- DBS’ 3Q25 results beat estimates on robust non-II performance.
- Looking ahead to 2026, DBS guided for PATMI to be slightly below 2025 levels. However, it reaffirmed its commitment to continue with its capital return dividend in 2026. This, coupled with the 24-cent step-up in ordinary dividend, would translate to 2026F dividend growth of 6% and FY26F yield of 6%.
3Q25 results beat expectations.
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- 9M25 ROE was 17% (FY24: 18%) while the fully phased-in CET-1 ratio under Basel III reforms was stable q-o-q at a solid 15.1%.
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Results highlights.
- NIM pressure (-9bps q-o-q, -15bps y-o-y) was the main dampener, leading to NII declining 2% q-o-q (-1% y-o-y). Otherwise, DBS posted a solid set of results.
- Non-II rose 13% q-o-q (+9% y-o-y) with wealth management fees up 23% q-o-q (+31% y-o-y) on improved investor sentiment, treasury customer sales reached a new high while markets trading income was higher amid a more conducive trading environment.
- Credit cost ticked lower to 11bps (2Q25 & 3Q24: 12bps) aided by general provision writebacks from repayments. Annualised loans and deposits growth stood at +2% and +8%, while CASA grew by a stronger annualised pace of 12%.
- DBS has placed the excess liquidity in high-quality liquid assets – positive for overall NII but dilutive to NIM.
- Lastly, NPA was stable q-o-q with the NPL ratio unchanged at 1%. LLC remains healthy at 139%.
Briefing highlights.
DBS introduced its 2026 outlook.
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