DBS : D05 0%’ net profit for the first quarter ended March 2024 rose 15 per cent year on year to S$2.96 billion, which marked a new high, said the lender on Thursday (May 2).
The earnings beat the S$2.5 billion consensus forecast in a Bloomberg survey of five analysts.
The lender declared an interim dividend of S$0.54 for each ordinary share, resulting in estimated total dividends payable of S$1.54 billion.
Additional shares arising from its proposed 1-for-10 bonus issue will also qualify for this dividend.
The payment date for the Q1 interim dividend will be on or about May 20, after books closure on May 10.
Total income for the quarter grew 13 per cent to a new high of S$5.56 billion.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Group net interest margin (NIM) remained stable at 2.14 per cent, while net fee income crossed S$1 billion for the first time as treasury customer sales reached a record.
Return on equity reached 19.4 per cent, which DBS said was also a new high.
DBS’ cost-income ratio stood little changed at 37 per cent, while profit before allowances rose 14 per cent to S$3.48 billion.
Non-performing loans ratio remained unchanged at 1.1 per cent, with specific allowances at 10 basis points of loans.
Markets trading income declined 9 per cent year on year from higher funding costs.
Expenses rose 10 per cent, with Citi Taiwan accounting for five percentage points of the increase.
On the commercial book level, total income rose 14 per cent to S$5.31 billion.
Net interest income grew 8 per cent to S$3.65 billion, while NIM expanded eight basis points to 2.77 per cent from higher interest rates.
Commercial book other non-interest income grew 44 per cent, led by an increase in treasury customer sales.
Net fee and commission income rose 23 per cent to S$1 billion.
DBS chief executive Piyush Gupta said he expects this year’s overall net profit to be above 2023 levels, while group net interest income is expected to be “modestly better” than the previous year.
The bank has guided for full-year commercial book non-interest income to come in at the mid-to-high teens percentage, driven by better-than-expected momentum in wealth management and treasury customer sales.
Total income growth for the year is now estimated to be at one to two percentage points above the previous guidance of mid-single digit growth, while cost-income ratio is seen to come in at the low-40 per cent range.
Although Gupta noted that specific allowances for loans are “not seeing stress so far”, they are assumed to normalise to 17 to 20 basis points for 2024.
Shares of DBS ended Tuesday at S$34.90, up S$0.12 or 0.4 per cent.