DBS Group Holdings Ltd (DBSDY) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Okay, good morning, everybody, and a very warm welcome to DBS's second quarter 2026 financial results briefing. This morning, we announced second quarter net profit rose 9% to a record $3.08 billion as quarterly total income crossed $6 billion for the first time. With us, we have our CEO, Tan Tushan, and our CFO, Ching Tok Hui, to tell us more. So without further ado, Tok Hui, please. Good morning, everyone. So we delivered a record performance in the second quarter. Net profit rose 9% from a year ago to reach a new high of $3.08 billion, while return on equity was 17.9% and return on tangible equity was 19.6%. Total income grew 6% and crossed $6 billion for the first time. The increase was driven by higher non-interest income underpinned by the structural growth of our customer franchise. In particular, robust wealth management momentum was maintained. Fee income was near record levels and treasury customer sales reached a new high. We also mitigated significant interest rate headwinds with balance sheet growth and proactive hedging. Meanwhile, markets trading income strengthened as we benefited from lower funding costs and capitalised on volatile markets. For the first half, net profit rose 5% to a record $6.01 billion. Total income increased 3% to a new high as record free income and treasury customer sales more than offset lower net interest income. Asset quality was resilient. Total non-performing assets were little changed from the previous quarter as new MPA formation was offset by repayments and write-offs. The MPL ratio was stable at 1.0%, while specific allowances remained below the through-the-cycle average at 16 basis points of loans for the second quarter and 15 basis points for the first half. Allowance coverage was 130% and 196% after considering colla...