DBS Q3 profit forecast to fall 3.2% to $2.86b on lower interest income

The bank's net interest income is expected to fall 2.4% YoY to $3.49b, said CGSI.

DBS Group's net profit is expected to decline 3.2% year-on-year (YoY) to $2.86b in the third quarter (Q3), as lower interest income and higher provisions weigh on earnings, according to CGS International (CGSI).

The forecast also represents a 7.1% decline from the previous quarter, partly due to record profits recorded in Q2 and Q3 2025.

CGSI expects the bank's net interest income to fall 2.4% YoY to $3.49b, as returns from lending continue to narrow.

Its net interest margin, which measures the difference between interest earned on loans and interest paid on deposits, is expected to decline to 1.86% from 1.96% a year earlier.

Nevertheless, DBS likely recorded loan growth of 1.5% quarter-on-quarter in Q3, which is expected to partially mitigate the impact of continued net interest margin decline, the brokerage said.

CGSI said non-interest income is forecast to rise 2.9% YoY to $2.42b, supported by growth in wealth management fees.

These fees are expected to increase 7.4% to $855m as the bank continues to attract new client funds.

However, the brokerage expects income from customer treasury transactions and market trading to decline 11.9% and 14.7%, respectively, from the previous quarter's record levels.

For the full year, CGSI expects DBS to record a net profit of $11.45b in 2026, rising to $12.27b in 2027.