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5 Things To Like About DBS Group Holdings Ltd Now

DBS Group Holdings Ltd (SGX: D05), or DBS in short, is one of the three major banks based out of Singapore. The company recently announced its 2018 third-quarter earnings update. Here are five positive things that I think investors should know about its results.

The results

Here’s a quick summary of some key financial metrics for the quarter:

Source: DBS’s Results Presentation

Overall, we can see that all metrics improved on a year-on-year basis. But there are more to these numbers.

1. First of all, total income for the quarter grew 10% year-on-year to a record high of S$3.4 billion due to double-digit percentage growth in net interest income and higher fee income.

2. Secondly, DBS Group’s Hong Kong business delivered a strong year to date results, with total income increasing 25% year-on-year (in constant-currency terms) to a record S$1.96 billion (excluding property gains). Net profit grew 31% (in constant-currency terms) as compared to last year.

3. Thirdly, net interest margin rose to 1.86%, up from 1.73% in the same period last year. Also, customer loans and deposits were up by 8% and 7%, respectively, compared to last year.

4. Next, DBS’s annualised return on shareholders’ equity improved from 7.1% in the third quarter of 2017 to a decade-high level of 12.2% in the reporting quarter.

5. Last but not least, DBS Group maintained an extremely sound capital position as of 30 September 2018. Its Common Equity Tier 1 capital adequacy ratio (CAR), Tier 1 CAR and Total CAR were 13.3%, 14.4% and 16.2% respectively. These ratios were well above the respective regulatory requirement of 6.5%, 8% and 10%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned. Motley Fool has a recommendation for DBS Group Ltd.