DBS reports Q3 net profit of S$1.4 billion

SPH

DBS Group Holdings Ltd , Southeast Asia’s biggest lender, reported a quarterly profit that was mostly in line with estimates on Monday, helped by loan growth and higher net interest margin.

Concerns about the impact of an intensifying trade row between China and the United States on Singapore’s export-reliant economy, and curbs on the city-state’s property market, have muddied the outlook for banks after they reported record profits last year.

“We are well positioned to continue capitalising on Asia’s long-term prospects while navigating short-term uncertainties,” DBS CEO Piyush Gupta said in a statement.

DBS said net profit came in at S$1.41 billion (US$1 billion) in the three months ended September versus S$822 million a year earlier, and an average estimate of S$1.47 billion from three analysts, according to data from Refinitiv. The bank took higher allowances for weak oil and gas support service exposures last year.

DBS, which is about 29 per cent owned by Singaporean state investor Temasek Holdings, posted results after Oversea-Chinese Banking Corp announced a record quarterly profit and United Overseas Bank reported profit rose 17 per cent.

DBS’s net interest margin, a key gauge of profitability, rose 13 basis points to 1.86 per cent.

The bank forecast loan growth in the mid-single-digit range for 2019 and a continued rise in net interest margin.

Total income rose 10 per cent to a record S$3.38 billion, DBS said, while net interest income rose 15 per cent. Investment banking fees fell 66 per cent.