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DBS posts record Q1 profit of S$2.01b, declares 18 S cents interim dividend
FRI, APR 30, 2021 - 7:09 AM
DBS on Friday morning posted a 72 per cent year-on-year (y-o-y) rise in Q1 net profit to S$2.01 billion, up from S$1.16 billion in the year-ago period and beating Refinitiv&rsquo s estimate of S$1.43 billion.
It has declared an interim dividend of 18 Singapore cents per share. This is lower than 30 Singapore cents in interim dividend declared for the same period of 2020, but in line with the Monetary Authority of Singapore&rsquo s guidance for local banks to moderate their dividends. It will be payable on or about June 25.
In a business update on Friday morning the bank said this is the first time in its history that quarterly net profit has crossed the S$2 billion mark.
The record first-quarter performance was partially thanks to sustained inflows into current and savings accounts as well as broad-based loan growth.
Net fee income increased 15 per cent from the same period a year ago to a new high of S$953 million, with wealth management fees rising 24 per cent to a record S$519 million from the previous year.
Strong investor sentiment drove demand across a wide range of investment products in a low interest rate environment, said the bank. Bancassurance fees were also higher, reversing declines throughout 2020.
Net interest income, however, fell 15 per cent y-o-y to S$2.11 billion from S$2.48 billion a year ago. This was due to lower interest rates, mitigated in part by higher loan volumes.
Other non-interest income rose 12 per cent y-o-y to S$794 million, as trading income doubled on the back of new highs for both treasury markets non-interest income and treasury customer income.
Total income fell 4 per cent on-year to S$3.85 billion from S$4 billion as the overall business volume growth was more than offset by the impact of lower interest rates. Total income would have risen 9 per cent if net interest margin had been stable, said the bank.
Expenses were 2 per cent higher at S$1.59 billion compared to Q1 FY2020 due to Lakshmi Villas Bank (LVB). Excluding LVB, higher bonus accruals in line with the better financial performance were offset by lower non-staff expenses. The cost-to-income ratio was 41 per cent.
Full-year expenses are expected to be around 3 to 4 per cent higher than 2019 levels, with LVB to add 2 percentage points and overall costs to increase 1 to 2 per cent to support growing business activities.
Total allowances for the full year are likely to be below S$1 billion.
Delinquencies remain low despite the tapering of loan moratoriums, the company said in a presentation, and current asset quality trends are &ldquo encouraging&rdquo with stabilising asset quality.
https://www.businesstimes.com.sg/companies-markets/dbs-posts-record-q1-profit-of-s201b-declares-18-s-cents-interim-dividend
FRI, APR 30, 2021 - 7:09 AM
DBS on Friday morning posted a 72 per cent year-on-year (y-o-y) rise in Q1 net profit to S$2.01 billion, up from S$1.16 billion in the year-ago period and beating Refinitiv&rsquo s estimate of S$1.43 billion.
It has declared an interim dividend of 18 Singapore cents per share. This is lower than 30 Singapore cents in interim dividend declared for the same period of 2020, but in line with the Monetary Authority of Singapore&rsquo s guidance for local banks to moderate their dividends. It will be payable on or about June 25.
In a business update on Friday morning the bank said this is the first time in its history that quarterly net profit has crossed the S$2 billion mark.
The record first-quarter performance was partially thanks to sustained inflows into current and savings accounts as well as broad-based loan growth.
Net fee income increased 15 per cent from the same period a year ago to a new high of S$953 million, with wealth management fees rising 24 per cent to a record S$519 million from the previous year.
Strong investor sentiment drove demand across a wide range of investment products in a low interest rate environment, said the bank. Bancassurance fees were also higher, reversing declines throughout 2020.
Net interest income, however, fell 15 per cent y-o-y to S$2.11 billion from S$2.48 billion a year ago. This was due to lower interest rates, mitigated in part by higher loan volumes.
Other non-interest income rose 12 per cent y-o-y to S$794 million, as trading income doubled on the back of new highs for both treasury markets non-interest income and treasury customer income.
Total income fell 4 per cent on-year to S$3.85 billion from S$4 billion as the overall business volume growth was more than offset by the impact of lower interest rates. Total income would have risen 9 per cent if net interest margin had been stable, said the bank.
Expenses were 2 per cent higher at S$1.59 billion compared to Q1 FY2020 due to Lakshmi Villas Bank (LVB). Excluding LVB, higher bonus accruals in line with the better financial performance were offset by lower non-staff expenses. The cost-to-income ratio was 41 per cent.
Full-year expenses are expected to be around 3 to 4 per cent higher than 2019 levels, with LVB to add 2 percentage points and overall costs to increase 1 to 2 per cent to support growing business activities.
Total allowances for the full year are likely to be below S$1 billion.
Delinquencies remain low despite the tapering of loan moratoriums, the company said in a presentation, and current asset quality trends are &ldquo encouraging&rdquo with stabilising asset quality.
https://www.businesstimes.com.sg/companies-markets/dbs-posts-record-q1-profit-of-s201b-declares-18-s-cents-interim-dividend