The growth came as the group boosted its net interest income by 12 per cent to S$7.1 billion. Its net interest margin improved 9 basis points to 1.77 per cent, the highest in five years, in line with higher Singapore dollar interest rates. 

DBS highlighted its “resilience” in a year marked by slower economic growth, financial market volatility and heightened asset quality concerns. For the fourth quarter, net profit was up 20 per cent year-on-year at S$1 billion thanks to income growth of 13 per cent.

Within its consumer banking and wealth management unit, income grew 23 per cent to S$3.55 billion due to higher returns on deposits and wealth management sales. In the fourth quarter, net fee income fell 6 per cent as lower contributions from wealth management, brokerage and loan-related activities were partially offset by higher investment banking and card fees.

“The fourth-quarter caps a strong year when total income crossed S$10 billion for the first time. The consistency of our performance through the four quarters reflects the quality of our earnings profile,” said DBS's chief executive, Piyush Gupta.

“Our balance sheet remains strong: asset quality is robust, allowance coverage is at comfortably high levels and capital ratios are well in excess of regulatory requirements. While unsettled financial markets in recent weeks have created short-term uncertainty, the region’s economic fundamentals are sound and the risks associated with slower growth are manageable. Amidst the challenging environment, we are well prepared and enter the year from a position of strength."

The board proposed a final dividend of 30 cents per share for approval at the forthcoming annual general meeting, which will bring the full-year dividend to 60 cents per share compared to 58 cents per share a year ago.