DBS Q3 profit drops 5% amid trading slump, names new chairman
Singapore's largest bank reported S$2.81 billion net profit for Q3, missing analyst forecasts, as Anthony Lim prepares to take over leadership.
DBS Q3 Performance Misses Forecasts
DBS Group, Singapore's largest bank, reported a 5 per cent decline in third-quarter net profit on 5 November. The bank's net profit for the July–September period reached S$2.81 billion (US$2.20 billion), falling short of the S$2.90 billion average forecast from four analysts surveyed by LSEG. This downturn reflects the impact of heightened global market uncertainty on the lender's performance.
Trading Income Plunges, New Chairman Appointed
The profit reduction primarily stemmed from a 65 per cent year-on-year plunge in markets trading income, which fell to S$152 million. DBS cited "unfavourable equity market conditions" for this outcome, alongside a narrowing of its net interest margin (NIM) by 9 basis points from a year earlier to 1.87 per cent.
Separately, DBS announced independent director Anthony Lim will succeed Peter Seah as chairman on 1 January 2027. Mr Seah retires on 31 December after 16 years in the role, taking a one-year appointment as senior advisor.
Wealth Management a Bright Spot
Despite the trading challenges, DBS saw strength in its wealth management and fee income segments. Wealth management fees increased by 9 per cent to S$864 million, supported by growth in assets under management. Net fee income rose 6 per cent annually to S$1.43 billion, driven by transaction services, loan-related, and card fees.
In comparison, United Overseas Bank (UOB) reported a third-quarter net profit of S$1.3 billion, with its net fee income up 19 per cent year-on-year to S$733 million.
DBS projects total income to rise in the mid-single-digit range for 2027. This forecast assumes two additional US Federal Reserve rate hikes by the end of next year, coupled with a gradual increase in domestic interest rates and the Singapore dollar. The bank also anticipates continued "structural growth" in wealth management.
For investors, DBS's results show how volatile global markets and rising bond yields are affecting even Singapore's major lenders, suggesting continued scrutiny of trading and lending profitability across the region's banking sector into 2027.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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