Dbs bank - 3Q net profit at $2.81b  Total income slightly lower YoY at $5.85b; strong business momentum offset by lower markets trading income o Group net interest income up 4% to $3.71b led by strong loan and deposit growth

3Q net profit at $2.81b

 Total income slightly lower YoY at $5.85b; strong business momentum offset by lower markets trading income

o Group net interest income up 4% to $3.71b led by strong loan and deposit growth

o Fee income and treasury customer sales rise; Wealth segment AUM at new high

o Markets trading income declines amid unfavourable equity market conditions 

9M net profit up 2% to record $8.82b

 Total income rises 2% to new high of $17.9b led by record fee income and treasury customer sales

Balance sheet remains strong

 NPA declines 3% QoQ as new NPA formation remains low, NPL ratio improves to 0.9% 

 SP at 17bp for 3Q and 16bp for 9M

 Allowance coverage at 134% and 202% after considering collateral

 Transitional CET1 ratio at 15.9%, fully phased-in at 14.0%

3Q total dividend of 81¢ per share, comprising 66¢ ordinary dividend and 15¢ Capital Return dividend

 Strong business momentum underscores franchise resilience .A record nine months 9M total income and net profit at new highs, ROE at 17%. 3Q earnings moderate from 2Q high, mainly due to lower markets trading income.

 Solid customer franchise growth sustained in 3Q

o Wealth NNM and AUM at new highs; wealth fees in 1Q-3Q the three highest 

quarters on record

o IBG treasury customer sales and transaction services fees also at new highs

o Robust loan and deposit growth

 Net interest income past the trough, exit NIM at 1.90%

o 3Q Group NII second highest on record despite low Sora, testament to balance sheet growth and proactive hedging.

2027 outlook

Global economy remains resilient, but outlook more uncertain amid elevated energy prices, tighter financial conditions and geopolitical risks

 Total income growth to be in mid-single-digit range

o Assumes two more US Fed rate hikes from now till end-2027, Sora averaging ~1.6% and a stronger SGD

o NII sensitivity of $10m/bp to SG interest rates and -$2m/bp to US interest rates; 

capturing favourable hedging opportunities

o NII supported by healthy loan pipeline and deposit growth

o Structural growth in wealth management to continue

o Prudent growth in FIG and TMT

 Cost-income ratio to be in low-40% range Mid-single-digit expense growth

 SP assumed to be within 17-20bp; GP reserves provide ample buffer against risk