2Q 2026 Financial Results Media Briefing

Welcome to DBS's second-quarter financial results briefing.

Good morning, everyone.

Highlights. We delivered a record performance in the second quarter. Net profit rose 9% from a year ago to reach a new high of $3.08 billion, while return on equity was 17.9% and return on tangible equity was 19.6%.

Total income grew 6% and crossed $6 billion for the first time. The increase was driven by higher non-interest income, underpinned by the structural growth of our customer franchise. In particular, robust wealth management momentum was maintained. Fee income was near record levels, and treasury customer sales reached a new high. We also mitigated significant interest rate headwinds with balance sheet growth and proactive hedging. Meanwhile, markets trading income strengthened as we benefited from lower funding costs and capitalized on volatile markets.

For the first half, net profit rose 5% to a record $6.01 billion. Total income increased 3% to a new high, as record fee income and treasury customer sales more than offset lower net interest income.

Asset quality was resilient. Total non-performing assets were little changed from the previous quarter as new non-performing asset formation was offset by repayments and write-offs. The non-performing loan ratio was stable at 1.0%, while specific allowances remained below the through-the-cycle average at 16 basis points of loans for the second quarter and 15 basis points for the first half. Allowance coverage was 130% and 196% after considering collateral.

Capital remained strong. The CET1 ratio was 16.6% on a transitional basis and 14.6% on a fully phased-in basis. The Board declared a total dividend of $0.81 per share for the second quarter, comprising a $0.66 ordinary dividend and a $0.15 capital return dividend.

Second quarter year-on-year performance. For the second quarter, net profit rose 9% from a year ago to a record $3.08 billion.

Group net interest income declined 2% to $3.58 billion. Strong loan and deposit growth, together with proactive hedging, mitigated the impact of lower interest rates. Fee income rose 25%, or $293 million, to $1.46 billion, led by wealth management. Commercial book other non-interest income grew 30% or $159 million to a new high of $681 million, driven by record Treasury customer sales. Markets trading income strengthened 12% or $51 million to $469 million, benefiting from volatile markets and lower funding costs.

Expenses increased 3% or $77 million to $2.35 billion from higher staff costs. The cost- income ratio was 39%. Profit before allowances rose 8% to a record $3.75 billion.

Total allowances fell 15% or $20 million to $113 million. Specific allowances were $188 million or 16 basis points of loans, remaining below the historical cycle average.

Second-quarter quarter-on-quarter performance. Compared to the previous quarter, net profit was up 5%.

Group net interest income rose 2% as balance sheet growth more than offset the two-basis point decline in net interest margin. Fee income eased 1% from the previous record quarter. Commercial book other non-interest income grew 13% or $79 million from higher treasury customer sales. Markets trading income increased 21% or $80 million, driven by equity derivatives.

Expenses rose 2% or $49 million, led by higher staff and revenue-related costs.

Total allowances declined 41% or $77 million as general allowances were written back. The general allowance write-back this quarter was mainly due to the repayment of nearly $1 billion in weaker credit exposures, as well as a shift away from higher-risk consumer segments.

Half-year performance. For the first half, net profit rose 5% to a new high of $6.01 billion.

Total income grew 3% to a record $12.0 billion. Group net interest income declined 3% to $7.08 billion, as hedging and balance sheet growth cushioned the impact of lower interest rates. Fee income rose 20% or $500 million to $2.94 billion, led by record wealth management fees. Transaction services fees also reached a new high. Commercial book other non-interest income grew 20% or $213 million to $1.28 billion, driven by higher treasury customer sales to both wealth management and corporate customers. Markets trading income increased 10% or $77 million to $858 million.

Expenses rose 4% or $165 million to $4.65 billion led by higher staff cost. Profit before allowances grew 3% to a record $7.39 billion.