"DBS hit a new milestone with full-year profit exceeding SGD 4 billion in 2014. This is testament to the strength and resilience of
the franchise. We believe that the multiple business engines we’ve built are sustainable and scalable."
– Piyush Gupta, CEO, DBS
Grow Income
Income (SGD m)
Target: Deliver consistent income growth
Outcome: 8% income growth to record SGD 9.62 billion
Manage Expenses
Cost/Income (%)
Target: Be cost efficient while investing for growth; cost-income ratio target of 45% or better
Outcome: Cost-income ratio in line with target of 45%. Continue to drive efficiency through strategic cost management efforts. Savings of SGD 500 million over three years reinvested in headcount and new capabilities including digital
Manage Portfolio Risk
Specific Allowances/Average Loans (bp)
Target: Grow exposures prudently, aligned to risk appetite. Expect specific allowances to average 25 basis points (bp) of loans through the economic cycle
Outcome: Specific allowances as a percentage of loans maintained at 18 bp
Improve Returns
Return on Equity (%)
Target: Return on equity of 12% or better in a normalised interest rate environment
Outcome: Double-digit return on equity in a low interest rate environment
| Financial Performance Highlights | |||
|---|---|---|---|
| Selected Income statement items (SGD m) | 2014 | 2013 | % chg |
| Total income | 9,618 | 8,927 | 8 |
| Expenses | 4,330 | 3,918 | 11 |
| Profit before allowances | 5,288 | 5,009 | 6 |
| Allowances for credit and other losses | 667 | 770 | (13) |
| Net profit | 3,848 | 3,501 | 10 |
| One-time items | 198 | 171 | 16 |
| Net profit including one-time items | 4,046 | 3,672 | 10 |
| Selected balance sheet items (SGD m) | |||
| Customer loans | 275,588 | 248,654 | 11 |
| Customer deposits | 317,173 | 292,365 | 8 |
| Shareholders’ funds | 37,708 | 34,233 | 10 |
| Shareholders’ funds | 37,708 | 34,233 | 10 |
| Key financial ratios (%) | |||
| Return on equity 1 | 10.9 | 10.8 | – |
| NPL ratio | 0.9 | 1.1 | – |
| Allowance coverage | 163 | 135 | – |
| Common Equity Tier 1 Capital Adequacy Ratio | 13.1 | 13.7 | – |
- (1)Excluding one-time items and calculated based on net profit attributable to shareholders net of dividends on preference shares and other equity instruments. Non-controlling interests, preference shares and other equity instruments are not included as equity in the computation of return on equity