Dbs Group Holdings Ltd · SGX:D05
Dbs — Q3 2022 Earnings Presentation
16 slides from Dbs's earnings presentation, Nov 3, 2022
Slide 1: Record third-quarter and nine-month performance
Record third-quarter and nine-month performance DBS Group Holdings 3Q 2022 financial results November 3, 2022 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
Slide 2: Highlights
Highlights Third-quarter net profit up 23% QoQ to $2.24 billion, ROE at 16.3%, both at new highs ▪ Total income up 20% to record $4.54 billion from higher NIM and sustained business momentum ▪ NIM up 32bp to 1.90%, accelerating from first two quarters ▪ Loan momentum healthy as non-trade corporate a
Slide 3: 3Q net profit up 23% QoQ to record as total income rises 20%
3Q net profit up 23% QoQ to record as total income rises 20% (S$m) 3Q22 QoQ % ▪ Net interest income up 23% from NIM increase Total income record 4,544 20 of 32bp and healthy loan momentum Expenses 1,825 10 ▪ Fee income stable record Profit before allowances 2,719 27 ▪ Other non-interest income up 32
Slide 4: 9M net profit up 8% to new high
9M net profit up 8% to new high (S$m) 9M22 YoY % ▪ Net interest income up 22% from NIM increase of Total income record 12,083 10 20bp and loan growth of 6% Expenses 5,127 7 ▪ Fee income falls 10% as lower wealth management record and investment banking more than offset growth in Profit before allowa
Slide 5: 3Q net interest income up 23% QoQ as NIM surges 32bp to 1.90%
3Q net interest income up 23% QoQ as NIM surges 32bp to 1.90% 2.30 Net interest margin (%) 1.94 1.85 1.65 1.64 1.90 Commercial book 1.65 1.58 Group 1.46 1.45 Net interest income (S$m) 7,661 3,020 347 31 6,300 2,454 TM 602 2,187 134 182 7,314 2,989 Commercial 2,320 5,698 2,005 book 9M21 9M22 1Q22 2Q2
Slide 6: 3Q loan momentum healthy from faster non-trade corporate and housing loan growth
3Q loan momentum healthy from faster non-trade corporate and housing loan growth (S$bn) 435 Others 5 In constant-currency +16 terms CBG / WM 126 +8 +2 ▪ 3Q non-trade corporate +6 loan growth of S$8bn +6 +2 higher than first and +8 second quarters +15 +4 ▪ 3Q consumer loans up Other +2 S$1bn from hig
Slide 7: Deposits stable QoQ, up 5% over 9M
Deposits stable QoQ, up 5% over 9M 575 580 (S$bn) 555 47 48 53 121 146 183 Loans Other funding FD and others Casa 409 425 429 381 382 350 Dec-21 Jun-22 Sep-22 HQLA (S$bn) 126 140 138 Ratios (%) LDR 81 80 81 LCR 135 142 133 NSFR 123 118 114 HQLA is high quality liquid assets; Other funding comprises
Slide 8: 3Q fee income stable QoQ as continued recovery in cards and higher loan-related fees
3Q fee income stable QoQ as continued recovery in cards and higher loan-related fees offset wealth management (S$m) 3,103 1,026 Investment 154 2,862 40 banking 917 923 98 30 25 Wealth management 1,406 1,068 461 337 323 380 122 Loan-related 336 106 114 Cards 514 613 180 203 223 Transaction services 6
Slide 9: 3Q cost-income ratio improves 4%pt QoQ to 40%
3Q cost-income ratio improves 4%pt QoQ to 40% 47 Cost / income 44 (%) 44 42 40 5,127 1,825 (S$m) 4,798 1,668 1,658 Staff 3,173 1,119 2,926 1,013 1,007 expenses Other 1,872 1,954 655 651 706 expenses 9M21 9M22 3Q21 2Q22 3Q22 9
Slide 10: NPL ratio improves QoQ to 1.2% as higher upgrades and repayments more than offset new NPA formation
NPL ratio improves QoQ to 1.2% as higher upgrades and repayments more than offset new NPA formation (S$m) 9M21 9M22 1Q22 2Q22 3Q22 NPAs at start of period 6,686 5,849 5,849 5,981 5,908 IBG and others (207) (257) 187 (98) (346) New NPAs 851 948 465 271 278 Upgrades, settlements and recoveries (780) (
Slide 11: 9M specific allowances halve to 8bp
9M specific allowances halve to 8bp (S$m) 9M21 9M22 1Q22 2Q22 3Q22 IBG and others 298 167 122 52 (7) Add charges for 483 341 189 91 74 New NPLs 255 240 157 58 7 Existing NPLs 228 101 32 33 67 Subtract charges for 185 174 67 39 81 Upgrades 1 45 0 0 45 Settlements 147 103 62 28 26 Recoveries 37 26 5 1
Slide 12: GP reserves rise to S$3.9bn
GP reserves rise to S$3.9bn (S$m) 6,802 6,692 6,707 GP 3,876 3,737 3,902 Allowance coverage comfortably exceeds 100%, and 200% after considering collateral SP 2,926 2,955 2,805 Dec-21 Jun-22 Sep-22 Total allowance reserves as % of: NPA 116 113 120 Unsecured NPA 214 199 216 12
Slide 13: Strong CET-1 and leverage ratios
Strong CET-1 and leverage ratios (%) 17.0 16.7 16.2 Tier 2 1.9 1.8 Additional Tier 1 1.7 0.7 0.7 0.7 Common Equity Tier 1 14.4 14.2 13.8 Dec-21 Jun-22 Sep-22 RWA (S$bn) 343 349 361 Leverage ratio (%) 6.7 6.2 6.1 13
Slide 14: 3Q dividend at 36 cents per share
3Q dividend at 36 cents per share (S¢ per share) 36 36 4Q 18 33 3Q 18 36 2Q 18 33 1Q 33 36 18 2020 2021 2022 14
Slide 15: In summary – record 3Q and 9M performance
In summary – record 3Q and 9M performance Record 3Q and 9M results amidst challenging conditions demonstrate a high-returns and resilient franchise Business momentum sustained, inherent value of deposit franchise more fully realised, asset quality healthy Record 3Q ROE of 16.3% underscores significa
Slide 16: Record third-quarter and nine-month performance
Record third-quarter and nine-month performance DBS Group Holdings 3Q 2022 financial results November 3, 2022 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