Credit card, mortgage business gives Dao Heng Bank 25pc lift
Strong performances from its credit card and mortgage lending divisions helped Dao Heng Bank Group (DHB) achieve a 25.1 per cent growth in attributable profits to $1.5 billion for the year to June, in line with analysts' expectations.
Its parent, Guoco Group, which holds a 70 per cent stake in DHB, posted a 15.7 per cent rise in attributable profit to $1.88 billion for the same period.
DHB managing director Kwek Leng Hai said the bank's credit card operations, mainly conducted through subsidiary OTB Card, saw its cardholder base more than double to 250,000 cards while account receivables expanded at a similar pace to more than $1.8 billion.
Its mortgage financing business kept pace with its balance sheet and overall market growth and it is now the largest single segment of lending representing 25 per cent of its total loans.
Earnings per share were $2.20, up 20.2 per cent from last year's $1.83.
On the top of the recommended final dividend of 55 cents per share, a special dividend of 10 cents per share will also be delivered to celebrate the bank's 75th anniversary.
These, when added to the interim dividend of 23 cents, make total dividends for the year 88 cents, up from 71 cents last year. Provisions and doubtful debts increased at a faster pace of 38.9 per cent than the 23.5 per cent growth in the bank's total loans.