DBS (SGX:D05)’s 4Q25 results broadly met estimates. Looking ahead, management continues to retain its guidance, with PATMI slightly below 2025 levels.
Amid muted earnings growth, investor focus will likely remain on dividend and capital returns. Its 2026F dividends looks “in-the-bag” while there could be room for management to boost dividends next year.
4Q25 results
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As expected, a final dividend of 66 cents and a capital return dividend of 15 cents were declared, bringing total 2025 DBS's dividends to S$3.06 (4Q24: 60 cents/FY24: S$2.22). This translates to a 79% payout (FY24: 55%).
Results highlights.
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Deposit growth stayed healthy (+2% q-o-q, +9% y-o-y) with CASA (+5% q-o-q, +14% y-o-y) as the main driver. DBS has placed the excess liquidity in high-quality liquid assets – positive for overall NII and ROE accretive but dilutive to NIM.
Non-performing loan was also 5% higher q-o-q (-4% y-o-y) due to the abovementioned prudent downgrade, leading to higher the specific provision charge. Non-performing asset (NPA) coverage was 130%, stable y-o-y but down from 139% in 3Q25.
Briefing highlights.
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Above is an excerpt from a report by RHB Securities Research. Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.
