Where Did DBS Group Holdings Ltd Generate Its Income From In 2016?
DBS Group Holdings Ltd (SGX: D05) or DBS in short, is one of the three major banks based out of Singapore, along with United Overseas Bank Ltd (SGX: U11) and Oversea-Chinese Banking Corp Limited (SGX: O39).
In this article, I will give you a quick overview of where the group generates its income from.
Source: DBS Group 2016 Annual Report
The above is a quick summary of where DBS Group made its income in 2016 and there are two ways we can look at the information above.
Firstly, we can see that DBS Group operates mainly under four business units, namely consumer banking, institutional banking, treasury and others.
Consumer banking is what we are familiar with, which includes most, if not all of our daily banking activities like mortgage, payments, wealth management and others.
Institutional banking is the unit that serves the corporations. This is the part of the business that came in the limelight recently due to the oil and gas industry downturn, as the group lent money to the likes of Swiber Holdings Limited (SGX: BGK).
Treasury focuses on providing financial products like foreign exchange, interest rate, debt, credit, equity and other structured derivatives to customers. It is also responsible for managing surplus funds.
In addition to business units, investors can also view the source of income through its geographical origins.
Secondly, we can see that about 66% of 2016’s income was derived from Singapore while the remaining 34% was from overseas – with Hong Kong accounting for the bulk of overseas income.
From the above, we can see that DBS Group generates its income from both the retail and institutional markets, with Singapore accounting for the bulk majority of the income, followed by Hong Kong.