Dbs Group Holdings Ltd · SGX:D05

Dbs — Q2 2024 Earnings Presentation

30 slides from Dbs's earnings presentation, Aug 7, 2024

  1. Slide 1: Record first-half income and earnings

    Record first-half income and earnings DBS Group Holdings 2Q 2024 financial results August 7, 2024 Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. DBS Bank accept

  2. Slide 2: Highlights

    Highlights Second-quarter net profit up 4% YoY to $2.80 billion with ROE at 18.2%  Commercial book total income up 9% to $5.30 billion from broad-based growth o NII rises from balance sheet growth and NIM increase of 2bp to 2.83% o Net fee income reaches new high, treasury customer sales remain str

  3. Slide 3: 2Q net profit up 4% YoY as total income rises 9%

    2Q net profit up 4% YoY as total income rises 9% (S$m) 2Q24 YoY %  Commercial book total income up 9% from higher Total income 5,482 9 net interest income, record fees, and increase in Commercial book 5,295 9 treasury customer sales Markets trading 187 6  Markets trading income rises 6% Expenses 2

  4. Slide 4: 2Q net profit down 5% QoQ

    2Q net profit down 5% QoQ (S$m) 2Q24 QoQ % Total income 5,482 (1)  Commercial book net interest income rises 3% from 6bp NIM expansion Commercial book 5,295 (0) Markets trading 187 (24)  Fee income at new high Expenses 2,172 4  Excluding non-recurring gains, Commercial book Profit before allowanc

  5. Slide 5: 1H net profit up 9% to new high as total income rises 11%

    1H net profit up 9% to new high as total income rises 11% (S$m) 1H24 YoY % record Total income 11,039 11  Commercial book total income up 11% from 5bp Commercial book 10,606 11 NIM expansion, record fees and treasury Markets trading 433 (3) customer sales Expenses 4,251 11  Markets trading income

  6. Slide 6: 2Q commercial book net interest income up 3% QoQ as NIM rises 6bp to 2.83%

    2Q commercial book net interest income up 3% QoQ as NIM rises 6bp to 2.83% Net interest margin (%) 2.81 2.82 2.75 2.77 2.83 2.75 2.80 Commercial book Group 2.14 2.14 2.16 2.19 2.13 2.14 2.14 Net interest 3,594 3,433 3,504 3,434 3,505 income (S$m) 7,099 6,704 3,581 3,684 3,637 3,647 3,769 Commercial

  7. Slide 7: Loans stable QoQ, up 1% over first half in constant-currency terms

    Loans stable QoQ, up 1% over first half in constant-currency terms (S$bn) 431 Others +5 +6 In constant-currency terms CBG / WM 132  2Q loans stable QoQ as +3 growth in trade loans and wealth management loans +7 -1 offset decline in non-trade corporate loans +3  1H loans up 1% YTD led by Other 252

  8. Slide 8: Deposits stable QoQ; surplus deposits profitably deployed to HQLA

    Deposits stable QoQ; surplus deposits profitably deployed to HQLA, boosting liquidity ratios (S$bn) 604 610 567 579 583 48 48 57 59 47 Loans 228 248 249 267 273 Other funding FD and others Casa 416 420 416 425 425 292 284 286 280 278 Jun 23 Sep 23 Dec 23 Mar 24 Jun 24 HQLA (S$bn) 149 146 148 151 161

  9. Slide 9: 2Q fee income rises YoY due to wealth management, cards and loan-related fees

    2Q fee income rises YoY due to wealth management, cards and loan-related fees, 1H at record (S$m) 2,535 1,271 1,264 37 18 19 1,048 1,069 2,007 999 21 29 Investment 75 1,054 536 518 banking 31 393 370 Wealth 742 377 management 371 185 186 137 142 Loan-related 275 133 614 269 311 301 313 Cards 464 237

  10. Slide 10: 1H commercial book non-interest income up 24% YoY

    1H commercial book non-interest income up 24% YoY from record fee income and treasury customer sales (S$m) 3,940 2,052 1,888 3,277 750 1,688 388 1,612 1,573 362 Other non-interest 707 346 325 316 income 1,099 621 478 896 464 499 390 Net fee income 2,091 1,043 1,048 1,674 823 843 867 1H23 1H24 2Q23 3

  11. Slide 11: 1H cost-income ratio at 39%

    1H cost-income ratio at 39% Cost / income 44 (%) 38 39 40 39 38 37 4,251 2,205 2,172 2,038 2,079 (S$m) 3,813 1,931 2,728 1,345 1,395 Staff 2,430 1,261 1,333 1,215 expenses Other 860 1,383 1,523 716 777 746 777 expenses 1H23 1H24 2Q23 3Q23 4Q23 1Q24 2Q24 11

  12. Slide 12: 1H CBG / WM income up 18%

    1H CBG / WM income up 18% (S$m) 1H24 1H23 YoY % Total income 5,059 4,272 18  Total income up 18% to $5.06bn from Loans and deposits 3,124 2,864 9 higher net interest income and record Investment products 1,492 1,051 42 cards and wealth management fees, Cards 420 313 34 partly driven by Citi Taiwan

  13. Slide 13: 1H IBG income stable

    1H IBG income stable (S$m) 1H24 1H23 YoY % Total income 4,687 4,693 (0)  Total income stable at $4.69bn Loans 1,741 1,702 2  Higher loan-related fees, cash Trade 320 345 (7) management fees and treasury Cash / SFS 2,082 2,131 (2) customer income offset by lower net Treasury 498 459 8 interest inco

  14. Slide 14: 1H treasury customer income up 26% to record, Markets trading income little changed

    1H treasury customer income up 26% to record, Markets trading income little changed 859 (S$m) 1,610 751 1,381 635 643 553 CBG and IBG 613 1,177 treasury 935 564 customer income 458 477 440 Markets trading 246 446 433 177 166 187 income 113 1H23 1H24 2Q23 3Q23 4Q23 1Q24 2Q24 YoY (%) CBG and IBG treas

  15. Slide 15: 1H Hong Kong net profit down 2% YoY, up 3% HoH; ROE at 19%

    1H Hong Kong net profit down 2% YoY, up 3% HoH; ROE at 19% Constant- (S$m) 1H24 YoY % currency YoY%  Total income up 6% to record, driven Total income 1,679 7 6 by wealth management and trading income Expenses 626 9 8  Net interest income stable despite Profit before allowances 1,053 5 4 sluggish

  16. Slide 16: NPL ratio unchanged at 1.1%

    NPL ratio unchanged at 1.1% (S$m) 1H23 1H24 2Q23 3Q23 4Q23 1Q24 2Q24 NPAs at start of period 5,125 5,056 4,951 4,990 5,303 5,056 5,221 IBG and others (138) (77) (5) (41) (139) 75 (152) New NPAs 379 417 166 224 127 317 191 Upgrades, settlements and recoveries (385) (413) (139) (221) (139) (196) (308)

  17. Slide 17: 2Q SP at 8bp, 1H at 9bp

    2Q SP at 8bp, 1H at 9bp (S$m) 1H23 1H24 2Q23 3Q23 4Q23 1Q24 2Q24 IBG and others 81 (6) 57 114 25 5 (11) Add charges for 185 93 110 160 76 54 50 New NPLs 104 68 87 97 15 45 29 Existing NPLs 81 25 23 63 61 9 21 Subtract charges for 104 99 53 46 51 49 61 Upgrades 1 15 0 4 2 0 15 Settlements 80 67 39 34

  18. Slide 18: Allowance coverage rises to 129%

    Allowance coverage rises to 129% 6,631 6,476 6,527 6,550 (S$m) 6,327 3,910 3,896 3,927 3,981  Allowance coverage GP 3,802 comfortably above 100% and exceeds 200% after considering collateral SP 2,525 2,721 2,580 2,600 2,569 Jun 23 Sep 23 Dec 23 Mar 24 Jun 24 Total allowance reserves as % of: NPA 12

  19. Slide 19: Strong CET-1 and leverage ratios

    Strong CET-1 and leverage ratios (%) 16.1 16.2 16.2 15.8 15.9 0.8 0.9 0.8 Tier 2 1.1 1.1 0.7 0.6 0.6 Additional Tier 1 0.6 0.7 14.6 14.7 14.8 Common Equity Tier 1 14.1 14.1 Jun 23 Sep 23 Dec 23 Mar 24 Jun 24 RWA (S$bn) 371 372 368 378 386 Leverage ratio (%) 6.5 6.4 6.6 6.5 6.5 19

  20. Slide 20: 2Q dividend at 54 cents per share

    2Q dividend at 54 cents per share (S¢ per share) 175 136 49 4Q 38 44 3Q 33 54 44 2Q 33 54 1Q 33 38 2022 2023 2024 Excludes special dividend in 2022 Dividends prior to 1Q24 adjusted for one-for-10 bonus issue announced on 7 Feb 2024 20

  21. Slide 21: In summary

    In summary Delivered another strong quarter, bringing first half earnings to new high with ROE at 18.8% Heightened uncertainty from recent market volatility and ongoing geopolitical tensions Resilience built against economic slowdown and lower interest rates High general allowance reserves, reduced

  22. Slide 22: Supplementary slides

    Supplementary slides DBS Group Holdings 2Q 2024 financial results August 7, 2024 Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. DBS Bank accepts no liability wh

  23. Slide 23: 1H net profit up 9% to record $5.76bn

    1H net profit up 9% to record $5.76bn (S$m) 1H24 1H23 YoY % Commercial book total income 10,606 9,535 11 Net interest income 7,416 6,965 6 Net fee and commission income 2,091 1,674 25 Treasury customer sales and other income 1,099 896 23 Markets trading income 433 446 (3) Net interest income (317) (

  24. Slide 24: 1H Hong Kong net profit down 2%

    1H Hong Kong net profit down 2% Constant-currency terms (S$m) 1H24 1H23 YoY % YoY % Net interest income 1,034 1,035 (0) (1) Net fee and commission income 411 350 17 16 Other non-interest income 234 189 24 23 Total income 1,679 1,574 7 6 Expenses 626 573 9 8 Profit before allowances 1,053 1,001 5 4 G

  25. Slide 25: NPL ratio at 1.1%, allowance coverage above 100%

    NPL ratio at 1.1%, allowance coverage above 100% NPL ratio (%) 1.1 1.2 1.1 1.1 1.1 NPA (S$m) 4,990 5,303 5,056 5,221 5,077 Not overdue 33% 34% 36% 35% 35% Within 90 days overdue 6% 8% 7% 6% 8% More than 90 days overdue 61% 58% 57% 59% 57% Jun 23 Sep 23 Dec 23 Mar 24 Jun 24 SP / loans (bp) 10 18 11 1

  26. Slide 26: Fixed income duration remains short

    Fixed income duration remains short ($m) Jun 24 FVOCI HTC Government securities 33,526 24,415 Less than 3 years 25,504 8,014 3 to 5 years 3,400 3,921 5 to 10 years 3,767 11,979 More than 10 years 855 501 Supranational, bank and corporate bonds 20,529 41,448 Total 54,055 65,863 Time-banding is based

  27. Slide 27: Deposits up 2% HoH and 6% YoY in constant-currency terms

    Deposits up 2% HoH and 6% YoY in constant-currency terms (S$bn) HoH (%) YoY (%) Jun 24 Reported Underlying Reported Underlying Deposits 551 3 2 6 6 By product Casa 278 (3) (4) (5) (5) Fixed deposits and others 273 10 8 20 20 By currency Singapore dollar 196 2 2 (5) (5) US dollar 220 5 2 10 10 HK dol

  28. Slide 28: 1H Wealth Management segment income up 21%

    1H Wealth Management segment income up 21% Total income 2,620 1,325 1,295 (S$m) 1,145 1,123 2,157 1,083 Net interest income Non-interest income 1H23 1H24 2Q23 3Q23 4Q23 1Q24 2Q24 (S$bn) AUM 320 396 320 353 365 382 396 Earning assets 371 447 371 405 415 433 447 Comprising Treasures, Treasures Private

  29. Slide 29: 1H GTS income down 3%

    1H GTS income down 3% 1,263 1,274 1,244 Total income 2,476 1,199 1,204 2,402 (S$m) Cash / SFS Trade 1H23 1H24 2Q23 3Q23 4Q23 1Q24 2Q24 (S$bn) Trade assets 47 47 47 45 44 46 47 Deposits 187 192 187 183 190 191 192 29

  30. Slide 30: Record first-half income and earnings

    Record first-half income and earnings DBS Group Holdings 2Q 2024 financial results August 7, 2024 Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. DBS Bank accept

DBS Group Holdings — Q2 2024 Earnings Presentation on 6ix