DBS Group (D05) Q2 2026 earnings summary

Executive summary

• Net profit for the first half rose 5% year-over-year to a record $6.01 billion, with total income up 3% to $12.0 billion, driven by record fee income, treasury customer sales, and robust wealth management performance; AUM surpassed $500 billion.

• Markets trading income was the highest since 2021, and treasury customer sales set new records.

• Asset quality remained resilient, with stable NPL ratio at 1.0% and allowance coverage at 130% (196% with collateral).

• Board declared a total dividend of 81¢ per share for Q2, including a 15¢ capital return component.

• Strategic initiatives included Singapore’s first synthetic securitisation transaction, a market-first tokenised gold offering, and appointment as RMB clearing bank.

Financial highlights

• Q2 net profit rose 9% year-over-year to $3.08 billion; 1H net profit up 5% to $6.01 billion; total income up 3% to $12.0 billion, both at record highs.

• Fee income surged 25% to $1.46 billion in Q2, led by wealth management; 1H net fee income rose 20% to $2.94 billion.

• Net interest income for 1H fell 3% year-over-year to $7.08 billion; net interest margin declined 20 bps to 1.88%.

• Cost-to-income ratio improved to 39%; profit before allowances up 8% to $3.75 billion in Q2 and 3% to $7.39 billion in 1H.

• Deposits grew 4% in the first half to $638 billion; gross loans up 5% to $475 billion.

Outlook and guidance

• Total income for 2024 expected to exceed 2023, with full-year guidance raised; deposit growth targeted in high single digits.

• Commercial book non-interest income growth guidance raised to mid-teens, driven by wealth management.

• Cost discipline to be maintained, aiming for cost-to-income ratio in the low 40% range; SP assumed within 17-20bp in 2H.

• No rate hikes expected for the remainder of the year; SORA projected to stay around 1.2%.