SINGAPORE: Mr Piyush Gupta, the DBS chief executive officer, had his variable pay cut by 30 per cent in 2023, as a result of the digital disruptions experienced by the bank's customers.
This amounted to S$4.14 million (US$3.08 million), announced DBS on Wednesday (Feb 7) as part of its quarterly earnings statement. Collectively, the CEO and other members of the group management committee took a 21 per cent cut in their variable pay.
Singapore's largest lender suffered a series of disruptions to its digital banking services last year, culminating in the Monetary Authority of Singapore (MAS) barring DBS from any acquisitions of new business ventures for six months.
DBS was also made to pause non-essential IT changes for six months and was not allowed to reduce the size of its branch and ATM networks in Singapore.
The bank, maintained guidance for net interest income for 2024 at around last year's levels after posting a 2 per cent rise in fourth quarter net profit, beating expectations.
"While interest rates are expected to soften and geopolitical tensions persist, our franchise strengths will put us in good stead to sustain our performance in the coming year," Mr Gupta said in a statement.
Besides maintaining net interest income at around 2023 levels, he expected return on equity (ROE) to be 15 per cent to 17 per cent for this year and fee income growth at double-digit, according to slides accompanying his results.
Full-year net interest margin (NIM), a key profitability gauge, is expected to be slightly below fourth quarter NIM of 2.13 per cent.
Singapore's banks, the largest in Southeast Asia, are set to post higher profits for the fourth quarter because of higher interest rates, though growth momentum is poised to slow as central banks pivot toward rate cuts and volatile markets weigh on the wealth business.
DBS, the first Singapore lender to report this earnings season, said October-December net profit grew to S$2.39 billion (US$1.78 billion) from S$2.34 billion a year earlier on the back of a 9 per cent increase in total income.
This beat the mean estimate of S$2.37 billion from four analysts, according to LSEG data.
DBS, which is also Southeast Asia's biggest bank, proposed a final dividend of 54 cents per share and 1-for-10 bonus issue.
The NIM of 2.13 per cent during the quarter was up from 2.05 per cent a year earlier.
Full-year annual profit jumped 26 per cent to S$10.3 billioon from S$8.19 billion in 2022. Return on equity climbed to a record high of 18 per cent from 15 per cent a year ago.
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This amounted to S$4.14 million (US$3.08 million), announced DBS on Wednesday (Feb 7) as part of its quarterly earnings statement. Collectively, the CEO and other members of the group management committee took a 21 per cent cut in their variable pay.
Singapore's largest lender suffered a series of disruptions to its digital banking services last year, culminating in the Monetary Authority of Singapore (MAS) barring DBS from any acquisitions of new business ventures for six months.
DBS was also made to pause non-essential IT changes for six months and was not allowed to reduce the size of its branch and ATM networks in Singapore.
Q4 EARNINGS
The bank, maintained guidance for net interest income for 2024 at around last year's levels after posting a 2 per cent rise in fourth quarter net profit, beating expectations.
"While interest rates are expected to soften and geopolitical tensions persist, our franchise strengths will put us in good stead to sustain our performance in the coming year," Mr Gupta said in a statement.
Besides maintaining net interest income at around 2023 levels, he expected return on equity (ROE) to be 15 per cent to 17 per cent for this year and fee income growth at double-digit, according to slides accompanying his results.
Full-year net interest margin (NIM), a key profitability gauge, is expected to be slightly below fourth quarter NIM of 2.13 per cent.
Singapore's banks, the largest in Southeast Asia, are set to post higher profits for the fourth quarter because of higher interest rates, though growth momentum is poised to slow as central banks pivot toward rate cuts and volatile markets weigh on the wealth business.
DBS, the first Singapore lender to report this earnings season, said October-December net profit grew to S$2.39 billion (US$1.78 billion) from S$2.34 billion a year earlier on the back of a 9 per cent increase in total income.
This beat the mean estimate of S$2.37 billion from four analysts, according to LSEG data.
DBS, which is also Southeast Asia's biggest bank, proposed a final dividend of 54 cents per share and 1-for-10 bonus issue.
The NIM of 2.13 per cent during the quarter was up from 2.05 per cent a year earlier.
Full-year annual profit jumped 26 per cent to S$10.3 billioon from S$8.19 billion in 2022. Return on equity climbed to a record high of 18 per cent from 15 per cent a year ago.
Continue reading...