DBS Group Holdings Ltd (DBSDY) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Okay, good morning everyone and welcome to DBS's second quarter 2025 financial results briefing. This morning we announced second quarter profit before tax rose 5% to $3.39 billion. Net profit was up 1% at $2.82 billion. And for the first half, both total income and profit before tax were at new highs. So with us today, we have our CEO Tan Tuy Shan and our CFO Cheng Sok Huy. Without further ado, Sok Huy please. We delivered a strong set of results this quarter, despite a very challenging environment. Uncertainty around US trade policy weighed on customer sentiment. Interest rates in Singapore and Hong Kong fell sharply. while currency fluctuations led to adverse translation effects. Amid these headwinds, pre-tax profit rose 5% from a year ago to $3.39 billion. Net profit was 1% higher at $2.82 billion, even with the impact of the global minimum tax. Total income grew 5% to $5.73 billion. the growth was broad-based. Net interest income was higher, supported by strong deposit growth and proactive balance sheet hedging. Fee income and Treasury customer sales reached their second-highest levels, while markets trading income more than doubled to a 13-quarter high. For the first half, Pre-tax profit rose 3% to a record $6.83 billion. Net profit was little change despite higher tax expenses. Return on equity was 17.0% and return on tangible equity was 18.8%. Total income rose 5% to a new high of $11.6 billion. with growth across both the commercial book and markets trading. The cost-to-income ratio was stable at 39%. Asset quality was resilient. The NPL ratio improved during the quarter from 1.1% to 1.0%. Specific allowances were 15 basis points of loans for the quarter and 12 basis points for the half. Allowance coverage was 137% and 236% after considering collateral. Capi...