DBS’s Q4 net profit fell 10% last year, with results missing expectations

(Singapore, 9th) DBS Group, Singapore and Southeast Asia’s largest bank, reported a 10.47% year-on-year decline in fourth-quarter net profit to S$2.258 billion (about RM7.0 billion), missing market expectations. Revenue slipped 3.16% to S$5.331 billion (about RM17.145 billion). Quarterly earnings per share (EPS) came in at S$3.30.

Pre-tax profit for the quarter fell 5.66% to S$2.798 billion (about RM8.673 billion). Net interest income edged down 3.62% to S$3.593 billion (about RM11.138 billion), while the net interest margin (NIM) narrowed by 0.22 percentage points to 1.93%. Return on equity (ROE) declined by 2.3 percentage points to 13.5%. Asset quality improved slightly, with the non-performing loan (NPL) ratio easing 0.1 percentage points to 1.0%.

For the full year, DBS posted net profit of S$10.933 billion (about RM33.890 billion), down 3.15%, mainly due to higher tax expenses. Full-year revenue rose 2.7% to S$22.9 billion (about RM71.0 billion). Full-year NIM dipped 0.12 percentage points to 2.01%, and ROE fell 1.8 percentage points to 16.2%.

CEO Piyush Gupta said that despite interest-rate headwinds, the bank expects revenue this year to be broadly in line with last year, while profit may come in slightly lower. He added that net interest income is expected to be pressured by two Fed rate cuts this year and a stronger Singapore dollar, potentially resulting in a lower figure than last year.