DBS Group Holdings Ltd reported a weaker-than-expected fourth-quarter performance, as lower interest rates and higher tax expenses weighed on earnings, while the bank signalled that dividend payouts will remain a priority.
Net income excluding one-off items fell 10% to S$2.36 billion in the three months ended Dec 31, missing the S$2.57 billion average forecast of analysts surveyed by Bloomberg, according to a statement released on Monday.
Despite the earnings decline, Southeast Asia’s largest lender declared a total dividend of 81 Singapore cents for the quarter.
DBS also said it intends to continue capital return dividends of 15 Singapore cents a share per quarter for the financial years 2026 and 2027, barring unforeseen circumstances.
Chief Executive Officer Tan Su Shan said, “While rate pressures and geopolitical tensions are expected to persist, the quality of our franchise and strong balance sheet provide a solid foundation for the year ahead.” She added that the bank expects net profit in 2026 to come in slightly below 2025 levels.
DBS is the first among Singapore’s major lenders to announce results this reporting season and remains the only one of the three local banks to pay dividends every quarter.
United Overseas Bank Ltd and Oversea-Chinese Banking Corp are scheduled to release their earnings later this month.
Bloomberg
