Financial Highlights
Strong performance underpinned by expanded regional franchise and resilient asset quality
Net Profit After Tax1 and Return on Equity1
Core net profit for FY23 grew 26% to a record $6.1 billion from a year ago, driven by strong net interest income and trading and investment income. Correspondingly, return on equity increased to 14.2% for the year.
Net Profit After Tax
$6.1
billion
+ 26%
Return on Equity
14.2%
+ 2.3% pt
1
Excluding one-off expenses
Net Interest Income and Margin
Net interest income rose 16% to $9.7 billion against last year. Net interest margin increased 23 basis points to 2.09% from higher interest rates and loan growth of 2% in constant-currency terms.
Net Interest Income
$9.7
billion
+ 16%
Net Interest Margin
2.09%
+ 0.23% pt
Net Fee and Commission Income
Net fee income up 4% from a year ago to $2.2 billion. Credit card fees surged to a new high, underscored by higher customer spending and expanded regional franchise, as well as higher wealth fees. This was partly offset by softer loan-related fees amid cautious corporate sentiment.
Fee Income
$2.2
billion
+ 4%
Net Fee/Total Income Ratio
16%
- 3% pt
Trading and Investment Income
Trading and investment income doubled to $1.7 billion, driven by all-time high customer-related treasury income and strong performance from trading and liquidity management activities.
Trading and Investment Income
$1.7
billion
> 100%
Customer-related Income
$0.8
billion
+ 9%
Operating Expenses1
Total core operating expenses rose 15% to $5.8 billion. The broad-based expense growth to support strategic initiatives was outpaced by income growth, and cost-to-income ratio improved by 1.8% points to 41.5%.
Operating Expenses
$5.8
billion
+ 15%
Cost/Income Ratio
41.5%
- 1.8% pt
1
Excluding one-off expenses
Impairment Charge on Loans
Total allowance on loans increased 25% to $0.8 billion, due mainly to higher specific allowance on a few non-systemic corporate accounts.
Total credit costs on loans increased 5 basis points to 25 basis points.
Total credit costs on loans increased 5 basis points to 25 basis points.
Impairment Charge on Loans
$0.8
billion
+ 25%
Total Credit Costs
25 bps
+ 5 bps
Staying focused on our regional strategy and customer centricity
Operating profit by business segment
Group Retail
Operating profit rose 46% year on year and hit a new high of $2.7 billion in 2023, reaping benefits of an expanded regional franchise and improved customer value propositions. Excluding one-off costs associated with the Citigroup acquisition, core operating profit would have registered a 49% growth. Total income surged 36% and reached new heights of $5.5 billion, fuelled by diverse drivers of Citigroup franchise addition and wider margin, while healthy deposit growth and record card fees were supported by targeted marketing campaigns. Sustained net new monies drove the growth of wealth AUM of 14% to $176 billion but the pickup in wealth income was slower amid cautious appetite and high interest rates. Core operating expenses grew 22%, primarily from people and technology-related investments, coupled with higher revenue-related spend to support an enlarged customer base and healthy business activities.
Group Wholesale Banking
Against last year, operating profit grew 15% to $5.4 billion. Total income soared 14% to cross the $7 billion mark, bolstered by sustained margin expansion and record investment banking fees, moderating the impact of subdued credit demand and loan repayments amid high borrowing costs. Expenses increased 9% to $1.7 billion on the back of ongoing investments in people, product and technology capabilities to support franchise ambitions.
Global Markets
Operating profit for 2023 stood at $153 million as trading and investment income, which more than doubled year on year from commodities trading opportunities and liquidity management activities, was tempered by rising cost of funds.
Operating Profit1 by Geographical Segment
Overseas franchise provided diversification and cross-border connectivity
$ million
FY2023
FY2022
YoY (%)
Singapore
4,657
3,824
22
ASEAN-4
1,770
1,419
25
Malaysia
873
744
17
Thailand
700
425
64
Indonesia
186
233
(20)
Vietnam
11
17
(36)
North Asia
716
670
7
Rest of the World
1,011
645
57
Total
8,154
6,559
24
Customer Loans2
Customer Deposits
Singapore
Operating profit registered a commendable growth of 22% year on year, anchored by wider margins from higher interest rates and active balance sheet management.
ASEAN-4
The ASEAN-4 franchise showed a strong growth of 25% against last year mainly led by Thailand and Malaysia. The integration of Citigroup’s customers augmented the consumer franchise, together with interest rate upcycle and strong performance from trading and liquidity management activities.
North Asia
Operating profit grew 7% against last year, driven by stronger trading results from Greater China.
Rest of the World
Operating profit rose 57% to $1.0 billion, led by improved valuation on investments.
1
Excluding one-off expenses
2
Loans by geography are classified according to where credit risks reside, largely represented by the borrower's country of incorporation/operation for non-individuals and residence for individuals.
Resilient balance sheet with stable credit outlook
Asset Quality
The Group’s asset quality remained stable with non-performing loan (NPL) ratio at 1.5%.
Total allowance for non-impaired assets remained adequate at $3.0 billion with prudent coverage for performing loans maintained at 0.9%.
Total allowance for non-impaired assets remained adequate at $3.0 billion with prudent coverage for performing loans maintained at 0.9%.
Total Allowance
on Assets
on Assets
$5.0
billion
– 1%
NPL Ratio
1.5%
– 0.1%
Funding and Liquidity Ratios
The Group’s liquidity remained ample with the average all-currency liquidity coverage ratio (LCR) at 158% and net stable funding ratio (NSFR) at 120%, both well above the minimum regulatory requirements.
LCR
158%
+ 18% pt
NSFR
120%
+ 4% pt
Capital Adequacy Ratio (CAR)
Post the legal completion of Citigroup acquisition in the ASEAN-4 countries, the Group's capital position remained healthy with Common Equity Tier 1 Capital (CET1) ratio and total CAR at 13.4% and 16.6% respectively.
CET1 CAR
13.4%
+ 0.1% pt
Total CAR
16.6%
– 0.1% pt