2Q 2024 Interim Financial Results Media Briefing

Welcome to DBS’s second-quarter results briefing.

Good evening, everyone.

Highlights. We delivered another strong performance in the second quarter with net profit rising 4% from a year ago to $2.80 billion, and ROE at 18.2%. This brought first-half total income and net profit to new highs.

For the second quarter, total income increased 9% from a year ago to $5.48 billion, with the commercial book increasing 9% to $5.30 billion. The growth was broad-based. Net interest income was higher as the balance sheet grew and net interest margin expanded two basis points to 2.83%. Net fee income reached a new high and treasury customer sales remained strong. Markets trading income also grew 6%.

Expenses were 12% higher, with Citi Taiwan accounting for five percentage points. The cost-income ratio was 40%.

For the first half, net profit was up 9% to $5.76 billion. Total income increased 11% to $11.0 billion as fee income and treasury customer sales reached new highs and commercial book net interest margin expanded by five basis points. Expenses rose 11%, with Citi Taiwan accounting for five percentage points. They were little changed compared to the previous half. The cost-income ratio was 39%.

Asset quality remained sound. The NPL ratio was unchanged from the previous quarter at 1.1%. Specific allowances remained low at eight basis points of loans for the second quarter, bringing the first half to nine basis points. Allowance coverage was at 129% and 227% after considering collateral.

Capital was healthy with CET-1 ratio at 14.8%. Liquidity remained ample, with LCR and NSFR well above regulatory requirements.

The board declared a dividend of 54 cents per share for the second quarter.

Second-quarter year-on-year. Compared to a year ago, net profit was 4% higher as total income grew 9%.

Commercial book income increased 9% to $5.30 billion. The growth was broad-based. Net interest income rose 5% or $188 million to $3.77 billion as net interest margin improved two basis points and loans grew. Fee income rose 27% or $225 million to $1.05 billion, with double-digit growth in wealth management, cards and loan-related fees. Treasury customer sales and other income remained strong, increasing 3% or $14 million to $478 million.

Markets trading income also rose, by 6% or $10 million to $187 million.

Expenses were 12% or $241 million higher at $2.17 billion, with Citi Taiwan accounting for five percentage points of the increase.

Profit before allowances increased 6% to $3.31 billion.

Specific allowances remained low at $97 million or eight basis point of loans. General allowances of $51 million were taken, compared to a write-back a year ago.

Second-quarter quarter-on-quarter. Compared to the previous quarter’s record, net profit was 5% lower as total income was little changed and expenses rose 4%.