1Q 2024 Financial Results Media Briefing

Welcome to DBS’s first-quarter results briefing.

Good morning. Highlights. We achieved a new record performance in the first quarter with total income, net profit and ROE at new highs. Net profit rose 15% from a year ago to $2.96 billion and return on equity climbed to 19.4%. Total income increased 13% to $5.56 billion, with commercial book total income increasing 14% to $5.31 billion. Net interest income grew 8%, lifted by higher net interest margin which rose eight basis points to 2.77% from higher interest rates, while loans grew 1%. Net fee income grew by 23% and crossed $1 billion for the first time, with the increase led by wealth management and loan fees. Treasury customer sales income also reached a new record. Markets trading income recorded a good quarter at $246 million despite the higher funding cost, but nevertheless fell 9% from the high base in the previous year. The strong growth in commercial book total income more than offset the decline in Markets trading income, propelling group total income to $5.56 billion, up 13% from a year ago and also a new high. Expenses rose 10% to $2.08 billion and the cost-income ratio was little changed at 37%. Compared to the previous quarter, net profit was 24% higher. Commercial book total income increased 9% led by growth in fee income and treasury customer sales while net interest margin was slightly higher. Markets trading income more than doubled from low fourth-quarter levels. The balance sheet continued to be strong. The NPL ratio was unchanged from the previous quarter at 1.1%. Specific allowances remained low at 10 basis points of loans, similar to recent quarters. Allowance coverage was at 125% and at 223% after considering collateral. Capital was healthy with CET-1 ratio at 14.7%. Liquidity was also healthy, with the NSFR and LCR well above regulatory requirements. The Board declared a dividend of 54 cents per share over the enlarged post-bonus share base. First-quarter performance. Compared to a year ago, net profit rose 15% to $2.96 billion as total income grew 13% to $5.56 billion. Commercial book total income rose 14% or $644 million to $5.31 billion. The growth was broad- based. Citi Taiwan contributed four percentage points to the increase. In other words, the majority of the 14% growth was organic. Net interest income grew 8% or $263 million from a higher net interest margin as well as loan growth. Fee income grew 23% on $192 million on the back of strong wealth management and loan fees.