DBS Group stock weighs trading slump against resilient franchise

Published on 11/12/2026 at 09:29 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

DBS Group stock remains under pressure after weaker markets trading cut third-quarter profit. Customer businesses and the 2027 outlook provide support.

Trading weakness meets franchise growth

DBS Group's third-quarter profit declined as weaker markets trading offset growth in lending, wealth management and customer fees.
Management expects mid-single-digit total income growth in 2027 while monitoring rates, funding costs and market conditions.
Nine-month profit reached a record, supported by resilient asset quality, capital and liquidity.

DBS Group, SG1L01001701, Illustration mit AI erstellt.

DBS Group reported a third-quarter 2026 net profit of SGD 2.81 billion on Thursday, November 5, down 5 percent from a year earlier and 9 percent from the second quarter. The figures were published by The Asian Banker, which re-disseminated the company's results.

The main drag was markets trading income, which fell 65 percent year on year to SGD 152 million amid unfavourable market conditions. Total income declined 1 percent from a year earlier to SGD 5.85 billion and was 4 percent below the previous quarter.

Customer businesses cushion trading weakness

DBS's operating franchise continued to expand despite the weaker trading contribution. Net interest income rose 4 percent year on year to SGD 3.71 billion, supported by hedging and balance-sheet growth. Net fee income increased 6 percent to SGD 1.43 billion, while wealth management fees advanced 9 percent to SGD 864 million.

Loans increased 11 percent in constant-currency terms to SGD 479 billion, and deposits rose 10 percent to SGD 650 billion. Record net new money inflows lifted wealth assets under management by 5 percent to a new high of SGD 544 billion. The bank said commercial-book other non-interest income grew 19 percent to SGD 685 million, mainly because of higher treasury customer sales.

For the first nine months, net profit reached a record SGD 8.82 billion, up 2 percent, while total income rose 2 percent to SGD 17.9 billion. Return on equity was 17.0 percent, the cost-income ratio was 39 percent for the nine-month period and the non-performing loan ratio improved to 0.9 percent.

Rates and funding shape 2027 outlook

DBS expects total income to grow in the mid-single-digit range in 2027. The outlook assumes two further US Federal Reserve rate increases through the end of next year, average SORA of about 1.6 percent and a stronger Singapore dollar. Net interest income growth is expected to remain close to the mid-single-digit range, supported by lending and deposit growth.

Management also expects non-interest income to grow at a high-single-digit rate in weaker markets and potentially at a low-double-digit rate if volatility, market direction and trading volumes are supportive. The bank is targeting a cost-income ratio in the low-40 percent range and specific allowances of 17 to 20 basis points.

DBS Group stock traded at 49.99 euros on Lang & Schwarz at 09:24 CET on Thursday, November 12, 2026.