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An Investor’s Overview of DBS Group’s Track Record in Growing Its Business

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

One of the things I like to do when analysing a company is to study its track record. The past is no guarantee of the future. But historical information is the most reliable thing we can use as our basis to forecast what lies ahead.

In light of that, let’s have a quick overview of DBS Group’s historical business growth. The table below is a snapshot of the company’s important financial metrics from FY2014 (financial year ended 31 December 2014) to FY2018 (financial year ended 31 December 2018).

Source: DBS Group’s 2019 Annual Report

Total income grew from S$9.6 billion to S$13.2 billion, up by 37.5% during the period.

Profit before allowances grew from S$5.3 billion in FY2014 to S$7.4 billion in FY2018, up by 39.6% during the period. This translates to a compound average growth rate (CAGR) of 8.7%. Similarly, net profit grew by 37.8%, or a CAGR of 8.3%, during the period.

Dividend per share has grown from S$0.58 in FY2014 to S$1.20 in FY 2018, up by 106.9% during the period, or a CAGR of 19.9%.

The Foolish bottom line

DBS Group has delivered a solid track record of growth over the last five years, growing revenue, profit, and dividends.

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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 recommended the stocks of DBS Group Holdings Ltd, United Overseas Bank Ltd, and Oversea-Chinese Banking Corp Limited.