It is a case of “return of the king” as DBS Bank staged a comprehensive comeback by announcing an impressive 4th quarter 2017 results. Marred by net allowances of $815 million in the previous quarter, DBS lost to OCBC in terms of net profit for that quarter. However, DBS managed to redeem itself by announcing a much better 4th quarter results, with higher net profit of $1.19 billion.
The full year results had been boosted by acquisition of the wealth management and the retail banking business of ANZ in Asia-Pacific region. But unknown to many, the biggest profit contributor from overseas is actually its Hong Kong unit.
Following the announcement of full year 2017 results, share price of DBS ran riot and stormed to record level. From $26 on 7 Feb, the shares stormed to $28 after the market re-opened following the Chinese New Year break. CEO Piyush Gupta certainly gave shareholders a big red packet by engineering such a fine performance. Many shareholders made much paper gains within one week!
The magnificent run of DBS shares was based on solid business fundamentals. DBS Group’s full-year 2017 net profit rose 4% to a record $4.39 billion. Total income also reached a new high, rising 4% to $11.9 billion from broad-based growth in loans and fee income, which more than offset the impact of a lower net interest margin and weaker trading performance.
For the fourth quarter, net profit reached a new quarterly record of $1.22 billion, up 33% from a year ago. Total income rose 10% to $3.06 billion, staying above the $3 billion mark for the second consecutive quarter, as net interest income rose 15% to cross the $2 billion mark for the first time.
Buoyed by such fine performance, it is no wonder that share price went on a rampant to reach record level high. As the bellwether of the economy, DBS’ destiny is closely linked to Singapore’s economy. As the country starts to emerge from a difficult operating environment, it is likely that the share price will continue its bullish form.
$50 share price for 50th anniversary?
How high will the share price go? With CEO Gupta, you never know if the share price would hit $50, just in time to celebrate the company’s 50th anniversary. Two years ago, he put his money where his mouth is when [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]
Sign up as member and receive a bonus investment report on Singapore stocks! The membership benefits include:
1) Access to the latest premium articles of SG Wealth Builder
2) Email notifications of latest blog articles
3) Access to Wealth Forum for investment ideas and discussion
4) Free bonus investment report
5) Request for coverage on stocks, insurance and other personal financial topics
6) Comment in articles and Wealth Forum
Note: After payment is made, you will be prompted with registration form to create your userid and personal password.
For Monthly Subscription
You may sign up for the monthly subscription for only $19.99 per month. You can choose to cancel the subscription after one month with no penalty.
For Lifetime Subscription
You may sign up for the Lifetime subscription for only $200. This is a one-off payment package with no further recurring charges.
Subscribe to Blog via Email
SG Wealth Builder