DBS reports 10 pct growth in 2014 net profit

The full-year net profit of DBS Group Holdings, Singapore's biggest bank, rose 10 percent in 2014 to a record 4.05 billion Singapore dollars (3.05 billion U.S. dollars) in 2014, it said on Tuesday.

Excluding one-time items of 198 million Singapore dollars, the net profit of the company increased 10 percent to 3.85 billion Singapore dollars (2.85 billion U.S. dollars).

The company said its total income for the year grew by 8 percent to 9.62 billion Singapore dollars thanks to higher net interest margin, loan volumes and fee income.

The full-year net interest income rose by 14 percent to 6.32 billion Singapore dollars. Loans grew 9 percent in constant currency terms to 276 billion Singapore dollars. Net interest margin improved six basis points to 1.68 percent, with deposit costs stable, it said.

Its fee income grew by 8 percent to 2.03 billion Singapore dollars, partly thanks to a 23 percent increase in wealth management fees from higher unit trust and bank assurance sales and a 27 percent rise in investment banking fees from increased debt capital market activities. Card fees were also higher.

Allowance charges declined, with the non-performing loan rate improving to 0.9 percent and the allowance coverage of non- performing assets increasing to 163 percent.

DBS has had a growing presence in three key markets such as China, Southeast Asia and South Asia. The wealth management market is also among areas where the bank has been trying to grow its competitiveness.

For the fourth quarter, the net profit of DBS Group Holdings grew 4 percent year on year to 838 million Singapore dollars, which is below the average forecast.

Bad debt provisions rose 40 percent year on year to 211 million Singapore dollars in the fourth quarter, while trading income dropped 44 percent with the bank blaming less favorable trading conditions. (1 U.S. dollar = 1.35 Singapore dollars) Endi