DBS Q4 profit falls 10% to S$2.26 billion, falling short of forecasts; pays 81 cents in dividends

[SINGAPORE] DBS’ net profit for its fourth quarter ended Dec 31, 2025, fell 10 per cent to S$2.26 billion, compared with S$2.52 billion from the year-ago period.

Excluding the S$100 million set aside for CSR commitments, net profit would have been S$2.36 billion.

In the quarter, stronger fee income and treasury customer sales were more than offset by rate headwinds, higher tax expenses and the absence of non-recurring gains recorded a year ago, the bank said on Monday (Feb 9).

The earnings missed the S$2.59 billion consensus forecast in a Bloomberg survey of six analysts.

The lender declared an ordinary dividend of S$0.66 per share and a capital return dividend of S$0.15 per share for the period.

This brings the quarter’s total dividend payout to S$0.81 per share, compared with the S$0.60 per share in the year-ago period.

DBS said it plans to continue paying its capital return dividend of 15 cents per share per quarter for financial years 2026 and 2027, barring unforeseen circumstances.

For the commercial book, total income was down 3 per cent to S$5.18 billion.

Net interest income for the segment fell 6 per cent to S$3.59 billion, due to lower net interest margin.

SEE ALSO

Commercial book net fee and commission income was up 14 per cent at S$1.1 billion, led by higher wealth management. Investment banking and loan-related fees were also higher.

Commercial book other non-interest income fell 11 per cent to S$486 million, as a 13 per cent increase in treasury customer sales was offset by lower other income, which had included non-recurring gains a year ago.

Meanwhile, its markets trading income fell 3 per cent to S$154 million.

Overall, group net interest margin (NIM) stood at 1.93 per cent for the quarter, from 2.15 per cent in the previous corresponding period.

The bank’s non-performing loans (NPL) ratio was 1 per cent, down from 1.1 per cent the same-period a year ago.

This was notwithstanding the “prudent downgrade of a previously watch-listed real estate exposure”, the bank noted. Specific allowances for Q4 rose to 36 basis points (bps) of loans, from 20 bps the same period a year earlier.

This brings full-year specific allowances to 19 basis points of loans, from 13 bps a year earlier, amid a partial offset by a release of general allowances.

DBS chief executive Tan Su Shan noted that the bank is comfortable with its exposures, with “sufficient” general provision reserves.

She said: “While rate pressures and geopolitical tensions are expected to persist, the quality of our franchise and strong balance sheet provide a solid foundation for the year ahead.”

For the full year, net profit fell 3 per cent to S$10.93 billion, reflecting higher tax expenses from the consequential implementation of the 15 per cent global minimum tax.

Excluding the S$100 million in CSR commitments, full-year net profit would have been S$11.03 billion, missing the S$11.27 billion consensus estimate in a Bloomberg survey of 15 analysts.

For 2026, Tan expects net profit to be slightly below 2025 levels, and total income around 2025 levels.

Group net interest income would likely be slightly below 2025 levels amid further rate cuts and a strong Singdollar, mitigated by deposit growth.

Meanwhile, the commercial book non-interest income growth will likely be in the high single digits, with mid-teens growth in wealth management.

Ahead of the results, DBS shares closed 0.6 per cent lower at S$59.30 on Friday.