Singapore bank DBS posts record quarterly profit, sees 2025 dip from tax changes

SINGAPORE: Singapore’s biggest bank DBS Group posted on Thursday ( Nov 7 ) a record net profit in the third quarter, but forecast 2025 net profit to be below 2024 levels because the country is introducing a global minimum corporate tax rate.

DBS, the first Singapore lender to report third-quarter results, said July to September net profit surged 15 per cent to S$ 3.03 billion ( US$ 2.27 billion ), easily beating the mean estimate of nearly S$ 2.80 billion from five analysts, according to LSEG data.

Even though its net attention margin, a crucial profitability indicator, decreased 2.11 per cent in the second quarter from 2.19 per cent the exact quarter a year earlier, it even surpassed the previous monthly record of S$ 2.96 billion set in the first quarter of this year.

The strong result was a result of history cost revenues driven by success management, higher sales from the Treasury to clients, and higher market trading profits.

Singapore’s banks have benefited from higher world interest rates and solid wealth flows that have been fueled by the country’s social stability in recent years.

However, analysts have predicted that rate cuts by large central bankers and turbulent markets due to worldwide geopolitical and economic uncertainty will have an impact on their growth speed.

DBS forecasts 2025 pre-tax revenue and party net interest money to be around 2024 rates, according to CEO Piyush Gupta’s study presentations accompanying the benefits.

However, net profit after tax will be lower next year as a result of Singapore’s introduction of a 15 % minimum corporate tax in January and its application to multinational corporations, including DBS.

DBS, which is also Southeast Asia’s biggest bank, announced a monthly income of 54 Singapore cents per share, away from 48 percent declared the same quarter a year ago.

Additionally, the institution disclosed that a new S$ 3 billion share buyback program had been established on its table.

Our sturdy cash position and continuing earnings generation support the new buyback program we announced today, adding that it represents yet another proof of our commitment to capital management.

Following the findings, Jefferies equity analysts Sam Wong and Shujin Chen stated in a research note that they anticipated a positive share price response.

” This is a very strong set with results, with positive surprise in capital return”, they said in the note. On Friday, local rivals United Overseas Bank ( UOB ) and Oversea-Chinese Banking Corporation ( OCBC ) are scheduled to release their quarterly results.