Wealth Management Fees Hit Record High! DBS Q2 Net Profit Reaches S$3.08 Billion, H1 at S$6.01 Billion – Both All-Time Highs

DBS Group has announced its financial performance for the second quarter of 2026, reporting a record quarterly net profit of S$3.08 billion (approximately NT$77.6 billion), an increase of 9% compared to the same period in 2025. Despite challenges from interest rate volatility, total revenue grew 6% to a record high of S$6.09 billion (approximately NT$153.44 billion), primarily driven by higher non-interest income, reflecting structural growth in customer business activities. Notably, assets under management (AUM) in wealth management surpassed S$500 billion for the first time.

For the first half of 2026, DBS Group achieved both total revenue and net profit growth of 3% and 5% respectively, setting new historical highs at S$12.0 billion (approximately NT$302.34 billion) and S$6.01 billion (approximately NT$151.42 billion). The return on equity (ROE) for the first half stood at 17.5%, with return on tangible equity (RoTE) at 19.2%. The cost-to-income ratio remained healthy at 39%.

In terms of business segments, net fee income rose 25% year-on-year to S$1.46 billion in Q2, marking the second-highest quarterly figure on record. This was largely due to a 42% year-on-year increase in wealth management fees to S$919 million, driven by robust client investment activity, which in turn boosted AUM. On a constant currency basis, wealth management AUM grew 16% year-on-year to S$516 billion. Other non-interest income from corporate and consumer banking rose 30% to a record S$681 million, supported by strong sales in wealth and treasury solutions.

Net interest income declined 2% year-on-year to S$3.58 billion due to lower interest rates, with the net interest margin (NIM) narrowing by 18 basis points to 1.87%. However, this impact was largely offset by strong loan and deposit growth, along with proactive hedging strategies. On a constant currency basis, loans grew 8% year-on-year to S$469 billion, led by large corporate lending, while deposits increased 11% to S$638 billion, with current and savings accounts (Casa) accounting for about three-quarters of the growth.

Asset quality remained stable, with the non-performing loan (NPL) ratio holding steady at 1.0% in Q2. Special loan loss provisions amounted to S$188 million, or 16 basis points of loans, with a coverage ratio of 130%, rising to 196% when including collateral values. The liquidity coverage ratio stood at 142%, and the Common Equity Tier 1 (CET1) capital ratio was 16.6%, well above regulatory requirements.

Given its strong performance, DBS Group’s board declared a second-quarter dividend of S$0.66 per share in ordinary dividends and S$0.15 in capital return dividends, bringing the total first-half dividend to S$1.62 per share (comprising S$1.32 in ordinary dividends and S$0.30 in capital return dividends).

DBS Group CEO Piyush Gupta stated, "Our strong first-half performance was underpinned by the strength of our wealth management franchise, driving AUM past the S$500 billion milestone. Amid shifting interest rate environments, we actively managed our balance sheet to capture structural growth in wealth and corporate banking, while demonstrating strong execution in markets. Additionally, we completed our first synthetic securitization transaction, becoming the first Singapore-headquartered bank to do so, enhancing capital efficiency and supporting client financing needs."