On February 9, Singapore’s largest financial institution, DBS Group (DBSM.SI), unveiled its fourth-quarter earnings, revealing a 10% decrease in net profit to S$2.26 billion ($1.78 billion), falling short of analysts’ forecasts which estimated S$2.55 billion, according to LSEG data. The decline was attributed to a reduced net interest margin of 1.93%, down from 2.15% the previous year, influenced by lower domestic rates. The bank anticipates a slight dip in net profit for 2026 compared to 2025, driven by expectations for a Singapore overnight rate average of approximately 1.25% and potential Federal Reserve rate cuts. Despite these challenges, DBS’s wealth management assets under management reached a record S$488 billion, a 19% increase in constant currency for the quarter. Additionally, the bank announced a final ordinary dividend of S$0.66 per share and a capital return dividend of S$0.15 per share. Provisions for bad loans saw a substantial rise of 81% to S$415 million during the quarter, primarily due to real estate exposure. As DBS gears up for the earnings announcements of its peers, United Overseas Bank (UOBH.SI) and Oversea-Chinese Banking Corp (OCBC.SI), slated for February 24 and 25 respectively, it stands as the first Singaporean lender to unveil its results this season.