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DBS Posts Q3 Profit Beat, Guides 2026 Earnings Slightly Lower

Management links its outlook to margin pressure from lower rates under explicit Fed-cut assumptions.

Overview

  • DBS reported third-quarter net profit of S$2.95 billion, down 2 percent year on year yet above market forecasts from Bloomberg and LSEG polls.
  • The board declared a total third-quarter payout of 75 Singapore cents per share, comprising a 60-cent ordinary dividend and a 15-cent capital return, with about S$2.13 billion payable.
  • Net interest margin declined to 1.96 percent from 2.11 percent a year earlier, as commercial-book net interest income fell 6 percent with hedging and deposit growth cushioning the impact.
  • For 2026, the bank guides total income around 2025 levels and expects net profit to be slightly below this year, with group net interest income also slightly lower.
  • The guidance assumes three Federal Reserve rate cuts, a strong Singapore dollar and current SORA levels, and includes targets for high‑single‑digit growth in commercial non‑interest income and a cost‑income ratio in the low‑40 percent range.