DBS reported ROE of 17.3% for FY2024.

Full-Year 2024 Performance

DBS Group achieved record financial results for FY2024, reporting a full-year net profit of SGD 11.4 billion, an 11% increase year-on-year from SGD 10.3 billion in FY2023. Total income grew 10% to SGD 22.3 billion, according to the bank’s annual report and press materials published in February 2025. The bank's reported return on equity (ROE) for the full year stood at 18.0%, as stated in the DBS annual report and CEO Piyush Gupta’s official comments, though certain third-party aggregators cite figures near 17.0–17.3% depending on methodology. The difference reflects whether one-time items—specifically SGD 19 million in Citi Taiwan integration costs and a SGD 100 million CSR provision—are included or excluded from the net profit calculation. On a reported basis (including these items), net profit was SGD 11.289 billion, yielding a slightly lower ROE. DBS management noted that the 18.0% ROE is "one of the highest among developed market banks."

ROE Drivers: Net Interest Margin and Fee Income Growth

The bank’s commercial book net interest margin expanded 4 basis points to 2.8% in FY2024, supporting net interest income growth of 5% year-on-year to SGD 15.0 billion. Loans grew 3% to SGD 12 billion while deposits rose 4% to SGD 20 billion. However, fee income was the standout performer: commercial book net fee income grew 23% to SGD 4.17 billion, crossing the SGD 4 billion threshold for the first time. Wealth management fees surged 45% to a record SGD 2.18 billion, driven by improving investor sentiment. Card fees rose 19% to SGD 1.24 billion, supported by the consolidation of Citi Taiwan and higher consumer spending. Loan-related fees increased 16% to SGD 644 million. Treasury customer sales also reached a new high, and markets trading income rebounded. Investment banking fees declined 19%, which the bank attributed to slower equity capital market activities.

Quarterly Trends: Q4 vs Q3 FY2024 ROE

Quarterly ROE was not uniform across FY2024. Based on data from DBS’s Q4 FY2024 results review, ROE stood at 18.7% in Q3 FY2024 but declined to 15.8% in Q4 FY2024, a drop of 2.9 percentage points. This sequential decline reflects the seasonality of income recognition and expense timing rather than any structural deterioration. For context, Q4 net profit grew 10% year-on-year to SGD 2.62 billion, and total income rose 10% to SGD 5.51 billion. The cost-income ratio remained stable at 40% for the full year, unchanged from FY2023. Non-performing loans ratio edged up slightly from 1.0% in Q3 to 1.1% in Q4, attributed to a 7.6% increase in non-performing assets. On a full-year basis, the NPL ratio was unchanged at 1.1% compared to FY2023.

ROE (%) (%)Source: Orionmano Industries

Dividend Payout and Capital Return Strategy

The board proposed a final dividend of SGD 0.60 per share for Q4 FY2024, bringing the full-year dividend to SGD 2.22 per share—a 15.6% increase from SGD 1.92 in FY2023. The dividend cover ratio stood at 1.78 times reported earnings. In a notable strategic shift, DBS announced plans to introduce a quarterly capital return dividend for FY2025, starting with SGD 0.15 per share per quarter. Management indicated that over the next two years, the bank expects to pay out a similar amount of capital, barring unforeseen circumstances. This move signals confidence in the bank’s capital generation capacity. DBS’s Common Equity Tier 1 (CET-1) ratio stood at 17.0% on a reported basis, well above regulatory requirements.

Cost Dynamics and Staff Bonus

Total expenses for FY2024 rose 10% year-on-year to SGD 8.9 billion, with the Citi Taiwan integration accounting for approximately 3 percentage points of that increase. The cost-income ratio remained steady at 40%. The bank set aside SGD 100 million from FY2024 profits for community support initiatives, and SGD 32 million for a one-time bonus of SGD 1,000 to all staff except senior managers, as recognition for contributing to the record performance.

Balance Sheet and Capital Strength

Total assets grew to SGD 827.2 billion as of December 2024, up from SGD 739.3 billion in December 2023. Customer loans increased to SGD 430.6 billion, while customer deposits reached SGD 561.7 billion. Total shareholders' funds stood at SGD 68.8 billion. Net asset value per ordinary share was SGD 23.38, compared to SGD 21.03 a year earlier. The bank’s fully phased-in CET-1 ratio was 15.1%, and the total capital adequacy ratio stood at 18.6%. The loan-to-deposit ratio improved to 76.7% from 77.8% in FY2023.

Outlook

DBS CEO Piyush Gupta stated that while macroeconomic and geopolitical uncertainties persist, the franchise and digital transformations executed over the past decade position the bank for continued performance. Interest rate trajectory, wealth management momentum, and credit quality will be key variables to monitor. ROE is likely to remain elevated by historical standards, though a repeat of the 18.0% full-year level will depend on how net interest margins evolve and whether fee income growth can sustain its current pace.