DBS share price dips 0.56% after Q2 profit beat estimates
Higher total income helped the group beat market estimates for its second quarter net profit. Experts were predicting for the three months ending June to come in at S$1.47 billion.
Shares of Singapore-headquartered DBS Group Holdings eased 0.56% on Monday as some investors cash out after the bank posted a 17% gain in net profit for the second quarter, at S$1.60 billion.
Higher total income helped the group beat market estimates for its second quarter net profit. Experts were predicting for the three months ending June to come in at S$1.47 billion. Net profit for the second quarter last year was at S$1.37 billion.
This is as banks face a challenging outlook ahead with the Singapore economy at a growth that is at the slowest annual pace in a decade.
Earnings per share stood at S$2.47, up from S$2.12 a year ago. The group has declared a one-tier tax exempt dividend of 30 Singapore cents per share for the quarter, unchanged from the previous quarter.
DBS share price ease 0.56%
DBS shares eased 0.56% or S$0.15 to S$26.73 by 12pm Singapore time on Monday, the same day the bank’s results were released.
Year-to-date, the bank’s shares have risen by 12.8%, from S$23.69 on January 1, 2019.
DBS maintains mid-single-digit loan growth forecast for 2019
Total income for the second quarter rose by 16% to S$3.71 billion from S$3.20 billion a year ago.
DBS’ net interest income was up by 9% for the second quarter, helped by loans growth which was up by 5% in constant-currency terms. Net interest margin for the group improved six basis points to 1.91%, .
For the first half of this year, net profit rose by 12% to a record S$3.25 billion. Total income for the six months rose 11% to S$7.26 billion, from corporate loan growth, a higher net interest margin, record fee income, and an improved trading performance.
‘We achieved a record half-year performance despite heightened economic uncertainty and geopolitical tensions. The results reflect the strengths of an entrenched broad-based franchise that is well-placed to nimbly navigate market volatility and capture opportunities as they arise,’ commented DBS’ chief executive Piyush Gupta.
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