Piyush Gupta, Chief Executive Officer of DBS Group Holdings Ltd., during a news conference in singapore, on Monday, Feb. 10, 2025. DBS shares jumped after the lender reported earnings that met expectations and unveiled a investor payout plan.
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After a sterling 2024 when singapore’s biggest bank by assets Booked Net Profits, DBS CEO Piyush Gupta Said That The Bank Needs to Have “Agility” Agree Dictable tariff and Monetary Policies from The Us
Speaking in an exclusive interview to CNBC’s JP ONG, Gupta Said ” Olicies, etc., can change. “
Gupta’s comments come as southeast asia’s largest bank by assets posted A solid showing in its full-year results, With net profit reaching a record high.
For the Financial Year Ended Dec. 31, The Bank Saw an 11% Rise in full-Year Net Profit to 11.4 Billion Singapore Dollars ($ 8.4 Billion), while Revenue Booked A 10% Increase to SG $ 22.3 Billion.
Gupta described the performance as “great” and added that he was “Quite pleased with the breadth of the performance.”
DBS attributed the increase to several factors, Including A Record High Fee Income and Treasury Customer Sales Reaching a new highThe bank’s net interest income, which is the interest a bank ear on loans minus that which it pays for deposits, rose 5% year on year to sg $ 15.04 billion.
DBS Shares surged to a record intraday of sg $ 46.5 following the results.
Furthermore, Due to Reduced Expectations of Interest Rate Cuts from The Us Federal Reserve, DBS Expects net Interest Income in 2025 to be Higher Than 2024 Levels.
“Interest income is always Dificult to predict because the impact of rates is manifold,” gupta said, adding that dbs had originally projectioned for projects by the four cuts by the fed in 2025, Has Reduced That Forecast To two cuts in its earnings report released monday.
Following the steellar results, the bank proposed a final dividend of 60 singapore cents per share for the fourth Quarter, an increase of six cents from the previous payout.
This would mean that DBS ‘Total Dividend for the 2024 Financial Year will stand at sg $ 2.22 per share, a year-on-on-yar increase of 27%.
On top of the regular dividend, DBS announced a new “Capital Return” Dividend of 15 Singapore cents per share for Each Quarter in 2025, as part of measures to manage to manage excess capital.
“In the subsequent two years, it expects to pay out a similar Amount of Capital Eather Through this or other mechanisms, barring unforesene circumstans,” The bank added.
Gupta said the bank’s capital adequacy is currently at 17%, more than 13% that DBS said that is it is its operating range.
Capital adequaacy is the ratio of capital a bank has, reported as a percentage of a bank’s risk-and-weighted credit exposures.
“Therefore, we do have a lot of excess capital, and we have promised shareholders that over time we will be Judicious and return the Excess Stock of Capital that we have. Commitment to return that Excess Capital, “He added.
This results announsement will be gupta’s last as dbs’ Ceo. He will be Handing over the reins of the bank to deputy ceo tan su Shan On March 28 at the bank’s annual general meeting.
When asked about his plans after 15 years at southeast asia’s largest bank, gupta told cnbc he was going to pursue his personal passes, Including in Conservation and Education, BUT BAT BAT BET BET BET e a Deep Breath, Spend Three or Four months, give myself some time to chill a bit, and then we take it from there. “
(Tagstotranslate) Banks (T) DBS Group Holdings Ltd (T) Dividends (T) Earnings (T) Singapore (T) Business News
