DBS beats expectations with $2.82b net profit for second quarter, maintains 2025 outlook

DBS, Singapore's largest bank, posted $2.82 billion in net profit for the second quarter of 2025, beating expectations amid heightened global uncertainties and challenging financial conditions.

According to financial results posted on Thursday (Aug 7), net profit for the quarter which ended on June 30, was up by one per cent year-on-year, from $2.79 billion for the same period last year.  

The bank's strong performance was driven by a five per cent boost in total income, which came in at $5.73 billion.

DBS also noted that total income and profit before tax for the first half of the year came in at record highs of $11.6 billion and $6.83 billion respectively.

Net interest income was higher, supported by strong deposit growth and proactive balance sheet hedging, said the bank, adding that fee income and treasury customer sales also rose to their second highest quarterly levels while markets trading performance strengthened.

The bank declared a total divided payout of 75 cents per share for the quarter, comprising 60 cents ordinary dividend and 15 cents capital return dividend.

But DBS noted a five per cent year-on-year rise in expenses, which rose to $2.27 billion due to higher staff costs.

Return on equity fell to 16.7 per cent from 18.2 per cent a year earlier, while overall net interest margin declined to 2.05 per cent from 2.14 per cent.

The bank also recorded a lower commercial book net interest income of $3.63 billion, down four per cent year-on-year, mainly due to a 28-basis-point decline in net interest margin caused by US Fed rate cuts, lower Singapore Overnight Rate Average and Hong Kong Interbank Offered Rate.

Maintains 2025 outlook

"We delivered a strong set of results for the first half despite the challenging environment," said CEO Tan Su Shan.

She reaffirmed the bank's overall 2025 outlook, expecting overall net interest income to be slightly above that in 2024, while net profit is expected to be lower.

"While external uncertainties remain, we have opportunities ahead of us," Tan said, adding that she is optimistic about the bank's ability to navigate the interest rate cycle while supporting customers with strong capital and liquidity.

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dana.leong@asiaone.com