People use DBS automated teller machines (ATMs) in Singapore on Mar 31, 2022. (Photo: REUTERS/Caroline Chia)

DBS' Q1 profit beats forecast; keeps 2026 outlook largely unchanged

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SINGAPORE: DBS Group kept its 2026 outlook largely unchanged, with rate headwinds to income expected to be largely mitigated after Singapore's biggest bank on Thursday (Apr 30) posted a 1 per cent rise in first-quarter net profit as wealth management drove earnings.

"While the Iran war and its potential second-order effects have added uncertainty to the outlook, our stress tests indicate that our credit portfolio remains sound," DBS CEO Tan Su Shan said in a statement.

"Our solid balance sheet, with prudent general allowance buffers, strong capital position and robust liquidity, underpins our resilience," she added.

In slides accompanying the results, Tan said rate headwinds to net interest income were now expected to be "largely mitigated", assuming rates stay at current levels, while non-interest income could see upside if market sentiment improves.

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The bank no longer highlighted its earlier guidance for net profit to be slightly below 2025 levels or the potential for general provision write-backs.

DBS, which is also Southeast Asia's largest bank by assets, said January-March net profit rose to S$2.93 billion (US$2.29 billion) from S$2.90 billion a year earlier.

This beat the mean estimate of nearly S$2.83 billion from three analysts, according to LSEG data.

The performance was led by strength in its wealth management arm, which drove fee income and treasury customer sales to new highs, the bank said.

Wealth management fees reached a record S$907 million on the back of higher investment product sales and bancassurance, building on the lender's growth in the wealth segment in 2025.

DBS is the first Singapore lender to kickstart this earnings season. UOB and OCBC are scheduled to announce their results on May 7 and 8 respectively.

DBS' net interest margin, a key profitability gauge, dropped to 1.89 per cent during the quarter from 2.12 per cent the same quarter a year earlier.

The bank announced an interim dividend of 66 Singapore cents per share, versus 60 cents declared the same quarter a year ago, and a capital return dividend of 15 cents was declared, the same as a year ago.

Source: Reuters

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