• Growth momentum driven mainly by Singapore operations but slowdown in second half likely to persist into 2021
• Acquisition and merger of LVB into DBS India will have longer term impact
• New platforms of growth will take time to deliver, but retail wealth management has shown results

DBS Group announced net profit of SGD 4.72 billion ($3.5 billion) for full-year 2020, 26% below the previous year’s record performance. Profit before allowances rose 2% to SGD 8.43 billion ($6.3 billion). Total income was flat at SGD 14.6 billion ($11 billion) in spite of the disruption from COVID-19.

It set aside four times more total allowances of SGD 3.07 billion ($2.3 billion) than the previous year while general allowances stood at SGD 1.71 billion ($1.2 billion) in anticipation of potential risks from the pandemic.

Net profit in the fourth quarter fell 33% from a year ago to SGD 1.01 billion ($761.9 million) due to lower net interest margin, which hit a historical low of 1.49% and higher total allowances.

Growth in loans for the year was 4%, mainly from non-trade corporate loans, mortgages in Singapore and newly acquired Lakshmi Vilas Bank (LVB) in India.

Speaking at the results media briefing, group chief financial officer, Chng Sok Hui, remarked that loans grew SGD 16 billion ($12.1 billion) over the course of the year to SGD 371 billion ($279.9 billion). Non-trade corporate loans grew SGD 19 billion ($14.3 billion) led by drawdowns in Singapore and Hong Kong. Trade loans fell SGD 6 billion ($4.5 billion) as tighter pricing made them less attractive to roll-over and as transaction values fell from lower oil prices. Consumer loans were stable. Housing loans were little changed as declines in the second and third quarters due partly to the circuit-breaker were offset by a recovery in the fourth quarter. Nevertheless, nonperforming loan ration ended the year just marginally higher than 2019 at 1.6%

• Growth momentum driven mainly by Singapore operations but slowdown in second half likely to persist into 2021
• Acquisition and merger of LVB into DBS India will have longer term impact
• New platforms of growth will take time to deliver, but retail wealth management has shown results

DBS Group announced net profit of SGD 4.72 billion ($3.5 billion) for full-year 2020, 26% below the previous year’s record performance. Profit before allowances rose 2% to SGD 8.43 billion ($6.3 billion). Total income was flat at SGD 14.6 billion ($11 billion) in spite of the disruption from COVID-19.

It set aside four times more total allowances of SGD 3.07 billion ($2.3 billion) than the previous year while general allowances stood at SGD 1.71 billion ($1.2 billion) in anticipation of potential risks from the pandemic.

Net profit in the fourth quarter fell 33% from a year ago to SGD 1.01 billion ($761.9 million) due to lower net interest margin, which hit a historical low of 1.49% and higher total allowances.

Growth in loans for the year was 4%, mainly from non-trade corporate loans, mortgages in Singapore and newly acquired Lakshmi Vilas Bank (LVB) in India.

Speaking at the results media briefing, group chief financial officer, Chng Sok Hui, remarked that loans grew SGD 16 billion ($12.1 billion) over the course of the year to SGD 371 billion ($279.9 billion). Non-trade corporate loans grew SGD 19 billion ($14.3 billion) led by drawdowns in Singapore and Hong Kong. Trade loans fell SGD 6 billion ($4.5 billion) as tighter pricing made them less attractive to roll-over and as transaction values fell from lower oil prices. Consumer loans were stable. Housing loans were little changed as declines in the second and third quarters due partly to the circuit-breaker were offset by a recovery in the fourth quarter. Nevertheless, nonperforming loan ration ended the year just marginally higher than 2019 at 1.6%