DBS Group Reports Record Revenue and Growth

DBS Group Holdings ((DBSDY)) has held its Q3 earnings call. Read on for the main highlights of the call.

DBS Group Holdings demonstrated a robust performance in its latest earnings call, showcasing record-breaking revenue and significant growth in key segments like fee income and wealth management. Despite facing challenges such as increased tax expenses and interest margin compression, the bank maintained resilient asset quality and achieved notable deposit growth, reflecting a positive sentiment overall.

Record-Breaking Revenue and Profit

DBS Group Holdings reported a remarkable third quarter with pretax profit rising by 1% to a record $3.48 billion, achieving a return on equity (ROE) of 17.1%. The total income also saw a 3% increase, reaching a new high of $5.93 billion, underscoring the bank’s strong financial performance.

Strong Fee Income Growth

The bank’s fee income surged by 22% year-on-year to a record $1.36 billion, primarily driven by the wealth management sector. Additionally, treasury customer sales reached unprecedented levels, contributing significantly to the overall income growth.

Resilient Asset Quality

DBS maintained a stable asset quality with a non-performing loan (NPL) ratio at 1.0% and specific allowances at 15 basis points of loans. This resilience highlights the bank’s effective risk management strategies amidst a challenging economic environment.

Significant Deposit Growth

Total deposits increased by 3% or $19 billion during the quarter, with the current account and savings account (CASA) ratio rising to 53%. This growth in deposits indicates strong customer confidence and liquidity position.

Wealth Management Segment Surge

The wealth management segment experienced a 13% year-on-year income growth to $1.54 billion, with assets under management expanding by 18% to $474 billion. This surge underscores the bank’s successful strategies in attracting and managing wealth.

Increased Tax Expenses Impacting Net Profit

Despite the strong performance, net profit for the third quarter declined by 2% or $73 million to $2.95 billion, primarily due to higher tax expenses resulting from the global minimum tax implementation.

Interest Margin Compression

The net interest margin saw a decline of 9 basis points quarter-on-quarter and 15 basis points year-on-year to 1.96%, attributed to lower interest rates. This compression poses a challenge to the bank’s interest income.

Slower Loan Growth

Loan growth remained sluggish, with gross loans showing little change in constant currency terms. The surplus deposits were primarily deployed into liquid assets, reflecting a cautious approach in the current market conditions.

Forward-Looking Guidance

Looking ahead, DBS Group Holdings anticipates continued strong performance with a record profit before tax of $3.48 billion in the third quarter of 2025, marking a 1% increase year-on-year. The bank expects broad-based growth, particularly in wealth management and treasury customer sales, despite a slight decline in net profit due to tax changes. The board has declared a total dividend of $0.75 per share, indicating confidence in future earnings.

In summary, DBS Group Holdings’ earnings call highlighted a strong financial performance with record revenues and significant growth in key segments. Despite challenges such as increased tax expenses and interest margin compression, the bank’s asset quality and deposit growth remained robust. Looking forward, the bank is well-positioned for continued growth, supported by its strategic focus on wealth management and treasury sales.