Dbs Group Holdings Ltd · SGX:D05
Dbs — Q4 2023 Earnings Presentation
31 slides from Dbs's earnings presentation, Feb 7, 2024
Slide 1: Record full-year earnings and ROE
Record full-year earnings and ROE DBS Group Holdings 4Q 2023 financial results February 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 Bank accepts
Slide 2: Highlights
Highlights Full-year total income of $20.2 billion, net profit of $10.3 billion and ROE of 18% all at records ▪ Commercial book total income up 27% to $19.5 billion o NIM expands 65bp from higher interest rates o Net fee income rebounds 9% from higher card and wealth management fees o Treasury custo
Slide 3: Ordinary dividend increase of 28% for 2023, 1-for-10 bonus
Ordinary dividend increase of 28% for 2023. Another 24% after 1-for-10 bonus with dividend yield of 7.5% (S¢ per share) 216 x 110% 216 +45.6¢ 192 (+24%) +42¢ 150 (+28%) After bonus Before bonus 2022 2023 Quarterly 54¢ annualised on existing shares Dividend yield (%) 7.5 Dividend yield based on 6 Feb
Slide 4: Full-year net profit crosses $10bn, total income crosses $20bn
Full-year net profit crosses $10bn, total income crosses $20bn (S$m) FY23 YoY % Total income record 20,180 22 ▪ Commercial book total income rises 27% from Commercial book 19,455 27 65bp NIM expansion, rebound in fees and record Treasury Markets (TM) 725 (38) treasury customer sales Expenses 8,056 1
Slide 5: 4Q net profit up 2% YoY as total income rises 9%
4Q net profit up 2% YoY as total income rises 9% (S$m) 4Q23 YoY % ▪ Commercial book total income up 12% from 14bp Total income 5,007 9 NIM expansion and broad-based non-interest income Commercial book 4,894 12 growth Treasury Markets (TM) 113 (45) ▪ TM income falls 45% from higher funding cost Expen
Slide 6: 4Q net profit down 9% QoQ
4Q net profit down 9% QoQ (S$m) 4Q23 QoQ % ▪ Commercial book total income declines 3% from Total income 5,007 (4) lower NIM and seasonally lower non-interest income Commercial book 4,894 (3) Treasury Markets (TM) 113 (32) ▪ Fee income rises 3% as Citi Taiwan more than offsets seasonally slower wealt
Slide 7: 4Q commercial book net interest income down 1% QoQ
4Q commercial book net interest income down 1% QoQ, NIM of 2.75% stable to exit-3Q NIM Net interest margin (%) 2.81 2.82 2.75 2.76 2.61 2.69 Commercial book 2.11 2.15 2.12 2.16 2.19 2.13 2.05 Group 1.75 Net interest income (S$m) 13,642 3,433 3,504 3,434 3,280 3,271 10,941 Treasury 222 Markets 14,286
Slide 8: Loans stable QoQ, up 1% for full year in constant-FX terms
Loans stable QoQ, up 1% for full year in constant-FX terms (S$bn) Others 422 In constant-currency terms Citi TW 10 ▪ 4Q loans stable as higher +6 +6 trade and consumer loans CBG / WM 122 offset by lower non-trade corporate loans +4 ▪ Full-year loans growth +10 +10 driven by Citi Taiwan ▪ Excluding C
Slide 9: Deposits rise 2% QoQ, 3% YoY in constant-FX terms
Deposits rise 2% QoQ, 3% YoY in constant-FX terms (S$bn) 574 576 567 579 583 47 47 47 48 48 12 12 Loans 209 227 228 243 Other funding 242 FD and others Casa 415 417 416 420 416 Citi TW 318 302 292 277 280 Dec 22 Mar 23 Jun 23 Sep 23 Dec 23 HQLA (S$bn) 145 144 149 146 148 Ratios (%) LDR 79 79 80 79 7
Slide 10: Full-year gross fee income growth led by cards, wealth management
Full-year gross fee income growth led by cards, wealth management and loan-related fees (S$m) 4,124 125 1,048 1,069 Investment 3,697 1,008 999 21 29 banking 121 44 31 1,505 835 Wealth 393 370 management 1,330 23 365 377 262 554 142 Loan-related 459 137 79 142 133 Cards 858 1,044 269 311 245 227 237
Slide 11: Full-year commercial book non-interest income up 12%
Full-year commercial book non-interest income up 12% from rebound in fees and record treasury customer sales (S$m) 6,538 1,665 1,688 1,612 1,573 5,561 1,369 346 1,310 382 325 316 952 Other non-interest 1,785 329 499 income 432 464 390 1,518 320 Net fee income 3,091 3,384 851 823 843 867 661 FY22 FY2
Slide 12: Full-year underlying cost-income ratio at 39%
Full-year underlying cost-income ratio at 39% Cost / income 43 44 (%) 43 40 39 38 38 8,056 2,205 1,963 2,038 (S$m) 7,090 1,882 1,931 5,036 1,345 Staff 4,376 1,203 1,261 1,215 1,215 expenses Other 3,020 860 2,714 760 667 716 777 expenses FY22 FY23 4Q22 1Q23 2Q23 3Q23 4Q23 12
Slide 13: Full-year CBG / WM income up 35%
Full-year CBG / WM income up 35% from higher interest rates and investment product income (S$m) FY22 FY23 YoY % ▪ Full-year total income up 35% to Total income 6,654 8,957 35 $8.96bn, with Wealth Management Loans and deposits 3,999 6,045 51 segment income up 35% to $4.43bn Investment products 1,815
Slide 14: Full-year IBG income up 22% led by cash management
Full-year IBG income up 22% led by cash management (S$m) FY22 FY23 YoY % Total income 7,688 9,357 22 ▪ Full-year total income up 22% to Loans 3,445 3,373 (2) $9.36bn Trade 764 666 (13) ▪ Increase led by cash management Cash / SFS 2,499 4,329 73 income, partially offset by decline in Treasury 892 893
Slide 15: Full-year treasury customer income up 13% to record
Full-year treasury customer income up 13% to record, TM income declines 2,577 746 643 (S$m) 2,819 635 575 553 CBG and IBG 477 1,852 477 treasury 1,645 372 458 440 customer income TM non-II 382 346 952 1,369 329 325 316 TM NII 222 -125 -113 -148 -180 -644 -203 FY22 FY23 4Q22 1Q23 2Q23 3Q23 4Q23 YoY (
Slide 16: Full-year Hong Kong net profit up 12%
Full-year Hong Kong net profit up 12% Constant- (S$m) FY23 YoY % currency YoY% ▪ Total income up 13% from NIM Total income 3,214 10 13 expansion of 44bp Expenses 1,202 6 8 ▪ Expenses up 8%, positive jaw of Profit before allowances 2,012 13 16 5%pt Allowances 138 >100 >100 ▪ Total allowances up from
Slide 17: NPA declines 5% QoQ as NPA formation remains low
NPA declines 5% QoQ as NPA formation remains low (S$m) FY22 FY23 1Q23 2Q23 3Q23 4Q23 NPAs at start of period 5,849 5,125 5,125 4,951 4,990 5,303 IBG and others (464) (311) (133) (5) (41) (139) New NPAs 1,157 675 218 166 224 127 Upgrades, settlements and recoveries (1,002) (683) (251) (139) (221) (13
Slide 18: 4Q and full-year SP remain low at 11bp
4Q and full-year SP remain low at 11bp (S$m) FY22 FY23 1Q23 2Q23 3Q23 4Q23 IBG and others 194 220 24 57 114 25 Add charges for 465 403 84 110 160 76 New NPLs 307 245 17 87 97 15 Existing NPLs 158 158 67 23 63 61 Subtract charges for 271 183 60 53 46 51 Upgrades 47 5 1 0 4 2 Settlements 183 138 50 39
Slide 19: Allowance coverage at 128%
Allowance coverage at 128% (S$m) 6,631 6,476 6,242 6,266 6,327 GP 3,910 ▪ Allowance coverage 3,736 3,831 3,802 3,896 comfortably above 100% and exceeds 200% after considering collateral SP 2,721 2,506 2,435 2,525 2,580 Dec 22 Mar 23 Jun 23 Sep 23 Dec 23 Total allowance reserves as % of: NPA 122 127
Slide 20: Strong CET-1 and leverage ratios
Strong CET-1 and leverage ratios (%) 17.0 16.5 15.8 15.9 16.1 Tier 2 1.8 1.5 0.8 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 14.6 Dec 22 Mar 23 Jun 23 Sep 23 Dec 23 RWA (S$bn) 347 353 371 372 368 Leverage ratio (%) 6.4 6.4 6.5 6.4 6.6 20
Slide 21: In summary
In summary Record performance with total income, net profit and ROE at new highs and significantly above previous years Franchise and digital transformations carried out over past decade have reaped substantial benefits in a higher interest rate environment Stepped-up capital returns through dividen
Slide 22: Supplementary slides
Supplementary slides DBS Group Holdings 4Q 2023 financial results February 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 Bank accepts no liability
Slide 23: Full-year net profit up 26% to $10.3bn
Full-year net profit up 26% to $10.3bn (S$m) FY23 FY22 YoY % Net interest income 13,642 10,941 25 Fee income 3,384 3,091 9 Trading income 2,866 2,313 24 Other income 288 157 83 Non-interest income 6,538 5,561 18 Total income 20,180 16,502 22 Staff expenses 5,036 4,376 15 Other expenses 3,020 2,714 1
Slide 24: Full-year Hong Kong net profit up 12%
Full-year Hong Kong net profit up 12% Constant-currency terms (S$m) FY23 FY22 YoY % YoY % Net interest income 2,167 1,844 18 21 Net fee and commission income 664 672 (1) 1 Other non-interest income 383 407 (6) (3) Total income 3,214 2,923 10 13 Expenses 1,202 1,137 6 8 Profit before allowances 2,012
Slide 25: NPL ratio at 1.1%, allowance coverage above 100%
NPL ratio at 1.1%, allowance coverage above 100% NPL ratio (%) 1.1 1.1 1.1 1.2 1.1 NPA (S$m) 5,125 4,951 4,990 5,303 5,056 Not overdue 30% 30% 33% 34% 36% Within 90 days overdue 6% 8% 6% 8% 7% More than 90 days overdue 64% 61% 61% 58% 57% Dec 22 Mar 23 Jun 23 Sep 23 Dec 23 SP / loans (bp) 6 6 10 18
Slide 26: Fixed income duration remains short
Fixed income duration remains short ($m) Dec 23 FVOCI HTC Government securities 29,832 24,460 Less than 3 years 22,720 7,090 3 to 5 years 2,854 4,473 5 to 10 years 3,947 12,395 More than 10 years 311 502 Supranational, bank and corporate bonds 21,655 36,437 Total 51,487 60,897 Time-banding is based
Slide 27: Deposits up 4% HoH and 3% YoY in constant-FX terms
Deposits up 4% HoH and 3% YoY in constant-FX terms (S$bn) HoH (%) YoY (%) Dec 23 Reported Underlying Reported Underlying Deposits 535 3 4 2 3 By product Casa 286 (2) (1) (10) (9) Fixed deposits and others 249 9 12 19 21 By currency Singapore dollar 192 (7) (7) (10) (10) US dollar 210 5 8 6 8 HK doll
Slide 28: Full-year Wealth Management segment income up 35% to record
Full-year Wealth Management segment income up 35% to record Total income 1,145 1,123 (S$m) 4,425 1,073 1,083 3,272 Net interest income Non-interest income FY22 FY23 1Q23 2Q23 3Q23 4Q23 (S$bn) AUM 297 365 309 320 353 365 Earning assets 349 415 360 371 405 415 Comprising Treasures, Treasures Private C
Slide 29: Full-year GTS income up 53% to record
Full-year GTS income up 53% to record 1,263 1,274 1,244 Total income 4,995 1,214 (S$m) 3,263 Cash / SFS Trade FY22 FY23 1Q23 2Q23 3Q23 4Q23 (S$bn) Trade assets 51 44 52 47 45 44 Deposits 197 190 196 187 183 190 29
Slide 30: Quarterly ordinary dividend rises to 54 cents per share
Quarterly ordinary dividend rises to 54 cents per share (S¢ per share) 192 Ordinary Special 150 54 120 42 48 4Q 36 36 3Q 33 48 36 2Q 33 50 42 36 1Q 18 2021 2022 2023 30
Slide 31: Record full-year earnings and ROE
Record full-year earnings and ROE DBS Group Holdings 4Q 2023 financial results February 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 Bank accepts