DBS’ net profit up 9% to S$5.76b in H1; Q2 dividend is 54 cents

Net profit rose 4% in Q2 as loans and deposits grew.

DBS achieved a net profit of US$4.34b (S$5.76b) in the first six months of 2024, 9% year-on-year (YoY) higher than the same period last year, its latest financial statement showed.

Net profit in Q2 is US$2.1b (S$2.8b), a 4% YoY increase, which DBS CEO Piyush Gupta attributed to the bank’s earlier efforts to build resilience against economic and interest-rate related risks.

“Our high general allowance reserves, reduced interest rate sensitivity, strong capital position and ample liquidity will position us to continue supporting customers and delivering shareholder returns,” Gupta said.

The Singapore-headquartered banks has announced a dividend of SGD 54 cents per share for Q2, bringing the first half dividend at S$1.08 per share.

In Q2, net interest income (NII) rose 5% compared to a year ago to S$3.77b on the back of net interest margin (NIM) improving 2 basis points to 2.83%. Compared to Q1, NII is 3% higher and NIM improved 6bp.

Loans and deposits grew 3% and 6% in the same quarter, bolstered by the consolidation of Citi Taiwan, DBS said. 

Loans are S$425b as of end-June, with trade loans and wealth management loans growing. It was offset by a decline in non-trade corporate loans.

Deposits were S$551b as of end-June, with CASA and fixed deposits “little changed.”

Net fee income rose 27% to a record S$1.05b in Q2. Wealth management fees jumped 37% to S$518b. DBS said that this was due to “a shift from deposits into investments and bancassurance, as well as an expansion in assets under management.”

Card fees are 32% higher in S$313m by the end of Q2. Loan related fees rose 40% to S$186m over the same period.

Expenses increased by 12% to S$2.17b in Q2, with Citi Taiwan accounting for the 5 ppt of the increase.

Compared to Q1, expenses were 4% higher, led by higher staff costs, DBS said.

(US$1 = S$1.33; as of 7 August 2023, 2:40PM)