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3w ago

DBS Beats Q2 Profit Forecasts as UOB Posts 6% Drop

They are bolstering fee income to offset squeezed lending margins in a low-rate environment.

UOB CEO Wee Ee Cheong warned that new U.S. tariffs could dampen consumer sentiment and investment activity.
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Overview

  • DBS Group reported a 1% rise in Q2 net profit to S$2.82 billion, beating analyst estimates driven by wealth management fees and trading income growth.
  • UOB’s Q2 net profit fell 6% to S$1.34 billion, missing forecasts as net interest margin narrowed with lower rates.
  • Both banks saw net interest margins decline by around 14 to 28 basis points, underscoring pressure on core lending profitability.
  • DBS declared an ordinary dividend of 60 Singapore cents and a capital return dividend of 15 cents per share, while UOB announced an interim dividend of 85 cents and a special tranche of 50 cents.
  • Management maintained 2025 outlooks, set aside pre-emptive allowances for macroeconomic uncertainties and emphasized non-interest income resilience to navigate ongoing pressure.