- Record Income Growth 8% YoY increase to $20.9 billion, with non-NII surging 13% driven by Wealth Solutions (+24%), Global Markets (+12%), and Global Banking (+15%).
- RoTE Exceeds Target 14.7% underlying return on tangible equity (vs. 12% 2026 target), including 70 bps boost from Ripple/Toss gains.
- Wealth Segment Leadership Wealth business grew 24% with $52 billion net new money, ranking #3 in Asia with $447 billion affluent AUM (14% growth).
- Shareholder Returns $1.5 billion share buyback and 65% higher full-year dividend per share proposed, reflecting strong capital position (CET1: 14.1%).
- Operational Efficiency Cost-to-income ratio improved to 59% (4% positive jaws), with $1.3 billion invested in "Fit for Growth" program (300+ initiatives).
Segment Performance
The bank's business segments performed well, with CIB income up 4% and WRB income up 6%. The Wealth business grew by 24%, driven by $52 billion in net new money, making it the fastest-growing wealth manager in Asia. The Ventures segment, which includes digital banks Mox and Trust Bank, has made strong progress, with Mox's customer base increasing 15% year-on-year to around 750,000 customers and Trust Bank's customer numbers up 15% year-on-year to over 1 million customers.
Capital Position and Shareholder Distributions
The bank's strong capital position allows for a $1.5 billion share buyback and a proposed full-year dividend per share up 65% year-on-year. The bank's CET1 ratio was 14.1%, and it announced a new $1.5 billion share buyback. The bank targets a statutory RoTE of greater than 12% in 2026 and expects 2026 income growth to be around the bottom end of its historical 5-7% range.
Valuation and Outlook
With a P/TBV ratio of 1.21 and a dividend yield of 1.72%, the bank's valuation appears reasonable. Analysts estimate next year's revenue growth at 5.3%. The bank's cost-to-income ratio improved to 59%, with a 4% positive income-to-cost jaws. The bank's credit costs have remained low, around 20 bps, compared to a through-the-cycle estimate of 30-35 bps. The outlook for 2026 is cautious, but no concerns are seen on the radar screen.