Dbs Group Holdings Ltd · SGX:D05
Dbs — Q1 2021 Earnings Presentation
15 slides from Dbs's earnings presentation, Apr 30, 2021
Slide 1: Record first-quarter performance
Record first-quarter performance DBS Group Holdings 1Q 2021 financial results April 30, 2021 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
Slide 2: Highlights
Highlights Quarterly net profit crosses $2bn for the first time in DBS’ history ▪ Strong business momentum with faster loan growth, record fee income ▪ NPA formation and SP at pre-pandemic levels despite tapering of loan moratoriums Broad-based business momentum mitigates impact of lower interest ra
Slide 3: Quarterly net profit crosses $2bn for first time
Quarterly net profit crosses $2bn for first time (S$m) 1Q21 YoY % ▪ Total income would have increased 9% if NIM had been stable Total income 3,854 (4) ▪ Net interest income down 15% from lower interest Expenses 1,587 2 rates, mitigated by higher loan volumes Profit before allowances 2,267 (8) ▪ Fee
Slide 4: Net interest income up 2% on quarter on day-adjusted basis
Net interest income up 2% on quarter on day-adjusted basis Net interest 1.86 margin (%) 1.62 1.53 1.49 1.49 Net interest 2,482 income (S$m) 2,303 2,171 2,120 2,107 1Q20 2Q20 3Q20 4Q20 1Q21 4
Slide 5: Loans up 3% on quarter from broad-based growth
Loans up 3% on quarter from broad-based growth 393 Others (S$bn) 8 ▪ Singapore housing loans CBG / rise 1% following strong 117 WM bookings in current and FY20: +16 recent quarters ▪ Non-trade corporate loans up 2% from broad-based growth across the region Other +12 and a range of industries 227 +10
Slide 6: Deposits up 2% on quarter from Casa inflows
Deposits up 2% on quarter from Casa inflows (S$bn) 498 508 518 496 493 43 40 51 50 46 Loans 127 125 151 136 Other funding 185 FD and others Casa 386 369 375 371 371 338 353 296 310 260 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 HQLA (S$bn) 92 108 107 116 118 Ratios (%) LDR 83 84 83 80 81 LCR 133 135 135 139
Slide 7: Fee income at record, wealth management and transaction services at new high
Fee income at record, wealth management and transaction services at new high 1,086 (S$m) 49 962 Investment 36 913 banking 41 872 786 44 27 519 Wealth 418 management 399 365 324 Loan-related 126 119 111 80 100 Cards 173 177 169 131 160 Transaction 209 204 202 206 230 services 1Q20 2Q20 3Q20 4Q20 1Q21
Slide 8: Expenses up 2% on year due to LVB, cost-income ratio at 41%
Expenses up 2% on year due to LVB, cost-income ratio at 41% 43 48 Cost / income 39 40 41 (%) (S$m) 1,556 1,539 1,580 1,587 1,483 Staff 882 901 895 968 expenses 872 Other 674 611 638 685 619 expenses 1Q20 2Q20 3Q20 4Q20 1Q21 8
Slide 9: Asset quality healthy, NPA formation half 2020 quarterly average
Asset quality healthy, NPA formation half 2020 quarterly average (S$m) 1Q20 2Q20 3Q20 4Q20 1Q21 NPAs at start of period 5,773 6,592 6,354 6,517 6,686 IBG and others 620 (201) 236 135 (153) New NPAs 1,023 115 543 541 271 Upgrades, settlements and recoveries (340) (201) (78) (240) (272) Write-offs (63
Slide 10: SP of 21bp at pre-pandemic levels
SP of 21bp at pre-pandemic levels (S$m) 1Q20 2Q20 3Q20 4Q20 1Q21 IBG and others 257 146 189 282 164 Add charges for 359 165 212 293 181 New NPLs 315 16 161 153 103 Existing NPLs 44 149 51 140 78 Subtract charges for 102 19 23 11 17 Upgrades 0 0 0 0 0 Settlements 100 15 14 8 12 Recoveries 2 4 9 3 5 C
Slide 11: GP reserves of $4.13bn remain prudent
GP reserves of $4.13bn remain prudent 7,326 Prudent GP reserves 6,986 7,191 6,721 ▪ Balance sheet remains well- (S$m) 6,080 fortified 4,017 4,312 4,131 ▪ GP reserves raised beyond 3,799 GP 3,232 Tier-2 eligibility by $1.3bn, forming a buffer for the total capital adequacy ratio ▪ GP reserves exceed
Slide 12: CET-1 up 0.4%pt on quarter to 14.3%
CET-1 up 0.4%pt on quarter to 14.3% (%) 17.5 16.8 16.6 16.8 16.8 Tier 2 1.7 1.7 2.1 1.7 1.8 Additional Tier 1 1.2 1.2 1.1 1.1 1.2 Common Equity Tier 1 13.9 13.7 13.9 13.9 14.3 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 RWA (S$bn) 320 323 321 321 322 Leverage ratio (%) 6.9 6.8 6.9 6.8 6.7 12
Slide 13: Dividend at 18 cents per share
Dividend at 18 cents per share (S¢ per share) Final 33 30 18 18 Interim 30 18 30 33 18 1Q 2019 2020 2021 13
Slide 14: In summary – Record first-quarter performance
In summary – Record first-quarter performance Extraordinary quarter with all cylinders firing Disciplined on costs, asset quality resilient Strengthening economic rebound provides favourable environment Prospects enhanced with new growth platforms, including stakes in Shenzhen Rural Commercial Bank
Slide 15: Record first-quarter performance
Record first-quarter performance DBS Group Holdings 1Q 2021 financial results April 30, 2021 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