DBS sets aside $32M for special employee bonus

SINGAPORE – DBS Group has announced a special one-time bonus of S$1,000 for all staff members (excluding senior managers) in recognition of their contribution throughout 2024.

The gesture follows the bank’s impressive financial performance last year, where it reported a 10% increase in fourth-quarter net profit, reaching S$2.62 billion. Meanwhile, net profit for FY2024 surged 11% year on year to S$11.4 billion.

The bank has now allotted S$32 million for the employee bonus scheme, aiming to acknowledge the hard work and dedication of its employees.

The initiative mirrors a similar move in February 2024, when DBS allocated S$15 million to provide junior staff with a one-time bonus of S$1,000 to help them manage rising living costs.

Beyond rewarding its employees, DBS has also announced plans to introduce a capital return dividend of 15 cents per share, to be distributed quarterly throughout 2025.

The strategy is designed to manage the bank’s excess capital over the next three years, with expectations of similar payouts in the subsequent two years through this mechanism or alternative methods.

Also Read: JPMorgan Chase staff 'unhappy' with bonuses: report

Leadership transition at DBS

“We achieved a record financial performance in 2024 with return on equity of 18.0%, one of the highest among developed market banks. Balance sheet management supported net interest income growth while improving investor sentiment drove wealth management fees and treasury customer sales to new highs,” said CEO Piyush Gupta, who is set to retire at the end of March.

These developments thus coincide with a significant leadership transition at DBS.

Tan Su Shan, the current group head of institutional banking, is poised to become the bank’s first female chief executive.

“While macroeconomic and geopolitical uncertainties persist, the franchise and digital transformations carried out over the past decade position us well to continue delivering healthy returns,” Gupta added.

“As I reflect on my journey at DBS, I feel good about where the bank is and am confident it will reach further heights under Su Shan’s leadership.”

Also Read: DBS to continue transformation with new CEO Tan Su Shan

How banks in Singapore reward employees

In the broader banking landscape, other major Singaporean banks have implemented similar measures to support their staff amid economic challenges.

In December 2024, for example, both OCBC and UOB announced additional payments to assist employees in coping with the rising cost of living.

Singaporean banks like DBS have long been known for sweetening the pot with generous bonuses, while foreign banks often prefer to lure talent with heftier base salaries.

However, this distinction isn’t always clear-cut. For instance, an associate at JP Morgan might pocket a base salary of S$8,000 with a modest one-month bonus, whereas a DBS associate takes home S$6,500 but with a more substantial three-month bonus – illustrating how compensation structures vary across institutions.

When it comes to overall employee sentiment, DBS and OCBC have comparable ratings for compensation and benefits. Yet, perceptions of fairness in pay tell a slightly different story: 64% of DBS employees feel they are compensated fairly, compared to 58% at OCBC.

Singaporean banks also appear to be upping the ante in the competition for tech talent. Reports suggest that technology professionals, particularly those in mid-career, are reaping the rewards with bonuses as high as three to four months of their base salary – significantly outpacing their counterparts at US and European banks.

However, this rising tide doesn’t lift all boats equally. The gap between high and low performers is widening, with top talent being handsomely rewarded while others find themselves left behind in an increasingly stratified compensation landscape.