DBS Group reported a 1% rise in second-quarter net profit to S$2.82 billion, exceeding market forecasts. The bank increased its ordinary dividend by 11% and introduced a special capital return, signaling strong shareholder value focus. However, return on equity dipped to 16.7%, and net interest margin eased to 2.05%, reflecting ongoing pressures on lending profitability.
In contrast, UOB posted a 6% drop in net profit to S$1.34 billion for the same quarter and revised down its full-year earnings outlook. The bank cited a softer interest rate environment and slower-than-expected growth in regional loan demand.
The diverging performance of Singapore’s two major lenders underscores the importance of strategic positioning in a changing economic climate, with digital transformation and fee-based income expected to be key growth drivers in the next 12 months.
The BankOpen Singapore Editorial Team consists of financial analysts, banking industry professionals, and experienced writers. We are dedicated to providing accurate, up-to-date, and practical insights to help readers navigate Singapore’s banking landscape and make informed financial decisions.