Singapore’s largest lender DBS Group reported a report full-year revenue for 2021, and its CEO Piyush Gupta advised CNBC final 12 months was “among the best years” he is seen.

“That has been a strong 12 months, maybe among the best years I’ve seen in a very long time. And that features a very strong progress within the steadiness sheet,” Gupta advised CNBC’s “Capital Connection” after the earnings numbers have been out.

The financial institution on Monday reported that full-year web revenue for 2021 rose 44% to a report of 6.8 billion Singapore {dollars} ($5.04 billion).

Fourth-quarter web revenue rose 37% from a 12 months in the past to SG$1.39 billion ($1.03 billion). That, nonetheless, missed a mean estimate of SG$1.47 billion from a Reuters ballot.

Gupta additionally highlighted the financial institution’s loans progress, which jumped 9% for the 12 months — the quickest since 2014, in line with the financial institution.

“We had excellent deposit progress,” he stated, including there’s been a SG$140 billion surge within the financial institution’s present account financial savings account base within the final two years.

That took its present account and financial savings account (CASA) ratio to complete deposits to a report 76%. The metric is a measure of a financial institution’s profitability.

“Now, as you’ll be able to think about, that portends very well for a rising rate of interest atmosphere,” he stated.

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In different highlights, DBS’ web curiosity margin for the 12 months, a measure of lending profitability, fell 17 foundation factors to 1.45%.

The annualized dividend, to be permitted on the annual basic assembly in March, is ready to rise 9% to SG$1.44 per share, in line with DBS.

DBS shares have been up 0.27% following the earnings announcement.

As fee hikes are anticipated this 12 months, which will spell excellent news when it comes to higher dividends for shareholders, Piyush added.

“In fact, as charges go up, you recognize, we’re already extraordinarily effectively capitalized. And if you happen to wind up creating much more capital by way of higher backside line and earnings progress, then there’s a actual chance that we can mirror that in higher payouts to our shareholders,” he advised CNBC.

Singapore’s two different main banks OCBC and UOB are additionally set to report their fourth-quarter earnings later in February.


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