Group CFO’s Overview

Profit before tax rose 2% to a new high of $9.12 billion in 2025, supported by record total income amid a declining interest rate environment, underscoring the Group's diversified income streams. Net profit was 2% lower than a year ago due to higher income tax expenses from increased profit contribution from higher tax jurisdictions, and implementation of Base Erosion and Profit Shifting (BEPS) Pillar Two which requires a top-up to 15% minimum global tax for each jurisdiction from 1 January 2025.

The Group's record income was driven by strong broad-based growth in non-interest income, which more than offset the lower net interest income as key benchmark rates declined significantly. Softer net interest income was cushioned by sustained loan growth, proactive funding cost and balance sheet management, including the deployment of excess liquidity to income-accretive high-quality assets. Non-interest income surged 16% to $5.46 billion, boosted by robust 33% growth in wealth management fees to a new high, and double-digit growth in trading and insurance income. This broad-based uplift reflects the strength of our integrated financial services model in capturing customer flows across market cycles.

Loans grew by a healthy 9% to $341 billion on a constant currency basis, contributed by both corporate and consumer segments, and driven by the Group's key regional and international markets. In particular, we increased lending to customers in key growth sectors such as renewable energy, technology, media and telecommunications (TMT) including digital infrastructure, transport and Singapore residential mortgages. Sustainable financing loans grew 13% to $56.5 billion and accounted for 17% of Group loans, while total commitments stood at $80 billion.

Customer deposits rose 10% from a year ago, driven by CASA deposit growth across consumer, SME and corporate segments, and lifted CASA ratio to nearly 51%.

Asset quality stayed resilient as we remained prudent in our risk management. Non-performing loan ratio was stable at 0.9%. Total allowances were 4% lower, and credit costs declined to 17 basis points from 19 basis points a year ago. Non-performing assets coverage ratio was 151%.

While we continued investing in strategic initiatives to drive business expansion, and in talent development and technology to support growth, costs were well controlled with cost-to-income ratio remaining at 40%.

Our balance sheet stayed robust. Funding, capital and liquidity positions were well above regulatory requirements. Common Equity Tier 1 Capital Adequacy Ratio (CET1 CAR) stood at 16.9% as at 31 December 2025 on a transitional basis upon adoption of MAS' final Basel III reform rules from 1 July 2024. On a fully phased-in basis, our CET1 CAR was 15.1%.

Amid global uncertainties, market volatility and declining interest rates, our resilient performance underscores the strengths of our diversified franchise and disciplined financial management.