DBS net profit up 18%; 48 cents interim dividend announced

Citi Taiwan contributed S$10b in loans.

DBS’ net profit rose 18% to S$2.63b in Q3 2023, buoyed by total income reaching a record high $5.19b during the quarter.    

Compared to the previous quarter, net profit dipped slightly by 2%, as higher expenses and total allowances offset the higher income.

The board has announced an interim one-tier tax exempt dividend of 48 cents for each DBSH ordinary share, for a total dividend payable of over S$1.23b. Payment date is on or about 27 November.

Higher net interest margin and the growth of the bank’s commercial book non-interest income led to the raises, DBS said in its latest financial update.

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The bank’s non-performing loan (NPL) ratio saw little changes from the previous quarter, at 1.2%.

General allowances of S$18m were taken in Q3.

For the first nine months of 2023, net profit is 35% higher than a year ago, reaching a new high of S$7.89b. Total income for the first nine months is 27% higher at S$15.2b, driven by the commercial book.

Expenses is also 14% higher, whilst the cost-income ratio improved four percentage points to 39%. 

Specific allowances rose three basis points to 11 bp of loans, whilst general allowances of S$75m were taken.

Loans grew 1% or S$5b in constant-currency terms from the previous quarter to S$420n. Notably, the consolidation of Citi Taiwan contributed S$10 to loans, DBS said.

Excluding Citi Taiwan, non-trade corporate loans declined 1% or S$2b from higher repayments whilst trade loans fell 3% or S$1b due to unattractive pricing. Housing and other consumer loans were also 1% or S$1b lower.