DBS NII rises 4% as markets trading income falls
Group net interest income reached SGD 3.71 billion in the third quarter, supported by a stable 1.87% net interest margin and 3% loan and deposit growth. Weaker markets trading weighed on total income, which fell 4% from the prior quarter to SGD 5.85 billion.
DBS Group Holdings (DBS) reported net profit of SGD 2.81 billion for the third quarter ended 30 September 2026, down 5% from a year earlier and 9% from the second quarter, as total income of SGD 5.85 billion was 1% lower year on year and 4% below the prior quarter.
Group net interest income rose 4% from the second quarter to SGD 3.71 billion, after a 2% quarter-on-quarter increase in the second quarter, as balance-sheet growth more than offset a stable net interest margin. The group net interest margin held at 1.87%, after a two-basis-point decline in the second quarter, and was nine basis points lower than a year earlier. Loans expanded 3% or SGD 13 billion in constant-currency terms to SGD 479 billion, led by non-trade corporate and wealth-management loans, after 3% growth in the second quarter. Deposits increased 3% or SGD 16 billion to SGD 650 billion, with growth in both Casa and fixed deposits, after 1% growth in the second quarter.
Net fee income fell 2% from the second quarter to SGD 1.43 billion as wealth-management fees declined 6% from a strong second quarter, following the 1% quarter-on-quarter dip in the second quarter. Customer investment activity moderated, the bank said, while the Wealth franchise continued to grow: record net new money inflows lifted assets under management by 5% to a new high of SGD 544 billion, after AUM first surpassed SGD 500 billion in the first half. Commercial book other non-interest income rose 1% to SGD 685 million, with treasury customer sales remaining near the previous quarter’s record.
Markets trading income fell 68% from the second quarter to SGD 152 million on unfavourable equity-market conditions, after a 21% quarter-on-quarter rise in the second quarter. Expenses increased 1% to SGD 2.37 billion and the cost-income ratio rose slightly, after a 2% quarter-on-quarter expense increase in the second quarter.
Asset quality improved. Non-performing assets declined 3% from the previous quarter to SGD 4.63 billion as new formation was more than offset by repayments and write-offs, and the NPL ratio fell from 1.0% to 0.9%. Specific allowances were SGD 191 million, or 17 basis points of loans, after 15 basis points in the first half and 14 basis points in the first quarter. Allowance coverage was 134%, and 202% after considering collateral.
The reported Common Equity Tier-1 ratio was 15.9% on transitional arrangements and 14.0% fully phased-in at 30 September 2026, down from 16.6% and 14.6% at 30 June 2026. On 4 November 2026 the Monetary Authority of Singapore reduced the operational-risk multiplier imposed over past digital disruptions from 1.8 times to 1.5 times; adjusting for that, the ratios at 30 September would have been 16.1% and 14.1%. The Board declared a total dividend of SGD 81 cents a share for the third quarter, comprising an ordinary dividend of SGD 66 cents and a capital-return dividend of 15 cents, matching the second- and first-quarter per-share payout.
CEO Tan Su Shan said nine-month net profit reached a record of SGD 8.82 billion and return on equity was 17% despite average Sora having halved from a year ago. He said the group would stay nimble into 2027, that a more supportive interest-rate environment and continued structural growth opportunities would benefit earnings, and that strong capital, liquidity and general-allowance buffers provide resilience.
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