By Yantoultra Ngui

SINGAPORE (Reuters) -Singapore's banks posted mixed second-quarter earnings on Thursday, with DBS Group maintaining its 2025 outlook and United Overseas Bank resuming guidance but trimming expectations amid macroeconomic uncertainties.

DBS, Singapore and Southeast Asia's largest bank by assets, reported a 1% rise in April-June net profit to S$2.82 billion ($2.20 billion), beating a S$2.77 billion mean estimate from three analysts according to LSEG.

The increase was driven by higher total income. The bank lifted its ordinary dividend by 11% from a year earlier to 60 Singapore cents per share. It also issued a capital return dividend of 15 Singapore cents per share, having not declared one at all a year ago.

However, profitability metrics softened. Return on equity fell to 16.7% from 18.2% a year earlier, while net interest margin, a key gauge of profitability, declined to 2.05% from 2.14%.

UOB, Singapore and Southeast Asia's third-largest lender, posted a 6% year-on-year drop in net profit to S$1.34 billion, missing the S$1.47 billion analyst consensus by LSEG.

The decline marked its first decrease in profit since the first quarter of 2024, and was mainly due to lower net interest income. UOB declared an interim dividend of 85 Singapore cents per ordinary share, down 3.4% from a year earlier.

OUTLOOK SPLIT

DBS CEO Tan Su Shan said that external uncertainties remained, but the bank had opportunities ahead of it.

"Our proactive management of the balance sheet puts us in a good position to navigate the interest rate cycle, while strong capital and liquidity ensure we are well placed to support customers," she added in a statement.

Tan reaffirmed DBS's overall 2025 outlook, including projecting net interest income to be slightly above 2024 levels, while net profit was expected to be lower.

UOB, meanwhile, now sees 2025 loan growth in the low single digits, down from high single-digit expectations before it paused its guidance in May until the impact of U.S. tariffs became clearer. Fee income growth is forecast in the high single digits, versus earlier double-digit projections.

"As a long-term player, we are committed to supporting clients through uncertainties and investing in capabilities for sustainable growth," UOB Deputy Chairman and CEO Wee Ee Cheong said in a statement.

Both banks' results followed that of peer Oversea-Chinese Banking Corp, which posted on Friday an in-line second quarter net profit, but cut its 2025 net interest income expectations and flagged persisting tariff uncertainty.

Major global lenders including HSBC and Standard Chartered have similarly flagged macroeconomic risks in recent earnings reports, underscoring the broader impact of geopolitical tensions on the financial sector.

($1 = 1.2847 Singapore dollars)