SINGAPORE: Singapore’s biggest bank DBS Group posted on Thursday (Nov 7) a record net profit in the third quarter, but forecast 2025 net profit to be below 2024 levels because the country is introducing a global minimum corporate tax rate.
DBS, the first Singapore lender to report third-quarter results, said July to September net profit surged 15 per cent to S$3.03 billion (US$2.27 billion), easily beating the mean estimate of nearly S$2.80 billion from five analysts, according to LSEG data.
It also topped the previous quarterly record of S$2.96 billion it set in the first quarter this year, even though its net interest margin, a key profitability gauge, declined to 2.11 per cent during the third quarter from 2.19 per cent the same quarter a year earlier.
The strong result came on the back of record fee income driven by wealth management, higher treasury customer sales and increased market trading income.
Singapore banks have benefited from higher global interest rates and strong inflows of wealth drawn in by the country’s political stability in recent years.
But rate cuts by big central banks and volatile markets due to global geopolitical and economic uncertainties are set to weigh on their growth momentum, analysts have said.
DBS forecasts 2025 pre-tax profit and group net interest income to be around 2024 levels, according to CEO Piyush Gupta’s observation slides accompanying the results.
But net profit after tax will be lower next year due to a 15 per cent global minimum corporate tax being introduced by Singapore in January and imposed on multinational companies including DBS.
DBS, which is also Southeast Asia’s biggest bank, announced a quarterly dividend of 54 Singapore cents per share, up from 48 cents declared the same quarter a year ago.
The bank also announced that its board had established a new
