DBS third-quarter net profit falls 5% on year, misses forecasts

SINGAPORE: DBS Group, Singapore's biggest bank, reported a 5 per cent fall in third-quarter net profit on Thursday (Nov 5), missing market expectations as weaker trading income weighed on earnings amid heightened global uncertainty.

Net profit for the July-to-September quarter fell to S$2.81 billion (US$2.20 billion) from a year earlier, below the S$2.90 billion average forecast of four analysts surveyed by LSEG.

DBS also announced that independent director Anthony Lim will succeed Peter Seah as chairman on Jan 1, 2027, as part of a planned leadership renewal.

Mr Seah, who has chaired the bank for 16 years, will retire on Dec 31 before taking on a one-year appointment as senior advisor, DBS said in a separate media release.

Guess WordCrack the word, one row at a timeBuzzwordCreate words using the given lettersMini SudokuTiny puzzle, mighty brain teaserMini CrosswordSmall grid, big challengeWord SearchSpot as many words as you can Show More Show Less

The profit decline came despite resilient wealth management and fee income, as volatile financial markets and rising global risks weighed on the bank's performance.

DBS, Southeast Asia's largest lender by assets, said markets trading income plunged 65 per cent year-on-year to S$152 million, citing "unfavourable equity market conditions".

Its net interest margin, a key measure of lending profitability, narrowed by 9 basis points from a year earlier to 1.87 per cent.

The weaker results come as Singapore's banks navigate a more challenging operating environment, with surging global bond yields, a sell-off in technology stocks and the ongoing Middle East conflict adding to market volatility.

The decline underscores how surging global bond yields, a rout in high-flying technology stocks last quarter and the ongoing Middle East conflict are beginning to bite into Singapore lenders' earnings after strong wealth management momentum cushioned their bottom lines in the first half.

These pressures have begun to weigh on lenders' earnings, following a strong first half supported by robust wealth management activity.

"While the global economy has remained resilient, the outlook has become more uncertain," DBS CEO Tan Su Shan said in a statement. 

"As we enter 2027, we will stay nimble to capture opportunities while prudently managing risks."