DBS Group, Singapore's largest bank, reported a 1% rise in first-quarter net profit, beating analyst forecasts as strong wealth management performance drove earnings.
Net profit for January-March rose to S$2.93 billion from S$2.90 billion a year earlier, topping the mean estimate of S$2.83 billion from analysts.
Wealth management fees hit a record S$907 million, driven by higher investment product sales and bancassurance. CEO Tan Su Shan said rate headwinds to net interest income are expected to be "largely mitigated" assuming current rates hold, while non-interest income could see upside if market sentiment improves.
However, the bank's net interest margin-a key profitability gauge-dropped to 1.89% from 2.12% a year ago.
DBS kept its 2026 outlook largely unchanged. On geopolitical risks, Tan said stress tests indicate the credit portfolio remains sound despite uncertainty from the Iran war and potential second-order effects.
The bank declared an interim dividend of 66 Singapore cents per share, up from 60 cents a year ago. A capital return dividend of 15 cents was unchanged.
DBS is the first Singapore lender to report this earnings season, with UOB and OCBC scheduled for May 7 and 8.