2014 record earnings, broad-based income growth

Transcription

1 record earnings, broad-based growth DBS Group Holdings 4Q financial results February 10, 2015 Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. DBS Bank accepts no liability whatsoever with respect to the use of this document or its contents.

2 Full-year earnings rise 10% to a record (S$m) FY14 YoY % Total record 9,618 8 Expenses 4, Profit before allowances record 5,288 6 Allowances 667 (13) Net profit record 3, Net profit (incl. one-time items) 4, Higher NIM, loan volumes and fee Lower allowances with allowance coverage at 163% Impact on earnings: positive negative 3,501 3,848 FY13 Net profit Net interest Fee Other Expenses SP GP Others FY14 Net profit 2

3 4Q earnings up 4% on year (S$m) 4Q14 YoY % Total 2,340 9 Expenses 1,126 9 Profit before allowances 1,214 8 Allowances Net profit Broad-based growth from higher NIM, loans and fee Impact on earnings: positive negative Q13 Net profit Net interest Fee Other Expenses SP GP Others 4Q14 Net profit 3

4 4Q earnings decline 17% on quarter (S$m) 4Q14 QoQ % Total 2,340 (7) Expenses 1,126 2 Profit before allowances 1,214 (14) Allowances Net profit 838 (17) Higher net interest offset by less favourable trading conditions and seasonally quieter markets Business momentum remains healthy Impact on earnings: positive negative 1, Q14 Net profit Net interest Fee Other Expenses SP GP Others 4Q14 Net profit 4

5 Hong Kong s full-year core earnings rise 9% (S$m) FY14 YoY % Total record 1,900 2 Expenses Profit before allowances 1,111 (3) Allowances 52 (63) Net profit record YoY% excluding property disposal gains (63) Impact on earnings: positive negative FY13 Net profit Net interest Fee Other Expenses SP GP Others FY14 Net profit 5

6 Full-year net interest up 14% to $6.32bn; 4Q net interest margin highest in 10 quarters (S$m) 6,321 5, Net interest margin (%) ,336 1,324 1,332 1,293 1,327 1,382 1,406 1,454 1,488 1,557 1,602 1, Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

7 Loan growth from corporate and secured consumer loans Different scale (S$bn) % +16% % CBG 5 +7% % Other IBG 7 +5% Trade 2 +3% 1 +1% 4Q14 change FY14 change As at Dec Loan growth in constant currency terms of 3% in 4Q and 9% for the fullyear, mainly from corporate non-trade and consumer loans Consumer loan growth from secured lending and housing loans Trade loans were little changed Gross loans By borrowers country of incorporation (%) Singapore Hong Kong 9 Rest of World 18 Rest of Greater China South and South-east Asia 7

8 Ample liquidity to support business growth (S$bn) Other funding Other deposits USD deposits Loans 34 Different scale Q14 change FY14 change As at Dec Loans are gross loans. Other funding comprises senior medium term notes, commercial papers, negotiable certificates of deposit and other debt securities 8

9 4Q fee up 5% on year, full-year fee rises 8% (S$m) 2,200 Others 1,700 Investment banking Cards 1,200 Loan-related Wealth Management 700 Trade and transaction 200 services -300 Net fee 2,027 1, Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

10 Full-year treasury customer rises 10% (S$m) Customer / total Treasury (%) 36 1, , ,987 2,071 2,239 Customer ,037 1,137 Other Treasury 1,233 1,152 1,119 1,034 1,

11 Income growth has been led by IBG and CBG (S$m) FY FY 2013 YoY % Mix % Institutional Banking 4,967 4, Consumer Banking / Wealth Management 2,882 2, Treasury 1,102 1, Others (2) 7 Total 9,618 8,

12 Cost savings of $500m over three years reinvested in headcount and new capabilities including digital (%) Total cost / Staff cost / (S$m) Expenses 3,614 3,918 4, SCM savings SCM refers to strategic cost management 12

13 NPL ratio stable at 0.9%, allowance coverage at historical high NPL ratio (%) NPA (S$m) Not overdue <90 days overdue >90 days overdue 1.2 2,726 46% 11% 43% 1.1 2,996 43% 9% 48% 1.0 2,730 31% 12% 57% ,430 2,525 2,513 21% 16% 24% 10% 15% 11% 69% 69% 65% Q14 2Q14 3Q14 4Q14 SP/loans (bp) 10 Cumulative general and specific allowances as % of: NPA Unsecured NPA

14 Capital ratios remain strong (%) Total Tier Tier Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Common Equity Tier 1 (%) Transitional Pro-forma final RWA (S$bn)

15 Final dividend of 30 cents per share (S per share) Final Interim

16 In summary record earnings, broad-based growth Delivered 22 consecutive quarters of year-on-year earnings growth Since 2009, full-year has grown by some 50% to $9.6bn while net profit has doubled to $4bn Performance underpinned by improved mix, financial discipline and strong risk management Developed multiple growth engines that are scalable and can drive business expansion with operating leverage Structurally higher returns of our franchise will become more evident as interest rates normalise Well-positioned to continue supporting customers and delivering shareholder returns 16

17 Supplementary slides DBS Group Holdings 4Q financial results February 10, 2015 Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. DBS Bank accepts no liability whatsoever with respect to the use of this document or its contents.

18 Full-year earnings up 10% (S$m) FY FY 2013 YoY % Net interest 6,321 5, Fee 2,027 1,885 8 Trading 901 1,095 (18) Other (2) Non-interest 3,297 3,358 (2) Total 9,618 8,927 8 Staff expenses 2,294 2, Other expenses 2,036 1, Expenses 4,330 3, Profit before allowances 5,288 5,009 6 General allowances (53) Specific allowances Allowances (13) Net profit 3,848 3, One-time items Net profit incl. one-time items 4,046 3,

19 4Q profit up 4% on year (S$m) 4Q 4Q 2013 YoY % 3Q QoQ % Net interest 1,674 1, ,602 4 Fee (17) Trading (44) 271 (66) Other Non-interest (4) 912 (27) Total 2,340 2, ,514 (7) Staff expenses Other expenses (4) Expenses 1,126 1, ,109 2 Profit before allowances 1,214 1, ,405 (14) General allowances (10) 22 >100 Specific allowances Allowances Net profit ,008 (17) One-time items (100) - - Net profit incl. one-time items (14) 1,008 (17) 19

20 Full-year ROE at 10.9% (%) 4Q 4Q Q FY FY 2013 Net interest margin Fee /total Non-interest /total Cost/ ROE Loan/deposit SP/loans (bp) NPL ratio

21 Overall LDR stable, non-sgd LDR below 100% (S$bn) Loans Deposits Other funding Loan/deposit (%) Group SGD Non-SGD Mar Jun Sep Dec Mar Jun Sep Dec SGD and Non-SGD loan/deposit ratios are based on gross loans. Other funding comprises senior medium term notes, commercial papers, negotiable certificates of deposit and other debt securities 21

22 4Q non-interest declines 4% on year from lower trading (S$m) 3,358 3,297 Other fee Brokerage and investment banking fee Trading + other 2,779 1, ,200 1, ,473 1, , Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

23 Full-year cost- ratio at 45% (S$m) Cost / (%) Staff expenses Other expenses ,330 3,918 3, ,888 2,065 2,294 1,726 1,853 2, , ,030 1,041 1,054 1, Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

24 Hong Kong s full-year core earnings rise 9% Constant-currency terms (S$m) FY FY 2013 YoY % YoY excl. property gains % Net interest 1,098 1, Non-interest (5) (7) (0) (2) Total 1,900 1, Expenses Profit before allowances 1,111 1,146 (3) (4) 1 (1) General allowances (3) 98 NM NM NM NM Specific allowances Allowances (63) (65) (63) (65) Net profit Net interest margin (%) Loan growth (%) 2 Deposit growth (%) 6 24

25 Hong Kong s 4Q rises 11% on year Constant-currency terms (S$m) 4Q 4Q 2013 YoY % YoY % 3Q QoQ % QoQ % Net interest Non-interest (17) (20) Total (1) (4) Expenses Profit before allowances (4) 291 (13) (17) General allowances 17 (17) NM NM (3) NM NM Specific allowances (13) (19) 19 (26) (30) Allowances 31 (1) NM NM Net profit (15) (17) 226 (19) (21) Net interest margin (%) Loan growth (%) 2 4 Deposit growth (%)

26 Full-year regional up 7% on year (S$m) FY FY 2013 YoY % Net interest 1,205 1, Non-interest (3) Total 1,768 1,649 7 Expenses 1, Profit before allowances Allowances Net profit Figures for operations outside of Singapore and Hong Kong 26

27 NPAs remain low (S$m) 4Q 3Q 4Q 2013 NPAs at start of period 2,525 2,430 3,054 New NPAs Upgrades, recoveries and translation (56) (150) (67) Write-offs (229) (104) (266) NPAs at end of period 2,513 2,525 2,996 27

28 Specific allowances stable (S$m) Add charges for 4Q 3Q 4Q 2013 New NPLs Existing NPLs Subtract charges for Upgrading Settlements Recoveries Total SP charges for loans SP/loans (bp)

29 AFS duration remains short (S$m) Dec 14 Sep 14 Government securities 22,436 22,301 Less than 3 years 15,699 15,600 3 to 5 years 1,939 1,485 5 to 10 years 4,249 4,697 More than 10 years Supranational, bank and corporate bonds 11,373 11,114 Equities 1,459 1,430 Total 35,268 34,845 AFS reserves Time-banding is based on reporting date to maturity date 29

30 SME Income (S$m) Record High 7% CAGR 1,229 1,370 1,408 YoY 3%* 1,024 1,041 1,092 Income from large corporate banking also at record * Up 8% on comparable basis that excludes the impact of customer up-tiering 30

31 Wealth Income (S$m) Record High 1,099 YoY 18% CAGR % Total Earning Assets (S$b) % Comprising Treasures, Treasures Private Client and Private Bank Total earning assets at end of period FY financials include SGPB Asia which was integrated 6 Oct 31

32 Global transaction services Income (S$m) Record High YoY 18% CAGR 1,622 9% 1,485 1,410 1,080 Cash/SFS (a) Trade Loans (S$b) (b) % Deposits (S$b) % Assets and deposits at end of period (a) Security and fiduciary services (b) Trade assets; includes bank exposures and loans of financial institutions 32

33 Treasury cross-sell customer flows Income (S$m) Record High % CAGR 868 1,037 1,137 YoY 10% % of total Treasury % 36% 42% 44% 50% 51% 33

34 record earnings, broad-based growth DBS Group Holdings 4Q financial results February 10, 2015 Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. DBS Bank accepts no liability whatsoever with respect to the use of this document or its contents.