DBS Group (D05) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 net profit of SGD 3.03 billion, up 15% year-over-year, and nine-month net profit of SGD 8.79 billion, up 11%, driven by broad-based income growth and strong wealth management performance.

• Return on equity reached 18.8% for the nine months.

• Asset quality improved, with NPL ratio declining to 1.0% and non-performing assets down 8% sequentially.

• Announced a new SGD 3 billion share buyback program, with shares to be cancelled for the first time.

• Commercial book net interest margin remained stable, with balance sheet growth offsetting lower group NIM.

Financial highlights

• Q3 net profit rose 15% year-over-year to SGD 3.03 billion; total income up 11% to SGD 5.75 billion.

• Commercial book net interest income increased 3% year-over-year to SGD 3.80 billion, with net interest margin stable at 2.83%.

• Fee income hit a record, up 32% year-over-year, led by 55% growth in wealth management.

• Markets trading income reached a 10-quarter high, doubling year-over-year and up 77% sequentially.

• Cost-to-income ratio stable at 39% for both Q3 and nine months.

Outlook and guidance

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

• Non-interest income projected to grow at high single digits, led by wealth management and treasury sales.

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

• Pre-tax profit for next year forecasted to be around this year's level, with potential upside if interest rates do not fall as much as expected.

• Management highlighted a benign macroeconomic and interest rate outlook, supporting continued strong performance.