DBS Group Holdings Ltd · SGX:D05
DBS — Q1 2021 Earnings Presentation
12 slides from DBS's earnings presentation, Apr 30, 2021
Slide 1: CEO Observations
X DBS | sanciess CEO Observations 30 Apr 2021
Slide 2: Business Outlook
Business Outlook ▪ Business momentum accelerated in 1Q - Broad-based loan growth - Sustained Casa inflows - Fee income at record from broad based growth - Wealth management and transaction services at new high - Cards continuing recovery towards pre-pandemic levels - Investment banking up with highe
Slide 3: Business Outlook
Business Outlook ▪ Latest economic data confirm strengthening of global economic rebound, consensus forecasts upgraded ▪ Business momentum expected to remain strong - Upgrading full-year loan growth to mid-to-high single digit - Full-year fee income growth at double digits - Structural improvements
Slide 4: Credit Outlook
Credit Outlook ▪ Asset quality trends encouraging - Delinquencies remain low despite tapering of loan moratoriums - New NPA formation below pre-pandemic levels - Overall portfolio quality improved ▪ Full-year total allowances likely to be below $1bn 4
Slide 5: Emerging stronger from the pandemic
Emerging stronger from the pandemic ▪ Inorganic Growth - Lakshmi Vilas Bank - Shenzhen Rural Commercial Bank (SZRCB) ▪ New businesses - Digital Exchange - Partior ▪ Acceleration - Securities Joint Venture (SJV) - Retail Wealth - Supply Chain 5
Slide 6: Lakshmi Vilas Bank
Inorganic Growth Lakshmi Vilas Bank ▪ Integration proceeding well ▪ Key business metrics promising - Deposits: Casa up 14%, overall cost of deposits fell 40bps - Loans: Gold loans up 4%, MSME loan renewals/enhancements on course ▪ Asset quality in line with expectations - Legacy NPA portfolio of $21
Slide 7: Shenzhen Rural Commercial Bank
Inorganic Growth Shenzhen Rural Commercial Bank ▪ Stake acquired: 13% stake (new shares) ▪ Consideration: RMB 5.3bn ($1.1bn), representing 1.01x FY20 P/B on a book value per share basis Investment Terms ▪ Governance: DBS will become the single largest shareholder in SZRCB with board representation,
Slide 8: Shenzhen Rural Commercial Bank
Inorganic Growth Shenzhen Rural Commercial Bank ▪ Attractive economic investment - Well-managed franchise that is consistently delivering high ROE - Efficient capital treatment makes it even more attractive - Potential upside if IPO in the future ▪ Partnership to create more value for SZRCB and DBS
Slide 9: Digital Exchange
New Business Digital Exchange ▪ Business building up steadily for the trading of cryptocurrencies: - Daily trading value has increased >10x since launch - Steady momentum in growth of investor base with close to 120 investors - Digital assets under custody more than $80m ▪ Expect further scaling of
Slide 10: Partior
New Business Partior New Blockchain Based Platform What it means to DBS Orchestrated By Partior ▪ Open Industry Platform that encourages broad Value creation from pioneering participation by banks globally, target to launch by new financial infrastructure 3Q211 Allows DBS to harness the potential of
Slide 11: Securities Joint Venture
Acceleration Securities Joint Venture ▪ Approval obtained in September DBS Securities (China) Co., Ltd 2020 Shareholding (%) ▪ Legal incorporation in January 2021 24* ▪ Onsite inspection completed in March 2021 51 ▪ Infrastructure and resourcing 25* completed including 100 staff ▪ Business license a
Slide 12: Thank You
Thank You EEDBS