SINGAPORE: Singapore's biggest bank DBS posted on Wednesday (Aug 7) a rise of 4 per cent in second-quarter net profit from a year earlier, boosted by stronger total income, with fee income at a record.
Its net profit for the quarter rose to S$2.8 billion (US$2.1 billion), beating the mean estimate of S$2.71 billion from five analysts, according to LSEG data.
Its return on equity was 18.2 per cent during the quarter while its total income increased by 9 per cent to S$5.48 billion.
"Commercial book net interest income rose from balance sheet growth and a slightly higher net interest margin, fee income was at a record, and treasury customer sales remained strong," it said.
"Markets trading income was also higher. The cost-income ratio was 40 per cent and profit before allowances rose 6 per cent to S$3.31 billion. Compared to the previous quarter’s record, net profit was 5 per cent lower."
In a departure from tradition, the bank announced its financial results during the mid-day trading break on Wednesday rather than before the market open.
Its media briefing will also be held this evening, instead of immediately after the results release as is typically the case.
The bank had previously said in a bourse filing dated Jul 30 that its second-quarter financial results would be released after the market closes on Wednesday. It then changed the timing in a bourse filing dated Aug 2.
The results come amid speculation about a leadership change at DBS. The Business Times published two articles on Tuesday, both on the topic of succession at the bank, with the financial daily reporting that many analysts in Singapore have been discussing when current CEO Piyush Gupta will step down.
Gupta has been at the helm of DBS as group CEO and director since 2009. Before joining the bank, he spent 27 years at Citigroup, with his last position as its CEO for Southeast Asia, Australia and New Zealand.
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Its net profit for the quarter rose to S$2.8 billion (US$2.1 billion), beating the mean estimate of S$2.71 billion from five analysts, according to LSEG data.
Its return on equity was 18.2 per cent during the quarter while its total income increased by 9 per cent to S$5.48 billion.
"Commercial book net interest income rose from balance sheet growth and a slightly higher net interest margin, fee income was at a record, and treasury customer sales remained strong," it said.
"Markets trading income was also higher. The cost-income ratio was 40 per cent and profit before allowances rose 6 per cent to S$3.31 billion. Compared to the previous quarter’s record, net profit was 5 per cent lower."
In a departure from tradition, the bank announced its financial results during the mid-day trading break on Wednesday rather than before the market open.
Its media briefing will also be held this evening, instead of immediately after the results release as is typically the case.
The bank had previously said in a bourse filing dated Jul 30 that its second-quarter financial results would be released after the market closes on Wednesday. It then changed the timing in a bourse filing dated Aug 2.
The results come amid speculation about a leadership change at DBS. The Business Times published two articles on Tuesday, both on the topic of succession at the bank, with the financial daily reporting that many analysts in Singapore have been discussing when current CEO Piyush Gupta will step down.
Gupta has been at the helm of DBS as group CEO and director since 2009. Before joining the bank, he spent 27 years at Citigroup, with his last position as its CEO for Southeast Asia, Australia and New Zealand.
Continue reading...