$星展集团控股(D05.SG) just dropped its Q4/FY2025 results, and it’s a mixed bag that‘s got everyone talking.

It was a tough quarter. Net profit fell 10% YoY to S$2.26B, missing street estimates. The main culprit? That squeezed Net Interest Margin (NIM), which dropped to 1.93% from 2.15% a year ago, thanks to lower rates.

But it’s not all bad news. The wealth management machine is still humming, with assets under management up 19% to a record S$488B. Also, they‘re sharing the spoils with a total dividend of S$0.81 per share for the quarter (up from S$0.60 last year).

Looking ahead, the guidance is cautious. CEO Tan Su Shan expects 2026 net interest income and net profit to be slightly below 2025 levels, given the ongoing rate pressures.

So, the big picture question is this: Is the strong fee income (especially from wealth) and solid capital return enough to offset the clear pressure from falling interest margins, especially with a cautious outlook?