DBS reported a 33% YoY increase in Q4 2017 net profit, helped by strong growth in net interest and fee income and decline in allowances.
BankBazaar Singapore – 8 February 2018
Singapore: DBS has announced that its net profit in the fourth quarter ended 31 December 2017 jumped 33% year-on-year (YoY) to hit an all-time quarterly high of S$1.22 billion.
Driven by double-digit growth in the net interest income and net fee income, the total income of the bank crossed S$3 billion mark for the second straight quarter in Q4. During the quarter, DBS’ net interest income rose 15% YoY to S$2.1 billion, while net fee income soared 23% YoY to S$636 million.
DBS said that its full year 2017 net profit also touched a record high of S$4.39 billion, up 4% compared to 2016. Total income of the bank rose to an all-time high of S$11.9 billion in 2017 from S$11.5 billion in 2016, driven by solid loan and fee income growth which also offset lower interest margins and trading income.
Meanwhile, the non-performing loans ratio of the bank also increased to 1.7% as of 31 December 2017, compared to 1.4% as of 31 December 2016. DBS’ common equity tier-1 ratio increased to 14.3% as of 31 December 2017 versus 14.1% a year ago.
DBS’ CEO Piyush Gupta said that the bank will continue the growth momentum in 2018. DBS board has also proposed a final dividend payout of 60 cents per share for 2017, bringing total ordinary dividend for the year to 93 cents – a growth of 55% over 2016. The increase in dividends reflect the quality of the bank’s earnings and balance sheet, Gupta added.
Looking ahead, the bank said that global macroeconomic environment will remain favourable. DBS expects its 2018 income to grow in low double digits (including the impact of acquired businesses from ANZ).