A disciplined, interconnected strategy is enabling DBS Group to convert macroeconomic pressure into growth momentum. In the first half of 2025, the bank delivered record results despite falling interest rates, adverse currency movements and new global tax rules. By strengthening its financial core, deepening client integration across markets and embedding digital capabilities into everyday operations, DBS has positioned itself to scale regionally and capture emerging revenue streams. Tan Su Shan, group chief executive officer (CEO) of DBS, and Chng Sok Hui, chief financial officer, said the results reflected a model designed to absorb shocks and deliver across DBS’s regional and digital platforms. Chng attributed performance to agile balance sheet management, deposit growth and the ability to capture market opportunities despite sharp rate declines in Singapore and Hong Kong, adverse currency effects and the implementation of the global minimum tax. In the second quarter, DBS reported a profit before tax of SGD 3.39 billion ($2.5 billion), a 5% increase from the previous year. Net profit rose 1% on the year to SGD 2.82 billion ($2.1 billion), while return on equity held stable at 17.0%. The ability to preserve net interest income (NII) despite a narrowing net interest margin (NIM) highlighted the bank’s operational discipline and income diversification. Resilience as the platform for growth and adaptability DBS’s priority was strengthening its financial core to absorb rate shocks and currency volatility while sustaining operational capacity. “We had a solid second quarter despite what I would call a perfect storm,” said Tan. “There was a plunge in the Singapore Overnight Rate Average, Hong Kong Interbank Offered Rate, a strong SGD and geopolitical headwinds. The team delivered resilient financial numbers.” Resilience was built through robust capital and liquidity buffers, supported by cybersecurity, stress testing and automation. NII remained stable on a quarterly basis and above 2024 levels, driven by deposit growth, floating-rate exposure and active hedging. Surplus liquidity was deployed into high-quality assets, while the current and savings account (CASA) ratio improved to 52% and the non-performing loan ratio to 1.0%. The Common Equity Tier 1 capital ratio stood at 17.0%, ensuring the bank can move from defensive positioning to targeted expansion. By securing this financial base, DBS has created the flexibility to deepen client integration and drive growth initiatives without compromising its risk profile. Driving structural growth through disciplined execution Tan described DBS’s 2025 performance as part of an ongoing transformation. “When I was first announced as CEO, I said we would focus on structural growth. That has not changed.” She cited wealth management, transaction banking and financial sponsors as examples of organic growth verticals. She also emphasised that much of the past two quarters was spent building resilience, noting this included balance sheet, operational and technology dimensions. These advances, combined with innovation for clients, allow DBS to adapt quickly to regulatory and market changes while staying compliant. The bank’s growth plan is built around connecting client activity, treasury capabilities and technology into a single operating platform capable of generating consistent income across market cycles. Integrating treasury and client flows to unlock income growth Central to this is the bank’s One Bank approach, which connects corporate, wealth and other business units across geographies so they operate as a single platform. This integration closes operational gaps between countries, segments and teams, enabling the delivery of fully connected client solutions. “One of our priorities was to bring the One Bank together by managing the white space between countries, segments and business units. That is now working well,” said Tan. This connectivity has driven growth in lending, capital markets, structuring and advisory while also strengthening treasury flows. Tan stressed the need to prioritise NII over NIM. “As interest rates fall, if your volume grows, your NII grows. That mitigates margin compression,” she said, adding that growth in wealth management, global transaction services and other fee-based activities sustains income as spreads narrow. Treasury operations now use digital execution tools to provide clients with real-time hedging in currency and rate markets, offering flexibility through swaps, forward lock-ins and automated orders. These capabilities not only help clients manage risk but also generate consistent flow income for DBS. This integration between treasury and client activity has supported lending growth in constant-currency terms acrgoss sectors such as data centres, logistics, private assets and real estate, alongside higher non-trade corporate lending and stronger institutional engagement. Wealth management also performed strongly, with fees up 30% in the second quarter. Net new money reached SGD 9 billion ($6.7 billion), lifting assets under management to SGD 442 billion ($327.3 billion). This was supported by demand for estate planning and intergenerational wealth services. “The key is that net new money and assets under management must keep growing. That is how we achieve structural growth,” said Tan. Embedding digital infrastructure into the growth engine The scale and trust generated through integration are enabling DBS to expand its role in digital assets. “We want to be the picks and shovels of this ecosystem. Whether you want to issue, trade, custody or bank, we want to be the trusted partner,” said Tan. The DBS Digital Exchange (DDEx), the bank’s regulated platform for digital assets, enables clients to transact in a secure environment. DBS Token Services, which combines tokenised deposits with smart contract technology, provides real-time settlement through programmable money, allowing funds to move instantly with embedded conditions for automation, compliance and control. A partnership with Ant Group supports round the clock liquidity across currencies, and DBS continues to participate in digital currency pilots in Singapore and Hong Kong. These initiatives have translated into tangible results, including rising trading volumes on DDEx in the first half of the year. By embedding these capabilities into its core operations, the bank ensures that digital innovation supports commercial priorities and strengthens revenue resilience. Positioning DBS for sustained regional and digital leadership DBS’s strength lies in the interplay between resilience, client integration and digital innovation. A fortified balance sheet underpins the growth of client flows, which in turn expand the adoption base for digital platforms. By aligning balance sheet strength with flow-based income generation and programmable banking capabilities, DBS is safeguarding returns while shaping capital formation in emerging Asian markets. This integrated model places the bank in a strong position to scale regionally, embed itself more deeply in client ecosystems and lead the next stage of digital transformation in financial services.
