Group net interest income was little changed as strong deposit momentum was sustained, and proactive hedging mitigated the impact of lower rates, the bank said in a statement. Fee income and treasury customer sales reached new highs led by wealth management, while markets trading income increased from lower funding cost and a more conducive trading environment.

Compared with a year ago, commercial book net fee income grew 22 per cent to a record S$1.36 billion. The increase was broad based and led by wealth management fees, which rose 31 per cent to S$796 million from growth in investment products and bancassurance, the firm continued. Loan-related fees grew 25 per cent to S$183 million due to increased deal activity. Commercial book other non-interest income of S$578 million rose 12 per cent from the previous year as treasury customers sales to wealth management and corporate customers grew 21 per cent to a new high.

The cost-income ratio was 40 per cent. Net profit of S$2.95 billion was 2 per cent lower due to the impact of the global minimum tax. Return on equity was 17.1 per cent and return on tangible equity was 18.9 per cent. Compared with the previous quarter, total income and net profit grew 3 per cent and 5 per cent respectively.

For the nine months, total income and profit before tax rose 5 per cent and 3 per cent to highs of S$17.6 billion and S$10.3 billion respectively. Net profit was 1 per cent lower due to higher tax expenses.

Asset quality was resilient, with the non-performing loans (NPL) ratio unchanged at 1.0 per cent and specific allowances at 15 basis points of loans for the third quarter and 13 basis points for the nine months.

The board declared a total dividend of S$75 cents per share for the third quarter, comprising an ordinary dividend of S$60 cents per share and a capital return dividend of S$15 cents per share. This brings the total dividend for the nine months to S$225 cents per share, comprising ordinary dividends of S$180 cents per share and capital return dividends of S$ 45 cents per share.

“We delivered a strong set of results for the third quarter with record pre-tax profit and a rate of return (ROE) above 17 per cent,” DBS CEO Tan Su Shan, said. “Total income reached a new high as we sustained the strong momentum in wealth management and deposit growth while mitigating external rate pressures through proactive balance sheet hedging. As we enter the coming year, we will continue to navigate the pressures of declining interest rates with nimble balance sheet management and our ability to capture structural opportunities across wealth management and institutional banking.”