Shares of DBS Group Holdings, Singapore's largest bank, declined 1.9% to close at S$58.19 on Monday following the release of its fourth-quarter financial results. The drop came as the bank's net profit for the October-December period fell 10% year-over-year to S$2.26 billion, falling short of the S$2.55 billion consensus estimate.
Margin Pressure and Profit Guidance
A key concern for investors was the continued compression in net interest margin (NIM), a critical measure of lending profitability. DBS reported its NIM narrowed to 1.93%, down from 2.15% a year earlier. The bank also provided guidance that its net profit for 2026 is expected to come in slightly below projected 2025 levels, attributing this to an anticipated decline in interest rates.
CEO Tan Su Shan advised investors to "buckle up" for potential turbulence in 2026, while the bank aims to keep total income steady with the prior year. For the quarter, return on equity also decreased to 13.5% from 15.8% a year ago.
Dividend Dates and Sector Watch
Dividend-focused investors have key dates to note. DBS declared a final dividend of S$0.66 per share and an additional capital return of S$0.15 per share, both with an ex-dividend date of April 8 and a payout date of April 17.
Market attention now shifts to the remaining two of Singapore's "big three" lenders. United Overseas Bank is scheduled to report earnings on February 24, followed by Oversea-Chinese Banking Corporation the next day. Their results will be scrutinized for signs of whether the margin pressures highlighted by DBS are sector-wide.
