DBS Group Holdings’ net profit for 1Q2026 rose 1% y-o-y and 24% q-o-q to $2.93 billion, within Bloomberg’s estimate of $2.91 billion. Return on equity was 17%. Net interest margin (NIM) fell to 1.89% during the quarter compared to 2.12% a year ago and 1.93% in 4Q2025. General provisions (ECL 1 and 2) were low at $33 million compared to writebacks a quarter ago. Specific provisions (ECL3) were 31% higher y-o-y but significantly lower q-o-q, and at 14 basis points of total loans. The NPL ratio was stable at 1%, unchanged q-o-q.
Net interest income was little changed on a day-adjusted basis, as rate pressures were offset by hedging and balance sheet growth. Non-interest income rose 41%, with double-digit increases in fee income and treasury customer sales, while markets trading income more than doubled. Expenses declined 3%.
Total income was at $5.95 billion underpinned by wealth management fee income. Treasury customer sales were also at a new high. Markets trading income also rose. The positives offset the impact of lower interest rates and a strong Singapore dollar. Cost-to-income ratio was 39%, up y-o-y but down significantly q-o-q from the 44% in the fourth quarter.
The liquidity coverage ratio of 151% and net stable funding ratio of 117% were both well above regulatory requirements. The reported Common Equity Tier-1 (CET1) ratio was 16.9% based on transitional arrangements, while the pro-forma ratio on a fully phased-in basis was 14.8%. The leverage ratio of 5.9% was well above the regulatory minimum of 3%.
DBS CEO Tan Su Shan said, “We had a strong start to the year, with record total income and a return on equity of 17% despite continued rate headwinds and heightened geopolitical uncertainty. The quarter was anchored by record wealth management performance, alongside robust deposit growth, record transaction services fees and stronger markets trading income. This reflects the resilience of our franchise and our ability to capture opportunities and support client needs amidst a challenging environment. While the Iran war and its potential second-order effects have added uncertainty to the outlook, our stress tests indicate that our credit portfolio remains sound. Our solid balance sheet, with prudent general allowance buffers, strong capital position and robust liquidity, underpins our resilience."
The Board declared an ordinary dividend of 66 cents per share and a capital return dividend of 15 cents per share for the first quarter.
