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# DBS quarterly net profit falls 5% to S$2.81bn as markets trading income drops 65%
- URL: https://www.theglobalbanker.com/dbs-quarterly-net-profit-falls-5-to-s-2-81bn-as-markets-trading-income-drops-65/
- Published: 2026-11-05T03:25:13.000Z
- Updated: 2026-11-05T03:28:00.000Z
- Description: DBS Group's net profit fell 5% to S$2.81 billion in the July to September quarter, below the mean analyst estimate of S$2.90 billion, as markets trading income fell 65% to S$152 million.
- Author: TGB Editorial Team
- Tags: Banking News, Asia-Pacific, #newsroom, #needs-photo

[DBS Group](https://www.theglobalbanker.com/rankings/), [Singapore](https://www.theglobalbanker.com/market-singapore/)'s largest bank, said on Thursday that net profit for July to September fell 5% from a year earlier to S$2.81 billion, mainly because of a decline in markets trading income. The result was below the mean estimate of S$2.90 billion from four analysts, according to LSEG data.

For the first nine months, net profit rose 2% to a record S$8.82 billion as total income reached a new high, the bank said, and it put return on equity at 17.0%. "While the global economy has remained resilient, the outlook has become more uncertain," chief executive Tan Su Shan said in a statement.

## TRADING AND MARGINS

Markets trading income fell 65% year on year to S$152 million in the quarter, which DBS attributed to unfavourable equity market conditions. The net interest margin, one of the bank's key profitability indicators, decreased by 9 basis points from a year earlier to 1.87%.

The bank pointed to growing global uncertainty from elevated energy prices, higher interest rates and geopolitical risks. Its result came a day after UOB, its smaller peer, reported a fall in trading and investment income and flagged further margin pressure ahead.

## WEALTH AND FEES

Wealth management fees rose 9% from a high base a year ago to S$864 million, supported by growth in assets under management. Transaction services fees reached a new high and loan-related and card fees also increased, lifting net fee income by 6% to S$1.43 billion.

For 2027, DBS expects total income to rise in the mid-single-digit range, assuming two more US Federal Reserve rate hikes by the end of next year and a gradual rise in domestic interest rates and the Singapore dollar. It said structural growth in wealth management is also expected to continue. "As we enter 2027, we will stay nimble to capture opportunities while prudently managing risks," Tan said.

## THREE LOCAL BANKS

DBS is one of three local banking groups in Singapore, with OCBC and UOB, that dominate domestic retail and corporate banking in a hub whose commercial banks held S$4,049.4bn of assets at end-July 2026, more than five times GDP, according to TGB's market profile. DBS said its market capitalisation crossed S$200 billion in July 2026, making it Singapore's largest listed company.

DBS also announced on Thursday that board member Anthony Lim will become chairman from 1 January 2027, succeeding Peter Seah, who will step down after 16 years in the role.

## THE TGB VIEW

DBS ranks 25th in Asia-Pacific in the TGB Bank Rankings with US$698.9bn of total assets at the end of 2025, and its 15.9% return on equity that year was the highest of Singapore's three local banks, ahead of OCBC at 12.0% and UOB at 9.1%. This quarter tested that lead: DBS's markets trading income fell 65%, while UOB, which reported a day earlier, said its trading and investment income fell 33%. DBS's net interest margin of 1.87% was still above UOB's 1.68%, and the next dated change at the bank is Anthony Lim taking over as chairman on 1 January 2027.

*Related: [DBS Group posts record Q2 2026 net profit of S$3.08 billion as total income tops S$6 billion](https://www.theglobalbanker.com/dbs-group-q2-2026-record-net-profit-3-08-billion-total-income-6-billion/)*