DBS Q2 profit rises 6% to S$2.79 billion; declares S$0.54 per share dividend
Earnings beat the S$2.7 billion consensus forecast in a Bloomberg survey of four analysts
DBS net profit for its second quarter rose amid a broad-based growth in total income, it said on Wednesday (Aug 7).
Net profit for the three months ended Jun 30, 2024, stood at S$2.79 billion, up 6 per cent from S$2.63 billion in the year-ago period.
The earnings beat the S$2.7 billion consensus forecast in a Bloomberg survey of four analysts.
The lender declared a dividend of 54 Singapore cents per share for the period, up from 44 cents in the year-ago period.
Commercial book net interest income for the quarter rose 5 per cent to S$3.77 billion, from balance sheet growth and a slightly higher net interest margin (NIM). Commercial book NIM improved 2 basis points (bps) to 2.83 per cent.
Loans also grew 3 per cent while deposits rose 6 per cent in constant-currency terms, bolstered by the consolidation of Citi Taiwan.
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Meanwhile, group NIM was down 2 bps on year to 2.14 per cent for the quarter.
Commercial book net fee income rose 27 per cent from a year ago to a record S$1.05 billion.
Wealth management fees grew 37 per cent to S$518 million amid a shift from deposits into investments and bancassurance as well as an expansion in assets under management. Card fees also rose 32 per cent to S$313 million from higher spending.
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Loan-related fees rose 40 per cent to S$186 million as well.
The consolidation of Citi Taiwan had benefitted the lender’s wealth management and card fees, DBS said.
Commercial book other non-interest income rose 3 per cent on year to S$478 million, driven by strong treasury customer sales.
The bank’s non-performing loans ratio was 1.1 per cent, unchanged from the same period a year ago.
Non-performing assets fell 3 per cent on quarter to S$5.08 billion, as repayments and write-offs more than offset new non-performing asset formation.
DBS chief executive Piyush Gupta said: “While recent market volatility and ongoing geopolitical tensions have resulted in heightened uncertainty, we have built resilience against the risks of an economic slowdown and lower interest rates.”
He expects the lender can continue to support customers and deliver shareholder returns with its high general allowance reserves, reduced interest rate sensitivity, strong capital position and ample liquidity.
Shares of DBS were up 1 per cent to S$33.09 as at the midday break.
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