Traditionally banks stocks are

Traditionally banks stocks are considered cyclical in nature and the results have shown that the net interest income will definitely take a hit following the rate cuts. However, banks are no longer the dinosaurs and they have evolved their business model for growth and diversification. We should continue to monitor the results for the coming 2 or 3 quarters before we pass our judgement. For investors, the price actions are just noises and it is the fundamentals that matters.

DBS Q4 Profit -10%: More Decline On The Way With Record High?

DBS Group shares slipped 1.9% intraday after Q4 net profit fell ~10% YoY to S$2.36B, missing consensus S$2.52B. Net interest margin compressed sharply to 2.34% (vs 2.77%), offsetting strong +13.5% fee income growth. While full-year profit dipped 3.2%, total dividends jumped 38% to S$3.06, supported by capital return payouts through 2027. After a ~60% rally since last April and a recent record high, investors are reassessing rate headwinds versus capital returns. Is this just post-earnings digestion—or the start of a deeper bank rotation?

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