DBS Group reported net profit of $3.5 billion (SGD 4.72 billion) for full-year 2020, 26% below the previous year’s record. Profit before allowances rose 2% to a new high of $6.3 billion(SGD 8.43 billion). Total income was stable at $11 billion (SGD 14.6 billion) despite the economic disruption caused by the pandemic. Total allowances more than quadrupled to $2.3 billion (SGD 3.07 billion) as general allowances of $1.2 billion (SGD 1.71 billion) were conservatively set aside for potential risks arising from the pandemic.
For the fourth quarter of 2020, net profit fell 33% from a year ago to SGD 1.01 billion due to a lower net interest margin and higher total allowances. Business momentum was healthy with broad-based loan growth and resilient fee income.
DBS CEO Piyush Gupta said, “Our record operating performance in one of the most challenging periods on record attests to the quality of our franchise and nimble execution. Business momentum was sustained in the fourth quarter and our pipeline for loans and fee income is healthy. We have been proactive through the crisis and enter the year with new growth platforms. Lakshmi Vilas Bank in India and the securities joint venture in China will enhance our presence in both key markets. Initiatives such as the Digital Exchange, supply chain digitalisation and efforts to broaden wealth management to the mass market will reinforce our leadership in digital finance. These platforms will strengthen our ability to continue supporting customers and delivering shareholder returns.”
Re-disseminated by The Asian Banker