• Published on 7 February 2024
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DBS's net profit up 26% to $7.6B in 2023

DBS Group announced that it achieved a record performance in 2023 as net profit rose 26% to SGD 10.3 billion ($7.6 billion).

Return on equity climbed from 15.0% to a new high of 18.0%. Total income grew 22%, exceeding SGD 20 billion ($14.8 billion) for the first time, driven by a higher net interest margin, a rebound in fee income and record treasury customer sales. Asset quality was resilient with specific allowances remaining low at 11 basis points of loans.

For the fourth quarter, net profit grew 2% from a year ago to SGD 2.39 billion ($1.7 billion). A 9% rise in total income to SGD 5.01 billion ($3.7 billion) from higher net interest income and non-interest income resulted in a 7% increase in profit before allowances to SGD 2.80 billion ($2.08 billion). Total allowances of SGD 142 million ($105.7 million) were higher than a year ago when there had been a general allowance write-back. Compared to the previous quarter, net profit fell 9% due to a lower net interest margin and seasonally lower non-interest income.

Piyush Gupta, CEO of DBS, said: “We achieved an outstanding financial performance in 2023 with return on equity of 18.0% significantly above previous years. The franchise and digital transformations carried out over the past decade have reaped substantial benefits in a higher interest rate environment. The stronger profitability has enabled us to step up capital returns to shareholders through a bonus issue, as well as make an inaugural contribution of SGD 100 million ($74.4 million) towards a 10-year community support initiative. While interest rates are expected to soften and geopolitical tensions persist, our franchise strengths will put us in good stead to sustain our performance in the coming year.”

Re-disseminated by The Asian Banker