DBS Group (D05) investor relations material

Executive summary

• Wealth AUM reached SGD 680 billion (over $500 billion), targeting SGD 1 trillion by 2030, with an 11% CAGR driven by net new money, retail migration, and market impact.

• Achieved record total income and net profit for 2Q and 1H 2026, led by strong customer franchise growth and robust wealth management performance.

• Markets trading income and treasury customer sales reached record highs, with strategic initiatives including tokenised gold and RMB clearing bank status.

• Taiwan and Hong Kong are key growth drivers, with double-digit growth and successful integration of Citi Taiwan's franchise.

• Fee income growth is supported by diversified products, AI-driven productivity, and market share gains.

Financial highlights

• Net profit for 1H 2026 rose 5% year-over-year to $6.01 billion; total income up 3% to $12.0 billion, with record fee and treasury income.

• Net fee income rose 20% to $2.94 billion, driven by a 33% increase in wealth management fees.

• Expenses increased 3–4% YoY; cost-income ratio at 39%.

• Customer loans grew 8% YoY to $475 billion; deposits rose 11% to $638 billion.

• Banca contributed about 20% of wealth revenue.

Outlook and guidance

• Full-year guidance raised; total income expected to exceed 2025 levels, with deposit growth projected in high single digits and commercial book non-interest income growth in mid-teens.

• Cost discipline to be maintained, targeting cost-income ratio in the low 40% range.

• Steady-state loan growth expected at SGD 4–5 billion per quarter; wealth management momentum remains robust.

• No immediate plans for new market entry; focus on expanding and upgrading wealth centers in core markets.

• SP expected within 17-20bp in 2H; ample GP reserves provide risk buffer.