DBS starts the year strong as Ql profit hits new high of $2.95b

Its fee income gets boost from stronger market sentiment, higher card spending

- Prisca Ang

DBS Group Holdings had a strong start to its earnings for 2024 as its fee income received a boost from stronger market sentiment and higher spending on credit cards.

Net profit for the first quarter rose 15 per cent to a new high of $2.95 billion, up from $2.57 billion a year ago, it said on May 2.

Return on equity also hit 19.4 per cent, while total income grew 13 per cent to $5.56 billion. Both also set fresh records.

Excluding costs from the integration of Citibank Taiwan, net profit stood at $2.96 billion.

The earnings of Singapore and South-east Asia's largest bank blew past the $2.5 billion consensus forecast by analysts in a Bloomberg poll.

The board has declared an interim dividend of 54 cents per share, with additional shares arising from its recent bonus issue also qualifying for the dividend. In February, it had proposed one bonus share for every 10 shares held.

DBS shares closed 1.86 per cent higher at $35.55 on May 2. Its market capitalisation crossed $100 billion - a first for a Singapore-listed company as its shares touched $36 earlier in the morning amid heavy trading.

Meanwhile, peer UOB edged up 0.23 per cent to $30.47, while OCBC Bank rose 0.63 per cent to $14.34.

DBS chief executive Piyush Gupta said that the lender had broadbased business momentum as loans grew, and fee income and treasury customer sales reached new highs.

While geopolitical tensions persist, macroeconomic conditions are resilient as growth in Asia is expected to stay stable, and factory activity and consumer demand seen to hold up, he said in a virtual media briefing.