An interim quarterly dividend of 48 cents was declared for the 3QFY2023.

DBS Group Holdings has reported a net profit of $2.63 billion for the 3QFY2023 ended Sept 30, 18% higher y-o-y. This brings the bank’s 9MFY2023 net profit to a record $7.89 billion, 35% higher y-o-y.

Net profit including one-item items for the 3QFY2023 and 9MFY2023 stood at $2.59 billion and $7.79 billion respectively.

For the 3QFY2023, total income grew by 16% y-o-y to a record $5.19 billion from higher net interest margin (NIM) and higher commercial book non-interest income. NIM for the 3QFY2023 stood at 2.82%, up 52 basis points (bps) y-o-y and 1 bps q-o-q from higher rates.

3QFY2023 net interest income (NII) under its commercial book business rose by 23% y-o-y to $3.68 billion from higher NIM while net fee and commission income rose by 9% y-o-y to $843 million from higher wealth management, cards and loan-related fees. Loans grew by 1% q-o-q in constant currency terms to $420 billion.

The consolidation of Citi Taiwan, which took place on Aug 12, contributed $10 billion to loans and $12 billion in deposits. It also boosted DBS Taiwan’s credit card accounts by five-fold to over 3 million and tripled investment assets under management (AUM) to over $12 billion. Provisional goodwill of $936 million was recorded while one-time integration costs of $40 million were accrued in the third quarter.

Excluding Citi Taiwan, non-trade corporate loans declined 1% from higher repayments while trade loans fell 3% due to unattractive pricing. Housing and other consumer loans were 1% lower. Deposits grew 2% in constant-currency terms from the previous quarter to $531 billion due to the consolidation of Citi Taiwan.

Treasury customers sales and other income rose by 8% y-o-y to $499 million.

DBS’s NII under treasury markets stood at a negative $180 million, down from the $31 million in the 3QFY2022. Non-interest income rose by 45% y-o-y to $346 million.

Compared to the record in the previous quarter, net profit was 2% lower as higher income was offset by higher expenses and total allowances.

Expenses for the 3QFY2023 rose by 12% y-o-y to $5.19 billion.

Allowances for credit and other loans rose by 21% y-o-y to $215 million.

As at Sept 30, DBS’s cost-to-income ratio improved by 4 percentage points to 39%.

Its non-performing loan (NPL) ratio stood unchanged at 1.2% while its leverage ratio stood at 6.4% as at Sept 30.

DBS’s loan-to-deposit ratio (LDR) as at Sept 30 stood at 79% while its liquidity coverage ratio (LCR) stood at 138%. Net stable funding ratio stood at 117%.