- DBS’s 1Q24 net profit of S$2,951m (+15% y-o-y) was significantly above our expectation. Management will continue to review DBS’s capital structure in view of returning more surplus capital to shareholders.
DBS’ 1Q24 Results
- - Read this at SGinvestors.io -
Resilient NIM despite lower HIBOR.
- NIM expanded 2bp y-o-y and 1bp q-o-q to 2.14% in 1Q24. Net interest income grew 7% y-o-y.
- DBS benefitted from repricing of fixed-rate assets at higher interest rates. 3M HIBOR declined 43bp q-o-q to 4.72% and had a negative impact of 2bp on NIM.
- - Read this at SGinvestors.io -
- Deposits expanded 1% or S$7b q-o-q, while CASA outflow has eased.
Strong organic growth for fee income.
- Fees & commissions jumped 23% y-o-y and 20% q-o-q in 1Q24. The recovery was led by wealth management (+47% y-o-y), cards (+33% y-o-y) and loans-related fees (+30% y-o-y).
- Wealth management benefitted from stronger market sentiment and high net worth clients deploying the expanded AUM in a wide range of investment products.
- Both wealth management and cards benefitted from the consolidation of Citi Taiwan. Excluding Citi Taiwan, growth from wealth management and cards would still be sizeable at 35% and 12% y-o-y respectively.
Bonanza quarter for treasury sales.
- Read more at SGinvestors.io.
