DBS

DBS: 4Q results above estimates. 4Q total rev was 1.9b +10.8% yoy -2.6% qoq. Net profit at $731m was +7.8% yoy -4.1% qoq. Lower 4Q11 taxes contributed to a higher net profit.

Customer loans grew 4.9% qoq (slower than prev 10% growth last quarter) to $194.7b and deposits grew 2.6% qoq to $225.4b with Loan deposit ratio at 0.86. Net interest margin remained flat at 1.73bps but net interest income grew 6.3% qoq to $1.3b. Non-performing loans remained flat qoq at 1.3%
Loans grew across all industries and all regions except HK. Notably, loans in China at $30.1b grew 27.6%.

Net fee income at $342m -4.5% yoy -13.8 qoq. Though a drop, this was supported by credit card fees +37% and wealth mgmt fees +12% qoq. Trading income at $145m was -6% yoy +5% qoq.

Capital adequacy ratio increased slightly with tier 1 at 12.9% (12.6% prev quarter) and including tier 2 at 15.8% (15.5% prev).

Final div of 28c per share declared, with full yr payout at 56c same as prev yr. DBS currently trades at P/B 1.1x. Results briefing will be later today after which more reports will be available.

DMG maintains Neutral and UOB KH maintains Buy.