SINGAPORE, 29 April 2019 – DBS Group’s net profit for first quarter 2019 increased 9% to a record SGD 1.65 billion.
Total income grew 6% to a new high of SGD 3.55 billion. Healthy business momentum and a higher net interest margin more than offset the impact of a high base for wealth management, brokerage and investment banking fee income as well as a property gain a year ago. New non-performing asset formation remained low and total allowances halved. Return on equity rose to 14.0%, the highest in more than a decade.
Earnings up 25% from previous quarter
Compared to the previous quarter, net profit was 25% higher, boosted by a recovery in wealth management and trading income. Overall business momentum was sustained.
Net interest income rose 1% on a day-adjusted basis. Loans grew 1% as non-trade corporate loans increased 3% from working capital and deal-related borrowing led by Singapore and Hong Kong corporates.
Trade loans declined 4%. Net interest margin rose one basis point. Excluding Treasury Markets activities, net interest margin rose five basis points mainly from higher interest rates in Singapore as well as the repricing of housing loans.
Net fee income rose 15%. Wealth management fees increased 44% with a recovery in market sentiment from the previous quarter’s volatility. Loan-related fees were also higher.
Other non-interest income grew 83% as trading income doubled from a weak quarter. Expenses were stable and profit before allowances was 18% higher.
Dividend payment frequency changed to four times a year The Board decided that, from financial year 2019, dividends will be paid four times a year, instead of two times a year, to provide shareholders with more regular income streams.
Dividend to payout 30 cents per qtr.
Chart wise, looks like it may likely re-attempt 27.50. Crossing out smoothly that may drive the price higher to 28 then 28.50 with extension to 29.25.
Pls dyodd.
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