DBS Group Holdings Ltd · SGX:D05
DBS — Q1 2022 Earnings Presentation
16 slides from DBS's earnings presentation, Apr 29, 2022
Slide 1: Strong first-quarter operating performance
Strong first-quarter operating performance DBS Group Holdings 1Q 2022 financial results April 29, 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 a
Slide 2: Highlights
Highlights First-quarter net profit at $1.80 billion, second highest on record with ROE at 13.1% ▪ Healthy business momentum as loans grow 2% on quarter and fee income other than wealth management and investment banking higher on year ▪ NIM rises 3bp on quarter, the first increase in three years ▪ P
Slide 3: 1Q net profit of $1.80bn second highest on record
1Q net profit of $1.80bn second highest on record (S$m) 1Q22 YoY % ▪ Net interest income up 4% as 8% loan growth Total income 3,747 (3) offsets 3bp NIM decline Expenses 1,644 4 ▪ Fee income falls 7% from lower wealth management fees Profit before allowances 2,103 (7) ▪ Other income down 16% from hig
Slide 4: 1Q net profit up 30% on quarter
1Q net profit up 30% on quarter (S$m) 1Q22 QoQ % ▪ Net interest income up 4% on day-adjusted basis from 3bp NIM increase and 2% loan growth Total income 3,747 14 ▪ Fee income up 9% due mainly to loan-related Expenses 1,644 (2) activities Profit before allowances 2,103 30 ▪ Other income up 98% from h
Slide 5: Net interest income up 4% on quarter on day-adjusted basis, NIM rises 3bp
Net interest income up 4% on quarter on day-adjusted basis, NIM rises 3bp 1.49 Net interest 1.45 1.46 margin (%) 1.43 1.43 Net interest 2,107 2,089 2,104 2,140 2,187 income (S$m) 1Q21 2Q21 3Q21 4Q21 1Q22 5
Slide 6: Loans up 2% on quarter, 8% on year
Loans up 2% on quarter, 8% on year (S$bn) 422 Others 6 ▪ Loans up $8bn or 2% in 1Q FY21: +34 CBG / ▪ Non-trade corporate loans 125 WM up 2% led by Singapore and Hong Kong across a broad range of industries +3 ▪ Housing and wealth +3 +12 +3 management loans stable Other +2 on quarter 247 +3 +10 +6 IB
Slide 7: Deposits up 4% on quarter from Casa inflows
Deposits up 4% on quarter from Casa inflows 555 565 518 528 533 (S$bn) 53 46 40 45 44 121 127 Loans 125 116 120 Other funding FD and others Casa 386 397 405 409 381 416 392 353 366 369 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 HQLA (S$bn) 118 122 123 126 134 Ratios (%) LDR
Slide 8: Fee income declines on year as lower wealth management and investment banking more than offset increases
Fee income declines on year as lower wealth management and investment banking more than offset increases in other activities (S$m) 1,086 Investment 49 1,026 1,022 banking 991 40 954 43 65 64 Wealth 519 408 management 461 426 380 106 77 144 Loan-related 119 111 Cards 169 165 180 201 187 Transaction s
Slide 9: Expenses up 4% on year, cost-income ratio at 44%
Expenses up 4% on year, cost-income ratio at 44% 47 51 Cost / income 41 43 44 (%) 1,668 1,671 1,644 (S$m) 1,587 1,543 Staff 1,013 949 968 945 1,047 expenses Other 619 655 722 598 597 expenses 1Q21 2Q21 3Q21 4Q21 1Q22 9
Slide 10: NPL ratio stable at 1.3%
NPL ratio stable at 1.3% (S$m) 1Q21 2Q21 3Q21 4Q21 1Q22 NPAs at start of period 6,686 6,585 6,621 6,570 5,849 IBG and others (153) 50 (104) (665) 187 New NPAs 271 288 342 291 465 Upgrades, settlements and recoveries (272) (205) (355) (700) (269) Write-offs (152) (33) (91) (256) (9) CBG / WM (7) (17)
Slide 11: SP of 15bp in line with recent quarters
SP of 15bp in line with recent quarters (S$m) 1Q21 2Q21 3Q21 4Q21 1Q22 IBG and others 164 107 27 46 122 Add charges for 181 160 151 116 189 New NPLs 103 82 32 57 157 Existing NPLs 78 78 119 59 32 Subtract charges for 17 53 124 70 67 Upgrades 0 0 0 0 0 Settlements 12 42 103 62 62 Recoveries 5 11 21 8
Slide 12: GP reserves of $3.75bn remain prudent
GP reserves of $3.75bn remain prudent (S$m) 7,191 7,201 7,061 6,802 6,814 GP 4,131 4,045 3,918 3,754 GP reserves $0.2bn above 3,876 MAS requirement and $1.0bn above Tier-2 eligibility SP 3,060 3,156 3,143 2,926 3,060 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Total allowance reserves as % of: NPA 109 109 10
Slide 13: CET-1 down 0.4%pt on quarter to 14.0%
CET-1 down 0.4%pt on quarter to 14.0% (%) 17.5 17.5 17.1 17.0 16.5 Tier 2 2.1 2.0 1.9 1.9 1.8 1.1 1.0 0.7 0.7 Additional Tier 1 0.7 Common Equity Tier 1 14.3 14.5 14.5 14.4 14.0 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 RWA (S$bn) 322 331 338 343 351 Leverage ratio (%) 6.7 6.8 6.8 6.7 6.3 13
Slide 14: Dividend at 36 cents per share
Dividend at 36 cents per share (S¢ per share) 36 Final 18 33 18 Interim 18 33 33 36 1Q 18 2020 2021 2022 14
Slide 15: In summary – strong first-quarter operating performance
In summary – strong first-quarter operating performance Strong first quarter as business momentum healthy and growth broad-based, expenses well-managed Net interest margin has started to rise after three years of decline, further rate increases will be beneficial to earnings Balance sheet strong wit
Slide 16: Strong first-quarter operating performance
Strong first-quarter operating performance DBS Group Holdings 1Q 2022 financial results April 29, 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 a