DBS Group’s net profit rose strongly for the first quarter this year as healthy business momentum buoyed the group's total income.
Despite the high base for wealth management, brokerage and investment banking fee income and a property gain last year, DBS Group managed to report net profit growth of 9 percent to reach a record S$1.65 billion. Healthy business momentum coupled with a higher net interest margin more than offset these effects.
«We have had a good start to the year as business momentum was sustained and non-interest income recovered from the recent weakness. The record earnings and ROE progression demonstrate the strengthened profitability of our franchise from digitalisation, a shift towards higher-returns businesses and more nimble execution,» said DBS CEO Piyush Gupta in a media statement. Group total income grew 6 percent to a new high of S$3.55 billion.
Dividend Payment Frequency Changed
DBS' board decided that dividends will be paid four times a year from the financial year 2019, instead of two times a year, to provide shareholders with more regular income streams. The policy of paying sustainable dividends that rise progressively with earnings remains unchanged.
For the first quarter, the board declared a dividend of 30 Singapore cents per share, consistent with the previous financial year’s payout of S$1.20 per share. The first-quarter dividend is scheduled to be paid on 31 May 2019.
The final dividend of the financial year 2018 of 60 Singapore cents a share, which was approved by shareholders at the recent annual general meeting, is scheduled to be paid on 17 May 2019.
Highest Return on Equity
During the quarter, new non-performing asset formation remained low and total allowances halved. As a result, its return on equity rose to 14.0 percent, the highest in more than a decade.
«We are well placed to continue capturing growth opportunities across the region and delivering healthy shareholder returns,» said Gupta.
