NMPAR

Its strong momentum was offset mainly by a 65% drop in market trading income.

DBS Group posted a net profit of $2.81b in the third quarter (Q3) of 2026, down 5% year on year (YoY) from $2.95b.

The decline came even as net interest income rose 4% quarter on quarter to $3.71b, with a stable net interest margin and 3% growth in loans and deposits in constant currency.

Record net new money inflows also lifted wealth segment assets under management by 5% to a new high of $544b.

DBS said the strong business momentum was offset mainly by lower market trading income, which fell 65% YoY to $152m amidst unfavourable equity market conditions.

Total income was consequently 1% YoY lower at $5.85b.

The board declared a total dividend of 81 cents per share in Q3, comprising a 66-cent ordinary dividend and a 15-cent capital return dividend.

For the first nine months, net profit increased 2% YoY to $8.82b, whilst total income rose 2% to a new high of $17.89b.

Net interest income saw little change from a year ago at $10.8b, as hedging and balance sheet growth mitigated the impact of a lower Singapore Overnight Rate Average (SORA) and a stronger Singapore dollar (SGD).

The cost-to-income held stable at 39.3%, whilst return on equity came in at 17%

Meanwhile, the transitional common equity tier 1 ratio stood at 15.9% as at 30 September.

The ratio would have been 16.1% after adjusting for the Monetary Authority of Singapore’s decision to reduce the operational risk multiplier imposed over past digital disruptions to 1.5 times.

DBS said it expects total income growth to be in the mid-single-digit range, and the cost-to-income ratio to be in the low-40% range.

The bank’s outlook assumes two more US Federal Reserve rate hikes from 5 November until the end of 2027, with the SORA averaging at around 1.6% and the SGD strengthening.

“As we enter 2027, we will stay nimble to capture opportunities while prudently managing risks,” said Tan Su Shan, DBS CEO.

“A more supportive interest rate environment and continued structural growth opportunities would benefit earnings,” she added.