DBS Group announced on Monday (Feb 10) a second round of bonuses for its employees following a record-breaking financial performance in 2024. All staff members below senior management will receive a one-time bonus of $1,000, with DBS allocating $32 million for this payout.
This announcement comes as Singapore's largest bank released its Q4 earnings, revealing a 10% year-on-year increase in net profit to $2.62 billion. This strong fourth-quarter performance capped off a year of record earnings, with FY2024 net profit rising 11% year-on-year to $11.4 billion. The bank's net interest margin also saw expansion, increasing by four basis points to 2.80%.
In addition to the bonus, DBS declared a final dividend of 60 cents per share for Q4, up from 54 cents in the previous quarter. Looking ahead, the bank announced a new capital return dividend of 15 cents per share, payable quarterly in 2025, as part of a three-year plan to manage excess capital. DBS anticipates distributing a similar amount of capital in the subsequent two years through either the capital return dividend or other mechanisms.
This marks the second bonus payout for DBS employees in recent months. In February 2024, junior staff received a $1,000 bonus to help mitigate the rising cost of living, with DBS setting aside $15 million for that initiative.
For FY2025, DBS projects a slight increase in net interest income compared to 2024, anticipating rate cuts in the latter half of the year.
"While macroeconomic and geopolitical uncertainties persist, the franchise and digital transformations carried out over the past decade position us well to continue delivering healthy returns," outgoing CEO Piyush Gupta commented.
DBS is also undergoing a significant leadership transition. CEO Piyush Gupta will retire at the end of March after 15 years at the helm. He will be succeeded by Tan Su Shan, formerly the group head of institutional banking, who will become the first female chief executive in DBS' history.
"As I reflect on my journey at DBS, I feel good about where the bank is and am confident it will reach further heights under Su Shan’s leadership," Gupta said.
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