DBS Q4 Profit -10%: More Decline On The Way With Record High?

DBS Group shares slipped 1.9% intraday after Q4 net profit fell ~10% YoY to S$2.36B, missing consensus S$2.52B. Net interest margin compressed sharply to 2.34% (vs 2.77%), offsetting strong +13.5% fee income growth. While full-year profit dipped 3.2%, total dividends jumped 38% to S$3.06, supported by capital return payouts through 2027. After a ~60% rally since last April and a recent record high, investors are reassessing rate headwinds versus capital returns. Is this just post-earnings digestion—or the start of a deeper bank rotation?

My 2 cents: there is a state of flux in DBS viz. declining net interest margins (NIM) and robust shareholder returns' expectations. Therefore, while profit taking is natural after a massive rally, structural shifts in its revenue model and aggressive capital return policies are mitigating the risk of a full-scale  movement out of the stock. Further, sharply lower interest rates and a stronger SGD have begun compressing NIMs, with management expecting 2026 net profit to be slightly below the record 2025 levels. Also, the P/B ratio is now 2.4x as against historical 1.4x. Overall, it is natural for investors to consider UOB & OCBC which still have P/B in the range of 1.55x or below. But that is no cause for panic - if anything it is too much of a good run for DBS & a chance to di
avatarKel1
15:41
It is anyone guess. While the PE is still very high at 2.4x times. It is a quality share. ROS is still the highest amount the local banks. Will hold on to it and look to add more if it dips below 55
avatarTK360
14:00
DBS raised it's stake in China bank + trying to break into Malaysia banking industry, a positive sign of growth. Long term will benefit share holder I think.
avatarR3g3n
13:59
Will the price drop?
Will hold for juicy dividends
avatarKenThng
13:29
Think of the uncertainty ahead in this coming year, DBS shares might dip further after the dividend payout.
avatarJayaech
12:48
Even though DBS' Q4 profits missed forecast, it's share price pullback has been fairly modest. This suggests that most investors are still confident in the company's fundamentals. Moreover, DBS remains the local bank that is better positioned to withstand NIM pressures as compared to its peers. Will continue to hold as an income and growth stock in my portfolio and buy in when opportune. 
Time to load up on dbs with the dip!!!
The lowering of interest rates have affected the bank's income. I don't think this is a major decline and it'll still be a strong stock, especially in the long term
avatarECLC
09:13
If DBS dips further, it is good buy opportunity for long term investment with its strong dividend track record.
The recent earnings report from DBS Group has indeed sparked a notable reaction in the market, with shares slipping 1.9% intraday following the announcement of a 10% year-over-year (YoY) decline in Q4 net profit to S2.36billion, which fell short of the consensus estimate of $2.52 billion. This decline can be largely attributed to a sharp compression in the net interest margin (NIM) to 2.34%, down from 2.77% in the previous year. Despite a strong 13.5% growth in fee income, the bank's profitability was significantly impacted by the narrowing margin. The full-year profit also experienced a dip of 3.2%, which might raise concerns about the bank's ability to maintain its profitability in a challenging interest rate environment. However, it's worth noting that the total dividends for the year j
avatarhinda
02-09 17:05
watch out for bear trap. best thing we can do DCA 
avatarchaicka
02-09 16:51
Several stocks have been on an overvalued path (based on various indicators & flow in of foreign funds) since beginning of 2026, probably migration away from riskier markets to safer ones. Correction and/or revaluation is bound to come sooner or later. Keeping a clear mind and not be distracted by market noises/temptations is tough but fundamental towards good practice. 😁 
avatarkoolgal
02-09 14:00

DBS: Don't Let A Single Miss Mask A Great Business: Why Buffett's Wisdom Still Holds

🌟🌟🌟DBS $DBS(D05.SI)$  has just reported a 4th quarter 2025 net profit of SGD 2.36 billion, a 10% year on year decline that missed analyst estimates of SGD 2.57 billion.  While the headline miss on 9 February 2026 initially cooled market sentiment, sending shares down almost 2% in early trading to SGD 58.41, the result masked a record full year 2025 income of SGD 22.9 billion and a powerful 14% surge in wealth management fees. The Warren Buffett Lens: Value Over Volatility In the face of today's market jitters, it is vital to remember Warren Buffett's timeless wisdom : "Do not take yearly results too seriously, instead focus on 4 or 5 year averages." Warren Buffett has long argued that a single earnin
DBS: Don't Let A Single Miss Mask A Great Business: Why Buffett's Wisdom Still Holds
avatarchanelle
02-09 13:31
58.62
avatarL.Lim
02-09 11:59
Feels like the market is starting to cool off on the overexuberance. There were signs that things were not going to be as exciting in 2026, but further growth was likely fueled by investors worried that they did not enter while it was going up. Everyone has started to acknowledge that unbridled enthusiasm is illogical and that it is slowly getting too overvalued, especially with the earnings results that were just released. Nothing too worrying, but expectations for banks were that it will slow down and results would not be as spectacular as everyone saw in 2025, so no, it will likely hover around 60, with a much more gradual uptrend.
avatarBandyboi
02-09 10:48
Most likely 60$ is just a psychological barrier to break in 2026
avatarTM Unlimited
02-09 08:09
Results out
avatarMomento Mori
02-09 07:17
Probably the ceiling 
avatarJayaech
02-09 00:18
Vote A. DBS is a crowd favourite right now, but it's trading at a 'rich' 2.5x book value—above its usual average. With lower interest rates likely to squeeze margins (NIM) in 2026, a small pullback wouldn't be surprising. Would enter in more if there's a dip. Pullback to $57.5-58