Dbs Group Holdings Ltd · SGX:D05
Dbs — Q4 2022 Earnings Presentation
30 slides from Dbs's earnings presentation, Feb 13, 2023
Slide 1: Record full-year and quarterly earnings and ROE
Record full-year and quarterly earnings and ROE DBS Group Holdings 4Q 2022 financial results February 13, 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 presentation. DB
Slide 2: Additional disclosures on net interest income drivers and contributions from associates
Additional disclosures on net interest income drivers and contributions from associates Net interest income (NII) from Commercial book and Treasury Markets (TM) ▪ Separate presentation of Commercial book and TM NII introduced to enhance transparency of customer franchise performance trends ▪ Commerc
Slide 3: Highlights
Highlights Record full-year total income of $16.5 billion, net profit of $8.19 billion and ROE of 15% ▪ Commercial book total income up 21% to $15.3 billion o Net interest income rises 40% from 48bp increase in NIM to 2.11% and 4% loan growth o Partially offset by lower wealth management and investm
Slide 4: Full-year net profit up 20% to record as total income rises 16%
Full-year net profit up 20% to record as total income rises 16% (S$m) FY22 YoY % ▪ Commercial book total income rises 21% Total income record 16,502 16 o Net interest income up 40% from higher NIM and Commercial book 15,328 21 loan growth, partially offset by lower wealth Treasury Markets (TM) 1,174
Slide 5: 4Q net profit and total income at new quarterly high
4Q net profit and total income at new quarterly high (S$m) 4Q22 QoQ % ▪ Commercial book total income up 4% QoQ Total income record 4,590 2 o Net interest income up 14% as NIM rises 31bp to Commercial book 4,386 4 2.61%, partially offset by lower non-interest Treasury Markets (TM) 204 (24) income due
Slide 6: 4Q Commercial book net interest income up 14% QoQ as NIM rises 31bp to 2.61%
4Q Commercial book net interest income up 14% QoQ as NIM rises 31bp to 2.61% Net interest margin (%) 2.61 2.11 2.30 1.85 Commercial book 1.63 1.65 2.05 1.75 1.90 1.58 Group 1.45 1.46 Net interest income (S$m) 10,941 3,280 3,020 222 31 2,454 8,440 2,187 Treasury 134 783 182 Markets 3,405 10,719 2,989
Slide 7: 4Q loans decline slightly, underlying demand remains healthy
4Q loans decline slightly, underlying demand remains healthy (S$bn) 420 Others 5 In constant-currency +8 terms +2 CBG / WM 123 +14 ▪ 4Q loans decline $2bn +6 from lower non-trade +6 +2 corporate loans and +8 wealth management loans +4 +13 +2 ▪ Full-year loans up 4% Other +1 248 or $14bn as growth in
Slide 8: Deposits rise 2% on quarter, 7% from year ago in constant-currency terms
Deposits rise 2% on quarter, 7% from year ago in constant- currency terms (S$bn) 566 575 580 574 555 46 47 48 47 53 Loans 127 146 121 183 209 Other funding FD and others Casa 409 416 392 425 429 415 381 382 350 318 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 HQLA (S$bn) 126 134 140 138 145 Ratios (%) LDR 81
Slide 9: Full-year fee income declines, with lower wealth management and investment banking moderated by record card fees
Full-year fee income declines, with lower wealth management and investment banking moderated by record card fees (S$m) 4,057 1,022 Investment 218 3,697 43 923 917 banking 121 30 25 835 23 Wealth 408 management 1,786 1,330 337 323 262 459 Loan-related 413 144 114 122 79 Cards 715 858 187 203 223 245
Slide 10: 4Q underlying cost-income ratio stable QoQ at 41%
4Q underlying cost-income ratio stable QoQ at 41% 45 44 Cost / income 46 (%) 43 43 41 41 7,090 1,963 (S$m) 6,469 1,825 1,644 1,658 Staff 4,376 1,203 expenses 3,875 1,119 1,047 1,007 Other 2,594 2,714 651 706 760 expenses 597 FY21 FY22 1Q22 2Q22 3Q22 4Q22 10
Slide 11: Full-year CBG total income up 25% from higher interest rates
Full-year CBG total income up 25% from higher interest rates (S$m) FY22 FY21 YoY % ▪ Full-year total income up 25% to Total income 6,654 5,322 25 $6.65bn Loans and deposits 3,999 2,263 77 ▪ Higher loan and deposit income from higher interest rates more than offsets Investment products 1,815 2,221 (1
Slide 12: Full-year Wealth Management total income rises 20% to record
Full-year Wealth Management total income rises 20% to record, AUM and net new money also at new highs 940 917 Total income 3,272 (S$m) 2,729 753 661 Net interest income Non-interest income FY21 FY22 1Q22 2Q22 3Q22 4Q22 (S$bn) Change* (S$bn) QoQ YoY AUM 291 297 293 294 293 297 +8 +9 Earning assets 34
Slide 13: Full-year IBG total income up 28% as cash management income more than doubles
Full-year IBG total income up 28% as cash management income more than doubles (S$m) FY22 FY21 YoY % ▪ Full-year total income up 28% to Total income 7,688 5,984 28 $7.69bn Loans 3,445 3,300 4 ▪ Broad-based growth led by cash Trade 764 757 1 management income, which more than doubles from higher inter
Slide 14: Full-year TM and customer income decline from year-ago record
Full-year TM and customer income decline from year-ago record (S$m) 3,214 866 2,820 674 704 Customer 1,705 435 575 1,645 403 435 372 1,509 431 TM 1,174 271 269 204 FY21 FY22 1Q22 2Q22 3Q22 4Q22 YoY (%) Customer 13 (3) (11) (5) 5 (1) TM 5 (22) (25) (25) (30) 6 Treasury Markets business unit income ex
Slide 15: Hong Kong full-year earnings up 19%
Hong Kong full-year earnings up 19% Constant- (S$m) FY22 YoY % currency YoY % ▪ Total income up 16% led by increase Total income 2,923 18 16 in net interest income from higher Expenses 1,137 8 6 interest rates Profit before allowances 1,786 26 23 ▪ Expenses up 6% from higher staff costs, cost-income
Slide 16: NPA declines 8% QoQ as repayments, write-offs and currency effects more than offset new NPA formation
NPA declines 8% QoQ as repayments, write-offs and currency effects more than offset new NPA formation (S$m) FY21 FY22 1Q22 2Q22 3Q22 4Q22 NPAs at start of period 6,686 5,849 5,849 5,981 5,908 5,600 IBG and others (872) (464) 187 (98) (346) (207) New NPAs 1,006 1,157 465 271 278 350 Upgrades, settlem
Slide 17: 4Q SP remains low at 6bp, full-year SP at 8bp
4Q SP remains low at 6bp, full-year SP at 8bp (S$m) FY21 FY22 1Q22 2Q22 3Q22 4Q22 IBG and others 344 194 122 52 (7) 27 Add charges for 586 465 189 91 74 152 New NPLs 346 307 157 58 7 67 Existing NPLs 240 158 32 33 67 85 Subtract charges for 242 271 67 39 81 125 Upgrades 1 47 0 0 45 2 Settlements 196
Slide 18: Allowance coverage at 122%
Allowance coverage at 122% (S$m) 6,802 6,814 6,692 6,707 6,242 ▪ Allowance coverage GP 3,876 3,754 3,737 3,902 comfortably above 3,736 100% and exceeds 200% after considering collateral SP 2,926 3,060 2,955 2,805 2,506 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Total allowance reserves as % of: NPA 116 114
Slide 19: Strong CET-1 and leverage ratios
Strong CET-1 and leverage ratios (%) 17.0 16.7 17.0 16.5 16.2 Tier 2 1.9 1.8 1.8 1.8 1.7 Additional Tier 1 0.7 0.7 0.6 0.7 0.7 Common Equity Tier 1 14.4 14.0 14.2 13.8 14.6 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 RWA (S$bn) 343 351 349 361 347 Leverage ratio (%) 6.7 6.3 6.2 6.1 6.4 19
Slide 20: Ordinary quarterly dividend rises to 42 cents per share, special dividend of 50 cents
Ordinary quarterly dividend rises to 42 cents per share, special dividend of 50 cents (S¢ per share) 200 50 Special 120 42 Ordinary 87 36 36 4Q 18 33 3Q 18 36 2Q 18 33 1Q 33 36 18 2020 2021 2022 20
Slide 21: In summary – record full-year and quarterly earnings and ROE
In summary – record full-year and quarterly earnings and ROE Record ROE of 15% for full year and 17% for 4Q reflect benefit of higher rates and significant structural gains from decade-long transformation Commercial book total income growth of 21% for full year and 43% for fourth quarter attest to o
Slide 22: Supplementary slides
Supplementary slides DBS Group Holdings 4Q 2022 financial results February 13, 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 Bank accepts no liability
Slide 23: Full-year earnings up 20% to record $8.19 billion
Full-year earnings up 20% to record $8.19 billion (S$m) FY22 FY21 YoY % Net interest income 10,941 8,440 30 Fee income 3,091 3,524 (12) Trading income 2,313 1,791 29 Other income 157 433 (64) Non-interest income 5,561 5,748 (3) Total income 16,502 14,188 16 Staff expenses 4,376 3,875 13 Other expens
Slide 24: Full-year Hong Kong earnings up 19%
Full-year Hong Kong earnings up 19% Constant-currency terms (S$m) FY22 FY21 YoY % YoY % Net interest income 1,844 1,392 32 30 Net fee and commission income 672 776 (13) (15) Other non-interest income 407 312 30 28 Total income 2,923 2,480 18 16 Expenses 1,137 1,057 8 6 Profit before allowances 1,786
Slide 25: NPL at 1.1%, allowance coverage above 100%
NPL at 1.1%, allowance coverage above 100% 1.3 1.3 1.3 1.2 1.1 NPL ratio (%) NPA (S$m) 5,849 5,981 5,908 5,600 5,125 Not overdue 24% 27% 30% 24% 30% Within 90 days overdue 7% 7% 9% 4% 6% More than 90 days overdue 69% 66% 66% 68% 64% Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 SP / loans (bp) 6 15 8 2 6 Total
Slide 26: Fixed income duration remains short
Fixed income duration remains short ($m) Dec 22 FVOCI HTC Government securities 28,158 23,595 Less than 3 years 20,942 10,143 3 to 5 years 2,998 4,796 5 to 10 years 3,749 7,643 More than 10 years 469 1,013 Supranational, bank and corporate bonds 20,219 31,679 Total 48,377 55,274 Time-banding is base
Slide 27: Deposits up 2% HoH and 7% YoY in constant-currency terms
Deposits up 2% HoH and 7% YoY in constant-currency terms (S$bn) HoH (%) YoY (%) Dec-22 Reported Underlying Reported Underlying Deposits 527 (0) 2 5 7 By product Casa 318 (17) (15) (17) (16) Fixed deposits and others 209 43 49 74 80 By currency Singapore dollar 213 (5) (5) (3) (3) US dollar 198 5 9 1
Slide 28: Full-year GTS total income up 86% to record
Full-year GTS total income up 86% to record Total income (S$m) 3,263 1,158 964 674 1,759 466 Cash / SFS Trade FY21 FY22 1Q22 2Q22 3Q22 4Q22 (S$bn) Trade assets 48 51 52 57 53 51 Deposits 186 197 196 199 197 197 Assets and deposits at end of period 28
Slide 29: Full-year SME segment income up 48%
Full-year SME segment income up 48% Total income (S$m) 2,050 659 590 1,389 444 357 Net interest income Non-interest income FY21 FY22 1Q22 2Q22 3Q22 4Q22 (S$bn) Loans 27 27 27 28 28 27 Deposits 72 70 71 74 72 70 With effect from 1 January 2022, the SME segment is defined as companies with annual reve
Slide 30: Record full-year and quarterly earnings and ROE
Record full-year and quarterly earnings and ROE DBS Group Holdings 4Q 2022 financial results February 13, 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 presentation. DB