Brief Overview:
DBS Group Holdings Limited (SGX: D05), or DBS, is one of Asia’s leading banks.
Headquartered in Singapore, the bank operates across 19 markets, with a strategic focus on Greater China, Southeast Asia, and South Asia.
In addition to holding among the highest credit ratings globally (‘AA-’ and ‘Aa1’), DBS has garnered numerous prestigious accolades. These include being named the ‘World’s Best Bank’ by Global Finance and Euromoney, ‘Global Bank of the Year’ by The Banker, ‘World’s Best Digital Bank’ by Euromoney, and ‘Most Innovative in Digital Banking’ by The Banker.
The bank has also been recognised as the ‘Safest Bank in Asia’ by Global Finance for 17 consecutive years, from 2009 to 2025.
Financial Figures (1Q FY2025 vs. 1Q FY2026):
| 1Q FY2025 | 1Q FY2026 | % Gain/Loss | |
| – Net Interest Income (S$’mil) | $3,681m | $3,494m | -5.1% |
| – Net Fee & Commission Income (S$’mil) | $1,275m | $1,482m | +16.2% |
| – Other Non-Interest Income (S$’mil) | $949m | $972m | +2.4% |
| Total Income (S$’mil) | $5,905m | $5,948m | +0.7% |
| Total Expenses (S$’mil) | $2,214m | $2,302m | +4.0% |
| Net Profit (S$’mil) | $2,897m | $2,930m | +1.1% |
DBS once again delivered strong quarterly results, setting new records with total income of S$5,948 million and profit before tax of S$3,512 million. Its wealth management income and treasury customer sales also reached record highs.
The expected 5.1% year-on-year drop in net interest income was primarily due to lower benchmark borrowing rates, along with a 23 basis point decrease in net interest margin. The strong Singapore dollar also weighed on net interest income performance. However, this decline was partially mitigated by hedging, balance sheet growth, and a 6% year-on-year increase in loans (in constant-currency terms), driven by corporate loans.
Net fee and commission income stood out as the strongest performer, rising 16.2% year on year, thanks to record wealth management fees, as well as gains in investment banking, transaction, and card fees.
Other non-interest income grew by 2.4% year on year, bolstered by record treasury customer sales and a 7% increase in markets trading income, aided by lower funding costs and improved trading conditions.
Key Financial Ratios (4Q FY2025 vs. 1Q FY2026)
| 4Q FY2025 | 1Q FY2026 | Difference (in Percentage Points – pp) | |
| Net Interest Margin (%) | 1.93% | 1.89% | -0.04pp |
| Return on Equity (%) | 13.5% | 17.0% | +3.5pp |
| Non-Performing Loans Ratio (%) | 1.0% | 1.0% | – |
What stood out to me the most among the ratios was the 3.5 percentage point increase in return on equity, reaching 17.0%.
At the same time, the non-performing loans ratio remained steady at 1.0%. On a quarter-on-quarter basis, I observed a 2.5% decrease in non-performing assets, dropping from S$4,843 million in 4Q FY2025 to S$4,720 million in 1Q FY2026.
Dividend Payout to Shareholders:
| 1Q FY2025 | 1Q FY2026 | % Gain/Loss | |
| Dividend Per Share (S$’cents) | 75.0 cents | 81.0 cents | +8.0% |
DBS’ dividend payout for the period under review consists of an ordinary dividend of 66.0 cents per share (up from 60.0 cents a year earlier), along with a capital return of 15.0 cents per share (unchanged year-on-year). This payout had already been guided when the bank announced its 4Q and FY2025 results in February.
If you are a shareholder of DBS, here are the key dates to note for its upcoming dividend payout:
Ex-Date: 11 May 2026
Record Date: 12 May 2026
Payout Date: 20 May 2026
CEO Ms Tan Su Shan’s Comments & Outlook (from the Bank’s Press Release):
“We had a strong start to the year, with record total income and a return on equity of 17% despite continued rate headwinds and heightened geopolitical uncertainty. The quarter was anchored by record wealth management performance, alongside robust deposit growth, record transaction services fees and stronger markets trading income. This reflects the resilience of our franchise and our ability to capture opportunities and support client needs amidst a challenging environment.
While the Iran war and its potential second-order effects have added uncertainty to the outlook, our stress tests indicate that our credit portfolio remains sound. Our solid balance sheet, with prudent general allowance buffers, strong capital position and robust liquidity, underpins our resilience.
We also continue to invest in structural growth initiatives, including transformational technology, to enhance how we serve our customers and capture long-term opportunities.”
Closing Thoughts:
DBS’ latest results fully met my expectations, delivering another record-breaking performance, especially in total income and profit before tax. Additionally, its wealth management and treasury customer sales reached new highs. What makes this achievement even more remarkable is that it was accomplished despite ongoing interest rate challenges and heightened geopolitical uncertainty.
At the same time, return on equity rose by 3.5 percentage points to 17.0% compared to the previous quarter, while non-performing ratios remained steady at 1.0%.
Results of the Other Singapore-Listed Banks:
United Overseas Bank Limited (SGX: U11): 1Q FY2026 Business Update Review
Related Documents:
1Q FY2026 Trading Update
1Q FY2026 CEO Presentation
1Q FY2026 CFO Presentation
Disclaimer: At the time of writing, I am a shareholder of DBS Group Holdings Limited.
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