DBS (SGX:D05) reported net profit of S$2,930m for 1Q26, up 1% y-o-y and 24% q-o-q. The results exceeded our forecast of S$2,833m.
NIM compressed 23bp y-o-y and 4bp q-o-q to 1.89% in 1Q26 due to a steep erosion of 3-month compounded SORA of 147bp y-o-y and 12bp q-o-q, which was partially mitigated by balance sheet hedges and the deployment of excess deposits in high-quality liquid assets.
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Record wealth fees.
Fees & commissions grew 16.2% y-o-y to S$1,482m in 1Q26. Wealth management fees surged 25.3% y-o-y due to broad-based growth from investment products and bancassurance.
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Record treasury income.
Treasury customer sales expanded 4.8% y-o-y to S$592m in 1Q26.
Markets trading income was S$389m.
Enhancing cost efficiency.
Operating expenses increased 4% y-o-y in 1Q26 (staff costs: +4.8% y-o-y, other expenses: +2.4% y-o-y).
Cost-to-income ratio remains lean at 38.7% (1Q25: 37.5%).
Pristine asset quality.
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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/.
