DBS Q4 net profit up 20%, FY2015 up 10% as total income crosses S$10b

DBS Group reported on Monday that its net profit for the fourth quarter ended Dec 31, 2015, rose 20 per cent to S$1 billion, compared with S$838 million a year ago.

Net profit for the full year 2015, including one-off items, rose 10 per cent to S$4.5 billion, from S$4.0 billion a year ago. Total income for FY2015 crossed S$10 billion for the first time.

In Q4, total income growth of 13 per cent exceeded a 10 per cent increase in expenses. General allowances of S$67 million were taken as a prudent measure, the banking group said.

Net interest income increased 11 per cent to S$1.85 billion in Q4. Net interest margin improved 13 basis points to 1.84 per cent, while loans rose by 3 per cent. Non-interest income was 19 per cent higher at S$795 million.

Net fee income rose 6 per cent to S$485 million as growth in most activities was partially offset by lower brokerage fees. Other non-interest income rose 50 per cent to S$310 million. Two-thirds of the increase was from interest income derived from funding swaps.

Compared with the preceding quarter, Q4 net profit fell 6 per cent due to lower non-interest income and higher allowances. There had been a gain of S$43 million from the sale of properties in the previous quarter too.

The non-performing loan rate of 0.9 per cent was unchanged from a year ago and the previous quarter. The allowance coverage of non-performing assets remained healthy at 148 per cent and at 303 per cent if collateral was considered.

The common equity tier-1 ratio rose 0.6 per cent points during the quarter to 13.5 per cent from retained earnings and a decline in risk-weighted assets.

A final dividend of 30 Singapore cents per share has been proposed. This will bring the full-year dividend to 60 Singapore cents per share, compared with 58 Singapore cents per share a year ago.