Update: DBS Q4 net profit up 4% to S$838m

DBS on Tuesday posted a fourth-quarter net profit of S$838 million (excluding one-time items), up four per cent from the previous year's S$802 million. Including one-time items, Q4 net profit fell by 14 per cent from S$973 million a year ago.

Net income rose by 15 per cent year-on-year (y-o-y) to S$1.67 billion, driven by a 9 per cent growth in loans in constant currency terms and a growth of 10 basis points in net interest margin to 1.71 per cent, said the group.

Total income rose by some 9 per cent y-o-y to S$2.34 billion.

Net fee income grew by 5 per cent y-o-y to S$459 million, led by higher contributions from wealth management, cards and investment banking, DBS added.

The higher fee income was offset by a 20 per cent decline in other non-interest income to S$207 million as a result of "less favourable trading conditions".

Earnings per share (EPS) for the quarter stood at 1.30 Singapore cents (excluding one-off items), unchanged from last year. Including one-off items, EPS fell from 1.37 Singapore cents a year ago.

For the full year, net interest income rose 14 per cent to S$6.32 billion, while net profit (excluding one-off items) grew 10 per cent y-o-y to S$3.85 billion. One-time items amounted to S$198 million, comprising a gain of S$223 million from the divestment of a stake in the Bank of the Philippine Islands less a donation of S$25 million to the National Gallery Singapore. Including one-off items, net profit saw a 10 per cent growth from S$3.67 billion a year ago to S$4.05 billion.

The board has proposed a final dividend of 30 Singapore cents per share for approval at the forthcoming annual general meeting, bringing the full-year payout to 58 Singapore cents per share, unchanged from a year ago.