DBS Group Reports 69% Increase In Quarterly Profit

DBS Group reported a 69% increase in quarterly profit on Monday (Feb 13) as rising interest rates boosted its net interest margins, but the Southeast Asia’s largest bank by assets said interest rate hikes would be moderate this year.

DBS, the first Singapore bank to report this season, said net profit rose to a record S$2.34 billion (US$1.76 billion) in October-December, compared to an average estimate of S$2.16 billion from three analysts, according to Refinitiv data, and S$1.39 billion) in the same period a year ago.

In 2022, the bank reported a record performance, with net profit increasing by 20% to S$8.19 billion.

Total income increased by 16% to S$16.5 billion, breaking the S$16 billion barrier for the first time.

DBS, which earns most of its profit from Singapore and Hong Kong, announced a special dividend of 50 Singapore cents per share.

“The record return on equity of 17 per cent for the fourth quarter and 15 per cent for the full year reflect the benefit of higher interest rates as well as significant structural gains from our decade-long transformation initiatives,” said DBS CEO Piyush Gupta.

“The Commercial book total income growth of 21 per cent for the full year and 43 per cent for the fourth quarter attest to the strength of our franchise.”

The bank’s “business pipelines are healthy and asset quality robust”, added Mr Gupta.

“We expect confidence to return to markets in the coming year as interest rate increases ease and China reopens.”




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