3Q 2025 Financial Results Media Briefing

Welcome to DBS's third-quarter 2025 financial results briefing.

Good morning.

Highlights. We delivered a strong set of results in the third quarter. Pre-tax profit rose 1% year-on- year to a record $3.48 billion, with ROE at 17.1% and ROTE at 18.9%.

Total income grew 3% to a new high of $5.93 billion. Group net interest income was little changed as strong deposit growth and proactive balance sheet hedging mitigated the impact of lower rates. Fee income and treasury customer sales reached new highs led by wealth management, while markets trading income increased on lower funding costs and a more conducive trading environment.

For the nine months, pre-tax profit rose 3% to a record $10.3 billion as total income increased 5% to $17.6 billion from growth across both the commercial book and markets trading. Net profit was 1% lower at $8.68 billion due to higher tax expenses.

Asset quality remained resilient. The NPL ratio was stable at 1.0%, while specific allowances were 15 basis points of loans for the quarter and 13 basis points for the nine months. Allowance coverage was 139%, and 229% after considering collateral.

Capital remained strong. The CET1 ratio was 16.9% on a transitional basis, and 15.1% on a fully phased-in basis.

The Board declared a total dividend of 75 cents per share for the third quarter, comprising a 60-cent ordinary dividend and a 15-cent Capital Return dividend.

Third quarter year-on-year performance. Compared to a year ago, third-quarter pre-tax profit was 1% or $42 million higher, while net profit declined 2% or $73 million to $2.95 billion due to higher tax expense from the global minimum tax.

Commercial book net interest income fell 6% or $238 million to $3.56 billion as the impact of lower rates was partially mitigated by balance sheet hedging and strong deposit growth. The Group’s net interest income of $3.58 billion was little changed. Fee income rose 22% or $248 million to a record $1.36 billion led by wealth management, while other non-interest income increased 12% or $61 million to $578 million as treasury customers sales reached a new high.

Markets trading income rose 33% or $108 million to $439 million due mainly to higher equity derivative activity.

Expenses increased 6% or $144 million to $2.39 billion led by higher staff costs as bonus accruals grew in tandem with the stronger performance. The cost-income ratio was 40%, and profit before allowances was 1% or $35 million higher at $3.54 billion.

Total allowances fell 5% or $6 million to $124 million. Specific allowances remained low at $169 million or 15 basis points of loans, while $45 million of general allowances were written back.

Third-quarter quarter-on-quarter performance. Compared to the previous quarter, net profit was 5% or $130 million higher.

Commercial book net interest income fell 2% or $67 million, as net interest margin declined nine basis points to 1.96% from lower Sora. Group net interest income was 2% or $70 million lower. Fee income rose 16% or $190 million led by wealth management. Other non-interest income grew 11% or $56 million, driven by higher treasury customer sales.

Markets trading income was 5% or $21 million higher.

Expenses increased 5% or $123 million from higher bonus accruals. The cost income ratio was stable.

Total allowances were 7% or $9 million lower.

Nine-month performance. For the nine months, total income and pre-tax profit reached new highs. Total income rose 5% or $777 million, and pre-tax profit increased 3% or $260 million, to $17.6 billion and $10.3 billion respectively. Net profit was 1% or $111 million lower at $8.68 billion due to higher tax expenses.