SINGAPORE: On Feb 10, DBS Group announced a S$1,000 (US$740) bonus for all its staff, except senior managers, and a new capital return dividend plan after a 10% rise in its fourth-quarter net profit, meeting market expectations. The bank had set aside S$32 million for the bonus to recognise their contributions.
Singapore’s biggest bank added it now expects this year’s group net interest income to be slightly higher than last year, improving on its earlier forecast that it would remain at 2024 levels, as reported by Reuters.
DBS CEO Piyush Gupta said that while macroeconomic and geopolitical uncertainties remain, the bank’s franchise and digital transformations have positioned it well for continued strong returns.
DBS’s net interest margin, a key measure of profitability, increased to 2.15% from 2.13% a year earlier.
Net profit from October to December rose to S$2.62 billion, up from S$2.39 billion the previous year, due to commercial banking and market trading growth. According to LSEG data, this closely matched analysts’ estimates of S$2.63 billion.
The bank announced a final dividend of 60 Singapore cents per share, up from 54 cents a year ago. The bank also plans to introduce a capital return dividend of 15 cents per share per quarter in 2025. Similar payouts are expected over the next two years, either through this plan or other methods.
In December, UOB and OCBC also announced additional payments to help employees cope with the rising cost of living.
DBS is the first Singapore bank to report earnings this season. Analysts expected strong fourth-quarter profits for local banks but warned that global economic conditions, including US trade policies, could slow growth in 2025.
Rival bank UOB is set to release its financial results on Feb 19. /TISG
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