DBS Q1 profit may fall to $2.2b on margin pressure and record wealth fees

Wealth fees could grow by around 10.5% year-on-year, analysts said.

DBS is expected to report a profit after tax and minority interests (PATMI) of S$2.8b (over US$2.2b) in Q1 2026, higher by 28% compared to Q4 2025 but lower by 4% compared to Q1 2025, according to estimates by CGS International (CGSI).

CGSI analysts Tay Wee Kuang and Lim Siew Khee believe that DBS will log a 3 basis point (bp) decline in net interest margin (NIM) for the quarter, at 1.90%.

“However, the lower interest rates in March 2026 could also suggest potentially stronger deposits inflow into Singapore and Hong Kong as a result of flight to safety from the Middle East,” Tay and Lim wrote. 

This could support or raise net interest income (NII), they said, mitigating the impact of lower NIMs.Loan growth is expected to remain stable at circa 3.3% year-on-year (YoY), a rate unchanged from Q4 2025.

Wealth fees could reach a record high in Q1 of around S$800m, Tay and Lim estimated. This would mean a 10.5% YoY growth, or 24% higher than in Q4 2025.

The ongoing Middle East conflict could dampen global macroeconomic outlook that could lead to pre-emptive provisioning similar to when the US announced reciprocal tariffs in April 2025, the report said.

“However, we believe DBS would not recognise higher general provisions as it does not have material direct exposure to the Middle East, and second-order impact on the global economy have yet to materialise,” Tay and Lim wrote.