DBS Group (D05) Q3 2024 (Q&A) earnings summary

Executive summary

• Achieved record net profit for 3Q24, up 15% YoY to SGD 3.03 billion, and nine-month net profit up 11% to SGD 8.79 billion, with ROE at 18.8%.

• Total income rose 11% YoY in 3Q to SGD 5.75 billion, driven by broad-based growth, especially in wealth management and markets trading.

• Board announced a new SGD 3 billion share buyback programme and a 3Q dividend of 54 cents per share.

• Asset and liability management focused on duration extension and yield pickup, with SGD 60 billion in new fixed assets replacing SGD 45 billion maturing at higher yields.

• Wealth management remains a key growth driver, with AUM investment ratios at record highs and significant headroom for further growth.

Financial highlights

• Commercial book NIM stable at 2.83% in 3Q; group NIM slightly lower due to markets trading deployment.

• Fee income hit a new high, led by a 55% rise in wealth management fees; markets trading income highest in ten quarters.

• Cost-income ratio stable at 39% for 3Q, but expected to rise into the 40s due to slower income growth and expense growth moderating after Citi Taiwan integration.

• Asset quality improved, with NPL ratio declining to 1.0% and allowance coverage at 135%.

• Oil and gas sector recoveries contributed SGD 130 million, with further recoveries expected.

Outlook and guidance

• 2025 net interest income expected to be around 2024 levels, with a slight NIM decline offset by loan growth.

• Non-interest income growth projected in high single digits, led by wealth management and treasury sales.

• Cost-income ratio expected in the low-40% range; net profit to be lower due to a 15% global minimum tax.

• Loan growth guidance of 3–5% for next year, supported by strong pipelines in Asia.

• Medium-term ROE expected to remain strong at 16–17% even with rate cuts.