DBS in Singapore will surge to record in a higher margin, capital return plan
Nia and Luni Nia
SINGAPORE (Reuters) – DBS’ shares meet expectations in fourth quarter profit jump after Singapore’s biggest bank flagged improvements in net interest income and improved dividend capital return plans in 2025 Along the line, it surged to record highs after flagging its dividend capital return plan.
Banks with assets from Southeast Asia’s largest banks expect group net interest income to be slightly above S$15.04 billion ($11.1 billion) in 2025, which remains at 2024 levels. This is an upgrade from the previous prediction that there is.
“While macroeconomic and geopolitical uncertainties continue, franchise and digital transformations have been underway over the past decade.
The net interest margin for DBS, the key profitability meter, rose to 2.15% in the quarter from 2.13% in the previous year.
DBS, the first Singapore lender to report its revenue season, said its net income from October to December was SGD 2.62 billion from SGD 2.39 billion the previous year, due to growth in commercial books and market transactions. He said it had risen to ($19 billion).
This coincides with an average estimate of 2.63 billion Singans from five analysts, according to LSEG data.
DBS stock reached a record high of 46.5 S$46.5 earlier in the day, bringing the Straits Times index to its highest level ever.
The benchmark surpassed a 0.4% slump in the widespread Asian market, affected by repeated warnings of impending tariffs from US President Donald Trump, including steel and aluminum.
DBS declared a final dividend of 60 cents per share, against 54 cents declared a year ago.
They plan to introduce capital revenue dividends of 15 cents per quarter to be paid over 2025, and pay similar amounts via this plan or other mechanism over the next two years. It is expected.
In addition to the SGD3 billion repurchase announced in the third quarter, the 2025 capital return dividend plan demonstrates DBS’ commitment to shareholder returns aimed at long-term growth, analysts say I did.
DBS made a CEO change in March, with investors focusing on potential changes. Tan Su Shan, who previously led DBS’s institutional banking group and now as deputy CEO, will take over Gupta and become the first woman to lead the bank.
Banks in Singapore were expected to record stronger profits in the fourth quarter, but growth will occur this year as US President Donald Trump’s trade tariffs and other policies threaten to undermine the global economy. It could be, analysts said. Rival United Overseas Bank will report its financial results on February 19th.