DBS Group Holdings Ltd · SGX:D05
DBS — Q1 2020 Earnings Presentation
14 slides from DBS's earnings presentation, Apr 30, 2020
Slide 1: Resilient first-quarter operating performance
Resilient first-quarter operating performance DBS Group Holdings 1Q 2020 financial results April 30, 2020 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
Slide 2: Highlights
Highlights First-quarter total income rises 13% on year and 16% on quarter to cross $4bn for the first time ▪ Loans up 1% on quarter underpinned by growth in non-trade corporate loans, largely from Singapore and Hong Kong ▪ Net interest margin stable on quarter at 1.86% ▪ Fee income up 14% from a ye
Slide 3: Record total income, GP of $0.70bn to fortify the balance sheet
Record total income, GP of $0.70bn to fortify the balance sheet (S$m) 1Q20 YoY % ▪ Record total income up 13% from loan growth, stronger fee income and higher investment gains Total income record 4,026 13 ▪ Balance sheet fortified by general allowances of Expenses 1,556 4 $0.70bn to pre-empt risks a
Slide 4: Net interest income up 2% on quarter on higher loan volumes and stable NIM
Net interest income up 2% on quarter on higher loan volumes and stable NIM Net interest margin (%) 2.18 2.15 2.15 2.15 2.06 2.09 2.07 Excluding TM 1.89 1.91 1.90 1.85 1.88 1.86 1.86 Group Net interest 9,625 8,955 2,460 2,482 income (S$m) 2,429 2,426 2,310 FY18 FY19 1Q19 2Q19 3Q19 4Q19 1Q20 4
Slide 5: Loans grow 1% on quarter led by corporate loans
Loans grow 1% on quarter led by corporate loans (S$bn) 375 Others In constant-currency terms CBG / 114 ▪ Loans grow $3bn or 1% on WM quarter ▪ Growth in non-trade corporate loans offset by lower trade and wealth +10 management loans Other IBG 218 +7 +3 +4 + +3 0 − -5 Trade 42 As at Mar 20 Constant-c
Slide 6: Deposits up 7% on quarter to $445bn
Deposits up 7% on quarter to $445bn 496 458 461 51 (S$bn) 441 445 46 54 58 57 Loans Other 445 funding 395 391 400 404 347 350 353 358 369 Deposits Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 HQLA (S$bn) 90 92 92 92 92 Ratios (%) LDR 88 90 88 89 83 LCR 137 137 131 139 133 NSFR 111 109 110 110 112 HQLA is high
Slide 7: Cost discipline maintained, cost-income ratio at 39%
Cost discipline maintained, cost-income ratio at 39% Cost / income 44 46 (%) 43 42 42 42 39 6,258 (S$m) 5,798 Staff 3,514 1,614 1,600 3,185 1,498 1,546 1,556 expenses 874 873 915 882 852 Other 2,613 2,744 expenses 741 646 672 685 674 FY18 FY19 1Q19 2Q19 3Q19 4Q19 1Q20 7
Slide 8: NPL ratio rises to 1.6%
NPL ratio rises to 1.6% (S$m) 1Q19 2Q19 3Q19 4Q19 1Q20 NPAs at start of period 5,684 5,648 5,821 5,944 5,773 IBG and others (51) 171 46 (50) 679 New NPAs 109 277 367 575 1,023 Upgrades, settlements and recoveries (139) (82) (95) (206) (281) Write-offs (21) (24) (226) (419) (63) CBG / WM 41 9 (7) (20
Slide 9: SP at 35 bp of loans
SP at 35 bp of loans (S$m) 1Q19 2Q19 3Q19 4Q19 1Q20 IBG and others 87 142 140 127 257 Add charges for 102 154 164 165 359 New NPLs 22 49 82 65 315 Existing NPLs 80 105 82 100 44 Subtract charges for 15 12 24 38 102 Upgrades 0 0 0 1 0 Settlements 9 9 18 32 100 Recoveries 6 3 6 5 2 CBG / WM 43 48 50 6
Slide 10: Pre-emptively raised general allowances by $0.7bn to $3.2bn to fortify balance sheet
Pre-emptively raised general allowances by $0.7bn to $3.2bn to fortify balance sheet (S$m) 3,232 2,947 2,986 2,915 2,886 +$0.7bn ECL movement during 1Q RLAR 479 461 292 404 Balance sheet pre-emptively fortified against risks arising from the Covid-19 pandemic GP reserves increased 29% to $3.23bn ECL
Slide 11: CET-1 ratio of 13.9% - little changed on quarter
CET-1 ratio of 13.9% - little changed on quarter (%) 17.0 16.4 16.7 16.8 16.2 Tier 2 1.8 1.7 1.7 1.7 1.7 1.1 0.9 0.9 1.2 Additional Tier 1 0.9 Common Equity Tier 1 14.1 13.6 13.8 14.1 13.9 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 RWA (S$bn) 297 302 306 304 320 Leverage ratio (%) 7.3 6.9 7.0 7.0 6.9 11
Slide 12: 1Q dividend at 33 cents per share
1Q dividend at 33 cents per share (S¢ per share) Final Interim 33 Special 60 30 60 30 60 50 33 30 33 2017 2018 2019 2020 12
Slide 13: In summary – resilient first-quarter operating performance
In summary – resilient first-quarter operating performance Record operating performance in first quarter reflects resilience of franchise and disciplined cost management Pre-emptively raised general allowances by $0.7bn to $3.2bn to fortify balance sheet Capital, funding and liquidity remain strong;
Slide 14: Resilient first-quarter operating performance
Resilient first-quarter operating performance DBS Group Holdings 1Q 2020 financial results April 30, 2020 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