On 8th May 2025, DBS announced their 1Q2025 financial results. Singapore Banks like DBS are good dividend paying stocks. Are you interested to know what is DBS profit before tax and net profit? If you have bought DBS like me during last month’s stock market crash, you might also be wondering how DBS share price reacted after announcing its 1Q2025 financial results. Did DBS share price go up or decline? I will look at DBS share price and current dividend yield further below as DBS makes up 1.16% of my stock portfolio.
In 1Q2025, DBS recorded a profit before tax of S$3.44 billion. Total income grew 6% year-on-year to S$5.91 billion driven by the growth in commercial book income and strong markets trading income. Commercial book total income up 4% year-on-year to S$5.54 billion. Despite the growth in total income, Net Profit was 2% lower year-on-year at S$2.90 billion. The decline in Net Profit was due to higher tax expenses from the implementation of the 15% global minimum tax.
If you compare DBS Net Profit with results from the previous quarter, net profit was 10% higher quarter on quarter.
Loans Performance
In this section, let us take a look at the performance of Loans. In 1Q2025, loans rose 2% quarter-on-quarter to S$435 billion. The increase was driven by non-trade corporate loans.
Deposits
Deposits rose 3% quarter-on-quarter due to CASA inflows. CASA stands for Current Account and Savings Account. As you can see from the above slide, CASA growth accelerated to S$9 billion.
Net Fee Income
On a quarter-on-quarter basis, commercial book net fee income rose 32%. On a year-on-year basis, Net fee income increased 22% as wealth management fees grew 35%. Loan-related fees rose 23%.
DBS Share Price and Dividend
Below is DBS historical dividend payouts.
Financial Year: 2024
Dividend Payout: 2.22 SGD per share (Interim: 162 cents, Final: 60 cents)
Financial Year: 2023
Dividend Payout: 1.75 SGD per share (Interim: 126 cents, Final: 49 cents)
Financial Year: 2022
Dividend Payout: 1.82 SGD per share (Interim: 99 cents, Final: 38 cents, Special: 45 cents)
Financial Year: 2021
Dividend Payout: 1.09 SGD per share (Interim: 76 cents, Final: 33 cents)
Financial Year: 2020
Dividend Payout: 0.78 SGD per share (Interim: 62 cents, Final: 16 cents)
Based on DBS share price of S$43.09 and FY2024 dividend payout of 2.22 SGD per share, this translates to a current dividend yield of 5.15%.
In 1Q2025, DBS declared an ordinary dividend of 60 cents per share and a Capital Return dividend of 15 cents per share was declared. The estimated dividend payable is $2,130 million.
What is capital return dividend? Capital return dividend is a form of payment made by a company to its shareholders, typically in the form of cash or assets. This type of dividend is not generated from the company’s profits, but rather from its capital. It can be issued when a company has excess capital that it wants to distribute to shareholders without affecting its day-to-day operations. Capital return dividends are not as common as regular dividends, which are paid out of the company’s earnings.