DBS earnings up 45% to S$5.26b in H1; Q2 dividend at 48 cents

This brings the first half dividend to 90 cents per share.

DBS saw its earnings rise 45% to S$5.26b in the first six months of 2023, its latest financial update showed. This was bolstered by S$2.69b in net income in Q2, a 48% increase compared to the same quarter last year.

A quarterly dividend of 48 cents per share had been announced, bringing the first-half dividend to 90 cents per share.

DBS’ commercial book in particular benefited from higher interest rates and broad-based growth in non-interest income activities, said DBS CEO Piyush Gupta.

“We achieved another set of record results as second-quarter and first-half earnings reached new highs with return on equity at 19%,” Gupta said. “During the quarter, we commenced work to strengthen the resilience of our technology whilst awaiting completion of the independent review into the recent digital disruptions.”

For H1, total income rose 34% to S$10b, driven by a higher net interest margin as well as improved card fees and treasury customer income. This was moderated by lower trading income from its Treasury Markets business.

Profit before allowances was S$3.11b, 50% higher than a year ago and 2% above the previous quarter.

Non-performing loan (NPL) ratio is 1.1%.

In Q2, the commercial book net interest margin rose 96 basis points, including 12 basis points during the quarter. Fee income grew 7% during the second quarter, DBS’ first year-on-year increase in six quarters, thanks to a growth in wealth management and cards.

Treasury customer sales and other income rose 21% in Q2.

For the remainder of 2023, Gupta noted some macroeconomic uncertainty, but remained optimistic that the DBS franchise will remain able to capture business opportunities.

“Our longstanding prudence in building general allowance reserves and maintaining strong capital ratios will position us well to withstand headwinds,” Gupta said.