FY 2024 Full-Year Financial Results Media Briefing

Welcome to DBS's fourth-quarter financial results media briefing.

Good morning.

Highlights. We delivered a record performance for full-year 2024. Net profit rose 11% to a new high of $11.4 billion, with return on equity at 18.0%, sustained at the previous year’s record.

Total income rose 10% to $22.3 billion from broad-based growth. Commercial book net interest income grew 5% led by a four-basis-point expansion in net interest margin to 2.80% and balance sheet growth. Net fee income crossed $4 billion for the first time led by wealth management, while treasury customer sales also reached a new high. Markets trading income rebounded 27% to $922 million.

Expenses were 10% higher, with Citi Taiwan accounting for three percentage points. The cost- income ratio was unchanged at 40%. For the fourth quarter, net profit grew 10% from a year ago to $2.62 billion. Total income rose 10% to $5.51 billion from growth in both the commercial book and markets trading.

Asset quality was sound. Non-performing assets rose 4% in constant-currency terms from the previous quarter to $5.04 billion as new non-performing assets were partially offset by repayments and write-offs. The NPL ratio of 1.1% was little changed. Specific allowances were at 20 basis points of loans for the fourth quarter and 13 basis points for the full year.

Capital was healthy. The transitional CET-1 ratio was 17.0%, with the fully phased-in ratio at 15.1%.

The Board declared a final ordinary dividend of 60 cents per share for the fourth quarter, an increase of six cents from the previous payout. This brings the ordinary dividend for the financial full year to $2.22 per share or $6.3 billion, an increase of 27% over the previous year.

In addition, the Board committed to managing down the stock of excess capital over the next three years. To begin with, it plans to introduce a Capital Return dividend of 15 cents per share per quarter to be paid out over financial year 2025.

Full-year performance. For the full year, net profit rose 11% to a new high.

Commercial book total income grew 10% or $1.92 billion to $21.4 billion. Net interest income rose 5% or $757 million to $15.0 billion from higher net interest margin and balance sheet growth. Net fee income rose 23% or $784 million to a record $4.17 billion led by wealth management, which grew 45%. Commercial book other non-interest income was 21% or $379 million higher driven by record treasury customer sales and property disposal gains. Excluding the property disposal gains, commercial book other non-interest income was up 15%.

Markets trading income rebounded 27% to $922 million as FX, interest rate and equity derivative activities benefited from market volatility.

Expenses were 10% or $839 million higher at $8.90 billion, with Citi Taiwan accounting for three percentage points of the increase. The cost-income ratio was unchanged at 40%.

Profit before allowances increased 11% to a record $13.4 billion.

Specific allowances were $559 million or 13 basis points of loans, and general allowances of $63 million were taken.

There were one-time items amounting to $119 million. They included $100 million that was set aside as part of the bank’s CSR commitment announced last year to allocate up to $1 billion over ten years for vulnerable communities.

Fourth-quarter year-on-year. For the fourth quarter, net profit rose 10% from a year ago to $2.62 billion.

Commercial book income increased 9% to $5.35 billion. Net interest income rose 5% or $194 million to $3.83 billion from a two-basis-point increase in net interest margin to 2.77% and from balance sheet growth. Net fee income grew 12% or $101 million to $968 million, led by wealth management. Commercial book other non-interest income grew 41% or $158 million to $548 million due to higher treasury customer sales and property disposal gains. Excluding the property disposal gains, commercial book other non-interest income was 19% higher.