DBS Raises 2025 Outlook After Record Q2 Profit Driven by Wealth Management

Singapore's DBS Group reported a record second-quarter profit and raised its full-year guidance after strong business momentum and robust growth in wealth management helped offset pressure from lower interest rates. The bank's latest results highlight its resilience despite a softer rate environment, reinforcing its position as Southeast Asia's largest lender.

DBS posted second-quarter net profit of S$3.08 billion, a 9% increase from the same period last year. Total income climbed 6% to a record S$6.09 billion, marking the first time the bank's quarterly income has exceeded S$6 billion. Although net interest income slipped 2% to S$3.58 billion due to lower benchmark interest rates, proactive hedging strategies and continued balance sheet expansion helped cushion the decline.

Non-interest income delivered a strong performance, with fee income surging 25%. Wealth management fees jumped 42%, reflecting growing customer demand, while treasury customer sales reached a record level. Markets trading income also rose 12%, contributing to the bank's overall earnings growth.

Following its solid first-half performance, DBS now expects full-year total income to surpass 2025 levels. The bank also anticipates that group net interest income will come closer to last year's performance, assuming interest rates remain near current levels. In addition, DBS upgraded its forecast for commercial book non-interest income growth to the mid-teens, supported by continued strength in wealth management. Deposit growth is expected to remain in the high single digits.

Asset quality remained healthy during the quarter. The non-performing loan ratio held steady at 1.0%, while total allowances for credit losses declined 15% from a year earlier. DBS also maintained a strong capital position with a Common Equity Tier 1 (CET1) ratio of 16.6%, providing flexibility for future growth and shareholder returns.

For the first half of the year, DBS recorded a net profit of S$6.01 billion, up 5% year over year, supported by record fee income and solid loan and deposit growth. The bank declared a second-quarter interim dividend of 66 Singapore cents per share, along with a capital return dividend of 15 Singapore cents per share, underscoring confidence in its financial strength and long-term outlook.