DBS reported net profit of S$2.27 billion for the fourth quarter ended December, 3 per cent lower than the S$2.34 billion recorded in the year-ago period.

 

The net profit, which included one-off costs, missed a S$2.39 billion consensus forecast in a Bloomberg survey of two analysts.

 

Excluding one-time items costs from the acquisition of Citigroup&rsquo s Taiwan consumer banking business and a S$100 million Corporate Social Responsibility (CSR) commitment to charitable causes, net profit would have been S$2.39 billion &ndash in line with analyst estimates and 2 per cent higher than the previous Q4.

 

Compared to the previous quarter, net profit fell 12 per cent due to a lower net interest margin and seasonally lower non-interest income, said Singapore&rsquo s largest bank on Wednesday (Feb 7).  

 

The lender declared a dividend of S$0.54 per share for the period, up from S$0.42 per share in the previous Q4. This brings the ordinary dividend for the full year to S$1.92 per share.

 

Total income for the fourth quarter stood at S$5.01 billion, 9 per cent higher than the S$4.59 billion in the same period the year before.

 

Net interest margin for the group was up 8 basis points to 2.13 per cent for the quarter, from 2.05 per cent in the previous corresponding period.

 

Net interest income under its commercial book rose 7 per cent to S$3.64 billion for the quarter.

 

Commercial book net fee income rose 31 per cent from the year before to S$867 million, on the back of increases across most fee income streams and the consolidation of Citi Taiwan.

 

Commercial book other non-interest income rose 22 per cent to S$390 million on higher treasury customer sales to wealth management customers.

 

The bank&rsquo s non-performing loans (NPL) ratio was at 1.1 per cent, unchanged from the same period a year earlier.

 

In addition, DBS proposed a bonus issue on the basis of one bonus share for every existing 10 ordinary shares held.

 

&ldquo The bonus shares will qualify for dividends starting with the first-quarter 2024 interim dividend and will increase the pace of capital returns to shareholders,&rdquo said the lender, adding that the annualised ordinary dividend going forward will be S$2.16 per share over the enlarged share base, 24 per cent higher than the S$1.92 per share for FY2023.

 

Total allowances for Q4 of S$142 million were higher than a year ago, on the absence of a general allowance write-back in FY2022, said DBS.