DBS Group Holdings Limited (SGX: D05), or DBS, is another Singapore-headquartered bank that needs no further introduction – many of us should have a savings account with the bank.
In case you’re not aware, DBS is not only the largest bank in Singapore, but also the largest in Southeast Asia by total assets. The bank’s business focus is in the following 3 regions: Greater China, Southeast Asia, and South Asia.
Together with UOB (you can read a review of its results which I’ve posted earlier today here), DBS also released its financial results for the 2nd quarter, as well as for the 1st half of FY2025 ended 30 June this morning (07 August) – the bank’s results for the latest quarter was also the first with Ms Tan Su Shan as the CEO (she has taken over the position from Mr Piyush Gupta since 28 March 2025), and personally, I’m curious about what her first ‘report card’ will be like.
In this post, you’ll find my review of DBS’ latest financial results and ratios, along with its latest dividend payout to shareholders:
Financial Results (2Q FY2024 vs. 2Q FY2025, and 1H FY2024 vs. 1H FY2025)
2Q FY2024 vs. 2Q FY2025:
| 2Q FY2024 | 2Q FY2025 | % Variance | |
| – Net Interest Income (S$’mil) | $3,594m | $3,648m | +1.5% |
| – Net Fee & Commission Income (S$’mil) | $1,048m | $1,167m | +11.4% |
| – Other Non-Interest Income (S$’mil) | $840m | $917m | +9.2% |
| Total Income (S$’mil) | $5,482m | $5,732m | +4.6% |
| Total Expenses (S$’mil) | $2,172m | $2,270m | +4.5% |
| Net Profit Attributable to Shareholders (S$’mil) | $2,789m | $2,824m | +1.3% |
Looking at the set of numbers reported by DBS for the 2nd quarter, I’m sure you’ll agree with me its a solid set of ‘report card’ – with improvements seen in the 3 business segments, total income, as well as in its net profit attributable to shareholders.
For its net interest income, even though net interest margin fell by 0.09 percentage points (pp) (from 2.14% in 2Q FY2024 to 2.05% in 2Q FY2025), but a broad-based growth more than offset this – hence the 1.5% year-on-year improvement to S$3.65 billion.
Net fee and commission income rose by 11.4% to S$1.17 billion, largely due to a 25% rise in wealth management fees (to S$649 million), with improvements also recorded in its investment banking fees. In fact, at this level, it was the bank’s second highest on record.
Other non-interest income also increased by 9.2% year on year to S$917 million, which can be attributed to an increase in treasury customer sales (by 9% to S$522 million – with the figure the bank’s second highest on record) & other income, and also in its market trading income.
This led to DBS’ total income to record a 4.6% year-on-year improvement to S$5.73 billion.
Finally, total expenses rose by 4.5% year on year to S$2.27 billion, led by higher staff costs.
1H FY2024 vs. 1H FY2025:
| 1H FY2024 | 1H FY2025 | % Variance | |
| – Net Interest Income (S$’mil) | $7,099m | $7,329m | +3.2% |
| – Net Fee & Commission Income (S$’mil) | $2,091m | $2,442m | +16.8% |
| – Other Non-Interest Income (S$’mil) | $1,849m | $1,866m | +0.9% |
| Total Income (S$’mil) | $11,039m | $11,637m | +5.4% |
| Total Expenses (S$’mil) | $4,251m | $4,484m | +5.5% |
| Net Profit Attributable to Shareholders (S$’mil) | $5,740m | $5,721m | -0.3% |
The only slight negative in DBS’ financial figures for the 1st half of FY2025 compared to a year ago was the slight 0.3% year-on-year dip in its net profit attributable to shareholders, which can be attributed to its 1.8% year-on-year decline in the 1st quarter (mainly as a result of a higher tax expense from the implementation of the 15% global minimum tax), partially offset by a 1.3% year-on-year growth in the 2nd quarter.
Apart from that, in my opinion, DBS’ results for the 1st half of the year is equally impressive, with improvements seen in all 3 of its business segments, as well as in its total income.
Net interest income improved by 3.2% year on year to S$7.33 billion despite a 0.06pp dip in its net interest margin (from 2.14% in 1H FY2024 to 2.08% in 1H FY2025) due to loan growth.
Net fee & commission income jumped by 16.8% year on year to S$2.44 billion, led by a 30% increase in wealth management fees. Loan-related fees also rose by 11% to a record S$412 million.
Finally, DBS’ total income, at S$11.6 billion for 1H FY2025, was a new high for the bank.
Key Financial Ratios (1Q FY2025 vs. 2Q FY2025)
Among the range of financial ratios reported by the bank, my focus has always been on just 3 – net interest margin (the difference between the interest rate it charges to lend money to its customers and the interest rate it pays for deposits from its customers), return on equity (a measure how much profit the bank is able to generate for every dollar of shareholders’ money it uses), and non-performing loans ratio (the percentage of borrowings which borrowers are either struggling to pay, or unable to pay).
In the table below, you’ll find a comparison of the key financial ratios reported by DBS for the current quarter under review (i.e., 2Q FY2025 ended 30 June) against that reported in the previous quarter 3 months ago (i.e., 1Q FY2025 ended 31 March), as follows:
| 1Q FY2025 | 2Q FY2025 | Difference (in Percentage Points – pp) | |
| Net Interest Margin (%) | 2.12% | 2.05% | -0.07pp |
| Return on Equity (%) | 17.3% | 16.7% | -0.6pp |
| Non-Performing Loans Ratio (%) | 1.1% | 1.0% | +0.1pp |
Of note among the statistics is the 0.1pp improvement in its non-performing loans ratio to 1.0% – due to a 3.6% decline in non-performing assets (from S$4,861 million in 1Q FY2025 to S$4,686 million in 2Q FY2025).
Dividend Payout to Shareholders
Unlike the other 2 banks (in UOB and OCBC), the management of DBS pays out a dividend to the shareholders on a quarterly basis. Not only that, the dividend yield of the bank is also very decent, hence making the bank an attractive investment option for income investors.
For the current quarter under review, a dividend payout of 75.0 cents/share was declared (comprising of an ordinary dividend of 60.0 cents/share, plus a capital return dividend of 15.0 cents/share), which is the same as the previous quarter (i.e., 1Q FY2025).
However, compared to its dividend payout of 54.0 cents/share declared in the same quarter one year ago, this represented an improvement by 38.9%.
Together with the 75.0 cents/share paid out in 1Q FY2025, the total dividends paid out by DBS for 1H FY2025 amounts to 150.0 cents/share – again, this is a 38.9% year-on-year jump from its payout of 108 cents/share in 1H FY2024.
Finally, if you are a shareholder of DBS, do take note of the following dates on its dividend payout:
Ex-Date: 14 August 2025
Record Date: 15 August 2025
Payout Date: 25 August 2025
CEO Ms Tan Su Shan’s Comments & Outlook (Extracted from the Bank’s Press Release)
“We delivered a strong set of results for the first half despite the challenging environment. Our ability to manage the balance sheet nimbly, grow deposits and capture market opportunities helped offset the external pressures. Net interest income, fee income and treasury customer sales reached record levels, while markets trading performance was the strongest in four years. Return on equity was 17% even after the impact of the global minimum tax, reflecting the benefit of our investments to deepen customer relationships across wealth management and corporate banking. We are also pleased to be recognised once again as the World’s Best Bank by Euromoney.
While external uncertainties remain, we have opportunities ahead of us. Our proactive management of the balance sheet puts us in a good position to navigate the interest rate cycle, while strong capital and liquidity ensure we are well placed to support customers.”
Closing Thoughts
Despite headwinds, DBS still managed to break new records on several fronts – in its loan-related fees (at S$412 million), as well as its total income (at S$11.6 billion) for the 1st half of FY2025. This is in addition to the bank having a record assets under management of S$442 billion.
Also, its net fee & commission income (at S$1.17 billion), as well as its treasury customer sales (at S$522 million) for the 2nd quarter was also the bank’s second highest on record.
As far as dividend payouts are concerned, no surprises on its quarterly payout of 60.0 cents/share (which is a 11.1% year on year improvement) – and from my understanding in one of the interviews conducted with the bank’s CEO, she said that barring unforeseen circumstances, its quarterly dividend for FY2025 will be at the same, and this provides some certainty especially for income investors in my opinion.
If one were to take into consideration the Capital Return dividend of 15.0 cents/share, the bank’s total dividend for the quarter amounts to 75.0 cents/share, a 38.9% year-on-year improvement compared to a year ago.
To wrap up, as a shareholder of DBS, you can say that I’m delighted with its latest ‘report card’ – I’m sure you will agree with me on this.
This brings me to the end of my review of DBS’ latest 2Q and 1H FY2025 results. As always, I hope you have found the contents presented in this post useful. However, do take note that all the opinions expressed above are purely mine which I’m sharing for educational purposes only, and not meant as any buy or sell calls for the bank’s shares. Please do your own due diligence before you make any investment decisions.
Related Documents
Disclaimer: At the time of writing, I am a shareholder of DBS Group Holdings Limited.
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