Singapore-based DBS has posted full-year net
income for the twelve months to 31 December of S$2.65bn ($2.1bn),
up 28% from year-end 2009.

The rise of 28% in full-year net income
excluded a one-off impairment charge of DBS Bank’s Hong Kong
operations of S$1.02bn for full-year 2010.

Metrics for the group’s consumer
banking division included:

• Net profit for the full year was S$458m, down 20% from
  2009;
• Allowances for credit losses S$55m, down from S$82m in
  2009;
• Net interest income remained flat at S$1.4bn. The bank said
  that net interest income was unchanged as higher loan volumes were
  offset by lower housing loan margins;
• Total consumer and private banking assets before the impairment
  charge as of 31 December were S$51.3bn, up from S$ 45.1bn at
  year-end 2009 (before the impairment charge).

Margin pressure resulted in a 3% fall in group
net interest income to S$4.3bn compared to the prior fiscal; the
bank’s net interest margin declined by 18 basis points to 1.84%
from 2.02% in 2009.

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The group cost-income ratio rose by 20 basis
points to 41.4% at the end of fiscal 2010.

Group net fee and commission income for the
full year remained flat at S$1.4bn.

But loan-related net fee and commission income
fell 11% to S$333m.

The bank said that most of the charges for
allowances were for non-performing loans.

Other group highlights
included:

• The bank’s bancassurance business generated income of S$873m in
  fiscal 2010, a jump of 436.5% from a year-ago;
• The bank recorded 225,000 new registrations for its internet
  banking service, boosting the total number of online customers by
  15% in the twelve months to 31 December to 1.5m;
• The bank ended fiscal 2010 with a 19.3% market share in cards
  in Singapore, an increase of 0.2% from the year ago;
• Non-performing assets fell 24% in the twelve months to year-end
  2010 to S$3.2bn while the non-performing loans ratio fell from 2.9%
  in 2009 to 1.9% at year-end 2010;
• Allowances for credit and other losses for the whole group
  decreased 40% in the twelve months to 31 December to S$911m.

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