<Bullish News> DBS posts record high earnings of $2.24 bil in 3QFY2022, up 32% y-o-y

DBS has declared a quarterly dividend of 36 cents per share, bringing its total dividend for the 9MFY2022 to $1.08 per share.

For the 3QFY2022 ended Sept 30, DBS Group Holdings reported earnings of $2.24 billion, which is a new high for the group.

The quarter’s earnings, which were up by 32% y-o-y and 23% q-o-q, were attributed to the higher net interest margin (NIM) and sustained business momentum.

Return on equity (ROE) also reached a new high of 16.3%

During the period, DBS’s net interest income (NII) increased by 44% y-o-y to $3.02 billion, as its NIM surged by 47 basis points (bps) to 1.90% and loan growth grew 6% y-o-y.

Net fee and commission income, however, fell 13% y-o-y to $771 million, due to lower wealth management and investment banking fees and offset by higher card- and loan-related fees.

Card fees rose 23.9% y-o-y to $223 million on record overall spending on the back of a continued recovery in travel. Loan-related fees grew 15.1% y-o-y to $122 million. Transaction fees fell by 3.8% y-o-y at $230 million.

Other non-interest income surged by 32% y-o-y to $753 million from higher Treasury Markets non-interest income, treasury customer income and investment gains.

As a result, total income increased by 28% y-o-y to a record $4.54 billion.

Expenses rose 9% y-o-y to $1.83 billion led by higher staff costs.

According to the group, underlying loan momentum during the quarter stood strong on the back of faster non-trade corporate and housing loan growth. The gains were moderated by lower trade loans as maturing exposures were not replaced due to “unattractive pricing”. Including trade loans, overall loans rose to $429 billion. In constant currency terms, loan momentum grew by 2% y-o-y in the 3QFY2022.

During the 9MFY2022, DBS’s earnings increased by 8% y-o-y to a new high of $5.85 billion.

NII increased 22% y-o-y to $7.66 billion on the back of a 20 bps expansion in NIM and 6% higher loan growth.

Net fee and commission income fell 10% y-o-y to $2.43 billion due to lower wealth management and investment banking fees, which more than offset growth in other fee activities.

Other non-interest income dipped by 0.15% y-o-y to $1.99 billion.

Total income for the 9MFY2022 grew by 10% y-o-y to $12.08 billion.

Expenses grew 7% to $5.13 billion, and profit before allowances rose 12% to $6.96 billion.