Dbs Group Holdings Ltd · SGX:D05

Dbs — Q3 2024 Earnings Presentation

21 slides from Dbs's earnings presentation, Nov 7, 2024

  1. Slide 1: Record quarterly and nine-month performance

    Record quarterly and nine-month performance DBS Group Holdings 3Q 2024 financial results November 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 Ban

  2. Slide 2: Highlights

    Highlights Third-quarter net profit up 15% YoY to surpass $3bn for first time  Total income up 11% to $5.75bn from broad-based growth o Commercial book NII rises from balance sheet growth and stable NIM of 2.83% o Record fee income led by wealth management; treasury customer sales also higher o Mar

  3. Slide 3: Board establishes new share buyback programme of $3bn

    Board establishes new share buyback programme of $3bn Shares will be purchased in open market and cancelled for first time  To be carried out at management’s discretion and subject to market conditions  Over and above periodic share buybacks for vesting employee share plans Programme will reduce f

  4. Slide 4: Dividends continue to be primary means of capital distribution

    Dividends continue to be primary means of capital distribution (S$bn) Ordinary Special 2x Ordinary dividends have doubled since 2019 to an 6.1 annualised $6.1bn, reflecting 5.2 5.0 significant structural improvements of franchise 1.3 3.1 3.1 Dividend yield currently at 5.5% 2.2 3.9 Buyback programme

  5. Slide 5: 3Q net profit up 15% YoY to cross $3bn

    3Q net profit up 15% YoY to cross $3bn (S$m) 3Q24 YoY % Total income record 5,753 11  Commercial book net interest income rises 3% from balance sheet growth and stable NIM Commercial book 5,422 8 Markets trading 331 99  Record fee income led by wealth management; Expenses 2,249 10 treasury custome

  6. Slide 6: 3Q net profit up 8% QoQ as total income rises 5%

    3Q net profit up 8% QoQ as total income rises 5% (S$m) 3Q24 QoQ % record Total income 5,753 5  Commercial book total income up 2% from higher Commercial book 5,422 2 net interest income, record fees, and increase in Markets trading 331 77 treasury customer sales Expenses 2,249 4 Profit before allow

  7. Slide 7: 9M net profit up 11% to new high

    9M net profit up 11% to new high (S$m) 9M24 YoY % record  Commercial book total income up 10% from Total income 16,792 11 Commercial book 16,028 10 NIM and balance sheet expansion, record fees Markets trading 764 25 and treasury customer sales Expenses 6,500 11  Markets trading income up 25% Profi

  8. Slide 8: 3Q commercial book net interest income up 1% QoQ, NIM stable at 2.83%

    3Q commercial book net interest income up 1% QoQ, NIM stable at 2.83% Net interest margin (%) 2.77 2.83 2.83 2.77 2.81 Commercial book Group 2.16 2.13 2.14 2.14 2.11 Net interest 3,597 3,505 3,594 income (S$m) 10,208 10,696 3,647 3,769 3,796 Commercial book 10,649 11,212 Markets trading -441 -516 -1

  9. Slide 9: Loans up 1% QoQ, 2% over 9M in constant-currency terms

    Loans up 1% QoQ, 2% over 9M in constant-currency terms (S$bn) 424 +8 Others CBG / WM 131 +6 +4 In constant-currency terms  3Q loans up 1% QoQ led by trade loans +7 -1 +3  9M loans up 2% led by +5 trade loans and non-trade Other +1 247 IBG +3 corporate loans +2 +1 -4 Trade 43 As at Sep 24 9M24 1Q24

  10. Slide 10: Deposits up 2% QoQ in constant-currency terms from Casa inflows

    Deposits up 2% QoQ in constant-currency terms from Casa inflows, some of which were transitory (S$bn) 545 +7 +14 FD and +10 263 In constant-currency terms others +14 +1 +3  3Q deposits rose $10bn +19 +43 QoQ from FCY Casa, some +10 of which were transitory +19 +5 FCY Casa 118 +3  9M SGD Casa movem

  11. Slide 11: 3Q and 9M fee income rises to record led by wealth management

    3Q and 9M fee income rises to record led by wealth management (S$m) 3,850 68 1,315 1,264 31 3,055 19 1,048 Investment 96 banking 1,663 21 518 609 Wealth 1,135 management 393 517 186 146 Loan-related 412 137 Cards 733 916 313 302 269 Transaction services 679 686 228 228 227 9M23 9M24 3Q23 2Q24 3Q24 Y

  12. Slide 12: 3Q commercial book non-interest income up 21% YoY, 9M up 23% to record

    3Q commercial book non-interest income up 21% YoY, 9M up 23% to record (S$m) 6,096 2,156 1,888 4,965 1,280 530 1,688 Markets trading 362 1,053 346 1,616 517 478 Other non-interest 1,395 499 income Net fee income 3,200 1,048 1,109 2,517 843 9M23 9M24 3Q23 2Q24 3Q24 Commercial book 3,912 4,816 1,342 1

  13. Slide 13: Record 3Q and 9M Wealth Management income

    Record 3Q and 9M Wealth Management income from AUM inflows and conversion to investments (S$m) 3,978 1,358 1,295 3,302 1,145 1,982 649 661 Net interest income 1,955 680 1,996 633 709 Non-interest income 1,347 465 9M23 9M24 3Q23 2Q24 3Q24 YoY (%) Total income 40 20 22 19 19 Non-interest income 15 48

  14. Slide 14: 3Q and 9M cost-income ratio stable at 39%

    3Q and 9M cost-income ratio stable at 39% 39 39 39 40 39 Cost / income (%) (S$m) 6,500 2,249 2,172 5,851 2,038 Staff 4,150 1,395 1,422 3,691 1,261 expenses Other 2,160 2,350 777 777 827 expenses 9M23 9M24 3Q23 2Q24 3Q24 14

  15. Slide 15: NPA declines 8% QoQ contributed by repayment of recent cases

    NPA declines 8% QoQ contributed by repayment of recent cases (S$m) 9M23 9M24 1Q24 2Q24 3Q24 NPAs at start of period 5,125 5,056 5,056 5,221 5,077 IBG and others (173) (291) 75 (152) (214) New NPAs 588 739 317 191 452 Upgrades, settlements and recoveries (585) (775) (196) (308) (491) Write-offs (176)

  16. Slide 16: 9M SP stable at 11bp of loans

    9M SP stable at 11bp of loans (S$m) 9M23 9M24 1Q24 2Q24 3Q24 IBG and others 195 37 5 (11) 43 Add charges for 337 258 54 50 168 New NPLs 224 217 45 29 147 Existing NPLs 113 41 9 21 21 Subtract charges for 142 221 49 61 125 Upgrades 5 16 0 15 1 Settlements 106 139 40 38 75 Recoveries 31 66 9 8 49 CBG

  17. Slide 17: Allowance coverage rises to 135%

    Allowance coverage rises to 135% (S$m) 6,631 6,527 6,550 6,476 6,323 GP 3,910 3,896 3,927 3,981  Allowance coverage 3,955 comfortably above 100% and exceeds 200% after considering collateral SP 2,721 2,580 2,600 2,569 2,368 Sep 23 Dec 23 Mar 24 Jun 24 Sep 24 Total allowance reserves as % of: NPA 12

  18. Slide 18: Strong CET-1 and leverage ratios

    Strong CET-1 and leverage ratios (%) 18.8 0.9 0.7 15.9 16.1 16.2 16.2 0.8 0.9 0.8 Tier 2 1.1 0.6 0.7 0.6 Additional Tier 1 0.7 17.2 14.6 14.7 14.8 Common Equity Tier 1 14.1 Sep 23 Dec 23 Mar 24 Jun 24 Sep 24 RWA (S$bn) 372 368 378 386 338 Leverage ratio (%) 6.4 6.6 6.5 6.5 6.8 Fully phased-in Common

  19. Slide 19: 3Q dividend at 54 cents per share

    3Q dividend at 54 cents per share (S¢ per share) 175 136 49 54 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 19

  20. Slide 20: In summary

    In summary Achieved another record performance in the third quarter and nine months Commercial book net interest margin supported by reduced interest rate sensitivity while wealth management drove fee income to new high New buyback programme another affirmation of commitment to capital management, u

  21. Slide 21: Record quarterly and nine-month performance

    Record quarterly and nine-month performance DBS Group Holdings 3Q 2024 financial results November 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 Ban

DBS Group Holdings — Q3 2024 Earnings Presentation on 6ix