DBS Reports 2% Q1 Net Profit Decline Amid Global Tax Changes

DBS, Singapore's largest bank, reported a 2% year-on-year decline in first-quarter net profit to S$2.9 billion, marking its first quarterly drop since 2022, primarily due to higher tax expenses from the newly implemented 15% global minimum tax for multinationals. Despite the profit dip, the bank achieved record pre-tax profits and total income growth, driven by increases in commercial book and market trading income. Macroeconomic risks and market volatility have intensified amid escalating trade tensions, especially from new US tariffs, prompting DBS to boost its general allowance reserves by S$205 million as a precaution. The bank's CEO, Tan Su Shan, highlighted both the challenges and opportunities arising from these global economic shifts, emphasizing a strategy of prudent risk management and adaptability. Dividend payouts for the quarter increased to a total of 75 cents per share. DBS anticipates net profit to remain below 2024 levels throughout the rest of 2025 due to the ongoing impact of the global minimum tax.