DBS Q4 net profit up 14% to S$1.51b

Thu, Feb 13, 2020 – 8:22 AM

DBS Group reported a 14 per cent boost in net profit to S$1.51 billion for the fourth quarter from a year ago, on the back of broad-based business momentum.

Annualised earnings per share stood at S$2.31 for the quarter, up from S$2.01 previously.

The lender recommended a final quarterly dividend of 33 Singapore cents per share, subject to shareholders' approval at the annual general meeting on March 31. This will bring the annualised dividend to S$1.32 per share – an increase of 10 per cent. The dividends will be paid on April 21.

DBS results comes one day after it confirmed that one employee working at the bank's main Marina Bay Financial Centre office has been infected with the novel coronavirus (Covid-19), resulting in all DBS employees on the affected floor – understood to be less than 200 – to vacate the premises.

It is the first Singapore bank to announce its FY2019 results. Next to do so will be OCBC and United Overseas Bank on Feb 21.

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For the quarter, DBS total income increased 7 per cent on the year to S$3.46 billion from loan growth and a double-digit improvement in fee income.

Net interest income rose 4 per cent from a year ago to S$2.43 billion, while loans also grew 4 per cent in constant-currency terms. Net interest margin (NIM) was little changed from a year ago at 1.86 per cent, but fell 4 basis points (bps) from the previous quarter due to lower interest rates.

NIMs are a key gauge of profitability for banks, measuring the difference between income earned from loans and the interest paid to depositors.

Net fee income grew 17 per cent from a year ago to S$741 million, led by wealth management and investment banking fees.

Other non-interest income rose 5 per cent year on year to S$294 million due to higher gains on investment securities.

The non-performing loan (NPL) ratio was stable at 1.5 per cent. Specific allowances were S$199 million, or 21 bps of loans, which DBS said was in line with recent quarterly trends.

On a full-year basis, DBS recorded a 14 per cent jump in net profit to S$6.39 billion, while total income rose 10 per cent to reach a new high of S$14.5 billion, again from broad-based business momentum.

Full-year net interest income increased 7 per cent to S$9.63 billion. NIM was 4 bps higher at 1.89 per cent as an increasing margin in the first half was modRead More – Source