DBS Group Holdings Ltd (SGX: D05) — Rising Dividends
DBS is Singapore’s largest bank with over 12 million customers in 19 markets spanning Southeast Asia, Greater China and South Asia. In 2025’s third quarter (3Q2025), DBS raised its ordinary dividend to S$0.60 per share, an 11.1% increase year-over-year. The bank also gave a capital return dividend of S$0.15 per share, bringing the total dividend for the quarter...After years of increases, interest rates are starting to fall.
Singapore banks enjoyed a profitable period during the rate hikes.
They saw net interest margins increase, which drove profits to record highs.
As earnings rose, so did dividends, which benefited investors seeking income.
Now that the cycle is turning, a familiar question returns.
Will bank dividends hold up when rates fall?
At first glance, the concern is understandable.
Lower rates usually mean lower margins. But bank dividends still look attractive.
The key lies in understanding what now drives bank earnings beyond interest income alone.
