DBS forecast to post softer Q3 earnings, maintain DPS at S$0.60

The reduction of the SORA could pressure the bank’s net interest margin.

DBS Bank is expected to declare a Q3 2025 interim distribution per share (DPS) of 60 Singaporean cents, and a capital return DPS of 15 Singaporean cents, according to estimates by RHB.

Singapore’s and Southeast Asia’s largest banks by asset size will likely book weaker earnings in the second half of 2025 compared to the first six months of the year, according to a 9 October 2025 report by RHB Group’s research team.

“Taking cue from system data, we think Q3 2025 trends for [net interest income (NII)] drivers could mirror that of Q2— deposit growth outplace loans year-to-date,” the report stated.

The reduction of the Singapore Overnight Rate Average (SORA) by circa 60 basis points (bps) could pressure DBS’ net interest margin (NIM).

“That said, despite pressure on NIM and loan growth, 9M NII could still chalk up positive growth on overall asset growth from continued deposit inflows— similar to H1 2025,” RHB Group wrote.

For non-interest income (NoII), wealth fees may stay healthy on improved investor sentiment, albeit partly offset by softer loan-related fees, it added.