The bank's chief executive said that despite fears over the disruption caused by the Covid-19 virus outbreak, it is «business as usual» for the bank, which has been taking the same precautions in Singapore as it has in China and Hong Kong.
DBS chief Piyush Gupta said the bank's pre-virus outlook for the year was still on track. Assuming the virus is controlled by summer, as many expect, the full-year revenue impact would be 1-2 percent, he said at a media briefing on Thursday morning.
«While there might be an increase in the cost of credit, the bank has ample reserves to cushion the impact», Gupta said, adding that special provisions could rise by a few basis points of loans.
The bank's investment in boosting its digital capabilities means there is «minimal service disruption at this point in time» as its bankers are well-equipped to work from home amid continued appetite in the market, he said, noting a deal closed just yesterday.
High-Quality Results Despite Challenging Environment
Despite external headwinds, DBS' total income for 2019 increased 10 percent year-on-year to S$14.5 billion, while its net profit rose 14 percent to a record S$6.39 billion, the bank announced in a statement on Thursday.
By business unit, Consumer Banking/Wealth Management income rose 11 percent to S$6.3 billion, led by deposit and investment product income. Institutional Banking income grew 5 percent to $6.07 billion from higher cash management, loans, and investment banking income, while Treasury Markets income grew 39 percent to $932 million on the back of more conducive market conditions compared to 2018.
Gupta said the results were «a bit of an exclamation mark at the end of a defining decade for the bank», noting how DBS has structurally changed its income profile in the past 10 years.
Liquidity Relief Planned
Gupta said DBS is planning to offer liquidity relief and community support for its customers affected by the Covid-19 outbreak, with more details to be released shortly.
They include a six-month moratorium on property loan repayment as well as additional measures to support working capital for small and medium-sized enterprises and for retail customers a six-month moratorium on their mortgage loan repayments.
