Singapore’s three largest banks — DBS Group Holdings Ltd (SGX: D05), United Overseas Bank Ltd (SGX: U11), and Oversea-Chinese Banking Corporation Limited (SGX: O39) — have reported their results for the first quarter of 2025.
Together, they make up more than half of the Straits Times Index (SGX: ^STI).
Here’s a quick look at how each bank performed.
1. DBS Group (SGX: D05)
Reported: 8 May 2025
DBS reported a net profit of S$2.9 billion, down 2% year on year. The dip was largely due to the implementation of the 15% global minimum tax, which raised the group’s tax expenses.
Still, the bank beat analyst expectations of S$2.87 billion, according to Bloomberg.
Despite the dip in profit, DBS achieved record total income of S$5.91 billion, up 6% year on year, and a record pre-tax profit of S$3.44 billion. Return-on-equity (ROE) remained strong at 17.3%.
Net interest income (NII) rose 2% as balance sheet growth offset a nine-basis-point decline in net interest margin (NIM) to 2.12%.
There was broad-based growth across the business:
- Record fee income and treasury customer sales, led by wealth management
- Highest markets trading income in 12 quarters
DBS declared S$0.75 per share in dividends (S$0.60 ordinary + S$0.15 capital return), up from S$0.54 a year ago.
2. United Overseas Bank (SGX: U11)
Reported: 7 May 2025
UOB posted a net profit of S$1.5 billion, unchanged from a year ago.
The bank saw broad-based growth across its wholesale and retail banking divisions.
Notably:
- Net fee income rose 20% year on year to a record S$694 million, driven by wealth management and loan-related fees.
- Net interest income increased 2%, underpinned by a 6% growth in loans.
- Net interest margin remained steady at 2%.
On the other hand, trading and investment income fell, leading to a 5% drop in non-interest income compared to a year ago. However, it was up 25% quarter on quarter.
Credit costs rose to 35 basis points due to a pre-emptive allowance set aside for macroeconomic risks. Still, the non-performing loan (NPL) ratio stayed low at 1.6%.
UOB maintained a strong capital position, with its key capital ratio standing at 15.5%
3. OCBC Bank (SGX: O39)
Reported: 9 May 2025
OCBC reported S$1.88 billion in net profit, down 5% from a year ago but up 12% from the previous quarter. The result was ahead of market expectations.
Net interest income fell 4% year on year due to a 23 basis-point drop in Net interest margin, which came in at 2.04%. This was offset somewhat by an 8% growth in average assets.
Non-interest income rose 10%, boosted by:
- Stronger fees
- Improved trading income
- Better performance from insurance operations
Operating expenses increased by 5% year on year, driven by staff cost increases and continued investments in technology.
Importantly, OCBC maintained its earnings guidance for 2025, projecting:
- Net interest margin of around 2%
- Credit costs of 20–25 basis points
Get Smart: Strong but Cautious
Singapore’s three largest banks are showing resilience amid a complex macroeconomic landscape.
DBS delivered record income despite higher taxes, UOB held steady, supported by fee growth and solid loan demand, and OCBC balanced margin pressure with improved non-interest income.
All three banks maintain strong balance sheets and high capital ratios — positive signs for investors focused on dividend stability and long-term strength.
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Disclosure: Joanna Sng of The Smart Investor owns shares of DBS, UOB, and OCBC.
