DBS Group Holdings Ltd · SGX:D05
DBS — Q3 2023 Earnings Presentation
18 slides from DBS's earnings presentation, Nov 6, 2023
Slide 1: Record third-quarter income and nine-month performance
Record third-quarter income and nine-month performance DBS Group Holdings 3Q 2023 financial results November 6, 2023 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 presentati
Slide 2: Highlights
Highlights 3Q net profit up 18% to $2.63bn, total income increases 16% to record $5.19bn ▪ Commercial book total income up 19% YoY to $5.03bn o NIM expands 52bp from higher rates o Net fee income grows 9% YoY from higher wealth management, cards and loan-related fees o Treasury customer sales and ot
Slide 3: 3Q net profit up 18% YoY as total income rises to new high
3Q net profit up 18% YoY as total income rises to new high (S$m) 3Q23 YoY % record Total income 5,192 16 ▪ Commercial book total income up 19% as NIM Commercial book 5,026 19 expands 52bp and non-interest income growth is Treasury Markets (TM) 166 (38) sustained Expenses 2,038 12 ▪ TM income decline
Slide 4: 3Q net profit down 2% from record previous quarter
3Q net profit down 2% from record previous quarter (S$m) 3Q23 QoQ % record Total income 5,192 3 ▪ Commercial book total income up 3% from higher Commercial book 5,026 3 net interest income and broad-based non-interest Treasury Markets (TM) 166 (6) income growth Expenses 2,038 6 ▪ TM income 6% lower
Slide 5: 9M net profit up 35% to new high
9M net profit up 35% to new high (S$m) 9M23 YoY % record Total income 15,173 27 ▪ Commercial book total income rises 33% from NIM Commercial book 14,561 33 expansion of 83bp and broad-based non-interest Treasury Markets (TM) 612 (37) income growth Expenses 5,851 14 ▪ TM income declines 37% from high
Slide 6: 3Q commercial book net interest income up 3% QoQ, NIM stable at 2.82%
3Q commercial book net interest income up 3% QoQ, NIM stable at 2.82% Net interest margin (%) 2.81 2.82 2.77 2.69 Commercial book 1.94 2.16 2.12 2.16 2.19 Group 1.65 3,433 3,504 Net interest income (S$m) 10,208 3,271 7,661 Treasury 347 Markets 10,649 3,384 3,581 3,684 Commercial 7,314 book -441 -113
Slide 7: Loans up 1% QoQ in constant-currency terms from Citi Taiwan
Loans up 1% QoQ in constant-currency terms from Citi Taiwan (S$bn) Others In constant-currency terms 426 ▪ Loans up 1% or $5bn QoQ Citi TW 10 ▪ Citi Taiwan consolidation contributed $10bn CBG / WM 122 ▪ Trade loans decline QoQ due to unattractive pricing while non-trade corporate +10 +10 loans lower
Slide 8: Deposits up 2% QoQ in constant-currency terms from Citi Taiwan
Deposits up 2% QoQ in constant-currency terms from Citi Taiwan (S$bn) 580 574 576 567 579 48 47 47 47 48 12 Loans 183 209 227 228 242 Other funding FD and others Casa 429 415 417 416 420 Citi TW 350 318 302 292 277 Sep 22 Dec 22 Mar 23 Jun 23 Sep 23 HQLA (S$bn) 138 145 144 149 146 Ratios (%) LDR 81
Slide 9: 3Q fee income up YoY and QoQ
3Q fee income up YoY and QoQ (S$m) 3,055 2,862 96 1,048 999 Investment 98 21 banking 923 31 25 1,135 Wealth 1,068 393 management 377 323 412 137 Loan-related 380 133 122 Cards 613 733 269 223 237 Transaction services 703 679 230 221 228 9M22 9M23 3Q22 2Q23 3Q23 Gross fee income 9
Slide 10: Commercial book accounts for majority of non-interest income
Commercial book accounts for majority of non-interest income (S$m) 4,965 1,688 1,612 4,251 1,471 1,053 346 325 623 238 Other non-interest income 1,395 464 499 1,198 462 Net fee income 2,430 2,517 771 823 843 9M22 9M23 3Q22 2Q23 3Q23 Commercial book 3,628 3,912 1,233 1,287 1,342 TM 623 1,053 238 325
Slide 11: Underlying 3Q expenses up 4% QoQ, cost-income ratio at 39%
Underlying 3Q expenses up 4% QoQ, cost-income ratio at 39% Cost / income 43 41 (%) 39 39 38 5,851 2,038 1,931 (S$m) 5,127 1,825 3,691 1,261 Staff 1,119 1,215 3,173 expenses Other 2,160 777 1,954 706 716 expenses 9M22 9M23 3Q22 2Q23 3Q23 11
Slide 12: NPA up 6% QoQ due to Citi Taiwan
NPA up 6% QoQ due to Citi Taiwan (S$m) 9M22 9M23 1Q23 2Q23 3Q23 NPAs at start of period 5,849 5,125 5,125 4,951 4,990 IBG and others (257) (173) (133) (5) (41) New NPAs 948 588 218 166 224 Upgrades, settlements and recoveries (786) (585) (251) (139) (221) Write-offs (419) (176) (100) (32) (44) CBG /
Slide 13: 3Q SP at 18bp, 9M at 11bp
3Q SP at 18bp, 9M at 11bp (S$m) 9M22 9M23 1Q23 2Q23 3Q23 IBG and others 167 195 24 57 114 Add charges for 341 337 84 110 160 New NPLs 240 224 17 87 97 Existing NPLs 101 113 67 23 63 Subtract charges for 174 142 60 53 46 Upgrades 45 5 1 0 4 Settlements 103 106 50 39 34 Recoveries 26 31 9 14 8 CBG / W
Slide 14: Allowance coverage at 125%
Allowance coverage at 125% (S$m) 6,707 6,631 6,242 6,266 6,327 GP 3,902 3,910 ▪ Allowance coverage 3,736 3,831 3,802 comfortably above 100% and exceeds 200% after considering collateral SP 2,805 2,721 2,506 2,435 2,525 Sep 22 Dec 22 Mar 23 Jun 23 Sep 23 Total allowance reserves as % of: NPA 120 122
Slide 15: Strong CET-1 and leverage ratios
Strong CET-1 and leverage ratios (%) 17.0 16.2 16.5 1.8 15.8 15.9 Tier 2 1.5 1.7 1.1 1.1 Additional Tier 1 0.6 0.6 0.7 0.6 0.7 Common Equity Tier 1 14.6 14.4 14.1 14.1 13.8 Sep 22 Dec 22 Mar 23 Jun 23 Sep 23 RWA (S$bn) 361 347 353 371 372 Leverage ratio (%) 6.1 6.4 6.4 6.5 6.4 15
Slide 16: 3Q dividend at 48 cents per share
3Q dividend at 48 cents per share (S¢ per share) Ordinary Special 42 48 4Q 36 36 3Q 33 48 36 2Q 33 50 36 42 1Q 18 2021 2022 2023 16
Slide 17: In summary
In summary Record third-quarter income and nine-month performance driven by continued expansion in net interest margin and sustained growth in commercial book non-interest income Successful integration of Citi Taiwan progresses our strategy of building meaningful scale in our growth markets Higher-f
Slide 18: Record third-quarter income and nine-month performance
Record third-quarter income and nine-month performance DBS Group Holdings 3Q 2023 financial results November 6, 2023 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 presentati