Dbs Group Holdings Ltd · SGX:D05
Dbs — Q3 2021 Earnings Presentation
16 slides from Dbs's earnings presentation, Nov 5, 2021
Slide 1: Business momentum sustained, asset quality resilient
Business momentum sustained, asset quality resilient DBS Group Holdings 3Q 2021 financial results November 5, 2021 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
Slide 2: Highlights
Highlights 3Q net profit stable on quarter at $1.70bn, business momentum sustained ▪ Net interest income up 1% as 2% loan growth was moderated by 2bp decline in NIM ▪ Fee income up 2% to second highest on record Nine-month net profit up 46% to record $5.41bn ▪ Broad-based growth as loans up 9%, fee
Slide 3: 3Q net profit stable on quarter
3Q net profit stable on quarter (S$m) 3Q21 QoQ % ▪ Net interest income up 1% as 2% loan growth moderated by 2bp decline in NIM to 1.43% Total income 3,561 (1) ▪ Fee income up 2% as momentum sustained Expenses 1,668 8 ▪ Underlying expenses up 6% from base salary Profit before allowances 1,893 (7) inc
Slide 4: 9M net profit up 46% on year to a record $5.41bn
9M net profit up 46% on year to a record $5.41bn (S$m) 9M21 YoY % ▪ Net interest income down 9% as loan growth of Total income 11,004 (3) 9% more than offset by NIM decline of 22bp Expenses 4,798 5 ▪ Fee income up 17% to record Profit before allowances 6,206 (8) ▪ Underlying expenses up 1% Allowance
Slide 5: 3Q net interest income up 1% on quarter
3Q net interest income up 1% on quarter Net interest 1.67 margin (%) 1.49 1.45 1.45 1.43 Net interest income (S$m) 6,956 6,300 2,107 2,089 2,104 9M20 9M21 1Q21 2Q21 3Q21 5
Slide 6: Loans up 2% on quarter, 8% over 9M
Loans up 2% on quarter, 8% over 9M (S$bn) 411 Others 8 In constant-currency terms CBG / ▪ Loans up $6bn or 2% in 123 WM 3Q, $28bn or 8% over 9M +9 ▪ 9M growth broad-based, +3 +3 led by non-trade +12 +3 corporate loans and Other +28 +3 +10 consumer loans 237 +4 IBG +12 +5 +6 + Trade − 43 As at Sep 21
Slide 7: Deposits up 1% on quarter, 4% over 9M from Casa inflows
Deposits up 1% on quarter, 4% over 9M from Casa inflows (S$bn) 528 533 508 45 44 43 Loans 116 120 127 Other funding FD and others Casa 397 405 371 338 366 369 Dec-20 Jun-21 Sep-21 HQLA (S$bn) 116 122 123 Ratios (%) LDR 80 82 83 LCR 139 137 131 NSFR 125 127 127 HQLA is high quality liquid assets; Oth
Slide 8: 9M fee income up 17% to record
9M fee income up 17% to record (S$m) 3,103 154 2,661 Investment banking 104 1,026 991 1,406 913 40 65 Wealth 41 management 1,141 461 426 399 336 Loan-related 337 111 106 514 111 Cards 464 165 180 160 Transaction 693 services 615 202 224 239 9M20 9M21 3Q20 2Q21 3Q21 Gross fee income 8
Slide 9: 9M underlying expenses up 1%, cost-income ratio at 44%
9M underlying expenses up 1%, cost-income ratio at 44% 47 44 43 43 Cost / income 40 (%) (S$m) 4,798 4,578 1,668 1,539 1,543 Staff 2,926 2,655 expenses 1,013 901 945 Other expenses 1,923 1,872 638 655 598 9M20 9M21 3Q20 2Q21 3Q21 9
Slide 10: 3Q new NPA more than offset by repayments
3Q new NPA more than offset by repayments (S$m) 9M20 9M21 1Q21 2Q21 3Q21 NPA at start of period 5,773 6,686 6,686 6,585 6,621 IBG and others 655 (207) (153) 50 (104) New NPA 1,551 851 271 288 342 Upgrades, settlements and recoveries (489) (780) (272) (205) (355) Write-offs (407) (278) (152) (33) (91
Slide 11: 9M SP of 14bp below pre-pandemic levels, 3Q SP at 6bp
9M SP of 14bp below pre-pandemic levels, 3Q SP at 6bp from write-back for NPL (S$m) 9M20 9M21 1Q21 2Q21 3Q21 IBG and others 592 298 164 107 27 Add charges for 723 483 181 160 151 New NPL 550 255 103 82 32 Existing NPL 173 228 78 78 119 Subtract charges for 131 185 17 53 124 Upgrades 1 1 0 0 0 Settle
Slide 12: GP reserves at $3.92bn remain prudent
GP reserves at $3.92bn remain prudent (S$m) 7,326 7,201 7,061 ▪ Balance sheet remains well- fortified against risks GP 4,312 4,045 3,918 ▪ GP reserves at $3.92bn, $0.6bn above MAS requirement and $1.1bn above Tier-2 eligibility SP 3,014 3,156 3,143 Dec-20 Jun-21 Sep-21 Total allowance reserves as %
Slide 13: Strong CET-1 and leverage ratios
Strong CET-1 and leverage ratios (%) 17.5 17.1 16.8 Tier 2 1.8 2.0 1.9 1.1 1.0 0.7 Additional Tier 1 Common Equity Tier 1 13.9 14.5 14.5 Dec-20 Jun-21 Sep-21 RWA (S$bn) 321 331 338 Leverage ratio (%) 6.8 6.8 6.8 13
Slide 14: 3Q dividend at 33 cents per share
3Q dividend at 33 cents per share (S¢ per share) Final 33 30 18 33 3Q 18 Interim 30 18 33 2Q 30 33 18 1Q 2019 2020 2021 14
Slide 15: In summary – Business momentum sustained, asset quality resilient
In summary – Business momentum sustained, asset quality resilient Business momentum sustained in 3Q, pipeline remains healthy into new year Expected interest rate increases will be beneficial to earnings Asset quality continues to be resilient, total allowances likely to stay low Strong balance shee
Slide 16: Business momentum sustained, asset quality resilient
Business momentum sustained, asset quality resilient DBS Group Holdings 3Q 2021 financial results November 5, 2021 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