FY 2025 Full-Year Financial Results Media Briefing

Welcome to DBS's fourth-quarter and full-year 2025 financial results briefing.

Good morning.

Highlights. We delivered a strong set of results for full-year 2025. Pre-tax profit rose to a new high of $13.1 billion. Return on equity was 16.2% and return on tangible equity was 17.8%.

Total income grew 3% to a record $22.9 billion despite a challenging rate environment. Average Sora and Hibor both fell by almost two percentage points and there were adverse translation effects from a stronger Singapore dollar. Group net interest income was nonetheless modestly higher, driven by record deposit growth and proactive balance sheet management.

Fee income and treasury customer sales both grew double digits and reached new highs, led by wealth management. Markets trading income rose to the highest level since 2021. The cost-income ratio was unchanged at 40%. Net profit was 3% lower at $11.0 billion. This was due to higher tax expenses of $400 million from the consequential implementation of the 15% global minimum tax. For the fourth quarter, pre-tax profit was $2.80 billion, down 6% from a year ago. Total income declined 3% to $5.33 billion as higher fee income and treasury customer sales were offset by the impact of rate headwinds and the absence of non-recurring gains recorded a year ago.

Asset quality remained sound. A previously watchlisted real estate exposure was prudently recognised as an NPL during the quarter, contributing to higher specific allowances. The impact was partially offset by a release of general allowances set aside in prior periods. Allowance coverage stood at 130% and at 197% after considering collateral.

Capital levels stayed strong. The transitional CET-1 ratio was 17.0%, with the fully phased-in ratio at 15.0%.

The Board proposed a final total dividend of 81 cents per share for the fourth quarter, comprising a 66-cent ordinary dividend, up six cents from the previous payout, and a 15-cent Capital Return dividend. The Board remains committed to managing down the stock of excess capital and, barring unforeseen circumstances, plans to maintain the 15 cent per share Capital Return dividend each quarter through 2026 and 2027.

Full-year performance. For the full year, total income and pre-tax profit were records.

Group net interest income was modestly higher at $14.5 billion, a new high, as record deposit growth and proactive hedging offset the impact of rate headwinds. Within this, commercial book net interest income fell 4% or $549 million, as net interest margin narrowed due to the rates impact.

Fee income rose 18% or $730 million to a record $4.90 billion, led by wealth management.

Commercial book other non-interest income was $2.13 billion. Treasury customer sales to wealth and corporate clients grew 14% to a new high, but the increase was offset by lower other income which had non-recurring gains a year ago.

Markets trading income rose 49% or $452 million to $1.37 billion, the highest since 2021, benefiting from lower funding costs and a more conducive trading environment.

Expenses increased 4% or $354 million to $9.25 billion led by staff costs. The cost-income ratio was unchanged at 40%, and profit before allowances rose 2% or $249 million to a new high of $13.7 billion.

Total allowances were 27% or $169 million higher at $791 million. Specific allowances were $854 million or 19 basis points of loans, largely due to the real estate NPL in the fourth quarter. General allowances of $63 million were written back during the year, including the release of allowances previously set aside for the real estate exposure.

There was a one-time item relating to the bank’s CSR commitment announced in 2023 to allocate up to $1 billion over ten years to support vulnerable communities. With $100 million set aside from the year’s profits, the cumulative amount since 2023 stands at $300 million.