Three of Temasek's most substantial listed investments are found on the local Singapore Exchange.

As of March 31, 2026, the sovereign investor held significant positions in DBS Group Holdings Ltd (SGX: D05), Singtel Limited (SGX: Z74), and ST Engineering Ltd (SGX: S63), with a combined value of approximately S$104.7 billion.

All three entities have recently announced their financial results, each revealing distinct sources of earnings growth.

It is important to note the reporting periods: DBS and ST Engineering released their Q1 2026 figures, while Singtel reported its full-year results for the period ending March 31, 2026. As these periods are not aligned, growth rates should not be directly compared across the three companies.

DBS Group's Growth Amid Declining Interest Rates

Temasek holds a 28% stake in DBS, valued at roughly S$45.3 billion based on the bank's market capitalisation of S$161.8 billion, making it the largest holding of the three.

For Q1 2026, DBS reported a record total income of S$5.95 billion, marking a 1% year-on-year increase. This headline figure, however, conceals a mixed performance beneath the surface.

Net interest income fell by 5% to S$3.49 billion, as the net interest margin narrowed by 23 basis points to 1.89% due to declining benchmark rates. This was partially offset by a 4% year-on-year growth in customer loans.

The growth driver was non-interest income, which surged 10% to S$2.45 billion, propelled by record wealth management fees of S$907 million and record treasury customer sales of S$592 million. Net fee and commission income jumped 16% to S$1.48 billion.

Despite a 4% rise in expenses, net profit attributable to shareholders edged up 1% to S$2.93 billion. The board declared a Q1 dividend of S$0.81 per share, comprising an ordinary dividend of S$0.66 and a Capital Return dividend of S$0.15. Investors are advised to consider these components separately.

Singtel's Reliance on International Operations

Temasek's 52% stake in Singtel is valued at approximately S$42.2 billion. For the full year 2026, group revenue remained stable at S$14.3 billion, while underlying net profit grew 12% to S$2.8 billion.

This performance was driven by its overseas units. The NCS division saw a 34% surge in operating profit to S$340 million, and Optus in Australia reported a 23% increase in operating profit to A$550 million.

In contrast, operating profit from the Singapore operations declined by 4.6% to S$795 million due to intense mobile competition. Contributions from regional associates like Airtel and AIS also grew.

Singtel declared a total ordinary dividend of S$0.185 per share for FY2026, split into a core dividend and a value realisation dividend funded by asset sales, including a stake in Airtel.

Analyzing ST Engineering's Order Book

Temasek's 51% stake in ST Engineering is worth around S$17.2 billion. The group's Q1 2026 revenue grew 11% year-on-year to S$3.3 billion, with all segments showing growth.

The Defence & Public Security segment grew 13%, Commercial Aerospace revenue jumped 15%, and Urban Solutions & Satcom revenue surged 18%. The company noted that net profit growth outpaced revenue growth, though specific profit figures were not disclosed in the quarterly update.

ST Engineering secured new contracts worth S$4.8 billion in the quarter, bringing its total order book to S$34.5 billion, with S$8.0 billion expected for delivery in the remainder of the year. A first-quarter interim dividend of S$0.04 per share was declared.

Key Insight for Investors: Scrutinize Dividend Components

A critical takeaway is that each company's dividend consists of multiple parts. DBS separates ordinary and Capital Return dividends. Singtel distinguishes between a core dividend and a value realisation dividend funded by asset disposals. ST Engineering's previous full-year payout included a special dividend.

Investors should focus on the ordinary component, which is sustained by operating cash flow, as the other parts are dependent on specific management decisions that may not be repeated. Relying solely on the headline dividend figure risks mistaking a one-off distribution for a recurring commitment.