Singapore Lenders DBS, UOB Post Third-Quarter Profit Declines — Update

By Megan Cheah

Two of Singapore's largest lenders, DBS Group and United Overseas Bank, reported lower profit for the third quarter.

DBS's third-quarter net profit fell 2.0% from a year ago to 2.95 billion Singapore dollars, equivalent to US$2.26 billion, the lender said Thursday. That still beat the consensus estimate of S$2.765 billion by analysts polled by Visible Alpha.

The bottom line was weighed by global minimum tax effects, DBS said.

Total income climbed 3.0% to S$5.93 billion, above market estimates for S$5.70 billion, said DBS.

DBS, Southeast Asia's largest bank by assets, declared a dividend of S$0.60 as well as a capital-return dividend of S$0.15 for the period.

Group net interest income--the difference between what banks earn on loans and pay on deposits--of S$3.58 billion was little changed from a year earlier, as balance-sheet hedging and strong deposit growth mitigated lower Hong Kong and Singapore benchmark interest rates, DBS said. Commercial book net interest income slipped 6% to S$3.56 billion.

Commercial book net fee and commission income rose 22% to S$1.36 billion, led by rising wealth management fees.

Allowances for credit and other losses was S$124 million, down from S$130 million a year earlier.

"Total income reached a new high as we sustained the strong momentum in wealth management and deposit growth while mitigating external rate pressures through proactive balance sheet hedging," said DBS Chief Executive Tan Su Shan.

DBS aims to continue navigating pressures from declining interest rates with balance-sheet management, as well as capturing opportunities across wealth management and institutional banking, Tan added.

Meanwhile, United Overseas Bank's third-quarter net profit slumped 72% from a year earlier to S$443 million after the bank set aside S$615 million in pre-emptive general provisions.

Total income was S$3.40 billion, down 11% from the same period a year earlier.

Net interest income fell 8% to S$2.265 billion, reflecting margin compression, said UOB, Singapore's third-largest bank.

UOB's net fee income fell 2% to S$615 million, as higher card-rewards expenses offset into strong growth in loan-related, wealth and card activities.

UOB said it took steps to shore up pre-emptive general allowances, strengthening its provision coverage amid ongoing macroeconomic uncertainties and sector-specific headwinds.

"By prioritizing balance sheet strength, we stand ready to act, support customers and seize strategic growth opportunities," said UOB Chief Executive Wee Ee Cheong.

"For shareholders, our share buyback and dividend commitments remain intact, and the pre-emptive allowance will not impact this year's final dividend," he added.

Analysts had widely expected Singapore banks to post lower earnings in the second half of the year as interest rates decline, pressuring interest margins. However, strong fee income could offset the impact.

Oversea-Chinese Banking Corp. is scheduled to release its earnings Friday.

Write to Megan Cheah at megan.cheah@wsj.com

(END) Dow Jones Newswires

November 05, 2025 21:00 ET (02:00 GMT)