DBS Group Holdings reported a 5% third-quarter profit decline as a steep fall in markets trading income outweighed higher lending and fee revenue, while preparing for a change in board leadership.
Net profit was S$2.813 billion for the three months ended Sept. 30, compared with S$2.954 billion in the same period a year earlier. The bank's markets trading line contracted 65% to S$152 million, which DBS linked to unfavorable equity-market conditions. Total income slipped 1% to S$5.845 billion.
Other businesses grew. Net interest income increased 4% to S$3.711 billion, while net fee income rose 6% to S$1.432 billion. Wealth management fees climbed 9% to S$864 million. DBS said proactive hedging and balance-sheet growth helped limit the effect of lower Sora on net interest income.
For the first nine months of 2026, net profit advanced 2% to a record S$8.822 billion, total income rose 2% to S$17.886 billion and return on equity was 17%. DBS CEO Tan Su Shan said the results came as average Sora fell to half its year-earlier level.
DBS projected mid-single-digit total-income growth for 2027. Its planning assumptions include two additional U.S. Federal Reserve rate hikes by the end of 2027, average Sora of about 1.6% and a stronger Singapore dollar.
DBS Chairman Peter Seah will retire Dec. 31 after 16 years in the role and serve as Senior Advisor for one year. Board member Anthony Lim, who joined the DBS boards in April 2020 and chaired the Compensation and Management Development Committee, will take over Jan. 1, 2027. The bank said its income had more than tripled and net profit had increased more than fourfold since Seah became chairman in 2010.
The board declared a third-quarter dividend of 81 Singapore cents per share, made up of 66 cents in ordinary dividends and 15 cents in capital-return dividends. Payment is due on or about Nov. 24.
