Core Viewpoint - DBS Group Holdings Limited reported a slight increase in pre-tax profit to SGD 13.1 billion for the year ending December 31, 2025, despite challenges from the interest rate environment, with total income rising by 3% to SGD 22.9 billion [1] Group 1: Financial Performance - The net interest income increased marginally to SGD 14.5 billion, supported by effective balance sheet hedging and deposit growth, offsetting pressures from a significant drop in interest rates and a stronger Singapore dollar [1] - The group's net profit decreased by 3% to SGD 11 billion due to increased tax expenses resulting from the implementation of a global minimum tax rate of 15% [1] - The return on equity was reported at 16.2%, with the tangible return on equity reaching 17.8% [1] Group 2: Non-Interest Income - Non-interest income reached a record high, with fee income growing by 18% to SGD 4.9 billion, primarily driven by wealth management activities [2] - Market trading income surged by 49% to SGD 1.37 billion, the highest level since 2021, due to lower financing costs and a more favorable trading environment [2] - Total loans increased by 6% (SGD 24 billion) to SGD 445 billion, with deposits rising by SGD 64 billion (12%) to SGD 610 billion, marking the largest absolute growth in the group's history [2] Group 3: Asset Quality and Dividends - The overall non-performing loan ratio remained stable at 1.0%, despite a downgrade of a previously watch-listed real estate investment to non-performing status [3] - The board proposed a final ordinary share dividend of SGD 0.66 per share, an increase of SGD 0.06 from the previous period, with total dividends for the year amounting to SGD 3.06 per share, a 38% increase from last year [3] - The board plans to maintain a quarterly capital return dividend of SGD 0.15 per share for the fiscal years 2026 and 2027, barring unforeseen circumstances [3]

Group 1: Financial Performance - DBS Hong Kong's loans grew by 1% year-on-year to HKD 378 billion, while deposits increased by 10% to HKD 522 billion [1] - The non-performing loan (NPL) ratio rose from 1.57% to 2.16% year-on-year [1] - The net interest margin (NIM) increased from 1.8% to 1.82% last year [1] Group 2: Future Outlook - The CEO expects a downward trend in the NPL ratio this year, although no specific forecast was provided [1] - The bank anticipates a single-digit increase in loans for this year [1] - The CEO predicts the Federal Reserve will cut interest rates by 50 basis points this year, which may lead to a reduction in NIM by 10-12 basis points [1] Group 3: Sector-Specific Insights - The rise in NPL ratio was primarily attributed to one private enterprise, with the bank's exposure to mainland loans reduced to 7%, of which 5% are state-owned enterprises [1] - DBS Hong Kong maintains a cautious approach towards commercial real estate (CRE) loans, which have remained around 27% of the portfolio, focusing on strong blue-chip companies and investment-grade firms [1] - The bank is actively seeking quality clients while ensuring adequate provisions for potential risks in the CRE sector [1] Group 4: Support for SMEs - DBS Hong Kong continues to support the development of small and medium-sized enterprises (SMEs) in Hong Kong, despite anticipated pressures on their operations this year [2] - The challenges for SMEs are attributed to local consumers shopping in mainland China and a downgrade in spending by mainland tourists [2] - A gradual balance is expected as commercial rents decrease, but it may take several years for SMEs' operating conditions to improve [2]

Monetary Supply - The broad money supply (M2) increased by 1.1% to 82.48 billion MOP, driven by a 3.2% rise in M1 due to a 4.5% increase in demand deposits, despite a 0.2% decrease in currency in circulation [2] - The composition of M2 by currency shows that the shares of MOP, HKD, RMB, and USD are 32.1%, 46.4%, 6.7%, and 12.8% respectively [2] Deposits - Total deposits in the banking system rose by 2.6% to 139.73 billion MOP, with resident deposits increasing by 1.1% to 80.38 billion MOP and non-resident deposits up by 6.5% to 37.39 billion MOP [3] - The public sector's deposits in the banking system increased by 1.6% to 21.97 billion MOP, with the currency composition being 18.8% MOP, 46.7% HKD, 8.3% RMB, and 24.4% USD [3] Loans - Local private sector loans increased by 2.8% to 51.26 billion MOP, with significant quarterly increases in loans to the "Food and Beverage and Hotel" sector (34.3%) and "Water, Electricity, and Gas Production and Supply" sector (18.6%) [4] - Total loans in the banking system rose by 4.2% to 103.52 billion MOP, with the currency composition being 21.4% MOP, 44.1% HKD, 11.2% RMB, and 20.0% USD [4] Operating Ratios - The loan-to-deposit ratio for local residents increased from 49.3% at the end of May to 50.1% at the end of June 2025, while the overall loan-to-deposit ratio, including non-residents, rose from 73.0% to 74.1% [5] - The non-performing loan ratio decreased to 5.4% [5]

Group 1: Monetary Supply and Deposits - The broad money supply in Macau increased in May 2025, with M1 rising by 2.4% and M2 increasing by 1.2% to 815.7 billion MOP [1] - Resident deposits rose by 1.3% to 794.7 billion MOP, while non-resident deposits increased by 0.4% to 351.0 billion MOP [2] - The total deposits in the banking system increased by 1.4% to 1,361.7 billion MOP, with the composition of deposits being 19.2% MOP, 47.0% HKD, 8.7% RMB, and 23.4% USD [2] Group 2: Loans - Local private sector loans decreased by 1.4% to 498.5 billion MOP, and external sector loans fell by 7.6% to 495.2 billion MOP [3] - The total private sector loans declined by 4.6% to 993.7 billion MOP, with the currency composition being 22.3% MOP, 43.8% HKD, 8.8% RMB, and 21.8% USD [3] Group 3: Banking Operations - As of the end of May 2025, the loan-to-deposit ratio for local residents dropped to 49.3%, while the overall loan-to-deposit ratio, including non-residents, decreased to 73.0% [4] - The liquidity ratios for one month and three months stood at 65.7% and 57.9%, respectively [4] - The non-performing loan ratio increased to 5.7% due to a decline in total loans [4]

Monetary Supply - The broad money supply M2 in Macau increased by 1.3% month-on-month to 810.6 billion MOP as of March 2025, with M1 and quasi-monetary liabilities contributing to this growth [1][2] - M1 decreased by 1.8% in circulation but saw a rise of 10.5% in demand deposits, resulting in a month-on-month increase of 6.8% [2] - Year-on-year comparisons show M1 and M2 rising by 11.3% and 8.8% respectively [2] Deposits - Resident deposits rose by 1.3% to 789 billion MOP, while non-resident deposits increased by 9.1% to 360.1 billion MOP [3] - Total deposits in the banking system increased by 3.1% month-on-month to 1,360.2 billion MOP, with the composition of deposits being 19.1% MOP, 47.2% HKD, 7.8% RMB, and 24.0% USD [3] Loans - Local private sector loans decreased by 0.4% to 511.3 billion MOP, with specific sectors like transportation and hospitality seeing slight increases, while wholesale, retail, and construction sectors experienced declines [4] - Total private sector loans fell by 1.9% month-on-month to 1,024.2 billion MOP, with the currency composition being 21.9% MOP, 43.4% HKD, 11.6% RMB, and 20.3% USD [4] Operating Ratios - As of March 2025, the loan-to-deposit ratio for local residents decreased to 51.1% from 51.9% in February, while the overall loan-to-deposit ratio, including non-residents, fell to 75.3% from 79.1% [5] - The ratio of liquid assets to liabilities stood at 69.5% for one month and 56.6% for three months, with a non-performing loan ratio remaining stable at 5.5% [5]