DBS Group Holdings Limited (SGX: D05), or DBS for short, is one that all of us Singaporeans should be very familiar with – for we can find their ATMs and bank branches wherever we go.
Apart from its home country, where they have the largest presence, some of you may not know that DBS is also the largest bank in Southeast Asia by assets. At the same time, it has one of the highest credit ratings in the world. More recently (in mid-October), it was reported that the bank has been named as the worlds’s best AI bank in the inaugural Global Finance AI in Finance Awards!
Currently, DBS has a presence in a total of 19 markets, with their focus in Greater China, Southeast Asia, and South Asia.
This morning (06 November), DBS released its business update for the 3rd quarter, as well as for the first 9 months of FY2025 ended 30 September (for information, UOB also released its 3Q & 9M FY2025 business update this morning and you’ll find my review shortly, with OCBC releasing its 3Q & 9M FY2025 business update tomorrow morning) and in this post, you’ll find my review about its latest set of financial figures, key financial ratios, as well as its dividend payout to shareholders:
Financial Figures (3Q FY2024 vs. 3Q FY2025, and 9M FY2024 vs. 9M FY2025)
3Q FY2024 vs. 3Q FY2025:
| 3Q FY2024 | 3Q FY2025 | % Variance | |
| – Net Interest Income (S$’mil) | $3,597m | $3,578m | -0.5% |
| – Net Fee & Commission Income (S$’mil) | $1,109m | $1,357m | +22.4% |
| – Other Non-Interest Income (S$’mil) | $1,047m | $997m | -4.8% |
| Total Income (S$’mil) | $5,753m | $5,932m | +3.1% |
| Total Expenses (S$’mil) | $2,249m | $2,393m | +6.4% |
| Net Profit Attributable to Shareholders (S$’mil) | $3,027m | $2,954m | -2.4% |
First and foremost, net interest margin inched down slightly by 0.5% year on year to S$3,578 million, as the impact of lower Sora and Hibor was offset by balance sheet hedging and strong deposit growth.
DBS’ net fee and commission income surged by 22.4% year on year to S$1,357 million (a new high, and also the brightest spot in the bank’s latest results for the 3rd quarter), which can be attributed to improvements in wealth management fees (which rose 31% year on year from growth in investment products and bancassurance) loan-related fees (which grew 25% year on year due to increased deal activity), transaction services (which rose 9% year on year), as well as investment banking fees (which was up 65% year on year from increased debt and equity capital market activity).
Other non-interest income, however, fell by 2.4% year on year to S$2,954 million, which can be attributed to a 21% year-on-year decline in markets trading non-interest income (from S$530 million in 3Q FY2024 to S$419 million in 3Q FY2025).
That said DBS’ total income (comprising the sum of its net interest income, net fee and commission income, and other non-interest income), which totalled S$5,932 million (up by 3.1% year on year from a year ago), was a new record for the bank.
Total expenses was up by 6.4% year on year to S$2,393 million led by higher staff costs as bonus accruals grew in tandem with the stronger performance. Despite of that, its profit after tax (after expenses and allowances) of S$3,476 million was also a new record for the bank.
9M FY2024 vs. 9M FY2025:
| 9M FY2024 | 9M FY2025 | % Variance | |
| – Net Interest Income (S$’mil) | $10,696m | $10,907m | +2.0% |
| – Net Fee & Commission Income (S$’mil) | $3,200m | $3,799m | +18.7% |
| – Other Non-Interest Income (S$’mil) | $2,896m | $2,863m | -1.1% |
| Total Income (S$’mil) | $16,792m | $17,569m | +4.6% |
| Total Expenses (S$’mil) | $6,500m | $6,877m | +5.8% |
| Net Profit Attributable to Shareholders (S$’mil) | $8,767m | $8,675m | -1.0% |
For the first 9 months of FY2025 (compared against a year ago), DBS’ net interest income still managed to eke out a 2.0% year-on-year gain to S$10,907 million, as the impact of lower interest rates (where net interest margin was down 9 basis points to 2.04%) was more than offset by balance sheet hedging and strong deposit growth.
Net fee and commission income jumped 18.7% year on year to S$3,799 million (a new record for DBS), led by new highs in wealth management and loan-related fees.
However, the bank’s other non-interest income dipped by 1.1% year on year to S$2,863 million from a slightly lower market trading non-interest income (which was down by 5% from S$1,280 million in 9Q FY2024 to S$1,215 million in 9M FY2025).
That said, its total income, at S$17,569 million (a 4.6% year-on-year improvement from a year ago), was a new record for the bank.
While expenses rose by 5.8% year on year to S$6,877 million mainly due to higher staff costs from salary increments and bonus accruals, but its profit before allowances (of S$10,692 million, a 4% year on year improvement from a year ago), and profit before tax (of S$10,301 million, up by 3% year on year) were new highs for DBS.
Key Financial Ratios (2Q FY2025 vs. 3Q FY2025)
There are a range of financial ratios made available in the bank’s business update, but personally, my focus is on 3 of them – its net interest margin (the difference between the interest income it earns on loans and investments and the interest it pays out on deposits), return on equity (a measure of how much profits a bank is able to generate for every dollar of shareholders’ money it uses in its businesses), as well as non-performing loans ratio (the percentage of loans where the borrower has not made payments for a set period).
In the table below, you’ll find a comparison of the 3 key financial ratios reported by DBS for the current quarter under review (i.e., 3Q FY2025 ended 30 September 2025) compared against that reported in the previous quarter 3 months ago (i.e., 2Q FY2025 ended 30 June 2025):
| 2Q FY2025 | 3Q FY2025 | Difference (in Percentage Points – pp) | |
| Net Interest Margin (%) | 2.05% | 1.96% | -0.09pp |
| Return on Equity (%) | 16.7% | 17.1% | +0.4pp |
| Non-Performing Loans Ratio (%) | 1.0% | 1.0% | – |
With benchmark borrowing rates trending downwards, its of no surprise that DBS’ net interest margin continued to decline – this time round, it fell by 0.09pp compared to the previous quarter to 1.96%.
On the other hand, return on equity improved by 0.4pp to 17.1%, with non-performing loans ratio remained stable at 1.0%, with non-performing assets at more or less the same compared to the previous quarter.
Dividend Payout to Shareholders
DBS is the only one out of the 3 Singapore-listed banks to pay out a dividend to the shareholders on a quarterly basis, hence making the bank the preferred option for income investors (as they are able to receive payouts in a form of dividends more frequently).
For 3Q FY2025, an ordinary dividend payout of 60.0 cents/share, plus a capital return dividend of 15.0 cents/share was declared. In total, this amounted to 75.0 cent/share (same as the previous 2 quarters), and a 38.9% year-on-year improvement from its payout of 54.0 cent/share a year ago.
If you are a shareholder of DBS, do take note of the following on the payment of its dividend:
Ex-Date: 13 November 2025
Record Date: 14 November 2025
Payout Date: 24 November 2025
Finally, for the first 9 months of FY2025, DBS’ dividend payout of 225.0 cents/share (comprising of a payout of 75.0 cents/share each quarter) is also a 38.9% year-on-year jump compared to its dividend payout of 162.0 cents/share a year ago.
CEO Ms Tan Su Shan’s Comments & Outlook (from the Bank’s Press Release)
“We delivered a strong set of results for the third quarter with record pre-tax profit and ROE above 17%. Total income reached a new high as we sustained the strong momentum in wealth management and deposit growth while mitigating external rate pressures through proactive balance sheet hedging. As we enter the coming year, we will continue to navigate the pressures of declining interest rates with nimble balance sheet management and our ability to capture structural opportunities across wealth management and institutional banking.”
Closing Thoughts
Overall, it was a resilient set of results reported by DBS for the 3rd quarter, as well as for the first 9 months of FY2025, with a number of record highs achieved by the bank – namely in its net fee and commission income, total income, and profit after tax for the 3rd quarter, as well as in its net fee and commission income, total income, profit before allowances, and profit before tax for the first 9 months.
Dividend payout for the 3rd quarter was also expected, at 75 cents (comprising of an ordinary dividend payout of 60 cents, and a capital return dividend of 15 cents).
With that, I have come to the end of my post reviewing DBS’ latest business update for the 3rd quarter, as well as for the first 9 months of FY2025. Do take note that all the opinions expressed within are purely mine, which I’m sharing for educational purposes only. They are 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.
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Disclaimer: At the time of writing, I am a shareholder of DBS Group Holdings Limited.
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