Despite a volatile year for markets, DBS managed to capitalize on higher interest rates to register improved profits from record revenues.
DBS posted a net profit of S$8.2 billion ($6.2 billion) in 2022, according to its annual results, up 20 percent year-on-year.
This was driven by a 16 percent increase in total income to S$16.5 billion – the first time ever that the Singapore lender crossed S$16 billion. A boost in net interest income from higher rates more than offset a decline in non-interest income due to market volatility. The bank’s cost-income ratio also improved from 46 percent to 43 percent.
In addition, return on equity climbed from 12.5 percent to a new high of 15 percent.
Dividend Increase
In line with the increased earnings, DBS’s board proposed a final dividend of 42 cents per share, up six cents, alongside a special dividend of 50 cents per share.
«The substantial increase in our ordinary dividend and the special dividend to a total of 92 cents per share reflect our robust earnings profile and the strength of our capital position. This brings the total payout for the financial full year to S$2.00 per share,» said DBS chief executive Piyush Gupta.
«We expect confidence to return to markets in the coming year as interest rate increases ease and China reopens.»
