DBS Group Holdings (DBS SP) BUY1Q22 Flash Note
Analyst: Jonathan Koh, CFA
- DBS reported net profit of S$1,801m for 1Q22, down 10% yoy but up 30% qoq. The results were above our net profit forecast of S$1,700m.
- Loan growth was 8% yoy and 2% qoq driven by non-trade corporate loans in Singapore and Hong Kong and trade loans amidst higher commodity prices. NIM expanded 3bp qoq to 1.46%.
- Fees & commissions dropped 7% yoy. Contribution from wealth management declined 21% yoy due to lower investment products sales offset by higher bancassurance income.
- Other non-interest income dropped 16% yoy in 1Q22 due to lower net trading income, less gains from investment securities and a higher base last year.
- Asset quality was stable and NPL ratio was unchanged at 1.3%. Specific provision was S$167m or 15bp. DBS wrote-back general provisions of S$112m.
- The board has proposed interim dividend of 36 S cents for 1Q22.