DBS Group’s third-quarter 2024 net profit crossed SGD 3 billion for the first time, rising 15% from a year ago and 8% from the previous quarter to SGD 3.03 billion. Total income rose 11% from a year ago and 5% from the previous quarter to SGD 5.75 billion. These increases were driven by balance sheet growth, record fee income led by wealth management, higher treasury customer sales, and the strongest markets trading income in ten quarters. The cost-income ratio was 39%.

For the nine months, net profit increased 11% to a new high of SGD 8.79 billion. Return on equity was at 18.8%. Total income rose 11% to SGD 16.8 billion from growth in both the commercial book and markets trading.

Asset quality continued to be resilient, with the NPL ratio declining to 1.0%. Non-performing assets fell 8% from the previous quarter. Specific allowances were at 14 basis points of loans for the third quarter and 11 basis points for the nine months.

Dividend and share buyback

The Board declared a quarterly dividend of SGD 54 cents per share for the third quarter, bringing the dividend for the nine months to SGD 1.62 per share.

In addition, the Board announced the establishment of a new SGD 3 billion share buyback programme. Under the programme, shares will be purchased in the open market and cancelled. The buybacks will be carried out at management’s discretion and subject to market conditions. Further details can be found in a separate announcement.

Third quarter 2024 vs. second quarter 2024

Commercial book net interest income increased 1% to SGD 3.80 billion. Net interest margin was stable at 2.83% helped by the repricing of fixed-rate assets. Loans expanded SGD 3 billion or 1% in constant-currency terms to SGD 418 billion, led by a SGD 2 billion growth in trade loans. Deposits grew SGD 10 billion or 2% in constant-currency terms to SGD 545 billion from Casa inflows, some of which were transitory.

Commercial book net fee income grew 6% to a record SGD 1.11 billion. The increase was largely due to wealth management fees, which rose 18% to SGD 609 million. There was broad-based growth in investment products and bancassurance from stronger investor sentiment. Investment banking fees were also higher, rising 63% to SGD 31 million from increased debt capital market income. Transaction service fees were stable at SGD 227 million. Card fees and loan-related fees were lower than their previous-quarter records, falling 4% to SGD 302 million and 22% to SGD 146 million respectively.

Commercial book other non-interest income rose 8% to SGD 517 million, contributed by higher treasury customers sales.

Markets trading income rose 77% to SGD 331 million, the highest in ten quarters, as FX, interest rate and equity derivative activities benefited from market volatility.

Expenses increased 4% to SGD 2.25 billion led by higher staff and computerisation costs. The cost-income ratio was 39%, and profit before allowances grew 6% to SGD 3.50 billion.

Third quarter 2024 vs. third quarter 2023

Commercial book net interest income rose 3% driven by balance sheet growth, with loans increasing 2% and deposits rising 6% in constant-currency terms. Net interest margin was stable.

Commercial book net fee income rose 32%, led by a 55% increase in wealth management. Commercial book other non-interest income grew 4%, with the increase also driven by wealth management.

Markets trading income doubled driven by FX, interest rates and equity derivatives.

Expenses rose 10%, with Citi Taiwan accounting for three percentage points of the increase. The cost-income ratio was stable, and profit before allowances grew 11%.

Nine months 2024 vs. nine months 2023

For the nine months, total income rose 11% to SGD 16.8 billion.

Commercial book net interest income grew 5% to SGD 11.2 billion from a four-basis-point expansion in net interest margin and balance sheet growth. Loans rose 2% in constant-currency terms over the first nine months of the year while deposits grew 4%.

Commercial book net fee income increased 27% to a record SGD 3.20 billion led by wealth management, card and loan-related fees. Commercial book other non-interest income rose 16% to SGD 1.62 billion led by treasury customer sales which reached a new high.

Markets trading income was 25% higher at SGD 764 million, with all of the increase in the third quarter.

Expenses rose 11% to SGD 6.50 billion, with Citi Taiwan accounting for four percentage points of the increase. The cost-income ratio was stable at 39%, and profit before allowances rose 10% to SGD 10.3 billion.

Balance sheet

Asset quality was resilient. Non-performing assets declined 8% from the previous quarter to SGD 4.68 billion as repayments, upgrades and write-offs more than offset new non-performing asset formation. The NPL ratio fell from 1.1% to 1.0%. Specific allowances were SGD 120 million or 14 basis points of loans for the third quarter. Allowance coverage was at 135% and at 242% after considering collateral.

Liquidity remained ample. The liquidity coverage ratio of 144% and the net stable funding ratio of 115% were both well above regulatory requirements of 100%.

Capital remained healthy. With the implementation of final Basel III reforms on 1 July 2024, the reported Common Equity Tier-1 ratio was 17.2% based on transitional arrangements, while the pro-forma ratio on a fully phased-in basis was 15.2%. The leverage ratio was at 6.8%, more than twice the regulatory minimum of 3%.

DBS CEO Piyush Gupta said, “We achieved another record performance in the third quarter. Commercial book net interest margin was supported by reduced interest rate sensitivity of our balance sheet, while wealth management drove fee income to a new high as a benign macroeconomic and interest rate outlook buoyed investor confidence. The new buyback programme we announced today is underpinned by our strong capital position and ongoing earnings generation, and it is another affirmation of our commitment to capital management. We remain well positioned to continue delivering healthy shareholder returns.”

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About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.

Recognised for its global leadership, DBS has been named “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia” award by Global Finance for 16 consecutive years from 2009 to 2024.

DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets.

DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting businesses for impact: enterprises with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping underserved communities with future-ready skills and helping them to build food resilience.

With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.

Third-quarter net profit rises 15% to surpass SGD 3 billion for first time