KUALA LUMPUR: DBS Group Holdings reported a 5% year-on-year (y-o-y) decline in net profit to SG$2.8 billion (RM8.88 billion) for the third quarter of financial year 2026 (3QFY2026), as a sharp drop in markets trading income offset growth in net interest income.
Total income fell 1% to SG$5.845 billion, while net profit declined 9% compared with the preceding quarter. The results also missed consensus estimates of SG$2.95 billion, following a similar earnings shortfall by United Overseas Bank (UOB).
Market trading income plunged 65% amid "unfavourable" equity market conditions, weighing on the bank's overall performance.
DBS maintained its quarterly dividend at 66 Singapore cents per share, alongside 15 Singapore cents in capital returns.
The bank's reported common equity tier-1 (CET1) ratio stood at 15.9% under transitional arrangements, or 14% on a fully phased-in basis.
For FY27, DBS expects total income growth in the mid-single-digit range.
"We turned in another quarter of strong franchise growth, with robust increases in loans, deposits and wealth assets," said CEO Tan Su Shan.
"The performance reflected our ability to capture structural opportunities across wealth management and institutional banking," she added.
Tan noted that the global economic outlook had become more uncertain amid elevated energy prices, tighter financial conditions and geopolitical risks. However, she expects a more supportive interest rate environment and continued structural growth opportunities to benefit earnings in FY27.
She added that the bank's "strong capital and liquidity positions and healthy general allowance buffers provide resilience against macroeconomic uncertainty".
Separately, DBS announced that chairman Peter Seah will retire after 16 years on the board, with former GIC executive Anthony Lim set to succeed him.