DBS Group - OCBC Group Research 2026-04-30: Strong Set Of 1Q Results

• DBS (SGX:D05) posted a strong set of 1Q results which was ahead of market expectations. 1Q26 net profits came in at S$2930m, up 1% y-o-y or 30% q-o-q. The improvement was driven by higher fee and commission income (+16% y-o-y) and higher treasury customer sales and other income (+10% y-o-y).

Strong start to the year.

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• Assets under management (AUM) also improved strongly from S$432b in 1Q25 to S$492b in 1Q26. It also attracted more net new money (NNM), which was at a strong rate of S$10b in the quarter.
• Allowances came off from S$325m in 1Q25 to S$190m in 1Q26. Its balance sheet remained healthy. New non-performing asset (NPA) formation was low, and this was offset by repayments and write-offs. NPL stayed at 1.0%. Return on equity (ROE) was 17%.
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Geopolitical tensions and elevated risks.

• Market tone has turned decisively more cautious since the start of the US-Iran war in late-February 2026. Oil prices have also sky-rocketed to above US$100/ bbl. Against this backdrop, earnings outlook has been hit over the potential impact on demand and supply, especially from significantly reduced oil supply and second order impact.
• With DBS’s strong set of 1Q26 results, this has provided comfort that a well-managed and rigorously stress-tested financial institution is able to deliver better results despite massive challenges in 1Q26. Management shared that it has limited direct exposure to the Middle East.

Building its wealth franchise.

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Carmen Lee OCBC Group Research | https://www.iocbc.com/ 2026-04-30

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