DBS records historic profit as leadership transition approaches

In Singapore, DBS Bank announced significant financial results, reporting a record high net profit of 11.4 billion Singapore dollars ($8.4 billion) for the financial year ending December 31, 2024. This signifies an 11% increase from the previous year, while revenue grew by 10% to SG$22.3 billion. The bank's net interest income rose 5% year-on-year, totaling SG$15.04 billion. The impressive full-year performance reflects the bank's strong operational management amidst a changing economic landscape. As the bank prepares for a leadership change, with Piyush Gupta stepping down as CEO after this results announcement, the focus remains on the bank's financial health and future strategies. Gupta's forecast suggested that DBS eyes a higher net interest income in 2025, driven by reduced expectations of interest rate cuts by the U.S. Federal Reserve. Initially anticipating four cuts, the bank has lowered its projection to two, influencing their outlook on net interest income. Alongside the strong financial results, DBS announced a final dividend of 60 Singapore cents per share for the fourth quarter, marking a six-cent increase from the previous payout. Consequently, the total dividend for the financial year stands at SG$2.22 per share, up 27% from last year. Moreover, DBS plans a new 'capital return' dividend of 15 Singapore cents per share in each quarter of 2025, aimed at managing excess capital and committing to return capital to shareholders over time. In this transition period, Gupta emphasized that the bank's capital adequacy is robust, currently at 17%, which exceeds their target operating range of 13%. This position enables DBS to return excess capital judiciously to shareholders, reflecting their commitment to stakeholder value. Gupta expressed satisfaction with the breadth of the bank's performance and the successful navigation through uncertainties in the region. This announcement represents not only a financial milestone for DBS but also marks a pivotal moment as it prepares to endorse a new leadership era with Tal Su Shan taking over the CEO role on March 28.