The CEO of Singapore's largest bank states that 2021 was one of the best years for very robust growth.

• DBS reported a 44% increase in full-year net profit to a record of 6.8 billion Singapore dollars ($5.04 billion) on Monday.
• The company's net profit increased by 37% in the fourth quarter, reaching SG$1.39 billion compared to the previous year.
• The upcoming rate hikes could potentially lead to increased dividends for shareholders, according to CEO Piyush Gupta.

In 2021, Singapore's largest lender recorded its highest full-year profit, with CEO Piyush Gupta stating that last year was one of the best he's experienced.

After the earnings numbers were released, Gupta stated on CNBC's "Capital Connection" that the year had been strong and could be one of the best in recent memory, with a notable increase in the balance sheet.

The bank reported a 44% increase in full-year net profit for 2021, reaching a record of 6.8 billion Singapore dollars ($5.04 billion) on Monday.

Although the fourth-quarter net profit increased by 37% from the previous year to SG$1.39 billion ($1.03 billion), it was lower than the average estimate of SG$1.47 billion from a Reuters poll.

The bank experienced a 9% increase in loans growth in 2021, which is the fastest rate since 2014, as pointed out by Gupta.

He stated that the bank experienced remarkable growth in its current account savings account base, with a SG$140 billion increase in the last two years.

The CASA ratio of the bank reached a record 76% in total deposits, indicating its profitability.

"As you can imagine, a rising interest rate environment is likely to lead to an increase in interest," he stated.

DBS' net interest margin decreased by 17 basis points to 1.45% in the year.

According to DBS, the annualized dividend, which will be approved at the annual general meeting in March, is expected to increase by 9% to SG$1.44 per share.

DBS shares were up 0.27% following the earnings announcement.

Piyush stated that the anticipated rate hikes could result in improved dividends for shareholders.

As rates increase, we are already well-capitalized, and if we generate better bottom line and income growth, there is a possibility that we will increase payouts to our shareholders, as stated by him to CNBC.

Singapore's two other significant banks, in addition to , will also reveal their fourth-quarter earnings in February.