Dbs Group Holdings Ltd · SGX:D05

Dbs — Q4 2024 Earnings Presentation

30 slides from Dbs's earnings presentation, Feb 10, 2025

  1. Slide 1: Record full-year income and earnings

    Record full-year income and earnings DBS Group Holdings 4Q 2024 financial results February 10, 2025 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 acce

  2. Slide 2: Highlights

    Highlights Full-year net profit at new high of $11.4 billion, ROE of 18.0% sustained at previous year’s record  Total income up 10% to $22.3 billion from broad-based growth o Commercial book NIM expands 4bp to 2.80% o Fee income crosses $4 billion for the first time, led by wealth management o Trea

  3. Slide 3: FY net profit up 11% to new high

    FY net profit up 11% to new high (S$m) FY24 YoY % Total income record 22,297 10  Commercial book total income up 10% from Commercial book 21,375 10 higher NIM and balance sheet growth, record Markets trading 922 27 fees and treasury customer sales Expenses 8,895 10  Markets trading income up 27% r

  4. Slide 4: 4Q net profit up 10% YoY

    4Q net profit up 10% YoY (S$m) 4Q24 YoY % Total income 5,505 10  Commercial book net interest income rises 5% Commercial book 5,347 9 from 2bp increase in NIM and balance sheet Markets trading 158 40 growth Expenses 2,395 9  Fee income up 12% led by wealth management; Profit before allowances 3,11

  5. Slide 5: 4Q net profit declines 13% QoQ

    4Q net profit declines 13% QoQ (S$m) 4Q24 QoQ %  Commercial book net interest income up 1% as Total income 5,505 (4) balance sheet growth more than offsets 6bp Commercial book 5,347 (1) decline in NIM Markets trading 158 (52)  Fee income down 13% driven by seasonally slower Expenses 2,395 6 wealth

  6. Slide 6: 4Q group net interest income up 4% QoQ, NIM up 4bp

    4Q group net interest income up 4% QoQ, NIM up 4bp as higher markets trading more than offsets lower commercial book Net interest margin (%) 2.77 2.83 2.83 2.77 2.76 2.80 Commercial book Group 2.14 2.14 2.11 2.15 2.15 2.13 Net interest 3,728 3,505 3,594 3,597 income (S$m) 13,642 14,424 3,647 3,769 3

  7. Slide 7: Loans up 1% QoQ, 3% over FY in constant-currency terms

    Loans up 1% QoQ, 3% over FY in constant-currency terms (S$bn) 437 +12 Others CBG / WM 133 +6 In constant-currency terms +7  4Q loans up 1% QoQ led +3 by non-trade corporate +7 -1 +3 loans Other +1  FY loans up 3% led by 256 +5 +4 IBG +3 non-trade corporate loans +2 +1 and trade loans -1 -4 Trade 4

  8. Slide 8: Deposits stable QoQ, up 4% over FY in constant-currency terms

    Deposits stable QoQ, up 4% over FY in constant-currency terms (S$bn) 562 +7 +14 In constant-currency terms FD and +10  4Q deposits stable QoQ 271 +14 others +1 as SGD Casa growth +20 +3 offsets decline in FCY +43 +1 +10  FY deposits up 4% from +18 +5 +5 FD in 1H and Casa in 2H FCY Casa 122 +3 +5 +

  9. Slide 9: FY fee income rises to record led by wealth management

    FY fee income rises to record led by wealth management (S$m) 5,086 1,315 1,271 1,264 101 31 1,236 18 19 4,124 1,069 33 Investment banking 125 29 2,183 536 518 609 Wealth 520 management 1,505 370 644 185 186 127 Loan-related 554 142 146 Cards 1,044 1,240 311 301 313 302 324 Transaction services 896 9

  10. Slide 10: FY commercial book non-interest income up 22%

    FY commercial book non-interest income up 22% from record fee income and treasury customer sales (S$m) 7,873 2,156 2,052 1,888 6,538 1,541 530 1,777 388 1,573 362 Markets trading 1,369 261 2,164 316 517 621 478 1,785 548 Other non-interest 390 income Net fee income 4,168 1,043 1,048 1,109 3,384 867

  11. Slide 11: FY cost-income ratio unchanged at 40%

    FY cost-income ratio unchanged at 40% 44 40 40 40 39 Cost / income (%) 37 (S$m) 8,895 2,249 2,395 8,056 2,172 2,079 5,594 1,444 Staff 5,036 1,395 1,422 expenses 1,333 Other 951 3,020 3,301 746 777 827 expenses FY23 FY24 1Q24 2Q24 3Q24 4Q24 11

  12. Slide 12: FY CBG / WM income up 13%

    FY CBG / WM income up 13% (S$m) FY24 FY23 YoY % Total income 10,155 8,957 13  Total income up 13% to $10.2bn led by Loans and deposits 6,239 6,045 3 higher fee income from investment Investment products 3,026 2,141 41 product sales, bancassurance, and Cards 856 702 22 cards Others 34 69 (51)  Weal

  13. Slide 13: Record FY Wealth Management income from AUM inflows

    Record FY Wealth Management income from AUM inflows and conversion to investments (S$m) 5,216 1,325 1,358 1,295 1,238 4,425 1,123 2,621 672 649 661 639 Net interest income 2,638 683 2,595 654 633 709 599 Non-interest income 1,786 439 FY23 FY24 4Q23 1Q24 2Q24 3Q24 4Q24 YoY (%) Total income 35 18 22 2

  14. Slide 14: FY IBG income declines 2%

    FY IBG income declines 2% (S$m) FY24 FY23 YoY % Total income 9,159 9,388 (2) Loans 3,384 3,384 0  Total income declines 2% to $9.16bn Trade 638 666 (4)  Higher loan-related fees, cash Cash / SFS 4,077 4,329 (6) management fees and treasury Treasury 907 853 6 customer income offset by decline in In

  15. Slide 15: FY treasury customer income up 20% to record

    FY treasury customer income up 20% to record, markets trading income rebounds 924 (S$m) 3,237 859 2,649 750 704 564 593 CBG and IBG 2,315 613 treasury 563 1,924 546 customer income 451 Markets trading 331 725 922 246 187 income 113 158 FY23 FY24 4Q23 1Q24 2Q24 3Q24 4Q24 YoY (%) CBG and IBG treasury

  16. Slide 16: Hong Kong FY net profit stable at $1.6bn

    Hong Kong FY net profit stable at $1.6bn Constant- (S$m) FY24 YoY % currency YoY%  Total income up 6% to record, driven by Total income 3,388 5 6 wealth management growth and rebound in Expenses 1,326 10 10 trading income Profit before allowances 2,062 2 3  Net interest income down 4% as NIM decli

  17. Slide 17: NPA rises 4% QoQ in constant-currency terms

    NPA rises 4% QoQ in constant-currency terms as new NPA formation partially offset by repayments and write-offs (S$m) FY23 FY24 1Q24 2Q24 3Q24 4Q24 NPAs at start of period 5,125 5,056 5,056 5,221 5,077 4,680 IBG and others (311) (210) 75 (152) (214) 81 New NPAs 675 903 317 191 452 338 Upgrades, settl

  18. Slide 18: 4Q SP at 20bp, FY at 13bp

    4Q SP at 20bp, FY at 13bp (S$m) FY23 FY24 1Q24 2Q24 3Q24 4Q24 IBG and others 220 142 5 (11) 43 106 Add charges for 403 377 54 50 168 124 New NPLs 245 278 45 29 147 88 Existing NPLs 158 99 9 21 21 36 Subtract charges for 183 235 49 61 125 18 Upgrades 5 17 0 15 1 1 Settlements 138 151 40 38 75 16 Reco

  19. Slide 19: Allowance coverage at 129%

    Allowance coverage at 129% (S$m) 6,476 6,527 6,550 6,514 6,323 GP 3,896 3,927 3,981 3,969  Allowance coverage 3,955 comfortably above 100% and exceeds 200% after considering collateral SP 2,580 2,600 2,569 2,368 2,545 Dec 23 Mar 24 Jun 24 Sep 24 Dec 24 Total allowance reserves as % of: NPA 128 125

  20. Slide 20: Strong CET-1 and leverage ratios

    Strong CET-1 and leverage ratios (%) 18.8 18.6 0.9 0.9 0.7 0.7 16.1 16.2 16.2 Tier 2 0.8 0.9 0.8 Additional Tier 1 0.7 0.6 0.6 17.2 17.0 Common Equity Tier 1 14.6 14.7 14.8 Dec 23 Mar 24 Jun 24 Sep 24 Dec 24 RWA (S$bn) 368 378 386 338 352 Leverage ratio (%) 6.6 6.5 6.5 6.8 6.7 Fully phased-in Common

  21. Slide 21: 4Q ordinary dividend at 60 cents per share

    4Q ordinary dividend at 60 cents per share, up 6 cents from previous payout (S¢ per share) 222 175 60 4Q 136 49 54 38 3Q 44 33 54 2Q 44 33 1Q 54 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 21

  22. Slide 22: In summary

    In summary Achieved record full-year performance with ROE of 18.0%, one of the highest among developed market banks Balance sheet management supported net interest income growth, improving investor sentiment drove wealth management fees and treasury customer sales to new highs Franchise and digital

  23. Slide 23: Supplementary slides

    Supplementary slides DBS Group Holdings 4Q 2024 financial results February 10, 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

  24. Slide 24: FY net profit up 11% to record $11.4bn

    FY net profit up 11% to record $11.4bn (S$m) FY24 FY23 YoY % Commercial book total income 21,375 19,455 10 Net interest income 15,043 14,286 5 Net fee and commission income 4,168 3,384 23 Treasury customer sales and other income 2,164 1,785 21 Markets trading income 922 725 27 Net interest income (6

  25. Slide 25: FY Hong Kong net profit stable at $1.6bn

    FY Hong Kong net profit stable at $1.6bn Constant-currency terms (S$m) FY24 FY23 YoY % YoY % Net interest income 2,076 2,167 (4) (4) Net fee and commission income 831 664 25 25 Other non-interest income 481 383 26 26 Total income 3,388 3,214 5 6 Expenses 1,326 1,202 10 10 Profit before allowances 2,

  26. Slide 26: NPL ratio at 1.1%, allowance coverage above 100%

    NPL ratio at 1.1%, allowance coverage above 100% 1.1 1.1 1.1 1.0 1.1 NPL ratio (%) NPA (S$m) 5,056 5,221 5,077 4,680 5,036 Not overdue 36% 35% 35% 34% 31% Within 90 days overdue 7% 6% 8% 7% 11% More than 90 days overdue 57% 59% 57% 59% 58% Dec 23 Mar 24 Jun 24 Sep 24 Dec 24 SP / loans (bp) 11 10 8 1

  27. Slide 27: Fixed income duration remains short

    Fixed income duration remains short ($m) Dec 24 FVOCI HTC Government securities 39,295 24,396 Less than 3 years 30,791 8,581 3 to 5 years 4,050 3,889 5 to 10 years 4,117 11,432 More than 10 years 337 494 Supranational, bank and corporate bonds 21,748 47,566 Total 61,043 71,962 Time-banding is based

  28. Slide 28: Deposits up 2% HoH and 4% YoY in constant-currency terms

    Deposits up 2% HoH and 4% YoY in constant-currency terms (S$bn) HoH (%) YoY (%) Dec 24 Reported Underlying Reported Underlying Deposits 562 2 2 5 4 By product Casa 291 5 5 2 1 Fixed deposits and others 271 (1) (1) 9 7 By currency Singapore dollar 205 4 4 7 7 US dollar 224 2 1 7 3 HK dollar 33 (1) (1

  29. Slide 29: FY GTS income down 6% from previous year’s record

    FY GTS income down 6% from previous year’s record 1,199 1,204 1,170 Total income 4,995 1,144 (S$m) 4,716 Cash / SFS Trade FY23 FY24 1Q24 2Q24 3Q24 4Q24 (S$bn) Trade assets 44 48 46 47 46 48 Deposits 190 192 191 192 190 192 29

  30. Slide 30: Record full-year income and earnings

    Record full-year income and earnings DBS Group Holdings 4Q 2024 financial results February 10, 2025 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 acce

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