- DBS (SGX:D05)'s 4Q25 was behind expectations, largely from weaker trading. This is recovering so far in FY26E.
- It is well placed to benefit from continued liquidity flows to Singapore, which should lower downside risks to interest income, while driving upside to fees – especially in wealth management and capital markets. Scaling AI should start to deliver cost efficiencies going forward.
- - Read this at SGinvestors.io -
NII and NoII support to continue in FY26E
- 4Q25 NIMs fell -3bps q-o-q and momentum is falling (-9bps q-o-q in 3Q). Management claims Jan NIMs are -1bps lower, which signals stabilisation. China, Taiwan, India are showing improving growth. Coupled with strong SG fundamentals, we forecast loans to increase +5.5% y-o-y in FY26E vs +3.3% FY25. This should limit downside NIM risks.
- - Read this at SGinvestors.io -
- Trading disappointed in 4Q. However, this is stronger in Jan/Feb, according to Management. We conservatively forecast flat y-o-y trading in FY26E.
- While wealth management was slower q-o-q from seasonal factors, AUM was 3% higher. DBS’ strong scale together with lower rates should drive stronger wealth management growth in FY26E. Rising capital market activities stacks IB&A and treasury customer income on the upside.
- We raise FY26-27E non-interest income by 4% each.
NPLs benign. AI efficiencies starting to flow through
- Read more at SGinvestors.io.
Above is an excerpt from a report by Maybank Research.
Clients of Maybank Securities may be the first to access the full PDF report @ https://www.maybanktrade.com.sg/.
Thilan Wickramasinghe Maybank Research | https://www.maybanktrade.com.sg/ 2026-02-09
Read also Maybank's most recent report:
2026-05-01 DBS Group - Scale, Capital, Tech Aligned For Dividend Clarity.
Price targets by 4 other brokers at DBS Target Prices.
Listing of research reports at DBS Analyst Reports.
Relevant links:
DBS Share Price History,
DBS Announcements,
DBS Dividend Payout Dates & Corporate Actions,
DBS News
