DBS Q3 net profit jumps 72% to S$1.41 billion

Net profit was higher than S$822 million a year ago. Analysts had estimated a profit of S$1.47 billion for the quarter.

DBS Bank

DBS Group Holdings posted a S$1.41 billion net profit for the third quarter, matching analysts’ expectations. The gains were supported by loan growth, rising fee income trends and a higher net interest margin.

Net profit was higher than S$822 million a year ago. Analysts had estimated a profit of S$1.47 billion for the quarter.

Including one-time items, net profit climbed 76% higher year-on-year. Total income rose 10% from a year ago to S$3.38 billion.

Net interest income rose 15% to S$2.27 billion with support seen from an increased loan volumes and net interest margin, said DBS. Loans expanded 8% to S$340 billion, led by consumer and non-trade corporate loans.

Net interest margin rose 13 basis points to 1.86%, as it follows the higher interest rates environment in Singapore and Hong Kong. Other non-interest income rose 2% higher to S$407 million.

Expenses rose 18% to S$1.48 billion, due partly to the group’s 50th anniversary staff bonus. Excluding the bonuses and other non-recurring items, expenses rose by 15%.

DBS CEO Piyush Gupta said the bank’s third-quarter business momentum was sustained amidst heightened geopolitical and economic headwinds.

“Year-to-date earnings per share is the highest in our history while return on equity is the best in more than a decade…We are well positioned to continue capitalising on Asia’s long-term prospects while navigating short-term uncertainties,” Mr Gupta added.

DBS shares dipped 1.95% or 48 Singapore cents at S$24.18, thirty minutes after the market opened for trading on Monday as some sellers exit the stock with a view that its share price valuation may have passed its peak.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.