DBS Group Holdings Ltd

Okay, good morning, everybody, and a very warm welcome to DBS's second quarter 2026 financial results briefing. This morning, we announced second quarter net profit rose 9% to a record $3.08 billion as quarterly total income crossed $6 billion for the first time. With us, we have our CEO, Tan Tushan, and our CFO, Ching Tok Hui, to tell us more. So without further ado, Tok Hui, please.

Good morning, everyone. So we delivered a record performance in the second quarter. Net profit rose 9% from a year ago to reach a new high of $3.08 billion, while return on equity was 17.9% and return on tangible equity was 19.6%. Total income grew 6% and crossed $6 billion for the first time. The increase was driven by higher non-interest income underpinned by the structural growth of our customer franchise. In particular, robust wealth management momentum was maintained. Fee income was near record levels and treasury customer sales reached a new high. We also mitigated significant interest rate headwinds with balance sheet growth and proactive hedging. Meanwhile, markets trading income strengthened as we benefited from lower funding costs and capitalised on volatile markets. For the first half, net profit rose 5% to a record $6.01 billion. Total income increased 3% to a new high as record free income and treasury customer sales more than offset lower net interest income. Asset quality was resilient. Total non-performing assets were little changed from the previous quarter as new MPA formation was offset by repayments and write-offs. The MPL ratio was stable at 1.0%, while specific allowances remained below the through-the-cycle average at 16 basis points of loans for the second quarter and 15 basis points for the first half. Allowance coverage was 130% and 196% after considering collateral. Capital remained strong. The CET1 ratio was 16.6% on a transitional basis and 14.6% on a fully phased-in basis. The Board declared a total dividend of $0.81 per share for the second quarter, comprising a $0.66 ordinary dividend and a $0.15 capital return dividend. Next slide. Second quarter year-on-year performance. For the second quarter, net profit rose 9% from a year ago to a record $3.08 billion. Group net interest income declined 2% to $3.58 billion as strong loan and deposit growth together with proactive hedging mitigated the impact of lower interest rates. Fee income rose 25% or $293 million to $1.46 billion led by wealth management. Commercial book other non-interest income grew 30% or $159 million to a new high of $681 million driven by record treasury customer sales. Markets trading income strengthened 12% or $51 million to $469 million benefiting from volatile markets and lower funding costs. Expenses increased 3% or $77 million to $2.35 billion from higher staff costs. The cost-to-income ratio was 39%. Profit before allowances rose 8% to a record $3.75 billion. Total allowances fell 15% or $20 million to $113 million. Specific allowances were $188 million or 16 basis points of loans, remaining below the historical cycle average. Next slide, second quarter, quarter-on-quarter performance. Compared to the previous quarter, net profit was up 5%. Group Net Interest Income rose 2% as balance sheet growth more than offset the two basis points decline in net interest margin. Fee income eased 1% from the previous record quarter. Commercial book other non-interest income grew 13% or $79 million from higher treasury customer sales. Market trading income increased 21% or $80 million driven by equity derivatives. Expenses rose 2% of $49 million led by higher staff and revenue-related costs. Total allowances declined 41% of $77 million as general allowances were written back. The general allowance right back this quarter was mainly due to the repayment of nearly $1 billion in weaker credit exposures as well as a shift away from higher-risk consumer segments. Half-year performance For the first half, net profit rose 5% to a new high of $6.01 billion. Total income grew 3% to a record $12.0 billion. Group net interest income declined 3% to $7.08 billion as hedging and balance sheet growth cushioned the impact of lower interest rates. Fee income rose 20% of $500 million to $2.94 billion, led by record wealth management fees. Transaction services fees also reached a new high. Commercial books are the non-interest income grew 20% or $213 million to $1.28 billion, driven by higher treasury customer sales to both wealth-set management and corporate customers. Customers' trading income increased 10% or $77 million to $858 million. Expenses rose 4% or $165 million to $4.65 billion, led by high staff costs. Profit before allowances grew 3% to a record $7.39 billion. Total allowances fell 34% or $155 million, mainly due to the prudent general allowance overlay built a year ago. Specific allowances remained below the true cycle averages. Next slide, net interest income. Compared to the previous quarter, Group Net Interest Income rose 2% to $3.58 billion. Group Net Interest Income declined 2 basis points to 1.87% as interest rates were broadly stable during the quarter. The impact was more than offset by balance sheet growth. Compared to the previous year, Group Net Interest Income was 2% or $67 million lower. The average interest rates at the bottom of the slide highlight the extent of the rate decline over the past year. In particular, Singapore interest rates, represented by SORA, fell about 100 basis points year-on-year, almost halving from a year ago. Our proactive hedging strategy, as well as strong deposit and loan growth, helped mitigate a significant part of the rate headwinds. Our markets trading business also benefited from lower funding cost deposits. During the quarter, total deposits grew 1% of $7 billion in constant currency terms to $638 billion. SingDollar Casa inflows rose $5 billion, led by retail inflows, while fixed deposits increased $4 billion from institutional banking customers. These flows were partly offset by a $2 billion decline in foreign currency Casa as customers deployed more funds into investments. For the first half, deposits rose 4% or $26 billion, with growth across both CASA and fixed deposits. Liquidity remained healthy. The Group's liquidity coverage ratio was 142% and net stable funding ratio was 113%, both comfortably above regulatory requirements. Loans During the quarter, gross loans reached $475 billion as growth accelerated to 3% or $15 billion in constant currency terms. The increase was led by non-trade corporate loans as underlying demand remained healthy and was supplemented by higher deal activity. For the first half, gross loans grew 5% or $24 billion led by non-trade corporate lending. Fee Income growth fee income for the second quarter rose 22% from a year ago to $1.70 billion. The growth was led by wealth management fees which increased 42% to a record from higher customer investment activity and growth in AUM. Transaction service fees and investment banking fees were also higher. Compared to the previous quarter's record, growth fee income was little changed. For the first half, gross fee income rose 18% to a record $3.41 billion, led by new highs in wealth management and transaction service fees. Investment banking and cut fees also increased. Customer-driven non-interest income. Customer-driven non-interest income comprises fee income and treasury customer sales, which are reported as separate P&L lines due to accounting treatment but are both driven by customer demand for financial solutions and should be viewed together. For the second quarter, customer-driven non-interest income rose 27% from a year ago to $2.14 billion. The growth was led by wealth management, which drove a 25% in net fee income to $1.46 billion and a 33% rise in Treasury customer sales to $678 million. Institutional banking also recorded double-digit growth amid strong demand for financial solutions from financial institutions and institutional investors. For the first half, customer-driven non-interest income rose 20% to $4.21 billion, driven by new highs in both net free income and treasury customer sales. Overall, the record performance of our customer-driven non-interest income reflects the structural growth of our customer franchise in both wealth and institutional clients segments. The wealth segment. The wealth segment comprising treasures, treasures, private client and private bank has been a key growth driver. For the second quarter, total income grew 26% year-on-year to a record $1.71 billion led by a 49% increase in non-interest income amid higher customer investment activity. Wealth AUM reached a record $516 billion, up 17% year-on-year and 5% quarter-on-quarter, while net new money remained robust at $11 billion for the quarter. For the first half, wealth segment total income rose 16% to a record $3.30 billion as non-interest income increased 33%. Expenses were tightly managed with second quarter expenses only rising 3% from a year ago to $2.35 billion. The cost-to-income ratio improved to 39%. Compared to the previous quarter, expenses were up 2%. For the first half, expenses were well managed and rose 4% to $4.65 billion. Next slide, Hong Kong. Hong Kong's first half net profit rose 23% in constant currency terms from a year ago to a record $1.03 billion. Total income increased 14% to a new high of $1.95 billion. Net interest income rose 16% to $1.13 billion driven by strong deposit growth of 9% and a 15 basis point expansion in net interest margin. Fee income grew 32% to $641 million led by Wealth Management. Commercial book gardener interest income increased 12% of $13 million to $168 million driven by higher Treasury customer sales. Markets trading income declined $15 million to $48 million. Expenses rose 4% to $641 million while cost-to-income ratio improved to 33%. Total Allowances fell $22 million to $84 million. Non-Performing Assets Asset quality remained resilient. Non-Performing Assets were little changed from the previous quarter at $4.76 billion as new MPA formation remained low and was largely offset by repayments and write-offs. The MPL's ratio was stable at 1.0%. Specific Allowances Second quarter specific allowances amounted to $188 million or 16 basis points of loans, remaining below the historical cycle average. For the first half, specific allowances were $345 million or 15 basis points of loans. General Allowances General allowances of $42 million were written back for the first half due to repayments of weaker credits and lower exposure to higher risk consumer segments. As of end June, total allowance reserves stood at $6.20 billion, comprising $2.38 billion in specific allowance reserves and $3.81 billion in general allowance reserves. The general provisions overlay was stable at $2.4 billion. Allowance coverage was 130% and 196% after considering collateral. Capital The reported CET1 ratio declined 0.3 percentage points from the previous quarter to 16.6%. The movement was driven by capital return initiatives and an increase in risk-weighted assets. The pro forma ratio on a fully based-in basis decreased 2.2 percentage points to 14.6%. The leverage ratio was 5.8%, well above the regulatory minimum of 3%. Dividends The Board declared a total dividend of $0.81 per share for the second quarter, comprising an ordinary dividend of $0.66 and a capital return dividend of $0.15. Based on yesterday's closing share price and assuming that total dividends are held at $0.81 per quarter, the annualised dividend yield is 4.4%. In summary We delivered a strong set of results for the first half with total income and net profit reaching new highs. The results were anchored by continued momentum in wealth management where fees reached a new high and wealth segment AUM crossed the half trillion dollar mark. The strong performance reflects our ability to capture structural growth in wealth management and institutional flows, our proactive balance sheet management as well as robust trading performance. While the macro environment continues to evolve, our strong balance sheet, sound asset quality, prudent allowance reserves and healthy capital position provide a solid foundation for continued growth and sustainable shareholder returns. I'll now hand you over to Sushant.

Thank you, Sokhui.