trending Market Intelligence /marketintelligence/en/news-insights/trending/3g9rd4hijtbu_vtpp5um6g2 content esgSubNav
In This List

DBS sees YOY rise in Q4'17 profit amid higher net interest income

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


DBS sees YOY rise in Q4'17 profit amid higher net interest income

DBS Group Holdings Ltd. posted a 33% year-over-year rise in net profit for the fourth quarter ended Dec. 31, 2017, amid an increase in net interest income and net fee and commission income.

Net profit for the quarter jumped to S$1.22 billion, or S$1.86 per share, from S$913 million, or S$1.40 per share, in the year-ago quarter.

Including one-time items, net profit climbed year over year to S$1.19 billion, or S$1.85 per share, from S$913 million, or S$1.40 per share. The one-time items include the divestment of a unit, the integration costs related to the acquisition of Australia & New Zealand Banking Group Ltd.'s retail and wealth management operations in certain Asian markets, and general allowances.

The S&P Capital IQ consensus GAAP EPS estimate for the quarter was 48 cents, with four analysts reporting.

Net interest income increased to S$2.10 billion from S$1.82 billion, while net fee and commission income climbed to S$636 million from S$515 million. Total income for the period edged up to S$3.06 billion from S$2.78 billion.

The group's net interest margin for the quarter stood at 1.78%, up from 1.71% in the prior-year quarter, and from 1.73% in the third quarter.

Allowances for credit and other losses declined to S$225 million from S$462 million.

The Singapore-based group reported full-year 2017 consolidated net profit of S$4.39 billion, up from S$4.24 billion a year earlier. Including one-time items, net profit rose year over year to S$4.37 billion from S$4.24 billion. EPS rose to S$1.69 from S$1.66.

Net interest income for the full year increased to S$7.79 billion from S$7.31 billion in the prior-year period, while NIM dropped to 1.75% from 1.80%. Total income edged up to S$11.92 billion from S$11.49 billion.

Allowances for credit and other losses ticked up to S$1.54 billion from S$1.43 billion.

The group's nonperforming loan ratio for the full year climbed to 1.7% from 1.4% in the previous year.

As of Dec. 31, 2017, the group's total capital adequacy ratio was 15.9%, down from 16.2% as of Dec. 31, 2016. The common equity Tier 1 and Tier 1 capital adequacy ratios were 14.3% and 15.1%, respectively, at the end of 2017, compared with 14.1% and 14.7% at the end of 2016. The total capital adequacy ratio stood at 15.6% at the end of the third quarter, while the CET1 and Tier 1 capital adequacy ratios were at 14.0% and 14.8%, respectively.

The group declared a final dividend of 60 cents per share, up from 30 cents per share a year ago. This brings the full-year ordinary dividend to 93 cents per share, up from 60 cents per share in the year-ago period.

Further, DBS Group's board proposed a special dividend of 50 cents per share to return surplus capital to shareholders, which was used to boost capital buffers prior to the finalization of the Basel capital reforms. The group said the final rules have limited capital impact, and requires the company to increase risk-weighted assets by about 5% by 2022.

The dividends will be paid on May 15.

As of Feb. 7, US$1 was equivalent to S$1.32.