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Piyush Gupta, DBS’s long-serving chief executive, signed off his 16-year tenure at south-east Asia’s biggest bank with record profits announced on Monday.
DBS reported an 11 per increase in 2024 profits to S$11.4bn ($8.4bn) — in line with analysts’ estimates — buoyed by stronger performance in its commercial bank and wealth management businesses. It predicted net interest income in 2025 would be slightly above 2024 levels.
The Singaporean bank, the region’s largest by assets, increased its dividend payout to S$6.3bn, up 27 per cent on 2023, having already announced a S$3bn share buyback programme.
Gupta, with one of the longest tenures of any chief executive at a major bank, is due to retire at DBS’s annual meeting in March, having joined from Citigroup in 2009.
“While macroeconomic and geopolitical uncertainties persist, the franchise and digital transformations carried out over the past decade position us well to continue delivering healthy returns,” Gupta said.
He is due to be succeeded next month by his deputy, Tan Su Shan.
“As I reflect on my journey at DBS, I feel good about where the bank is and am confident it will reach further heights under Su Shan’s leadership,” he added.
The bank benefited from a 5 per cent rise in net interest income in its commercial business to S$15bn last year, thanks to a higher net interest margin and its bigger balance sheet. Loans and deposits rose by 3 per cent and 4 per cent respectively. Fees in the commercial bank increased by 23 per cent to S$4.2bn.
DBS also enjoyed a rise in consumer banking and wealth management, with the division increasing income by 13 per cent to S$10.2bn, as a result of higher net interest income, wealth management fees and card fees.
One downside for the bank was a 4 per cent increase in non-performing loans in the final quarter to S$5bn, yet analysts at Citigroup said “overall asset quality was benign”.
In November, DBS unveiled a S$3bn share buyback programme as the bank looks to return excess capital to shareholders. Over the past five years, it has doubled its ordinary dividend.
Shares in DBS — Singapore’s most valuable company — have risen more than 50 per cent in the past year. Its shares rose more than 3 per cent at the market open on Monday.
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