DBS CEO Piyush Gupta on fourth-quarter earnings, shareholder dividends

Singapore’s largest lender DBS Group reported a document full-year revenue for 2021, and its CEO Piyush Gupta informed CNBC final yr was “among the finest years” he is seen.

“That has been a stable yr, maybe among the finest years I’ve seen in a very long time. And that features a very strong progress within the steadiness sheet,” Gupta informed CNBC’s “Capital Connection” after the earnings numbers have been out.

The financial institution on Monday reported that full-year internet revenue for 2021 rose 44% to a document of 6.8 billion Singapore {dollars} ($5.04 billion).

Fourth-quarter internet revenue rose 37% from a yr in the past to SG$1.39 billion ($1.03 billion). That, nonetheless, missed a median estimate of SG$1.47 billion from a Reuters ballot.

Gupta additionally highlighted the financial institution’s loans progress, which jumped 9% for the yr — the quickest since 2014, in line with the financial institution.

“We had excellent deposit progress,” he stated, including there’s been a SG$140 billion surge within the financial institution’s present account financial savings account base within the final two years.

That took its present account and financial savings account (CASA) ratio to complete deposits to a document 76%. The metric is a measure of a financial institution’s profitability.

“Now, as you possibly can think about, that portends rather well for a rising rate of interest setting,” he stated.

In different highlights, DBS’ internet curiosity margin for the yr, a measure of lending profitability, fell 17 foundation factors to 1.45%.

The annualized dividend, to be authorised on the annual common assembly in March, is about to rise 9% to SG$1.44 per share, in line with DBS.

DBS shares have been up 0.27% following the earnings announcement.

As charge hikes are anticipated this yr, that will spell excellent news when it comes to higher dividends for shareholders, Piyush added.

“In fact, as charges go up, you understand, we’re already extraordinarily effectively capitalized. And for those who wind up creating much more capital by means of higher backside line and earnings progress, then there’s a actual chance that we can mirror that in higher payouts to our shareholders,” he informed CNBC.

Singapore’s two different main banks OCBC and UOB are additionally set to report their fourth-quarter earnings later in February.