Strong operating performance despite significant rate headwinds

We achieved another year of strong operating performance despite the most challenging rate environment in recent years. Total income rose 3% to a record SGD 22.9 billion as proactive hedging, robust deposit and investment AUM inflows, and our ability to capture market opportunities across businesses more than offset the rate pressures. The cost-income ratio was unchanged at 40%, and profit before allowances increased 2% to a record SGD 13.7 billion. Profit before tax of SGD 13.1 billion was also a new high. Net profit was 3% lower at SGD 11.0 billion, reflecting higher taxes from the 15% global minimum tax. Return on equity of 16.2% was within our 15–17% medium-term target and remained several percentage points above local and most global peers.

The results underscored the breadth and resilience of our franchise as we navigated an operating environment shaped by geopolitical rifts and trade tensions.

The year began on a relatively benign footing, supported by Fed rate cuts in late 2024 and constructive market sentiment from solid corporate earnings and steady global growth, but this quickly gave way to a new phase of uncertainty following US tariff announcements. Resultant movements in interest rates and FX had a material impact on our performance.

In Singapore and Hong Kong, interest rates declined sharply, even as the Fed paused rate cuts between December 2024 and September 2025. Sora fell about 160 basis points amid an unusually strong liquidity backdrop, driven by robust foreign inflows and domestic liquidity accumulation. Hibor also fell by around 160 basis points due to flush system liquidity conditions. At the same time, the Singapore dollar appreciated around 2% against the USD, HKD and RMB, and about 6% against INR and IDR, resulting in FX translation losses on our non-SGD earnings. Taken together, these interest rate and FX movements created a net interest income headwind of well over SGD 1 billion for the year.

Net interest income resilience from hedging and deposit growth

Despite the sizeable headwind, group net interest income was slightly higher than the previous year at a record SGD 14.5 billion. This reflected two key factors.

The first was proactive balance sheet hedging. Over the past three to four years, while interest rates were higher, we acted early to pre-empt the impact of falling rates by locking in asset yields for longer tenors. Our fixed-rate assets – comprising fixed-rate mortgages, interest rate swaps and fixed income securities – were increased by about SGD 70 billion to SGD 210 billion, or one-third of the commercial book. This positioning reduced our net interest income sensitivity to rate movements significantly. As at end-2025, net interest income sensitivity stood at SGD 10 million per basis-point change in interest rates for the SGD book and negative SGD 4 million per basis-point change for the USD book. For the full year, group net interest margin declined 12 basis points to 2.01%, a smaller compression than local peers, reflecting the benefit of these hedges.

The second factor was robust deposit inflows. Singapore continued to attract substantial liquidity as a regional wealth hub and financial safe haven, and this was bolstered by the strong performance of the Singapore dollar against the USD and other major currencies. With interest rates falling, there was also a shift of retail funds from treasury bills back into deposits. Deposits grew SGD 64 billion or 12% in constant-currency terms to SGD 610 billion, the largest absolute increase in the bank’s history, with over two-thirds in Casa. The increase in deposits funded loan growth and higher deployment into liquid assets, both supporting net interest income.

Loans grew SGD 24 billion or 6% in constant-currency terms to SGD 445 billion, driven by broad-based growth in corporate and non-housing consumer loans. Non-trade corporate loan pipelines remained healthy despite the uncertain environment, although high repayments in North Asia tempered growth. Trade loan growth was underpinned by expansion in targeted client segments, while non-housing consumer loans were led by wealth management lending.

Deposit growth outpaced loan growth, and we nimbly deployed the excess liquidity into low-risk non-loan assets, including an increase of SGD 42 billion in HQLA to SGD 208 billion. While this deployment lowered net interest margins, it was accretive to earnings and return on equity.

Record non-interest income reflects nimble execution and structural strengths

Non-interest income was the main growth engine during the year. Net fee income rose 18% to a record SGD 4.90 billion, while treasury customer sales increased 14% to a new high of SGD 2.14 billion. These gains reflected both cyclical and structural drivers.

Wealth management was the largest contributor to fee growth, with fees rising 29% to SGD 2.81 billion. After a brief post-Liberation Day soft patch, investor sentiment recovered as tariff concerns eased and macro and earnings data remained resilient. Structurally, we benefitted from healthy AUM inflows into Singapore and Hong Kong as global wealth hubs and from the investments made over the years to deepen our franchise. The Citi Taiwan integration broadened opportunities in Taiwan, while our refreshed digital wealth strategy gained traction and supported stronger contributions from retail wealth.

Fee contributions from Institutional Banking also strengthened. Transaction services fees grew 3% to a record SGD 942 million, supported by higher cash management fees from increased payment activity and greater client wallet share, and growth in custody fees across both traditional securities and digital assets.

Loan-related fees increased 14% to SGD 733 million, also a new high, reflecting the structural strengthening of our expertise in target industries and client engagement, even as industry volumes were broadly unchanged.

Investment banking fees rose 45% to SGD 146 million, as improved capital market conditions supported ECM and DCM deal activity. Increased capital flows within Asia and between Asia and the GCC created additional opportunities, and our origination and distribution capabilities positioned us well to capture these flows.

Treasury customer sales were another key driver of non-interest income growth, reaching a record level as wealth management and institutional client demand for investment and hedging solutions rose amid heightened volatility.

Markets trading non-interest income was 11% lower from a year ago, though overall markets trading income – combining net interest income and non-interest income – rose 49% to SGD 1.37 billion, the highest since 2021. Results were buoyed by periods of higher market volatility following tariff-related developments, and by stronger treasury customer flows that supported higher warehousing gains.

Cost discipline and sustained digital leadership

Expenses rose 4% to SGD 9.25 billion led by higher staff costs. Headcount declined due to reductions in certain overseas markets following the completion of integration work, while automation and Gen AI adoption supported productivity and contained resourcing needs. Non-staff expenses were higher mainly from revenue-related items such as marketing and sales incentives. The cost-income ratio was unchanged at 40%.

DBS has been a first mover in digital transformation, investing early in digitalisation, data and AI well before the current Gen AI wave, while transforming the way we work and fostering a strong innovation culture. These efforts, showcased at our 2017 and 2023 digital investor days, have delivered tangible improvements in ROE. We will continue to reinvest efficiency gains into new builds and enhancements to sustain this momentum. Economic impact from data analytics and AI/ ML was approximately SGD 1 billion in 2025.

Balance sheet remains healthy

Asset quality was resilient. Non performing assets fell 4%, as new NPA formation – which included a previously watchlisted real estate exposure prudently downgraded to NPL in the fourth quarter – was more than offset by upgrades, repayments and write-offs. The NPL ratio was stable at 1.0%. Specific allowances amounted to SGD 854 million or 19 basis points of loans, around the historical cycle average.

General allowances of SGD 63 million were written back. There was an increase in management overlays of around SGD 200 million in the first quarter as a prudent measure following Liberation Day. This was offset by write-backs over the remainder of the year, including amounts previously set aside for the real estate exposure downgraded in the fourth quarter.

Total allowance reserves stood at SGD 6.28 billion, comprising general allowance reserves of SGD 3.86 billion and specific allowance reserves of SGD 2.42 billion. Allowance coverage was 130%, and 197% after considering collateral.

Capital remained healthy. The reported Common Equity Tier-1 ratio was 17.0% based on transitional arrangements. The pro-forma ratio on a fully phased-in basis was 15.0%. The leverage ratio was at 6.2%, more than twice the regulatory minimum of 3%.

Delivering on our multi-year capital return commitments

In 2025, we began executing the SGD 8 billion excess capital return framework announced last year, while continuing to deliver the ordinary dividend increases guided at our 2023 Investor Day.

The excess capital framework comprises an SGD 3 billion share buyback programme and SGD 5 billion to be returned through Capital Return dividends of SGD 0.15 per quarter over three years. During the year, we commenced these initiatives, completing about 12% of the buyback programme, stepping up repurchases when the share price dipped following Liberation Day. We also started paying the Capital Return dividend from the first quarter. These initiatives are intended to reduce our stock of excess capital and are in addition to our customary progression of ordinary dividends.

For financial year 2025, the Board proposed a final ordinary dividend of SGD 0.66 per share, an increase of SGD 0.06 from the prior year’s final payout, and a Capital Return dividend of SGD 0.15 per share, bringing the total dividend for the year to SGD 3.06 per share, up 38% from the previous year. Taking the proposed final ordinary dividend of SGD 0.66 per share together with the Capital Return dividend of SGD 0.15 per share, the annualised total dividend amounts to SGD 3.24 per share. These distributions are underpinned by our healthy capital position and strong earnings generation.

Total shareholder returns

Total shareholder returns for the calendar year were 35%, comprising share price gains of 29% and dividends of SGD 2.85 per share. Dividends paid included the ordinary dividend for the fourth quarter of 2024 as well as ordinary and Capital Return dividends for the first three quarters of 2025.

Outlook

2026 is likely to remain a volatile year. Geopolitical fractures, tariff shocks and fiscal and monetary policy shifts are prompting customers to prioritise resilience and diversify risks and dependencies, and to partner banks that are stable, trusted and future-ready to support them through change. DBS is well positioned in this environment.

We expect total income in 2026 to be around 2025 levels. Fee income and treasury customer income combined is expected to grow at a high-single-digit rate as we capture client diversification flows. This should offset a slightly lower group net interest income, reflecting the full-year impact of lower Sora and a stronger Singapore dollar, mitigated in part by balance sheet hedges and continued deposit growth.

We expect the cost-income ratio to be in the low-40% range as we maintain cost discipline.

Specific allowances are assumed to be within 17–20 basis points of loans. Asset quality remains sound, with general allowance buffers providing resilience amid ongoing geopolitical and policy uncertainty, and potential for write-backs should conditions stabilise.

Overall, net profit in 2026 is expected to be slightly below 2025 levels.

(A) Geographic segment performance

Singapore and Hong Kong, our two largest markets, delivered total income growth of 1% to SGD 14.7 billion and 4% to SGD 3.52 billion respectively despite significant rate headwinds. In both markets, net interest income was supported by strong deposit growth and balance sheet hedging, while non-interest income increased led by wealth management. Singapore net profit declined 7% to SGD 7.84 billion, due to the impact of the 15% global minimum tax, while Hong Kong net profit rose 1% to SGD 1.61 billion.

Our key growth markets of India, Indonesia, Taiwan and China all posted double-digit net profit growth, underpinned by robust non-interest income momentum.

South and Southeast Asia total income increased 8% to SGD 1.70 billion. In India, Institutional Banking sustained strong momentum, with growth across loans, current account balances and treasury customer sales, particularly from large corporates in GIFT City, while markets trading benefitted from improved market conditions. Consumer Banking repivoted following regulatory changes, exiting certain ecosystem partnerships in cards and unsecured lending, while refocusing on segments such as gold loans, where traction improved in the second half. Indonesia performed well despite a softer operating environment, as higher non-interest income from FX, derivatives, investment products and loan fees more than offset net interest margin compression. For the region, expenses grew 2% to SGD 956 million, while total allowances increased 26% to SGD 220 million. Net profit rose 16% to a record SGD 413 million.

Rest of Greater China total income rose 11% to SGD 2.19 billion. In Taiwan, the scaled-up franchise following the Citi Taiwan integration and improved sales productivity supported stronger bancassurance and investment product flows, as well as higher card fees. Markets trading performance was also robust. In Mainland China, total income growth was led by non-interest income across wealth management, transaction services, capital markets and markets trading activities. We continued to deepen our presence in the Greater Bay Area, including increasing our stake in Shenzhen Rural Commercial Bank to 19.9%. For the region, expenses grew 2% to SGD 1.34 billion, while total allowances declined 44% to SGD 120 million. Net profit rose 46% to SGD 791 million.

(B) Business unit performance

Consumer Banking/ Wealth Management total income grew 4% to SGD 10.5 billion. Net interest income declined 6% to SGD 6.11 billion as lower net interest margin was mitigated by volume growth. Non-interest income grew 20% to SGD 4.44 billion led by double-digit percentage growth in investment and bancassurance fees. Record net new money inflows of SGD 39 billion drove AUM up 19% in constant-currency terms to SGD 488 billion. Expenses increased 4% to SGD 5.50 billion, while total allowances rose 12% to SGD 499 million. Profit before tax grew 2% to SGD 4.54 billion.

Institutional Banking total income declined 3% to SGD 8.91 billion as record loan-related fees, cash management fees and treasury customer income were offset by lower net interest income. Expenses increased 5% to SGD 2.95 billion. Total allowances rose by SGD 232 million to SGD 241 million due to higher specific allowances largely from the real estate NPL in the fourth quarter. Profit before tax fell 10% to SGD 5.73 billion.

Markets trading income rose 49% to SGD 1.37 billion, the highest since 2021, with interest rates, equity derivatives and FX activities benefiting from lower funding costs and a more conducive trading environment. Expenses increased 10% to SGD 810 million. Profit before tax tripled to SGD 568 million.

The Others segment encompasses the results of corporate decisions that are not attributed to business segments. It includes earnings on capital deployed into high-quality assets, earnings from non-core asset sales and certain other head office items such as centrally raised allowances.

(C) Net interest income

Group net interest income was modestly higher at SGD 14.5 billion, as balance sheet hedging and record deposit growth offset sharp declines in Sora and Hibor and adverse FX translation from a stronger Singapore dollar. Commercial book net interest income declined 4% from a lower net interest margin.

Deposits grew SGD 64 billion or 12% in constant-currency terms to SGD 610 billion, the largest absolute increase in the bank’s history, with over two-thirds of the increase in Casa. SGD Casa rose as funds from maturing T-bills flowed back into deposits, while foreign currency Casa growth was broad-based across wealth and corporate clients.

Gross loans grew SGD 24 billion or 6% in constant-currency terms to SGD 451 billion, led by broad-based growth in corporate and wealth management loans. As deposits continued to grow faster than loans, surplus deposits were deployed into liquid assets, which was accretive to net interest income and ROE.

(D) Non-interest income

Net fee income rose 18% to SGD 4.90 billion. Wealth management fees increased 29% to a record SGD 2.81 billion. Transaction service and loan-related fees also reached new highs, while investment banking fees were higher. Card fees were slightly lower.

Other non-interest income declined 5% to SGD 3.50 billion as record treasury customer sales were offset by a decline in non-interest trading income, lower investment gains and the absence of prior-year non-recurring gains.

(E) Expenses

Expenses rose 4% from a year ago to SGD 9.25 billion led by higher staff costs. The cost-income ratio was unchanged at 40%.

(F) Asset quality

Non performing assets declined 4% to SGD 4.84 billion, as new NPA formation – which included a previously watchlisted real estate exposure prudently downgraded to NPL in the fourth quarter – was more than offset by upgrades, repayments and write-offs. The NPL ratio was stable at 1.0%.

Specific allowances amounted to SGD 854 million or 19 basis points of loans, broadly in line with the through-cycle average. General allowances of SGD 63 million were written back.

Total allowance reserves amounted to SGD 6.28 billion. Specific allowance reserves were at SGD 2.42 billion. General allowance reserves stood at SGD 3.86 billion, which included SGD 2.4 billion of general allowance overlays. Allowance coverage was at 130% and at 197% after considering collateral.