Singapore-based financial service group DBS has posted a net profit of $1bn (S$1.39bn) in Q4 2021, a 37% growth from the same period a year ago.
This rise was driven by sustained business momentum and lower allowances for bad loans.
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However, this figure represents a 18% decrease from the previous quarter, hit by lower non-interest income.
Net interest income and non-interest income rose 1% during the quarter to S$2.14 bn and S$1.15bn, respectively.
Growth across transaction services, cards, investment banking and wealth management resulted in a 9% rise in DBS’ fee income during the quarter to S$815m.
Other non-interest income fell 15% to S$338m due to reduced gains from investment securities as well as trading income.
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By GlobalDataExpenses at the bank increased 6%, primarily owing to government grants in the previous year.
DBS announced fourth-quarter dividend of 36 cents per share, up three cents per share from Q3 2021.
Annual highlights
For the full year ended 31 December 2021, net profit at DBS was S$6.8bn, a 44% jump from a year earlier.
The bank’s consumer banking and wealth management income dipped 8% year-on-year to S$5.32bn.
Institutional Banking income rose 4% to S$5.98bn. Treasury Markets income grew 5% to a record S$1.51bn, supported by equities and credit trading.
DBS CEO Piyush Gupta said: “The robust growth in our loan book, along with the solid 15% growth in fee income, speak to a recovering economic environment as well as our broadly diversified franchise. I am pleased that we have managed expenses and credit costs well through this period. Equally important, we have made significant investments in our future by expanding our footprint in India, Taiwan and the Greater Bay Area and building new digital platforms to give us additional enginesof growth. “The Board raised the quarterly dividend by 9% to 36 cents per share. To share our success with the community, we used a one-time gain to contribute a further SGD 100 million for the DBS Foundation and other charitable causes. We look forward to the coming year with a prudently managed balance sheet that is poised to benefit from rising interest rates.”
