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DBS Group Holdings Ltd Broke 5 Records in 2018

DBS Group Holdings Ltd (SGX: D05), or DBS, is one of the three major banks based out of Singapore, along with United Overseas Bank Ltd and Oversea-Chinese Banking Corp Limited.

The company recently announced its 2018 full-year result, and overall, there was plenty for investors to like about its performance. In fact, it broke at least five records of its own in 2018.

But first, a quick overview of the numbers.

Source: DBS’s Result Presentation

All metrics improved on a year-on-year basis. So, what are the five records DBS Group has broken in 2018?

1. Total income grew 11% year on year to a record high of S$13.2 billion, mainly due to double-digit percentage growth in net interest income.

2. Net profit reached a record high of S$5.6 billion after growing 28% year on year, driven by higher income and lower allowances.

3. DBS Group’s Hong Kong business delivered a record high performance for 2018, with total income up 26% year on year (in constant-currency terms) to S$2.7 billion, while net profit jumped 40% (constant-currency term) as compared to last year, to S$1.4 billion.

4. Annualized return on equity (ROE) improved to 12.1% from 9.7% a year ago, a record high in the last decade.

5. DBS Group proposed a final dividend of S$0.60 per share for the quarter. Including the interim dividend, total dividend per share (DPS) in 2018 would be S$1.20, a record high for the bank!

Sharp-eyed investors might point out that the DPS was actually even higher in 2017, at S$1.43. However, investors should be reminded that the bank paid out a special dividend of S$0.50. Excluding that special dividend, DPS would have been S$0.93 for 2017.

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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. The Motley Fool Singapore has recommendations for DBS Group Ltd, Oversea-Chinese Banking Corp Limited, and United Overseas Bank Ltd.