DBS Group Holdings Q2 2025 Earnings Call Transcript: Profit Before Tax Rises 5% to $3.39 Billion

DBS Group Holdings reported a 5% increase in Q2 2025 profit before tax to $3.39 billion and a 1% increase in net profit to $2.82 billion. Total income grew 5% to $5.73 billion despite challenging conditions, including uncertainty around US trade policy and currency fluctuations. Net interest income was higher due to strong deposit growth, and fee income and treasury customer sales reached their second-highest levels.

DBS Group Holdings Ltd (DBSDY.PK) has reported a robust performance for the second quarter of 2025, with significant growth in key financial metrics despite a challenging external environment. The bank's profit before tax increased by 5% to S$6.825 billion, while net profit rose by 1% to S$5.721 billion. Total income grew by 5% to S$11.637 billion, highlighting the bank's resilience in the face of uncertainty around US trade policy and currency fluctuations [1].

The bank's net interest income was higher due to strong deposit growth, which contributed to an overall increase in total income. Net interest income for the quarter stood at S$3.65 billion, up 2% year-on-year [2]. Fee income and treasury customer sales reached their second-highest levels, with commercial book net fee income rising by 11% to S$1.17 billion and treasury customer sales growing by 10% to S$2.08 billion [2].

Non-interest income also played a significant role in DBS's strong performance. Markets trading income more than doubled year-on-year to S$418 million, benefitting from a more conducive trading environment and lower funding costs [2]. Expenses increased by 5% to S$2.27 billion, primarily driven by higher staff costs [2].

Despite the positive results, DBS Group's return on equity was stable at 17.0% and return on tangible equity at 18.8% for the first half of the year [2]. The bank's CEO, Tan Su Shan, emphasized the bank's ability to manage its balance sheet effectively and capture market opportunities, which helped offset external pressures [4].

DBS Group's earnings come as smaller peer United Overseas Bank Ltd (SGX:UOBH) posted a drop in its second-quarter income and profit, reflecting the broader challenges faced by the banking sector in the region [3]. The Monetary Authority of Singapore also loosened policy twice this year, but kept policy unchanged in late-July amid some signs of resilience in the Singaporean economy [3].

In summary, DBS Group Holdings has demonstrated strong financial performance in the face of challenging conditions, with significant growth in key financial metrics. The bank's ability to manage its balance sheet and capture market opportunities has been instrumental in its success.

References:
[1] https://www.nasdaq.com/articles/dbs-group-profit-tax-increases-h1
[2] https://sg.finance.yahoo.com/news/dbs-2qfy2025-net-profit-rises-144636547.html
[3] https://www.investing.com/news/stock-market-news/singapores-dbs-posts-stronger-than-expected-q2-profit-maintains-2025-outlook-4174896
[4] https://www.bloomberg.com/news/articles/2025-08-06/dbs-profit-tops-estimates-amid-jump-in-fee-trading-income