Singapore’s largest bank, DBS Group, has reported a record-breaking financial performance for 2024, with an 11% increase in net profit to $11.4 billion. In recognition of this achievement, the bank is rewarding eligible staff with a one-time special bonus of $1,000. Additionally, DBS has introduced a new quarterly capital return dividend for 2025, signaling its strong financial position and commitment to returning value to shareholders.
DBS Records Strong Financial Performance in 2024
DBS Group’s net profit for the fourth quarter of 2024 rose 10% year-on-year to $2.62 billion, meeting analysts’ expectations. The return on equity (ROE) reached 18%, reflecting the bank’s solid financial management and growth strategy.
Key financial highlights:
- Full-year net profit: $11.4 billion (+11% YoY)
- Q4 net profit: $2.62 billion (+10% YoY)
- Final dividend: 60 cents per share, up from 54 cents in 2023
- Ordinary dividend for 2024: $2.22 per share (+27% YoY)
- DBS share price: Reached a record high of $46.38
$1,000 Special Bonus for DBS Staff
To recognize employees’ contributions, DBS is awarding a one-time special bonus of $1,000 to all staff below senior management. This initiative follows a similar $1,000 payout in February 2024 aimed at assisting junior employees with cost-of-living expenses. The latest bonus will cost the bank an estimated $32 million.
Introduction of a New Quarterly Capital Return Dividend
Starting in 2025, DBS will introduce a capital return dividend of 15 cents per share per quarter as part of its strategy to manage excess capital. Over the next three years, the bank expects to distribute similar amounts either through this mechanism or other capital return strategies.
DBS CEO Piyush Gupta stated: “We achieved record financial performance in 2024 with one of the highest ROEs among developed market banks. Our continued transformation and strong balance sheet position us well for future growth.”
Future Outlook: What to Expect in 2025
While geopolitical and macroeconomic uncertainties persist, DBS remains optimistic about its 2025 performance. Key forecasts include:
- Slight growth in net interest income, driven by market expectations of two U.S. rate cuts in the latter half of 2025.
- High-single-digit growth in commercial book non-interest income, particularly in wealth management fees and treasury customer sales.
- Pre-tax profit is expected to remain steady, though net profit may decline slightly due to the introduction of a 15% global minimum tax for large Singaporean multinational companies.
DBS Deputy CEO Tan Su Shan, who will take over as CEO in March 2025, emphasized the bank’s commitment to navigating market volatility while maintaining strong returns.
Conclusion
DBS’ record-breaking earnings, special staff bonus, and new dividend policy highlight its robust financial health and commitment to employees and shareholders. As the bank transitions leadership and adapts to economic shifts, its strategic investments in digital transformation and capital management position it well for continued success in 2025 and beyond.
Stay updated on DBS and other financial news! Subscribe to our newsletter for the latest insights.
