DBS Q1 profit falls 2% to S$2.9 billion; pays S$0.75 in dividends

DBS’ net profit for its first quarter fell due to higher tax expenses from the implementation of the 15 per cent global minimum tax, it said on Thursday (May 8).

Net profit for the three months ended March 31, 2025 stood at S$2.9 billion, compared with S$2.95 billion from the year-ago period.

The earnings missed the S$2.87 billion consensus forecast in a Bloomberg survey of eight analysts.

The lender declared a total dividend of S$0.75 per share for Q1, comprising S$0.60 ordinary dividend and a S$0.15 capital return dividend, up from S$0.54 in the year-ago period.

For the commercial book, total income was up 4 per cent on year to S$5.54 billion.

Net interest income for the segment rose 2 per cent to S$3.72 billion, as nine-basis-point decline in net interest margin (NIM) to 2.68 per cent was more than offset by balance sheet growth.

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Net fee and commission income was up 22 per cent to S$1.28 billion, as wealth management fees grew from strong market sentiment and higher assets under management, while loan-related fees rose with increased activity.

Its treasury customer sales and other income fell 12 per cent to S$548 million, due to non-recurring items, while treasury customer sales grew 11 per cent to a record.

Meanwhile, its markets trading income rose 48 per cent to S$363 million, partly reflecting lower funding costs.

Overall, group NIM fell to 2.12 per cent for the quarter, from 2.14 per cent in the previous corresponding period.

The bank’s non-performing loans (NPL) ratio was flat at 1.1 per cent.

The bank said it made additional general allowances of S$205 million to strengthen reserves in light of recent developments that have added to macroeconomic and geopolitical uncertainty.

Tan Su Shan, chief executive of DBS, said: “Recent escalations in trade tensions have heightened macroeconomic risks and market volatility. As uncertainty persists, we will stay nimble to capture opportunities while prudently managing risks.”

Shares of DBS closed 0.5 per cent or S$0.23 lower at S$42.76 on Wednesday, before the release of the results.