DBS plans to increase its final dividend to 60 cents per share - up from 54 cents paid in the preceding three quarters

DBS Group Holdings has reported a net profit of $2.62 billion for its 4QFY2024 ended Dec 31, 2024, up 10% y-o-y but down 13% q-o-q. This brings its full-year earnings to a new record of $11.4 billion, up 11% over the preceding FY2023.

The bank enjoyed all-round growth from its commercial book net interest margin, fee income, treasury customer sales and markets trading income. Meanwhile, cost-income ratio was held steady at 40% and return on equity reached 18%.

Its non-performing loan ratio for 4QFY2024 was 1.1%, up from 1% in the preceding 3QFY2024.

To reward eagerly awaiting shareholders, the bank plans to pay a final dividend of 60 cents, up from 54 cents per quarter it had paid from 1QFY2024 to 3QFY2024.

DBS shareholders will receive a total of $2.22 per share for FY2024, up 27% over the preceding year.

As part of its bid to return excess capital in the coming three years, DBS will introduce a so-called capital return dividend of 15 cents per share per quarter to be paid out over FY2025. 

In the subsequent two years, it expects to pay out a similar amount of capital either through this or other mechanisms, barring unforeseen circumstances.

The bank, however, did not announce a share split as some have suggested.

This capital return dividend is the latest in a series of capital management initiatives in recent years including higher ordinary dividends, bonus issues, occasional special dividends and a share buyback programme. The bank says it will continue to consider all forms of returning capital.

“We achieved a record financial performance in 2024 with a return on equity of 18.0%, one of the highest among developed market banks," says CEO Piyush Gupta, in his final full-year results report after a decade at the helm.

"Balance sheet management supported net interest income growth while improving investor sentiment drove wealth management fees and treasury customer sales to new highs," he adds.

“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," says Gupta, who is handing over to deputy CEO Tan Su Shan.

"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.”

DBS shares closed at $44.68 on Feb 7, up 0.81% for the day but a gain of more than 50% in the past year.

Chart: DBS