RHB research expects DBS Bank to declare a combined dividend per share (DPS) of 75 Singaporean cents for Q3 2025, comprising a standard interim payout of 60 cents and a 15-cent capital return.
However, the bank’s profitability is expected to slow down. RHB anticipates weaker overall earnings in the second half of 2025 compared to the first six months, reflecting a trend across major regional banks. A key challenge is the pressure on Net Interest Margin (NIM), stemming from a 60 basis point reduction in the SORA. Data suggests that deposit growth continues to outpace loan growth, mirroring the situation in Q2 2025.
Despite the headwinds on NIM and loan growth, RHB still forecasts a positive increase in Net Interest Income (NII) for the first nine months of the year, driven by overall asset growth from continuous deposit inflows. Furthermore, non-interest income (NoII) is likely to be supported by healthy wealth management fees due to improved investor sentiment, though this will be somewhat offset by softer fees related to loans.
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