DBS Group announces SGD 3 billion share buyback programme, after posting record net profit in Q3 2024

Announcing record profits of more than SGD 3 billion in the third quarter of 2024, the DBS Group today also said that it had established an SGD 3 billion share buyback programme. These shares will be bought in the open market and cancelled.

In a media release, DBS said: “The [buyback] programme marks the first time that repurchased shares are cancelled. The programme is over and above share buybacks periodically carried out for the purpose of vesting employee share plans.”

The DBS Group, headquartered and listed in Singapore with a presence in 19 markets, including India, said: “Based on the balance sheet as at September 2024, the [share buyback] programme will reduce the fully phased-in CET-1 ratio by around 0.8 percentage points when completed.”

The release added: “The [share buyback] programme is the latest in a series of capital management initiatives undertaken by the [DBS] Board, which included a doubling of the ordinary dividend over the past five years, occasional special dividends, and a recent bonus issue that effectively raised dividends.”

DBS CEO Piyush Gupta said, “We have been returning a substantial amount of capital to shareholders in recent years, reflecting the significant structural improvements our franchise has achieved. The buyback programme is underpinned by our strong capital position and ongoing capital generation, and it is another affirmation of our commitment to capital management.”

DBS Deputy CEO Tan Su Shan said, “The buyback programme expands our toolkit for capital management. The considerable amount of capital we have returned in recent years has been a distinguishing hallmark that remains well supported by our financial strength. I am committed to continuing with this approach when I take over from Piyush.”

Also read: DBS Bank leadership transition: Piyush Gupta to be succeeded by Tan Su Shan as CEO in March 2025

DBS Q3 2024 net profit rises 15 per cent to surpass SGD 3 billion for first time

With less than five months left before the leadership transition at DBS, the group notched up a major achievement, as its third-quarter 2024 net profit crossed SGD 3 billion for the first time — the Q3 net profit rose 15 per cent from a year ago and 8 per cent from the previous quarter to reach SGD 3.03 billion.

A DBS media release issued today said: “Total [Q3] income rose 11 per cent from a year ago and 5 per cent from the previous quarter to SGD 5.75 billion. These increases were driven by balance sheet growth; record fee income led by wealth management; higher treasury customer sales; and the strongest markets trading income in ten quarters. The cost-income ratio was 39 per cent.”

Giving more details of DBS performance in 2024 so far, the release said: “For the nine months, net profit increased 11 per cent to a new high of SGD 8.79 billion. Return on equity was at 18.8 per cent. Total income rose 11 per cent to SGD 16.8 billion from growth in both the commercial book and markets trading.

“Asset quality continued to be resilient, with the NPL ratio declining to 1.0 per cent. Non-performing assets fell 8 per cent from the previous quarter. Specific allowances were at 14 basis points of loans for the third quarter and 11 basis points for the nine months.”