DBS Group's profits up 14% to $4.61b in 2019

A 17% growth in fee income boosted income in Q4.

DBS Group's net profit rose 14% YoY to $4.61b (S$6.39b) in 2019, from $4.06b (S$5.63b) in 2018, the company announced in an SGX filing. Total income grew 10% to $10.48b (S$14.54b) over the same period.

In Q4, profit expanded 14% YoY to almost $1.09b (S$1.51b), attributed to a broad-based business momentum. Meanwhile, total income climbed 7% to $2.49b (S$3.46b) from a loan growth and a double-digit improvement in fee income.

Also read: DBS Group profits up 15% $1.63b in Q3

For the full-year, loans grew by 4% or $10.81b (S$15b) to $258.08b (S$358b) as nontrade corporate loans increased $8.65b (S$12b) and wealth management customer loans rose $2.88b (S$4b).

Demand for investment products and income from equity capital markets reached new highs, resulting in wealth management fees and investment banking fees to rise 13% and 66%, respectively.

By business unit, Consumer Banking / Wealth Management (CBG/WM) income jumped 11% to $4.54b (S$6.3b) on the back of stronger deposit and investment product income. Institutional Banking (IBG) income edge up 5% to $4.38b (S$6.07b) from higher cash management, loans and investment banking income. Treasury Markets income also accelerated 39% to $671.88m (S$932m) as the unit benefited from more conducive market conditions than the previous year.

Also read: DBS expects $1.4b net profit for Q4 2019: analyst

On a quarterly basis, profit fell 7% whilst income fell 9% due to seasonally lower non-interest income and a decline in net interest margin from falling interest rates.

Net interest income edged up 4% YoY to $1.75b (S$2.43b) in the quarter as loans grew 4% to $258.08b (S$358b). At the same time, fee income rose 17% to $534.19m (S$741m), led by a 31% leap in wealth management fees. Other non-interest income climbed 5% to $211.95m (S$294m) from higher gains on investment securities.

Further, non-performing assets (NPA) dipped 3% to $4.16b (S$5.77b) as new NPA formation was more than offset by write-offs and recoveries. The majority of the new formation was from exposures that were fully secured. The NPL rate remained unchanged at 1.5%.

Its board proposed a final dividend of $0.24 (S$0.33) per share. With this, the annualised dividend will expand 10% to $1.32 per share.