DBS (SGX:D05) reported a net profit of S$2,258m for 4Q25, down 10% y-o-y and 24% q-o-q. The results were below our net profit forecast of S$2,523m.
Moderation in NIM compression.
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Loans grew 6% y-o-y and 2% q-o-q on a constant-currency basis driven by corporate and wealth management loans. Net interest income declined 3.6% y-o-y.
Seasonal weakness for fees.
Fees and commissions grew 13.5% y-o-y to S$1,099m in 4Q25, but was pulled down 19% q-o-q due to seasonal weakness.
Wealth management fees surged 24% y-o-y due to broad-based growth from investment products and bancassurance but corrected 19% q-o-q. Loans-related fees were lumpy in nature and fell 25.6% q-o-q.
Lower non-interest income.
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Maintaining cost efficiency.
Operating expenses decreased 0.9% y-o-y in 4Q25. Staff expenses declined 4.3% y-o-y due to lower bonus accrual. DBS set aside S$100m for corporate social responsibility.
Cost-to-income ratio was healthy at 40.4% on a full-year basis in 2025 (2024: 39.9%).
Cushioned by huge management overlay for general provisions.
Read more at SGinvestors.io.
Above is an excerpt from a report by UOB Kay Hian Research. Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.
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