DBS Group Holdings reported on 7 February 2024 that its net profit for the year ended 31 December 2023 rose 26% to a record SGD10.3 billion, excluding one-time items, as higher interest rates widened its margins and fee income increased.
Total income grew 22% to SGD20.18 billion, exceeding SGD20 billion for the first time. Return on equity climbed from 15.0% to 18.0%, also a new high for the group. Including one-time items, which comprised Citi Taiwan integration costs and a charitable contribution, net profit was SGD10.06 billion, up 23%.
MARGINS AND FEES DRIVE THE YEAR
Commercial book net interest income rose 33% to SGD14.29 billion, and the group net interest margin widened to 2.15% from 1.75% in 2022. Commercial book net fee and commission income increased 9% to SGD3.38 billion. The underlying cost-income ratio improved to 39%, while specific allowances remained low at 11 basis points of loans.
Asset quality was stable, with the non-performing loan ratio unchanged at 1.1%. The Common Equity Tier 1 ratio stood at 14.6%. Customer loans were broadly unchanged at SGD416 billion, while deposits rose 2% to SGD535 billion, helped by the consolidation of Citi Taiwan in August 2023.
SOFTER FOURTH QUARTER
Fourth-quarter net profit rose 2% from a year earlier to SGD2.39 billion but fell 9% from the previous quarter because of a lower net interest margin, seasonally lower non-interest income and higher expenses. The group net interest margin eased to 2.13% in the quarter from 2.19% in the third quarter.
The board proposed a final dividend of 54 Singapore cents per share, bringing total dividends for 2023 to SGD1.92 per share, subject to shareholder approval at the annual general meeting on 28 March 2024. It also proposed a bonus issue of one share for every ten held.
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