Net profit for both DBS and UOB slips in Q3

SINGAPORE: DBS Group Holdings and United Overseas Bank (UOB) both reported declines in their third-quarter net profits, as narrowing interest margins and global tax effects weighed on performance.

DBS’ net profit slipped 2% year-on-year to $2.95 billion for the nine months ended September 2025, according to its press release on Thursday. The bank attributed the dip mainly to the impact of the global minimum tax.

Despite the softer profit, DBS’ group net interest income rose 2% year-on-year to $10.9 billion, supported by strong deposit growth and balance sheet hedging. This came even as its net interest margin (NIM) narrowed by nine basis points to 2.04%.

The bank also reported a surge in its markets trading income, which climbed 60% year-on-year to $1.22 billion. DBS said the figure marked its second-highest level on record, driven by higher interest rates and robust equity derivative activities.

Meanwhile, UOB posted a sharper decline in earnings. The bank’s net profit fell 67% quarter-on-quarter and 16% year-on-year to $443 million in the third quarter, according to its latest financial statement.

UOB said the drop was mainly due to an 8% fall in net interest income to $2.3 billion, reflecting margin compression in a challenging rate environment.

For the first nine months of 2025, UOB’s net profit declined 28% year-on-year to $3.27 billion, coming off last year’s record high. The bank described the period as a “challenging environment marked by narrowing interest margins and market volatility.”

UOB’s non-interest income also fell 30% year-on-year to $518 million, due to lower trading and investment income compared to record highs last year. Net fee income eased 2% to $615 million, as growth in loan-related, wealth, and card activities was offset by higher card rewards expenses.

Total expenses were 6% lower at $1.5 billion, reflecting income moderation. However, total allowances increased, driven by higher general and specific provisions.

UOB’s Common Equity Tier 1 (CET1) ratio stood at 14.6%, slightly lower following its 2025 interim dividend payment.