DBS Group (D05) Q4 2024 earnings summary

Executive summary

• Achieved record net profit of SGD 11.4 billion for FY2024, up 11% year-over-year, with ROE sustained at 18%, among the highest for developed market banks.

• Total income rose 10% to SGD 22.3 billion, driven by broad-based growth across net interest income, fee income, and treasury sales.

• Fourth quarter net profit grew 10% year-over-year to SGD 2.62 billion, with total income up 10% to SGD 5.51 billion.

• Board declared a final ordinary dividend of SGD 0.60 per share for Q4, bringing full-year dividends to SGD 2.22 per share, up 27%, and will introduce a quarterly Capital Return dividend of 15 cents per share in 2025.

• SGD 100 million set aside for CSR and a special staff bonus of SGD 1,000 (SGD 32 million total) paid to all staff except senior managers.

Financial highlights

• Net interest income for FY2024 rose 5% to SGD 15.0 billion, with net interest margin expanding 4 bps to 2.80%.

• Net fee income hit a record SGD 4.17 billion, up 23%, led by 45% growth in wealth management fees.

• Markets trading income rebounded 27% to SGD 922 million.

• Cost-to-income ratio remained stable at 40%; expenses rose 10% to SGD 8.9 billion, with Citi Taiwan contributing 3 percentage points.

• Gross loans grew 3% year-over-year to SGD 437 billion (or SGD 431 billion in constant-currency terms); total deposits rose 4% to SGD 562 billion.

Outlook and guidance

• Expecting two US rate cuts in 2025, likely in the second half, with group NIM projected around 2.10%.

• Loan growth guidance remains mid-single digit, primarily in non-trade corporate loans.

• Commercial book non-interest income growth expected in high single digits, supported by continued AUM growth in wealth management.

• Cost-to-income ratio guidance in the low 40s; specific provisions expected to normalize to 17-20 bps.

• Net profit for 2025 expected to be below 2024 due to the new BEPS minimum tax rate, reducing net profit by about SGD 400 million.