Quick Read
- DBS Group Holdings’ shares dropped by as much as 1.9% on February 9, 2026.
- The bank reported a 10% fall in Q4 net profit to S$2.26 billion, missing analyst forecasts of S$2.59 billion.
- DBS shares had climbed over 5% earlier in the year, peaking at S$60 on January 29.
- The earnings report was closely watched for hints on net interest margin and capital return plans.
- Singapore’s Budget 2026 is expected on February 12, adding to market focus.
SINGAPORE (Azat TV) – DBS Group Holdings Ltd, Singapore’s largest bank, experienced a notable drop in its share price on Monday, February 9, 2026, after reporting fourth-quarter net profit that fell short of analyst expectations. The bank’s shares declined by as much as 1.9% during early trading, marking a significant shift after a period of strong performance earlier in the year.
The reported net profit for the fourth quarter of 2025 stood at S$2.26 billion, representing a 10% decrease compared to the previous year. This figure significantly missed the S$2.59 billion consensus forecast from a Bloomberg survey of six analysts, triggering investor concern. The stock, traded on the Singapore Exchange (SGX: D05), closed Friday at S$59.30 before the announcement and dropped to S$58.18 on Monday morning, paring some losses to S$58.63 by midday.
DBS Q4 Earnings Disappoint Investors
The anticipation surrounding DBS’s full-year 2025 results was high, with traders closely monitoring for indications regarding the bank’s net interest margin and its capital return program. Ahead of the February 9 earnings release, the stock had already slipped by 0.6% on Friday, reflecting broader market softening and a regional retreat in Asia.
DBS has historically relied heavily on interest income and wealth management fees. However, with the expected fading of high interest rate tailwinds, the latest earnings report carried increased weight. Investors were keen to see how the bank would navigate a potentially changing interest rate environment, which could impact its ability to materially grow income.
Despite the Q4 shortfall, DBS had previously committed to an S$8 billion capital return program through 2027 and projected its 2026 net profit to be just under 2025 levels, according to statements made in November.
Market Reaction and DBS Share Performance
The drop in DBS shares on Monday effectively halted a rally that had seen the stock climb more than 5% since the beginning of the year, peaking at S$60 on January 29. This recent performance had positioned DBS as a robust choice for investors, often cited as a blue-chip company for its stability, consistent profitability, and good dividend payouts.
Market analysts often recommend DBS for its easy-to-understand business model, strong management, and growth potential in fast-growing markets like China, India, and Indonesia. However, its valuation has been a point of discussion, with its price-to-book (P/B) ratio reaching around 2.5, a 10-year high, which some analysts believe could limit its upside potential.
The broader market also experienced a dip, with Singapore’s benchmark index slipping 0.8% on Friday, as investors engaged in ‘de-risking and locking in gains’ following a tech slump across Asia, as noted by eToro’s Zavier Wong.
Broader Economic Headwinds and DBS Outlook
The banking sector in Singapore is facing a packed schedule of financial disclosures and macroeconomic events. Following DBS’s earnings, the Singapore Budget 2026 is slated for release on February 12, with economists anticipating a tighter fiscal package compared to the previous year. DBS economist Chua Han Teng highlighted the increasing pressure to invest in technology and innovation amidst narrowing fiscal space.
Other major banks, UOB and OCBC, are also set to report their full-year and fourth-quarter 2025 results later in February, providing further insights into the health of Singapore’s financial sector. These reports, combined with the upcoming budget, will offer a comprehensive view of the economic landscape and the challenges and opportunities facing major financial institutions.
The unexpected fall in DBS’s Q4 profit, despite its strong market position and prior rally, underscores the sensitivity of even established financial institutions to shifting economic forecasts and investor expectations, particularly as the era of high interest rate tailwinds appears to be drawing to a close.