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

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.