DBS CEO Piyush Gupta on fourth-quarter revenues, investor dividends

DBS CEO Piyush Gupta on fourth-quarter earnings, shareholder dividends

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Singapore’s biggest lending institution DBS Group reported a record full-year revenue for 2021, and its CEO Piyush Gupta informed CNBC in 2015 was “one of the best years” he’s seen.

“That has been a solid year, perhaps one of the best years I’ve seen in a long time. And that includes a very robust growth in the balance sheet,” Gupta informed CNBC’s “Capital Connection” after the revenues numbers were out.

The rely on Monday reported that full-year net revenue for 2021 increased 44% to a record of 6.8 billion Singapore dollars ($ 5.04 billion).

Fourth- quarter net revenue increased 37% from a year ago to SG$ 1.39 billion ($ 1.03 billion). That, nevertheless, missed out on a typical quote of SG$ 1.47 billion from a Reuters survey.

Gupta likewise highlighted the bank’s loans development, which leapt 9% for the year– the fastest because 2014, according to the bank.

“We had outstanding deposit growth,” he stated, including there’s been a SG$140 billion rise in the bank’s bank account cost savings account base in the last 2 years.

That took its bank account and cost savings account (CASA) ratio to overall deposits to a record 76%. The metric is a step of a bank’s success.

“Now, as you can imagine, that portends really well for a rising interest rate environment,” he stated.

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In other highlights, DBS’ net interest margin for the year, a step of financing success, fell 17 basis indicate 1.45%.

The annualized dividend, to be authorized at the yearly basic conference in March, is set to increase 9% to SG$ 1.44 per share, according to DBS.

DBS shares were up 0.27% following the revenues statement.

As rate walkings are anticipated this year, that might spell great news in regards to much better dividends for investors, Piyush included.

“Of course, as rates go up, you know, we are already extremely well capitalized. And if you wind up creating even more capital through better bottom line and income growth, then there is a real likelihood that we will be able to reflect that in better payouts to our shareholders,” he informed CNBC.

Singapore’s 2 other significant banks OCBC and UOB are likewise set to report their fourth-quarter revenues later on in February.

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