Trader’s Edge wrote a post · Nov 5 21:58

DBS 3Q25 Earnings: Wealth Management Play Helps Beat Expectations

Executive Summary

DBS share price jumped by 2.8% after announcing that the total income came in at S$5.93 billion, showing a 3.1% YoY growth. This growth was mostly driven by strong performance in its wealth management business.

Net income S$2.95 billion was 2.4% lower YoY but still beat analysts estimates of S$2.79 billion.

Net interest income (NII) from DBS commercial books fell by 6.3% would decline due to falling interest rates and a strong Singapore dollar. But this was widely expected

Wealth management fees of S$796 million showed a strong growth of 31% YoY and will continue to remain one of the core focus of the bank going forward. According to CEO Tan Su Shan, staying nimble with the bank's balance sheet and having the ability to capture structural opportunities across wealth and institutional banking will be the focus in 2026

Technicals

$DBS (D05.SG)$ remains in a strong upwards trend since April this year and is also now within an ascending channel configuration. As long as price continues to hold above 53.20 support, a further push higher towards resistance at 57.40 can be expected and possibly even 60.15. Price is also holding above both short (21) and long (55) EMAs showing that bullish momentum is strong as well. Alternatively, breaking below 53.20 support, price may retrace lower towards next support at 51.80.

Quantitative

1. $DBS (D05.SG)$ share price has shaped a fresh all-time historical high at $55.10 per share. Strong performance from its wealth management business is expected to remain as the key driving factor going forward. From a YoY basis, Q2 data showed a 25.3% growth and for the latest Q3 earnings we see a 31% growth. Analysts are also now expecting yet another double digit growth in the year ahead.

2. Quarter on quarter, fees collected from commission and fees segment grew strongly by 16.3%. This will continue to offset the squeeze in net interest income due to further expected rate cuts and current Singapore Overnight Rate Average (SORA) levels.

Qualitative

1. Quoting bank's CEO Tan Su Shan, she pointed out that for the year ahead, the bank

"will continue to navigate declining rates in the coming year with nimble balance sheet management and ability to capture structural opportunities across wealth management and institutional banking"

2. Singapore banks as a sector will stand to gain from supply-chain shifts. With the upcoming Special Economic Zone (SEZ) in Johor, companies and investors will want access to both major and local banks within the region for financing. DBS is well placed to compete for cross-border business, especially from the Greater China region, which provides an estimated 24% of its revenue.

3. DBS's strong wealth management business will become one of the main revenue drivers. DBS continues to lead its peers in this business segment. Further, DBS and peers will be well positioned to capture any drop off private banking clients from UBS or even HSBC as FINMA continues to tighten scrutiny on UBS and HSBC continues with restructuring.

Valuation and Risks

Valuation and Performance

1. DBS continues to outperform STI from a YTD basis with outperformance starting strongly after April 2025 lows. Compared to its peers, DBS maintains its leadership. OCBC lags behind and underperforms the STI but still has room for catch up. UOB is the worst performer coming in with a negative YTD returns following their latest earnings announcement.

Risks

1. Pace of US Fed Interest Rate Cuts To Erode Pretax Profits

A study by bloomberg states that pretax profit among Singapore banks could possibly shrink by a collective S$1.5 billion. This comes after pretax profits slipping about 1.7% YoY (1H2025 vs 1H2024). A 25bps movement in the Fed funds rate could cut nearly S$62.5 million from NIIM.

2. Global Macroeconomic Uncertainty and Deterioration in Credit Quality

In MAS' recent Financial Stability Review 2025 report, domestically systemically important banks are found to have strong capital buffers and ample provisions to withstand severe macrofinancial shocks during adverse stress test scenarios

Prepared by:

Moomoo Singapore
Isaac Lim CMT, CFTe
Chief Market Strategist

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