The following is a summary of the DBS Group Holdings Ltd (DBSDF) Q1 2024 Earnings Call Transcript:
Financial Performance:
DBS Group's Q1 2024 net profit rose by 15% year-on-year to $2.96 billion and return on equity increased to 19.4%.
The total income grew by 13% to reach $5.56 billion.
There was an observed growth in net interest income by 8%, attributable to higher net interest margin and 1% rise in loans.
The company experienced a significant increase in net fee income by 23%, crossing the $1 billion mark.
An increase in expenses by 10% was observed, pegging the cost-to-income ratio at around 37%.
The CET1 ratio was reported at 14.7% with a dividend per share at $0.54.
Business Progress:
DBS Group anticipates a modest increase in net interest income for the year, propelled by expected interest rate hikes and loan growth.
Noninterest income is predicted to grow in the mid- to high teens percentage range due to a strong Q1 performance and momentum in wealth and treasury sales.
Despite geopolitical tensions, the bank expects continued robust business momentum and positive macroeconomic conditions.
The company experienced significant growth in wealth management and has exhibited robust growth in areas such as card fees and loan syndication.
Plans are underway to increase operational risk Weighted Average (RWA) due to income growth, and market risk RWA due to acquisition of more market risk assets.
Expansion efforts are being pursued, specifically in India, with a focus on the mass affluent space.
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