DBS’ 2024 net profit up 11%; plans quarterly capital return dividend

DBS will also set aside S$32m for a one-time bonus of S$1,000 to all staff.

DBS Bank Limited hit a record performance in 2024, with net profit rising 11% year-on-year (YoY) to S$11.4b (approximately US$8.4b), its latest financial results showed.

For Q4, net profit grew 10% YoY to S$2.62b (US$1.93b).

The board has proposed a final dividend of 60 Singaporean cents (S$0.6) and outlined plans to introduce a “quarterly capital return” dividend for the financial year 2025.

To start, the board is mulling introducing a capital return dividend of S$0.15 per share per quarter, to be paid out over FY2025.

Over the next two years, DBS expects to pay out a similar amount of capital, barring unforeseen circumstances.

Separately, DBS will set aside S$32m for a special one-time bonus of S$1,000 for all its staff except senior managers apart from additional reward. DBS said that this is for the staff’s contribution to its record performance.

For 2025, incumbent CEO Piyush Gupta noted that macroeconomic and geopolitical uncertainties will persist but expressed confidence in DBS’ ability to deliver healthy returns.

“[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,” Gupta said.

Full-year total income
DBS’ full-year total income rose 10% to S$22.3b (US$16.43b) for FY2024, attributed to the expansion of its commercial book net interest margin (NIM), its fee income crossing S$4b for the first time ever, and treasury customers sales reaching a new high.

Return on equity is at 18%, whilst cost-income ratio was 40%.

Commercial book net intereste income for FY2024 rose 5% YoY to S$15b (US$11.06b).

Net interest margin expanded 4 basis points to 2.8%.

Loans rose by 3% to S$12b, whilst deposits climbed 4% to S$20b (US$14.74b).

Commercial book net fee income grew 23% to S$4.17b (US$3.07b), a new record high, DBS said. Wealth management fees pushed up income after rising by 45% to a record high S$2.18b (US$1.61b).

Card fees grew 19% to S$1.24b (US$913.87m), thanks to the consolidation of Citi Taiwan and due to higher spending.

Loan related fees are 16% YoY higher, at S$644m ($474.62m) for FY2024.

However, investment banking fees declined 19%, which DBS blamed on slower equity capital market activities.

Expenses are 10% higher compared to FY2023, at S$8.9b (US$6.56b) for 2024. Citi Taiwan reportedly accounted for three percentage points of the increase, DBS said.

Total income for the fourth quarter period also rose 10% to S$5.51b (US$4.06b) on the back of growth in both its commercial book and markets trading.

(US$1 = S$1.36; as of 10 February 2025, Google)