DBS Group Holdings Limited (SGX: D05), or commonly known as just DBS, is not only the largest bank in Singapore, but also in Southeast Asia by assets.
Not only is the Singapore headquartered bank a constituent in the country’s benchmark Straits Times Index, but it also has the heaviest weightage, at around 25% at the time of writing, way ahead of OCBC, which has the second heaviest weightage, at around 14%, followed by UOB, at around 12%.
DBS provides a full range of services in consumer, SME (small and medium enterprises), and corporate banking, with a presence in 19 markets. The bank’s focus is in Greater China, Southeast Asia, and South Asia.
One of the biggest news surrounding the bank is the change of CEO, where Mr Piyush Gupta will be retiring at the bank’s upcoming AGM on 28 March 2025, after 15 years at the helm. Taking over his place will be Ms Tan Su Shan, who is currently the Deputy CEO and the Group Head of Institutional Banking at the bank.
DBS is the first of the 3 Singapore-listed banks to release its results for the 4th quarter, as well as for the full year ended 31 December 2024 (i.e., FY2024) this morning (10 February). For information, UOB will be reporting its results next Wednesday (19 February), with OCBC on 26 February.
In today’s post, you will find my review of DBS’ latest financial figures and ratios, as well as its dividend payouts:
Financial Figures (4Q FY2023 vs. 4Q FY2024, and FY2023 vs. FY2024)
In this section, you will find my review of DBS’ financial figures reported for the 4th quarter, as well as for FY2024, compared against the financial figures reported in the respective periods a year ago:
4Q FY2023 vs. 4Q FY2024:
| 4Q FY2023 | 4Q FY2024 | % Variance | |
| – Net Interest Margin (S$’mil) | $3,434m | $3,728m | +8.6% |
| – Net Fee & Commission Income (S$’mil) | $867m | $968m | +11.6% |
| – Other Non-Interest Income (S$’mil) | $706m | $809m | +14.6% |
| Total Income (S$’mil) | $5,007m | $5,505m | +9.9% |
| Total Expenses (S$’mil) | $2,205m | $2,395m | +8.6% |
| Net Profit (S$’mil) | $2,269m | $2,522m | +11.2% |
My Observations: Overall, it was a very resilient set of results reported by Singapore’s largest bank for the 4th quarter – with its net interest margin recording a high single-digit percentage increase, and its net fee and commission income, as well as its other non-interest income recording double-digit percentage increases.
The 8.6% year-on-year climb in DBS’ net interest margin to S$3,728 million was because of a 2 basis point (bp) increase in its net interest margin (from 2.13% in 4Q FY2023 to 2.15% in 4Q FY2024).
For the 11.6% year-on-year jump in the bank’s net fee and commission income to $968 million, it was due to improvements made in its wealth management fees.
Other non-interest income also saw a 14.6% year-on-year spike to S$809 million from a 41% jump in treasury customer sales and property disposal gains. This is in addition to a 40% jump in its markets trading income from the low base a year ago.
Finally, after accounting for a S$100 million provision for Corporate Social Responsibility (CSR) commitment to DBS Foundation and other charitable causes, DBS’ net profit increased by 11.2% year on year to S$2,622 million.
FY2023 vs. FY2024:
| FY2023 | FY2024 | % Variance | |
| – Net Interest Margin (S$’mil) | $13,642m | $14,424m | +5.7% |
| – Net Fee & Commission Income (S$’mil) | $3,384m | $4,168m | +23.2% |
| – Other Non-Interest Income (S$’mil) | $3,154m | $3,705m | +17.5% |
| Total Income (S$’mil) | $20,180m | $22,297m | +10.5% |
| Total Expenses (S$’mil) | $8,056m | $8,895m | +10.4% |
| Net Profit (S$’mil) | $10,062m | $11,289m | +12.2% |
My Observations: For the full year, DBS’ total income of S$22,297 million, and net profit of S$11,289 million are new records. Net fee and commission income also surpassed S$4 billion for the first time. In my opinion, its a remarkable performance.
Net interest income saw a 5.7% year-on-year improvement to S$14,424 million from a 4-bp increase in its commercial book net interest margin (from 2.76% in FY2023 to 2.80% in FY2024).
The 23.2% year-on-year jump in the bank’s net fee and commission income to a high of S$4,168 million was led by wealth management.
Other non-interest income was up by 17.5% year on year to S$3,705 million, as treasury customer sales reached a new high, alongside a rebound in markets trading income.
Finally, after accounting for S$100 million provision for CSR (same as the previous year), DBS’ net profit was up by 12.2% to a new record of S$11,289 million.
Key Financial Ratios (3Q FY2024 vs. 4Q FY2024)
There are 3 key financial ratios that I always focus on when I review a bank’s results every quarter, and they are: (i) net interest margin, (ii) return on equity, and (iii) non-performing loans ratio.
For those who are new to these financial terms, here’s a quick layman explanation for them – net interest margin, expressed in percentage terms, is the difference between how much the bank earns for lending money and how much it pays on deposits (of course, the higher this is, the better, as it will aid in the improvement of the bank’s net interest income); return on equity, which is also expressed in percentage terms, is the amount of profits generated for every dollar of shareholders’ money it uses in its business (again, the higher this is, the better); and finally, non-performing loans ratio, also expressed in percentage terms, measures how much of a bank’s loans that may be at risk of not being fully paid back (needless to say, the lower this is, the better).
In the table below, you will find a comparison of DBS’ net interest margin, return on equity, as well as non-performing loans ratio reported for the current quarter under review (i.e., 4Q FY2024 ended 31 December 2024) against that reported in the previous quarter 3 months ago (i.e., 3Q FY2024 ended 30 September 2024):
| 3Q FY2024 | 4Q FY2024 | Difference (in Percentage Points – pp) | |
| Net Interest Margin (%) | 2.11% | 2.15% | +0.4pp |
| Return on Equity (%) | 18.7% | 15.8% | -2.9pp |
| Non-Performing Loans Ratio (%) | 1.0% | 1.1% | -0.1pp |
My Observations: Net interest margin was up by 0.4 percentage points (pp) to 2.15% compared to the previous quarter, as higher markets trading more than offsets a lower commercial book.
Other non-performing loans ratio inched up by 0.1pp to 1.1% as non-performing assets rose 7.6% (from S$4,680 million in 3Q FY2024 to S$5,036 million in 4Q FY2024).
Dividend Payout to Shareholders
DBS is the only one among the 3 Singapore-listed banks to pay out a dividend to the shareholders once every quarter (which is something I like as an income investor, as it provides me with a more regular flow of cash), while the other 2 banks pays out a dividend on a half-yearly basis.
In the 2 tables below, you will find DBS’ dividend declared for 4Q as well as for the full year, compared against the amount declared in the respective periods a year ago:
4Q FY2023 vs. 4Q FY2024:
| 4Q FY2023 | 4Q FY2024 | % Variance | |
| Dividend Per Share (S$’cents) | 54.0 cents | 75.0 cents | +38.9% |
On top of a 11.1% year-on-year increase in its dividend to 60.0 cents (and this will be the quarterly dividend amount in FY2025), the bank also introduced a “capital return dividend” of 15 cents/share per quarter to be paid out in FY2025 (meaning to say that the total dividend every quarter in FY2025 should be 60.0 cents, plus 15 cents, and this amounts to 75 cents). In the next 2 years (i.e., FY2026 and FY2027), it expects to pay out a similar amount of capital either through this or other mechanisms, barring unforeseen circumstances.
FY2023 vs. FY2024:
| FY2023 | FY2024 | % Variance | |
| Dividend Per Share (S$’cents) | 192.0 cents | 237.0 cents | +23.4% |
If you are a shareholder of DBS, do take note of the following dates on the payout of its dividends for the 4th quarter:
Ex-Date: 07 April 2025
Record Date: 08 April 2025
Payout Date: 16 April 2025
CEO Mr Piyush Gupta’s Comments & Outlook (from the Bank’s Press Release)
“We achieved a record financial performance in 2024 with return on equity of 18.0%, one of the highest among developed market banks. Balance sheet management supported net interest income growth while improving investor sentiment drove wealth management fees and treasury customer sales to new highs.
While macroeconomic and geopolitical uncertainties persist, the franchise and digital transformations carried out over the past decade position us well to continue delivering healthy returns. As I reflect on my journey at DBS, I feel good about where the bank is and am confident it will reach further heights under Su Shan’s leadership.”
Closing Thoughts
In the final quarter and full-year of reporting under CEO Piyush Gupta’s leadership, it was another quarter of record breaking results delivered. Particularly, the bank’s total income and net profit for the full year hit new highs. Its net fee and commission income in the same time period also surpassed the S$4 billion mark for the first time.
With its resilient set of results, dividends for the 4th quarter was increased by 11.1% year on year to 60.0 cents/share, and the payout will be as such in FY2025. Additionally, shareholders can also look forward to a capital return of 15.0 cents/share in the coming quarters of FY2025 ahead – meaning to say the total dividend payout will be 75.0 cents/share.
On the other hand, slight negatives were noted in the 2.9pp in its return on equity for the 4th quarter compared to the previous quarter 3 months ago (i.e., 3Q FY2024), as well as a slight 0.1pp increase in its non-performing loans ratio (which can be attributed to a 7.6% increase in its non-performing assets). However, compared to FY2023, its return on equity and non-performing ratios remained the same at 18.0% and 1.1% respectively.
With that, I have come to the end of my review of DBS Group Holdings’ latest results for the 4th quarter, as well as for FY2024. Do take note that all the opinions expressed in this post are purely mine which I’m sharing for educational purposes only. They are not any buy or sell calls for the bank’s shares. Please do your own due diligence before you make any investment decisions.
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Disclaimer: At the time of writing, I am a shareholder of DBS Group Holdings Ltd.
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