DBS's dividends for 3Q25 raised 39% y-o-y to 75 cents (comprising 60 cents ordinary dividend and 15 cents capital return dividend).
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DBS will continue its capital return plan until FY27, paying out a total of S$5bn in dividends over three years (60 cents/share until FY27).
Management provided FY26e guidance for NII to be slightly below 2025 levels, non-interest income growth in the high single digits, credit costs to normalize at 17- 20bps, and PATMI below 2025 levels from the lower interest rate environment.
The Positives
Fee income surges.
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Loan-related fees grew 25% y-o-y due to increased deal activity, and transaction services were up 9% y-o-y, while investment banking fees spiked 65% y-o-y from increased debt and equity capital market activity.
As a result, net fee income rose 22% y-o-y and was the primary driver of earnings momentum.
Allowances decline from GP writeback.
Read more at SGinvestors.io.
Above is an excerpt from a report by Phillip Securities Research. Clients of Phillip Capital may be the first to access the full PDF report @ https://www.stocksbnb.com/.
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