Singapore's DBS beats estimates with 15% profit jump

  • Banking
  • Monday, 11 Nov 2019

DBS signages are seen as office workers work in Singapore Oct 8 2019. Picture taken Oct 8 2019. REUTERS/Feline Lim

SINGAPORE: DBS Group Holdings Ltd, Southeast Asia's biggest lender, reported on Monday a forecast-beating 15% rise in quarterly profit, supported by higher wealth management fees.

The Singaporean bank's net profit came in at S$1.63 billion ($1.20 billion) in the three months ended Sept. 30, compared with S$1.41 billion a year earlier and an average estimate of S$1.57 billion from five analysts, according to Refinitiv data.

Net interest income rose 8% to S$2.46 billion in the quarter, while net interest margin came in at 1.90%. The company expects its margin to fall by about 7 basis points in 2020.

Singapore's banks face a challenging outlook as interest rates soften and lending moderates after robust growth in recent years.

Last week, peer Oversea-Chinese Banking Corp posted its weakest quarterly profit this year after booking a one-off charge at its Indonesian banking unit.

DBS's wealth management fees jumped 22% to S$357 million.

The lender also said it made extra allowances of S$61 million given "ongoing political and economy uncertainty."

It added that the performance of its business in Hong Kong was "resilient", but reported a 13% decline in net profit from the second quarter because of higher allowances and weaker trading income. - Reuters

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