DBS Group has reported a record profit before tax of S$13.1b for 2025, marking a slight increase from the previous year. This achievement comes as the bank’s total income rose by 3% to a new high of S$22.9 billion, despite facing challenges from a difficult rate environment. The group’s net interest income saw modest growth, bolstered by proactive hedging and record deposit growth, which countered the effects of lower interest rates and a stronger Singapore dollar.
The bank’s fee income and treasury customer sales reached unprecedented levels, driven by wealth management, whilst markets trading income was the highest since 2021. The cost-income ratio remained stable at 40%. Asset quality was maintained, with the non-performing loan (NPL) ratio stable at 1.0%, despite a prudent downgrade of a previously watchlisted real estate exposure to NPL in the fourth quarter.
Net profit for the year was 3% lower at S$11b, primarily due to increased tax expenses following the implementation of a 15% global minimum tax. The return on equity stood at 16.2%, with a return on tangible equity of 17.8%. DBS CEO Tan Su Shan commented, “Record profit before tax and return on equity of 16% were a testament to the resilience and adaptability of our franchise amidst rate and tax headwinds.”
The bank anticipates continued rate pressures and geopolitical tensions but remains confident in its strong balance sheet and franchise quality as a foundation for the coming year.
