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5 Things I Like About DBS Group Holdings Ltd’s Latest Earnings Update

DBS Group Holdings Ltd (SGX: D05), or DBS for short, is one of the three major banks based out of Singapore. The company recently announced its 2019 first-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 Group’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 6% year-on-year to a record high of S$3.6 billion due to solid growth in net interest income (up 9% year-on-year). Consequently, net profit rose 9% year-on-year to a record high S$1.7 billion.
  2. DBS Group’s Hong Kong business delivered a strong performance, with total income rising 9% year-on-year (on constant-currency terms) to a record S$0.71 billion (excluding property gain), while net profit grew 3% year-on-year (on constant-currency terms) to a high of S$0.37 billion.
  3. Thirdly, net interest margin rose to 1.88%, up from 1.83% in the same period last year. Also, customer loans and deposits grew 6% and 5%, respectively, as compared to last year.
  4. Annualised return on equity (ROE) improved to 14.0% from 13.1% a year ago.
  5. Last but not least, DBS Group maintained an extremely sound capital position as of 31 March 2019. Its Common Equity Tier 1 capital adequacy ratio (CAR), Tier 1 CAR and Total CAR as at 31 March 2019, were 14.1%, 15.2% and 17.0% respectively. These ratios were well above the respective regulatory requirement of 6.5%, 8% and 10%, respectively.

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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 recommendations for DBS Group Ltd.